Thats down and a check of the markets at 153point rally. S p up 17. Nasdaq up 54 this hour. The small cap russell 2000 leads higher off the mid mfmonth lows and perhaps more than anything is the october surprise. Joining us now, rob morgan, michael cagino, christine short is here, peter costa and our very own Rick Santelli heading into the weekend. Peter, this is a really strong rally now. Were up over 10 on the s p in just about 12 sessions. How do you feel about it . Well, you know, ive been on the bearish side. I think that what youre seeing right now is people are rotating back into stocks and equities. I think the earnings are coming in a lot better than expected. And i think that, you know, they want to put money to work and still two months left and they feel more risk on and take it off other places. Rob i was going to say, peter, we know the costa family fortune. Im not speaking to anyone in my family right now. I would imagine. Do you feel like we have the flush out at the lows and got to get back into the market . No. Honestly, i dont. I think theres another point within the next few months where well see a selloff again. Probably more than 10 . Even though everything is coming in, you know, coming up roses, i do think the market has been on a tear for over five years. We had a small pullback of 8 . I dont think thats enough. I think the market needs to come back a little bit more than that and for a longer duration. So i still think that thats possible. I think thats going to happen within three months. Rob, lets just focus briefly on the earnings coming into today. I think you were focused on the oil majors. As it turns out, its the Online Travel agencies that are rallying the strongest in the wake of expedia. Priceline, as well. What do you think about earnings . Yeah. I think its been a much better season than expected. And i think that thats raised forecasts looking down the road. Its showing and confirms that we do have a healing economy. Stocks are fairly priced. Probably going to continue to go up. As previous guest mentioned, though, we really havent had a significant pullback in five and a half years. That will happen some point but i dont think were anywhere close to having a bear market by any means. Do you want to pick up the point that peter was making that he believes that will be a bigger correction down the line and as i said at the beginning of this conversation, weve moved over 10 in 12 sessions. So weve corrected the correction now fully as we trade out here today. Its definitely an overbought situation right at the moment but at the same time, if people are holding cash waiting for a really big bear market, they better get in now. Probably have Something Like 10 some point. We really havent in the last five and a half years so people should get off the side lines in my opinion. Hey, Rick Santelli, you have to tip your head to kyle bass today. Heres what he said in the october 20second interview. He said, talking about the bank of japans meeting that just happened, i think karoda is going to have and have his draghi moment. Did that just come true . Well, i think it did but i think the question that im amazing that mostly only traders ask is, and simon hobbs, you were excellent this morning talking about the 270 billion thats being purchased in their own jgb market. Do you think that the japanese would give up over 400 billion to go into markets that dont need their help to stay afloat . Isnt that really the question . And, you know, i know nobody likes to talk about it. Yes, very, very healthy things going on in the u. S. Economy. Theres healthy things going on around the globe and most part theres another side of the story, as well. And the debate will go on. You know, if there was no big fed Balance Sheet and the Central Banks acting normal, then we could kick the tires and really trust the levels of the equity markets but we cant make that statement. Rick, i was so focused on the fact you paid me a compliment i actually only slightly misheard i think what you said. Are you suggesting that the japanese Public Pension Fund putting 140 billion into overseas equity funds to support them . I think is that what youre saying . Well, you know what . Im getting right up to the water. Im not saying that they woke up today and said, oh, if we dont do it, all is lost but i think thats part of the central bank plan. The bank of japan knows as well as the other Central Banks around the globe its fungible and its in a box and they started this game and they will have to exit. Its the ninth inning for them. Yes, i do think that theres a form of thinking to try to keep the markets up until good things happen. Buying time. But as we learned three, four, five years ago, in europe, buying time doesnt end well sometimes because what theyre supposed to begin doing, the reform, that never seems to occur. Michael, kind of ricks point here, the Federal Reserve handing off to europe and japan, how much does it matter that we are still having central bank support in this market if its not coming from the Federal Reserve . Well, it matters tremendously because its liquidity. If the japanese putting money in stocks, that helps liquidity. I think rick makes a lot of interesting points. The u. S. Is strengthening. Some parts of the world is. Many others are not and you have a lot of Central Bank Activity both in europe and japan to pick up where the u. S. Has left off. Thats creating a big divergence of policy. Part of the reason of the strength in the u. S. Dollar and its helping u. S. Markets so i mean, i expect that to continue. I think our fed is in a box. I dont think they can really move too much aggressively on interest raits. I dont think the economy demonstrated enough sustained Economic Growth and they really cant do much going back to qe measures again if they need to. It wont be effective. I want christine to weigh in on this, as well. We learned this morning and never seen so many notes saying the same thing saying, were finally starting to see wages increase in a reassuring way, enough of a way, christine. There are signs i guess if you take it at face value theres strength in the u. S. Economy here. I think there absolutely is and across press releases, theres concerns. Europe, stronger dollar and the two biggest concerns that we are seeing in press releases. A quarter of all Companies Reported this season see that as the biggest concern Going Forward. But youre speaking of wages and were talking, we have a jobs report next week. Linkedin that reported last night, they did better than expected and a strong point is Talent Solutions product and that actually is used by recruiters looking to find new candidates so that segment up 45 year over year. Hang on a minute. We know that we have no problem with people of College Degrees and so tight on that end of the employment market. Thats not what everybodys focused on. Thats not the area of the market for which janet yellen is keeping rates where she is. Thats a good point. We will have to see next friday, you know, where the Unemployment Rate goes. Does it go down further. Where are the strengths . Is it still like you said College Graduates and are those other areas traditionally weak over several readings improving at all . A final word to you, rob, actually, kind of related to this, are we at a point where for companies now at record corporate profitability and starting to see some wage pressure in some areas, could that be one thing here that now marks a bit of a peak if you will of margins and again for the right reasons so to say . Yeah, i think i tell you, as far as wages going up, its a good thing that its twoedged sward. Good thing and could be perceived as a bad thing, too, if that triggers some inflationary pressures. Wages are two thirds of cpi and ppi so certainly we want to see higher wages but theres a downside to that, as well. Right. One to keep in mind. But again, rather see that kind of pressure i think on corporate earnings than the other kind. This afternoon, well leave it there, everybody. Thank you. Thank you. A problem of a space flight. Michelle carusacabrera with the latest. The spaceship crashed in the mohave desert. One person is dead. One seriously injured. Its believed its pilots. Heres a statement from earlier from Virgin Galactic saying the partner Scaled Composites conducted a powered test flight of spaceship 2 earlier today and during that test the vehicle suffered a serious anomaly resulting in the loss of the vehicle. They said at the time the first concern is the status of the pilots. What we were showing you here is from the Virgin Galactic web side. This is an endeavor for private civilians into space to experience zero gravity. Its meant to carry at least six passengers and two pilots. We are learning the location of the crash. It is 80 miles east of bakerfield. Were expecting a News Conference at 5 00 p. M. Eastern time today. But once again, Virgin Galactic, started by as we all know Sir Richard Branson, suffered the crash of a spaceship in the mohave desert. One person is dead. One seriously injured and we believe that to be the pilots potentially on board. By the way, the aircraft the carrier aircraft to get the spaceship into flight, the white knight 2 did land safely according to the company. Guys, back to you. Michelle, thank you for now. Lets get more on what it means to the space travel industry with jane wells by knophone now. Your thoughts . It sets things back. Since 2008, branson is setting deadlines that the first tourism planes would take flight and deadlines have been repeatedly delayed including the latest now was supposed to happen by last december and now the first passenger flights by february, march. Thats changing. All of this happening out in mohave where i visited several times. Where the Northrop Grumman company and the first capsule that branson had and the x prize, they have been doing many of the tests there and the passenger flights, the tourism flights themselves, supposed to happen in a brandnew 200 million facility in new mexico called space port america. Thats where the headquarters are. The testing in mohave. The tourist flights to happen in albuquerque or south of albuquerque. All of that on hold now. There had been reports that they were going to be testing a new type of fuel on this flight and nbc is reporting, of course, that the spaceship 2 was not doing a rocket test in nine months. A long time since spaceship 2 up there doing this. Its been up. I should add, many times before. Its done a few dozen flights with flight 92 and quiet flights. What happened today may be is due to the new type of fuel tested. We dont know. Obviously, appears a pilot is dead and another is injured. And there are other companies i should add out there doing similar work. Spacer is out there in mohave. Xport is one. Its a huge hub for Space Technology there. You know, i mean, lets see what they say at 5 00 p. M. Eastern and theres questions. You mentioned the fact they changed the fuel mix to get more thrust from the engines. Theres also im reading here again from nbc news spent three hours on the ground this morning trying to ascertain whether the weather conditions were right to take the plane up in the first place. I guess it begs the question commercially of what happens now for the 700 people paid up to i read 250,000 a ticket. Well, again, thats mohave. The flights would take off from new mexico and the same area of mohave, of course, is where the Space Shuttle used to land for many years and it can be very, very windy out there. It is you can see the windmills out there trying to generate electricity. This is where the testing is done. Not where the tourists would take off. Okay, jane. Thank you very much. Jane wells there on that breaking news of a virgin spaceship having crashed in the mohave desert. 45 minutes to go on the close. We have done quite well since the Federal Reserves statement and hawkish statement. Slightly more hawkish. Come on. Its all relative. Its still janet yellen. Much more ahead. The co of the Exchange Traded fund giant wisdom tree investors speaking us to exclusively. The stock absolutely rocketed today. Also coming up, starbucks sliding on disapointing sales and the ceo pumped up about the plans to deliver right to your doorstep. The pros debate if starbucks is a stock to own right now when we come back. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov you just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. We begin with a check on markets. Green arrows. The dow, the major averages looking to go out having hit record highs today. In fact, in october, fighting into positive territory. Pretty amazing snapback. You can see there about five names are currently in the red including by the way some of the big consumer names, pfizer, nike, walmart, ibm, home depot and intel outperforms. 42 minutes to trade. Lets hand it over to dom chu for an update. Lets start off with the major deal in the health care sector. Operator aviv will merge with omega healthcare values 3 billion. Heres how theyre trading. 13 . Omega healthcare down a percent or so and Airlines Flying high. Oil below 80 bucks a barrel. Some of the majors all moving higher here. Honeywell announced to increase the annual dividend 15 to 2. 07 a share. Effective in the Fourth Quarter. Shares up by about half a percent. Well end with Meade Johnson fall tong new that is a french food giant purchased a stake in a chinese infant maker. Kelly, simon, back over to you. That will do it. Thank you for now. With over 36 million assets under manager, the next guest has a pulse on the market. Lets bring him in now. Joining us in aex collusive interview is was dmtree ceo john. Thank you. Thank you. I was going to ask you what it was and then today happened. What can you tell us about japan and the flows youre seeing into your etfs. Its not been strong from a flow perspective year to date. The real strength has been the european version of dxj hedge which is actually been the leader in asset gathering in european equities but with what happened overnight in japan a high probability that the jxj did end strong. Its interesting because we heard people time and again telling us that europe was the next opportunity to get in to follow the rallies that we had made in the u. S. Market but then we really, simon, as you know, had a rough patch the last couple of months. Do you think people now, jonathan, pivot and start looking at only if, at least what were seeing in the etf industry, buying europe hedging out the currency so, you know, what were seeing really more broadly is strong dollar. Domestic equities, our dollar fund and then hedged equities working very well. Jonathan, im much more interested in talking about your business own. As you know, a rough year in terms of stock price performance. Very, very rough. Today a surge. Is this a first time you paid a dividend . Yes. Just talk me through. This locks like, if i look at the stock chart, an epiphany moment for you. I would say go back. Last year, up 190 and then this year gave up a little bit as dxj showed weakness and very strong day today. Im not sure what it is today. Up 24 . Thats a good day. 2 billion company. A good day. The question is, youre going do start paying back you have 164 million in the bank at the moment. Repurchase 100 million of shares, pay a dividend. What are you managing the company for . Were you managing it for a takeover . In other words, were you just blazing guns get as many etfs out there and hope you get bought and now youre having to change that tune . No. Just the opposite. We have been running the business to create shareholder value as a standalone company. The business, though is capital light and we run a very efficient business and margins that rival blackrock and we have a fraction of their assets. Do you talk to people about getting taken over . Not we, in. Do you get approached . We dont talk about rumors but youre seeing some activity in etfs. Janus 20 million. I dont know if thiss the full terms. Okay. It was acquired by blackrock and got into the business and not enough sponsors to satisfy the demand of the traditional firms. Is the etf business like hollywood where you have to have the hit products and franchises and if you dont have a dxj in a given year, is that tougher . Different because they have a recuring theme so, you know, domestical large cap dividends, a little bit, lasts forever. The s p 500, 50 years old, doesnt go out of favor so its more like something with a lot of sequels. The dollar bullish done very well for you. Yes, absolutely. Thats been a real strong recently launched fund so the dollars been really driving a lot of money. Do you think that etfs themselves still have the appeal to investors looking into this Product Offering or is it possible because we have motif on all the time. Is it possible th