Market closes lower after fed minutes hit wall street. Bob pisani here with all this action. Not the market doesnt know the fed is going to taper at some point, bob, any time its faced with that reality, we see sellers come out of the woodwork. Yeah. Were parsing every comment and cynical in here. You could prove almost anything reading these minutes. Heres the sense, let me put it up for you, that got people talking. Participants considered scenarios under which it might be appropriate to begin to wind down the program before an unambiguous further improvement in the outlook was apparent. Some people were talking about tapering sooner rather than later. I think thats the key sentence in the whole record. The tenyear, which had been moving up prior to this announcement, moved up even further. We were at 2. 71 at the start of the day. Closing right near 2. 8 . The dow drop the a little more than 100 points but ended off its lows. Still a decline on the day. Not surprisingly, Interest Rate sensitive groups were the ones that got hit the most. Utilities, reits, Home Building stocks with a great day yesterday, started positive ended to the downside. Another group hit, this could be called Interest Rated sensitive, emerging market stocks which were weak even earlier in the day. Theres the eem, which is the main etm on emerging markets, down as well. High beta groups they were weak before the fmoc but once that came out, they weakened even further. Zillow, groupon, tesla. 3d printers second day in a row. High beta group. Never hit before. Yesterday suddenly down double digits. Again today, big drops in all four of the big names there. Marie, yeah back to you. Thank you so much. Joining me is liz ann sanders, charles backrack charles luna and author of good Financial Adviser will tell you and joining us mandy drury. Thanks for joining us. Liz ann, lets kick this off with you. What did you hear from James Bullard and was it the right move to sell into strength . There was nothing surprising in there with the exception of something more explicit with interest on reserbs, which would be good in a couple of ways. If they were to lower that they would that would free up velocity lending in the banking system. At the same time it would reinforce this notion theyre not going to raise the fed rate at any time soon. That would prevent the kind of riot we saw last summer. Not to mention the fact theyll be firmer on the forward guidance. If anything, i saw it as a at least a mildly positive statement. We know theres a lot of itchey trigger fingers in the market right now. Its interesting, because even though the market is well aware this is not an if but a when the fed tapers any time we suggest it we see sellers come out. What i said to bob pisani. And then the buy of the dips who come right after that. Absolutely. I think what were seeing here is something quite ironic to be honest. You have a fed that obviously wants to be very communicative and get out there, be very clear to the market about its intentions, but at same time this new transparent fed is becoming very confusing. There are so many fed speakers out there, so many conflicting voices, doves, hawks, you name it everyone is out there communicating and we end up confused. You saw when the minutes came out during my show earlier today, street signs, there wasnt anything particularly knew we learned here and yet the market sold off. Steve liesman was there and, yes, this is confusing. I dont know what some of your guests think about this but it makes it hard to read exactly what a marketplace should do. Nathan how do you allocate capital post the minutes here knowing theyre looking at the next couple of months . Well if it happened in the next cowluple of months and ill give my original front two teeth back as well if they did that in the next couple of months well have a taper tantrum like we saw about five months ago. Rates are going to spike. The feds going to have to figure out how to have a new two new mandates, in my opinion. Number one how to stop the tapering while still having an easy money policy. Also convincing investors that Interest Rates arent going to spike when they start the tapering. Thats the challenge. When that happens, i think youll lighten up in the United States and you start looking at the movie called europe which is a mini version of what weve been living for the last five years. I also think you have to continue to shorten up your bond portfolio duration. I like flod. What about that robert luna how do you want do you want to chase this market going into year end or how do you selectively pick winners . I dont hear robert luna. Im not hearing him either maria. We have an audio issue. So, well get back to you, robert, because were not hearing you. Liz ann, lets talk 2014. What kind of a year are you expecting for the economy and the markets . I think some of it depends on what happens to the market between now and the beginning of the year. One of the concerns ive been writing about, you and i talked about it maria, is a possibility of a meltup. Thats gaining additional adherence. As good as they feel when its happening, they dont tend to end well. If we were to get a sharp rally, that would make me a bit more cautious about 2014. I would prefer to see what weve been doing, which is kind of this grind higher market. Two steps forward, a couple steps back you get corrective phases, keeps sentiment in check. That would be an ideal environment that i think would carry this bull market nicely into 2014. Its somewhat a function of what happens in the near term. I think whats more likely maria, is were going to wind up seeing a great repricing. Once we start to get taper, and well eventually get it i think well stop looking at government policy and start going back to stock fundamentals. At that point i think value will be in trouble. Then i would like large cap growth. Once weve repriced after we learned theres life after taper, then we can be poised for another run. Another thing im hearing from some of our guests maria, in terms of potential warning signs on a shortterm basis about the market, right, at these levels what weve been seeing recently, lets say over the past month, is leadership by some of the invert ant low quality names. The jcpenneys of the world, up 35 the last month, the number of laggards that have shown up. The russell 2k caps have started to underperform. People are saying keep a watch out on some signs that could suggest a short term little blip on the horizon. Thats a good point. I want to point out Green Mountain coffee is up as you can see, in extended hours tonight. We have some action here in the afterhours. Green mountain beat earnings expectations. 89 cents versus 75 cent estimate. As a result, that stock trades up. Green mountain. What about earnings overall, nathan, how would you characterize the earnings picture so far . Lets talk fundamentals for a moment. Earnings have been fine because weve been able to lower the bar and enjoy the fact that refer revenues not growing. If revenue grows, we should be scared about Interest Rates. Were in financial limbo Revenue Growth was better this quarter, i believe, rich peterson told me the other day it was about 4 growth. Yeah but this remind me back in 2009 when people started the recovery saying, how are you doing in business . They go, fine. And fine became the new great. So right now its yeah we have a little more Revenue Growth. Its fine. But its nothing to write home to mother about. Right. Thats true. Its not great. Weve been waiting for Revenue Growth. Does that tell you anything about the fund mental picture, the fact it feels like we keep waiting for Revenue Growth and to sustain at better levels and were not getting it . Revenue growth doesnt tend to do much more than nominal gdp growth, which has been weak. I think you need a boost to the overall economy to see it on the revenue side. I think the point thats missed sometimes when folks look at rolling over in Revenue Growth and or Profit Margins maybe more importantly, is that portends disastrous market scenario. If you see a real crash in revenues or profit margin but a reversion to the mean where you see them roll over im talking more about Profit Margins, the market has continued to do well under those circumstances. If you could get a boost to nominal growth i think youll see it in revenues. The peaking in Profit Margins doesnt concern me unless were looking at a crash in profit march begins, which isnt in the cards. Thanks, everybody. Final word, nathan, you got it. We have existing home sales down a lot more than we thought they were going to do. I dont think that will push the fed any time soon. Thats a gooth good point. Thanks, everybody. You got the final point. I was going to say with that existing home sales number, i was wondering if part of that is because theres no inventory out there . Often we hear from realtors that they cant get enough homes to sell therefore, if there arent enough homes to sell they cant obviously get a good number. Is that something we should Pay Attention to or you would ignore that . Ill tell you what i dont Pay Attention. The only thing up in housing is the investors who are going to be upgrading the inside of their houses theyll rent and people who have decided to stay in the house and upgrade the kitchen. I think thats the only part of housing thats going up. We have to jump. Appreciate your time. See you soon. Amazon surged nearly 50 this year. Now the online sales giant may be looking to expand its private label business to food. Will amazon spaghetti sauce continue to spice up amazons stock price . Well talk about that coming up. Also in the pipeline things dont always work like theyre supposed to. Good thing the Government Exchange website isnt the only place to buy health insurance. Just visit wellmark. Com simple or call today. All kidding aside about obama care, how is it affecting hospital groups like Tenet Health Care . Tenet ceo will speak with me later on. Ill speak with marketing guru Jerry Della Femina. Qualcomm ceo paul jacobs with me on the chip giants latest innovation that will let you turn on the lights when no ones home. Jacobs on the growing world of things. Youre watching the closing bell on cnbc. The American Dream is of a better future, a confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. Welcome back. After posting gains to start the day, the dow industrials took a dip mid afternoon after release of the fed minutes and comments by James Bullard. Jackie dangelo with a look at what else happened today. Lets review Green Mountain results. Stock up on the number 89 cents in earnings on 1. 05 billion in revenue. Thats a pretty big beat there. Company announcing billion share stock buyback and new Quarterly Dividend of 25 cents a share. Investors were liking this. Now down 2. 5 . Conference call coming up at 5 00. Analysts want more information on the competition out there, market share and also Pricing Power with all the discounting thats happening right now. Meantime jcpenney shares closed up big. Earnings missing the mark but it was the struggling retailers outlook that struck a nice chord with investors but that one down in the afterhour sessions. Bad news for 3d printing systems and competitors. That saw red over questions on business fundamentals. Qualcomm losing ground. Several product announcements coming this morning, including its latest base band offering, Raymond James has a strong buy on the company saying while no product ship dailts dates have been announced its fair to say it should make it difficult for competitors to displace qualcomm with thin customer mowdems. Qualcomm unveiled new products and plan at investor day they say will continue to ride the mobile device boom while giving shareholders something to cheer about. The stock is up 15 . County leader in smartphone chips and computer parts deliver. Joining me is qualcomm ceo, paul jacobs. Good to be here. Lets talk first about the investor day. What did you tell analysts and investors today about where growth comes next from qualcomm . A lot of growth coming from the smartphone wave. There will be 7 billion smartphones sold between now and 2017. Also tablets, alsoound Generation Technology going into china. And people using lots of connectivity in our areas, home car. You could make the chips to enable these things to talk to each other. Absolutely. We make a platform to make them talk to each other across different manufacturers and radio interfaces. When you get into internet a lot of companies build their own device and they dont necessarily talk to the other guys devices. We build a platform that talks across everything. Can talk to my watch. Today using the smart watch i showed turning off an air conditioner, for example, from the watch. Youre on your way home you turn on the lights, turn on the air conditioner, you do it through your watch. Absolutely. Is this helping margins . How do you get the margins up . This is another area were growing into. Margins in the chip business thats a fundamental thing people have been focused on. Were investing on the low end to build cost optimized devices for emerging markets where theres a lot of growth coming in the emerging markets. Were also now having new technologies at the high end. So, ultrahd video on your device. So much much higher resolution video. Also sorts of new technologies, location technologies proximity technologies, and much faster data rates. Were doubling the date ra rates. 300 mega bitbyts coming down to your phone. I love what you guys are doing. So, today you also told investors that the company will return 75 of free cash back to investors. Why is that the best use of cash and how do you do it . Do you do it through dividends . Through buybacks . We didnt say specifically except to say we would grow dividends faster than earnings and that we would also make sure we would do enough buybacks to be to offset share count growth due to Equity Compensation program because we had some dilution in the past for that. Thats a few years that we have to deal with that. We have a little bubble from options we granted far in the past. If we look out, it will probably end up in the next five years doubling the amount that we returned to shareholders. We have already done more than 26 billion to shareholders so far. How is business so far . When you look at the amount of cash people are putting down in terms of i. T. Businesses spending money, individuals how would you characterize it . Id say, you know its a little softer for us in the first half of the year but we definitely see growth in the second half of the year. Some is driven by ltes, so fourth Generation Technology launching in china. Some is driven by gains we have in tablet designs, for example. Some of its driven by new products were bringing out. Some of its driven by profitabilities driven by some cost reductions were also bringing in. So, its a mix of things. Its both on the demand side and also in our case on the cost side. And you mentioned lte, the evolution there. Theres this rush to improve the speed of getting things done. Right. We announced a product that does 300 megabits per second. We also announced using lte, so a Cellular Technology in the same bands wifi operates in. Theres a lot of spectrum out there that could be used for the Cellular Technologies to make your phone and your tablet run faster. It turns out that using the more sophisticated radio we built into the cell phone means we can get twice as twice the speed on the downlink to your device by using lte in the wifi bands instead of wifi and yet it wont interfere with wifi. Its a Good Neighbor to wifi. Thats extraordinary. I know i asked you about what you back in the Clinical Trial all the time, but tell me how thats going. Youre backing a Clinical Trial where you insert sensors into your bloodstream and it will tell you two weeks before you have a heart attack, go to the doctor. Right. Thats happening right now. People will have technology that will be on or inside their body. One of the things weve also announced is the ability to have these various medical devices talk to your phone and then they also talk to the smart watch as well. For example, if im monitoring my glucose on a continuous basis and it goes out of the range i want to control it in i can get an alert right on my wrist, tells me hey, you need to eat something, take an insulin shot whatever it is. That could extend to many other areas in health care because a lot of the cost in health care is around managing chronic diseases. And a lot of that has to do with relatively simple treatments and compliance to the treatment regiment. And prevention getting ahead of disease which sensors are doing. Absolutely. Great to have you on the program. Fascinating stuff. Well watch the developments out of qualcomm for sure. How about amazon meatballs to go with that amazon spaghetti sauce . They could be expanding their private label business to edibles. Will this be the reason amazon stock is justified at current levels . Stick around for our heat debate on amazon. Rebranning obama care. The original mad man, Jerry Della Femina has a few tips on is that and wait until you hear what he says the president needs to do to boost his Approval Rating. Became big