The s p 500. In record breaking territory. There it sits at 1740. 86. Now, there is one way to buy this s p very cleanly or there are several actually, but one of the cleanest is the spider. The spy, and there you see that it is up about 22. 22 year to date. Bob, deuces are wild on that one. Show you the many ways you can own the s p 500. You can slice and dice it a lot of ways. You can own the s p 500 through an Exchange Traded fund three ways, all three of the biggest etf companies essentially offer a way to buy the s p 500 he just told you about the s py. Ishares offers the s p 500 and called the ivb. Virtually the same product. Vanguard enables you to buy the s p 500. Same product. The voo. All low costs like. 05 . Terrific way to get broad exposure to the market. The s p is market cap weighted. Supposed you wanted to do equal weight, all five stocks in the s p 500 equal weighted. The rsp, rydex does one. For the market cap weighted s p 500. Suppose you dont like all this volatility, buy the low volatility part of the s p 500. What they do is own the 100 stocks with the lowest volatility in the s p 500. Owntition like consumer names like up 16 , under performing the s p this year. You want the other thing, you want a lot of action . How about high beta names. These are the companies when the dow when the s p is up theyre up more on a daily basis. This has been a big performer this year. Its up north of 29 and here, tyler, youre going to own things like tech stocks and financials that move more. So the s p 500 is up 1 a day, some of these stocks might be up 1. 5 . Who knew you could slice the bologna this many ways. Growth ways, value ways, lots of things we can talk about. Exchange traded funds allows you to buy all slices of the market these days. Thats why i like the idea. Thank you very much. The nasdaq is up. Lets see, up 38 points right now. 3901. 75. 100 points away from 4,000. Many investors play the index through the triple qs and they are up 25 this year. Sheila dharmarajan is at the nasdaq but focusing on the russell 2,000, also at alltime highs. Sheila . Yeah. Tyler, its not always about size when it comes to stocks. The little guys are having their big day in the sun. The russell 2,000, Small Cap Index hitting an alltime high today and the s p 400 mid cap index hitting a record high. A lot of momentum when it comes to these smaller mid capsize names. I spoke to seth at Serious Research who specializes in the stocks and he think we can continue to see this momentum going forward. Really two reasons he points to. He says one, if you take a look at valuations of the small guys, he says, theyre still in check with historical averages. Great chart that shows when you take a look at sales, were not out of bounds when it comes to valuations for small stocks. Also, he says the credit cycle upswing, thinks were only about halfway through the upswing and what we will see in the latter half is the benefit to Smaller Companies as they get more loans. A lot of momentum along the way of the small cap stocks. As bob was mentioning traders telling me look when it comes to looking for alpha you look at the small guys, they tend to be more thinly traded, tend to have bigger bumps to small caps are coming out ahead. Sheila, thank you very much. Power player time, the s p, fed, and the mess in d. C. With katie, chief Investment Officer at northern trust, bob pisani is with us as well. Katie, want to read something from one of your companys notes earlier today and then take a stab at translating it. With the u. S. Fiscal situation reaching a near term resolution we expect steady Global Growth to join with easy Monetary Policy to support a continued constructive Capital Market outlook. Let me translate that. Buy stocks now. Its the perfect combination, tyler. Weve got very strong fundamentals, reasonable valuations and accommodative central bank. But havent stock prices gotten a little bit ahead of earnings . I mean youve got a Third Quarter earnings reporting season right now where the earnings are coming in kind of flattish. I mean theyre not and Revenue Growth isnt all there. And yet, stock prices have run away this year and continue to. Right. Weve had a mixed bag with earnings this year, although this quarter although we have seen more beats against low expectations and youre right, earnings multiple expansion has done the heavy lifting this year rather than Earnings Growth and we see that shifting into 2014 and beyond where earnings will have to do more of the heavy lifting. Isnt the other issue the lack of an acceptable alternative asset class. Bonds arent going to pull it down. Cash isnt pulling it down. And, of course, commodities still in a fairly slow growth global environment. Its tough to say anything else other than i have to i have to be in stocks. Absolutely. Its a risk on market and with an accommodative central bank keeping rates low for an extended period of time. Were not going to see a hike in fed funds until 2015 or beyond that. We will be in this position for some time. Times forward earnings, can you make a case we should be higher than that . Were close to historic averages. You know, this part of the cycle you can still see a little bit of boost from multiple expansions. We have 11 earnings estimate for the s p 12 months forward. Which gets you 5 to 6 higher than we are now on a price basis. Modest expansion. Bob was togging about the different ways to play the s p 500 index through etfs. How do you come down on that . I mean, it would be hard to argue that you could have done a lot better than a 22 gain, just by putting your money in an index fund this year . Absolutely. Should that be the core holding for most people . Your base, your starting point as an investor is to own the market. The market will give you an equity beta, risk premium over time and to the exit tent you want to outperform the market thats where you look at active management tilting your portfolio. Start there. Exactly. You can generate alpha using Exchange Traded funds by yourself now. You yourself by choosing other than basic s p, you can generate your own kind. Let me lead you into a discussion of sectors you think might do a little, you say the s p, maybe another 5 or so over the next. What sectors could outperform if i want to put more ornaments on the christmas tree. Weve seen within sectors in the earnings season, we have ibm and google in the it tech sector different results. Weve got s p morgan in the Financial Sector and Goldman Sachs versus wells and some other companies. Youve got desperate results. We think the story is more nuance than looking at sectors and we were a focusing on high quality stocks, stocks that have really underperformed in the last year and more than that, as low quality has rallied. Time to do serious stock spiking. Sector themes here. Google versus old tech ibm. Big cap financials versus regional banks, for example, which may offer more alternative attraction. There are sectoral feed plays that are working here. There are. If im recalling, you and your firm alike have been fairly positive on europe and japan. Still feel that way . Absolutely. Weve seen some of the same fundamentals in the u. S. Untolding in europe, improvement in the macro environment across developed europe including the uk and jap pan as you mentioned and we see still an accommodative bank. So lets go back to the fed now. As weve gotten past the washington mess have we . At least temporarily, where does the fed night your think stg. Thinging . What has happened makes the think morgue difficult. The fed mentioned in its minutes the reason for not tapering was based on three key components. One was economic numbers were not sustainably improved. Well, we have, you know, for a data dependent fed were on data deficiency right now. We dont think the numbers are going to be improevlgved over t next second months. The second thing the housing market. Weve had a notable rally in the tenyear. We have to see how that thats mortgage rates. The third thing they mentioned are we out of this mess, the debt ceiling, and the crisis. Two important dates coming up both in 2014. We think the feds taper is pushed out until at least march. Thank you very much. Higher or lower than where we are at the end of the year . S p higher. There you go. Like the folks from barcelona yesterday. Weve been waiting. School kids all said its not working that old trade. Have a great weekend. Melissa, up to you. Trip down memory lane here. Google went public back in august of 2004 and how far the stock has come. Thanks to our handy stock chart system we call the storm. We can see the stock is up more than 1,000 from its ipo day and today, it crossed the 1,000 mark for the first time. Google adding 35 billion in market capitalization today and that is equal to yahoo s market cap in a single day. Put this in perspective. If you invested 10,000 in this stock in 2004 you would have, drum roll, please, 100,000 or if you put 100,000 in it would be a million bucks. Better than 1,000 . It is the same. You get the picture here. John is live in san jose working on a story we like to call google 101. John . Quiet storm chart with melissa. A look at where googless money comes from and goes. Revenue wise four main buckets. Google cites network, motorola and other. Websites, this is the big one, including search and youtube. That brought in 9. 4 billion in the quarter and a main growth driver was youtube where brand advertising up 75 year over year. A lot of that growth is on phones and tablets which are now almost 40 of youtube traffic. Next, we have google network. Those are as google sells on other websites, second largest pot of money at 3. 15 billion, actually flat year over year in the quarter. And third is motorola which clocked in at 1. 18 billion, a big operating loss of about a quarter billion dollars. Motorolas revenue down 56 from a year ago and expenses have been slashed to googles investing heavily to try to make sure the future of android phones doesnt get defined by others. Then finally we have the other revenue bucket, which includes things like chrome book laptops, chrome dongles, google play. Not a lot of profit margin. Those are getting Google Hardware in peoples hands getting them using google services. That fuels profits in the website group. What are investors optimistic about . Mobile, video and international. Googles mobile growth like facebook has been impressive overseas and bulls are hopeful that projects like youtube and chrome cast will help the company gain share of tv ad budgets in the future. All right. John fortt, thanks. To Jackie Deangelis for a market flash. Headlines crossing on motorola solutions. Reuters reporting the company is looking to sell its land business and crane is reporting msi offering buyouts to managers and senior level workers at its headquarters. The stock was lower than spiking on these reports. We are watching shares up over the flat line trading at 60. 93. Jacki, thanks for that. Back to google and also broaden out the discussion to some of the other players. Who is winning in the mobile monenitization race. Natty covers the tech space. Brian analyst withing wh wedge partners. Natalie, google, the market says, is winning at this point. Its winning, right. And mobile is the big concern, right. As john fortt pointed out, there are a lot of arms to this beast and thats the problem because theres, you know, the mobile devices and so theyre in motorola, mobile advertising, theres android, so theyre not quite sure where is the biggest money there and the nature of this beast is everyone has a mobile device and sometimes two and its hard to assume undivided attention. They dont know how to advertise to us yet. This device and that device and want to be on our television with the chrome book. How do we assume people are paying attention enough to sell them something. Something we see in broadcasting. Hard to assume undivided attention. Hopefully everyone is paying attention right now. Of course they are. Brian to you, google a lot of analysts are saying today, really making some traction when it comes to mobile moneni monenitizati monenitization, cost per clicks down, paid clicks, that surged. Can we put to bed this notion perhaps google is not as successful at mobile monenitization, has it turned the corner in that investment story . It has and were seeing that in their results. As a user im also seeing it as i actually use google on my mobile device. Whether im doing a search or using youtube, i am seeing a lot more ads that are smart, that are targeted to me, that im actually using and clicking on. I think they have it turned the corner and you know, a critical number they gave in their report was 1. 5 million Android Devices activated a day. Theyre only in the first of monetizing that global base. If google is winning does facebook have to lose on any level . I dont think so. Facebook is doing a great job as well. They do a great job of on the mobile side of serving targeted ads to their users. I mean what i see is i see apps sent to me targeted at me that im clicking on and downloading because they know so much about me. They know my demographic, what i like, they know what i follow. So i think facebook is actually this last two or three quarters, doing a great job of monetizing the mobile users with very smart targeted advertising. A lot of halo affects in todays session when it comes to the google impact. Not just facebook, but also you take a look at the chinese internet stocks surging in todays session. What are the halos you would buy into based on googles results and halos you would fade at this point . This is a vote for all of mobile. Anybody whos business is really relies purely on the mobile environment, this is a sign were still in the early days of monetizing the global base. Two trends that are critical here. Smartphones are only about half of the global phones sold around the world. So we have about 1. 4 billion phones sold a year. Only about half are smart. Were still half way there to monetizing, you know, the global opportunity. That 1. 5 million unit a day number i mentioned for android thats just the start. That number could be 2 plus Million Units a day. I think anybody who plays in the mobile side from small, you know, app players like blue mobile to players like twitter and everybody in between whos trying to mon tize this global user base is somebody worth looking at. Got to leave it there. Natalie thanks to joining us. Brian blair thanks to you as well. Were just Getting Started on the power lunch show. See this guy, this is dan mangen going through the health care websites and found a lot of stuff we dont know about the problems behind them. Why some may be saying blame canada. Its a friday of big strikes. If youre not impacted by one thank your lucky stars. Back in a flash. Avo what kind of Financial Consultant are you looking for . Talk to us today. Strikes around the world, start in baltimore, mary lapd, port workers are off the job. They are servicing cruise ships that go out of the harbor there. The problem is container ships that make up a big majority of baltimores shipping traffic. Bay area Rapid Transit workers are off the job. Theyve been flirting with a strike for weeks. Had one earlier, now made good on the threats and bart is basically shut down. In italy, a massive general strike has brought the nations Transportation System to a halt. Busses, trains, and the like and you cant strikes without talking about france. There students are in a day two of a walkout they are protesting the eviction of two students from the country. One from albania and the other from ar mania. Melissa . State and federal Health Care Exchanges have been plagued with technical glitches since the websites launch. Power lunch has been following the story from the start and proud to introduce the glitch squad, Welcome Health care editor dan mangen, surfing these site. What have you found . A lot of problems like a lot of people are experiencing and its not just the traffic that everybodys been blaming the feds have been blaming for. You know the slowdowns. Serious problems with the enrollment, quality, being sent over to the insurers. Are medical records not accurate . Whats happening is people are having a very hard time logging on to the sites and when they get through, very few are enrolling and when they enroll all that information gets sent. Those get sent in a batch to the insurers and what the insurers are find repeatedly is that those cant be processed in the form theyre currently in because they lack either essential data, questions about whether or not theyre accurate, or in some cases an obvious problem where spouses are being listed as children or multiple spouses. So insurers are having to hire people to go through these by hand which is not as its designed to do. Big problems here. The Company Behind the exchange is a Canadian Company. They had success setting up the state run exchanges. A lot of fingers have been pointed at cgi of a Canadian Company and got a 92, 93 million contract. People are asking them questions and theyre kicking the questions to health and Human Services which isnt saying much about their involvement in it. The interesting there is that cgi federal also was intimately involved in designing connect for kentucky and that has done phenomenal well. The numbers i looked at before i came downstairs they have the secondhighest level of enrollments in the united states. Kentucky is relatively small state. Exchange with volume in kentucky. In kentucky. Two different exchanges. Thats a state run exchange and the feds are running exchanges for 36 states. The question there is, is it cgis fault or a combination of factors because the feds are dealing with other issues than kentucky is. It was shocking to find out this contract was given to a Canadian Company in the first place, but also if you read about the technology the federal exchange is based on technology thats what, a decade old . Usa today how can that be . Had a damming story saying a, this technology is a decade old, two, take six