in separate directions today, one is the dow's best performer, the other the worst performer on the s&p 500. let's get to nicole on the floor of the new york stock exchange with that. >> reporter: hi, good afternoon, liz, welcome back. taking a look at a couple of technology names, folks, the nasdaq is up over three-quarters of 1%, but we have a few names here, both ibn and adobe. ibm, which has been one of the best here of the dow 30, right now one of the worst performing this year. i mean, you can see it's gaining 3%, but it has been under pressure for the year 2013. and adobe making it one of the worst performers in the s&p 500. well, it's, let's see what it's doing right now, down 3.6% following the quarterly report. there's a look at a year to date. you can see it has run up, but today pulling back some. we've had a lot of mergers today, liz. we see a rally on our hands at least for today after two weeks of selling for these major averages. back to you. liz: doesn't it amaze you, nicole, the nasdaq up 32%. i find it fascinating to see that technology overall is such a winner. >> reporter: it really, it outpaced both the dow and the s&p, and that is damage 5,000 doesn't sound so crazy -- nasdaq 5,000 doesn't sound so crazy anymore, right? liz: not by much. calm down, killer. thanks a lot, nicole. appreciate it. well, you cannot ignore that industrial production number for november that came in today at the best levels in a year. but that was sort of counterbalanced by a miss for the new york regional manufacturing index, called the empire index. either way, guys, let's bring in the traders. the markets decided to focus on the good versus the bad or the ugly. jon corps peen that, what a rally today, we had a couple of days of losses last week. >> liz, that's exactly it. coming off of a market that was down 1.7% last week, three days, four days in a row straight losses, at some point the buyers were going to come in and say it's time to bottom feed for a short period of time. put that together with good economic data, we had some m&a news over the weekend and out today, all this stuff is positive for the market. now, that leads us to the calendar this week and talking about what we're going to get from the fed. i personally do not think we're going to get tapering from the fed this week, but i do think we're going to get additional information that's going to tip their cards more. that tipping happened back in september, and the market rattled for a few days after that. i don't think we're going to see that type of rattle now. our market's strong enough to shake off any additional information we're going to get out of washington, but i think it would be good towards the end of the year that d.c. does give us more information as to what they're thinking, how are they going to do this and when. liz: right. and remember, they don't all get followed by a press conference, but this is one of those meetings that does on wednesday. so, kevin; i think jon's absolutely right, we probably will not see any kind of tapering at this point because we've bot go one more labor number for the month of december, and that gives them an opportunity starting early next year to make some type of decision. if we just focus on what the markets are doing for the rest of the year, you did have treasury prices moving slightly higher perhaps on the economic data or perhaps on the belief of what jon was just talking about. >> personally, i don't think any tapering is going to come out of this meeting. you have seen rates actually tick just a little higher here. but i think really all traders are kind of sitting back waiting for what the communication is going to be from this meeting this week. i think you are right, there's another labor number coming out, and that's going to give the fed the opportunity to go into the new year, look at what the data set is telling them, look at where the labor market is and then be able to communicate exactly what their exit strategy is going to be -- liz: do any of you guys believe that the markets can outdo themselves in 2014? it has been an amazing year. i mean, thumbs up, thumbs down? that'd be a hard one to do, right? >> definitely, i don't think they can. liz: okay. and, jon, what do you think? >> >> yeah, it's going to be tough to top what we've seen so far this year, but that doesn't take away the fact that we're still going to roll in the right direction, and the economy is going to show progress. liz: you could argue, alan, that oil has been the big surprise. we end today up about 88 cents, we are trading in the aftermarket session, but the energy complex is an interesting one here. we finally got some weather to drive the maneuvering. >> yes, i agree. i think we have one more rally in crude before year end..% i don't think it make $100, and after that i think it comes off. natural gas, we're going to need a lot colder weather to make that rally, so i think we have possibly another rally up to 440, and then that's going to sell off. i think come middle of january, early february these energy products will be a lot lower. liz: lot lower. okay, so alan's saying you will not see $100, we will not kiss that print. thank you so much for joining us on the floor show. see you next time. okay, so much for those of you -- there are some of you out there -- who tried to count out general motors at the height of the financial crisis. today in a show of hour the u.s -- how far the u.s. auto giant has come, gm giving a big thank you to america in the form of a 1.3 billion investment right here in the u.s., putting a significant chunk of money to work in fife plants across the midwest. and in a first on fox business scoop, our own jeff flock live in flint, michigan. jeff, i watched your interview with gm's north american president following the announcement, he was so genuinely excited. what does it mean for jobs, gm and america? >> it means about a thousand jobs. these are retained or created. $1.27 billion, and you're right, mark royce very excited about that. we're excited, too, because you're right, liz, you're getting a live, exclusive look inside the gm flint assembly plant. that's a chevy silverado pickup right now, and dan akerson today at the national press club defended gm's focus on these big trucks and big suvsment he said when he was asked why are you doing that, he said why did willie sutton rob bankses? because that's where the money is. and mark royce echoed that today with him as well. gm, he says, a very, very different company b today. >> if anything's changed and i could sum it up in a sentence, it'd be the has become a revenue-generating, customer-focused company again instead of a distressed inti bety. those are the big changes. we've worked very hard, and i'm just so proud of everybody. >> reporter: and, you know, that is why, liz, a lot of people are thinking very positively about gm stock. it has done pretty well, a lot of people think it's going to do a lot more. now that the government is out, now that new management is coming in. and i'll tell you, really exciting to see these trucks -- that's a heavy duty. that's the chevy silverado heavy duty pickup and, boy, that is a big, massive piece of technology right there. liz: whoa. and the silverado, they have great margins, don't they? that's the real moneymaker for some of these companies. >> reporter: they do. just what dan was saying, exactly. that's why they're in there, to make a lot of dough on this. liz: show me that chassis, you know what i'm saying. [laughter] >> reporter: you know what this is now, we were just talking about this with the engineers here. liz: okay. >> there used to be a c chassis here, now this is completely one piece now. it's much stronger, and they are number one in terms of payload and towing capacity. always fighting with ford about that, but that's why. i'll tell you, this is serious stuff, and this is where the serious money is made, so they put a lot of engineering into this stuff. liz: so i was right, that is the chassis. >> reporter: exactly. and that's a huge, a huge change for the silverado right now. you know more about -- you don't even know what good stuff you knnw. liz: hey, that thing can schlepp, that much i know. thank you very much, jeff flock getting the first on fox business interview with mark royce. you guys should go on foxbusiness.com and look at that interview because mark royce was jazzed. he also had some very nice comments about the new ceo coming in, mary berra, and it's an interesting time for general motors. closing bell ringing in about 50 minutes. will he or won't he? we're talking about fed chairman ben bernanke and the $85 billion question of whether he'll pull taper trigger this wednesday at the last federal reserve peating of the year. and -- meeting of the year. and guess what? our peter barnes is always the one who seems to be asking the news-making question at bernanke news conferences, so you do not want to miss what happens this time around wednesday. we're all over it, live. you need not watch any other biz channel. peter's the guy who knows how ask the questions. and beyonce's new album, all digital. it's got the music business dancing to an entirely different tune thanks to the power of the internet. is it a game changer for the entire industry? we're crunching the numbers and talking to music business insiders. stay tuned. ♪ ♪ [ male announcer ] here's a question for you: the energy in one gallon of gas is also enough to keep your smartphone running for how long? 30 days? 300 days? 3,000 days? the answer is... 3,000 days. because of gasoline's high energy density, your car doesn't have to carry as much fuel compared to other energy sources. take the energy quiz. energy lives here. yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat ratate. so i kn untilt was full. you'd be crazy not to. is tt nana [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. and this park is the inside of your body. see the special psyllium fiber in metamucil actually gels. and that gelling helps to lower some cholesterol. metamucil. 3 amazing benefits in 1 super fibe liz: okay, okay, can you see that? can you guess where that was taken? here's a hint, i was fortunate enough to attend the nobel peace prize award ceremony. no, i didn't win, i know. in the country where the local fare involves moose burger. >> yummy. [laughter] liz: oslo, norway. okay, obviously. but then i got a little sidetracked. this one's a little more difficult, except that we put it on the banner. quick trip to prague. do you know where that is? okay, you get a little luck if you rub the little golden dog on the relief of the charles bridge. you make a wish, still waiting for mine to come true. but there it is. i went to prague and oslo, little break there, and i'm bringing back some interesting pictures for you. on to the power mover of the hour. i know, i wanted to win the nobel peace prize but didn't quite happen. aircap holdings, we were talking about this earlier. take a look, up $7.58 right now. it really skyrocketed at the opening, this after aiq confirmed -- aig confirmed lands to sell to aircap in a deal valued around $5.4 billion. the move will create the world's largest aircraft leasing company by fleet size. here's aig moving slightly higher on the news, off the highs of the year but not bad at all when you look what aig has been through the past couple years and, frankly, what one small division put us through. despite all the fiscal uncertainty and unending taper talk until we actually see on behalf of the federal reserve, we have one person who says overall the economy is in pretty good shape. with more than $2.4 billion in assets under management, my next guest believes there's plenty of time left in the year for you to make a pretty penny. he's tim holland. a couple of days left of trade here, tim, what do you mean a lot of time? >> well, i don't know if we have a lot of time, there's always next year, but i think your comments around aig are pretty instructive, liz, and it gets back to corporate america very focused on shareholder value. and we're just seeing that. we're seeing companies divest non-core businesses, companies buy their competitors, and so the private sector in this country is in fantastic shape, and that's being reflected, we see, in the stock market. and we've owned aig in the diversified equity fund for some time now, and they've orchestrated one of the great turn arounds in u.s. corporate history. liz: let me make that clear, because you're not a johnny come lately here. you've owned this stock. we just saw the one-year chart, it looked absolutely fantastic. >> yeah. liz: you were able to make money for your investors. you were bullish when you should have been bullish, that has worked out very well for you. however -- >> yeah. liz: -- i would have to say that the atmosphere looking ahead is a little misty, less clear because of the potential tapering and how the market will react to it. we know tapering's going to eventually happen, but what is your anticipation of how the markets will perform with that backdrop? >> our anticipation is the fed will telegraph it as clearly as possible, and it'll gradually with priced in. if it's not priced in already. and while that become withs a bit of a headwind or maybe less strong of a tailwind, the one thing that people aren't talking much about is the other sort of game in town, d.c. the political class has all of a sudden become a bit more accommodative, a bit more rational. so you may have the fed exiting the stage, but you also have the political class exiting the stage, and some of these deals probably create a lot more certainty for the economy and for investors or. there's one leaving and one negative, one positive we think in the nation's capital. liz: absolutely right. it appears at least some in washington from both sides of the aisle have found a compass when it comes to actually coming together and doing what the american people pay them to do. >> yeah. liz: overall, your outlook for 2014, we were asking our traders on the floor show, could we possibly match or even come close to what we've seen over the past year with the nasdaq up more than 30% year to date? what's your outlook for the markets, by the end of 2014, will we be higher than we are now? will we be flat? lower? >> you know, liz, we're stock pickers, but if you look at history when the market's up as strongly as it is in this year, it tends to be up the following year. by usually a healthy amount, low double digits plus. so as long as earnings continue to come in okay, the political class behaves itself, our expectation is the typical stock will be up so, yeah, the broader market should be higher and maybe nicely higher by the end of 2014. liz: you've got some picks that i think people will find interesting, but before we get to that, a what keeps you up at night since your outlook so particularly rosy? >> you know, to be honest -- liz: he's thinking. >> finish with you, nothing right now other than my 4-year-old son who still isn't the greatest sleeper. liz: they tend to do that, right? [laughter] >> everyone told me by the time he hit 4 it'd be a lot easier, but not so much. until everyone stops asking what keeps us up at night, i'll probably sleep okay. there's more good news than bad news, and i think the skepticism is good. it keeps me, keeps me comfortable. liz: all right. let's get to the good stuff, and that's your stock picks. portfolio recovery assets. what an interesting name. praa, pe ratio's about 13. it's already up 55 percent this year, what can it possibly do next year? >> yeah. so praa, we own it in our diversified equity fund. what they do is accounts receivable management s so they buy paper from banks and retailers at pennies on the dollar, and because they've got best in class collection techniques, they make more money than what they pay for it. a management team founded the company 20 years ago, and there's always going to be some bad consumer debt out there, and they've just got a fantastic competitive advantage, and we like the company very much. they're fundamentally very well run. liz: i like to mention this because it popped out at me, 17% of the float is shorted. it just tends to make it slightly more volatile. true blue, tbi, this is a little richer, but a beautiful performer over the past year. >> yeah. and we don't own true blue in this either portfolio, but i'm somewhat familiar with the company, and as the jobs market comes back, the staffing companies are a way to play that -- liz: well, when will you buy it? >> um, i wish we had it in the portfolio today, but we don't. but it's been a fantastic roll-up story. it's the old labor ready. they bought a bunch of competitors on the cheap, and again, that's the trend we're seeing. that's a company that i should take another look at because they've just built a nice national footprint mostly through acquisition. liz: since we are nearing the end of the year, we always like to ask our stock pickers their best but also their worst calls. let's start with your best call, glacier bank corp.. i find this interesting because it lends to small and medium businesses in the northwest, in essence, and the west. >> yeah. liz: when you look at this company, doesn't this send a message that small and medium businesses if they are borrowing have actually done well, right? >> yeah. yeah, i think every investor should at least follow a couple small banks even if it's not their area of expertise, because they tend to be the canary in the coal mine in terms of main street demand. and glacier, to your point, is in the rocky mountains, ceo's been there for over 30 years, and they just executed beautifully, never took t.a.r.p.. i think if there's one area we really latched on to and saw the potential this year and even last year, it was better capitalized, small cap banks like a glacier or bank of to zachs. liz: that one was up 97%. i'm glad you picked that one as your best, your worst down about 13%. give us that name. >> so, well, and as i explained earlier, we're not allowed to talk about what's not in the top ten in either portfolio, but where we probably dipped our toes too early in the year was in the metals and mining space. all those companies corrected sharply last year because of concerns about china, it turns out that decade-long bull market in commodities has driven a lot of incremental production, and we think it's going to take a while to work off of some of those additional supplies that have come online just because china's not growing as rapidly as it it once was. liz: well, your fund's up about 25% over the past year, you've done well. good to see you, tim. >> good to see you, liz. happy holidays. liz: you too. >> i hope so. liz: tim's a portfolio manager. we've got some wreaking news right now on herb life, hlf. this has this push me-pull you going on with billionaire financiers, some shorting it, some going long. stock is halted right now pending news, but i'm just checking the wires, and in essence, herbalife is saying that ii is releasing a re-audit of 2010, 2011, 2012, and they are saying that there was no real change. am i looking at that correctly? there were no material changes to the company's audited 2010, 2011, 2012 financial statements included in the amended 10k. now, they were probably pushed to re-audit over the past couple years by bill actman or at least his accusations that the company is some type of pyramid scheme. they have absolutely said they are not. in fact, carl icahn, very smart billionaire, has gone in long on this stock. before the stock was halted, it was up about $2.32 or 3.33%. we've got charlie gasparino running down here right now, he's been breaking news all draw, he'll be down in just a minute with more clarity. the closing bell is ringing in about 35 minutes. could be a grim bonus season for one of wall street's biggest banks. charlie has exclusive details. he's really kicking some tail here. he's got this, he's got icahn on twitter, icahn on herbalife, everything. why the firm is slashing compensation, which firm, and what's in store at other big name banks as well? and the markets, yes, they close at 4 p.m. eastern, but i am always on call for you. head to foxbusiness.com/oncall. you need to sign up for claman on call if you care about your money. i'll give you the top headlines of the day, biggest interviews, all of charlie's breaking news, anything that happens that you need to know about but you may have missed. the most important 90 seconds of financial news right to your smartphone. don't go away, charlie's coming down next. ♪ ♪ (vo) you are a business pro. you can separate runwayridi. seeker of the sublime. from fason that flies off the shelves. liz: okay. i'm seeing herbalife -- wait a minute, hold on, herbalife is halted due to breaking news right now, and the breaking news is that herbalife has released the re-audit. they redid their audits, they were amended filings. they are now up-to-date with sec requirements and periodic filings. there were no material changes according to herb a life, the company that's sort of been embattled because you've got some billionaire financiers taking a very short position, bill ackman, and then george soros and carl icahn saying we think this is a legitimate company. ackman believes it is absolutely not, but as we wait for this stock to change, charlie's down here with a couple breaking pieces of news not just on herbalife, but also on citi -- >> well, citigroup bonuses we're going to get into, but there's no material change, i think, is the line here that investors should know about. there's no material change from what it was before. remember, why did they have to redo their audited financials? the auditor, i guess it was -- liz: pricewaterhousecoopers -- >> he was involved in an insider trading scandal involving twitter -- excuse me, involving herbalife. i've got twitter on the brain today. because he was involved with that as he was doing the auditing results, that nullified about three years' worth of audited financial -- liz: okay. so i misspoke. i thought that it was bill ackman forcing them to restate -- >> no, no, no. this all goes back. this has nothing to do with ackman. ackman would love it to have something to do -- [laughter] it has zero, but the stock would have been up. essentially, what we have here is it was almost technical. they redid the earnings, they redid the audit, and, you know, everything's the same as it was before, you know in the fact that the guy was an alleged insider trader really had no material impact on their earn, and that's why the stock today. do we have a stock -- can you show -- liz: yeah. it was up more than $2, again, it's still halted -- >> that's weird that it's still halted. i wonder why? liz: well, they said pending -- oh, wait, is it trading? >> no, it's not holding. liz: sorry, i wasn't getting information. >> it's over. it is what it is. liz: it just opened. >> that's pretty amazing. when they halted it, you know, what i do is call down to the control room, i thought it was one of two things, or east this or the buyout. -- either this or buyout. if it was the buyout, the stock would be up to probably $80, $90 a share. liz: how much is ackman in the hole right now? >> over 500 million, and if they do do an lbo as maybe carl icahn thinks is possible, well, he's going to be in the hole maybe double that. i mean, who knows? this is a big loss. if you notice, bill ackman has now ratcheted back his public sort of attacks on this company. he's not there. liz: all right. let me just quickly say before we head to citi, now it has doubled its gains. >> where is it now? liz: it's up 7%, make that more than doubled, 73.23, 73.43, it's moving very quickly -- >> before we get into citi, the nightmare that citigroup bonuses this year, we should point out that carl icahn believes this is a $100 stock, okay? i'm not saying it is, i'm giving you the bullish scenario. liz: he told you that. >> yes. he said it on the air, i believe. he believes this is $100 stock. i can't tell you the truth. i think there's some merit to what ackman says about it being a pyramid scheme, you know, more distributers than actual users and at some point you run out of distributers. i will say this, though, here's the difference between a pyramid scheme and a ponzi scheme. everybody knows how they get their business, they get distributers, they claim the distributers are users, and there's a lot more distributers to use. and before they run out, that could be $100 stock. liz: once again herbalife saying no material changes. citi. >> well, what we have now, talking about the places that have the worst bonus scenario out there, it's, you know, it's barclays is not going to do too well. jamie dimon over at jpmorgan is going to be fine, the jpmorgan people are going to pay their people. citigroup looks like it's going to be crushed. you're thinking at some places you're down 10-15%, and we understand that citi could be down something like 20%. and, you know, why is that? well, the simple reason is this, this is a bank that doesn't do much business. but it does -- it's run by a cost cutter, you know? mr. corbett, the new ceo, is not a guy that's going to blow you away in terms of doing business, pushing the firm on deals. it's, essentially, a barely, it's a barely competitive bank particularly in the u.s. and because of that, it's not going to be paying people. so what we understand is particularly in fixed income trading, those people are going to get screwed the worst. it looks like the bankers are going to do bad but not as bad. this is a scenario where bonuses at citigroup are down 20%, and, you know, could be down 20%. and i will tell you, that is not a good thing. liz: okay. citigroup stock is just basically flat. i just want to quickly mention, herbalife now up 8.5%, it's now trading at $74.27. >> yeah. i will tell you i think carl icahn -- here's the thing. you look at this two ways. what scenario will play out first, ackman's bear scenario where this thing comes crashing down because they run out of distributers, or the bullish scenario where there's a whole world of potential distributers out there even if no one's buying the product, and this thing could keep growing and growing. if you look at the basics of both of those scenarios, you've got to think that the bullish scenario is right. in the short term. you know, maybe not ten years from now, but in the next two years. i look at this logically, i don't know. i don't have a horse in this race. liz: 25 minutes before the closing bell rings and already charlie owns the screen. thank you very much. we could be on the brink of a wireless revolution, and it's not just because sprint might be looking at a possible takeover of t-mobile u.s. we've got an all-star panel to tell us why every investor should be watching what is happening in this industry. and they have such cute names, wildcat and cheetah, but look at these robots. this thing is terrifying. it's deadly serious. the company that created them being bought by one of silicon valley's biggest names to do what? 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[ male announcer ] no one protects you better th lifelock. and they stand behind their protection with the power of their $1 million service guarantee. in fact, last year, lifelock protected over 2 million people during thholidays and now they can do it for you. try lifock's protection 60 days risk free. ♪ ♪ order now and get a special holiday gift -- a document shredder to ke sensitive documents out of the wrong hands. a $29 value free. ♪ ♪ because during the holidays, keeping your identity protected means keeping your family protected. liz: herbalife, hlf, skyrocketing, np nearly 11%, it continues to climb and climb. it was halted and then the breaking news came out, they had a re-audit, and the results showed no material changes for the past three years for herbalife. right now up $7.49. a little bit of mayhem, nicole petallides, fascinating to see what's going on here. >> reporter: it has been a very busy hour with herbalife halted here at the new york stock exchange as they now have done their re-audit, it is complete. we had the stock halted, as you said, even now it is breaking through the highs of just moments ago, trading at $75.70 and change. also worth noting, they've re-audited the company's statements for the fiscal years ending 2010, 2011, 2012. carl icahn, bull on this one. george soros, bull on this one versus bill ackman who's been very bearish and called the whole company a ponzi scheme. in the meantime, stock's been up about 127% this year, so you know ackman's been a loser on this one, but now you have that carl icahn's making some big comments right now across the board on the wires and the like saying he's never doubted herbalife. the company is undervalued, he's a big fan of buybacks from the companies that are cheap, so he is still -- and he even gave a jab to ackman saying ackman on herbalife is often wrong, never a doubt. so there's a lot going on -- liz: nicole, let me just jump in here, this had absolutely nothing to do with this one up manship between icahn and ackman. this had to do with something that happened way back in april where, of course, the pricewaterhousecoopers auditor, i believe, scott london, remember this guy if he was taking envelopes of cash from jewelers in los angeles, getting passed all kinds of information because he had been the auditor of herbalife, and in essence, they had to redo all of the audits his fingers had touched because he was involved in insider trading. and what did those audits show? that there was nothing fishy, nothing suspicious -- >> >> reporter: that's great news. liz: very. >> reporter: and we covered that story when it happened. by the way, of the analysts that cover it, 70% still have buy ratings. seven buys and three holds. no sells on this one when you look at the analyst readings. they're still hot on it. liz: actually, it was kpmg that the auditor had worked for, and they brought in pricewaterhousecoopers who was the independent auditor who had to check all of his work. scott london, of course, working for kpmg had been passing secrets about hush a life and skechers and all other companies to just random people. anyway, back to the news here. a new telecom giant could be in the works, wireless provider sprint reportedly considering a possible takeover of smaller but gutsy rifle t-mobile u.s. the company, if combined, could become the third largest wireless provider, this is important, in the u.s. behind industry giants at&t and verizon. okay? so what does this possible new partnership mean for the telecom business, and does it mean more consolidation for the industry? we bring in our all-tar panel, a finish star panel, joining me now frank, raymond james and vince lowery, revenue shares founder and president. welcome to you both. frank,,i'll begin with you. t-mobile may be smaller, but it has done unbelievably well over the past year by taking all kinds of chances. and then here come cans sprint, obviously, having the biggest portion bought by japan's soft bank. they want to grow, they want to take on verizon and at&t, what was your gut reaction when you heard this rumor friday that sprint may be very interested in this? >> well, first reaction is i think this is probably something that they need to try to look at currently, but this is going to be very difficult to get through the justice department in this current administration looking at the way they look at consolidation, i think they would say there's too much market concentration, very difficult to see something like this actually happening. liz: okay. and, vince, your thought. of course, you have funds that have big stakes in names like verizon and at&t. >> yes. i think this merger makes sense because in the telecommunications sector and across the s&p 500 revenues are growing very slowly, 2.8% a year, not much better in the telecommunications sector. it's a total of about $300 billion in revenues in the s&p 500 from the telecommunications sector. about 150 billion, 160 billion of that is at&t and verizon. this combined merger would make the two companies about $60 billion. still only half the size of those two. i don't think the justice department is going to have as big a problem as everyone thinks with this merger. i think it will go through. it makes a lot of sense and creates almost a third really good competitor. liz: well, frank, does it mean that while they're fighting to get the justice department to give its approval to something like this, that the at&ts of the world and the verizons might be less distracted than sprint and t-mobile and, therefore, they could jump ahead, stealing some of -- i've seen t-mobile's playbook. john ledger and his team have done amazing things with this company over a very short period of time, and, in essence, they've beaten the big guys at a game that those guys don't even know how to play. >> oh, sure, this is great for a, the ask, the and verizon. you've got the two major competitors that are primarily more of an issue for at&t initially, but they'll both be distracted and looking at closing a merger and integrating the companies, that would be fantastic for them. and i don't want disagree it's a good thing to see more consolidation in the industry, i think it's the type of industry that can clearly handles competitors, and the network-based businesses tend to pass on the savings to the consumers. however, the justice department tends to look at it from a market share concentration, and they tend to look at the number of brands in a market and how much market share you own relative to the size of the companies. i think it would make great sense, be a logical thing to happen, but unfortunately, justice department, i believe, doesn't look at it that way. that's why i think it's going to be more of a challenge, but it would definitely be great for at&t and verizon. liz: vince, is there a reason you don't own t-mobile u.s.? you own other telecoms. >> what was taken out of its merger back in, i think, april with another firm be, they were pulled out of the s&p 500, and we replicate the s&p 500. liz: i see. >> but we weight it by revenue, so it was taken out or we would still own it. you know, t-mobile and sprint were two with of the best performing stocks in the telecommunications sector last year, both up just over 20%. although the market was up 27%, the telecommunications sector up as a whole was only up 9%. that easel thing you -- that's the telling you something, that the technology changes going on there, these companies have got to be allowed to do things like what they're doing here in order to be able to continue to deliver the services and keep the prices going down. there's a lot of ricing pressure -- pricing pressure in the telecommunications sector. i think the justice department would be very wrong in going in there and trying to second guess these very smart people that live there every day and understand the market. liz: frank, video has become so important as networks struggle to beat each other out, and you've got to have one of those networks that can handle huge amounts of video over the lines and over the pipes. i mean, who is best positioned, in your opinion, which name do you like the most right now? >> well, our best pick for the next 12 months is comcast. we think they're in a very good position from having made investments in their network, you look at some of the other discussions about cable consolidation and trying to replicate comcast with its scale and with its network investment, so that's really our top pick. verizon's also making a very heavy bet on media and from the telecom side we like verizon best, but i think overall with better fundamentals, we really prefer comcast in the next -- and it's the stickier product. liz: okay. vince, do you have a favorite? >> we like verizon and at&t, they both have great dividends, and we believe the size of those companies, they can withstand the pricing pressures and the technology changes that can occur in this sector. liz: okay, you're picking verizon. one quick with second, frank, does anybody, an investor, want to ride the arbitrage wave between these two when it comes to sprint and t-mobile u.s. or is that too risky at this point? >> i think that's probably too risky at this point. i think it's just more conversation. i think you're better off sticking with the fundamentals and holding one of the names that we like, verizon or comcast, on the fundamentals rather than try and place a riskier bet. liz: vince,k so much. closing bell ringing in about ten and a half minutes. we, of course, following the breaking herbalife story. herbalife, hlf, just resuming trade. the stock has been soaring ever since. it's a huge move after the company announced that it's re-us kit nowed -- reawe did not not reveal big changes. stock is up 11. and speaking of jumping, these robots, take a look, can do things no human might want to do and, boy, are they intrepid. they were developed with money from the defense advanced research project agency, but somebody thought these things were so cute even as they were kicked and didn't fall down, they're buying them. let's talk about that next as google takes a bite here. ♪ ♪ liz: for anybody out this who was kid of hoping herbalife would go down because you're short, today is not your day. the stock is jumping off the earlier highs, had been up more than 11%. the breaking news was that the stock had been halted and then, of course, it was opened on the news that the re-audits that came about for a whole bunch of reasons came back clean for the past three years. our stork market up about 132 points, we will be right back with the closing bell. ♪ ♪ well, did you know that just one sheet of bounce outdoor fresh gives you more freshness than two sheets of the leading national store brand? who knew? so, how do you get your bounce? with more freshness in a single sheet. became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. liz: breaking news on the competing bid for time warner cable, twc. comcast, there is a report that comcast is coming up with three different scenarios for taking over time warner cable a behemoth in the industry. three scenarios inconclude exploring a full takeover bid and buying selected time warner cable markets, or, perhaps teaming up with a smaller company other than charter which also wants time warner cable to bid for all of time warner cable assets. david, this is a big story. cox is also publicly interested but they're in the publicly-traded. david: all the cash comcast may have to do all the deals is extraordinary when you think of all the money involved. go to nicole petallides to talk about herbalife. go made. >> they were halted and reopened of the they had to restate numbers. reat the same time of several years. -- restatement. he said ceo that they're not committed to debt offerings. the stock is up almost 10% at 74.92. the highest point was 77.29. a busy day as restated 2010, 2011 and 2012. liz: this is important to ♪ volatility index and treasury notes popping ahead of what is expected to be a non-decision fed decision on wednesday. >> i can't wait for the fed decision. everybody continues to focus on the fed. let's see what they say. we saw the vix as you noted popping. earlier in the day it had been lower. it is up 1 1/2% going into the close. [closing bell ringing] david: twitter is sliding back into the red. we'll cover that news and all the other news but a lot of busy stuff happening towards the end of the day. this news from comcast, maybe some kind of a bid for time warner and of course all the news about herbalife. again as you pointed out, liz, all the shorts on herbalife, they got kind of screwed again, didn't they? liz: they sure did. 10% gain on the stock at last couple of checks. bells ring on wall street. it is a relief rally. the dow at one point up 162 points, ending the session up 128. s&p jumping half a percent. nasdaq making a 30% gain for the year. david: look at russell 2000, they are of all the indices, best performer. small and mid-sized caps are what they represent. always good news when they do well. look at the front page headlines before we go any further on busy day. u.s. industria