We do begin with the fed and the markets and the realization that the free money mania of the past six years could be about to end. Most importantly, investors seem ready. Stocks taking off after those fed minutes appear to lay more ground work for a december rate hike. The reason that we at double line are cautious though, when you look at broad indicators today, were worse off than in 2012. At the end of 2012 gdp want only gdf was off by 1 . Now its around 3esh. Moderateties are at alltime lows in some indicates. China is slowing. It just doesnt strike me that things are so hot that you have to accelerate. Are they so bad you have to be at zero . I guess the fed price stability. With regard to the price stability, were nowhere near the 2 inflation target. With unemployment by conventional measures, 5 it looks like were there. However, what i thought was jarring is when you parse through the numbers of the last unemployment report, 271,000 jobs added. Thats great. It was shocking to me jobs added for workers over 55 years old. 378,000 swrobs. The cohort between 24 and 55. A loss of 35,000. The quality of the jobs being created is suspect. Just so were clear. Jeffrey told us in the past he didnt think there should be a rate hike this year. He didnt think there would be a rate hike this year. Has he changed his view at all . I mean, does he now believe as well that there will be a rate hike in december . He does believe there will e be. How could some people be so confident that were going to see 100 to 125 basis points move higher over the next 12 to 18 months. Is that a flawed expectation . The fed is going out of its way, and. I think she made it pretty clear that they felt like a rate hike was needed, but that did not really mean that you would run a glide path for higher rates on a consistent basis. I laid out the beginning of the program investors are ready for this. The market yesterday wasnt that the statement that the minutes come out, theyre hawkish, more ground work, fed speak yesterday lays more ground work. Market goes up. Bigtime. Is that a sign that investors are ready . Are we finally ready . I think we have the majority of people, even convincing miss baha and Jeffrey Gundlach that here going to make this move. The consensus has moved strong this that direction direction. Its a minority of people that they will move. Tell me how to play it then. Into december, what happens . Theyre going to go into december, and its going to be a quarter point in my plea of. If you are in the nurielrabini camp, you think it has to be at least half a percent based on what his outlook is for three rate hikes to get to us i think we get a quarter percent. Nothing happens, judge. We just go about our business, and then the next one, how fast the next one comes and how big the next one is because if the next one was that half point move, then i think its a different story. Just saying does the market continue to rally . Thats what im trying to get at. Help me out. Is that a sell on that news when the realization finally happens . I do think i agree with john. I think its a quarter point. When you look at what everybody was talking about, including this morning. Richard fisher was talking about he expected to be way back in sept september, and now he absolutely expects it. The market expects this to happen is it in december, approximate if it doesnt, theres going to be huge disappointment. That would be an even more aggressive sale. I think you asked the other question as well along the way, scott, which is whats going to be working . Financials. Look at the way the financials absolutely rocketed yesterday. Look at the way the Technology Names rocketed yesterday as well. I think there are certain sector that is will respond to this rate hike in the way that obviously most of us would hope the entire market will, but i dont think the entire market will. I think there will be segments of the market that wont be able to respond very well. I think leaders continue to lead. I think laggards continue to lag. I dont think you picked the bottom in energy. Today is a classic example. You have the u. S. Dollar down. Pulling back, okay,. 8 . Oil is lower. I think thats telling you all you need to know. I think theyre going higher. Certain segments, unfortunately, got weight on them right now. We think rates are going to go up sooner rather than later now. Do you sell bonds . Well, no. In fact, the bond markets basically have done the feds tightening for them. Ever since that employment number came out, you know, treasuries have been on a tear higher. Now, whats interesting is that really if you look at the shape of the yield curve and on the short end of the curve, tightening started four years ago. Its really that tenyear and then the 30year thats still an out liar. Now to the latest in the paris terror attacks. French authorities confirming that the alleged mastermind of those attacks was killed in yesterdays raid in saintdenis. Michelle Caruso Cabrera live for us again today. Michelle. Scott, were going play for you a new piece of videotape that has surfaced, which was recorded during that raid. Its pretty compelling. We now know that raid, as you said, killed the alleged mastermind or the alleged architect of friday neats attacks, and the piece of audiotape that were going to play for you is recorded by a neighbor who was there. It is a recording between the female suicide bomber before she blew herself up and one of the members of the swat team. Take a listen. Once again, you are hear the tremendous amount of gunfire, and can you hear this womans voice wrosh who is she . Three Police Officials telling the Associated Press shes 27yearold abdel aimmediate abaaouds cousin. Sne say they have three Police Officials who have confirmed this. This was obtain bid french broadcaster, and once again, it was reportedly recorded by a neighbor, and it must have been an incredibly frightening moment for that person as they listened this unfolding and the tremendous amount of gunfire that was going on. That is for certain. Michelle Caruso Cabrera. One stock, one ceo. Jack dorsey is now doing double duty with twitter and square. Knee both rallying today, but which is a better bet for your money . The largest u. S. Health insurer is getting cold feet about the Affordable Care act. What United Health is warning about the insurance exchanges means for the sector, and the retail disaster of the day. Best buy tumbling after its Earnings Report. Top Portfolio Manager from citadel joins us with his take on the retail rut. Youre watching cnbc first in business worldwide. And then santas workers zapped it right to our house. And thats how they got it here. Cool. The magic of the season is here at the lexus december to remember sales event. This is the pursuit of perfection. Nobodys hurt, but there will you totalstill be pain. New car. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. Learn more by calling switch to Liberty Mutual and you can save up to 509. Call for a free quote today. See Car Insurance in a whole new light. Liberty mutual insurance. Two big ipos raising questions about the health of that market. Both square and match pricing below what some had expected. John chu with more on how the stocks are currently trading. Dom. Might be helping them out a little bit. Shares of swear. First of all, surging its debut here. The stocks now up about 43 . Can you see there, it did go as high as 64 to the up side. 14. 78 after opening at 11. 20. That was below the expected range of 11 to 13. Shares are trading on the new york stock exchange. Heavy volume as well about 34 million shares have trade sod far. That means the entire sale in the ipo has changed hands already. Meanwhile, dating site operator mamp group also making its trading debut. You can see here up by 13 . The owner of dating sites like tinder, and okq at 12 a share. The lower end of that expected range. It was 12 to 14 expected. The stock open for trading 13. 550. The shares are trading under the ticker ntch. Heavier trading there as well. Again, a lot of ipo at least attention being paid certainly to these two stocks. Scott, back to you. Dom, thanks. Seems like the share ipo was priced well. They priced it well, but it is a down round, and by that i mean, of course, the previously they had priced 12 a share before coming into this one. They have to make that up. They promised they dont have to actually, but they promised in the last offering that they would make it up to anybody that participated in 12. In other words, a down round like this only meaning that if it was actually priced higher, you wouldnt be seeing where you are seeing now. Its more or less Financial Engineering to get you to this point where you basically brought out a very thin float and created a lot more demand. Swrak has done a great job, so im not putting him down. I would buy the stock. I hope to, judge. Right now i have pay pal in a number of our accounts because like carl icahn, i think that is one of the big winners in the payment space. You debt get any allocation on the ipo. For clients we did. I know this was this thin. It was way over subscribed. You got maybe one share for every 100 you wanted. So what, if anything,s the right price to buy stock today . Well, i dont know if you get another chance to get back in right around 11, but, i mean you wouldnt buy 13. No, i wouldnt. Im going to give it some time to see if we can get it in at 11. Its a business that i dont really understand well enough to understand why im going to be involved in this. Some of the profit losses, maybe. I mean, you know Rocket Science stwrsh. Well, it is sort of. It is like holding up a crucifix to dracula for these guys because this is absolute that was a horrible leadin for this match to have basically interactive and trying to bring the companies out after Ashley Madison is out there with all these fake sxkts things. Now, people have not said that about match. It does raise concerns and so thats one of the reasons i think that its not as high. I like the idea of sorry, joe, but square. When you are looking at square, though, the problem i have with it, compared to what john is saying is competition. We just heard about it yesterday. You know, when hardib was here talking about the different motifs. That is such a competitive world right now that whole world of they have a place within it, right . They have a place within it, but theres so much competition. How much is that going to drive things down . How will the margins be Going Forward is this. Both of these companies have lots of competition. The only difference is one has fat profit margins. The other has no profitability at all. I mean, im not sure what the compelling thesis is to invest in either of them. I mean, im with you. I think its kind of an unsavory business. No thank you. You have limited visibility with ipos. You need to hear multiple quarters of earnings. Kind of what you got from zucker berg and facebook when they had the turnaround. You dont have the visibility. You dont know exactly what youre buying. You think about match. What do you think of . You think about barry dillon. That gets you more excited about potentially buying because youre investing along with barry. He has a long track record. Can he run both successfully. Our guys pushed him in the interview. He didnt give were, but were used to that at this point. Ed paultd space and the fact that this is burning money in the payments area, yes, everybody the user square tebdz to love it. Not just like it. Love it. I like using it as somebody who charges a lot of tough tough stuff. However, theyre not making any money. Whats the road when pay pal and all the others are out there. P that willing dorsey is taking another Company Public and its going to deserve a lot of his time. He suggests i can run between buildings and stop at coffee and use my you asked that question a while back, and my answer would be you wait a couple of quarters for twitter and see if twitter, a, starts to get any kind of havent we waited . Yes, we have, but lets remember, we just brought in dorsey again to take over as the ceo. He was, you know, in a position a while ago, came back, and here he is. I think you have a little bit of time for him to actually get his feet back into this company the right way to be able to get this monotization working in terms of growth. The monthly active users. Its been stuck at 300,000 for 300 million for how long now . That number has to change. That number has to change. It might take a couple of quarters for jack sitting that n that ceo seat to get that turned around. Theres nothing exciting in the earnings yet. Pete nails it. What have they told you at twitter and in Earnings Report that gets you excited that you see visibility in terms of prochts accelerating. Exciting things going on. Great. Those are ideas. Ideas, right . Those things arent out there yet. What about the users . They cant figure out how to grow their users. Thats the bottom line. You are right. Coming up, the unAffordable Care act. Thats what United Health care is claiming after cutting its guidance. Sending the insurance stock and others in that space reeling. Well explain what it means for your money. Plus, how one of the most respected hedge funds in the business is investing amid the retail selloff. Well talk consumer stocks with a Portfolio Manager inside citadel. A place tv cameras dont often go. We got one there today. Kate kelly is coming up. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. 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And theres a range of plans to choose from, depending on you needs and your budget. So if youre turning 65 soon, call now and get started. Because the time to think about tomorrow. Is today. Go long. A shocker. Thats what our own jim came cramer is calling united hblgs disappointing outlook today. The company cutting its guidance blaming the Affordable Care act and saying it may leave the exchanges at the heart of the president S Health Care plan. For more on how investors should be thinking about todays news, lets bring in steve weiss. He is one of our experts, of course, on the sector. Steve, welcome. Does this force you to rethink how you would invest in any of the stocks in the insurance space . Well, i think it does, but actually it may force you to think about getting back into the hospital at this point. Let me just put numbers to whats going on here. This has been jim is right. Its shocking that you nh is doing at this point. Of course, the point is he makes that point because they just guided higher in july. Right. Thats whats shocking about it. The hospitals actually led you to because of this and because of the aca. What happened was when the Affordable Care act first started, you saw a big pickup in interest. That was a criticism when it came into being because itS Health Care socialism. The people that couldnt afford care before or were uninsurable, now were taking our health care whereas the one thats that dont need it initially took it because why not . Its fairly inexpensive. Now theyre saying i dont need it. They would rather pay the penalty. The penalty for not taking Health Care Insurance out is a cost to the bronze plan. If you took a bronze plan, its basically going to cost you 300 a month if you are in new jersey. Plus out of pocket can go up to 7,000. Theyre paying the 300. Thats why theyre not doing it. Thats why people are excited. You are kind of our man on the Hedge Fund Perspective here. Its become particularly for the hospitals. The hery in the hospitals was that, okay, the government is not going to guarantee all the bad debt. Thats now changed. You have a lot of uninsured. In terms of the in terms of the Health Insurers, you are seeing mass consolidation. Part of this may let the governments go ahead and allow them to consolidate on one hand, but thats going to drive prices up. They need those economies to scale. Lets just see those consolidations continue, you dont want to be there yet. More than that, you also have allergan thats down today because of what may happen with off shore being able to bbz hit in the milgtsz of the month, and you have to give 45 days notice. You will continue to see selling. Probably into next year. It will be a hot campaign issue. Well catch you back on the set soon. Thanks. Thanks so much. Live from citadel, we go to chicago for a rare interview with a Portfolio Manager at the hedge fund. More halftime coming up next. Hi watson. Annabelle, your birthday is tomorrow. Im turning seven. What did you ask for . A princess. And a pony. You like things that begin with p. I like pink frosting too. Will you have a cake . Yeah. I was too sick to have one last year. The data your doctor shared shows you are healthy. Are you a doctor . No. I help doctors identify cancer treatments. I want to be a doctor someday. I can help with that too. Watson, i like you. Welcome back to the halftime report. Atlanta fed president Dennis Lockhart making a speech right now saying im comfortable with moving off of the zero rate soon. Lockhart says it is appropriate to begin a new policy phase. Does it nail down september . Doesnt say specifically. He says the economy is on a reasonably solid trajectory, and he expects once rates rise there to be gradual rate rise tlafz. He says he has thought about the low inflation risk. He has thought about global risk. He has thought about the issue of resource slack. He does not find those arguments persuasive. He says the rate hike should affirm that the Economic Outlook is positive. I guess i go back to cot now. Scott, you can capture the centrist. Lockhart had been on board with the rate hike. Then had his doubts after the flareup in august with markets. Now back on board with what looks like a december rate hike. Scotts. Steve, thanks. Conceal discuss that in a moment. First, sue herrera has the latest headlines. Scott, thank you very much. Heres your cnbc news update this hour. A police raid is underway in the town about 230 miles north of paris, about 150 miles. Its near the border of belgium. There was an explosion in order to open the door of a home there. It is not yet clear, though, whether that raid is linked to the paris attacks. The house debating a bill that will make it more difficult for Syrian Refugees to enter the country. Yesterday president obama vowed to veto the bill. A vote is expected later this afternoon. Democratic president ial candidate Hillary Clinton is laying out her plan to fight the islamic state. In a speech in new york she says the goal is not to deter isis, but to defeat and destroy it. She says the u. S. Should encourage arab nations in the to defight the militants. County Officials Say a Police Officer who was shot to death last night was targeted. Officer Richard Galvez was in his personal car at the Downtown PoliceDepartment Parking lot where two gunmen opened fire. There had been no arrests so far. Youre uptodate. That is the news update, scott. Back to you. Sue, thanks. Its not often that investors get a view inside the Secretive Hedge Fund citadel. Its all changing today, though. Our kate kelly live in chicago at the firms headquarters where she joined exclusively today by one of 25 billion funds top Portfolio Managers Jack Woodruff. Take it away. Hey, thank you so much, scott. As you said, whoer here in chicago at the risk center of citadels headquarters, and im here with Jack Woodruff who is a consumer Portfolio Manager at surveyor capital, which is part of the overall equities platform. Jack, welcome. Thank you for doing this. Thanks for having me. Welcome to citadel. Thank you very much. You guys have been very hospitable. Lets start right off with sort of a macroview if we may. I know that you focus on consumers which has a lot of subcategories the way you organize, but give me your high level view on the u. S. Markets. Is the fouryear equity rally finally starting to fizzle here . Well, we really focus on the stories within our consumer book or, you know, other sort of areas that we also participate in. You know, citadel has 70 equities teams. We cover 3,500 stocks. We dont spend a lot of time thinking about like the general view of the market. Were more focused on our stories. That being said, theres a few things within the market that ive got my eye on. You know, first is obviously the fed. Were concerned about the direction of rates and how thats going to impact affects. That will have an impact on earnings. Were also worried about the level of corporate profits. In 2007 and 2008 as we enter the financial crisis, these companies had a lot of fat on these income statements, and eight years later with earnings being pretty strong over this time, we dont think theres that much fat to cut. If we already had any kind of demand, speed bump, or shock or even a recession, which we dont believe is going imminent, we do think that would cause real down side to earnings. If anything, corporate earnings are starting to contract just a hair for the First Time Since twooirn, right . Were starting to wonder if the valuations are going to come in here. Well, its been interesting. I mean, the breadth of the market is actually quite weak. Its only a few names that are really leading the indexes, so if you actually look like underneath the surface, the market is its not as pretty. How healthy and confident is the consumer right now . Thats something you obviously focus predominantly on. Right, the consumer has been actually pretty food. Were pretty confident in, you know, what were seeing. The big picture macroindicator that is we focus on, employment, wages, housing, confidence, theyre all moving in the right direction. But the money in the wallet, its going in a different direction than it would have five, ten years ago. Weve noticed a pretty big shift in spending trends just in the last few years. One thing that weve noticed is. Being improved. Whats your overall take . Well, they set the bar pretty low going into earnings. Last month walmart had their analysts day, and because of the fact that they have been overearning for the last several years, they havent really invested in gross margins. They havent really invested in their people. Their sgna has been flat for, gosh, in the u. S. I want to say in the last seven or eight years. Define sgna. Its really just the operating expenses of the retailer. They havent really made the necessary investments they needed make on their online, and theyve really lost their price advantage over the rest. Time will tell if these investments leave them out of the doldrums, but they have a lot of wood to chop. They have shown that they can make a profit. Are they overvalued, though, here . Its hard to say. Amazon gave us much more insight into the aws business, and i think that the profitability and the growth metrics of this business were far in excess of what anyone was really anticipating, and that has been a pretty big part of the outperformance of the stock. Within, you know, their ecommerce business, the trends are good. They continue to take share. The margins have been strong, and, you know, prime is a real differentiator in this fight for Consumer Market share. In terms of pockets of strength, how do you like athleisure, and are there any names that you would single out in that as stronger than others . It seems like pure speculation that under armour might take over lulu . Do you expect to see more of that chatter . Athleisure is a strong category, and it goes back to what i was talking about with health and wellness, and its one of the areas where consumer dollars are going. People are working out more. Youve got nike is doing fantastic. Lulu lemon, their stock has been under pressure, but it has a lot more to do with lulu lemon. If underarmour wanted to make an acquisition, its stock is in pretty good currency right now. Its something to watch. I have no opinion on whether or not theres anything out there. You dont tend to put too much stock into Holiday Retail sales. Why not is this. At this point everything has sort of been said. You know, theres a lot of guys that will come out and talk about promos in the market and all these things. These guys dont plan these things a were in advance. Were much more focused on 2016. We are interested to see how trends play out in the holiday and whether or not any of those trends lead us into adjusting what we think will happen for 2016. Jack woodruff, thank you so much for being here. Scott, back to you. News alert now on intel. That companys guidance, dom chu, whats the the Investor Outlook here, theyre saying they expect full year 2016 sales growth to be in mid single digits. Thats solid compared to what analysts were looking for in terms of a 4 gain in revenues for the full year of 2016. Thats helping things. Also helping matters out, scott, the idea that intel says that in the starting of the First Quarter 2016 they will raise their Quarterly Dividend to 22 cents per share. It was 24 cents before. A dif debbed hike. Perhaps well call it solid Sales Outlook here for full year 2016 helping to put those shares up by 2. 5 , 3 . Intel shares currently the best performing percentage gainer in the dow and the third biggest contributor to todays gains. Highs of the day. Right now in intel we talked about certain areas of the market. We talked at the top of the show about looking at the financials and looking at technology. Take a look at microsoft, for instance, right now as well. One of the names thats pushing towards 52week highs. Obviously this big bump on this positive coverage in terms of the outlook for 2016. You can understand why those areas is where people are putting those money and people are going towards some of high flyers. Be good to get nonfang x moving, right . Im with you. Facebook, apple. Amazon. Netflix. Alphabet. Yeah. Google. Yeah. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Coming up at the top of the hour on power lunch a big blow for obama care. One of the nations Biggest Health insurers threatens to pull out of the public exchanges. What now of the health care . Russian stocks are up more than 10 this year. Is it time to be looking at the emerging markets once again . This is a shocking story that you need to hear. Isis setting up a 24hour help desk for terrorists. How farreaching is it . Also, the role of well discuss all that. Make sure you join us at the top of the hour. Back to you. Thanks. Another bad day for crude. Oil sliding more than 1 . Sima and the futures now have more. Hi, sima. Once again, were seeing oil futures struggle to hold at 40 level. Ultimately i think we have brokenness in the market so to speak. Volatility index spiked above the 45 level ive been talking about. I think were starting to see a little bit of disjuncture taking place between supply and demand, which ultimately a longer term i think sends oil to about 36, 37. Temporarily, yeah, we can get a bounce off of 40. What stinz would you look for to tell you where oil is headed from here. Well, the first thing i would actually look at is gasoline. Crude oil and fwas lean today going in absolutely different directions. If you look at the gasoline market, monday was a really fascinating day. Gasoline, we got a key reversal in that gasoline futures made a contract low, and then rallied through the course of the day about 4 to finish higher on the day. Thats really important. Continuing today, its gasoline higher, crude oil lower. That makes me wonder if we havent seen the bottom in crude oil. Interesting trend to watch. Get more from scott and brooirn on our live show where tom lee will give us his bull call on what the market has in store rash thats live at 1 00 p. M. Eastern. Futures now. Cnbc. Com. Scott. Sima, thanks. Well be there. Keurig Green Mountain following soaring erjz. 62 this were. We have that trade coming up in our blitz and just one week until thanksgiving. Thats why jane wells breaks down the cost of all of the fixings. We look forward to this, jane, every year. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Doc, goldman sachs. Yeah. And take a look at what that means. Just like with apple a day or two ago, judge. You add something to the conviction buy list. They did that yid. Turnover is dramatic. Its already traded about 170 of normal volume. Obviously thats not all goldman. More up side. Wendys or mcdonalds. Wendys. For the next 12 months. Next 12 months. He just qualified. Bonnie. Keurig Green Mountain. Joe. Well, its perculating for one day, but its not going to last. This is nothing more it was okay. It was okay. A little bit of a relief rally. Earnings were not as bad as folks expected. Visibility Going Forward over the coming quarters, i just dont see it. 2. 51. Two pie shells. There was also deflation. A gallon of whole milk is a full 51 cents cheaper than it was a year. Miscellaneous ingredients like condensed milk, coffee, eggs down 30 cents. Whipping cream down 6. Cranberries, peas, relish trays all down a nickel or less. Why cook . Go out and take out a second mortgage, guys, if you plan to go to the old homestand steakhouse in new york. Champagne, ruffltruffles in ins the bird, a diamond engagement ring. Dont eat it. Give it to her and she will be very thankful. Im in. That was dr. J, not surprisingly, jane. Dont eat it. Jane wells, thank you very much. Thats a lot of money thats just going to go to waste, if you know what i mean. Yeah. Yeah. I want to talk to bonnie before we go about part of that note of what i saw that you said yesterday about this potential accident from the fed. But you also make note of m a. Yes. You say theres been a lot of m a but bad m a. What do you mean . A dollar of debt is not the same depending on the final usage. What has us concerned in the credit space, m a activity is up according to deal logic 89 yearoveryear. Only 13 of the credit thats been issued so far this year has been for capital expenditures. Most of its been for doing things that, you know im a bond dealer so i know you stock guys love this, issued dividends, buying back stock. I mean, when you issue debt to build something, to make something, to hire people to generate income to repay the debt, it makes a lot of sense, but this is just dead money. Thats a very worrying concern. Socalled Financial Engineering. Yes. Give it whatever name you like. Its sort of like lets borrow a bunch of money and give it away. Its the corporate version of helicopter ben, i suppose. High yield energy debt, where are you looking forward into 2016. Before you answer that as it relates to emerging markets, is that part of the ripple of an accident that you would see as a result of what the fed may do in december . That the emerging markets which are already having a bit of a tough time could have a worse time whether its currency, debt definitely on the currency side. And again a lot of emerging markets going back to energy are, you know, energy producers, consumers. The energy space is a space that were underweight, and i know that theres been a lot of press lately about hedge funds in particular putting on this big trade and thinking they were buying on the cheap. Just because something is cheap doesnt mean its a deal. Im now seeing some pundits looking for oil to go to 60 a barrel in like 2018. I tell you, theres a huge, huge oversupply and declining demand. Wow, so where do you see oil in 2018 . Like way lower . I mean in 2018 . 2018, do you have that visibility for us . I mean, i get the point youre making here. Youre scoffing at that. This is somebody elses forecast, and, again, what was oil . Over 100 bucks a barrel a year and a half ago. Thats quite the decline. Wr we have to take a quick break. Retailers reporting the rest of the week and set you up for the second half of the day as well. Proud of you, son. Ge a manufacturer. Well thats why i dug this out for you. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. Time now for the second half trades. Got some earnings after the bell today. Ross stores, Williams Sonoma. Who has a thought on Williams Sonoma . Theyve been doing phenomenal over the last couple quarters. When you look at this name. I actually would go back towards ross stores. I like what we heard from tjx. Theyre very, very similar, not exactly the same but very similar. They dont have carol in charge either, but this is a company thats been basically doing very similar in terms of its sales growth, and i think they will once again. I think the earnings i would expect to be very positive. Okay. Before the bell tomorrow, footlocker, abercrombie. I would go footlocker with that one rather than abercrombie. I was just out at mall of america, i didnt see as much traffic in the abercrombie as id like. You were doing some channel checking . Yes. Thats really reliable. Thank you. You did make a move with jci . I did. Bought johnson controls, air conditioning. Been checking up on that, too, as well as for automobiles. Heating and cooling and air conditioning. This one today for my account as well as the portfolio. Best thing to do in fixed income right now is what . Stay diversified. Stay diversified. Whats the most attractive area right now . You know, jeffrey was on the tape talking about a particular breed of investments which i think is very interesting, closed in funds. Certainly theyre trading a the a discount. You have some cushion there because of that in the case of a rate rise, but as a manager with closed in funds that are invested in credit right. A rising rate may hurt your Net Asset Value but it helps Investment Managers reinvest the proceeds at higher levels. Thank you for being here. Power begins right now. Scott, thank you so much. Welcome, everybody, to power lunch along with mandy drury, im tyler mathisen. A big blow for obamacare. One of the nations largest Health Insurers threatens to pull out of the public exchanges. The news taking down health care stocks. What now for the Affordable Health care act a