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Will put a dent into teslas sales. You may be surprised on that one. Strong quarter for home depot, boosted by a resurgent home remolding sector. Is the stock, a buy, sell or a hold. Oldschool debate coming up. First lets check in with sue at the new york stock exchange. Hi, sue . Hi, ty. Good to see you and that big story is a developing one. Jpmorgan expected to sign today a 13 billion agreement with the government to settle claims that it overstate the quality of mortgages to investors during the housing boom. Lets take a look at where the stock has traded, up just over 1 . Kate kelly at jpmorgan headquarters in new york city. Kate, the street anyway, seems to be happy that at least this part of the whole saga may be behind jpmorgan . Yes, were getting close, sue and i think youre right. Investors are cheering the idea of a formal resolution to this although the 13 billion pack has been anticipated for a number of weeks now and, in fact, some portions of it have already been agreed to and announced. Lets give you the breakdown of that. Of the 13 billion, about 4 billion to the fhfa, already disclosed a couple weeks ago. Another 4 billion goes to consumer relief measures. About 2 billion financial penalties expected in connection with Mortgage Securities packaging before the financial crisis. And the balance to go to Credit Unions and various other government officials involved with the probe. Now in terms of consumer relief, this is an interesting piece of the puzzle. So jpmorgan has agreed to exit tend some things that its already doing and also agreed to some new things. Among them are of this 4 billion, theyre going to engage in some Interest Rate reductions, principle forgiveness and mortgage modifications and agree to try to embrace some antiblight steps in cities like detroit and an independent monitor established to see how things are going at the firm in this regard. This is something were seeing a little more of in terms of settlements. There was a similar piece to the sac settlement announced in terms of compliance over there. Finally the question that investors may have and well see this addressed hopefully in an investor call toward the end of the day or as soon as we get the announcement and theres time to digest it with jpmorgan cfo Mary Ann Lake and ceo jamie dimon. Are they adequate kuwaitly reserved and whats next. Jpmorgan added to them, to the tune of 9 billion during the last quarter. Right now, theyve disclosed they have 23 billion overall, sue and that means that they should have a healthy amount left over if and when the 13 billion deal is inked. Analysts on the outside say they could have 8 to 16 billion more even more in mortgage liabilities in the near future. Kate, thank you very much. It will be very interesting to see what those reserves are, indeed, and we await either a news release or as kate mentioned a call later this afternoon with jpmorgan. California has played an active role in that investigation since the beginning and it is out of sacramento where the official word will be anounsds later today where we find jane wells to explain why. Hi, jane . Hi, sue. Yeah, as soon as we get that official word later this morning, were expecting a press conference inside the Federal Building here. Why here . Two reasons. First, the u. S. Attorney for this area, ben wagner, has been at the epicenter of this investigation telling the Sacramento Bee he quote raised had his hand when the Justice Department was putting together a team to investigate jpmorgan. He and his deputies were on the cusp of announcing a case ceo when jamie dimon approached justice. Second geography. Wagners district covers the worst hit areas from the oregon border through the Central Valley down to l. A. County. Wagner says he has made mortgage fraud his offices top white collar priority indicting more than 350 people since 2008. He likens the mortgage fraud in this area to a, quote, tsunami and meantime, of course, jpmorgan took over Washington Mutual in 2008 and many california mortgages that went south came from wamu. According to the state senate here from 08 to 11 more than a million california homes were foreclosed on, one out of every 13 houses and six of the nations hardest hit zip codes are in wagners district, stockton, vallejo and where i am right now in sacramento. So this is a case that hits very much close to home, literally and tyler, when this News Conference happens we will get you the latest. Back to you. Jane, thank you very much. Jane reporting from sacramento for us. With the settlement presumably soon to be behind them, is the worst over for jpmorgan or not . It still faces at least nine other government investigateions so is it worth investigating in . If not which of the financials are. Joining us is Michael Scanlon with management asset management. He runs a 3 billion fund for john hancock which holds over a mill be shares of jpmorgan and also with us on the phone is bank analyst Gerard Cassidy who has an outperform rating on the stock. Michael, let me begin with you. If youre holding a million shares of the stock i assume you are very comfortable in saying this is one step to put these legal troubles behind it and that maybe jpmorgans better days stock wise are ahead . Yeah. Its very true. You know, if you look at the stock year to date its up 28 which is a pretty good year. I think the precedent and track record for the Financial Group is reserve, settle and move forward. Buy the stocks where theyre going, not where theyve been. This puts some of the environmental costs behind them but does not put all of them. How do you justify on behalf of your shareholders opening a stock that presumably is going to admit to some sort of misbehavior maybe even criminality, fraud . Well, theyre settlining it with a financial settlement. Sw jamie dimon has been transparent there are errors along the way, you know. He obviously aggressively is settling this and writing the check and making the concessions to other borrowers in order to put this behind them. It is a kidnapper, concern, reputational hit, where it was trading at a premium, so the stock has suffered the consequences but we like it a lot Going Forward. Gerard, how about you. You have an out perform on this stock. I assume that means from this day forward and maybe from the days behind, youre comfortable buying this stock . Right . Yes, we are. In fact, when you take a look at the core earnings power of Jpmorgan Chase, its about 20 to 25 billion per year. Once they put all of the litigation issues behind them, this company, like our other too big to fail pankss, are probably not going to be permitted to buy other depositor tos or other institutions meaning they will return that capital to shareholders in the future. What about the other investigations that jpmorgan presumably still faces not going to be settled as part of this 13 billion presumed settlement, what about them and could those be tripping points Going Forward . Certainly there are other investigations of Jpmorgan Chase and other Capital Market players, particularly the Foreign Exchange investigation thats under way. And they could trip up the company over the near term. I think thats why when you look at the 23 billion that theyve set aside, theres anticipation that there will be more settlements to come. Let me ask you quickly, gerard, are there any other financials you like better than jpmorgan right now . I would say bank of america for folks looking for pure play on the recovery of the u. S. Bank of america is the way to play them. How about you, michael, do you have a financial you like as much or better than jpmorgan . Our top two financial positions jpmorgan and metlife has been another big winner year to date. We think that story has a long way to go. We appreciate it. We appreciate that very much. Sue, down to you. Ty, to the overall market, were up a little bit or we were a second ago on the Dow Jones Industrial average but some of the stocks that have pushed the dow and the s p 500 to record highs, have been take something hits recently and that brought us to the question of whether this is an oman to an overall market pullback. Dominic chu is taking a look at that part of the story. Hi, dom. Hey sue. There is no crystal ball. If i knew where stocks were going i probably wouldnt be here withes you guys right now, but we did want to show some of the stocks traders have been saying show signs perhaps of weakness ahead and three stocks in particular we wanted to key in on this time around were three pretty well known names. Regeneron the Biotech Pharmaceutical Company and cree, the maker of led lights. It if you take a look at the last 12 months, last year, these have shown healthy gains. You see freescale up about 32 . Regeneron up 60 and cree 63 . Healthy gains for a year. Now over the course of the past quarter to date, thats just the last six weeks or so, weve seen weakness come into these stocks. Theyre starting to roll over a little bit and that may be a sign, say some traders, for a pullback. Take a look at freescale, up 32 year to date but in the last quarter its down about 13 . Again, rolling over a little bit. Regener regeneron, the same thing, down 12. 5 . With cree its down about 8 . So as we take a look at some of these names, traders are always looking for signs of a turning point in the market. One of the signs is whether these types of stocks that have had very healthy gains, start to show some signs of reversal and thats the reason why some traders, at least are a bit concerned. Back over to you. All right. Dom, thank you very much. Lets talk about this with kenny polcari, director of floor operations with oneill securities. And to doms point, they have had a pullback, but to your point, theyre still up 30 or 50 . 60 or 63 . It makes perfect sense if Asset Managers are looking to raise some cash as the market is up 26 or 27 year to date and looking to raise cash and take the cash and funnel it into other things, the underperformers, it makes perfect sense youll take money out of the names that have been the best performers. Youre not going to take money out of the names underperforming if you still believe in that story. Youre taking money off the table and redeploying it. How does the market feel to you overall . We bumped our head against the psychologically important levels and then backed off a little bit. Its holding up nicely today. Why not see a continuation of the selloff . 1800, 16,000, theyre just round numbers. Theyre much more psychological. Yesterday what you saw there wasnt an explosion in volume to the upside so it traded there, it hit there, felt like it had some resistance and then you had the commentary from carl icahn yesterday which caused them to go crazy. The Asset Managers arent reacting to carl icahn. What about the margin debt . Thats one thing that does worry me as the video investor starts to get into this market, one of the things you watch for is how much people are borrowing to buy stock . Weve talked about that. Its almost near record highs if not at record highs. That is concerning because what all that says is people are having us feeling once again stocks can never go down so bore roy everything and bet the house. Probably not the smartest thing to do. It would tend to bring some caution, but yet overall, i think the market still feels healthy. Next year is going to be a good year. Talking about the global recovery, feels like it. On that note were going to leave it on an up note. Were leaving it there. Up to you. Thanks, guys. Tesla under fire literally and figuratively. The national Highway Traffic Administration has launched an investigation into the luxury electric sports car maker after it reported three car fires over the past six weeks. The stock down about 33 since it hit its highs of 194 a share on september 30th. Right now as you see, at 125. 12 its up strongly today. Will the investigation put a dent into future sales . Phil lebeau to answer that question for us at the auto show in los angeles. Phil . Hi, tyler. Whats interesting is were hearing a lot from elon musk on twitter today. Well give you a taste of that in a little bit. Lets focus on what this investigation regarding the model s is about. Its focusing on two battery fires here in the u. S. One last month just outside of seattle, washington, thats where this video is from, and another one earlier this month in tennessee. Both of those fires are the focus of the investigation. By the way, nobody was hurt or killed in either of those fires, of which elon musk referenced on twitter today, hes been tweeting out about the fact that they are now the focus of an investigati investigation. He writes what makes this incredibly unjust is that the model s to date has the best Safety Record of any car on the road an then puts in parentheses, no injuries or deaths ever. It is still unclear whether this investigation will actually lead to a recall. Its not uncommon that they will do an investigation and then at the end determine you know what, no need for a recall here. On the other hand, at lot of these dayss cases end up with a recall. Any fixes required to the model s will be done free of charge. This is one of those stories, tyler, hearing a lot from elon musk on social media about the model s and his belief that it is a safe vehicle. Very interesting. Ironically you are at that l. A. Auto show where audi is set to unveil its First Venture into electric cars and a 3 sport pack. The marks for the electric vehicles has not been particularly sprightly. Why does audi get in now . Why do they think their model might win where others have barely scratched the surface . Couple things to keep in mind. Theyve been working on this a number of years. You just cant hit the brakes right now. Second of all audi believes that when the a 3e goes on sale in 2015 it will be well received. Heres the president of america for audi talking about the belief that the demand for electric vehicles will still be there. I think its a big tempest in a tea pot. I think its going to be a lot of noise but the consumers are buying hybrids, they are buying plugin hybrids and believe in this technology. Whether or not theres a short blip you can debate it. Longterm sustainable its going to be there. And hes talking about whether or not people will be concerned following the investigation of the model s. By the way, the a 3e tron audis first plugin hybrid goes on sale in 2015. First 20 miles all electric. Look at shares of volkswagen. Keep in mind all of the automakers if they arent already develop something type of an electric vehicle, whether a hybrid or pure electric, they are all working on it and those models are coming. Audis in 015. Thank you very much. Phil lebeau reporting from l. A. Now to dominic chu for a market flash. Hi. Hey tyler. Shares of Jacobs Engineering taking a hit near session lows after the technical professional construction and Mining Services Company Reported earnings that fell short of analyst estimates, but jacobs order backlog did grow by over 8 to 17 be there. The company also said it sees full year fiscal year earnings in 2014 between 3. 35 and 3. 90 in line with expectations. It does see weakness, sue, in the current quarter. Back to you. Thank you very much. So, we focus on microsoft. Who will replace Steve Ballmer at the company . Word has it the decision would come within days. Were live at the companys annual Shareholders Meeting where theyre down to a short list of candidates including one that has leapfrogged to the top of the least. We name names right after a quick break. Tdd 18003452550 searching for trade ideas that spark your curiosity tdd 18003452550 can take you in many directions. Tdd 18003452550 you read this. Watch that. Tdd 18003452550 you look for whats next. Tdd 18003452550 at schwab, we can help turn inspiration into action tdd 18003452550 boost your trading iq with the help of tdd 18003452550 our live online workshops tdd 18003452550 like identifying market trends. Tdd 18003452550 now, earn 300 commissionfree online trades. Call 18886282419 or go to schwab. Com trading to learn how. 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Within a year the stock is up about 15 since the announcement. Josh lipton is at the Shareholders Meeting in bellview, washington. How close is the board now to naming ballmers successor . Yeah, tyler, bill gates at the Shareholder Meeting. He gave us no guidance as it to when exactly they would select that new ceo. He simply said the process was going smoothly. He did, though, seem to choke up when talking about his friend, Steve Ballmer. Weve got a commitment to make sure that the next ceo is the right person for the right time for the company we both love and our commitment that microsoft will succeed as a company that makes the world a better place. Reporter microsoft did grow under ballmer. Revenue jumped from 23 billion to 78 billion, but critics say he also missed big tech trends like mobile and social. The stock is big this year, down about 25 under his watch. Word mentioned ford ceo alan mu laleh, steven elom, curn turner, and nadella the executive vp of cloud and enterprise. Nadella knows the Cloud Business inside and out. At the Shareholder Meeting today, microsoft did emphasize, microsoft at a crossroads here. The Company Repositioning and redefining itself for this postpc era when it continues cover the Shareholder Meeting and a report throughout the afternoon. Sue. Were breaking down the busiest shopping days for you. Up next Mary Thompson with the result of a survey that takes us sector by sector. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Black friday is the busiest days of the year but december 21st the busiest day for jewelers. A new survey by mastercard breaking down the busiest shopping days sector by sector. Interesting stuff. Later for luxury. This would be guys panicking. Something like that. Later for luxury. Thats how the shopping season shapes up for jewelers and our highend retailers which tracks spending made with cash, checks and credit cards. The busiest kay for jewelry is Super Saturday, december 21st before christmas followed by the 23rd. They tend to wait to the last minute giving a prechristmas lift to main street. This benefits Small Business because 83 of jewelry sales happen in independent jewelers and not in the chains. A late thanksgiving means there is a week less to shop this Holiday Season so to pull in the shoppers, apparel retailers act first with the discounts. Their busiest day black friday, Super Saturday and then december 14th as they look to move inventory quickly after a lackluster year of sales. Sales for electronics are expected to be down because of discounting but like Jewelry Electronics tend to be last minute purchases most happening on Super Saturday. This year could be different because of the new gadgets and games. This year we see because of the new launches of the number of products that i think black friday will actually overtake that from what historically it was last year. It is very driven by new games, new consoles and the like. And just a reminder busiest days in all, only 35 plus days left until christmas. 35 days, ten hours, i think. Thats what our clock shows. Ill probably be there on the 23rd. Thank you very much. Sue down, to you. Thank you, guys. Lets get the trading action here. Bob pisani joins me on the floor of the nyse. Down about 2 points, now down 14, 15. Trading in a narrow range about 60 points on the dow. Down just a little bit as we have been sitting here. Dont see anything on the wires. Ill check that. The key point, theres very little room for error on the upside. The risk to the downside. Let me put up, for example, i want to show the Cloud Computing stocks. Those reported, they did okay on numbers, but their guidance was a tad below expectations. So salesforce. Com is down and the Cloud Computing companies to the downside, theyre all to the downside. And well put up more of those later on. 3d printers, put these up, i dont see any news here. These were high beta stocks, had tremendous runs throughout the year, and this group did not get hit when the high beta stocks get hit a few weeks ago. I dont see any news thats obvious but im checking around. This is one of those high beta names. A drop thats a lot. They never really dropped and the other names were dropping. Exchanges have had a good day. Intercontinental, first Analyst Meeting since the new york stock exchange. They updated a little bit. Theyre going to spin off, do an ipo probably in the summer but all the exchanges are up. Housing related stocks doing well. Home depot. Best buy did okay, but they talk about a highly promotional time and those box stores, no matter what you say, best buy has had a good run over 30 this year. Its still a tough environment. Imagine selling on amazon you can change the price instantaneously on amazon and those guys they dont have the luxury. They will match. Thanks. They have done great this year. Lets go uptown. Sheila dharmarajan following the movers for us at the nasdaq. We spent the morning wavering between the gains and losses but we are at session lows, the nasdaq 100 and composite down by. 3 . Taking a look at the biggest loser, altera, a chip company, after Goldman Sachs issuing a wait on the Semiconductor Segment as well. Adp the winner today, after evercorp its price target on the stock. Josh was talking about microsoft and as this investor day is under way we are seeing the stock at flat levels. Jamie Capital Markets out with a note saying it expects the stock will be languishing at the current level. Tesla, that stock up about 4. 5 , finding borers after a formal investigation into the model s fires is under way. Back to you. Thank you so much. To gold. Gold prices ares just getting ready to close. Jackie deangelis is tracking the action for us at the nymex. Hi, jackie. Good afternoon, sue. Gold prices slightly higher on the day. Traders a little bit cautious today ahead of those fed minutes released tomorrow in the october meeting. Theyre not really expecting that much to change. Theyre expecting the policy to stay the same. No taper talk. Some of the traders are saying they would be buyers of gold tomorrow, around 13. 10. Those are the levels to watch. Were trading under 1275. And weve held that level for most of the day. Meantime i also want to highlight copper today as well. Making some moves that youve got a weaker dollar in terms of copper and also have some optimism in terms of china. You would expect both of those factors to really boost copper up and that has some traders wondering if this isnt going to be sort of a damppenning side for the stock market. Keep an eye on copper. Back to you. We sure will, thank you. Rick santelli now at the cme and were bumping up against 2. 70 again in the tenyear. You pointed out that shouldnt be a price. No. As a matter of fact bumping up against 270 was an issue, i would say that all those black and blue marks, well dont worry about them because the real key isnt 270. To many the real key is watching that fiveyear at a yield of about just shy of 140. Now, if you look at intraday chart, up a couple basis points. Last four sessions no more than three basis points away from 270. The chart to october 1st through the 10. Look at the fives. Theres your curve, steepening which isnt happening so much today. Thats why the fiveyear is key. Want to see a selloff the five year back above 140. October 1st the dollar index looked like the ten yooert way its supposed to look. Back to you. Thank you very much. Strong quarter for home depot. Up by a resurgence in home remodeling. So is the stock a buy, a sell or hold . Were going to get an oldfashioned yes, no, maybe debate when we come back. The American Dream is of a better future, a confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. Welcome back to power lunch. The troubled healthcare. Gov it continuing to be the focus on capitol hill during a hearing this morning Committee Members grilled the centers for medicaid and medicare about security and redness issues with the site and current state of repairs during which he admitted one of the key parts of the process is actually still being built. Listen to this exchange which representative Cory Gardener of colorado. How much do we have to build today . What do we need to build, 50 , 40 , 30 . I think its an approximation, were probably sitting between 60 and 70 because we still have to build 60 or 70 that needs to be built still . Because we still have to build the Payment Systems to make payments to issuers in january. Let me get this correct. 60 to 70 of healthcare. Gov needs to be built . Its not healthcare. Gov. Its the federally facilitated marketplace. The entire system that the American People are being required to rely upon. That part healthcare. Gov the online application, verification compare getting enrolled, generating a transaction thats 100 there. What im talking about the entire system is 60 to 70 away from being complete . Theres the back office systems, accounting systems, the Payment Systems. In other words, the billing Payment Systems the back end weve been talking about all the problems on the front end and with insurers getting information about people who are enrolled but the billing system is still under construction. Ive put in a call about this to the white house and to cmf. Had theyve yet to get back with more clarification. 2 30 this afternoon is the daily conference call. This will likely come up during that update. Back to you, sue. I think it would. Thanks. Keep us posted. Home depot beating wall street expectations for its Third Quarter and raising full year forecast. Shares of the number one Home Improvement retailer up big in todays trading session up about 1. 25 rising more than 30 this year. Boosting their numbers rebound in home remodeling. Diana olick is in washington with that angle of the story for us. Hi, diana. Hi, sue. Thats right. You know, the remodeling resurgence began in 2009 with investor doing cosmetic fixes to foreclosures they wanted to rent out. Regular homeowners are back in the game and doing more expensive and expansive work. Home remodeling jumped 14 in september from a year ago, that according to build facts. Projects over 10,000 are surging while smaller projects are not quite as strong. Thats returning home equity and returning confidence and plays right into a brand new website that goes ultra local letting you see inside your neighbors renovations. You really know who your neighbors use. We can show you the products near you. Youre not doing projects that happen all the way around the country or millions of dollars that are completely out of your price range. Busy building his own new house. Put in your skip code, which contracts, architects and plumbers are working in your areas, see inside some of your neighbors projects. They have to give their concept. Dont give their names or exact addresses. Like getting neighborhood word of mouth without having to talk to your neighbors. We really took, you know, a year, more than a year, to aggregate 1. 5 million professionals and the 90 million projects theyve done, inside into 2 trillion spent on homes across the country on 85 million homes across the country. Now, porch. Com is going up against sites like house and pinterest and diy network and, of course, the ceo is already talking about partnerships with potential retailers. Theres lots more online. Realty check. Cnbc. Com. All right. Go stand in the sup sun and get warm in washington. Time to buy home depot or has the stock had hit a near term peak. A debate with chris, jpmorgan, says buy the stock while laura, says hold right now. Chris, let me let you make the case first and foremost to buy the stock at this elevated price. Absolutely. Were still very early on in that remodel cycle. The prices going up are driving a very strong balance of traffic growth and ticket growth. Tickets above 900 up double digitses. If you look back in terms of share of wallet, home depot share of wallet, Home Improvement category is still down 15 from average levels and this xs out the peak in with 2005 and 2006. Theyre driving a lot of Margin Expansion and because theyll funnel that excess cash to the buyback, we think they continue to grow earnings about 20 next year. Laura, make the case as to why youre Comfortable Holding the stock but not adding to it . Sure. Theres nothing fundamentally wrong with home depot. 7 samestore sales number is great today. Because were trying to discount the future, not the past, we think theyre going to have a tough time lapping strong results when we hit into next spring. The growth has been phenomenal. Theyre in their fourth year of comp growth. Next year the fifth. We dont expect additional acceleration off of a very strong 2013. Why dont you respond to that, chris. I didnt a little surprised that the share of wallet, i get, really another way of saying market share in this business, is lower than its been . Well, what happened was when prices were going down, you got sustained negative comps for three to four years. And thats the consumer was no longer investing in their household. Now that prices are coming back up the consumers feeling more comfortable spending so and as a result, theyre putting more money into their homes and as prices rise that feeds on itself and theyour willingness spend more goes up. Retailer momentum stocks and i think as long as we can see home depot putting up 4 comps for the next couple years, which would not even get them back to that normalized slayer of the consumer wallet, the stock will it continue to creep higher by the pace of Earnings Growth which as weve talked about, we think its laura, is there another stock in this world of builders remodelers, retailers, that you like better . We still really like lumber liquidators. Talk about bracing the momentum theyre more tied to big ticket housing related spending. We think theyre gaining share. We think their margins have lots of room to move higher. We think a small cap Growth Company that can double its store count is just a little more attractive than home depot at 2,000 plus stores. Thank you very much for making your cases. We appreciate it and hope that our viewers benefitted from your insights. Check out whats on tap for the rest of the week as we continue our series of bull and bear on retail. Tomorrow, jc penney, thursday Abercrombie Fitch and friday the gap, all with earnings this week all three have very interesting stories. Sue . Indeed they do, ty. One week ago that christies held the 691 million art aukship. Remember this . Its the Francis Bacon triptych of lucy and freud which sold for 142 million. Well tell you who the suspected buyer is next. Power lunch returns in two minutes. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. No two people have the same financial goals. Pnc works with you to understand yours and help plan for your retirement. Visit a branch or call now for your personal retirement review. Welcome back to power lunch. Im kate kelly standing outside jpmorgan in midtown manhattan with developing news on their expected settlement with the Justice Department. Weve gotten word from the new York Attorney general eric snydermans office that he will be had holding a press conference at 2 15 to discuss his involvement in the jpmorgan settlement. Expected any time now. Now were still awaiting word from washington, d. C. , and an official set of language on what the settlement will entail but we expect it to be 13 million. Resolving civil claims with jpmorgans handling of Mortgage Backed securities before the financial crisis and more both from Eric Schneiderman and u. S. Attorney ben wagner in the sacramento area. Eyes on both and bring you updates as soon as we get them along with the press release out of washington. Thank you very much. Ill pick it up. Rising Student Loan Debt is taking its toll on mill len yal savings. Graduate debt on average will be 35,000 and after paid off most will have under 25,02 2500 in Retirement Savings according to a website called nerd wallet. Com. If they want to retire by 67 they need to contribute at least 10 to the 401 k , 10 of income. Most are saving well below that according to fidelity. It appears these millennials are not likely to retire until 107. No until 73. The silver lining, folks, a bright work survey found millennials employer plans will provide almost 15 , double of those reaching retirement today. Lets hope theyre correct. Lets week at christies the triptych of lucian and fraud made auction hospital when it sold on behalf of an unidentified client. Who is that buyer . Shrouded in secracy until now. The New York Post reports a member of qatars royal family, the emirs sister was the buyer. Art review named her the most powerful figure in the art world. Perhaps no surprise given the family spends a billion dollars plus each year on art. We spoke to christies and aqua vel la va. Kristi christies told us it was all speculation. And aqua vel la would like to decline comment for now. Detroit isnt the only u. S. City in trouble. A handful of cities in Critical Condition and scott cohen is in chicago today. They have a list of problems there, scott. And tops on that list is pensions. You cant do a report on the Critical Condition of American Cities without looking at a pension crisis that could be in the trillions of dollars and you cant do that story without being right here in chicago. An epic battle between the mayor and unions. The story coming up after a quick break on power lunch. Coming up on street signs at the top of this hour, boring is the new sexy. Some of the high flyers are hitting as of late, we have dominic chu on the case. Also the retailers to beat this Holiday Season and some of the biggest names in Real Estate Investment will join us on our show. What are they seeing we need to know. Americas cities account for 85 of the gdp with many places in Critical Conditions. All this week were looking at the reasons why highlighting one city and one problem. Today a proud city on the great lakes is pushed to the breaking point by pensions. Senior correspondent scott cohen is live in the windy city of chicago. Over to you. My hometown, about 300 miles from detroit and this is picture postcard chicago, the magnificent mile behind me, the Chicago River in front of me. That doesnt tell the full story. Chicago likes to think of itself as a worldclass city. But it also has a world of problems. The big story the Mass Shootings in chicago. Reporter chicago is the murder capital of america. 500 last year, and this year isnt turning out much better. Sn who was you to take her fr me . Reporter gun violence is epidemic. It has happened again an innocent child is shot, this time at a park while celebrating the fourth of july. Reporter it doesnt help there are 1700 fewer Police Officers on the street than there were five years ago. We all know the problem. Reporter mayor rahm emanuel, form former white house chief of staff unveiling his latest budget with a 338 million shortfall. Thats an improvement from a year ago, but for every step forward, one thing keeps tugging chicagos sleeve. Pensions. We cannot allow the future to become a stark choice between the pension payment or police officer. A pension payment or a parks program. A pension payment or a school principal. Reporter the city and state have been scrimping on their payments to chicagos Pension Funds for years. Now the funds are nearly 27 billion in the red. Thats nearly 8 times as bad as detroit. The Teachers Union says the city owes its fund 400 million by june. And members are in no mood for more concessions. Were not interesting in having a conversation first about us making a bunch of sacrifices and by us i mean people who have worked their entire life and promised a particular pension and now were going to have it cut by a third. Reporter millions are quick to point out that even though they are frequent whipping boy in all of this they dont pay into Social Security so this is their retirement safety net and thats one of the reasons that this battle seems so difficult to solve. Chicagos pension problems are a big deal for sure, but not unique. At cnbc. Com cities you can look at the pension situation the Public Pensions where you live, read more about our special report and its not just pensions, its not just cities where the problems seem to be obvious. Were going from here, catching the next flight to miami. There, officials are looking at disclosures in the Municipal Bond market. You may think that market is safe when you invest there but there are concerns whether cities are giving the full picture. Tyler, back to you. Thank you very much. Fascinating stuff. Walmart is upping the ante on black friday saying it will kick off its deals a week early. Smart idea . Well explore that when we come back after this short break. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Power rundown time. Both here. Lets start with jpmorgan, worst over for it or not. It could be. But this is a big number. Investors know where the price tag could be short term. They have a lot of other issues that they need to solve not on the mortgage front. I want to pull up a chart for other banks, nipe other banks being investigated in a handful of other states. Bank of america could be the next, thats up, theyre facing very similar claims from the department of justice and new York Attorney general office. Well see. It could be costly for the industry still to come. Another big company, walmart, moving up plaque friday black f week. Thanksgiving is late this year, they want to get ahead of that bad pr when the employees always boy cost on black friday and havent got an lot of good press. Its hanukkah this time around on thanksgiving. Exactly. Big shopping season, black friday basically doesnt exist. All right. Nfl and mlb, major league baseball, saying it could lead to the end of free sports on television. The two leagues could move football and baseball broadcasts solely to pay tv outlets. A shot across the bough of areo. Content is king, so theyre considering taking fox off the airwaves and moving that to pay tv. Because look they cant compete if they dont have a service like this. They get guaranteed retransmission fees. Thats what this is about. Media Companies Want to get paid an not going to get paid if people take it off air. Whats thigh theyre taking this route. You did it fast. That was great. Sue, down to you. Were going to take a break and be right back with the big winner. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back to power lunch. Check out whats happening with United Airlines, flying high up about 4 right now. The airline said it was aiming about 2 billion in annual cost cuts and employees might be happy because the company says it does not plan any furloughs as part of this plan. Theyre going to reorganize other parts of the business, use less fuel, change their flight routes. Again United Airlines flying up 4 . Back to you. Thank you very much, dom. Lets check the markets right now because we have the Dow Jones Industrial average now down 28 points on the trading session. Part of that is linked to the fact weve moved back up through the 2. 7 mark on the tenyear note, were alt 2. 72 last time i checked, and ar cat cashin te me is taking the market down. That will do it for todays edition of power lunch. It sure does. Have a great afternoon. Street signs begins now. Life in the fast lane makes you lose your mind if you like life in the fast lane this is the place to be. Were hitting tesla and portia stories this hour. Brutally handsome and terminally pretty. Not us, the show. Welcome to street signs. Your other hot topics two real estate millionaires an how theyre making money, why

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