Transcripts For FBC Countdown To The Closing Bell 20130312

Liz countdown to the countdown. The dow touches another record high earlier today, and the s p remains near alltime highs, where can you still safely get greedy . One of wall streets heavy hitters Morgan Stanleys smith barney david darst first on fox business with his favorite pick. Its got to happen eventually. Ben bernanke and company end qe but then what . The ceo of fifth street finance shows you where to put money now for when it happens. And the famed Cleveland Clinic coming to a town near you . First on fox business, Cleveland Clinic ceo on how the platinum standard in healthcare is teaming up with hospital Chain Community health systems. Countdown to the closing bell starts right now. Liz good afternoon everybody. Im liz claman. It is the last hour of trading. And you know what . We are seeing something we havent seen on the screen in more than a week. A lot of red. Not deep, deep red, but defin e definitely red. Earlier this morning up 31 points, best levels of the session, the dow started to pull back and you can see the s p has followed down a third of a percent. Alltime high level were looking at is 1565, 15 points away from that right now. The nasdaq is lower by 16 points or half percent. Tech stocks are really among the days worst performers. They are led by apple, jeffries cutting its price target on apple to 420 a share from 500, a little late on that. 500 was in the Rearview Mirror a while back. That stock is down 8. Delays with the iphone 5s in productions is the problem there, at least the concern. Then we have google, down a percent. Look at red hat, though, rht, down nearly 5 . Citigroup downgrading the Software Maker from a buy to a neutral, so red hat down by 2. 57. Lets flip it over. We have money flowing into some of the consumer names. Had you listened to our bull bear debate on jc penney yesterday, you might have been ready for this. Jcp is moving higher by 5 . Why . Theres been some speculation we talked about this yesterday that ceo ron johnson is leaving. Barely been there a year. The retailer says it is not true. But there you are. Its up 75 cents. Anybody who has owned this stock for a while waiting for it to turn is a little happier today. We have costco, moving up a percentage point. The big box retailer Second Quarter earnings beating street estimates by a mile. And yum brands, the operator of kfc and taco bell, broke after the bell yesterday, china sales, they werent great, but they were not as bad as they had been and had been expected. Coming back a little bit on the samestore sales in china in particular. Lets look at gold. The precious metal rising near a twoweek high. Analysts say the gains are due to some short covering. And black smoke came from the chimney of the 15 chapel, a sign that no, the cardinals have not made the decision yet. You can barely see it. We saw it better earlier with tracy and ashley. Very dramatic. No new pope selected. Another chance tomorrow. They will vote tomorrow morning. In the rain, as you see the crowds there. Fox business is there. We will bring you it the minute it happens. Heres the data i want to throw to our traders, according to to a report, hedge funds have taken equity exposure up to the highest level in eight months. Lets bring them in on the floor show. Traders at the new york stock exchange, cme group and the nymex. Wow teddy, is so called smart money a little late here . I dont know, a lot of people are trying to talk the market down, liz. You know, we have talked about nothing more bearish than a sold out bull, but, you know, you know, i mean, this is just a blip. I think the momentum is still on the upside. I cant tell you why they are going up, but they look to me like they are going to go higher. I think those folks should have probably put money to work, here, though, it seems a little scary, i think they might be on the right side of the equation. Liz i bet they are relieved to hear that one. Phil, at the cme, teddy is right. There have been a parade of people trying to talk this market down. Yesterday we had a technician on, and he said 10 correction coming. Wait till you hear what david darst has to say. Hes coming up in a few seconds. But what do you see here with the trades you see flowing through the cme . Well, today was really a small reallocation. We had Goldman Sachs come out and they revised their commodity outlook higher. Thats why you are seeing gold prices start to surge. You are also seeing oil despite the fundamentals which are quite bearish, also rebounding as well. A little shift, a little profit taking on the equities. A little reallocation back into some of those long commodities. Liz elliot, im looking at crude oil, while it did get a lot closer, that brought the price down just a bit at least when it comes to oil. Is there nothing more than a stronger or weaker dollar at play here because we do have some pretty i would say fundamentals that make it look bearish to have this price go higher meaning a lot of inventory with oil . Agreed. Its like teddy always says, the market is the only truth. Crude dont be fooled by seeing the wti, up 40 or 50 cents here today. If you look, the products are all lower. Unleaded gasoline, rbob Contract Heating Oil lower and brent contract is also lower. The wti contract here in new york is up 50 cents against its own products but thats really the spread between ti and brent coming in a little bit today which is good for everybody, i think. But again, overall brent crude is actually down. More red for you today, liz. Liz 73 cents lower is with brent. Elliot, is that the rain . Is that why your hair looks so slicked back . Yeah, yeah, sorry yes, i hate it. Liz we do adore you, right, teddy . Elliot warren quoted teddy. I dont want to hear any hair stuff. I dont want to hear anything about hair. [laughter] liz gentlemen, thank you very much. We really appreciate it. The dow jones industrials, while down 15 points did hit another record high earlier today. Now you saw this yesterday, a lot of attention, the famed Warton School of finance professor said yesterday here on fox business that the market would continue its winning ways specifically with the s p 500 hitting its alltime highs, this week, he predicts. Listen. Let me get you to the s p 500 then. When do we hit 1565 . Were only 10 points away. Is that a sure thing . Yeah, that could come any day. I mean, if i were to put money on it this week, it will happen. Liz this week, it will happen. We have got 2 1 2 days left, not even. Lets bring in a market player who manages money. Okay, we got the professors opinion here. But now we have got somebody who manages nearly 2 trillion dollars. Lets get his view. David darst, Morgan Stanley smith barney chief investment strategist in a first on fox business interview. What do you think about dr. Siegels projection . Liz, hes terrific. I have known him for a long time. He does very very solid sound work. Theres a bear market checklist that we keep right now. Is the fed tightening . No. Are investors is there investor euphoria present . No. It is a little frothy but not a bubble. Are valuations stretched . No. Is there a recession looming . No. Are the transportation, bank, and small cap stocks taking bullets . No. And are bond yield spreads widening . No, they are narrowing. All six of those, youve got six nos. So professor siegel is correct, the market can definitely run higher here especially since its basically had this good momentum starting up this year, up 9. 1 . Liz the one thing you want to do, dont forget your viewers need to know this party is a little bit late in the tooth. Its been going for four years. So dont think you are entering this party at 5 00 or 6 00 in the afternoon and it is going to midnight. You are entering it at 10 00. Do it hollywood style. Do it beverly style and have a cocktail and be ready to leave. Liz you have to leave the party first a little early. Coming in late. Liz in new york city they would say oh im triple booked. I have to go. General mills by the way is raising its dividend right now. What is that . 15 Dividend Increase for a lot of you who own General Mills thats certainly bullish. Lets throw up the chart while were continuing to talk to you. You like not necessarily that one but some other consumer names. Here it is jumping to near highs of the session. In fact, im looking and im pretty sure it will eventually hit best levels of the day. Right now up just about 1 1 4 for General Mills on that breaking news. Okay, so lets get to the correction territory. Are we headed for one and by how much . Well, youve got this very low volatility. You pointed out repeatedly on the show, you are down below 12 right now. It is not excessively bullish that would indicate to us. I think it is going to be driven by profits. Youre going to in two three weeks you will have First Quarter numbers with the early ones reporting in april. Liz one bad sort of important name, does that drive us down . The consensus is for profits to only be up 1 year over year, liz. Now, the Fourth Quarter, you know the consensus was for 3 and it came up 7 . So it beat this low bar. You want to see how the corporate ceos in the Fourth Quarter earnings season, 70 out of 100 of the largest 100 guided analyst estimates lower. So you want to watch this First Quarter. It is going to be very important. Liz okay. I want to get to apple because it is were going to tease you all with one of his many picks here and hes coming back in the second half hour to talk about other names. But apple, have you been adding as it comes down, youusaw the jeffries downgrade, do you agree . Our analyst has a 630 price target. The stock is about 425, 430, something in that range. The stock sells for 9. 7 times earnings. It sells liz cheap. It has a 2 1 2 dividend yield and sells for three times its cash. If they get this china mobile contract which tim cook went over there to try to get, it is not in the bag yet, theres 600, 700 million subscribers to china mobile that dont have apple. And in china, apple is the same as louis vuitton. Yes, they can get these other, but its got a certain cache to it. They all want the apple. Thats why they even do a lot of knockoffs over there. Second thing in addition to china could be a low priced iphone or ipad and thirdly, liz, they are supposedly working on a Smart Television or else some sort of dick tracy iphone watch. Were watching for that liz were watching for that. We think the stock could easily go to 630. Our analyst has been very good on it on the way up and she said back you have and let it ease off. It is in the low 400s. Thats when you can start to accumulate. Liz we will be back with david darst. Coming up he has more names. The closing bell ringing in 48 minutes. When you think of a franchise, right . You immediately think maybe mcdonalds, subway, dunkin donuts, well the world renowned Cleveland Clinic Just Announced a sort of healthcare version of a Franchise Agreement with a publicly traded Hospital Company called Community Health systems. Thats hitting 52 week highs. The Cleveland Clinics platinum reputation putting a real shine on that company, as it hits some very significant moves here. Is it a prescription for success for Community Health . Up next, first on fox business, the man behind the deal, Cleveland Clinics ceo and president. Its a fox business exclusive. And Len Tannenbaum also coming up. All stations come over to mission a for a final go. 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Look at shares, jumping 6 1 2 after a huge drop in the middle of february, late february, so whats happening here . Investors are applauding a major change in verifones executive suite. The ceo who has been around there for 12 years, was dismissed effective today. Chairman Richard Magin is replacing in an interim basis until a permanent successor is found. Heres the company in the past three years. It started to head back down after having a pretty decent 2012. He had been ceo since 01. So he had both lows and highs to be fair. Susquehanna international responded to the news by upgrading the stock to positive from neutral. Ve lets show you the dow jones industrials. We do have more red on the screen than we usually would compared to the last few days. Lets get to healthcare stocks. They are getting a clean bill of health. Ten stocks hitting record highs. Lets head over to Nicole Petallides on the floor of the new york stock exchange. Nicole it is interesting to watch this group do so well on a day where we obviously see a market going back and forth, concerns not seeing the risky plays that are popular today, the bank stocks and the like, but healthcare at record highs. Take a look at some of these names here, biogen idec which is up 1 . Mckesson im looking at gilead, mckesson makes me a little bit nervous actually. But take a look at some of the other ones. When you look at this group, you have to think of them as a defensive play. We are seeing the defensive plays. A safe haven of gold. Healthcare is obviously we talked about the ten members moving here to record highs. Three were biotechs. Three are Healthcare Providers and services. Mckesson would be in that group. And the biotechs i think of celgene for example. So you are seeing this group doing incredibly well. They are defensive plays obviously. And now people are playing a little more caution here. Back to you. Liz okay, nicole, see you in a minute. Speaking of healthcare, when it comes to prestigious medical centers, the Cleveland Clinic right there on the coast of lake erie is tops, and it is forging an alliance with big for profit hospital operator Community Health systems, so now the Cleveland Clinic doctor is in, and its stellar reputation, level of care is exploding all over the map. Cleveland clinics ceo and president joining me now in a fox business exclusive from cleveland to talk about this partnership with cyh which by the way up 43 so that stock today is also hitting a new high. So its done very well. But now it has the glow of you, toby and the Cleveland Clinic. Well, were very excited about this, liz. We think this is a great opportunity. As you know, everyone is trying to produce better value for your healthcare dollar, and we have two very different organizations coming together here. Cleveland clinic well known for its high quality and Community Health systems well known for its efficient management of hospitals. And we think the two of them bring more value to our ability to drive value for your healthcare dollar, and we see great synergy between these two organizations and were very enthusiastic about this opportunity. Liz okay, lets talk about this, because if im a patient, and i have a choice of either flying all the way to cleveland to go to the Cleveland Clinic, if there were no flights, i would go there, maybe versus not to say anything negative about local hospitals, but now these local hospitals, with cyh are really an opportunity i guess because its success by association, not guilt by association, what will i now get at that hospital that has the partnership with you guys that feels more like the Cleveland Clinic . Well, we want to start out with small things and begin to build on those. Our expertise in heart and vascular is well known, and so were going to start out there and try to look at ways that we can enhance the already good quality, the Community Health system, cardiac programs, and then we will look at other programs as we go forward. We think theres more and more synergies and the more we talk, the more opportunities we see between the two organizations. Liz okay. Whats new and different in the patient world, specifically you said cardiac and health . But how about doctors . Are you going to be at least maybe having visiting doctors . Now im making up ideas here, but you tell me what it is going to be like. Well, what we think is that as we begin to measure quality and begin to look at it in a specific way, we can raise the level of quality of the performance all the way across the board. As you know, liz, quality is really measured in three ways it is the clinical performance. It is also the physical and the emotional aspect of it. We have talked about all of these things, about how we could begin to share our learnings over the last several years with organizations across the United States, and we have found a partner thats interested in doing this. Liz will you be watching their outcomes to see if they become more successful when it comes to patients and of course you dont want readmissions within 30 days due to complications, how are you going to make sure that the quality is not just oh were lending our name of the Cleveland Clinic to these companies . First of all, liz, we are not putting the name of Cleveland Clinic on these hospitals. Liz right. What were doing is were working with them and they have good Quality Metrics right now. Were hoping to continue to refine those metrics and to standardize as we go forward, and were also hoping to develop care paths which will decrease the variation and healthcare treatments across this entire system. Liz so toby, can i interrupt . Will there be any branding of Cleveland Clinic at all . There will not be branding on these hospitals to start with, but we dont know where this is going to go over time. This is an infancy of a relationship which is going to be a long and successful one, were sure. And it is we cant begin to tell where it is going to go, but were starting with a determination to make this a relationship make this relationship work well. Liz the mayo clinic has done this, md anderson Cancer Clinic has done this, is this exclusive to cyh or are you open to other partnerships . Were only going to do this with this for profit operation, were certainly open to do it with not for profits. Liz paul ryan is floating his new budget and hes been very clear that he wants the affordable healthcare law repealed. This is big news today. I would be remiss if i didnt ask you, what would that do if suddenly now youre at least aware of one Playing Field and then it gets switched if this were to be repealed, would that harm things Going Forward . How would you feel about that . I dont think it makes any difference. We know the train has already left the station. We have to reduce the cost of healthcare. We have to improve the quality of healthcare. Thats going to happen by beginning to have these sorts of relationships of hospitals and doctors with hospitals across the country. So we really are determined that we will improve the value of healthcare, and its necessary for the country to bring the costs down. Liz toby cosgrove, Cleveland Clinic ceo and president on the new relationship with cyh, the Community Health systems which is hitting a 52 week high on behalf of the news of the partnership. Thank you doctor for coming on with us exclusively. Nice to talk with you, liz. Liz any time. Closing bell ringing in 37 minutes. Charlie gasparino has the latest developments on a criminal getting paid. Countdown returns. Stay tuned. Liz time and crime dont pay, particularly if youre no they do pay. You wanted to ask me a question. Liz i could look at this guy for a while, but can i quickly ask you any fallout from your report yesterday on Gary Kaminsky leaving this is interesting, grapevine chatter, we should do a little headline on this. The chatter says that somebody is going to go gary is going to take some people with him to Morgan Stanley and one of the people that apparently is in the mix, that i heard, purely grapevine is brian steel. Liz i dont know him. Never heard of him. There we go, cnbc flack going to Morgan Stanley. Anyway, lets get back to jordan belfort, crime does pay, his you know, he sold the movie rights remember i came on here a couple weeks ago and i said based on he went to jail for a couple years. Liz he stole money from people. Destroyed peoples lives, did all this stuff, spent a couple years in jail, and in doing so, also cooperated, got the shoe guy, the guy that made a lot of money, he was part of that whole thing. He comes out, and he basically writes two books and sells the movie rights to the books. I tell you, he has 110 Million Dollars i thought no hes not going to get a dime. Hes got a Million Dollars. Its a Martin Scorsese film, its named after his books, he sold the rights to scorsese. This thing is coming out by the way liz is he getting money . A Million Dollars. Liz he gets to keep it. He got it. Theres all sorts of negotiations going on right now between the government and his lawyers. Apparently according to his lawyer, i spent a lot of time talking to this guy in circles yesterday, all this is on foxbusiness. C foxbusiness. Com, you can read the entire narrative. What do you mean circles . He was all over the place. When i nailed it down, i got this since hes been released from jail in 06, belfort still owes 100 Million Dollars. First two years of his release he paid about 50 of his earnings. Hes a motivational speaker now. He does a lot of work in australia. He teaches people how to be who knows what he does over there. But he made money off of the books, right . He made money off of the movie. He wouldnt tell me how much money he made off of the k books off the books. He wants to cut a deal with the government where he gives them less than the 110 million where he doesnt have to pay the full restitution. He thinks the government will make more out of that because he will be dead by the time he makes a huge liz you do the time, you pay it all back, make your money, do whatever you want. Tyco was not im not making excuses for dennis kozlowski, i dont know too much about his case, but i do know this, tyco is not straton oakmont. It sold one legitimate deal, maybe two, one that i know of, steve madden shoes, thats the only one legitimate. Liz steve madden was he help put steve madden in jail, the shoe guy; right . Liz yeah, but that Company Still exists. If you serve your time and you pay back what you were supposed to, but there are still victims out there whose lives were changed. Before madoff, there was jordan belfort. Apparently he made money off the movie. Liz thank you. You are not going to Morgan Stanley. But they are going to have brian steel. Would you short the stock now . Liz not over that. [laughter] liz good to see you, thank you, charlie. Closing bell ringing in 26 minutes and change. The fed, look it is obvious, will eventually have to tighten rates. The question is, when will ben bernanke and company do that . What does that mean for your portfolio . And how should you organize your portfolio . Charlie is saying short the dow. But guess what, Len Tannenbaum is the ceo of fifth street finance, hes got some great protection plans. Its a fox business exclusive. [ female announcer ] from more efficient payments. To more ficient pickups. Wiress is limitless. [ female announcer ] from tracking the bus. To tracking field condions. Wireless is limitless. Investor. Yeah, ibut im a busy guy. Or it used to be easier but now there are more choices than ever. I want to know exactly what i am investing in. I want to know exactly how much im paying. I want to use the same stuff the big guys use. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Liz take a look at the big board. We are up just slightly, the dow reversing, and we can see it up just a point and a third at the moment. This happened another moment ago, and i mentioned it, but were watching this very closely because any move to the upside is yet another record high for the dow, with about 21 minutes left in the trading session, got to stick with me to see if this happens again. Shares of yelp, getting a thumbs down from investors today. The stock is falling as another company talks about entering the market that they are in. Lets get to nicole on the floor of the new york stock exchange. Nicole right, i mean, you know, this is it is not good when you have somebody who is coming in to be your direct competitor. Yelp today, the stock is down about 6 , as you can see. And year to date, it is a real winner. It is up over 25 . But were talking about four square. Four square and the ceo over there, saying that now hes really trying to expand and take on yelp directly. Yelp is a san franciscobased company. Four square is a new yorkbased social networking company. And youre talking about yelp when you think about you go into a restaurant and you go into yelp, you give your review, good, bad, terrible, either way, but obviously yelp now has a serious competitor of four square at their heels getting ready for that. Liz if four square gets in the business, you have to be concerned because they have some smart people there too. Nicole thanks for watching that for us. You know its got to eventually happen; right . Im not talking about the Cleveland Browns winning the super bowl. That is going to happen, but im talking about [laughter] liz the question of Ben Bernankes timing, when will the fed stop qe, sending Interest Rates higher . Were bringing in Len Tannenbaum, fifth street finance chairman and ceo. Hes got about 1. 6 billion in assets under management. Publicly traded company in a fox business exclusive. You have got a game plan. Absolutely. Liz do you see Charlie Gasparino . Is len shorting the dow . Is len shorting the s p . Thats not your game plan is it . He asked me on the way, he said are you as bearish as i am . Im not bearish. Theres so much liquidity. It has to go somewhere. Where are you going to put it if youre an individual investor in a money market earning zero . Treasury bonds earning virtually zero in the shortterm . I mean, where, europe . Basically it has to go in the market because people have to put their money somewhere to counteract the effects of inflation. Liz theres no inflation. We really havent seen a lot of inflation. Gasoline prices but thats a refinery issue i would think. A lot of negative shocks to the economy, caused deflationary shocks, you have japan and other things. Inflation hasnt comed yet but hasnt come yet, but it will. So you think by the end of next year, Interest Rates are going to start going higher. Six months before that, the stocks that will benefit from Interest Rates going higher will start to rally. Liz okay, thats the when. Now the how. How do you start to protect your portfolio . Not the names yet because thats the where. But the how . What do you look at . Lets talk about what i do at fifth street. We manage a billion one of equity. We buy floating rate loans so when Interest Rates go up, the floating rate loans make more money. Liz okay. We borrow fixed rate. So those of you with fixed rate mortgages out there, it is the same idea. If Interest Rates go up, you are still paying that same amount. So our debt fixed, assets floating. Investors have to start thinking the same way. Liz now lets make it really easy for investors. Lets get to td ameritrade, you have liked this company for a while now. Why this one . It is one of the companies that benefits from an increase in Interest Rates. They hold all of these deposits from their ameritrade customers. And guess what . They earn zero and they pay zero. Thats not very good for margins. Liz up 17 over the past year, just getting back up to its 52 week high again, but back in january, you really liked it. Its been up 7 since then. But is this a real opportunity to see some yield in particular . I think it is. I think its a good company to begin with. I know the ceo. Hes a smart guy. Ive been on some panels with him. And i think that he will lead the company well, but when Interest Rates increase, he will say every single quarter point or half point increase in Interest Rates will drive money to the bottom line. Liz let me correct that, up 17 since you checked it. Lets give credit where credit is due for len definitely. Lets get to some reits that you really like. First of all, why reits in particular . I know that the dividend is very enticing. Right. Liz but is there Something Else here . Were not talking about mortgage reits. Were talking about land reits, dirt reits. At fifth street were thinking about the same areas, is good for our investors to enter, why . Because dirt reits will appreciate when Interest Rates go up. They can charge more rents. They can charge more lease revenue. And these three picks that i have, one of them is in healthcare, and i think healthcare is a great stable place. Liz keep these up, hcn, talk about that one. Im not an expert in reits. I got these from my director of finance. I said who are your top three picks . He said these were his top three picks. I can tell you from a macro standpoint, dirt reits are a great place to be. Liz Boston Properties is flat over the past year but so is essex, but they do have decent yes they do. Are you worried about a correction . All we see in our industry is a lot of liquidity that needs to continue to find a home. The banks i think will continue rallying. I like the Financial Services industry. Its really an exciting time for investors, but it is also exciting time for the Financial Services industry liz can you go push Charlie Gasparino around . Hes in the hallway. Meantime the dow is up 3 3 4 points right now. Thank you len, good to see you. Len tannenbaum is fifth street finance chairman and ceo. Closing bell ringing in about 15 minutes. Back in november, david darst was here. He told you buy johnson johnson. If you did, youd be making money because shares since then are up 14 . And since we love making you money, were bringing him back. He just told charlie im going back to talk to liz with my buy list. Hes coming right up. Stay tuned. Its a new day. If your a man with low testosterone, you should know that axiron is here. The only underarm treatment for low t. Thats right, the one you apply to the undarm. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. 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Liz breaking news, chase is experiencing online, quote, intermittent issues right now after a new cyber threat, a brand new cybersecurity issue. A source is confirming that a new round of cyberattacks on u. S. Banks has now started and chase is now telling fox business that chase online is experiencing intermittent issues. We are working to resolve it. Keeping customers updated via twitter and our website. The bank is declining to comment specifically on what caused the problem or the specific threat against it. We are working on getting more on this story. There is a brand new attack on bank online efforts. So watch out here. Chase is experiencing intermittent issues. We are watching other ones as well. Keep you posted. Last time david darst was on our show was on november 27th. He picked johnson johnson. Shares of the company up 14 since then. What else are you picking . David is back with me. And i guess just a quick mention on j j because they have had their own issues, but 14 is a nice move. Liz, they put in a new ceo a year ago this april. So two more months, he will be in there a full year. Liz we like him; right . Yes, we do. Hes a 28 year veteran. He knows the company intimately. The stock sells for only 15 times earnings. They have only 20 of their revenues are in emerging markets so they have got great upside. The thing yields 3. 1 . So the stock has got 2. 8 billion shares outstanding. They have a 70 gross margin. And they have a 20 return on equity. So we like j j. We still like it. We think it can go higher. Liz they can start making more childrens tylenol because every time i go to cvs, they dont have it. So i need that. Schlumberger, an oil services company. We know that gasoline prices have gone higher higher. Why is this company a pick of yours . Liz, the shale gas revolution and Shale Oil Revolution in the United States north america canada mexico you cannot touch the oil without having schlumberger. 1. 3 billion shares outstanding. It yields 1 1 2 so its got a low yield. Liz it is not expensive. We think that stock has further upside given the shale gas and Shale Oil Revolution in the United States. Liz heres one, colgatepalmolive, up 21 year over year. You believe theres more upside, even as we have a situation where the payroll tax cut has now been expired . Well, we like that stock because its a global gorilla, liz. It is one of these companies that sells cheaply in the u. S. Market in terms of valuation, yet it has exposure. 50 of their sales are already in the emerging markets and we think that too can expand. Its a global brand. Its a global look, Warren Buffett just bought into a big global brand. This is that kind of a company. Its a very, very good yielding stock. And yield grows there on the and we like the management of colgatepalmolive. Liz pfizer is the next pick of yours. The dividend is 3. 4 . Up 28 year over year. Do you have any issues with the pipeline here . No, we think pfizer is still cheap at this level and pfizer is another one of these global gorillas, management internationally minded, dividends raising, great return on equity, great margins. Liz qualcomm is huge. We love the management. They have the chips in all the smart phones, way to go. Up about 7 over the past year. It is still as i look at this a company that could be the next apple, in that could it be open to shareholder attacks . They have 13 billion in cash. Dividend only 1. 5 . I have listened to you on your show talk to paul jacobs. Hes son of irwin jacobs and hes a very very astute manager. Liz berkeley graduate, i might add. I love listening to you guys. As you said just now, look, as the chip was to the personal computer, qualcomm in almost every platforr, they are really one of the most important parts of making these smart phones work, liz. So we like qualcomm, and we like listening to you talk to paul jacobs. Liz okay, i will tell paul. We will get him back on. Thank you very much. Good to see you. David darst, Morgan Stanley smith barney chief investment strategist. Closing bell is this going to be another record day . I dont know. Were down about 9 points. Will it be a rush to the flat line . Well, if it isnt a record day, there may be one stock to blame. Im going to tell you what it might be after the break. Stay tuned. You have to see this finish, five minutes to go. Today is gonna be an impoant day for us. You ready . We wanna be our brothers keeper. Whats number two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. 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Its not rocket science. Its just common sense. From td ameritrade. Liz we are so close, two points away from hitting the flat line have to be up just a fraction to make it six record sessions in a row. Take a look at caterpillar to blame possibly. Caterpillar down 1. 6 right