Firms that might be now in the crosshairs. The stunning market rally continues right now. The scorecard, s p 500 up some 24 yearoveryear. Right to the floor show. The cme group, the nymex and the new york stock exchange. First, we really should talk about whats going on with Nicole Petallides and the transports. Once again we see another record high. Yeah. Its worth taking a look at the transports. When we see a record high on this particular group, the truckers, the shippers, airlines, railroads, they really are a great economic indicator, and youre seeing some of those names moving to the upside and look at the transportation index up about 1 as we noted. Yep, indeed. And chris at the cme, i know you watch those transports, but what does it say when you have everyone frommedrailroads to airlines and Companies Like ups and fedex and the entire market itself which again continues to move up . It really, to me, means a lot of Money Managers are reaching for risk right now. Theyve been outperformed with by the s p futures, and right now theyre taking risk on and taking things off. You saw a selloff morning and all of a sudden about midday a series of higher lows, higher highs. To me, that means until we have some hawkish comments come through the fed, that this injection of money is going to lead these markets possibly higher within the week. Liz i hi youre right. I think the hawkish comments will get this market a little bit nervous. As we see exactly whats happening with oil in the Energy Sector that, to me, is an interesting story, i must say. While brent is higher, we do have crude which is moving lower. Down at the nymex, what are they talking about . 94. 59, is 90 what your buddy michael has talked about is that the next weigh station . Yeah. Kind of seems we have some downward pressure that we followed through from last week. We rallied a little bit, but id look for oil to trade lower, and id look for the transportation stocks to continue to cally based on the fact that youve got cheap oil, cheap natural gas and it looks like theyre going to go higher and were going to go lower. Liz nicole, fridays close, we continue to move slightly higher. At this point the high of the session up about 43 points. Where do we go with these large cap names . Some of them are in the dow, and theyve done quite well. Well, when youre watching the large caps, overall the idea here on wall street is very simple. You dont fight the fed, dont fight the tape. And most of the traders here on wall street continue to believe that the fed will continue its bondbuying program, right . Youre not going to see the tapering anytime soon and not likely before janet yellen moves in. So with that, the idea here is that the momentum remains to the upside. You have a couple of wildcards and headlinedriven markets, for example, on friday were waiting for the monthly jobs report. You remember that partial Government Shutdown pushed it back a week, so were going to get that on friday. Big news on twitter. Bits and pieces of information that could move this market one way or another, but overall were seeing mergers and acquisitions happening even today, and the momentum for the most part, even Teddy Weisberg standing behind me liz i see him. He really continues to believe this momentum remains. Its hard to be sure. Liz well, dont be surprised if twitter throws a little bit of froth and bubble activity into this market getting people excited. Everybody, thank you so much for joining us on the floor show. We appreciate it. So with the s p 500 hovering within a tiny whisker of its alltime closing high, its very important to note and that a lot of you are paying good money to Money Managers who cant even outperform the basic indices. Heres one who has. Our next guests fund with the help of names like priceline which is up more than 70 year to date, outperforming the 24 see, now, i like that, right . Here he comes, hes howard moore, chief Investment Officer and gamco growth Fund Portfolio manager. Nice performance, and everybody just wants to know if you agree with what some of the traders were saying and nicole. The minute they Start Talking about tapering, will this shake the markets foundation, or will we continue to see upward movement in the markets . Well, liz, i would be concerned about taper talk. I do think that the Economic News is going to continue to look a little bit better. We had a terrific Chicago Purchasing Managers index last week, great new york ism today. Those kinds of numbers will drive some taper talk. We had the tenyear treasury back up from 250 to 260 last thursday and friday, so i do think thats coming, and with the market up 24 , were probably positioning ourselves for a little bit of a pullback, 2, 3 to 4 . But then i do think that the market will push higher. Individuals have begun investing many in stocks with some greater interest in recent weeks. We see that in the flow of funds numbers into equity funds, so i think we will have a yearend rally, but i would be very cautious thinking that a pullback is also quite likely, and its likely to be driven by taper talk. Liz howard, i look at your performance, and lets just say the s p 500 is up 24 yearoveryear, the dows up about 19, 20 . Youre up 27 . Thats got to be one of your better years. Youve been doing this a long time. Will well, liz, you know, the good years come, and the bad years come too. [laughter] i think 1999 was actually my best year. We were up about 45 that year. Liz whoa that, of course, was followed by a threeyear bear market. So, you know, you have to level it out and, yeah, its a great year. I would love every year to be this good, but, you know, i have been doing this a long time, and i know that you have to take the good with the bad. Liz well, do you think that that same type of market behavior is going to follow what has been a several yearlong market rally . You know, i dont see any recession out there on anybodys forecast for the most part anyway in terms of mainstream economists. And you dont see the excesses. I think were setting up for a global synchronized economic expansion in 2014. Europes out of recessioning, japan is beginning to accelerate, chinas moving along at 6, 7 . And here we are growing 2, 3 . So i do think that next year could be good. Earnings expectations for next year are up 8 . If the stock market can maintain its current multiple of 15 times, thats 8 plus a dividend of 2 , thats a 10 return. Inflation so low right now, loving just over 1 , that cannot only support the current multiple of 15 times, it could support a multiple of 16 or 17 times as well. Liz howard just made the case for clear skies ahead. You were last here september 10th, you picked one of your stocks as google since then. As i move forward, i just wanted to let our viewers know that some of the names you have owned in the fund is up 27 , microsoft, qualcomm, priceline. Priceline up 71 year to date. Stunning, but you also have apple which is down 2 year to date. So would you point to priceline as your big winner in covering up some of the other problems at some of the companies you own . No, actually, weve had, i mean, pricelines been a phenomenal stock. Jeffrey boyd, the ceo there, continues to really manage that company well. And the earnings have grown at a torrid pace to help justify the price rise. Weve had a lot of great pioneer and natural resources, eog resources. You know, a lot of the media names and even industrial names. There have been some stocks that havent done that well. Apple, thats my biggest holding, and and it hasnt done very well this year. Liz you still like it . How long are are you going to give it . I was in an apple store this weekend, there was an empty table, that was the iphone 5c, the colored ones, and then i was doing a little retail research, and i saw that the ipad air, we immediately walked right up and were able to look at it, so there wasnt really a line for that, and this was at that gigantic mall in new jersey, the garden state mall where you just go nuts. Yeah. They just finished with september 30th, four quarters where they had negative everybody earnings comparisons. The next four should have positive. Stocks at 12 times earnings, an 8 cash flow, buyback 60 billion worth of stock, new products, new carriers coming, we think the stock can continue to move higher from here. Liz okay. Now everybody listen, here are his next two picks. They are home doe poe, and you also depot, and you also like cvs, up 34 . Tackle these in a line because i want to get to the stocks youre avoiding right now too. Sure. Home depot, this is a play on continued improvement in housing which we think is going to happen. Weve underinvested in the housing sector since 2007 as a result of great recession. Lots of pentup demand for spending on homes and new construction, so thats the safe way to play that. Cvs caremark has about 43 billion in revenues and 80 come from selling drugs in one form or another. Its a great way to participate in the expanded medical insurance from obamacare. Liz friday we have Delphi Management founder scott black talking about cult stocks to avoid, he mentioned netflix, tesla. You say the same thing about tesla. And again at that same jersey mall i know, can you believe i was traipsing around the mall . I snapped the picture because they have a mall store, and there were a lot of people in it. Why do you say avoid tesla . Theyre coming out with earnings this week, by the way. These stocks whether its tesla or netflix, linkedin, these stocks all sell for over 100 times next years earnings. So you have to have some very aggressive, positive assumptions for some period of time in order to justify those valuations. I think thats a high risk kind of area for the market, and i wouldnt want to go near it. I suspect if we do get a pullback, these stocks will pull back more than the overall market, and so i think theres much better values in the market. This is the froth of the market, and the twitter ipo might just feed further into it. So id be take taking gains if i had them and redeploying that money elsewhere. Liz howard, were going to put your widelyheld names and the ones youre picking at our facebook. Com lizclaman . I always forget. Howard, thank you so much. Youve got a great report. Cam go investors Growth Equity chief Investment Officer. Thanks, liz. Liz were about 49 minutes away from the closing bell. Imagine this kind of growth, Tri Pointe Homes hasthe blink of any with a nearly 3 billion deal to buy homebuilding business. Doug bauer joining us live next to tell us how he plans to develop those 30,000 lots and what itll mean for you, the investor. And as the u. S. Attorney announces what the feds call the biggestever Insider Trading settlement, he also raises new questions by saying no institution is, quote, too big to jail. Whos he going after next . Charlie knows. He was at the u. S. Attorneys news conference. Hes going to join us with his take and his thoughts this just a moment. My mantra . Family first. But with less energy, moodiness, and a low sex drive, i saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron. The only underarm low t treatment that can restore t levels to rmal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than8 or men with prostate or breast caer. And children should avoido are contact where axiron is applied as unexpected signs of puber in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medication serious side effects could include increased risk decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while eeping; and blood clots in the legs. Common side effects include skin redss or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. Ask your doctor about axiron. Pop in the drum of any machine. To wash any size load. It dissolves in any temperature, even cold. Tideod pop in. Stand out. Liz the power mover of the hour is tesla. Im going to do this backwards. 28 a share was the annual low. Look at this right now. We have it at 173. So from the span of a year weve had it at 23 and now 173. In this investor darling is speeding faster and faster. Today as you see trading up another 10 or about 6 , 6. 75 after the Company Announced an agreement with panasonic to feature its lithium ion battery cells in teslas cars. In the meantime, look, maybe elon musks baby is navigating from the wealthy elites to the mall rats. I took the picture. Spotted over the weekend at the Garden State Plaza mall where my floor director, benny, spent many a teenage year. Yeah. [laughter] liz i saw this, and my poor daughters, cant we go the apple store . I said teslas the same thing only for cars. They do things differently. They dont have dealerships. They have stores in malls. But, you know, i would say the Garden State Plaza, yes, they have gucci, pucci, but theyre not exactly the highestend mall, although theyre getting there. But to have a tesla location and a storefront there we thought was very interesting, and again, their earnings numbers are coming out tomorrow. We will have it every which way for you. Las vegas high rollers looking for bargains dont have to look very far far. Entertainer wayne newtons mansion is up for sale, and the price has been marked down, yes, cut. Are you ready . You can see if you want it. The property was originally put on the market for 70 million, but the price has been slashed, as you see, to 48 million. This estate sits on 36 acres and has eight separate homes. Eight separate homes. Now, remember, Bernie Madoffs penthouse apartment with three bedrooms is 17 million. The main house has three bedrooms, six and a half bathrooms, the property also includes multiple swimming pools, horse stables and Tennis Courts plural. But if you get bored of entertaining inside one of those eight homes, take the party outside. Theres a passenger jet just sitting there, a focker f28 just to kind of hang out in and pretend youre a flight attendant. It also includes its own airport terminal with plenty of space for a party. But i dont think that jet can actually take off. We were looking into that. [laughter] cant actually take off. Okay. Speaking of parties, time for a house warming party. Two Companies Moving in together in the latest home builder merger, Tri Pointe Homes has bought warehousers real estate unit in a deal valued at 2. 7 billion. What does this do for tri pointe . It makes it one of the ten largest Home Builders in the u. S. It just recently went public. Is this latest merger a sign of a strengthening housing sector . We bring in the man at the top, doug bauer. Of when we saw the flash i want to say a week and a half ago that you were buying a division of warehouser, i thought this is a gutsy move. What is the number one thing you believe et does for tripoint . Well, liz, thanks for having me on, good to see you again today. You know, this transaction is very transformative for tri pointe. It allows the company and its shareholders to benefit from a larger market capitalization and liquidity standpoint, and so for the shareholders and the tri pointe employees, its very transformative, and were very excited. About this transaction. And moving forward. Liz well, it brings you from about 2,700 lots to 30,000 lots. What is the first thing you need to do to develop those lots . I dont know, as i look at numbers, i think, boy, that grows you exponentially, and thats a big weight on your shoulders or a big challenge or a big excitement. Which one . Its a big excitement, liz. Well own and control nearly 30,000 lots, and whats really great about this opportunity is it provides us a further footprint in california, provides over 16,000 lots which is right in our backyard and expands our footprint in san diego, inland empire and los angeles. But i want to tell you, you know, one of the keys to a transaction in this size is really the people. And when you look at m a transactions of this magnitude, whats really beautiful about this transaction is that the five operating companies for warehouser stay exactly how they are. Those people have their boots on the ground, and nothing changes. And that is so important in putting together a successful merger. Not only do you need the reality, but you need the culture and the people. And were looking forward to working with the entire warehouser group of companies. And theres nobody there are companies that have to look behind their shoulder to see other than future growth, and thats what were excited about is pulling all these companies together under the tri pointe brand. Its going to be a lot of fun. Liz at a time when the Housing Market has stabilized, but i see a lot of poise in the data. Sometimes you get good numbers on existing homes and bad numbers on permits or vice versa. Tell me from where you stand, how does the Housing Market look . Is it continuing to grow at the pace we saw about eight to ten months ago . Well, you know, we definitely saw some rapid pace and pricing in the first six or eight months of this year. And frankly, what were seeing in the markets right now is a very normal, very strong market condition. And as we look at this transformative merger opportunity, we really look at it at the early innings of a recovery. I mean, you look at 2000, late 12 and into 13, this is kind of the first year of the housing recovery, so were really excited about being able to pull these companies together this early and in the cycle. And look forward to having some of those growth opportunities. Its going to be a great opportunity for all the people and all the shareholders involved. Liz we had, hes really a smart market watcher, byron wien or blackstone, they have bought some 30,000 homes as investments. Theyre going to flip them, tough to flip quickly when you have to rebuild or renovate, but what does that say about whos buying the homes . What are you seeing with their class of client . Is it an investor, a family . A firsttime, secondtime home buyer . You know, our buyers are all owneroccupied. We see very little investment activity on the new homebuilding side, and the blackstones and the starwoods, you know, if you really go back, liz, and look at what has helped this Housing Market recover over the last 12 months, it really happened 12 months ago as those Companies Began to assimilate a lot of that foreclosed, short supply of inventory in the foreclosure market sapping up that supply which has really held dry the new home market. Liz i see. So those companies have been a big part of the housing recovery. Liz so its action, reaction. We should mention, of course, that Barry Sternlicht is your executive chair, he, of course, is also with starwood. Were just amazed. Youve had exponential growth, doug. Wed love to continue to follow the story. Thank you so much. Thank you, liz, and we look forward to talking too you again. Liz anytime. Doug bauer is the ceo of Tri Pointe Homes. Gutsy guy. And big in california, they now have 16,000 lots in california, so you need a house go, there. Closing bell ringing in 36 minutes. Lets get back to the Justice Department handing out the large penalty ever for Insider Trading against sac capital. Our own Charlie Gasparino was down there with perfect lighting, i must say. Whoever lit charlie while he was down in front of that courthouse, it was very impressive. But hes coming back in here to see about his lighting here but also talk about what it means for founder steve cohen and potential future prosecutions because the u. S. Attorney is far from done. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . Paying ourselves to do what we love . If hey breathings hard. Me, know the feeling . Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. Spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. Liz a gargantuan deal, the largest ever for Insider Trading reached between sac capital and the department of justice, but godzilla is not done yet. Hes got more. Charlie gasparino was at the news conference, joining us back in studio with the late rest details. Your lighting was really good. You almost looked angelic, which is an unbelievable feat i know. You should see what they say about me on the Huffington Post and buzz feed. Liz i cant wait. Ill look. Its not as big as what theyre trying to make it out to be. We kind of all knew this was coming, i mean, this has been telegraphed now for three weeks. We got the signal last week that it wasnt going to be last week, it was probably going to be this week. The Biggest Surprise is just how much the u. S. Attorney for manhattan is basically rying to take credit trying to take credit for this and pumping up the size of the settlement. Hes saying its a 1. 8 billion settlement, thats if you include the 600 million that the sec sac capital, steve cohens firm liz he clarified that, i heard him. Yeah. But in every press release liz youre right. The fbis press release points that out. But its ridiculous. They didnt, because i ran into peter donald, one of the chief spokesman, and im like, come on, its 1. 2 billion. That means a lot, because hes trying to tell the public, look, we are holding the fat cats responsible, we hit these guys for nearly 2 billion liz but they did. They hit them for 1. 2. Liz but the 600 million but he doesnt work for the sec. He works for the attorney for manhattan. Now hes trying to say its somehow connected, its not. And i think the public, you know, has to i mean, heres why are we bringing this up . The Obama Administration is now in this sort of overdrive mode. Theyre basically telling the public its holding wall street accountable for its sins, and as you know, following the financial crisis not a single bank, not a single Top Bank Executive really has been, none of them have been indicted or charged. Liz so theyre on fox business started emailing in on the chime and saying where are the perp walks . I like eric, but hes technically wrong about that because there have been plenty of perp walks. Steve cohen has not been charged, but Michael Steinberg liz we did have that video of him that was a perp walk. Matthew martoma. My point is, the bigger point im trying to make is theres some publicity value out of this. Theyre trying to conflate this with the financial crisis. They havent indicted anybody for the financial crisis crime, and you heard him say this, he almost admitted it, no firm is too big, no bank is too big to go after liz to jail. We are proving that by going after sac capital a. Liz whos next . What hes wrong about is sac capital is not citigroup, lehman brothers. They think the banks are too big to indict. Liz whos next . Because they made it very clear we are not done. Are they going to start going after other hedge funds . No, no, no. Yeah, they will if they can, but i think what theyre signaling to steve cohen is that he clearly remains under investigation, that they would love mortomo or steinberg to provide evidence against him to indict him. I mean, based on my sources they believe that he im not saying i believe it, im not telling you what i believe, i dont know but i think that they believe that steve cohen played dirty. Liz i swear, if im a graduating high school senior, im going into compliance. Thats going to be my major, because every hedge fund and bank is going to step up their compliance because i think what they were doing today was trying to strike free in the hearts of you know whats going to be interesting . Liz can you major in compliance . You could take a friend of mine is in compliance, was at one of the big banks. I will say this, steve cohen and all these hedge funds, they all charge enormous fees. This is going to be the interesting thing. Once you take away their edge, and their edge is information, if you start putting so much focus on how they get their edge liz right. Do they become so careful in what they do that they dont justify their liz 2 and 20 . Well, his was 3 and 50. 3 management fee, 50 of the profits. Most are 2 and 20. Can they justify those types of fees when their edge is being eroded by compliance . And, you know, a lot of eyeballs on them. By the way, were not even talking about Insider Trading. When you have that many eyeballs on you, it prevents you from taking risks. Liz were you cold out there . I heard during commercial breaks you were shadow boxing. I did that. Liz does that keep you warm in. Or else the mic was going to freeze in my hand. Liz the lighting was good. You know, i havent been down there since, i think, martha stewart. Liz you need to keep going. Theyre still going after people. Charlie, thank you very much. Closing bell is in 26 minutes. Call it the ipo hunger game. The ipo parade is going to get a whole lot more exciting this week with twitters huge offering. Are investors heading into dangerous territory . And what should they watch out for . Weve got two very smart market watchers and participants coming up next. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. Hit shares of blackberry are taking after they did not even get a callback from its suitor. Lets go to Nicole Petallides at Chicago Mercantile Exchange pulling themselves of the market total disarray, interim ceo i do have sympathy although i am still obsessed with their product. What is going on . I use it every day in and love that however this will be the turnaround of the century if they can do it. They have taken themselves off the chopping block working out the 4. 7 billion deal so now fairfax says they will invest in the company by 1 billion. The ceo will step down within the next two weeks. He has been ousted and the stock is at a new low of 6. 40 and one analyst one month ago at imperial that said this stock is worth 1. Get out now. It may go into bankruptcy. Being paid over 20 million upon his exit the fairfax says they will not plan to break up black period if you look at the longterm chart that tells the story in 2008 this is the one had to 50 stock. It just shows if you are a longterm shareholder that they would be competitive. Liz i have no sympathy neither previous ceo they were scared to come on fox business, they did not. Hines went down so i am telling you right now as the interim you better come on because the previous positions had very bad but we will give you a and opportunity. Stuart varney is assessed by an obsessive you are assess. It should not take a genius. We talk about a bond bubble and a housing bubble what about the ipo bubble . It seems there are so many and in essence the market is on track to raise the most money from the ipo since the attack bubble and the expected Public Offering of twitter and 14 other companies that just adds to the frenzy. I note twitter is french and center lets look back october was the biggest month since 2007 raising within 12 billion a end that the ipo this year posting of 30 gain and that is a great example of that in chinese travel Search Engine is up 89 among the top10 returns of the year despite the fact many are not profitable and with twitter the biggest example it seems that theyre interested in assets for the upside of slow Economic Growth and with the stock market rising that is something they can buy into. There is a lot of skepticism many Financial Advisers said they are fueled by the fed but we are not nearly at the same height yet but according to the wall street journal 3 of the 190 listed ipos on the day they went public but compare that with the 536 ipo is a 1989 things are hot but it pales in comparison to reach earth one dash word on the cusp of the bubble bursting with 37 this time and lots of the ipo are still doing well one month after they have gone public. Good to see you. The closing bell rings and 17 minutes with twitter on a roll the social media darling must have had a great road show erased the expected price range by a big chunk but is it trying to fly to high . We have our own preflight check for you before you press the button when the company goes public. Watch this segment. 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. Nothing, thats what . Thats why i take prilosec otc each morning for my frequent heartburn. cause it gives me a big fat zero heartburn. Woo hoo [ male announcer ] prilosec otc. The number one doctor recommended frequent heartburn medicine for 8 straight years. [ larry ] you cant beat zero heartburn. And best of all, it means i can enjoy all the foods i love. Oh, zero heartburn is awesome. Just like zero clery. [ male announcer ] prilosec otc. One pill each morning. 24 hours. Zero heartburn. Liz what happened on the twitter road show . And boosted the ipo price range today saying it will price between 23 or 25 per share that this difference between 70 or 20 is the little bird getting ahead of itself . President of the end of the group them professor of finance at columbia university. Rob, what does the road show do that they jacked up set price . I guess they got over excited. Twitter is a big deal with a lot of customers and a number of other countries in europe a and asia and the problem continues to be unprofitable and morceau going forward. Have you seen froth like this since facebook . That was the last way station on the hysteria front. Glading twitter is compared to facebook and facebook likes this a lot because it is a Much Stronger Company and twitter is doing well. It has done what it set out to do with the feeding frenzy we just dont know what is on the menu or what we are about to swallow. Liz im trying to be fair i think twitters started off conservative nothing flashy they did not go anywhere near a tv camera we tried to get them but they hid from everybody except investors. It is clear twitter is trying to be conservative the underwriters have the obligation to price it fairly they are in a precarious situation because they want to set that at a price that reflects demand there are questions if it reflects fundamental value but if there is too vague a bub then that looks bad for the underwriter. Liz a somebody said i wanted in on the ipo as the average investor would you advise them to set out the first day . I would. Especially with facebook i would set out unless they are a real gambler. People like to gamble they will play against the odds and go for the money. For the most part it is high risk it will come down after the general market enters then Mike Facebook the average investor will lose their shirt. I would be careful. Liz i think this could be dangerous because where are the profits . You could take the chance on the potential but could this be a case study of just getting too excited where things could be in the overall market . I am not necessarily concerned with the lack of profits we are happy to invest with Growth Properties but the Value Proposition and that we asked many questions has not been substantiated most of the news is out twitter this is exciting and all those are relevant for price just not intrinsic evaluation and the assumption has to me they will have to be answered at the market will not be patient for ever with the company with no profits or no clear prospects where they could emerge from. Liz they do have advertising, promoted accounts and other opportunities where they could bring in the profits. Believe me fox business was one of the First Business networks to focus on twitter 2008 not even on blackberry nobody understood microbe logging only 140 characters but it could be a flash in the plea and a flash in the pan. Remember what happened with the. Com companies looked as if from great with excitement to get people out but we did not approach profits and that collapse was pretty pronounced. The reality is to have a property to perform well you need fundamental performance you have to grow the bottom line of the company. Remember when they take the money the bottom line those negatives before it goes positive because they will spend the money so we dont have a zero way for that line to go up and if it doesnt then the stock comes down. Liz the prices on wednesday goes public on thursday. What do you guess will happen at the outset professor . Satellite to speculate on prices but id like what rob is saying. Initially i know where it will open. Liz double . Honestly no. With the panel on facebook i was the one where the lowest target i thought that was too high. [laughter] liz i remember. I am more pessimistic now liz not the Container Store that is up one hunter . From Enderle Group and professor of finance economics from columbia. Great to have you both. The closing bell is just six minutes away we are up and we have the nasdaq winners including a cool car that popped up at a new jersey mall. . . [ male announcer ] tis the season of more. Re shopping. Mo dining out. And a with it, more identity theft. By the time this Holiday Season is over, more than a million identities may be stolen. Every time you pull out our wallet, shop online, or hit the road, you give thieves a chance to ruin your holiday by the ti youre done watching this, as many as 35 more identities may be stolen. You cant be on the lookout 24 7. But lifelock can. There relentless about otecting your intity every minute of every day. 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Order now and get a special holiday gift a document shredder to keep sensitive documents out of the wrong hands. A 29 value free. Because during the holidays, keeping your identity protected means keeping your family protected. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Liz well, lets look at nasdaq winners. Theyre topped by tesla. Names like sears. We have got Western Digital in there and ram gold research. Not bad as we move on. Adam shapiro in for. David asman today after the bell. It will be a good one. Well start quite a bit. Twitter and ipo. We went positive today. Liz nicole, petroleum we love Nicole Petallides we love our shorts. It gained momentum with five of 20 stocks in the index hitting record high . Thats right. We talk about the transports as economically sensitive index hiting a new high again, 4th time this year. Delta helped it along. Other names including alaska air. Jh hunt by is in the trucking business. Great day for the transportation index. Delta got a boost ahead of earnings today. The stock was up over 6 today, what a great move liz a company came out and raised entire sector. Steel dynamics hitting new 52week highs. Risk reward going forwardlooking better. Any risks about being overstocked in steel were already priced in. So we saw this group really taking off today, really stellar performers. David Anadarko Petroleum and Tenet Healthcare were seeing yeartodate numbers going up. Well watch for those in the four a. M. Liz finally blackberry struggling after the phonemaker announced stopping plans to sell itself. [closing bell ringing] the bells ring on wall street. Blackberry, smacked down. Look how stocks overall finished up. Dow jones industrials up by 23 points. S p 500 seeing a gain of six. Nasdaq also higher. Look at the russell 2000 a big gainer. Adam time for the front page news. Billionaire steve cohens Hedge Fund Firm sac capital agreeing to plead guilty in a sweeping Insider Trading settlement with the government the firm will pay 1. 2 billion on top of more than 600 million it already paid in penalties to the sec. Liz speaking of penalties Johnson Johnson stock declined today after the consumer goods giant agreed to pay 2. 2 billion so settle civil and criminal allegation that is it improperly marketed three of its prescription drugs. Adam twitter raising the price