Apiece after the close yesterday. Checking the shares at the moment, up nearly 2, 21. 87. Facebook will likely make a bunch of new investor friends, because itll become a member of the s p 500, also the s p 100 next week, so this means facebook shares will automatically get snatched by some index and investment funds. Lets have a look, a huge session for the social network, 2. 58, thats 5. 25 , thats a nice jump putting the price at 51. 97. Now, unlike facebooks rally, lululemon having a sour day after it warned about a sheer forty be quarter. Fourth quarter. Straight to nicole pet lee d. C petallides. Reporter taking a look at lululemon, lori, looking you can see its down about 11 to 60. 78 a share. When lori says sheer, that was one of the many problems that lululemon has faced, they went back to the manufacturer, they had to recall some pants. That being said, theyve had to lower their fullyear numbers. They said Quality Control was an issue, getting the products back to the stores and on the shelves also challenging. And while they think things will go smoothly in 2015, they have to be realistic and say, well, all bad press has ultimately hit our stores and slower traffic. The amount of people walking through those stores as well. And dont forget, these are not cheap items. Those yoga pants at lululemon are 100. In the meantime, you also have the ceo stepping down and the new ceo coming in who came from lbma, also thoms shoes and louis vuitton, so has a lot of obvious experience, but there is some transition going on in this particular company. Back to you. Lori thank you so much, nicole. Well see you soon. Overall, markets are trading lower here, investors starting to lock in yearly gains. Is the santa claus rally coming to an end . I dont know, because we are seeing some late session buying here. Lets get to the bottom of it with our floor show, traders at the new york stock exchange, the cme group and the nymex. So Jonathan Corpina at the new york stock exchange, to you first. What are you seeing, theres some momentum building, correct . We had some Economic Data that rattled our market a little bit, normally not earthshaking news, but it seems like in this market has been fragile lately, and investors have been looking for opportunities to take profits off the table. Thats what we saw this morning. I think overall when youre going to look at the month and the end of this quarter as a whole, this market will continue to see the growth that we have seen over time. We talk about the santa claus rally, were getting fewer and fewer days left to trade, were going to start seeing some hedge funds that have been trailing the market so far have to up their performance, so more money will be coming in in the next few weeks. Were going to have a couple of short trading sessions that will affect things, but other than that, i dont think were going to get too panic in i finish panicky over the news. Lori surprisingly strong retail sales, so what does that say about the feds next move . You know what . Im going to look more at the retail sales than i am jobless claims. Thats one week it flipped up, it happens. Weve got to look at this thing over trend. I think the biggest fear is fed taper. The market seems to think it might happen, i dont know that it will. Even if it does, that should be a good thing. It means the economy can handle itself on its own, and that will lead to better corporate profits down the line. In the short term, maybe not. But im Comfortable Holding positions right now. Record hover do you mean it will announced at the meeting . Because its going to happen sooner rather than later, right, dan . Just to clarify. The big question right. The big question is will it happen next week. I think youve seen a lot of people say it will. I think more likely what youll see is the fed giving some clarify i case as to when it will happen. Probably not next week. Probably not. Lori i do want to stay with you for a moment, dan, because a lot of people are raising their Overall EconomicGrowth Expectation on the back of this better than expected retail read. Are you . Absolutely. I think youre starting to see things come together not only here, but in europe and in china. Europe is slowly working its way, china is coming back out of its problems. But our economy seems to be on solid footing. And despite this mornings payroll number, youre going to look at employment thats going to get better over the next six months. If it does, our economy is getting stronger. Lori okay, now. Thank you, gentlemen. To Jeff Grossman at the nymex, and i know you keep a close eye on crude, but im wondering if you could comment on the trade in gold since we saw such a big move lower today. The gold is trading in what i still consider a normal range here. Unfortunately, everyone has this idea that the market has to go back up here. They still remember the 1900 level or whatever. This market is working, in fact, i still think it could even work it way lower here. I think maybe were even talking into, lets say, the 1100s which scares everyone to death here. Im not really a real gold bull here, i never was, and i was a little surprised when we ever got where we did. Again, you cant find it. Now i think its a reality check here. It is a onethird retracement from the highs, and that makes everyone a little concerned about where this market can go from here. I think thats where were going to settle at the end of the year. Next year maybe some fresh money will come in and could give it a bolstering up to lets say even i would say now your upside potential is maybe 1350, maybe 1375 on the upside, that would be ap optimistic look for good. Lori isnt that a message perhaps that people are feeling better about the pace of economic growth, and theyre not necessarily looking for a safe haven if thats how you do play gold . One way, of course. Again, ive never felt it was a safe haven. Many people use it as a hedge. But again, ive never thought of it as a very good to me, its a very speculative commodity, always has been. Some people like to make it part of their portfolio which is a very good idea, but again, to consider anything strategic in the long run is really foolish, if you ask me. Lori all right. Um, lets get your take on the price of oil today, pretty much little change. Anything going to move that, jeff, before the end of the year . Oh, no question about it. The inventory figures are going to be key here. Again, we had a day where we were virtually unchanged, stayed in the mid to high 97 range. What was of note here was that the gasoline and heating oil against the crude got crushed today. Each of them was in about a dollar, and that shook up a lot of everybody assumes with this coldwet right now that shouldnt happen. What happens is Something Like this will happen, flush out some of the weaker players and probably next week when you really see the effect of this cold weather were having, you could have a reversal of this move today, and everyone will say, gee, i wish they didnt knock me out of the game, but thats how commodities trade. Lori you said it, sir. Thank you so much. Jeff, jonathan and dan, appreciate it. Lets talk about the auto industry. Speculation over whether fords Ceo Alan Mulally may jump ship. Fords board is anxious to know what his plans are. Just last week liz claman asked mulally whether he had any idea why his name keeps coming up in question to microsoft. The question seemed to catch him off guard. Take a listen. I think that people are looking for leadership, and i can understand that, but i love serving ford. Lori okay. Elizabeth macdonald has the latest on the story, she joins us with e. Macs bottom line. Reporter yeah. Thats a classic nonanswer from an executive, right, lori . [laughter] so we talked to people at microsoft, and heres whats going on. Heres the bottom line. Alan mulally has a lot of question marks over his name. Yes, hes got a great reputation. Hes charismatic, hes a visionary, hes a team builder, hes a leader. But what were hearing from insiders is this is what theyre looking for with this ceo and, by the way, microsoft really is pushing, the board is pushing to name a ceo by the end of this year, so theyrlooking for a person that has a lot of technical experience. Consumer devices, Enterprise Software, cloud computing, Business Software and business be development and strategy. Ill tell you this, the list is narrowing. Microsoft started out with a list of 40 names. Theyve narrowed the list down. Here are some of the guys who are still in the front running for this, Enterprise Software at microsoft, clo of microsoft, kevin turner, still in the running. Nokias former ceo still in the running. By the way, should be noted he ran microsofts Business Software division. And then the other thing, too, about steven is, you know, microsoft bought nokias mobile device, the phone be handset business. And the other name that keeps coming up is the former ceo of skype, tony bates. So im just looking at comments coming in over emails, basically what the names that are still in the running, the one that is really popping out is the Business Software development guy, steven. He is a real hot contender. Again, he bought microsoft bought nokias mobile division. But heres the thing, lori, there could still be a dark horse. It could be somebody else that we havent seen the name coming in to be the ceo of microsoft named by the end of the year. Were going to be staying on this developing story as the information comes in and bringing it to you, lori. Lori e. Mac, always a pleasure talking about unexpected i mean, just look at the news of gm and mary barra. Nobody expected her to be ceo. So its interesting. Reporter yeah, exactly. Lorii thanks so much, well see you soon, e. Mac. Now the closing bell rings in just about 49 minutes. Billionaire steve cohen has paid more than 1 billion in penalties against his firm, but is cohen really out of the woods . Charlie has an exclusive on that. And instagram comes out swinging against snapchat. In a moment, well tell you how this facebook business is trying to poach younger users from its competitors. If youve got copd like me, hey breathings hard. 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. Lori and some mixed data out today. The markets in flux, overall this year has been unbelievably strong for u. S. Stocks. Can the trend continue into the new year . Lets ask those questions to bruno, global x funds cofounder. Where do we go from here . Yeah, as you point out, incredible year in the u. S. , and, you know, when you thi about in the context of valuations are in the u. S. Versus international markets, we think well have a decent year next year, but probably high single digit. We actually like a lot of the international markets, better value and to some extent better fundamentals in some markets. Lori lets narrow that down. Where across the globe do you see the best investment value right now . So you have to be somewhat picky. We like Frontier Markets as a whole and specific markets such as nigeria. We also like some markets in Southern Europe. Obviously, its been a very problematic market for many years, but youve had valuation increases. Other markets in Southern Europe such as portugal which hasnt gone up in value very much and also china. Chinas a market where we see a lot of growth and really has underperformed the last couple of years. A lot of good value there. Lori you caught my attention with nigeria. Whats going on with the economy that has you focused on the countrys investment op . Sure. Nigeria has the benefit that its a domestic economy, its not really driven by the Global Capital markets. More diversification, and its a market thats growing very nicely. Again, you want to participate in some of those markets that are growing, that are not highly correlated with the u. S. That can give you performance, but also diversification. Lori most folks, most analysts, market wampers dont expect 2014 to be arepeat of the monstrous stock gains of 2013. Why is that . Are there other fundamentals going on . Well, the fed, obviously, whether it is first quarter, second quarter, were going to see taper next year. Thats going to hold the markets to, you know, to some significant degree. And also valuations. The market has run up so much that the valuations are not as attractive as they were at the beginning of last year. Both factors will make the u. S. Equity markets still somewhat attractive, but clearly not a 2013 type of year. Lori its frustrating in a way to fundamental bists, because if the fed tape efforts, it means tapers, it means the economy on the right track. The Employment Situation is moving in the right direction, perhaps a hiccup today with the initial jobless claims. Right. Lori why is that . Why cant we react, positive news with good news of late . Yeah. I mean, obviously, thats really the whole objective with taper, right . They wanted to flood the economy with liquidity, create gains across Asset Classes. Certainly, the u. S. Equity market. And so as the economy recovers and we can actually survive a taper, thats when were going to have it happen lori survive the taper, sorry to cut you off, but wouldnt it be fantastic that we rallied because people are confident were back on solid footing . Whats the likelihood of that happening . [laughter] youre looking at me like im out of my mind. I think it will happen, its already reasonably good footing, so to some extent youre going to have good effect, but clearly, liquidity is a negative for Asset Classes in general. Lori its interesting to see the Interest Rates rising. Do you think that thes the market taking matters into its own hands . Again, theres your reaction of some better economic news. Right. Similar. Its all related, but clearly Interest Rate rising will happen and will accelerate as taper accelerates. And, again, its correlated with the economy doing well, and we can survive higher Interest Rates. Both factors will offset each other. But again, you want to have a good economy that carries everybody. Lori we were talking at the beginning of the conversation about international versus u. S. How would you weight that as we wrap up here . If you look at the weight of the market cap of the u. S. In the global markets, its about a third, so thats about the kind of weight that you want to have. So, you know, you want to have a base weight to relatively underweight you whereas most people are significantly underweight in the u. S. Lori bruno, so nice to talk to you. Thanks for coming in. Thanks. Lori and the closing bell ringing in 40 minutes. Wall street powerhouse jpmorgan may be getting ready to take on bitcoin in the Virtual Currency game. Well ask dick bove whether we are on the brink of a payment revolution, if you will. And amazon gets down to earth after all the drone hype, trying to kick start a business that could take off during the christmas holidayings. Tell you all about it when we come back. Hi honey, did you get e toaster cozy . Yep. Goall the cozies. [ grandma ] with n fedex one rate, i uld ll a box and ship it r one flat rate. So i kn untilwas full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ttdd 18003452550 can take you in many directions. Searching for trade ideas that spark youruriosity td 18003452550 you read this. Watch that. Tdd 18003452550 yolook for whats next. Tdd 18003452550 atchwab, we can help turn inspiration into action tdd 18003452550 boost your trading iq with t help of d 18003452550 our live online workshops tdd 18003452550 like identifying market trends. Tdd 18003452550 now, earn 300 commissionfree online trades. Call 18886287118 or go to schwab. Com trading to learn how. Tdd 8003452550 sharpen your instincts with Market Insight from schwab tdd 18003452550 experts like Liz Ann Sonders and randy frederick. Tdd 18003452550 get support and ta through your ideas with our tdd 8003452550 trading spialists. Tdd 183452550 all with no trade minimum. And only 8. 95 a trade. Tdd 18003452550 open an account anrn 300 commissionfree online trades. Call 1888287118 to learn more. So you can take charge of ur tradg. Lori well, you might think that sac capital founder steve cohen is off the hook after paying more than 1 billion to settle that huge Insider Trading case against be his firm. Well, that may not be so. Charlie gasparinos here with the latest. The feds are still trying to make a case against him personally for being involved in some of these Insider Trading allegations that are affecting two of his former portfolio managers, Michael Steinberg whos on trial for a suspicious dell trade, and march the view mar toe mow matthew mar toe mow whos on trial i believe its in february. Heres what the fed, what we understand the latest game plan for the feds in addressing steve cohen and attempting to at some point they would like to bring charges against him. What theyre hoping is this both steinberg and martoma, they win cases against them, okay . Theyre both being tried in the Southern District of new york. The u. S. Attorney wins the case, they both face long prison term, and then at that point that long prison term gets them to cooperate. That is the current game plan. They basically, they dont think theyre going to cooperate now, but they do believe that if theyre facing the sort of specter of 510 years in jail, both of them at some point are going to say, okay, enoughs enough. What does this really mean in the end . Number one, i should point out that the steinberg trial is going on right now. It is, you know, even government officials will concede its not going perfectly for the government, you know . Im getting my information, i havent gob to the courtroom to gone to the courtroom to watch it and, you know, theres always a danger of speculating on the outcome of what the jury thinks based on press reports, but from inside the government, they are somewhat worried about this case. Barry burke, whos the lawyer for steinberg, hes a pretty experienced litigator, and hes poked holes in the governments case. There was a cree of, you know degree of, you know, evidence that was a little fishy in this thing. It was not as concrete as some of the other stuff involving Raj Rajaratnam which included wiretaps. This was a little bit of he said she said, particularly with the main witness. But its very circumstantial, and theyre worried about this. So you remember, this is not a layup case. I think martomas a little tighter, but still both of them have pled not guilty, both of them have very good lawyers, Richard Strauss berg, but the game plan for the fed is both of them do if it works out right, they both get convicted, they both go to jail, and at some point they both point the finger at cohen, and this means that the government still thinks cohen is guilty. Thats is or sort of upshot her. Lori isnt there a statute of limitations on this thing . Its a great question. Lori when will this end in. I dont know. The statute of limitations depends on who you talk to. Its kind of squishy. There is a statute of limitations lori if we have to wait for prison sentences for these other two well, at some point, its not going to matter, its not good, they still have to go to jail. The theory is they deliver Fresh Information that allows them to pursue a case against steve cohen. So the bottom line is im not saying they are going to pursue a case, im not saying he deserved, guilty. We should point out that mr. Cohen says hes not guilty, hes done nothing wrong. Hes not been charged criminally. The firm was charged criminally. Both of these gentlemen that are on trial have pled not guilty. But i can tell you from inside the government, they believe theres a case here if they can get these two guys, theyre still trying to get these guys to cooperate. Lori meantime, whats going on with the conversion to a Family Office . Is that happening . Yeah, it is happening. When you talk to people, theyre still out there actively investing in certain stocks. You know, its going to be a shelf of its former self. Its going to have to close down offices. Its not going to have the same type of now, theyre going to have 9 billion, but what gave sac its edge, people should understand this. What made it a great firm, take out the Insider Trading and inside information, sac was able to charge more fees than anybody else. 3 Management Fees lori well, that might have been related to, you know, the reputation they built with but think about it. If you could charge 3 on Management Fee instead of 2 and you can take back 50 of the profits instead of 20 of the profits as most hedge funds do, you can pay analysts to do a lot of stuff. Lori right. But its built on reputation and performance, and how did they get there, thats the issue. Well, yeah, but without that, being able to charge that stuff, right . You can only charge that stuff if youre running other peoples money, its going to be a different firm. Its not going to be as big or powerful. Lori what a story. Charlie gasparino. Okay, were just about 31 minutes away from the closing bell. Dow still down, off about 58 points, well off the worst levels of the session, worth a mention. And this, forget the drones. Amazon getting serious about its holiday business. Come up with a promotion that many of you might find hard to resist as we enjoy the fetestivities. And could bitcoin face a rival from one of wall streets most powerful banks . Were asking analyst dick bove about that. You make a great team. Its been that way since e day you met. But your erectile dysfunction itld be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You cabe more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immedte medical hel for an erection lasting more than 4 hours. If you have any dden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Buck lori and were seeing a slew of tech stocks trading lower today following a number of analyst downgrades and less than stellar earnings. Back to nicole to break down the tech losers today. Reporter right x. The he and the techheavy nasdaq, we do have some losers among the bunch including sienna, Cisco Systems and also oracle. Let me break it down here. Sienna, the Company Reported a quarterly loss of a million dollars, that stock is down about 6. 5 . And then it took down some of the sector along with it, Cisco Systems, for example, and dont forget citigroup this week started Cisco Systems with a sell rating. That never helps any company, for that matter. Now well take a look at oracle. Oracle, morgan stanley, the analysts there put it to an equal weighting and its up about 4. 5 or so. It looked fairly valued. There were some concerns about the Growth Potential for oracle and in particular based in california, of course, so basically fairly valued at these levels. So were watching oracle as well which is down about 2. 7 . But look, theres plenty of names that have green arrows, we talk about twitter, netflix, tesla, and those arent all tech names, but theres a lot of winners here today. The dows down 58. Lori and well off the worst with levels of the session. Thats what makes a market. How you consider it. Thank you, nicole. See you soon. Now this, move over bitcoin. Jpmorgan could soon launch a rival to the popular Virtual Currency after filing a patent for a stylepayment system. Will we all be using electronic currencieses in future . Joining us to talk about that and his new book, dick bove, Vice President of equity research. Dick, such a pleasure to have you joining us this afternoon. Thank you very much, lori. Lori okay, bitcoin rival, is jpmorgan seriously considering putting forth a Digital Currency rival to bitcoin . Yeah, i think they are. Lori yeah . I think if you think about bitcoin, its, you know, its a method of transaction, right . Its moving cash from one individual or one company b to another. And banks very jealously try to protect that area. So whether its credit cards, debit cards, just handling cash or checks, if theres a new method of moving money from one individual to another, the banks are going to get in it. And im certain jpmorgan will do it. Lori but theyre so volatile, weve seen bitcoin prices soar up and down, i mean, scary volatile. What are the opportunities, pitfalls . Is it likely to be regulated . Well, i think if jpmorgan does it, theyll definitely be regulated. [laughter] what youre dealing with, you know, is there are 7,000 reasons to believe that bitcoin will never succeed, never get off the ground. I mean, you and i can sit here and talk for hours about the things that are wrong with it. But the fact is it gets bigger, it gets stronger, it gets used by more people. And i think that that takes, thats what jpmorgans attention, and thats why jpmorgan will be in this area. Lori all right, lets pivot a little bit here. Whats the status of jpmorgan kleining up its legal woes . Cleaning up its legal woes, what it did or did not know to Bernie Madoff and, obviously, many ore legal issues. I think three to five years, maybe five to seven years away. Lori really . Yeah. Because there are, you know, there are literally thousands of lawsuits against jpmorgan at the present time. And each time it loses one, for example, this madoff thing is likely to set off all sorts of individual lawsuits against jpmorgan. So i think much as jpmorgan would like to just pay a be there a billion there, two billion there, they just cant do it. Asbestos or tobacco company, theyre going to be in court for a lot of time. Lori so no blanket settlement with all of these. Its unlikely. Too many suits on too many issues from too many different sources. Plus the government really hasnt gotten what it wants from q jpmorgan. Remember, the government is doing this because it doesnt believe that too big to fail is acceptable. Jpmorgan is the biggest bank in the united states, they want it smaller. And jpmorgan is not getting smaller. So the governments going to keep going after them, not to mention states, individuals, companies, etc. So theyll be in this thing for a long, long time. Lori and, of course, five agencies approved the volcker rule this week. How will jpmorgan fare under that, and really the Banking Industry in and of itself. I suppose this is the best place to bring in your new book called guardians of prosperity. How will the volcker rule affect the Profit Centers of these major institutions . Well, i think it depends how rigorously the fed or other agencies want to pursue the volcker rule. If they choose to take very narrow definitions of what is, you know, marketmaking activities, narrow definitions of how the Balance Sheet will be used to invest and most importantly narrow definitions of hedging, then basically if they do that, they can hurt the banks quite a bit. But theres no indication that they want to do that. So the net effect is i dont think the volcker rule is going to be terribly harmful to the industry, and i think that you really start to have to you really have to start thinking about how does it affect the people who do business the banks. In other words, how does it affect the price of bread . In essence, you take liquidity out of the market and you widen the spread between the bid and the ask, well, then the price of wheat goes up, the price of gasoline goes up, the price of money on a mortgage goes up. So individuals get hurt much more than the banks, i think, from the volcker rule. Lori interesting. Thank you so much, dick bove, always a pleasure. A thank you, lori. Lori see you soon. Amazon is getting aggressive about its wine business just in time for christmas. Today it launched a onecent shipping program for select orders placed on amazon wine. At first, about 100 wine sellers were participating offering more than 1,000 labels of wine. Amazon says its wine star offers the largest domestic Wine Selection online with delivery to 22 states and the district of columbia. The Online Retailing giant is also expanding its grocery deliverly business launching in San Francisco for the first time. The service is already operating in los angeles and seattle. Now, some might be wondering if amazons proposed Drone Delivery Service could be used for food and wine. However, so far the test drone used by amazon only appears to be capable of carrying small packages. Lets have a look at amazons stock as we close out the session, it is up 21 cents, 382. 40 a share. All right, we are just about 19 minutes away now from the closing well. Its been a real choppy session today. Instagram has come up with a bold new plan to try and stop teenagers from defecting to rival services. Our jo ling kent was at instagrams big reveal today, shell bring us the details next. And facebooks sure on a roll, the stock has just gotten another boost. Is it too late to jump in, or is there still time to profit from facebooks rally . Well ask an allstar panel next. Muck. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in theast five years making bp americas largesenergy investor. Our commitment has never been stronger. Lori and the fcc has voted 32 to continue talking about whether or not to lift the ban on using your cell phone b on airlines. Well continue to follow the story. The ban itself has not been lifted, thats not what this vote was for. This vote was simply 32 in favor of continuing to discuss whether or not the ban should ultimately be lifted. Continue to follow that for you. In the meantime, instagram has unveiled a new feature that lets users send images privately to up to 15 friinds. The companys ceo was in new york today to launch this new application which is called instagram direct, and jo ling kent was there at the launch, and she joins us with this. Jo . Reporter hey, lori. If you cant buy it, then challenge it, right . After snapchat spurned facebooks 3 billion offer last month, Facebookowned Instagram introduced a messaging service the ceo is calling revolutionary, but really it was a feature many apps already have. You can only get direct messages from people you follow on instagram, for everyone else, a photo message will send up if in your inbox. The ceo said instagram does not actively monitor what users send back and forth, but users can report disturbing images or block them altogether. Now, heres where the money is coming in. Brands that advertise on instagram like macys and michael kors and nike will be able to send direct photos to users who follow them. The ceo said its too early to talk about any other features of advertising that may happen on instagram direct. Now, when asked about sharing photos that selfdestruct like snapchat, for example, he said they could create ephemeral messaging in the future be, he left that door wide open. Taking a look at facebooks stock right now, its up more than 5 after the launch this morning, although he told me the system wasnt created with a specific age group in mind, facebook badly needs this to improve its appeal to teens, and instagram messaging is seen as one way to do that. Hoverly, by the way, i asked the Instagram Ceo who he really wants to see join the service, and right off, immediately he said without missing a beat his top choice is former Vice President al gore, and hes already asked him once to join, and he said hes got to do it again. Lori thats an interesting choice. Yeah. Lori thanks for that report. Reporter thanks. Lori sticking with social media, what a year its been for facebook, what a day. Shares of the social media darling are up more than 85 so far this year, another 5 just today, and thats not all. Facebook is the latest addition to the s p 500 index. So as was just said, the news sent shares soaring postclosed trading yesterday. What does this latest vote of confidence mean for facebook, and what will facebooks next big con we think so be . Joining me now is jason men wits and victor anthony, toe pia managing toe pia analysts. This is a perfect set up here. Jason, to you first, you own 3. 9 million 1. 9 million shares of facebook. Will you add or subtract to your shares . Where were going to continue to hold at the current price. Were very excited about the companys prospects for the future. If you look at the key variable, its helped the pace that they grow revenue. So we believe the expectation generally for the market in the stock today is that pace will decelerate throughout 2014, and we think that facebook can do better than expectations. We think that in general instagram is one way in which facebook can grow revenue. Thats one way, a second would be video advertising, and third i would just point to currently the Holiday Season that were experiencing right now, retailers know that shoppers are shopping online using their smartphones and tablets, and we think that facebook is way for retailers to reach shoppers in a way they didnt a year ago. Lori victor, we know its a big vote of confidence among wall street or many times its viewed that way when a company, a darling, if you will, is added to an index fund or mutual funds. Does that alone, lets stick with this point first, make you more bullish or bearish on facebook . It definitely increases my confidence in the company itself Going Forward. I think addition to the s p 500 essentially validates facebooks model and its fundamentals Going Forward. So, yes, it definitely gets me a lot more bullish. But fundamentally, Going Forward i think this is a solid platform. Its still early, and theres a lot of opportunities for facebook Going Forward, much of what youve discussed in 2014 i see as catalyst. Lori 85 growth in stock price year to date. There have got to be some risks there. I know you pointed to a few, jason, but ill let you follow up and tell me what concerns you about facebook. Number one, the teen issue. What it does, it calls into question, i think, the value of the business. If you make the assumption that teens fall off facebook and they never come back, ultimately, it goes to zero over time. But i think thats a faulty assumption. From what identify seen, the teenagers who have gone away to college after they come out of college, they actually jump back onto facebook as a means to reconnect with their friends from college. So i think investors were making that assumption, and theyre making a faulty assumption Going Forward. Lori you mentioned instagram, do you think this is the right move with instagram and itll allow facebook which, obviously, was spurned by snapchat to go head to head in that market, and will it solve the teen problem, if you will . I wouldnt point to todays announcement as being overly senate. What i think is the instagram platform has tremendous growth. 150 million users today, so growing tremendously with young people. And one way or another theyll keep experimenting and figure out a way to keep that growth going and to monetize it, and itll be more Initiative Like the one were seeing today. This is what Mark Zuckerbergs talent is, theres a billion users on facebook, and instagram is well on its way. Lori is there a company you can compare facebook too . A lot of people are looking at google, obviously, a long way to go, but is it on a similar trajectory . A lot of people say google started out this way. We agree that the company that is most similar to facebook we would say is google. When we think about what facebook might earn in the future, we actually use the ratios of expenses to sales that google has been able to achieve and apply that to facebook to value the company, and really its, you know, its the advertising platform that is most competitive with google today. Lori as i said, you have a 63, but where do you see it in 2014 . That 63 price target is for year end 2013, but i think, quite honestly, thats conservative because i have not factored into my estimates the autoplay ads which i expect facebook to launch in 2014 into my estimates. So i see a lot more upside for the stock. Lori serious guys with hard core analysis on whats really just a lot of fun for i know im not in the demo, but im part of the teen problem, i think. Of great to have you both. Thank you so much. Okay, the closing bell ringing in about seven minutes, and it has been a banner year for the stock market despite the selloff over the last couple days, of course. So where do you find bargains next year . Weve got barrons list of favorite stocks of 2014. Thatll be fun. Also, lady gaga, one of the highestpaid entertainers on the planet, so how is the revolution in online music affecting her and other superstars . Talks with industry insiders on after the bell. [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Became big business overnight . Like, really big. Then expanded . Orheir 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. Lori this breaking news. Right now wall street journal reporting that jones group is nearing a deal to sell itself to private equity for sycamore partners. It would value footwear and apparel maker roughly 1. 2 billion. Would value jones at 15 per share. There cintra day. 14. 63 is the stock price right now as we cruise towards the closing bell. David about did you her what happened . All hell broke through and things were a mess and falling from the ceiling. This is pullback, whether the heralded pull back we heard so much about. Whether this was a temporary moment of people trying to get cash for the christmas shopping. Lets go to nicole petallides. She is at the new york stock exchange. And we cant start with anything other than hilton. Hilton of course their ipo today. 9 , what is it, down to seven 1 2 gain now, which is great but when you think of the ip offs up 20, 30, 40 im wondering if those guys are a little disappointed . Hard to tell whether or not if theyre disappointed. It priced at the highend of the range. It priced early because of that. It is the biggest ipo in history for a Hotel Company and second largest this year so im sure they cant be too disappointed. Lori nicole, facebook posting gains after it announced it will join the s p 500. Thats right. Portfolio managers want to mimic the s p 500. They must buy all 500 stocks equally. They will be buying facebook and today we saw that evidence. David American Airlines, the newlymerged American Airlines didnt do too well today but all the other Airline Stocks getting a nice pop. What is up with that . Southwest airlines got an upgrade over at bank of America Merrill lynch. That was a great performer, as you noted united continental, delta, plenty of them, jetblue had a great performance as well. Oil of course pulled back a little i think. David actually, a couple of pennies ahead. Just a little bit. I will take that back. Go ahead. Lori i think we have time to talk homebuilders. Hovnanian particularly leading the industry higher after reporting earnings today, nicole. Weve been watching homebuilders. The hope trade going into the spring season. Hovanian came out with numbers. Profit increased and delivery. [closing bell ringing] david just in time for the closing bell. There we see it. It is not a pretty day on wall street although those dogs were pretty. We love the st. Bernards. Dont have the little kegs around the neck. Lori sure did . David it did . Good. Lori saw it. Have the eagle eyes. Russell 2000. We had one gainer. All the others doing, not so bad. Kind of an inverted pyramid. Biggest loss at the top. At the end you end up with a gain in the russell 2000. Dow jones taking it on the chain, a tripledigit loss for the dow. Lori s p flat, generous. David we can do that. Emphasize the positive with the russell 2000. Time now for the front page headlines a critical day for the ryanmurray budget plan on capitol hill with the house of representatives expected to vote on the deal, the final vote later today. Supporters believe it will pass with bipartisan support. Lori the Labor Department said initial jobless claims, surged, oh, no, mh