Problem is with apple. At any rate, heres where we stands right now. Sort of a meandering day for the markets. Some Economic Data out this morning. The market responding to that. Then a sideways move after that. The nasdaq benefitting from the rebound in technology yesterday. Up 11. 5 points on the thatnasda. The s p is also trading higher. There it is. Up 2. 5 points on the s p. Meanwhile, bullish sentiment at an eightmonth high right now. Equity allocation is still at the lowest level of the year according to the American Association of individual investors survey that was out this weekend. Stock in a waitandsee mode. Totally understandable until these fiscal issues are resolved. But dont just sit on your hands. There is money to be made if you can find the opportunities. Lets find out where they are in todays closing bell exchange. Everybody is in the water here. Scott is not there yet. Jeff cox, the market is still waiting on the fiscal cliff. Theyre still sort of held accountable for that right now. Yet, the Investors Sentiment numbers are the highest in a while. What do you make of that . This isnt just the most hated stock market rally ever as some have suggested. This might be the most hated stock market ever. Lets just talk about some quick numbers. Market Trading Volume down 19 this year. Weve seen 125 billion come out of equity based mutual funds. 300 billion go into bond funds. Really, no appetite for getting into this market in terms of the volume. Why . I think theres a general distrust of the markets. Fiscal cliff and all of the other stuff. Great story on the front page of wall street journal today talking about portfolio pumping. Another example of investors thinking theyre not getting a fair shake out of the stock market. Larry, you call that complacency, dont you . Thats right. Im actually shocked that these investors appear to be asleep at the switch in light of the fiscal fiasco looming in less than a month. You would think investors saying their concerns would be running for the hills or at least buying portfolio protection to protect themselves against potential disaster. We see the vix very low. Theyre not taking the type of defensive, decisive action. If we get a downgrade and if this happens, it will be terrible for the market. Thats whats potentially on the market, if we dont make a deal in washington. Scott, let me ask you again how you want to allocate capital then in that environment. I know george young is with us again, joining the conversation. I want to ask you the same question. Go ahead, scott. How are you investing right now . Maria, i think the best way forward is the way its worked since the bottom of the market in 2009. Risk assets are where its at. The fed is very supportive. The consumer is back and engaged. Housing is getting better. The fiscal cliff is actually constructive from the standpoint it causes people to come together and compromise because going over the cliff while we may do it for a short time period is not beneficial to anybody. It hurts everybody. So risk assets being, what, technology . What does that mean, technology . Not necessarily. We would stay with dividend payers. We would also dip our toe into europe into some very highquality, multicountry stocks there. Mostly on Consumer Discretionary stocks as well. George, we havent forgotten you yet. Scott, i have a question for you. Just noticed today france and germanys stock markets hit 52week highs. Were still wringing our hands over the debt crisis, and the equity markets are hitting new highs for the year. Is it too late to get into those markets . I dont think so, bill, at all. All the european markets are up for the year except portugal, which is up slightly. Even greece is up year to date. I dont think youre too late on that trade at all. In fact, i think, quite frankly, the structural changes that are happening in europe could produce growth for many years come. Where are you putting money to work, george . The fiscal cliff is sort of the uncertainty du jour. People are always worried about next uncertainty. You need to blow past that and think about where the next good stocks going to be, how can i invest, how can i participate . Taxes are likely to go up, but this is a lot of rattling. Both sides of the aisle would come together. Theyll figure out whats best. At the end of the day, they know they have to help the little guy, the consumer. Pool corp. Sells everything but the water. Theyre suppliers for the pool industry. We think theyll grow at 18 . They have very little debt. Its like an annuity. All the pools in this country are seven years old. We love that kind of stock. Bill, i take issue with the idea this is just saber rattling. If dividends triples, thats going to have a meaningful change in the way people allocate capital Going Forward. Were already seeing it with special dividends this year. This is a significant change. This is not necessarily just, you know, the upset du jour. This can change the economic landscape in 2013 and beyond. Thats not going to happen. What if we wake up on january 2nd, we go over the cliff why do you say its not going to happen . Human nature is to focus on all the worst possibilities. Call me an optimist, but i think things are going to get better. The economy is strong. Its going to get stronger. What evidence do you have these guys are not just going to go over the fiscal cliff . We heard tim geithner on this program yesterday when steve asked him, look f you dont get what you want, do we go over the fiscal cliff . He said absolutely. He said he would do it what happens when we wake up january nd, we go over the cliff, and the world doesnt end . That is so irresponsible. You have to be a longterm investor. Longterm stocks have outperformed bonds. With all do respect, george, are you one of those come play september investors larry is referring to . Id say were opposite of that. We never take anything for granted, but we bet accordingac. Bonds are trouble. A lot of people are going to lose a lot of money in bonds. You have to be prepared for that. Interest rates are going to go up. Dividends are going to continue to increase. The economy in this country is strong. Its going to get stronger. Even at 44 dividend tax . Its not going to go that high. If we go over the fiscal cliff, it does go that high. It goes to 44 . No, no. Dont think the worst. Less than a month, it goes there. I want to think like an optimist, but im not going to put rosecolored glasses on. I see whats going on. Theres no safe haven for capital or capitalists. You have to take some chances. My question here is what happens if january 2nd comes, we go over the fiscal cliff, and the world doesnt end and we kind of just get acclimated to this whole thing of just Going Forward with these higher tax rates . What do you do then if you get stuck in some of these positions . Im looking at a couple other numbers. Cash, 2. 6 trillion. I saw before i came out here that Corporate Bond issuance went over. I think there are a lot of ramifications. I think just to dismiss this is really inviting trouble. Think about all the Corporate Bond issuers out there. Theyre taking a window of opportunity because that window is going to close. Theyre running for the hills had to make sure they get all the bonds issued they can. If we go over the cliff, the cbo says were going to be in severe recession. Thats not business as usual. Its a contrarian fact that when people hate stocks this much, thats probably the time you want to own them. Fiscal cliff or not. All right. Im also looking at fundamental indicators too. If we go into recession, i think thats priced into this market. Well be watching, gentlemen. Thank you very much. We appreciate it. We have 50 minutes before the closing bell sounds for the day. A market thats up just about 11 points on the dow industrials. Very revealing interview. Apple ceo tim cook talking about steve jobs words of wisdom for running his company. Listen to this. He told me on a couple of occasions before he passed away to never question what he would have done. Never ask the question what steve would do to just do whats right. Up next, were going to find out if apple would be in better shape if mr. Cook started asking, what would steve do . Well get to that coming up. Then ill talk exclusively with the ceo of fedex. Fred smith is with me on how the shipping giant is bracing for a possible fall off the fiscal cliff. Its all later on the closing bell. Stay tuned. Welcome back. Take a look at apple here bouncing back today, almost up 1 after that big decline yesterday. That was the single biggest loss in four years. The stock is still down better than 20 from the highs, putting a lot of scrutiny on this company right now. In his first interview since taking over apple, ceo tim cook spoke exclusively with nbcs brian williams. Heres a part of that interview. Listen. How are you not steve jobs . In many way, one of the things he did for me that removed a gigantic burden that would have normally existed is he told me on a couple of occasions before he passed away to never question what he would have done. Never ask the question what would steve do, just do whats right. But given the recent slide in the stock and missteps like google maps, should cook start asking is what would steve jobs have done . Max wolf of green Crest Capital says tim cook could help himself by channelling more jobs. Nicolas carlson makes the cay that in some ways tim cook is even better than steve jobs. I think we have a disagreement going here. Max, you first. Why cant we just allow apple to change and become tim Cooks Company . I think it has become tims. That transition occurred prior to the passing away of steve jobs. I think its healthy. I think he should stand on the shoulders. Everybody in the tech world has something to learn from jobs. I think standing on the shoulders of steve jobs is great idea. I think wearing a dead mans pants to work is creepy and a terrible idea. He has to be different. He cant try to clone apple. After all, what makes apple different from all the people who want to be apple is it does its own thing. Mr. Cook has to follow in that great tradition. Mnicolas, how does he do tha . What kind of business experience does tim cook bring that perhaps steve jobs didnt . First of all, tim cook has done a lot of things that make apple a more human company, which is important for the brand in the long run. Theres been a lot of mess with foxconn in china. Hes paid apple retail employees more money. Thats good for apple and the economy. Finally, he talked today about bringing over more manufacturing of Macintosh Computers in the United States. Thats good for everybody. I think people will take issue saying tim cook is better than steve jobs, nick, dont you think . Its certainly hard to say anybody is better than steve jobs. Thats not really an option, whether or not steve jobs continued to be the ceo of apple. I think tim cook has done a good job. For him to try to be steve jobs, to try to be a product visionary would be a big mistake. His real skill is optimizing supply chains and running apples massive operations. Hes done a good job of really focusing in on who can be the next steve jobs. Thats johnny ive. Hes the person who designed all the hardware at apple. Now hes in charge of the way everything looks and feels. After steve jobs, theres a natural fight between whos going to become that next person. You have to give tim cook credit for going with johnny ive. At the end of the day, people want to know, is the innovation alive and well at apple . Are they going to continue to come out with these products that the world wants to sfwhie max, what do you think . Theres a possibility. They only do the big innovation. Steve jobs had many and huge failures. Hes not remembered for those. Hes remembered for the successes. You dont get the successes unless you take the big chances. Lately, weve seen them do a lot of what wall street wants visavis margins but a lot less of risk taking. They have to do that to keep being the apple that commands the premium on the price of all their goods that theyve historically had and that ironically the markets rely on them to have in order to get themselves to price forecast for the share prices above 600. Theyre still trying big, new, exciting things. Over the summer, we saw patent filings for things similar to google glass. Theyre working on these things. The difference between apple and google is theyre not public about it. We dont know what theyre working on other than these p patent filings. Trust me, theyre working on big, new, exciting things. Even wearable computers. Lets hope. We havent seen them though. Maybe. It just occurred to me, we talk about tim cook versus steve jobs and is the Company Different and how is it different and all that. Is it possible, max, that shareholders think they are still investing in steve jobs apple rather than tim cooks apple . Absolutely. Is that why weve seen this 23 decline in the stock recently as some of that is starting to dawn on them . Absolutely. Ill do you one better. Its a great question. I think analysts still think theyre forecasting and following steve jobs growth. The bad news is that its the wrong model. That era has ended. Theres lots of exciting things to do. The story is not over. The future is potentially very bright. Folks need to move away from maintaining the margin and benchmark everything against steve jobs. The margin is not defensible. Its snot just steve though. Its the talent steve attracted and whether or not thatt atalen is leaving or if its still there. What are you shaking your head about . I think johnny ive is certainly as much of a talent magnet as steve jobs. This person has an aura about him. I think a lot of people at apple and surrounding apple are very exciting when tim cook did a good job of selecting johnny ive instead of scott forestall. You hear reports of people applauding that johnny is the man now. Hes going to run the design over there. Its big news. All right. Well leave it there. Scott wasnt so popular either, which was part of the reason for the applause. Guys, thanks. Appreciate it. Catch the full interview with apple ceo tim cook tonight 10 00 p. M. Eastern on nbcs rock center. Looking forward to that. As we head toward the close with about 40 minutes left on the trading session, losing altitude here. How about zynga . The company known for its farmville game, of course. The company is now betting the farm on a different kind of game. Look at this. Tell you what, fred. Well play for a nickel if you want to bet. A bet . Bet . Bet, bet, bet, bet. Oh, yeah. Is it moving to gambling . Just what this beatendown stock needs. After weeks on the run if authorities in belize, Antivirus Software pioneer john mcafee has finally been caught, but you will not believe where he was found and how he was actually located. We have details on this bizarre story that gets more bizarre all the time. Coming up. [ male announcer ] when a Major Hospital wanted to provide better Employee Benefits while balancing the companys bottom line, their very first word was. [ to the tune of lullaby and good night ] aflac aflac [ male announcer ] find out more at. [ duck ] aflac [ male announcer ]. Forbusiness. Com. [ yawning sound ] welcome back. Check out zynga. The shareholders getting good news today after a tough year. The stock rallying after the company filed for gaming license in nevada. Julia boorstin with the story on this big bet. Over to you. Investors are clearly relieved to see zynga is trying to make money from Online Gambling. Getting a game license in nevada is a key first step. But a much bigger hurdle is the fact that Online Gambling is illegal in the u. S. Zynga could be sitting on a gold mine if even a few percent of its monthly poker players gamble. Even if Online Gambling does become legal, all the big casino owners would pose some very steep competition. Bill and maria. Indeed. Julia, thank you. Despite todays gains, shares of zynga still plummeting this year, losing some 70 . Does this news change the outlook . Lets Start Talking numbers on zynga today. On the technical side, mark newton with grey wolf execution partners. On the fundamental side, paul hickey. Does this make you want to buy the stock . Not really. The biggest hangup is the valuati valuation. For Growth Stocks in general, when a valuation isnt always a hangup, but the problem with zynga is by most metrics, its growth is either slowing or declining. It doesnt seem to justify that high valuation. All right. Mark, lets look at the chart. What does it tell you . What about this buttonhook rise . Technically, bill, the stock it starting to look better to me here, actually. If you look over the last nine months, the stock has dropped over 86 from the highs back in march. Now this recent down trend has given way to more consolidation over the last few months. If anything, the recent trend is starting to resemble what a lot of technicians would call reverse head and shoulders pattern. A close here would represent new tenweek closing highs. My thinking is the stock can move higher, take out november highs and get up to 330. That would be almost a 29 rise from current levels. The stock does seem to be rounding out a bottom, but the big hangup is the pop today on volume. We saw a similar move back in january when the stock jumped about 15 when the company said they were going to explore looking into Online Gambling. Investors who bought in on that news, which is a similar type of news as today, have lost 75 while they waited. Id like to see more confirmation in the charts and on the fundamental front before we got very attracted to zynga. Well, look, the stock has come back from 16 down to 2. If youve ridden this stock down, it looks like youve been dealt a bad hand. Just recently with the technical improvement improvements, my thinking is it looks like the board is filling up. You certainly dont want to fold here. My thinking is the stock can move higher. Nothing to say to that, paul . Yeah, i mean has he beaten you . Do we give the victory to mark . If youve been holding it from ten to two, whats the point in selling it . Ive said it before, ill say it again, you cant break your arm falling out of a onestory window. And the one thing in zyngas favor, maybe, is the one that have been holding up the best as far as their growth is the online poker segment. Thats seen the slowest deceleration in users. You know, that could be something for it. It