Year. So will today make it six in a row in the red for the dow and s p . Maria, we only have two days left. Two trading sessions left in this quarter. A little bit of work to do today. Hanging on to a slight gain. Nike, verizon, visa leading the charge. Keeping the dow above water today. Spoke to a few Money Managers early. They said, look, we think the u. S. Market is fully valued at this level. What are the alternatives . We continue looking at the u. S. As the best house in a tough neighborhood. Thats why were seeing this market continue to streak higher even if we are seeing fractional losses today. My interview coming up with former president bill clinton. He t tells me how he would hand the debt ceiling with republicans. Would he negotiate . What to give on. What about how the president has handled syria. Bill clinton giving me frank answers on that and a lot more coming up on closing bell. I bet he did give you frank answers, maria. So we cant wait to hear from the former president. Jamie dimon goes to washington again. This time to the Justice Department. Did he bring his checkbook . Is 11 billion really the number for jpm to make its legal problems go away, maria . Yeah. Tough numbers there. Im hearing so many numbers on this. Theyre just higher and higher. So well see about that. In the markets meanwhile right now, take a look at where we stand with about an hour to go before the trading day ends. The Dow Jones Industrial average showing a gain of about 23 points here. Bouncing off of the lows as you can see at 50,296. Nasdaq, once again technology seems to be the leadership sector on the upside. Nasdaq composite, double digit move up 19 points. Half a percent. 3779. Standard poors 500 index looks like this. Up just about 1 1 2. Fractional move there. A lot of people taking to the sidelines as we watch the end of the quarter. Of course, well probably see positioning as we begin the new quarter and anticipation over earnings, scott. Certainly will. Stocks making a nice comeback today after that five day losing streak. Bob pisani, whats behind this little bit of a move . I hate to call it a rally up 24 points or so. Good news and bad news. Put up the screen. Full screen. The good news here, were up. The bad news, it could change on a dime. Theres an awful lot of Political Risk thats out there. For the first day in six days rates are up also for the first day in five. The two negatives i keep pounding on all day is the Political Risk in washington and very high complacency out there. Theres a lot of people who are long the market. There are very few people who are short the market. Theres very few people buying protection out there. The market has been trained not to seek any protection or not to short because it doesnt do anything. It just creates a drag. People havent made any money doing that all year. Everybody says heck with it. I think thats a little shortsighted right now. Something eventually could easily go wrong. Theres the dow. See that drop in the middle ooft day. Representative boehner, speaker of the house, came out and said we may not pass a clean spending bill in the near future. That caused the market to kind of drip in the middle of the day. Good news the ipo market is still strong. Record secondary offerings in the month of september. Take a look at some of these ipos today. Viv vivinint. 28 move up. Biotech industry, cloud computing, biotech, yesterday foundation medicine, cancer diagnostics company, they went public. 18. Look there. 35. The price has doubled in a day and a half of trading. Maria and scott, i think we do need bill clinton here to negotiate some kind of deal in washington. We need something, bob. Bring him back. Were tired of watching all that. Look, lets not forget, bill clinton managed to produce four, you know, balanced budgets. Four budgets as well as welfare reform. He certainly knows how to bring two sides together. We got into that in our conversation. Well see, bob. Thanks for that. Lets go to our closing bell exchange. Take a look at markets and allocating capital. Heather huks from sun america funds. Ron mullenkpamp who manages the mullencamp fund. Jim lowell and our own rick santelli. Ron mullencamp, let me quibegin with you. Youre putting money in a market thats 15, 16 times earnings. Whats your take on the value . We think the market in general is fairly vamed. We are finding individual companies we like at prices we like. Were fairly heavily invested here. Still feeling values. Interesting. Scott, sorry. Heather hughes is sitting with us here at the new york stock exchange. Why has this market been unable to do anything since the no taper day . Had one day, we gave it all back and then some. Then weve sort of today is basically a treading water day after five down ones in a row. Scott, youre right. It seems like theres still a lot of uncertainty looming. There are few key catalysts investors are watching going into year end. Markets are flat today. But weve had quite a strong year so far. Most believe that a deal will be reached in washington regarding the debt ceiling and budget talks. But i think the threat of a miscalculation of such should not be ignored. Maria . Yep. I mean, youre looking at a market that is waiting on earnings, jim lowell. Tell me about that. Whats your expectation for Third Quarter earnings . Were going to get those numbers beginning next week and the following week when things really pick u. Is this market priced for or do you think the earnings will surprise . I think the earnings could very well surprise. I do suspect well see some sort of slowdown. The reality, as bob pisani pointed out, policy risk is a big overhang. Look back to the last time the government was shout down. It actually was net positive for the market, significantly so. Just a handful of weeks after it reopened. The reality is, we pay a lot less attention to the headlines about political goings on and far more attention to the fundamentals. In this market, look, why buy an index fund which enables you to only buy the market at its peak . We are big believers in active managers who now how to ferret out opportunities in peaks and valleys. Were very confident that those managers will be able to do their job well Going Forward. Havent the active managers underperformed, though . In a world where etfs have, you know, and passive management have sort of taken front and center, are the active managers keeping up here, jim . Were up 25 this year. Even if you give john boeingle the due that 80 of active mcs underperform the market throughout their career, that number has never been proven. Its basically common wisdom. That leaves over 1,300 managers whose career track records are better than the average market and better than benchmark and peer groups. The key is to know how to find those managers and step up and invest in them and thats certainly what we do. Rick santelli, correct me if im wrong. It feels like the last few days weve been in a really small range. Really tight range on the 10year yield. What do you think moves fixed income in the days ahead . Is it more d. C. Or is it going to be earnings ultimately . What plays the catalyst there . You know, i think that the notion of less with regard to things like the fed is going to continue. Consider that for the latest week, weve had a little over 2. 5 billion outflows in bond funds. 34 billion in the money markets. This dynamic is still hot. If you look at a 5year note which looks like its going to break its streak of four down yields in a row, the 10s as well because theyre higher in yield, it all started on wednesday with the fed day. But the 5year was so well purchased because so many were short that the next day its yield was a bit higher. But its been moving down ever since. Maria, i wish i was with you with bill clinton. Boy, we got to really put a face on history. Do you think barack obama would have worked more with congress if he lost both houses in 2010 . Because thats what happened to bill clinton in 94. He might have gotten a lot done, but he had a bumpy road with health care. When he lost both houses, all of the sudden he seemed to triangulate more towards moderation. We certainly lack leadership there, yeah, definitely. With regards to the bond outflows, that trend continues even though Corporate Bonds caught somewhat of a bid as you stated when the fed decided on no tapering. You look at cause and effect. I cant imagine that there would not be some sort of negative effect in the future if youre suppressing rates for a prolonged period of time. Maria, going to make a point . Ron, we were just talking about active managers. Did you say you were up 20 plus . Yes. But the biggest tell us about it. Well, i want to make a different point. The biggest thing that happened this summer in my opinion was when the 10year Interest Rates went from 1. 6 to 2. 6. Initially the market took that took it down. What often happens when rates go up. I think Interest Rates went about twothirds of the way back to where they should be. Over a period of a couple months the market absorbed that. We had a great chance a week ago for the fed to step to take a first step at stepping out. They not only had their finger on the scale, theyve had their whole arm on the scale. Investors will not feel confident about investing until they see the fed working its way out of that so they can invest in the market and not in what the politics are doing. Ron, real quick. If you said you were up 20 this year, whats in your portfolio. Were up 25 . 25 . Whats in your portfolio . We own Good Companies at cheap prices. A return on equity averaging 18 and a pe of 13 . A fair amount of big banks including jpmorgan and city fwr group. A fair amount of biotech. Its pick and choose. What was interesting about the last quarter was the companies that had good earnings, the stocks did well. Companies that had bad earnings, the stocks did poorly. Thats what we like to see in a market that is driven somewhat by companies and earnings so much in the market the last five years has been driven by the politics and the fed. The fed is trying to lick a problem it cant lick which is employment. That remains the problem. They literally shifted their focus from the fed as a dual mandate. Keep inflation under control and get people employ. People are not being employed because employers are being squeezed yet employment should come from the private sector, you would think. Not the fed and artificially low rates. Thats the fed blames now were open to a place i dont think we have time to go. Well talk to all of you again soon. Maria i will say this, scott. Biotech. How hot is biotech . Ron mulenkamp is in there. On fire. One of the growth areas of the economy, no doubt. We have about 49 minutes to go before we close it up on the street. Dow holding on to a gain of 29 points. Wheres the s p 500 . Barely positive as well. What is this market telling us . If the blackberry offer from fairfax is 9 a share and the stock is trading below 8 right now . We will get to the bottom of that on the struggling smartphone makers moves. Find out what the future may hold there. Ahead later on in the program, dont miss my interview with bill clinton here at the listen global initiative. Wait till you hear his take on whats happening in washington in the face of a potential shutdown just a few days away. That and a lot more coming back on closing bell. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Stocks are on track to snap that five day losing streak. Kayla tausche breaks down the stocks leading the move today. Kayla . Yahoo is the stock the street has been watching today. Up nearly 5 on reports that ail alibaba you can see it right now. Up about 3. 5 . Yahoo is a mover on heavy volume intraday. Other widely traded stocks, bank of america, cisco, ge and intel. Most of those to the downside. Bed, bath beyond earnings beat for the second quarter. Stronger sales at all comparable stores. Revenue beat just slightly. Enough to send the shares up more than 4 . Despite outlook falling short. Ebay up sharply. Up 4 plus after announcing a plan to buy braintree. Paying about 800 million. Ebay plans to integrate braintree with paypal. Take a look at the s p biggest laggard today, down nearly 9 after the company said it will look to wind down a partnership with blackberry as its future remains unclear. Blackberry is jabils second biggest comfortable. Blackberry roughly flat throughout the day, down now about 1 . Meanwhile, blackberry has been for a long time been a source of National Pride for canada. Earlier today i sat down with the Prime Minister of canada. Prime minister Stephen Harper as they are looking for new funds and investors in canada. I asked him about investing in canada. By also asked him his thoughts on what might happen with the company. In terms of any acquisition, the government is not involved in the acquisition process unless its a certain level of acquisition thats done as a foreign acquisition. In that case the government would have to review the decision to ensure that its within our national interest. So that reason obviously im not going to comment on any potential partners. This doesnt fall into that category . It doesnt appear. As i say, it is an evolving situation. If it were a foreign takeover, the government would obviously have to examine it. So theres a chance you will be reviewing it . If if its for an acquisition above a certain dollar figure the government would review it obviously on broad grounds. But also also all decisions in the Technology Space would be reviewed on National Security grounds. Sfwl so the canadian government may now review a blackberry deal that involves a noncanadian company. This on the heels of the Canadian Firm fairfax making the bid for blackberry. Given the Stock Performance one wonders if this all may be a moot point long term for the company. Joins us is ben par from cnet and john spalizani. Ben, youre doubtful this deal will even happen. Why are you skeptical here . The ceo of fairfax seemed pretty confident about it. The thing about it, hes not putting up all the money for the 4. 7 billion deal. Hes just putting in the fairfax stake, about 10 . He has to go raise a lot of equity money. Then hes got to get loans in the range of, like, 3 billion from the banks in order to complete this deal. The deal just gets worse by the day. I dont see where hes going to get this money. Because its just not a good deal. John, does this deal happen . I mean, we have some great points from ben, right . They have to do due diligence. They have to try and raise the money. At the end of the day some of the people im talking to, you know, are of the opinion that hes looking for somebody else to really come in here. That he doesnt really want this thing despite the fact that he says he does. Well, i think one thing thats obviously going to be a black eye for canada if blackberry does go down. Its funny the Prime Minister was saying they might put a little question into its foreign ownership. At this point i think basically the way the valuation works, the patents are worth 2 billion to 3 billion tlrs. They have 2 billion in cash. Stock is trading below it puts us on par. In terms of who youre up against, byron trot, carlyle, blackstone, pa rel la wineburg. Theyre all looking at it as well as the cofounder of the company. So i would not bet against all those parties on that side. Isnt the market and the canadian government. I dont think the financing is going to be a big problem at this point. Just because we look at rates. If you want to play, lets say, libor plus its not about the rates. Nokia is at 25 billion. What are the fundamentals of the company . Lets talk about that. The fundamentals i dont think were debating the fundament aals of the compa. Valuation is there to get the cash. I also dont think you want to bet against the canadian government. Byron trot, some of the best Value Investors are looking at the company. Going back to nokia. Nokia, nobody thought nobody thought microsoft was going to buy out nokia. The stock was trading at 3. Now its 6. Valuation is 25 billion. Motorola bought was bought by google at 12. 5 billion. Were talking about lets step back for a moment and think about this. The financing is not going to be a problem. I completely disagree. Is it the same comparison . Its absolutely not. Why do you disagree . Its not. Nokia as a business and motorolas business were far better in terms of their in terms of both, like, the patent portfolio and in terms of the actual business itself. If youre talking about the actual value of the blackberry business, theres almost no value in it. People are carrying around blackberries and iphones. Brand loyalty is off the charts. The brand loyalty is eroding by the second. The deal gets worse by the day. Why he didnt put in his resignation at that time i dont know. John . John . Yes. How can you make an argument that theres such incredible brand loyalty around blackberry when, as ben said, their market share is falling apart . Thank you. Wheres the loyalty . The market share of blackberry right now is about the market share of nokia. Nobody ya nokia is valued at 25 billion. I see people carrying around blackberries and iphones waiting for something better. They rolled out Thorsten Hines had ceo hubris where he thought he knew best what the blackberry person wanted. He did not. The trends are completely different. The blackberry should 6,000 patents be worthless . I dont think so. The Windows Phone market share has actually been going up. The blackberry market share has just been going down. Theres no doubt that the direction continues to go down. You cannot compare it. Its apples and oranges. Were talking about will they get the financing. Thats what were talking about. But they get the financing based on whether or not the business is Strong Enough to be will they actually be helped by going private or something else. I think what happens is people are going to go through the due diligence. Youre going to see it goes worse and worse. We have a sixweek go shop period. Theres a good possibility they might go private. Thats the whole idea. The stock is trading below 8. Why is the stock trading below the offer price . Whats your take on this . My take is just that what is the market telling us . Its trading below 8. The deal