When things seem so good. Weve been there before. Are will legitimate reasons to worry and find protection for your money . Well take a much closer look this hour, maria. Then the twiter sphere. Are they leaving money on the table or being realistic about its own financial expectations . Were debating twitter coming up. Obama care still sick. The current prognosis, the website will be fixed, they say, emp by the end of november. Really . How do they know it will be done by then . Im still having trouble, maria, signing up. More questions than answers but well try to get some of those answers this hour. Yes, we will. Lets check where we stand in the markets right now as we approach this final hour ahead of the weekend. Dow joendz industrial average has been steady for most of the afternoon, gain of 40 movements, fraction at move, 15,539. We had Economic Data out. Nasdaq looks like this, up 11 points, quarter of a percent, 3940 on the nasdaq. Very steady for the last couple of hours. S p 500 looks like this. Once again unchartered territory, we see the s p 500 up 4. 33, with just an hour to go. S p on track to close at another record high. Bob pisani, looks like another winning week we have on our hands. Fractional gains in major indices and s p is up 0. 07 7 for the week. Nasdaq is outperforming today because amazon and microsoft after the close yesterday, good numbers. Theyre really dragging the nasdaq up there. When was the last time you saw microsoft up almost 7 on big volume, too . Amazon up almost 9 . Lets show you some of the other earnings reports. Overall, pretty good. Ups had a good number, beat by a penny. International package volume, up 6 . Decent number. Overall, a good report. Gaming stocks are all trading down. We had what looked like a good report from wynn resorts. They are good in macaw. What was not good is the las vegas part of the numbers. Thats why the stock is trading down. Mgm resorts and caesars is also on the down. Sands competes with wynn in macaw. We started with very low expectations. We were expecting earnings up 3 just a couple weeks ago. Right now earnings for the Third Quarter up 4. 5 , improving. Revenues are up 4 . These are slowly Getting Better as the quarter goes on. You know, thats been it is trend for a long time. Back to you. Good info. Stick around, bob, we want to get to our Closing Bell Exchange reques exchange, stephanie, kyle harrington, Michael Yoshikami and Rick Santelli joining the conversation with tyler and myself. Stephanie, what will set the tone next week from your standpoint . Next week we have two bellwethers, apple and facebook. Everyone is wondering if they can actually beat expectations. Apple expectations have been kind of increasing throughout the quarter. Facebook we know has had an enormous run. We also have some names like chevron and exxon and visa. Theres a lot of bellwether companies that are going to be reporting. We have about 25 of the s p. You also have some manufacturing data here in the united states. So, as well as in china. You know this week we got pretty good pmi data, so we want to see if thats going to continue. I think that is the reason why some of the cyclical stocks are rallied this week. Not only have pockets in industrial pace but macro data has gotten a little better. Michael, the market has had a great run this year, up 2 2, 24 on the s p, more for the nasdaq. Its not an entitlement we get those kind of returns year after year. My question is, is this years return in the market fundamentally being driven by fed policy or Something Else . And what happens if and when the fed starts to withdraw . If i would put a percentage on it, tyler, i would say twothirds of it is just a stumbling recovery. Onethird is fed policy. So i think what were looking at at this point is we have to mute our expect takiations next year. I think earnings will continue to get better over the long term, but we are running strong here at this point. Valuations are getting at least fairly valued at this point. And the fed eventually is going to pull the trigger on quantitative easing, maybe in february, maybe in march. I think that needs to mute investors expectations going into next year. We have a problem with reversion. Four out of the last five years the s p 500 has been up double digits. Four of the last five years. Of course, it was down 50 in 2008. Thats almost unprecedented. Historic average, you know, michael, maybe 6 growth in the s p 500 per year. So, were sort of stretching the normal limits of what we can expect. Thats absolutely right, bob. I think investors often times lose sight of that fact. Think about where were in the world today. Twitter is coming out with really no plan on how to have longterm revenue growth. The Company Comes out at 11 billion valuation. Were talking about how cheap the company is. Thats the world that we live in right now. Yeah. Well, the momentum players are in the lead. Rick santelli, jump in here. Momentum players have taken a bit of a hit the last couple of weeks or so, but theyve been the drivers of equities. What drives where you are . Treasuries have been driven, even with an Interest Rate subsidy. You cant look at the current level of rates as real level. They have been impacted, whether weak employment rate on tuesday, weak durables because of aircraft. I like what mike said. Mike said i would say a third of what were seeing is the fed. Imagine what would happen if you knocked out a third of the stock market. 5,000 points gone from the dow. What would that do . Listen, bob nailed it. These are abnormal times. Four of the last five years because weve had the fed for five years. Even though i think i wouldnt short stocks considering the current landscape and janet yellen about to take over the stage coach, but in the end, if we cant have mean reversion with normalization of rates, this topsyturvy world will continue. But anybody out there who thinks we could ride this without training wheels, if that was true, the fed would have turned the switch off by now. You know, rick, when i asked that question of michael, i was like a chess player. I was thinking a couple of moouflzmoves ahead, because i you knew where i was going, buddy. I knew where you were going. Rick has just put it out there, kyle, how do you feel about the idea that a lot of the return that weve seen, at least over the past couple of years, is monetary return not fundamental . I think im in ricks camp. I agree a great deal with what ricks saying. Having said that, if this is a feddriven market, we still have to make money. Exactly its exciting to see earnings come in where they are. You see the dow transports or Home Builders as a result of Interest Rates being lowered. These are exciting areas, i think, to spend some time and do some research on. Yes, i believe that the fed has and Monetary Policy has driven the marketplace four out of the five years but he we still have to make money. This is our chosen profession, and we have to do what we do. The truth is, from my standpoint, yeah, i mean, maybe it is monetary driven, but it is what it is, right . Right. The money is real. Exactly. Thats exactly right. You dont want to get in front of that train, do you . Theres no money in bonds right now and no money in stocks. People are being forced into stocks and holding their noses about it, but like everybody said, people are in the business of making money. Right now they see the most money being made in the stock market. Also, there are also very key themes that are working. If you look at oil service, if you look at some of the e p sectors, the growth technology, aerospace and auto. We talked about all of these for a long period of time. Theyre all delivering. Thats where the momentum is. Thats where the valuations are still some of them are still very attractive. You have to be nimble in this environment. You cant say, hey, the fed is pumping money into the system. Forget, it im not buying it. If you do that, you wouldnt have been in the market the last three, four years. Have you to be nimble. You dont want to get too far out on the edge because just as quickly, the money can get turned off. Things will turn and then you need to adjust. I dont know about like that old sinatra song goes, have you to remember who brought to you the dance, because the feds music can not go on forever. For all of these reasons you just dont see a lot of longterm commitments in this market. We appreciate it. Have a good weekend. In the fij stretch of trading. The Dow Jones Industrial average holding onto a gain of 25 points right here. Also ahead, despite this rally weve been nibbling at it, is there a red alert now . Coming up, well run down why some are seeing warning signs of a selloff and hear from somebody who says you need to get out of this market right now. Speaking of warning shortsellers are starting to target some of the hottest Technology Stocks even though the nasdaq has been on fire. Will the shorts lose their shorts on this one or do they know something that everybody else is missing . Thousands of pets have either died or become sick after eating treats made in china and now the fda is getting involved. Were going to hear from an outraged pet advocate who says were not going far enough to protection our furry friends. Thats later on the closing bell. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back. The nasdaq hitting a fresh 13year high today. Nasdaq 4000 Technology Leading the stock. Internet stocks like groupon, yahoo, zynga up in the double digits year to date. Wall street is reporting a number of shortsellers are betting against those very names. Did they see something others dont . With us is the man behind that report, Douglas Mcintyre and david saurby. How are you . Were great. David says the internet stocks still have room to run. You know, doug, let me start with you. Make the case for why the stocks youve singled out, zynga, groupon, yahoo and a couple of others seem to vulnerable right now. Well, two things. The first one is theyre up so much. The other one is that theyve posted lousy results. Even if theyre viewed as being better than consensus. Zyngas revenue is still dropping. Yahoo hasnt been able to convince the market yet that it can turn its acquisitions into revenue growth. And theres really no evidence right now that groupon situation is getting significantly better. You know, its interesting because i think when you look at the internet stocks of today versus the internet stocks of the 90s, arent you really seeing a different picture . We spoke to the billionaire investor who invested in so many big winners and made billions from it, eury milliner recently, and thats what he said. He was basically solidly of the mind that, yeah, in the last time we saw this euphoria, there wasnt enough to back it up, but thats the difference this time around. Do you agree with that, doug . Well, i think again, youve got to separate stocks like facebook where youre still seeing 50 revenue growth. Theyre highly profitable. Theyre throwing off cash. From junk stocks like zynga where its still very much open to question whether the company will even survive long term. You know, david, that was the doug teed up the point i was going to ask you. You really do have to be discriminating in stocks, obviously, but particularly in this sector. The stocks, zynga, groupon and yahoo have been over the years very fragile stocks. Doug just called them junk. But broadly speaking, do you see still value in technology, especially or particularly . I tdo because the Medium Technology stock is trading at 14. 5 pe ratio on next years profits. The Free Cash Flow is very abundant and growing at a high single digit pace. And on the internet space, to get in particular and having been a Value Investor in 1999 and 2000 and not buying into the story when they were priced for sainthood is the fact that names like google today, amazon today, plays in the entinternet and te space and ecommerce in particular, i think represent valuation to investors but theres i think theres value there. Theres an important difference absolutes value there and cash flow there. Theres an important difference is were not talking about google and were not talking about amazon. Were talking about stocks of companies that havent been able to demonstrate in any way at all that they can grow. In some cases, zyngas case, all they can show is theyre shrinking. I dont want to leave people with the misconception that theyre created equals. The stocks you mentioned, the companies you mentioned, have been promising year after year after year. Let me ask you this, let me ask you about the broad themes that are really driving these things. Mobility has to be one of the best innovations that our generation has seen in a long time. You know, mobility really changing so many industries. Look at mobility. Look at some other catalysts that are driving these names. What are the fundamental themes that are really the catalyst for so many names in the internet space right now . What would you say . Well, lets take mobility for a second. Its a doubleedged sword. Its nice to pick up a lot of people who use your service on smartphones, tablets, but one of the things thats happening now is that the ad rates on those are dropping precipitously. So, the migration to the mobile platforms is nice in terms of audience, but it can be very harmful in terms of revenue. So in some ways google clicks were up 30 year over year for the most recent quarter. While theres maybe not the same pricing, sheer usage. Retail sales this Holiday Season will be up 4 . Ecommerce in the low double digit category. In amazon, probably double what ecommerce is. Theres valuation opportunities there. Google made a very important point. This is going to get worse. That is, the value per click is dropping as they move to mobile. Now, thats going to accelerate over time. And i understand clicks may go up. But thats going against the headwind of value per click. In this market youd much, much rather be verizon or apple than you would be the Internet Companies that are running on those platforms. You agree with that, david . No, i dont. I think theres valuation opportunity in the other names that he just mentioned, but again, i never bought into the dotcom, dr. Coop mania in 90s, but i believe in the efficacy today of google being the best theyre going to be in their space, search and display im not going to argue its 1,015 now. Theres still value in these names, especially if you pay heed to valuation and cash flow. Theres cash flow and valuation in names like google im not saying its a dominant player. All im saying is theres no value in zynga and probably very, very little value in groupon. Im not trying to make a case of trashing a google even if i think it has some mobile headwinds. Is there any internet stock you would buy . Me . Yeah. No. Okay. Simple question, simple answer. Gentlemen, thank you very much. I love it. Very good very little valuation in tech today. Thank you, guys. Thats what makes a market, huh, ty . Good conversation. They were making distinctions. I thought it was very telling. Not a single one he would buy. 40 minutes before the closing bell sounds for the day, for the week. Stocks may be near record highs, but well next show you some major warning signs that could signal a selloff on the horizon. And then twitter hoping to avoid a facebooklike fallout by setting an ipo price range conservatively valuing the company or is it because the Company Business model does not justify the valuation . announcer at scottrade, our clients trade and invest exactly how they want. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked best overall client experience. [ male announcer ] when we built the cadillac ats from the ground up to be the worlds best sport sedan. People noticed. The cadillac ats 2013 north american car of the year. Lease this cadillac ats for around 299 per month with premium Care Maintenance included. Im on expert on softball. And tea parties. Ill have more awkward conversations than im equipped for, because im raising two girls on my own. Ill worry about the economy more than a few times before theyre grown. But its for them, so ive found a way. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. Ready to plan for your future . Well help you get there. Ido more with less with buless energy. Hp is helping ups do just that. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Well, the s p 500 may be hovering around record highs but dominic chu has been looking at warning signs that could signal this party might not last. What did you find . Weve talked to all kind of experts. They always say there are always caution signs in the marketplace. Here are three weve been highlighting throughout the course of the afternoon. Of course, here today on the closing bell. The first one is the Dow Jones Industrial average. Yes, its the barometer of the u. S. Market. Yes, this stock is or the stock index is near record highs but its not at record highs. Meanwhile, the s p 500 has hit a new record high. That dow lagging has some investors concerned. Theres also another big concern out there. That has to do with the nasdaq. The nasdaq 100 in particular. Theyre saying the nasdaq could be stretched. The nasdaq 100. It is trading about 13 or 14 above its longer term moving average. That has some investors concerned. They say can that last . Maybe were due for a pullback there. Another big one has