For the first time ever. We have a big show coming up. Huge ceo interviews coming up. Exclusive talks with United Airlines ceo, jeff smisek and hes announcing a 2 billion costcutting initiative at a time when passengers are calling for an upgrade to his fleet of planes. Also do you pontduponts ceo el. Join us for these two interviews coming up. Yet, more to do about bitcoins amid a second day of hearings on the Virtual Currency on capitol hill, wild fluctuations continue. Look at the action in the last few days. It hit 900, after you and i did that segment yesterday. This is not normal behavior for anything like an investment. If they want to call it that. Is it safe for anybody to put their money in bitcoins . We take a very hard look at that coming up in a little bit here. Also, lets take a look at the market. A lot of action even though the market isnt far where it began the day. Dow jones industrial average with a fractional move, four points at 15,980. Down 15 points on the nasdaq, 3933. S p 500 looks like this with a decline there as well. Down two and change at 1788. Joining us on closing bell exchange, meg green, leo kelly, tim holland and our own rick santelli. Good to see everybody and thanks for joining us. Meg, let me kick it off with you. Not a lot of activity in terms of Price Movement today. Would you put money to work in these markets at these levels . That to me . Yes, meg. Would i put new money . Yes, of course. This is not a bubble in my opinion. Good value. When you see the real sign of a bubble, thats when you go to the cleaners and the ticker tapes on, thats when the doorman is giving you stock tips. Theres not enough confidence to have this as a bubble. Its just starting to come. Breaking news. We want to split over to the jpmorgan settlement just to come. Kate, what can you tell us . Reporter we finally received word from the Justice Department moments ago they have, in fact, reached a historic settlement with jpmorgan over mortgagebacked securities packaged and sold to investors prior to january 1, 2009. The settlement is for 13 billion in total and breaks down as expected. About 2 billion will be a civil penalty to the Justice Department. 4 billion or to the fh fa, 4 billion in consumer relief. That was a lastminute issue that involved assistance from h. U. D. , housing and urban Affairs Department in washington. Also, its the largest fine known for a single entity in u. S. History, according to the Justice Department. As part of that jpmorgan acknowledges it misrepresented the quality of certain loans to investors. Thats an important statement of facts, although arguable whether its tantamount to an admission of wrongdoing which is important to companies, because if they do it, it could usher the way to additional litigation. Theres no admission of wrongdoing, then . Reporter there is a concurrence with a statement of facts, that there were some risky, lowquality mortgages that were issued and packaged by jpmorgan. Whether or not nair going to say, we actually did something wrong, we actually committed some sort of fraud, i have not finished the documents yet. My understanding is they wont be saying so explicitly. A concurrence with a statement of fact. I love that. Some lawyer reporter this is what they did you guys. Some lawyer was up late at night trying figure that one out. Go ahead, finish it up. Reporter you may recall the 410 million settlement they reached, i believe it was september or late august, with federal Energy Regulatory commission. This was in connection with alleged power manipulation in a couple of states years ago. They paid a large sum of money and they acknowledged certain facts. But they didnt go out and say, we committed fraud, we committed wrongdoing. They did not say it was manipulation. My understanding is its a similar kind of language here. Kate s there any evidence that the major legal issues are now behind jpmorgan . I mean, this is this has been a neverending thing for its investors. So, do you have any clarity in terms of, you know, has the lowhanging fruit been picked or more to come in terms of reporter been picked off . Yes. Reporter im going to give you a doubleedged answer and i dont know what shares are doing as we speak but they seemed to rally leading into this longawaited announcement. I think investors like clarity. Theres still a raft of legal issues jpmorgan is facing. Pr right now they have reserves of 23 billion. They added more last quarter. Theyre more than covered for this settlement. Analysts estimate they could have 8 to 16 billion yet to come in mortgage litigation costs. In addition, they have a wide series of issues theyre still grappling with, ranging frommen inquiry the way they hired chinese sons and daughters 6 oe of officials. A lot of things theyre still dealing with. I think theyll be talking to investors later today. Exact timing to be determined. Cfo Mary Ann Lake and jamie dimon will be answering questions over the phone. Those on satellite radio, shares are fractionally higher. Off the highs but up 0. 75 . Kate kelly, thank you, on what has been a very long, tense settlement between the bank and jpmorgan. Tim holland, this is the financial sector. As they stay pay penance for financial fiasco of five, six years ago. Would you buy the big major banks right now . I think the sooner the big banks can put these issues behind them, bill, the better off for credit, the better off for lending. But where weve positioned the diversified equity fund and our Small Cap Fund is more toward smaller banks, below the 10 billion in asset threshold. The less touched by dodd frank and Regulatory Regime that all these banks, especially the big ones, are now living under. We just see greater opportunity still down on balance than up, the cap spectrum. Does everybody agree with that . What about you, leo . Whats your take in terms of what we heard from jpmorgan and this settlement . If theres more to come and whether you want to start buying this stock again after all of these legal issues. Well, ill concur with a statement of fact. That statement of fact is that the banks are going to do it again. They continue to go through one problem, find another one to get themselves wrapped up in. What you look at is the economys improving. Their Balance Sheets are much better than they were back in 20082009. Dividends will come back. Its a reasonable investment. Do we overweight the banks . No. Is this the end of trouble or the last headline well hear or the last interaction with an attorney general . I would be shocked if that was the case. Rick santelli, what do you you know, what are you looking at right now . Weve had a pretty calm market the last few days overall compared to the volatility we had recently. What are you looking at these days and what are you anticipating down the road here . Well, you know, lets run through it. As i look at Interest Rates, theyre up a couple basis points but the salient feature is Interest Rates are sticky. Stocks continue to break into new territory. My guess is theyll be unstuck at higher levels. Foreign exchange, dollar index has been following long rates. That makes some sense. Especially as we monitor the end, the only country doing more stimulus than we are. Last but not least, when it comes to bitcoin, i harken back to, i believe it was april 12th, when bitcoin traded up to 266 and within an hour it was trading at 104. Im all for free markets and free men. I think bitcoin should be allowed to exist but it is certainly a ponzi scheme, in my opinion. What comes to with what happened with jpmorgan, i guess, you know, 15 billion, another 10 billion and well arrive at the figure jamie dimon didnt want to take when he was forced to take the 25 billion. I think all of these exercises really make my head spin. I want to know what happens with the notion of civil litigation moving forward with regard to some of the big bank. Right. Theres a lot going there, too. Its true. Thanks, folks. Appreciate your thoughts on todays market action. Lets get a check on stock making big moves today. First up, lets talk about home depot, posted better than expected profits and sales and boosted its guidance. The company cited improving housing market. Also best buy shares taking a dive after the company expressed concerns about Profit Margins heading into this Holiday Shopping season. Earnings did beat expectations but the company says its competitors are spending a lot on holiday promotions this year, so they have to do the same thing. Also, Magellan Health services down 3 . Toward session lows after an arizona judge ruled against the company over a contract dispute with the states Health Services department. They were trying to challenge a 3 billion mevenlgts health and Substance Abuse contract awarded to one of their competitors and the judge dismissed the appeal. Thank you so much. Were getting some headlines out of Charlie Evans from the fed but not moving this market. Up six points. He says bountiful accommodations still needed. Qe purchases may be 1. 5 trillion. Fedex panded the Balance Sheet in an extraordinary way. Its phenomenal. Well see if it moves it as we head to the close. 50 minutes left in the trading session. Dow is up 20 points. It needs to be up 25 points to close at 16,000 or higher. Well take a break and United Continental planning to cut costs by 2 billion a year. This just after the carrier missed wall street expectations. Find out what cuss mean to passengers when we speak to the ceo, jeff smisek coming up. Also ahead what a great movie. Jpmorgan shares higher after announcing 13 billion mortgage settlement, but is this stock safe to invest in . Well look at that further. Are the legal issues finally in the Rearview Mirror . Both sides on the jpmorgan story later on the closing bell. Stay tuned. The world is changing faster than ever, creating new opportunities for those who stand ready to seize them. In a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, our flexible, collaborative approach helps forwardlooking companies not only run better, but run different. To give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because now more than ever, the future belongs to those who challenge the present. The dow is trying to do what it could not do yesterday, close above 16,000 for the first time, bob pisani. Yesterday carl icahn spoiled the party. Charles evans of the fed is doing his best to spoil the party. Take a look at the dow. A heard a lot of hangwringing about overbought conditions. I dont see a lot of action. I dont see a lot of selling going on. This has been a pretty small move in terms of the dow. About 60 points on the day. High beta stocks. Again, your groupons, netflixes, yelps, zillows. Theyre under pressure. Very little room for error in any of these high beta numbers. Whole Cloud Computing group under a little pressure. Same with 3d printers. This group was not among high beta names hit recently and all of a sudden today, kaboom. All stocks are to the downside. I havent heard anything from the traders ive talked to. Finally, United Continental ceo, i understand, coming up. Great year. They got an investor day going on today. Talking about cutting spending. The stock is up 4. 5 . Look at how the stocks have done this year. Airline is traditionally a loser investment for many years because there were too many airlines, too much capacity. Delta up over 100 , united up 61 . Whats power them, lower fuel costs, higher capacity, higher demand, higher ticket prices, throw in consolidation and you have a terrific year. I want to know, just ask him, hes not going to raise prices anymore, is he . Please . Hes right here. You just did his whole segment for him, thanks. United couldnt negligence telling investors today in investor day is will cut 2 billion in costs every year Going Forward. First united investor day since united and continental mergeded. The stock is up 4. 5 on ual. Joining us here at post 9 of the new york stock exchange, president and ceo of continental, jeff smisek. Hi. You said the airline is not growing. Does it still have growing pains from the merger . It does. With the 2 billion annual Cost Saving Program and minimum of 7 million ancillary revenue well be generating and growth in passenger revenue, were confident well be performing well financially. We expect to earn multiples of what were earning today. When you say 2 billion a youre, how many years . Over a fouryear period well ramp up the 2 billion a year. Where do the cost cuts come from . Job cuts . Walk us through where you can about 1 billion a year is in fuel alone. We have a very modern and fuel efficient fleet. Were continuing to modernize the fleet. Were putting split wings on 747s. 500 million will come from product improvement out of employees, 150 million from procurement, completely across the organization. Were becoming more efficient and improving the quality of everything we do. Number of fliers drop precipitously after the financial debacle of 2008. You cut capacity. Have you found the right balance yet . Are you there . Are you going to cut more capacity in the future . We intend to grow at less than gdp. Thats very important. Capacity discipline has been valuable in our industry. Its permitted us that and consolidation permitted us to become a business as opposed to just an airline. So, well continue to keep our Capacity Growth below gdp. We expect united to grow between 1 to 2 a year for the foreseeable future. Interesting. Bob just mentioned passengers and how theyre going to be impacted. Are you expecting to raise prices . How does the flier get impacted by all of this . The capacity discipline permits us to better management the airline, manage the mix of passengers on board. We can achieve higher passenger revenues and we have the highest unit revenue of anyone in the industry today. We intend to grow that premium to the industry by having a better mix of passengers on board airplanes. More highyield passengers, fewer lowyield passengers. Youve found a way to monetize the experience, though, with access to the gate more of course, yes. Buying this or that when you get on the flight. Candidly, it makes it less fun to fly than it used to be years ago. I think youve heard that before probably from passengers. What do you do to try its this intangible that can improve the experience for the passenger Going Forward. Not just you guys but the whole industry. You know what im talking about . Ill tell you what we need you were focused on making sure that we deliver a consistently excellent Customer Service. Weve trained all of our Customer Service agents at airports. All of our flight attendants. All of our Customer Care folks in Customer Service. Were going to have recurrent training. Were borrowing from the hospitality industry. Weve worked with a third party to help us define specific Service Elements that were going to train to and were going to audit and were going to hold our folks accountable and deliver a quality highquality, very consistent Customer Service, because its the experience of flight that matters. Sure is. What do things like like to you now . Can you look at bookings Going Forward . What are you expecting . Business is good. Bookings are good. I think that 2014 for us will be an excellent year. Were really excited. We explained to our investors today all the foundations we have been laying, whether its in the fleet or our technology or our people or product. Were very excited about the future of united. What does Us Airways American merger mean to you and the industry . It was left for dead and now its going to happen. Ive been consistent. I think consolidation is very, very good for our business. We for too long had too many Business Plans chasing too few customers. Driving down yields to blow the cost of the service. No business can make money if you sell for less than it costs you to sell your product. And consolidation has stabilized our business, capacity discipline has been good for our business, and our own Investors Holding our feet to the fire, demanding we turn cash to shareholders. Thats what well do as united. How do you return cash to shareholders . We announced today we begin to return cash to shareholders in 2015. As we get close to that date, well talk about how we do that. Jeff smisek, we see you on every flight before they tell us yes, we do. Thank you for flying. Appreciate it. Heading toward the close, 40 minutes left in the trading session with the dow, were up 13 points now. Maybe some of what Charles Evans of the fed said by keeping rates low may be helping this market as we head toward the close. Headlines just crossing. Talk about volatility, bitcoins have traded in a range of 9 00 to 500 in the last 24 hours. Well discuss if any investors should sign up for that kind of wild zid take bitcoins on united . Yeah i didnt think so. Remember when jack welch criticized the big decline before last years president ial election . Listen. Lets talk about how we get to 7. 8. This election is too important to let one number that might be corrected next month determine the outcome of the election. Well, as it happens, a new report is renewing interest in those claims. Whats the real story behind a story that the jobs report was doctored . Steve liesmans been digging into tha