And right now the dow is higher. But the s p is trading a bit lower. We should mention a lot of people are looking a t the moves weve seen in the 10year wondering if people woke up today, realized, oh, my god. Maybe tapering is tightening and stocks could have a tougher go of it. Well get into all of this coming up on the program. Also coming up, weve got two huge exclusive interviews on tap. Legendary investors jim chanos and bill miller. Their best ideas on a market many think is to fidefying grav looking forward to that. Today we get an exclusive read from zillows ceo spencer rashoff. Home sales dropped in the Third Quarter, we saw, for the Third Straight month. But zillow says that home prices are still on the rise. So what happens next year as the fed is tapering, presumably yields go up on the long end of the yield curve. That has an impact on Mortgage Rates. If Mortgage Rates are going up, what does that do to sales and home prices . Well talk with the ceo of zillow about that. Take a look again at whats happening across markets. S p down by about a point. Nasdaq lagging by about 11. But the dow is slightly higher here. Helped by strength, for example, in a name like chevron up better than 1 . Lets talk about where we go from here. Theres the s p down one point. Well see if it can finish positive in record territory. Joining us in on Closing Bell ExchangeHeather Hughes from sunamerica funds. Eric ritoban. Sam stovall. Scott cavanaugh. And our own rick santelli. Heather hughes, its a whole new day. Tapering is upon us now. Does this in any way change your outlook for the markets and the way you want to invest right now . Hi, bill. Yes. So global Central Banks over the past five years, weve pumped nearly 12 trillion into the financial system, right . Were way over this past is it now or never, can we deliver these results . So Money Managers will eventually learn to live on less liquidity right now. Wobbling is common when you think of this easy money crutch. Were getting off of the crutch. But are we really . Because were still expanding our Balance Sheets at a rate of 75 billion a month. So perhaps were really not pulling back on stimulus. 10 billion out of 12 trillion, not that much. You got to start somewhere, though. True, true. Good start, yes. Thats how things certainly looked yesterday. A lot of people liked the fact the fed said theyre going to be accommodative well after the Unemployment Rate fell to 6. 5 . Scott, i wonder to some extent if investors didnt wake up today, go wait a minute. How do we trust, for example, that this isnt that this doesnt amount to a tightening . Hat tip to craig whos pointing out the expectation for the first fed funds hike has actually moved up. You know, what happens with Forward Guidance next year . It remains to be seen and the 10year keeps drifting up towards 3 . Yeah. I look at it and say, look, i think the fomc tried to make it extremely clear that they expect to keep rates at extremely low rates through 2015. They made quite a bit of changes in their statement. I think they made it about as clear as they can that they dont expect to have shortterm rates change any time soon. It is interesting to note that intermediate rates or the 10year, spreads are fairly wide. And i think its been well behaved so far. Eric and sam, both your organizations had rather bullish calls for the stock market for next year. Does the tapering now change any of that . Let me start with sam stovall. What about your forecast for next year . Hey, bill. Our forecast is for, actually, more like a middle single digit advance. 1895 is our target that our Investment Policy Committee has placed oen the market for next year. I think one reason is because were concerned about the timing of what we regard as an overdue correction. If we get it out of the way early on, then certainly that gives us time to post a positive full year. Because it takes on average about four months to get back to break even from suffering through a correction. Youre not changing anything right now because of the t word being used . Thats correct. Our chief economist has a better batting average than ted williams. 2 for 2 saying no tapering september, tapering in december. Eric, what about you guys at russell . We havent changed it. We actually see yesterdays news and the reaction as good news is good news. Our expectations for next year, similar to sams, is about a 7 total return on equities. About 5 price appreciation. 2 dividend yield. Were going to actually have to see the Economic Data be good next year. Were expecting about a 3 growth rate. Real growth rate here in the states. About a 2 inflation rate. If earnings just keep up with nominal gdp growth, earnings growing about 5 plus the 2 yield we think thats a really good estimate for what youre going to get out of equities next year. Eric, youre not worried about this line from Adrian Miller going back to this point here that someone woke up the bond market vigilantes today and after the party yesterday now the hangover is starting to set in . Im not sure eight basis points of yield rise on the 10year represents a massive uprising of the bond vigilantes. I think the reality is that were also pumping a lot less supply in from a federal government standpoint. Were actually issuing a lot less debt. If you look at it, were still buying a very large percentage of the new debt issuance. I dont think were going to see the 10year misbehave. 3. 2, 3. 3 the end of next year is a pretty good expectation. Well get rick to weigh in on that. Gold hit a three year low today. Does that all fit the scenario here . Yeah. Well, the gold im asking rick. Im sorry. Im asking rick santelli. Im sorry. Oh, im sorry. Listen, in terms of gold, theres a lot of year end, theres a lot of profit taking, theres a lot of tax issues. Theres margin issues. And the fact that when something is falling like an anvil, who wants to be the first guy to put his hand out to catch it . When it comes to Interest Rates i would counter with our guest that 100 basis points in a 5year since may is something to consider. I think the most important aspect of today is certainly not the eight basis points or the 10, 11 basis points in 5s. Its the fact we have some yield curve flattening. Why is it important that 5year note rates are moving up faster than the long end today after what happened with the fed yesterday . Because the long end in my opinion pushed the fed into they need to taper or lose control of the market. If the microphone doesnt work, their control doesnt work. To see shorter maturities starting to buck the fed when they promised, you know, boy scouts honor theyre going to keep short rates low for a long time, to see a 5 year performing aggressively with higher yields is something the fed ought to pay very close attention to. Im so glad you made that point. There are people whove been watching the 5year and the way its gyrated and said, look, if this thing starts to get up towards 1. 8 maybe, this is some of the guys over at bamel, maybe thats indicate the fed is losing control here. Do you think thats overstating it . I think its overstating it because the steepener has been such a successful, profitable trade for 2013 that this could be year end activity and adjustment. But its certainly something to monitor going into the First Quarter of 14. Heather. Mutual fund bond outflow 73 billion through november year to date. When you think of, yeah, thats a big number. When we think of, okay, where are we since five years ago . 1. 3 trillion was pumped into the into fixed income funds. So 73 billion year to date. We still have a long way to go. That may also bode well for stocks in 2014. Are you let me ask you. Ill just ask you pointblank. Are you forecasting a much higher stock market for 2014 . You have been a little skeptical of the market here. Waiting for a correction of some kind. Yeah. I think that the way that the market reacted, even though its only at 10 billion and we dont want to use that t word anymore, i guess, the market seemed to digest this news okay so far. It may be a sweet spot for equities given the low but rising rate environment. You have low inflation and improving macroEconomic Data. The Federal Reserve we know is committed to keeping the short end of the curve, the federal funds rate, low for the foreseeable future. Zero. Rate is at zero. Eric, your favorite picks in this space . In equities . Well, we actually Like Health Care and our managers have been selling off consumer discretionaries. We were overweight for much of the year in that. Weve reduced that overweight. Were buying energy stocks. Because we think the disproportionate penalty has been taken out on energy stock prices. Hopefully the Price Movement were seeing in some of those integrated oils today is a sign of things to come. Look at whats happening with chevron. Explain what is to come. What is happening today in the space that tells you whats happening in 2014 . We just think too much cynicism has been priced into both oil and, frankly, the Energy Companies as a whole. We think their probability pictures and relative attractiveness in an improving economic environment will be rewarded in 2014. All right. Thank you, folks. If we dont talk to you later, merry christmas. See you later. Merry christmas. Heading toward the close. About 50 minutes left in the trading session. What did art say . The bias is sort of to the buy side here. Very small. About 100 million potentially on the sell side. Very small. The dow is up eight points. S p down about a point. Well see whether both can finish higher at record highs. How are some of the nations biggest Money Managers investing now that the fed is easing off the gas pedal . Coming up well hear from jim chanos and bill miller. Also, the average cost for a family of four to attend an nba game is more than 500. And to attend a knicks came here in new york an astounding 1,300. Is it now flatout unaffordable for regular families to attend games . Or is an improving economy helping that sticker shock . Outgoing nba commissioner, about to retire nba commissioner, david stern weighs in next. Youre watching cnbc, first in business worldwide. Americans take care of business. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. 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See your lexus dealer for exclusive lease offers on the 2013 ct 200h and, as a gift from lexus, well make your first months payment. Welcome back. Market not moving nearly as much as yesterday. That doesnt mean certain stocks are not on the move. Dominic chu has some of the names for us. Thanks, bill. Were going to begin with target which is moving lower after the company said hackers might have stolen data from some 40 million credit card and debit card shoppers who visited the store in the first three weeks of the Holiday Shopping season. Watch those target shares. Also Darden Restaurants lower after the company said quarterly profits fell 41 . It also said it would spin off or sell its red lobster restaurant chain. Then theres facebook move to the downside here on news the company was offering 70 million shares of stock in a secondary stock offering. This include 41 million shares for sale from founder Mark Zuckerberg whos going to use the money in part to pay his big tax bill. Carnival cruise lines gaining ground after posting a small but surprising Fourth Quarter profit after it tries to turn around its image after a series of mechanical problems and fires on three of its shipping earlier this year. A good day for conagra after the footd maker posted better than expected Quarterly Earnings and sales and reaffirmed its guidance for fiscal 2014. Lots of big stocks on the move today, kelly and bill. Over to you. Thank you, dom. David stern took the reins of nba commissioner nearly 30 years ago. As its chief executive hes delivered pretty handsomely for owners. The collective value for teams in his tenure has risen from 400 million in 1984 to 12 billion today. Its unbelievable the numbers and how theyve expanded. The league itself is expanding globally. Thats been a big focus for david stern. As he prepares to leave his post in february what is next for the nba . Joining us once again is well say it one more time. Nba commissioner, david stern. I remember when you took over for larry obrien. Those many years ago. Are you sad that youre leaving or are you can you not wait to hand this off to adam silver at this point . Neither. Im looking forward to the continued growth of the nba. Youd get me fired if i werent leaving for undervaluing our teams at 12 billion. Its well over 20 billion. Really . And the nba is in the midst of an extraordinary growth spurt. But the best may yet to come. Because weve got the Digital World where the nba is at top. Weve got globalization where our games are seen in 125 countries and 43 languages. And weve got a new Network Television negotiation coming up. So its just going to keep getting better. By the way, that was forbes that attached the 12 billion price tag on your teams out there. Just so you know. Do you believe everything you read in forbes . I believe everything steve forbes tells me. Everything. Okay. Thats different. You mentioned some of the expansion. Youve had the wnba. Youre now in a bunch of different countries. But the Network Agreements or what happens next with who carries the nba games is going to be closely watched. What are some of the new partners or new way well potentially be watching nba in the future . Well, i think that weve done very well with espn, abc and turner, a division of time warner. So well let commissioner silver and the owners decide that. But since that time, the streaming of our games, league pass broadband, has been terrific. So that we stream not only here but we stream a game a night in china. We stream all over the world to smartphones. So i think were seeing a move to digital distribution. You know, during your tenure, 30 years, weve gone through a period not just for basketball, but for all sports, where it seems all the numbers on the front page of the sports section have dollar signs in front of them. Theyre not just sports scores anymore. Its so apparent that all of the major sporting leagues are businesses. Ticket prices have gone sky high. You know, the leagues salaries have gone sky high. Is that a good thing or not here, david . Im not going to say its good or bad. I think i paid a lot more for my second house than i paid for my first. If i went back to buy my first, i couldnt afford it. I now pay more for a car than i paid for that first house. Is that good or bad . Thats life. Are you pricing out the average fan . Not just you, but other sports as well. Where we cite those ticket prices and what they are to help pay for the higher costs, right . Yeah. I think i think youre teasing out bad numbers. The first one was from forbes. I think this one was from another report out of chicago. If you want to come to a game, there are plenty of tickets. Dont average out prices using the court side ones of 3,000 and the upstairs one of 30. I mean, there are we can quibble over 10 or 20 here or there. The point is that the prices have gone up as much as they have. I dont know what the inflation rate is. But i would be willing to guess its higher than the average inflation rate in our economy today. Whereas salaries have not gone up. So you do have the average fan who finds it more difficult to afford to go to a game these days. The average fan has been provided for in the less expensive seats. And the average fan now can get every game on television and heres a secret. Most fans dont go to games. They watch them on television. And we felt the imperative was to make sure our games were distributed to the widest possible audience. The ticket prices are set by the arenas based upon something which cnbc is very familiar with. Its called supply and demand. Yeah. We know a little bit about that. David, im just curious. I mean, the influence of gambling on sports. There have been a lot offish shoo us with the nba over the years with referees. Now the nfl. Its one of those kind of 800 pound gorillas in the room no one really likes to talk about. What do you think should be done . Should it all be legalized and institutionalized . Or is it still a problem that needs to be stamped out . I i dont think its an enduring problem. I dont think that institutionalizing will have an influence one way or the other. I think the broader issue is that because the states and the federal government are so hungry for additional resources, that there is this Movement Towards legalizing gambling on sports. How that ultimately comes about if it does is a subject of great interest to me. Because you cant have 50 states rushing out to tell their citizens that they should bet the grocery money to make a bundle on sports. Last question. Salary cap. I know youre in favor of it.