Transcripts For CNBC Closing Bell 20140110 : vimarsana.com

That down first trading day and expect us to turn around. What is the real story on this economy . Is it on the upswing . Or was that a jobs number foreshadowing were in for a rough patch. Some warning we got ahead of ourselves and things could be dicey. Well try to separate the fact from the fiction. Yes, we will. Youre welcome, america. And it turns out that if you shop at target, your private information may be more of a target than we knew before. That stock is lower today as we learn the Security Breach is much wider, the information even more personal. Up to, is this possible, 110 Million People affected, email, street addresses, names and phone numbers all hacked. Is enough being done to make sure this doesnt happen again at any stores . Were going to cover this incredibly important story coming up for you. Take a look across the major indexes. At the moment the dow is off 40 points or a quarter of 1 . The nasdaq is trying to buck the trend. It is just slightly positive adding a couple points at this hour. The s p 500 is just ever so slightly lower, bill. So a lot will depend on what moves as we head into the close. Lets talk about it and try so sort things out with danny hughes, steve sacks, mark ibel. We have liesman and santelli with us as well. Mr. Liesman, have you figured out this mornings report yet . Here is the deal, guys. If good news is bad news and bad news is bad news as we see today in the market, then the only thing thats possible is no news is good news. And thats why the market is going up on monday because theres no Economic Data reports until 2 00. We got that going for us. Was it weather related . What happened . We dont know. People think it was weather related but that doesnt explain all of the softness. Look, i rarely get to a point where im so forecasting a positive number. Every indicator, gdp, nfib, you name your alphabet soup, it was up going into this number. This is definitely an outlier, but what the trouble is is that this whole report, everywhere you look in the report, there is weakness in the jobs number. So youre going to have to wait until other data come along to really solve this. Im calling it a tie right now. Rick, if this were report is the exception to the rule if you look across all the other surveys, even the nfib survey that was positive for december, where is the treasury market taking it to seriously. Why is the 10year back below 2. 9 . Because at the end of the day you can talk to all the metrics you want, theres issue was gdp. Its calculated different. We have intellectual property. Its not necessarily the same. Ism, the law of the jingle, some of the purchasing managers that have survived some of the chaos last four or five years have maybe a little bit of a bias. All of these issues. To me its about jobs, jobs, jobs. Whether you have a job dictates whether you can buy a car, buy a house, whether you can contribute and pay taxes. It brings entitlement costs down. We can spin it anyway we want. I am so glad the treasury market still has a life even though its under the feds thumb, so to speak, because to see this drop in rates, to see a 30year bond potentially closing at the lowest yield since thanksgiving means i think the market is in sync and everybody has seen the movie bad news bearbears. Say that title over and over because thats the way in needs to be and ultimately the way it will be. Danny hughes, what do you make of this jobs report and what do you do with it then if youre trying to make money in this market . Investors sure really wanted to be dazzled. Everybody was expecting some out of the park number and what we got was a real disappointment. But bad news, as steve said, is good news because that means the fed will continue to do what its doing, and that the stock market likes that even though the market really didnt react at all today. Its been pretty quiet at the beginning of the year after such an incredible rise in disease. What do you do . You have to look long term. These are some flakey numbers. If youre looking at this number to make a decision on trading something, unless youre a High Frequency guy, look somewhere else. You have to look longer term at whats happening. Mark, what do you look at then . How do you get the signal from all the noise . Yeah. First of all, i think to ricks point, i think the bond market is having a reaction i would have expected. I think the stock market is not reacting because it was such a bad number. It doesnt know what to do with it so its going to wait for another number. What would have been interesting is if we hadnt started tapering last month, what would the bond market be doing today . I think by the fact weve tapered, theyre not going to reverse that decision. Were getting some reaction but not too big of a reaction. Thats assuming taper will make a real job difference in the end. Im not answering whether it makes a difference or not. Im with you. If we hadnt started taping tap taperi tapering. You have created some possibility of a pause in the taper. The idea that bonds would sell off makes some bonds would rally makes some sense. What stocks would do with it is anybodys guess. Steve, do you really think the bonds were bought because they think theres more purchasing or theyre going to extend the program . Ill tell you what. Every trader i talked to, even if he trades with the fed, they all say the same thing, steve. The bigger the trader, the l louder they say it, the fed wants out of qe. I think thats right. But the idea theres the possibility of acceleration certainly comes off the table with this weak number. This is the only jobs report theyre going to get between now and the time they meet in january. It could still happen, rick, but if there but, steve, why does a James Bullard then come out and say that despite the fact that we just had the Unemployment Rate drop the way it did and for the reasons it did that hes comfortable with the fed keeping a 6. 5 target, that hes comfortable with whats happening in terms of the pace ive explained this a bunch of times is it just a phenomenon of bullard being bullard . No, i think what the fed wants you to know is that it has a plan and the plan is to taper by 10 billion a meeting. And its going to take a bit to get it off it. This number is not enough to get the fed off of its plan right now. Agreed steve. I think thats the point. When we take a big step back and look at the data today and look at the whole picture, you got to remember the tenyear average Unemployment Rate in in country is like 6. 4 . To read so much into one data point today particularly given all the possibilities of seasonality within it, i think the bond market is just hypersensitive to this type of stuff right now. Whats the average Participation Rate over that same period . Thats your apples to apples. Im sorry, rick . The Participation Rate, whats the average on that . Thats where the rub is. You cant say the average rate is 6. 5 when you had a significantly higher part of the population that can work actually working. And i dont disagree steve, thats why id like to know why isnt the fed coming out and changing the way its describing its goals . Why does it maintain its focus on that rate . But it certainly did, kelly if the fed could put in a caveat to their statement, they should basically say unemployment at 6. 5 as long as its dropping for the right reason and the way its calculated if everybody is looking if everybody who is looking for a job stops looking it theoretically goes to zero but thats not what we want to see. I think its not going to be 6 , i think its closer to 5. 5 . Sl surely you were paying attention to the last meeting where the fed said it was a threshold and bernanke has said several times that 6. 5 is a soft number, that how the fed react at 6. 5 , that 6. 5 is any 23478 y number you want it to be at this point. The fed has moved well off it in its rhetoric at this point. Steve, do you disagree with that, that its a much softer target z target . No, i dont disagree. I think ultimately thats the right way to go about this. We got to take a big step back. We have to remember that the fed is attempting to unwind the single largest Balance Sheet in the history of central banking. This is not an exact science. Theres going to be a lot of art involved in this as opposed to pure science. Youre going to get overreactions in the bond market. Youre going to get underreactions in the equity markets. Its important during this whole process to really take a step back and look at the broader picture all of the data. Thats the key, right . If you were to convene the closing bell open market committee, rick is the one thats worried about the Participation Rate and suggests thats a lot of softness in the jobs market. If that is, indeed, softness in the jobs market, thats a reason not to move when you hit 6. 5 . Its because theres excess slack in the job market. You keep assuming that the quantitative easing programs are getting some kind of cost benefit to whats happening in the labor market. And once again yes, governor santelli. The biggest problem we have is how do you reeducate 10 Million People. It really isnt about keeping Interest Rates low for the banks, is it . I think youre seriously onto something here which is the following. To my mind there was a point to which what the fed did mattered a lot for employment. When you get to a certain point, and i think we may be nearing that point, there is not as much that qe or anything can do to put the longterm unemployed back to work why do you think what about whats that . What about the remarks he is among those who believe the fed here is the problem, right . Part of what the fed has decided is because the fiscal side isnt doing nothing, they have to do at least something. And thats something that anybody can criticize except to the point when you think that somebody ought to be doing something for the unemployed in this country, and if its not the fiscal side, then its going to have to be the monetary side and then the cost benefit analysis become not what rick wants it to be. You know what, saying you have to do something even if the something isnt working, you know what . Thats what 12yearold kids say. Im sorry if i can get i dont know whats going on here they go end. If you can give me 20 dips on the 10year or 20 bips or 25 bips when it comes to long term rates, i will take it in the absence of nothing going on across the street in washington. I never want to say that on a day where the treasuries rallied the best customer Performance Today was the federal reserve. They made more money than anybody today. Any hedge fund times five. And they sent 77 billion of it to the treasury. Back to the taxpayer. Final word. Please take us out, governor hughes. I think the exciting i want to go the exciting part of all this is were seeing growth in startups, in innovation, and entrepreneurialship in america. If thats what it takes, if it takes getting away from all these corporations and their big jobs issues and we have to go back to work and innovate in america, then thats a good thing. Couldnt agree more. Lets have promises to coast to coast. If its good for five cities, its got to be good for 50 states, right . There you go. Everybody have a great weekend. Thanks, guys. Rest up, rick. Were not done yet. By the way, we have a developing story in the Media Industry right now. Dominic chu, what do you have for us . We want to you bring you the latest. You saw earlier that areo and all the companies that are going against it, that cbs, thats 21st century fox, abc, part of disney and comcast Nbc Universal Parent Company of cnbc, they are all trying to go after aereo in a Supreme Court case. The Supreme Court has agreed to hear the aereo case. We have statements. Cbs says in a statement, we believe that aereos Business Model and similar offerings that operate on the same principle are built on stealing the Creative Content of others. Were pleased our case will be heard and we look forward to having our day in court. We also have a statement from aereo founder. He says in his statement, we said from the beginning it was our hope that this case would be decided on the merits. He also goes on to say that we believe that consumers have a right to use an antenna to access over the air television and to make personal recordings of these broadcasts. We remain unwavering in our confidence that aereos Technology Falls within the law and our team will continue to work hard to provide our consumers with best in class technology. So, again, cbs and aereo two opposing parties going to be heard in the Supreme Court issuing statements. Well bring you more details as this develops but a still interesting story for all of news the media business. Absolutely fascinating. A lot of it goes back to the Business Model. Its moved away from advertising, more reliant on retransmission. Huge implications for the business. They have called the bluff of the industry. We have a dow thats down 18 points, but the nasdaq is strengthening, up 10 with about 50 minutes left in the trading session. A todays weak jobs report a warning sign that last years historic rally was incorrectly betting on a big economic recovery this year . Well get into that next. Also, well hear from a guest who says that horrible Winter Weather really is to blame for that weak jobs number and the economy really is starting to heat up. Hell make the case coming up. If you want a good paying job, well, run for congress. For the first time ever, the majority of lawmakers in washington have a net worth of more than 1 million. Robert frank says dont get outraged. Its really not that much money. Hell tell us why coming up on the closing bell. Keep it right here. Youre watching cnbc, first in business worldwide. Tdd 18886486021 there are Trading Opportunities tdd 18886486021 just waiting to be found. Tdd 18886486021 at schwab, were here to help tdd 18886486021 bring what inspires you tdd 18886486021 out there. In here. Tdd 18886486021 out there, tdd 18886486021 there are stocks on the move. Tdd 18886486021 in here, streetsmart edge has tdd 18886486021 chart pattern recognition tdd 18886486021 which shows you which ones are bullish or bearish. Tdd 18886486021 now, earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 tdd 18886486021 or go to schwab. Com trading to learn how. Tdd 18886486021 our trading specialists can tdd 18886486021 help you set up your platform. Tdd 18886486021 because when your tools look the way you want tdd 18886486021 and work the way you think, you can trade at your best. Tdd 18886486021 get it all with no trade minimum. Tdd 18886486021 and only 8. 95 a trade. Tdd 18886486021 open an account and earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 to learn more. Tdd 18886486021 so you can take charge tdd 18886486021 of your trading. If you have a business idea, we have a personalized legal solution thats right for you. Hell tell us why coming up on turn your dream into a reality. Start your Business Today with legalzoom. And shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. And that is the moment that driving the lexus gs will shift your perception. This is the pursuit of perfection. Will shift your perception. I just knew from the getgo that i was. Flat out getting a good deal. When youre ready to buy a car, save time, save money, and never overpay. Visit truecar. Com welcome back. Those huge gains in the stock market last year in part due to investors betting the economy would kick in higher gear in 2014. If the jobs report is any indication the market bet wrong, will we see a decline in stocks this year . Lets talk about that with matthew slaughter, former counsel of the economic advisers. Rich peterson is director of valuations and risk strategies at s ps capital iq. In the absence of any other data, this report would be disappointing and surprising. Y you have to take a broader picture. You look at the decline in mortgage delinquencies. Lowest in five years. The trend, revisions in the prior two months of 38,000 jobs. Point well taken but the fed has told us no number is more important than jobs. No number is more important than 6. 5 , but that 6. 5 is a soft number as was said in the previous statement. That 6. 7 is very much a function of labor force Participation Rate. Thats been going on for a decade. 25 to 54yearolds, its over 80 . Matthew slaughter, how strong, how resilient, how fast growing is the u. S. Economy today . Great question. Its growing but not as fast as anyone would like. So i think a big challenge is the fed helps the economy. We see this throughout 2013 and earlier years, but Going Forward, faster Economic Growth is going to come from elsewhere in washington hopefully. Its going to depend on what congress and the white house does with issues like tax reform, immigration reform, hopefully this is not as good as it gets. We need it to be better. The fed has said they dont expect there to be as much fiscal drag this year meaning they expect congress to get there. Thats right. But its not just the overall budget deficit. Its other things related to that. So its the tax regime we have. Many people on both ends of pennsylvania avenue have acknowledged our business tax code in the u. S. Is really complicated and high burden for small and global businesses alike. Its those type of policies we need to get job growth faster. Rich, one way or people to find of look to earnings season, for example, and figure out whether the economy actually is strong, demand is picking up or not, is to watch the revenue numbers here as well. In other words, are companies seeing sales increase and not just cutting costs in order to hit that earnings figure . Its early, its going to take a while to tell. But is it your expectation that thats happening, that the pie overall is getting bigger . Its incremental. Talking about Fiscal Health in washington. Its 2014, its election year. The odds of that happen Security Breach<\/a> is much wider, the information even more personal. Up to, is this possible, 110 Million People<\/a> affected, email, street addresses, names and phone numbers all hacked. Is enough being done to make sure this doesnt happen again at any stores . Were going to cover this incredibly important story coming up for you. Take a look across the major indexes. At the moment the dow is off 40 points or a quarter of 1 . The nasdaq is trying to buck the trend. It is just slightly positive adding a couple points at this hour. The s p 500 is just ever so slightly lower, bill. So a lot will depend on what moves as we head into the close. Lets talk about it and try so sort things out with danny hughes, steve sacks, mark ibel. We have liesman and santelli with us as well. Mr. Liesman, have you figured out this mornings report yet . Here is the deal, guys. If good news is bad news and bad news is bad news as we see today in the market, then the only thing thats possible is no news is good news. And thats why the market is going up on monday because theres no Economic Data<\/a> reports until 2 00. We got that going for us. Was it weather related . What happened . We dont know. People think it was weather related but that doesnt explain all of the softness. Look, i rarely get to a point where im so forecasting a positive number. Every indicator, gdp, nfib, you name your alphabet soup, it was up going into this number. This is definitely an outlier, but what the trouble is is that this whole report, everywhere you look in the report, there is weakness in the jobs number. So youre going to have to wait until other data come along to really solve this. Im calling it a tie right now. Rick, if this were report is the exception to the rule if you look across all the other surveys, even the nfib survey that was positive for december, where is the treasury market taking it to seriously. Why is the 10year back below 2. 9 . Because at the end of the day you can talk to all the metrics you want, theres issue was gdp. Its calculated different. We have intellectual property. Its not necessarily the same. Ism, the law of the jingle, some of the purchasing managers that have survived some of the chaos last four or five years have maybe a little bit of a bias. All of these issues. To me its about jobs, jobs, jobs. Whether you have a job dictates whether you can buy a car, buy a house, whether you can contribute and pay taxes. It brings entitlement costs down. We can spin it anyway we want. I am so glad the treasury market still has a life even though its under the feds thumb, so to speak, because to see this drop in rates, to see a 30year bond potentially closing at the lowest yield since thanksgiving means i think the market is in sync and everybody has seen the movie bad news bearbears. Say that title over and over because thats the way in needs to be and ultimately the way it will be. Danny hughes, what do you make of this jobs report and what do you do with it then if youre trying to make money in this market . Investors sure really wanted to be dazzled. Everybody was expecting some out of the park number and what we got was a real disappointment. But bad news, as steve said, is good news because that means the fed will continue to do what its doing, and that the stock market likes that even though the market really didnt react at all today. Its been pretty quiet at the beginning of the year after such an incredible rise in disease. What do you do . You have to look long term. These are some flakey numbers. If youre looking at this number to make a decision on trading something, unless youre a High Frequency<\/a> guy, look somewhere else. You have to look longer term at whats happening. Mark, what do you look at then . How do you get the signal from all the noise . Yeah. First of all, i think to ricks point, i think the bond market is having a reaction i would have expected. I think the stock market is not reacting because it was such a bad number. It doesnt know what to do with it so its going to wait for another number. What would have been interesting is if we hadnt started tapering last month, what would the bond market be doing today . I think by the fact weve tapered, theyre not going to reverse that decision. Were getting some reaction but not too big of a reaction. Thats assuming taper will make a real job difference in the end. Im not answering whether it makes a difference or not. Im with you. If we hadnt started taping tap taperi tapering. You have created some possibility of a pause in the taper. The idea that bonds would sell off makes some bonds would rally makes some sense. What stocks would do with it is anybodys guess. Steve, do you really think the bonds were bought because they think theres more purchasing or theyre going to extend the program . Ill tell you what. Every trader i talked to, even if he trades with the fed, they all say the same thing, steve. The bigger the trader, the l louder they say it, the fed wants out of qe. I think thats right. But the idea theres the possibility of acceleration certainly comes off the table with this weak number. This is the only jobs report theyre going to get between now and the time they meet in january. It could still happen, rick, but if there but, steve, why does a James Bullard<\/a> then come out and say that despite the fact that we just had the Unemployment Rate<\/a> drop the way it did and for the reasons it did that hes comfortable with the fed keeping a 6. 5 target, that hes comfortable with whats happening in terms of the pace ive explained this a bunch of times is it just a phenomenon of bullard being bullard . No, i think what the fed wants you to know is that it has a plan and the plan is to taper by 10 billion a meeting. And its going to take a bit to get it off it. This number is not enough to get the fed off of its plan right now. Agreed steve. I think thats the point. When we take a big step back and look at the data today and look at the whole picture, you got to remember the tenyear average Unemployment Rate<\/a> in in country is like 6. 4 . To read so much into one data point today particularly given all the possibilities of seasonality within it, i think the bond market is just hypersensitive to this type of stuff right now. Whats the average Participation Rate<\/a> over that same period . Thats your apples to apples. Im sorry, rick . The Participation Rate<\/a>, whats the average on that . Thats where the rub is. You cant say the average rate is 6. 5 when you had a significantly higher part of the population that can work actually working. And i dont disagree steve, thats why id like to know why isnt the fed coming out and changing the way its describing its goals . Why does it maintain its focus on that rate . But it certainly did, kelly if the fed could put in a caveat to their statement, they should basically say unemployment at 6. 5 as long as its dropping for the right reason and the way its calculated if everybody is looking if everybody who is looking for a job stops looking it theoretically goes to zero but thats not what we want to see. I think its not going to be 6 , i think its closer to 5. 5 . Sl surely you were paying attention to the last meeting where the fed said it was a threshold and bernanke has said several times that 6. 5 is a soft number, that how the fed react at 6. 5 , that 6. 5 is any 23478 y number you want it to be at this point. The fed has moved well off it in its rhetoric at this point. Steve, do you disagree with that, that its a much softer target z target . No, i dont disagree. I think ultimately thats the right way to go about this. We got to take a big step back. We have to remember that the fed is attempting to unwind the single largest Balance Sheet<\/a> in the history of central banking. This is not an exact science. Theres going to be a lot of art involved in this as opposed to pure science. Youre going to get overreactions in the bond market. Youre going to get underreactions in the equity markets. Its important during this whole process to really take a step back and look at the broader picture all of the data. Thats the key, right . If you were to convene the closing bell open market committee, rick is the one thats worried about the Participation Rate<\/a> and suggests thats a lot of softness in the jobs market. If that is, indeed, softness in the jobs market, thats a reason not to move when you hit 6. 5 . Its because theres excess slack in the job market. You keep assuming that the quantitative easing programs are getting some kind of cost benefit to whats happening in the labor market. And once again yes, governor santelli. The biggest problem we have is how do you reeducate 10 Million People<\/a>. It really isnt about keeping Interest Rates<\/a> low for the banks, is it . I think youre seriously onto something here which is the following. To my mind there was a point to which what the fed did mattered a lot for employment. When you get to a certain point, and i think we may be nearing that point, there is not as much that qe or anything can do to put the longterm unemployed back to work why do you think what about whats that . What about the remarks he is among those who believe the fed here is the problem, right . Part of what the fed has decided is because the fiscal side isnt doing nothing, they have to do at least something. And thats something that anybody can criticize except to the point when you think that somebody ought to be doing something for the unemployed in this country, and if its not the fiscal side, then its going to have to be the monetary side and then the cost benefit analysis become not what rick wants it to be. You know what, saying you have to do something even if the something isnt working, you know what . Thats what 12yearold kids say. Im sorry if i can get i dont know whats going on here they go end. If you can give me 20 dips on the 10year or 20 bips or 25 bips when it comes to long term rates, i will take it in the absence of nothing going on across the street in washington. I never want to say that on a day where the treasuries rallied the best customer Performance Today<\/a> was the federal reserve. They made more money than anybody today. Any hedge fund times five. And they sent 77 billion of it to the treasury. Back to the taxpayer. Final word. Please take us out, governor hughes. I think the exciting i want to go the exciting part of all this is were seeing growth in startups, in innovation, and entrepreneurialship in america. If thats what it takes, if it takes getting away from all these corporations and their big jobs issues and we have to go back to work and innovate in america, then thats a good thing. Couldnt agree more. Lets have promises to coast to coast. If its good for five cities, its got to be good for 50 states, right . There you go. Everybody have a great weekend. Thanks, guys. Rest up, rick. Were not done yet. By the way, we have a developing story in the Media Industry<\/a> right now. Dominic chu, what do you have for us . We want to you bring you the latest. You saw earlier that areo and all the companies that are going against it, that cbs, thats 21st century fox, abc, part of disney and comcast Nbc Universal<\/a> Parent Company<\/a> of cnbc, they are all trying to go after aereo in a Supreme Court<\/a> case. The Supreme Court<\/a> has agreed to hear the aereo case. We have statements. Cbs says in a statement, we believe that aereos Business Model<\/a> and similar offerings that operate on the same principle are built on stealing the Creative Content<\/a> of others. Were pleased our case will be heard and we look forward to having our day in court. We also have a statement from aereo founder. He says in his statement, we said from the beginning it was our hope that this case would be decided on the merits. He also goes on to say that we believe that consumers have a right to use an antenna to access over the air television and to make personal recordings of these broadcasts. We remain unwavering in our confidence that aereos Technology Falls<\/a> within the law and our team will continue to work hard to provide our consumers with best in class technology. So, again, cbs and aereo two opposing parties going to be heard in the Supreme Court<\/a> issuing statements. Well bring you more details as this develops but a still interesting story for all of news the media business. Absolutely fascinating. A lot of it goes back to the Business Model<\/a>. Its moved away from advertising, more reliant on retransmission. Huge implications for the business. They have called the bluff of the industry. We have a dow thats down 18 points, but the nasdaq is strengthening, up 10 with about 50 minutes left in the trading session. A todays weak jobs report a warning sign that last years historic rally was incorrectly betting on a big economic recovery this year . Well get into that next. Also, well hear from a guest who says that horrible Winter Weather<\/a> really is to blame for that weak jobs number and the economy really is starting to heat up. Hell make the case coming up. If you want a good paying job, well, run for congress. For the first time ever, the majority of lawmakers in washington have a net worth of more than 1 million. Robert frank says dont get outraged. Its really not that much money. Hell tell us why coming up on the closing bell. Keep it right here. Youre watching cnbc, first in business worldwide. Tdd 18886486021 there are Trading Opportunities<\/a> tdd 18886486021 just waiting to be found. Tdd 18886486021 at schwab, were here to help tdd 18886486021 bring what inspires you tdd 18886486021 out there. In here. Tdd 18886486021 out there, tdd 18886486021 there are stocks on the move. Tdd 18886486021 in here, streetsmart edge has tdd 18886486021 chart pattern recognition tdd 18886486021 which shows you which ones are bullish or bearish. Tdd 18886486021 now, earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 tdd 18886486021 or go to schwab. Com trading to learn how. Tdd 18886486021 our trading specialists can tdd 18886486021 help you set up your platform. Tdd 18886486021 because when your tools look the way you want tdd 18886486021 and work the way you think, you can trade at your best. Tdd 18886486021 get it all with no trade minimum. Tdd 18886486021 and only 8. 95 a trade. Tdd 18886486021 open an account and earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 to learn more. Tdd 18886486021 so you can take charge tdd 18886486021 of your trading. If you have a business idea, we have a personalized legal solution thats right for you. Hell tell us why coming up on turn your dream into a reality. Start your Business Today<\/a> with legalzoom. And shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. And that is the moment that driving the lexus gs will shift your perception. This is the pursuit of perfection. Will shift your perception. I just knew from the getgo that i was. Flat out getting a good deal. When youre ready to buy a car, save time, save money, and never overpay. Visit truecar. Com welcome back. Those huge gains in the stock market last year in part due to investors betting the economy would kick in higher gear in 2014. If the jobs report is any indication the market bet wrong, will we see a decline in stocks this year . Lets talk about that with matthew slaughter, former counsel of the economic advisers. Rich peterson is director of valuations and risk strategies at s ps capital iq. In the absence of any other data, this report would be disappointing and surprising. Y you have to take a broader picture. You look at the decline in mortgage delinquencies. Lowest in five years. The trend, revisions in the prior two months of 38,000 jobs. Point well taken but the fed has told us no number is more important than jobs. No number is more important than 6. 5 , but that 6. 5 is a soft number as was said in the previous statement. That 6. 7 is very much a function of labor force Participation Rate<\/a>. Thats been going on for a decade. 25 to 54yearolds, its over 80 . Matthew slaughter, how strong, how resilient, how fast growing is the u. S. Economy today . Great question. Its growing but not as fast as anyone would like. So i think a big challenge is the fed helps the economy. We see this throughout 2013 and earlier years, but Going Forward<\/a>, faster Economic Growth<\/a> is going to come from elsewhere in washington hopefully. Its going to depend on what congress and the white house does with issues like tax reform, immigration reform, hopefully this is not as good as it gets. We need it to be better. The fed has said they dont expect there to be as much fiscal drag this year meaning they expect congress to get there. Thats right. But its not just the overall budget deficit. Its other things related to that. So its the tax regime we have. Many people on both ends of pennsylvania avenue have acknowledged our business tax code in the u. S. Is really complicated and high burden for small and global businesses alike. Its those type of policies we need to get job growth faster. Rich, one way or people to find of look to earnings season, for example, and figure out whether the economy actually is strong, demand is picking up or not, is to watch the revenue numbers here as well. In other words, are companies seeing sales increase and not just cutting costs in order to hit that earnings figure . Its early, its going to take a while to tell. But is it your expectation that thats happening, that the pie overall is getting bigger . Its incremental. Talking about Fiscal Health<\/a> in washington. Its 2014, its election year. The odds of that happen Something Like<\/a> having free flowing traffic on the George Washington<\/a> bridge. The fact is were seeing some improvement on the top line. Weve seen macys improve guidance. Looking at the early signs of earnings season for the Fourth Quarter<\/a>, 24 companies this reported, 15 have beat or met expectations. On the bottom line. Revenue side a little softer. We have to look at it sector by sector. Consumer discretionary may be less well. Im going to change the premise of our question just a little bit. Were asking about the markets expectations of the economy with the market rally last year. Was the market rally because they were expecting the economy to improve or because they knew the fed wouldnt allow it to go back into recession. Some of both. Great question. When they look at how the companies are doing on kellys question, a lot of companies have been growing revenue, not just in the u. S. But when you look outside to the rest of the world. Yes, growth is slower in china, but its still awfully fast. Europe is stabilizing. I think part of what markets have been hoping and expecting is that were going to get growth in the rest of the world and americas companies will continue to connect. What do you think the odds are of the u. S. Entering a recession within the next 18 months . Low but not zero. I think a big question mark is if we avoid some fiscal missteps like weve had. Another debt ceiling debacle, another shutdown, that doesnt help. A big uncertainty is what the fed will do with the tapering and the unwinding of qe. How quickly that might happen and what impact that has on markets and the real economy. Do you think as a follow up to that, do you think its still more likely that we have a speed up squacare or a slow down scar . Im going to say a speed up scare. Theres a lot of positive forces in the economy like rich talked about at the outset here. The Energy Revolution<\/a> is another one dimension. Those things continuing in 2014 would be great. The big question mark on the downside is policy. Gentlemen, good to see you both. Thank you. Have a good weekend. Thank you. Got about 40 minutes left to go into the close. Well see if the dow turns positive. It is off 18 points moment. The s p has turned higher. The nasdaq is adding 11 points as we enter the final stretch. One stock not doing so well, sears getting crushed after the retailer reported weak sales and even weaker outlook Going Forward<\/a> which is a nono these days. Is this selloff a major bargain shopping opportunity on Sears Holdings<\/a> . Also the target credit card data breach getting bigger. It could affect up to 110 Million People<\/a> and a lot more personal information may have been hacked. Will this finally force retailers and banks to adopt the much safer Security Systems<\/a> that, by the way, are pretty much used everywhere else in the world. Why havent they started using them here by now. Well get into that later. Dont miss becky quicks exclusive interview with targets ceo gregg stehafel on monday at 6 00 a. M. Eastern on squawk box. Stay tuned. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. And my parachute definitely isnt golden. [ male announcer ] for some, every dollar is earned with sweat, sacrifice, courage, which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as 50. Over the pizza place on Chestnut Street<\/a> the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment welcome back. Here is a look at whats happening across the indexes. The dow off 20 points. The nasdaq and s p 500 have turned slightly higher. The bad jobs report hanging over this market as the first full trading week of the year winds down. Dominic chu, what are the big movers . The biggest move of them all is Intercept Pharmaceuticals<\/a> again. Wher not a broken record here. After nearly quadrupling on thursday on news that its treatment for Liver Disease<\/a> was so successful it stopped a midstage trial it jumped another 65 in trading today. So in one week its gained nearly 375 a share. It has yet to post a profit. Its ceo dr. Mas shares are wo nearly 200 million. Steve cohens sac capital did even better. It had nearly 1 million shares of intercept as of november. It stood to make nearly 375 million. Theres cgi moving lower. It said its contract with the government over the federal Health Care Website<\/a> is going to end next month and a tough day for sears which reported quarter to date samestore sales fell by 7. 4 . It also projected a Fourth Quarter<\/a> loss wider than wall street was expecting and it was a year ago that eddie lampert, the hedge fund manager, named himself as ceo of the company. The stock is down 10 during his tenure as the chief executive. Dom, thank you. Lets talk about sears. Is this a buying opportunity at these levels or is it best for investors to just stay away . Mary gilbert and Michael Santoli<\/a> from Yahoo Finance<\/a> joining us now. Thanks for being here. Mary, first to you. Do you see value in sears . Absolutely not. These shares are not for the faint of heart. This company is highly complex. Its being run by an asset manager, and that shows in the number they reported. As you highlighted earlier, they reported comp sales down 7. 4 . At sears it was down 9. 2 . At kmart down 5. 7 . More importantly its the earnings losses. Th if you exclude lands end which they are planning to spin off, losses go to 400 million to 330 500 million. Now you have to add in pension losses. Youre talking about cash burn of about 1. 2 billion to 1. 5 billion and thats after considering cash generation from working capital. All metrics look bad at this point, mike santoli. You wonder Eddie Lamperts<\/a> money pit that this has turned into, if he regrets this and how does he get himself out of this . I obviously cant say if he regrets it. Its always been much more about an asset shuffling play and it remains that. Its not about is this a retailer that can turn itself around on a fundamental basis. Hes an asset manager, hes not a retailer to begin with. Hes not a merchant. Exactly. And, look, with the market value of it below 4 billion, i dont know where the support is from the asset value, but lands end is worth more than 1 billion basically. I would say based on its ebitda levels. Theyre walled off legally in a different entity. Maybe theyre worth more and the auto business. I dont know exactly if he can make it all work as he tries to sell off real estate but it seems to me thats been the play all along. Its not been about getting more people into sears and kmart stores. Ebitda is earnings before tax, amortization. What about the real estate value . We think there is real estate value in sears and thats been proven. When they go to monetize the value in the real estate, its going to fund losses, operating losses, and so thats one of the key points to note. And when you think about lands end. We disagree with the valuation of over 1 billion. We were previously valuing lands end at 1. 7 billion just to be conservative and aggressive before they came out with the numbers. With the numbers, we think that valuation is under 1 billion today. Wow. Why explain that, if you would. Well, the company had never disclosed the metrics before so analysts had to estimate what those numbers would be. So we were giving them the benefit of the doubt that they were executing well and that that business had grown. When, in fact, it really hadnt. It really hadnt blossomed and it really wasnt as profitable as investors thought, and so thats why the valuation is really lower. Theyre he ebitda was 120 mill and that was through the Third Quarter<\/a>. If assume its 110, you would value it around seven times. What does it imply for the shares. That equates to about 9 a share of lets say less value right there in lands end. And then when you talk about the brands, we agree theres value in the brands. However, theres also debt against that entity and the brand value if you go to monetize it and sell to to a home depot or a lowes, its going to be a lot lower because they wont be able to replicate the revenues that are being generated. Remember, those revenues are decreasing. In fact, we think that the debt at kcd could be reduced the rating on that debt could be reduced by annuities on this news. Its just not looking good for sears. Hasnt for a while. Had a good run late last year but its fallen off the cliff once again. Thank you, both. Have a good weekend. Thank you. See you later. Heading toward the close here. We have about 30 minutes left of the trading session. The dow is slowly trying to come back. On a day when you had such a horrible jobs report, bonds rally big bringing yields down sharply, but the stock market just kind of sitting there again. Down eight points. Our next guest says dont blame the economy for the weak jobs report. Blame the bag weather. Is he right . Well debate that next. Also, its an epic battle for sector supremacy. Receive seema mody saying the tech sector is the place to be. But dom chu says you should bank on the finals. Theyll go head to head later on the closing bell. Thats righ. Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. Does it end after youve expanded your business . . After your companys gone public . And the capitals been invested . Or when your companys bought another . Is it over after youve given back . You never stop achieving. Thats why, at barclays, our ambition is to always realize yours. Make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. A weak december employment report this morning, just 74,000 jobs added. The Participation Rate<\/a> falling. The reports citing the weather as a key factor, but is that really the main factor keeping people out of the workforce . Were going to talk about what we all love to talk about, the weather. John is with lpl financial. Larry mcdonald is a cnbc contributor from new edge. Good to see you both. John, thats a dramatic sho shortfall of job growth. Can we lay a lot of that to the weather . I think so. It was a really bad number. It was below the low end of the range of estimates. That doesnt happen that often. I think the low end of the range was like 100,000. This came in at 74,000. So, yeah, i think most of it is if you look at the key three key weather sensitive sectors, transportation, construction, leisure, hospitality. The net swing was 80,000 jobs. You add that back and you get a semi decent report. So i think it is mostly weather. Well, larry, certainly if you look at the household side that generates the Unemployment Rate<\/a>, a lot of people were at home not looking for work. One of the highest proportions since the 70s. That would certainly seem to indicate a one off effect from the storm here. Kelly, im wondering where the outrage is. The last five years weve had 4 trillion of kwan tquantitative easing. And we have 75,000 jobs and were going to blame it on the weather . Come on. We have been hearing from our Rick Santelli<\/a> in that regard, but it is one month, and can we extrapolate a whole trend from that one month . Bill, the worst thing thats going on, frances labor force Participation Rate<\/a> is 55. 9. Were on a collision course with france. Its really a perfect storm. You have got technology, youve got an aging population, and youve got big government. That perfect storm is putting this labor force Participation Rate<\/a> on a collision course with france. What i wonder though and john perhaps you can address this, if you look across all of the other december indicators that touched on Employment Trends<\/a> or Consumer Spending<\/a> trends for this economy, so far they look okay, and they were consistently okay. So this does look like an odd man out, and while larry is right about the longer term concern about this Participation Rate<\/a>, it is possible, certainly possible, you could see 2014, some of what happened just in the last two months alone, start to reverse. Thats true. Although it does depend on the weather here. Weve had a pretty cold start to january. Luckily the survey week for the jobs report is actually next week, and it looks like next week is going to be a little warmer and less snowy than this week. So i think you do get a pop just because of the weather, but i do agree to some extent with larry. You are seeing demographics play a big role in the drop in the Participation Rate<\/a>. Some of it though is that were just getting very slow Economic Growth<\/a>. But i expect over the next couple months, maybe not all of january, but january and february, that you see a snap back in job creation. Most of the other indicators are pointing towards a decent end to 2013 and, again, we expect a 3 gain in the economy here in 2014. Larry, what kind of job growth do you expect this year and do you think its appropriate for the fed to begin pulling back on its easy money policy as its planning to do . The biggest thing i want to focus on is the entire market is focused on the taper. I think the key key for investors is to look at the fed Balance Sheet<\/a>. Were at 4 trillion now. Its when the fed stops tapering, in other words the street is looking at december. I think the street may the fed may continue quantitative easing well into 2015 and thats bullish for things like gold and some Asset Classes<\/a> that are beaten up like gold. Because you dont think job growth is going to pick up enough . Theyre going to keep going . I just think it has a lot to do with the ageing population. Most importantly, the inflation rate is at 1. 1 on the pce. Janet yellin will attack that when she starts to get behind the drivers seat of the fed. Bill, the biggest risk here at lpl for our 2014 outlook for stocks, which is 10 to 15 gain, would be if the economy does not accelerate. We decelerate on the economy, that more than any other policy is probably the biggest risk to the forecast. Even though as larry is saying the fed may decide to turn around and stop tapering, perhaps even increase the size of its Balance Sheet<\/a> . I think the market pretty well has priced in that the fed is through with tapering and done with quan tay tiff easing by the end of the year. I think the market has that priced in. The pace of that might impact when you get a pullback, but i think the market is comfortable now with the fed coming back off the quantitative easing but focusing more on the Forward Guidance<\/a> which they indicated pretty well at the december meeting. Gentlemen, thank you. Have a good weekend. 20 minutes left to go before the close. The dow still negative by 13 points. The other indexes are slightly positive. Well see what happens in the next few minutes. It was this time yesterday it was all governor Chris Christie<\/a> all the time. Bridgegate as were calling it now. Still the talk of the country and the impact on the new jersey governors possible president ial ambitions. Later David Gregory<\/a> joins the closing bell to discuss the implications. Todays main event. In one corner its a titleholder of tech. In the other a fighter for financials. A heavyweight sector bout coming up next between dom chu and seema mody. Well be right back. She keeps you on your toes. You wouldnt have it any other way. But your erectile dysfunction it could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime<\/a> the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about experiencing cialis for daily use and a free 30tablet trial. Im bethand im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing<\/a> app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. Welcome back. The Financial Sector<\/a> significantly outper fortunatelied the s p 500 last year. The tech sector, not so much. Those trends have so far continued in 2014. Lets talk about it. Seema mody says tech is about to take off while dominic chu believes the financials will continue their winning ways. Were going to start on why the street is bullish in tech. I. T. Spending which has been at a multiyear low for quite some time is expected to rise. Second, strong Balance Sheet<\/a>s and cash flow analysts say gave large tech cap the ability to return cash to shareholders. They one of the lowest they have plenty of room to raise dividends and deploy excess cash into buybacks. Lets talk about the strong Balance Sheet<\/a>s. Its going to be with the banks. Whether it be because of regulators or of their own free will and volition. Banks are Getting Better<\/a> about what they have in terms of capital. Those Balance Sheet<\/a>s are getting stronger. Credit quality is improving. Bob doll said, yeah, theres a mix of headwinds and tailwinds for financials but a couple of the tailwinds are valuation based. Take a look at the price to earnings ratio for the Financial Sector<\/a>. Trades at 14 times earnings. Compare that with the technology and s p 500 overall. Theyre trading at 17 times, so from a strict valuation basis, you can say that financials are undervalued compared to technology. Okay. Valuations make sense but as the Global Growth<\/a> story improfessve investors may be able to pay up for tech. Approximately 60 of its sales from overseas while financials, take a look at this, dom, around 20 . Thats b of a is more bullish on tech over financials because it can profit from acceleration in Economic Growth<\/a>. Its the Global Growth<\/a> story. Lets talk about growth as well. One thing im looking at is the yield curve and specifically whats happening with the long end, the 10 and 30year yields. Look at this. Yields used to be around 1. 5 . Theyre all the way up to where they are right now, nearly 3 . Now, when banks start to be able to borrow at shortterm rates that are very low because the fed is keeping them there and lend all the way out, theyre almost zero right now, and lend out all the way towards the 5, 10, 30 year era, if you will, that yield curve, that net interest margin, if you will, is a big profit driver for banks that specialize in commercial lending. So big regional banks, the one who specialize . Just commercial lending, they may benefit. Thats the reason why in a raising rate environment, that could be a big deal. For now those financials may catch a tailwind if Interest Rates<\/a> keep rising. Thats interesting because even tech is favored to outperform in a rising rate environment. Kelly and bill, tell us who won. You never give us the winner. Were waiting for a lot more of them. Like picking your favorite child, were not going to do that. Thanks. See you later. Its like you and me in makeup. We have 13 minutes before the closing bell. The s p and nasdaq is slightly positive. Its chevron and United Health<\/a> thats weighing on the blue chips. The beatles, the surviving members, paul and ringo, are mulling a possible reunion mini concert on late night with David Letterman<\/a>. We want to know your thoughts on the fab two. Who should round out the beatles band . Airplane clapton, Julien Lennon<\/a> . Tweet us your suggestions and well share them later on the closing bell. Life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. I need proof of insurance. Thats my geico Digital Insurance<\/a> id card gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance<\/a> id cards. Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. Welcome back. Nine minutes left in the trading session here. The dow is down 20 points off the lows of the session. Holding its own, but look at the nasdaq and sa p, theyre tradin higher. We have david darst who by the way during the commercial gave me a whole Investment Strategy<\/a> seminar here. You have got it laid out for this year. You still, for example, want to stay with japan which had such a spectacular year last year. If theres any selloff in japan, bill, we would buy that. We think japan should be overweight europe, which is showing slight signs of improvement. So overweight europe and japan. Be equal weight in the United States<\/a> with an emphasis again on health care. Also technology. In emerging markets its not time yet. You need structural reform. You need progress on this next wave of the emerging markets emerging. In the bond area, you want to basically be underweight in investment grade. Thats your 7 and 10 and 20year bonds. You want to be underweight in emerging market debt, and you want to be underweight in inflation index securities. In the bond area, you want to be overweight short duration. Let those rates rise further and you want to be overweight in high yield. With an emphasis on short maturity bonds. Fourth quarter is going to come in closer to 3 now. Even with the jobs number we got today . That jobs number what was that about . It was all about weather. You think it was . A lot of it was construction. It was all about the late thanksgiving, okay . There was less real hiring there than temporary. So this is an aberration, and use any weakness in the First Quarter<\/a> to add to stocks. What did you think of the markets response to that jobs number . Very positive. Very positive. You didnt get the selloff you would expect. Leon cooperman an old friend from Goldman Sachs<\/a> days says when the market does well and responds to disappointing news, it wants to go higher. Thats the interpretation i put on this today. Weve had such a lackluster beginning to this year. Last year was just a spectacular year overall. From the getgo. This year nothing. Those first five trading days, which are down, as you know, they have a 75 to 80 accuracy ratio in terms of predictpr predicting the whole year. Even higher is the first full month of january. Its possible to give a false signal, but i think its the party was so strong, people are looking to see what the fed is going to do. You have two meetings. You have january 29th30th coming up and march 19th20th. Tonight forget the big positives. Manufacturing, monetary stimulus, house prices, and the consumer. Now, next tuesday, this coming week, youre going to get the retail sales. Yes. And the consensus is looking for a weak number. So that i think might let the market pull back some further and you want to judiciously and appropriately add a little stock. You packed in ten minutes of information in that four minutes. That was amazing. Nobody does it like you, bill. David, thank you. Have a good weekend. Well see how things shake out on this friday and for the first time ever, the majority of members of congress have a net worth of more than 1 million. This as Lawmakers Debate<\/a> Unemployment Benefits<\/a> and the minimum wage. But our robert frank says hold off on being outraged about that because 1 million isnt what it used to be and it isnt a lot of money. He defends that controversial position coming up later on the closing bell. Youre watching cnbc, first in business worldwide. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. And the little room above the strip mall off roble avenue. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment getting the right nutrition isnt always easy. First, i want a way to help minimize my blood sugar spikes. Then, a way to support heart health. And lets not forget immune support. But now i have new glucerna advance with three benefits in one. Including carbsteady ultra to help minimize blood sugar spikes. Its the best from glucerna. [ male announcer ] new glucerna advance. From the brand doctors recommend most. Advancing nutrition for diabetes. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool<\/a> on thinkorswim. From td ameritrade. Inside the twominute mark. You would think with that very bad jobs report this morning, weve had a big selloff. No. Look at this. This is the trading pattern weve seen all week. Just minor selloff, sideways the rest of the day. Were going out about 20 points lower for the dow. Where you did see a big move and where you would expect it under normal circumstances was in the long end of the yield curve. Look at the yield on the tenyear collapsing down this morning, down 10 basis points in one session to 2. 86 . The stock of the day, everybody has talking about this biotechnology company, intercept, with this drug that can help with particular kinds of Liver Disease<\/a>. Up 58 today alone or 160 to 436 per share. Im with the dean of the trading floor, mr. Cashin himself. What did you make of the market response to the jobs number this morning . Well, i think it was a little confusing at first, but its really the dow that is down. The rest of the market is higher. Rest of the market is actually higher here, so i think its a decent response. Bullard from the fed says he thinks things are going to get revised. So well wait and see. So next week will tell us a great deal. Well have some fed speak and well move from there. Financials start to report their earnings as well as other industries but weve got our first full week in the books. Not bad. What grade do you give it . I would give it a b minus. All right. Thanks, art. Have a good weekend. Thats the first hour of the closing bell. We are going out with the dow down 9 points but the s p and nasdaq finishing higher. Stick around, a lot more to come this second hour of the the closing bell. Wait until you see who is on the panel this coming hour with kelly evans. Have a good weekend, kelly. Thank you, bill. And welcome to the closing bell. Im kelly evans on this friday. Rounding out the first full trading week of the year. Weve had a lot of red arrows to start off this january. Here is how were finishing a mixed day an wall street after that big jobs report this morning. The dow off 8 points. The nasdaq and s p closing higher. The nasdaq by about 18, the s p 500 adding about 4. Lets get straight to it with todays panel. Carter garcia, our very own Morgan Brennan<\/a> and robert frank and dan greenhouse. Welcome to all of you. It is great to have you here. Dan, i want to start off talking about the dow. It looks like weakness from chevron, United Health<\/a>. You mentioned and i loved this yesterday, if it werent for a rally at integrated oil yesterday, we would have been down in six out of seven sessions since 1991. How weak is this market . Its weak in the sense its not going up. On the other hand, the decline so far has been relatively modest to say the least. In the context of what happened at the end of last year, the strong rally we saw in december, not just december but the Fourth Quarter<\/a> as a whole, really im not too concerned about this. Theres a lot made about januarys first five days being predictive. I disagree with that. January as a whole is much more important and even then its questionable. Do you think weve learned anything from the fact that the market hasnt performed better. It hasnt just been the first day, wasnt just the second day. Its consistent theres not a lot of strength here. Again, im not too worried and importantly we are right in the beginning of earnings season and i think when you get into next week and you start hearing from companies not just about how the Fourth Quarter<\/a> went but how theyre feeling about and seeing the beginning of the next year, i think thats going to be the tailwind to ultimately begin the next move higher. Cardiff, you look at the 10year, it went down significantly. If everyone is dismissing the jobs report saying its just wlf, why did the treasury market freak out . I have no idea. Look, i interpreted what happened last year both in debt and equity markets as having effectively pulled forward in time by expectations of what would happen with Monetary Policy<\/a> which is why you have the die skrer jens between the sluggish growth and the gains in equity and high yield. This year the dynamic if anything may have flipped in the sense that sort of prospects for asset markets are a lot more unclear. Its hard to find obvious metrics in this pricing. I think the conditions for Economic Growth<\/a> are better than they have been for some time and, yes, im including this mornings job report. Im not saying so you dont think its a game changer. Morgan . I think we need to wait and see what happens next month. It hasnt fit the pattern with the rest of the data weve seen. The construction numbers very telling. Obviously pointing to weather. Going back to the treasuries for a minute, another interesting thing is the fact we saw things like real estate investment, trusts, housing, home builder, utilities start to rally. They were loving it. I wonder what that means then. Do we sort of look at today and extrapolate or kind of look forward into the year and say maybe it does mean a second wind for some of these sectors or do we say, no, lets wait until monday. Well sort of work through this. What was so surprising and encouraging to me about today was the primary conversation about the jobs number was about the economy. Right. The fed was number two. Okay. And that just tells us how far weve come from the withdrawal from the fed drugs that the primary number one conversation when theres a jobs report is not immediately, what does that mean about the fed . It is whats that mean for the economy . But do you think its that much of a gamechanger, dan . No, i dont think its a gamechanger. Im one of the few strategists and economists on wall street that thinks it means more likely than not, although not assured, the fed does not reduce their Asset Purchase Program<\/a> by another 10 billion automatically in january. Really . My first inclination is why not wait . Whats the hurry . Whats the rush . Because if they wait now, it will be more of a deviation in policy it will be more of a policy change, wont it . The only point i want to make before robert jumps in is for two years now wall street has banked on the fed doing less rather than more. Right. Im not so sure that we dont have two years of evidence that says they want to do more rather than less. And, robert . I think greg put it well today when he said maybe this makes them think we were a little quick bauf toff the bloc. I think theyre going to keep pushing ahead and theyre probably going to reiterate, look, were going to keep Interest Rates<\/a> low for a long time. Theyre coming against that 6. 5 target and theyre going thats the main thing ther going to have to communicate. We may hit that and keep going low. But they added that extra qualitative language. They didnt change the threshold explicitly. Thats still on the table but bernanke said he didnt think it would be more a couple more meetings. Theres a good chance theyll wait until march. How high do you think the bar is for them to do something for another change . For them to do Something Different<\/a> than another 10 billion taper next wim. Its hard to say. If you look at the evolution of policy, its been moving in that state contingent direction. Away from calendar based or the more vague guidance they provided in the past. I think on Forward Guidance<\/a>, thats the more interesting conversation. Want to bring guy adami into this conversation to get an early jump on the fast money conversation. Guy, what about you . You look at the market today, the fact that weve actually got a positive close to the s p 500 to the jobs news. Is this despite what robert was saying about the fed or were there other things jumping out here . Lets not get crazy about the s p move here. I think the week was interesting. You talked about it earlier. The jobs number. Add 200,000 to that number, whatever. You know what . If you think about it, all weve done is recalibrate what good is. These numbers are lousy given the backdrop of where weve been and what weve done over the last five years. The fact that we can even say quarter of a million, 300,000 is a good number to me is ridiculous given whats transpired. So i think the real economy and the market are probably have as wide a chasm now as they may ever have had before. Im thinking, look, the market can still go higher. I think we need to see 1750 in the s p. Theres tremendous Trading Opportunities<\/a> but lets not confuse ourselves. I think the economy is lousy. Guy, its dan. Let me jump in. I want to add to something you just said. I have to disagree. In the context of where weve been not for the last 40 or 50 years but where weve been for the last 10 or 15 years, 200,000 to 300,000 jobs created per month is all were going to do and i dont think thats awesome, certainly not in the context of the decline we had in 08, but we really shouldnt be shooting anymore for 400,000 or 500,000 jobs its not the late 90s, in other words. Its infrequent at best. Dan, fair enough. You make a great point. Let me ask you this. If companies havent hired over the last four years when corporate Balance Sheet<\/a>s, you saw said, it better than theyve ever been, and when their stocks have gone twofold, three fold sometimes, when are they going to hire . Like whats the backdrop demand. You have to get to that paint p point. Thats what 2014 could be. You see that nominal gdp story. Companies dont hire because theyre extremely profitable. They hire when they have to to meet demand. Especially with all the pops worried about what will happen with profit margins. Theyre going to need expectations of higher sales to offset that. But even still, were going into this year expecting less fiscal drag. The Housing Market<\/a> is starting to show signs of healthy activity. Manufacturing, the trade numbers earlier this week looked pretty good. So there are reasons to be hopeful. That said, there are reasons to be humble about this. Weve had four straight false starts in the winter the last few years. I dont want to get ahead of myself but there are reasons for optimism. Everyone is afraid to say morning in america now. Of course, the other thing to keep an eye on is that Participation Rate<\/a>. 62. 8 . Its the lowest since, what, 1978. I think thats troublesome as well. I think that should be an even bigger part of the discussion right now. Guy, when you look into next week, what are you positioning for, retail sales report, earnings . I think its absolutely earnings. You look at some of the retailers that have missed. Remember we talked about this last week. I said to you companies that miss are going to get punished now more so than ever and look at some of the companies that have gotten punished on the retail side. Absolutely. I also said to you, i said to you, i said, kelly evans, mark my words, this time next week cellgene will be trading with a 170 handle. Where did it trade yesterday . Whats your point, guy . My point is look at your google machine, trading 171. Great Trading Opportunities<\/a>. I think we need to trade down to 1750 in the s p. Probably wont happen next week but i think earnings are first and foremost on everybodys thoughts. Guy, quick question kind of related. Intercept. The biotech name. Every person in this country i feel like is going to be looking up how do i play the lottery and win like i could have with a company that priced its ipo at 15 at the end of the 2012 and just had a merrill price target in the 800s. Pretty interesting, right . I think their name is out there. This is not a recommendation but there are lottery tickets out there. And the first one that comes to mind for me and i hopefully the market cap is such that i can even utter this is a name like exact science. There are names out there. But, again, cell gene, there are analysts saying revlamid could be the next lipitor. At 167 that stock is way too cheap. Any position, guy . I would disclose. I have been doing this a long time. The rest of the panel sticks around with me. Guy, there will be plenty much more of him coming up at 5 00 on fast money. Straight ahead, what will the fed do now that decembers job numbers showed a hiccup . Up next, one person says hell reverse direction and add more stimulus. Jeff is here to make his case. And up to 110 million target customers may have had their personal information stolen. The breach is worse than anyone suspected when target stated 40 Million People<\/a> were victims. Coming up, ill speak with a Payment System<\/a> specialist will what retailers, bank, and Credit Card Companies<\/a> need to do to beef up security. Why has america been left behind in this regard . Stay with us. W well be right back. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance<\/a> is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance<\/a> quote. Usaa. We know what it means to serve. Welcome back. So not a great week for stocks in the markets first full trading week of the year. Dominic chu sizing up some of the winners and losers for us. Once again we got to talk about it, the big winner this week or any week for that mat ser Intercept Pharmaceuticals<\/a>. Its staggering. It rise 550 . Its got me all tongue tied. This on news its treatment for differ disease was so successful it stopped a midstage trial. Also a good week for another company in the health care sector, forest labs. Then Constellation Brands<\/a> moving higher after reporting better than expected quarterly profits and sales while raising its fiscal 2014 guidance. On the downside, bed, bath beyond posted weaker than expected Third Quarter<\/a> earnings and cut Fourth Quarter<\/a> guidance. A tough week for twitter as well. Began coverage with an under. Lots of big stories in this first foul week of trading. Back over to you. Lots to look forward to next week. Have a great weekend. Jeff cox wrote a 2014 prediction ways for cnbc saying the fed will reverse course on scaling back stimulus. He says todays jobs report will make that prediction come through. He jones me along with John Hilsenrath<\/a> from the wall street journal. Welcome to you both. Hey, kelly. Jeff, first of all, we actually heard dan greenhouse saying he thinks the fed in january will pause and hold the size of the taper at 10 billion. Youre saying theyre going to reverse course and are you saying that next time . I dont necessarily think this happens in january, kelly, but my base case for the year is three things for the fed and one is, yes, that untaper. I believe that todays report shows that the data Going Forward<\/a> is going to be shaky. Its going to be a little rickety. I do not believe, i do not see any signs in the labor market that weve achieved that escape velocity. Therefore, two other things i think very important going to happen this year with the fed. Number two, i think very soon, maybe in january, that they will move the goalposts as far as their unemployment targets go. I think that 6. 5 rate where they said theyre going to maybe consider raising Interest Rates<\/a>, that gets moved back to 6. 0 or 5. 5 , and also were going to see a heightened debate on the fed over this socalled Forward Guidance<\/a> where they can use language to telegraph their intentions for rates. Stanley fisher coming on as prospective vice chairman, hes not in favor with that type of thing. I think it will put him at odds with janet yellin and set up an interesting set of circumstances. John hilsenrath, what say you . Well, to tell you the truth, i would need to hear more about jeffs forecast to say whether its going to come true or not because really we know what the feds baseline case is. They expect the Unemployment Rate<\/a> to come down. They expect growth of 3 or more, and they expect inflation to gradually increase towards 2 . Those are their three main markers, and if those things happen, they say theyre going to wind down the Bond Buying Program<\/a> to zero by the end of the year, and i think thats really what we have to watch. And thats the question we have to ask every time we see reports like today, is the fed on target for hitting these growth forecasts i think jeff, hang on one second. Jon, so just to be clear, what youre saying is that todays report, even though it was a disappointment, is not enough to change that fundamental picture about job growth, about the Unemployment Rate<\/a> importantly, and about the economy doing better this year. Yeah. I think they want to see more data before any of before they feel any of that is confirmed, and theyve got to, you know, alter a course to took them all of 2013 to lay out. This is a very inertial institution. I think they have a plan and theyre going to stick to it unless theyre convinced otherwise. I. Go ahead, jeff. I know you reported fed is on this unreversible course. I think they made it clear its data dependent pmp if you look at the minutes that just came out, that he is no mention in there that were going to cut 10 billion per meeting. Bernanke mentioned it in the news conference, sure, but i do not think theres that level of certitude on the fed of really which way to go with qe, and i dont think i think today again this data point tells you that in the economy right now, i dont think this shows them enough. I dont think that they expected the Unemployment Rate<\/a> to drop to 6. 7 on the back of a 30some year low in labor force participation. I would just say that i agree with a lot of what you said, but the most important thing you just said was this data point. It was just one data point. Its certainly its the data point they watch very, very closely. Of course. Its certainly data dependent they made that very clear but the chairman and his postmeeting press conference laid out a course that the fed expects to stay on. I mean, i think it certainly is not set in stone. Theyve said that but they got to see how things play out. I just dont think one data point is going to be enough to change peoples views. It took them all of 2013 to get to the point they were at. Yeah. Jon, why hasnt the fed come out and said the 6. 5 Unemployment Rate<\/a> isnt the most important thing when it knows and this report is further evidence, that there are changing dynamics that may make that rate less relevant to how the economy is doing. I think they have said that over and over again. The key point in their statement in december was that even after the Unemployment Rate<\/a> gets to 6. 5 , they expect to keep rates low well past the moment when the Unemployment Rate<\/a> gets to 6. 5 . So i think they have been saying over and over again its kind of like, you know, 6. 5 is kind of like the starter gun. Thats when they start having the debate internally. I think this report is a real problem for them today because they werent expecting to even have to have the conversation until the second half of this year, and now the gun might go off in february. Its a real problem for them. I think big picture this just points to how much of a box that the fed may well have gotten themselves into with trying to do all this monetary engineering that weve done over the last five years. They dont really know where its going. I think its creating some confusion and some uncertainty in the market which is the bottom line is how did this all affect investors. And i think from an investors standpoint, its going to be a very confusing year when you have all these different cross currents going on. Jon and jeff that gets to one point which is that they dont want to add to the confusion by moving the goalposts and start changing these numbers. I think theyre really in a stay the course kind of mode. Understandably. I disagree with that because well continue it next week, how about that . This is a fake number. I think Everybody Knows<\/a> this drop is not real but, jeff, if youre saying its a fake number then why is this a gamechanger for them . I think theyre looking for a 6. 5 number in the Unemployment Rate<\/a> under normal circumstances. These are not normal circumstances. I dont think this is factored into the forecast. We got to go. Guys, thank you so much for being here. Appreciate it. Have a good one. All right. Well continue the discussion next time. Target stock taking another hit today. Hackers may have gotten a lot more data than originally reported. Did you know europe and canada and much of the civilized world have better card security than we do . Why is that . Well ask that question coming up. Before you settle for another ordinary mattress, isnt it time you discovered the sleep number bed . The only bed clinically proven to relieve back pain and improve sleep quality. And right now, its our lowest prices of the season. Save 300 to 800 on our newest innovations. Plus, 18month special financing on all sleep number beds. Only at a sleep number store, where queen mattresses start at just 699. 99. Sleep number. Comfort individualized. Welcome back. Take a look at shares of target which closed lower by about 1 today. In the crosshairs again, the retail giant saying a whopping 110 million customers may have been hit by the recent data breach. Thats millions more than first reported. The stock slid as mentioned today. Courtney reagan joining us now. Pretty shocking stuff here, court. 110 million . Its pretty unbelievable, kelly. Well go through how they got the numbers. Target expanding both the scale and scope of the data breach updating financial forecasts, too. During the investigation into the data breach, target has discovered that 70 million target shoppers may have had names, emails, addresses, and phone numbers stolen during the same period of time, november 27th to december 15th. This 70 million is in addition to the 40 million target shoppers that may have had credit and detective card information stolen making up to 110 million shoppers impacted. The Company Expects<\/a> some overlap between the two groups but they cant quantify the overlap at this time. They say shoppers will have zero liability for the cost of any fraudulent charges. Theyre offering a year of free credit monitoring and Identity Theft<\/a> protection for all shoppers. Further, the company has lowered its nongap q4 Guidance Range<\/a> to 4 . They did this because the sales were stronger than expected before the data breach was announced and then they meaningfully fell off since that point. Because of that, target lowered those forecasts. Several analysts are taking down the earnings estimates. They are also concerned about the impact to the brand, but keep in mind we have legal costs to consider. We have i. T. And other Technology Fixes<\/a> to consider. We dont exactly know the fallout here but like you said, the stock only fell 1 today and its shaken off a lot of bad news in the past. So its a little hard to say. This is a really big breach. Its hard to quantify this magnitude. Investors give them a little bit of the benefit of the doubt but this one does continue to grow. Thank you. My next guest saying the damage with targets data breach could have been much less. If that company were following card standards across europe and canada. Hes rush taggert. Thanks for being here. Youre welcome. Thank you. And, look, this might be news to a lot of people in this country who havent experienced that other system overseas. How did the u. S. Get left behind . Its really all about cost and time. Money, who is going to pay. You know, the brands are making a lot of money, visa mastercard, we saw them doing very well today. The merchants are reluctant to spend on new terminals. So its been stuck there for years. But is this starting to happen . Is there going to come a day because already some Companies Offer<\/a> chip and Pin Technology<\/a> to their card users here in the u. S. How quickly is this going to change . Will target push them more towards wider adoption . I certainly believe so. Visa has a date of october next year when all merchants need to be able to accept chip and pin cards, chip and pin payments, and those merchants will also suffer penalties if theyre not capable of doing so. So i believe we will see Widespread Adoption<\/a> in the next 18 months. Okay. Rush, i want to bring the panel in on this. Robert frank, you may have had some experience. When youre overseas in a place like london, for example, and youre paying the bill at a restaurant, what happens . They come up to you with the card reader, you punch in your card, you enter the pin number. That sounds like its coming now to the u. S. You would hope. I guess i have a question for rush. Do we know that chip and Pin Technology<\/a> would have avoided the problem that target had with this disclosure of Customer Data<\/a> . Because some people describe this as a cyber hacking issue. Some people as a magnet reader issue. Do we really know whether this could have happened with chip and Pin Technology<\/a> or could have been avoided . Chip and pin would not have stopped the breach, but the data that was stolen would have been much less useful. Explain that a little bit, rush. Well, it would have all been encrypted, first of all. Todays mag stripe Credit Card Technology<\/a> in the United States<\/a> is equivalent to leaving the front door of your house wide open. It is so easy to copy. It is so easy to counterfeit a card. It is just youre leaving the front door open. What chip and pin does, it puts the lock back on the door. You know, one of the questions that target answered today was, how did you get all this emails, addresses for your clients . All they said is we collect that as part of the course of business. So it didnt necessarily come from these cards. It may have just been how good they are at snooping on their customers both online and when theyre in the store. So dont sotores have so much information they can get it regardless of whether its on the card or not . Correct, cards do not have email dreaddresses, do not hav street addresses. This Additional Data<\/a> had to have come from another source. Exactly. I want to know what happens if we all have to memorize another pin number. You find another startup thats willing to put it all together. I do believe Silicon Valley<\/a> will help us find an answer here. Rush, last question. Because this is an important point. It sounds like what youre saying is this should have happened in the u. S. With regard to the chip and pin system, but that wouldnt necessarily have changed the outcome here of this data breach. So that does suggest that its the retailers themselves that are going to come under pressure to beef up their Security Systems<\/a>. Well, yes, and, please, let me clarify. Chip and pin the breach could have happened, but the cards themselves could not have been counterfeited and reused so there would have been no impact on fraud. So thats what chip and pin does. It incrypted the data, protects the data. Doesnt stop the hackers getting into systems. Thats a different problem. All right. Rush, thank you so much for being here. Have a great weekend. Same to you. Thank you very much. Thanks. Dont miss becky quicks exclusive interview with targets ceo Gregg Steinhafel<\/a> happening monday morning prit and early, 6 00 a. M. On squawk box. Theres a new Millionaires Club<\/a> and its on capitol hill. More than half of congress made the cut. Our wealth editor robert frank says hold off on your outrage. 1 million isnt what it used to be. Coming up first, the bridgegate scandal involving governor Chris Christie<\/a>. Ill talk to meet the press moderator David Gregory<\/a> for the latest and what theyre saying about it in washington, d. C. Well be right back. Yeah, hes clean, boss. Now listen to me, duck. I have an associate that met with, uh, an unfortunate accident. While hes been incapacitated, somebodys been paying him cash. Now, is this your doing . Aflac . Now, if i met with some such accident, would aflac pay me . Nice. This is your stop. [ male announcer ] find out what aflac can do for you and your family. Aflac . [ male announcer ]. At aflac. Com. Welcome back. Earlier this afternoon new jersey lawmakers releasing nearly 1,000 more pages of documents from the probe into Chris Christie<\/a> collection to the George Washington<\/a> bridge traffic snarls in september. Eamon javers, was there anything in there contradicting what the governor said yesterday . So far no. We havent seen anything in there, but, of course, as you say, theres a lot to go through here. Weve only had a couple hours. Weve got a lot of people poring over these documents to see what we can see. What you learn is about the web of relationships between the folks on the new jersey side of the George Washington<\/a> bridge and the folks on the new york side of George Washington<\/a> bridge, which obviously connects those two different states. And also among the Chris Christie<\/a> plel aiolitical aides were involved here. I want to highlight one exchange. This was a email that went out the week of the traffic closing. Its a blastering email from patrick foy, a new york side official here. He calls this in a very long email to a variety of folks involved, he calls this lane closure a hasty and ill advised decision. He said it resulted in delays to emergency vehicles. It had an adverse impact on the economy. He said he will not allow travel delays on yom kippur and he said he believes that this action violated the federal law and possibly state law as well here. So that gives you a sense of the level of outrage involved by some of the officials at least during the course of this traffic shutdown. What we havent seen yet though is anything, as you say, to contradict what Chris Christie<\/a> said yesterday, that he was entirely out of the loop and unaware of this and that he said yesterday he finds all of this unacceptable and he took action to discipline those aides who were involved. One of his appointees did take the fifth yesterday it should be noted. Thank you so much for the details there. This skandal capturing the nations attention. Its a white house story in washington, d. C. , where many think Chris Christie<\/a> has his eye on the white house. Lets bring in David Gregory<\/a> from meet the press. Tell us how this is playing in washington. This is a big blow because even if christie is not directly tied to this, the fact there are inquiries under way, the way theres damage thats been done a has a lot of democrats mobilizing and a little more quietly republicans who want to take christie on who have been critics of him feeling vindic e vindicated in some way. The big question is cultural which is what is it about christie as a leader or about his personality that would have him with people this close to him doing something this petty and this abusive . Thats going to be the question about the kind of leadership. These are people hes known for a long time who he has now dismissed who are part of this. Thats part of the question. If you look at whats happened yesterday, you look at the press conference, this act of contrition on his part, both republicans and democrats i talked to feel like he did a pretty good job, he bought himself some space and some time, but theres no question that his personality and leadership which were always an issue are certainly going to be put to the test as he gets closer to a decision to run. You know, david, one of the things that people are talking about up here is whether this plays to the kind of if you liked Chris Christie<\/a>, this doesnt necessarily make you dislike him. If you disliked him, its maybe for the same reason. What you said though about the gop is interesting to me. This is a key moment in the fundraising cycle. Were starting to see a lot of organization. There are a lot of people unhappy on the gop donor side by the fact that their investment dollars didnt generate a better return last cycle. How does this affect Chris Christie<\/a>s fundraising hopes if any . We dont know yet because its still early days and were still a ways off. The reality is that a lot of these big money donors in the party were much more inclined to write a check to Chris Christie<\/a> who was heavily courted you will recall even when it looked like romney was going to be the nominee. Theyd rather write a check to him, and, you know, youre right in saying that for those who liked him, they still like him. They saw how he handled yesterday and they would still very much be in his corner because he is what you see, what you get. Hes a plainspoken guy. The problem is a lot of what his personality, his gruffness, you know, whether hes a bully or not, he says hes not, its a matter of intet prosecutortatrp. That style will be looked at through a lens. Is it more than just talking tough to people who challenge him in a public setting . Was there a kind of rogue element of his operation where, you know, you would engage in this kind of vindictive politics . That would be the new question area. Is this going to be a focus of the show snuunday . Its certainly go going to be a big focus. Its also about dirty politics. Just how common is it . We get kind of an ugly view of it. This kind of thing happens a lot. It is part of the rough and tumble of politics whether People Choose<\/a> to see it or not. And who is coming up to discuss this with you this weekend . Well, among our guests is going to be the chairman of the Republican Party<\/a> at an important time. The closest youre going to find to a surrogate for Chris Christie<\/a> is the chairman of the party nationally who has defended him but who has to be looking a the this and be quite nervous. This was an early front runner 2016 to see going through these difficult days. All right. Such an interesting story. David, one, of course, that hits home for a lot of us here as well. Thank you so much for being here. You can be sure to catch more of David Gregory<\/a> on nbcs meet the press this sunday. Check your local listings for when and where. As temperatures rise across the country, our website is heating up, too. Dont miss the hot list coming up next. Plus, we want to know what you think. Who should round out the possible beatles reunion. Well put your thoughts on air. Dont go anywhere. [ male announcer ] we could say a lot about the most tracktested is ever. But the truth is. We dont have to. The experts have spoken. Now its your move. [ male announcer ] when you wear dentures you may not know that your mouth is under attack, from food particles and bacteria. Try fixodent. It helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. Fixodent, and forget it. Fifteen minutes could save you fifteen percent or more on car insurance. Everybody knows that parker. Well, did you know auctioneers make bad Grocery Store<\/a> clerks . Thatll be 23. 50. Now. 75, 23. 75, hold em. Hey now do i hear 23. 75 . 24 hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and. 75 25 now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter sold to the man in the khaki jacket geico. Fifteen minutes could save you. Well, you know. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Tgif. Right now hot list already burning up. Allen wastler, whats happening on the website . I have a good leader because it has two of the favorite subjects with our readers, housing and retirement. Taking a look at the booming housing marment fket for retiri boomers. Here is a fun fact. Every day you have 10,000 people turning 65, and this is going to happen all the way to 2030 experts think. Wow. So what thats doing to the Housing Market<\/a> a lot of people say, hey, im getting older, why am i in a big house where i have to shovel snow . Theyre moving into condos and apartments and thats changing Housing Market<\/a>s around the country. This is a deep dive into that. Its been acquiring readers at a rate of 60 read a minute which is pretty good for a friday afternoon. Yes, it is. It also speaks about our demographic a little bit. But anyway. The second one on our hot list today is a write up from jeff cox. Hes taken a look at one bank thats sort of bucking the trend of other banks and saying 2014 actually going to be kind of flattish. Its deutscheba bank. They foresee a return to normal which will tamp markets down instead of goosing it. A lot of people are interested in that one. Finally, the third one, this is kind of unfortunate, but target. Thats been a big issue with our readers all you were just talking about it earlier in the show. But basically we have a wrap up from javier david saying it could be up to 110 million do you get a sense from the comments there are a lot of people affected by this looking for help and solutions . Yes, i do. The Service Pieces<\/a> we put up and every time we have more developments in this, we have more links to Service Pieces<\/a> telling people what they should do. I wanted to see what our panel thinks about the stories. The one that catches my attention is 10,000 people a day retiring until 2030. I look at the whole debate of whether higher tacks drive out the wealthy from state. We see High Net Worth<\/a> old retirees from new york, new jersey, moving to sunshine states which have lower tacks. The argument is its taxes that are driving them. This tells me theyre just moving for sun. They just want to get warm and theyre retiring. I think you cant discount the importance of that when people are moving. I think this also speaks to the fact that we are starting to see this recovery in the Housing Market<\/a>. You had so many people in certain markets that were so underwater in the houses that it made sense for them to stay put. Now were starting to see more of that. Here is what i want to know, it goes to a cardiff obsession which is household formation. Are people just looking for a different kind of housing to complement what they might already have . I think the pressure on household formation will come from young people but this is still an important story. If it turns out this cyclical uptick in housing is partly driven by older people moving into multifamily units instead of Single Family<\/a> units, it has a smaller amplification effect on the economy. Thats something to look at the long but somebody still has to build the multifamily units. Absolutely. In terms of longer term issues, it might be something to feed into one of the stagnationist theories. Secular stagnation to use my producers favorite term. You may want to call it the mallair Millionaires Club<\/a>. And who should round out the proposed beatles reunion at the ed sullivan theater where the original Group Performed<\/a> 50 years ago. Paul and ringo are reportedly close to agreeing on a show. Your thoughts on air when we come back. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. [ male announcer ] this is the story of the little room over the pizza place on Chestnut Street<\/a> the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment welcome back. So more than ever the 1 is representing the rest of us according to the center for responsive politics. More than half of according to the center for response politics, more than half of congressional lawmakers have a net worth of 1 million. 268 are worth at least that much. The median for house members are 896,000. For senators, 2. 5 million. Its caused some predictable outrage. Youre saying we shouldnt be upset about this. No, the obvious reaction to the headline that congress is now dedicated by millionaires saying look, they are the policy butlers for the each. But, when you break it down, lets say you is a house worth 300,000 or 400,000, lets say you have some cars, maybe a boat, you dont youre getting up to 1 million without being very rich, again, thats a total net worth of 1 million. 10 to 15 of americans are in that category. Youre talking about Something Like<\/a> the 15 or 12 of americans. Its more there are so Many Americans<\/a> who are nowhere close to that level . Right but do we Want Congress<\/a> with do we Want Congress<\/a> to be a little better than the rest of americans . A little smarter than the rest of us have better educations . Therefore, theyre going to be by nature, a little wealthier. Were not talking about people suddenly worth 30 million or 50 million in congress, not even a billionaire, hes only worth 400 million. Im going to explode out of my chair. I reject the premise that somehow wealth equals iq. Congress is full of idiots. I reject the idea that somehow being better im not equating. You just said, with all due respect, shouldnt we expect congress to be smarter . I reject that. More importantly, also you said, if youve got a couple of cars and boat and house and this and that, people dont have a couple of cars and a boat, man. What about a retirement . A retirement account. You have a couple of kids and youre putting through college, youre going up hundreds of dollars in debt. But more importantly, theres another trend thats underlining this headline here and thats the fact that a lot one of the reasons were seeing more millionaires in congress right now, because in the last two elections we have seen more wealthier people get elected into positions, so in 2010, for example the freshman class of senators that were elected, Median Income<\/a> of about 4 million. But the other issue is let me bring some social science into it. Theres a juxtaposition between this news and inequality and minimum wage the 50th anniversary of the war on poverty. But increasingly political scientists are starting to study the impact of inequality on lawmaking. What they have shown so far that lawmakers are more responsive to middle income and higher income earners. By the way they are less willing to align their views with their constituents. Its bipartisan, too. Its worth wondering whether or not that empathy gap is made worse by the fact that the people in congress increasingly resemble their richer constituents. You think koch is out of touch because theyre wealthier i think theyre out of touch for a lot of reasons. And you know the other question, no one is answering here, does being a member of Congress Make<\/a> you wealthy . Thats another do you need to get in congress. We got to work quickly. At the end of the day, people vote for them and you get the congress you voted for. Were getting some interesting names as beatles standing for a proposed reunion. Ringo and paul. Well share them with you. Welcome back. Beatles reunion, anyone . We want to think who Paul Mccartney<\/a> and ringo starr round out the band if they perform at the ed sullivan theater on the David Letterman<\/a> show. Beatles reunion also holograms, worked for tupac. Okay. Dan . This is not a beatles reunion. Its not. Now, listen, you should have David Gilmore<\/a> playing guitar. They have mrid together before. They played together before. 2002, 2009. Its not a beatles reunion. David gilmore should play guitar and elton john on piano. Anybody else . What would be awesome and classy is if the stones showed up. They might outshine them. Because theyre complete. Now, i have three ideas here. First one, get a little to help from my friends, joe crocker. Another one, oasis the band that wanted to be the next beatles and spice it up and bring youth to the beatles with one direction. I could see you over there trying not to turn into the hulk. One direction what can we glean from this conversation . Someone whos great at cover songs, good at the guitar jack black. The same band basically for about 12 or 13 years. Phenomenal live. Does the entire beatles catalog. A vote for just paul. Have you seen Paul Mccartney<\/a> doing anything live . Yes. He looks great for like 55. Any pearls of wisdom you want to leave us with for next week. No. Nothing better than one direction singing beatles songs. Keep it here. Dont miss of that. Fast money is coming up. Melissa lee, its wwe today. Its starting its own online channel. Well talk to the cfo of wwe. This talk about wrestling, we have wondering if we had wrestling names, what would they be . Ill tweet you some suggestions. Yours, kelly, would be drum roll lush frost. It sounds like a nice paint color. Over to you guys. All right, thanks. Fast money starts right now. Im melissa lee. Heres tonights lineup. Targets credit card breech gets worse. A buying opportunity for investors","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800304.us.archive.org\/17\/items\/CNBC_20140110_200000_Closing_Bell\/CNBC_20140110_200000_Closing_Bell.thumbs\/CNBC_20140110_200000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240620T12:35:10+00:00"}