The labor market. I heard comments such as wishywashy, you know, maybe she moved back to the center, it wasnt nearly as dovish as it could have been. They dont knoech. Theyre saying it wasnt hawkish either. Weve seen those before. Instant reaction just ahead from pimcos bill gross. Were going to find out what the man they call the bond king makes of todays comments from the top two central bankers in the world. Cant wait for that. And just when you thought your privacy couldnt be violated any more, comes word that if you have gmail on your smartphone, there is a weakness that allows malicious apps to obtain your personal information only more than 90 of the time you heard that right, more than 90 of the time. Were going to talk to a Cyber Security pro to find out what, if anything, you can do to protect yourself. Right now, were watching markets. With an hour to go after hearing from both janet yellen and mario draghi, the Dow Jones Industrial average is off 27 points. Its hovering around the 17,000 mark. Well see if that holds as we head into the close. The s p also negative on the session by 2 1 2 points. The nasdaq, though, slightly positive, helped by some strong earnings that we were First Talking about here yesterday during the program. All right. Joining us now in our Closing Bell Exchange is jim kan from weather enhancement advisory services, rob morgan from v2v associates and kenny pulcari. Also joining us from jackson hole is Steve Liesman. Kenny, i want to begin with you. Did you hear what you were expecting or had hoped for from either ms. Yellen or mr. Draghi . No, you said it, it was just lukewarm, right . It wasnt super dovish, but nor was it super hawkish. They both remain concerned. What did we learn out of it . Not a lot. So, i think for the most part, i think most of the time, jackson hole is really used for more academic, broad economic discussion and concepts. And so, you know, rarely are you going to get something so marketmoving, and if it was, it would have been, you know, dissected and pulled apart and then redissected and reanalyzed. So, quite honestly, im not necessarily surprised that we didnt get much. I dont think the markets are necessarily surprised. I think the market still thinks its steady as she goes, easy money going out for as long as we can see. You know, its so interesting to contrast, Steve Liesman, how the u. S. Is doing in this economic recovery with europe right now, because mario draghi sounds almost desperate for europes politicians to help them out and get their recoveries back online. I think thats right, kelly. I think what he said here is ive got a bunch of stuff in train. Ive got the ltros happening in september, were working hard, fast on the abs purchases. I dont think there was any reasonable expectation that draghi was going to announce anything new. He did say, as he said before, they stand ready, if needed, to do other unconventional measures, including, he didnt say qe, but thats implicit in what hes saying. What he wants is for the fiscal side to step up. He wants to stop the deficit reduction going on over there, and he compares and contrasts the u. S. With europe and finds that the u. S. Backloading its fiscal deficit reduction had a much better effect on unemployment than they had in europe. So, hes exactly right. I think hes begging them to do more, because he says hes not really doing more beyond the substantial measures announced in june. Steve, as people are reaching for their acronym playbooks looking for ltro, they have no problem understanding qe, okay . And if they wanted an announcement today or any sort of leadin to fullblown quantitative easing, the proverbial bazooka from draghi, they didnt get it, yet. No, but that was silly, scott, because draghi is not going to come to wyoming and announce qe here. He would announce it at a meeting that would follow a central bank ecb meeting in europe. Thats where and when he would do it. And he didnt even hint at it here in the sense that he just used language that theyve used in the past. That was not coming today, and i think it was wrong to have expected it. There is, rob morgan, though, a sense that just going back teach the people invited to jackson hole. Remember, the list changes all the time. They even like to pretty much keep the itinerary close to the vest, because there may be discussions that bear fruit in the months ahead with regard to central bank policy. And look, theres an argument right now that perhaps there needs to be more global coordination. Are you sympathetic to that at all in that sense . Do you think there might be more to come out of jackson hole than we can sort of see on the surface of things . Well, certainly, kelly, that could be the case, but even though draghi didnt mention qe explicitly, their Unemployment Rate is still attractively high. It seems obvious that theyre going to have to bring out the bazooka. And even though no news came out of today, from a market standpoint, that implies that the euros probably going to be weak, the dollars going to be strong. That means u. S. Small caps should do well and u. S. Commodities in the energy and materials space probably suffer. So, even though there wasnt a lot of news today, i think that underscores part of our investment thesis. And yes, hopefully there can be more global coordination. What is that thesis . Basically, we like, we prefer small cap u. S. Stocks here that are growthoriented, and we like the cyclical sectors, but we would underweight some of the defensive commodity sectors, as i said, like energy and materials. Hey, jim, love the name of your firm, Wealth Enhancement Advisory services. So, on a day like today in a market like the one were talking about with stocks basically at new highs, the s p, what advice would you give me to enhance my wealth today . Well, the best advice we can give you is to, you know, be smart with your tax planning and save, but besides that, we would tell you that u. S. Large caps look relatively attractive. So, evaluations have gotten a little bit stretched. Contrary to what the last guest was saying when we look at valuations on small cap stocks, we think they look pretty expensive, and weve been rotating out of small caps. When we look more globally, we do think that a stronger dollar bodes well for emerging markets, and we certainly heard today that the dollars likely to be stronger. Thats going to encourage exportoriented economies like china and india, to some extent, thats going to encourage growth in those places and some of the malaise weve seen in emerging markets we think will come to an end as the u. S. Strengthens and the recovery here gathers strength and the dollar strengthens relative to some of those currencies. And wed also like to bring in Sharon Starks into the conversation from d. A. Davidson and company. Sharon, do you still think the 10year is going to 2. 35 . Its not a far distance from about 2. 4 now, but do you still feel that way, like Interest Rates are headed even lower . And if so, what does that mean for investing here . I think there is a possibility, simply because theres still some buying that needs to be done of accounts that, frankly, were shorter duration than they needed to be, and also, they need yield. You also have banks that need to prepare for the liquidity coverage ratio requirements that are going to be put in place in 2015. So, i think there is still some buying that needs to be done that could take it back down to that key resistance level. But then, of course, going into next year, hopefully as the economy continues to strengthen, we are looking for rates to rise through 2015. Hey, steve, you know, we wrap things up from jackson hole and try and figure out what ultimately the biggest takeaway is going to be. And by virtue of the way that janet yellen spoke today, some saying that she moved back towards the middle, acknowledged certain views that had already existed within the fed. Does she at least increase the debate, if nothing else, inside the room, as to the best course in the nearest term for Interest Rates, given real concerns over unemployment, whether the labor market is suffering cyclical or structural issues . I might just tweak what you said. I dont know if she agrees to it. I think she reflected the debate thats going on, and we learned more about that debate in the minutes this wednesday, scott. I think what happened was i was a little bit surprised yellen didnt give more of a defense of the notion of labor slack in the economy, and i think its somewhat significant she moved to the center. I think the significance of is that is it increases her flexibility to move if we do, in fact, get an increase in the reduction of labor slack in the economy. I dont think there is any plan to do that right now. We talked to a bunch of centrists. We interviewed five fed president s here, including, you know, John Williams, jim bullard. Jim bullards one of the ones that wants to go earlier, but John Williams and Dennis Lockhart from atlanta, theyre still in mid2015. In fact, Dennis Lockharts quote was im still a mid2015er, so we get that. And ultimately go ahead, scott. I was going to say, steve, i heard you said, it could have been six months ago or every month there out, that what the fed does is going to be datadependent, right . And we leave jackson hole with essentially the same scenario in place. Everything is datadependent from here forward. Nothing has dramatically changed. No, you sound disappointed, scott. Im sorry about that. We do our best out here to give you the information, but no, no, i think the market is looking for a little bit more. Would you have it any other way . Would you have them be dogmatic about it, rather than be datadependent . No, im not disappointed at all. I mean, i would expect i say it somewhat sarcastically, in that of course im joking. Everything is going to be dat datadependent, right . But some people were expecting her to be a little more dovish, there were risks in the market that perhaps she was going to be a little more hawkish and they really got a vanilla speech. Look, what we got was follow the u6. What we got was follow parttime for economic reasons. What we got was watch this debate internally about how much is structural, how much is cyclical. I mean, personally, i dont want the fed to do anything but that, rather than stick to the ideas theyve said. Fact is, shes ready to change hir her mind if data changed. That doesnt appear to be the case right now. And remember, scott, these guys have been burned by predicting this turnaround and backing off repeatedly. They dont want that to happen again. I agree with you, steve. Quickly, we have to go, but let me ask you about this. Steven stanley raised it in his note this morning. He says at least a handful of Bank President epresident s, and includes bullard in this is statement, saying we should forget about the labor market and focus on u6, theyre as agitated as ive ever seen anyone on the fomc. He thinks theres actually a lot more internal unrest here than meets the eye. I think there is unrest, and i think thats part of the reason why janet yellen has moved a little bit more towards the center of the debate, giving a very evenhanded discussion here. But i dont know how much thats going to change policy. Remember what theyve said, that theyre going to wait a considerable period after the end of qe before they raise rates. I just dont think theyre in a position now, or even that the data support going back on that pledge right now. Right. But that considerable period, maybe its march as opposed to june. Thats a distinct possibility. And i walk away from this meeting thinking march is a possibility and junes a possibility, whereas maybe before i gave less probability to march. Well, i hope you got some good hiking in, too. Thank you, steve. Thank you, everybody, we should say, this hour. Weve got about 45 minutes to go here into the close. Look at this, the dow trying to make a comeback here, only off about six points now at a level of 17,033. At the highs of the session today, we were up 25. Well keep an eye on it. S p is down about half a point. Any positive close for the s p, kell, is going to be another record high after hitting that mark yesterday. There is a look at the picture. S ps virtually flat right now with about 45 minutes to go. Up next, pimcos bill gross gives us his exclusive reaction to the jackson hole speeches just delivered today by fed chair janet yellen and European CentralBank President draghi. Wait until you hear what the head of the Worlds Largest bond fund is reading between the lines. Also coming up, what will the changing of the guard at home depot mean for its stock . The Home Improvement giant naming u. S. Retail president craig menear, who i interviewed a few weeks ago, as the next ceo. Well hear about that and whether home depot is a musthave stock. And later, what can you do to safeguard your email account, which researchers say can be hacked . Your email account. What did i say . Gmail, email . Your email account. Isnt that what i said . I dont know. Email, gmail, everything. 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The big event of the day, Federal Reserve chair janet yellen speaking in jackson hole, focusing much of her commentary on the labor market, which she says still isnt where it needs to be, but an economy that is getting closer to where she wants it. Well, the bond king himself was listening intently today, and pimcos bill gross is here with his reaction. Bill, welcome. Good to welcome you back to the closing bell. Thank you, scott. Nice to be here. All right, so, you heard from ms. Yellen, mr. Draghi. Whatd you think . Well, i think, you know, weve heard talk about twohanded economist and vanilla. I think the best description in terms of today is all hat and no cattle. I mean, theyre out there on the ranch, and ive been out to jackson hole, not at the fed meeting, but riding horses at the grohan river ranch, which is close to steve. And so, todays discussion from draghi, from yellen, you know, basically all hat, no kettle. They talked about things theyve talked about before. It doesnt mean that the fed and the ecb arent in a position to do additional things. They are. But at this point, we didnt learn much that was different relative to what we knew yesterday. You know, its funny, bill, i hear a lot of people, and obviously, you do as well, that the fed is behind the curve. And i just wonder if we come out of mr. Draghis speech and im already hearing from some people that the ecb, in fact, theyre the ones who are actually behind the curve, that maybe people were looking for mr. Draghi not to announce any sort of thing here. We know thats not the forum. But do something more than just urge fiscal lawmakers to do more over in europe. I think so. Again, the market wants to hear quantitative easing. It wants to hear deimplementation of the ltro. They want to see something that in effect, scott, drives the euro down and the dollar up and makes euroland more competitive on a currency type of basis. I mean, there are limitations in terms of what draghi can do. The german 10years at 0. 98 . The u. S. 10years at 2. 4 . And so, you can see the room that draghi has to move, and in terms of the margin relative to zero. So, what draghi can do in terms of quantitative easing is not necessarily buy a lot of bonds but suggest to the marketplace that the ecb will be where it is for a long, long time. While theyve done that with the ltro and basically, you know, guaranteed financing for three to four years going forward, but whats really needed here is a policy to drive the euro down, and you know, perhaps structural reform can do that to some extent, but i would think it involves more of a longerterm promise that financing will be kept really low for a really long time. And longterm refinancing operation is what ltro refers to there, for people who are following along. Bill, so, i wonder, weve seen this massive compression trade in european Government Debt as a result here. Were seeing, as you said, they would like the euro a little bit weaker. Thats been accomplished here on the back of a stronger u. S. Dollar. I mean, is janet yellen the new face of the strong dollar . I think she could be. And of course, as steve mentioned earlier, you know, its down to whether its march or june. And then there are arguments for either one. I think most important, though, and many would agree, that its not just when the fed starts, but its the slope of the increase going forward. I mean, we know that the sun will rise in the east, and usually its around 6 00 in the morning, but we dont know in exactly what season it is, whether its summer, fall or winter, and you know, the slope of the sun over the horizon. And so, thats the critical element. Thats where pimco believes that with our new neutral, which basically says the fed, yes, will increase Interest Rates, yes, will strengthen the dollar, as you mentioned, but you know, will stop somewhere around 2 as opposed to 3. 5 to 4 , which many fed officials which is different. We asked whether its goldman, where they still think its going up to 4 , we asked Dennis Lockhart about this. He says its probably 3. 75 . I mean, nobody else really has this view that you guys do. Well, they dont, you know, except for and lets insert mr. Carney at the bank of england, who suggests that their longerterm new neutral is really 2. 5 , as opposed to 4 to 4. 5 . In other words, he says half of what it was. And so, we have some academic and policymaker, you know, coordination with the pimco view that, basically in a highly levered ec