Transcripts For CNBC Closing Bell 20140924 : vimarsana.com

CNBC Closing Bell September 24, 2014

Squeeze. Theres wall street lore about Rosh Hashanah and sell yom kippur. Not coming right now. Exactly. An exclusive with the chief Investment Officer at calpers. One of the biggest funds in the world. And if you remember last week huge news by announcing to stop investing with hedge funds. Today, were going to find out why from the person responsible for those zixs. Largest Public Pension Fund. Great point. Because, look we made sure to know theyre the Largest Pension Fund last week. Hows this for a Company Vacation policy . No policy. At all. As in, take as much time as you like. Whenever you like. No limits. Were not talking hypotheticals here. Richard branson whom you see there vacationing as much as he likes at virgin telling the flows today, thats how its going to be from now on. Will it work . A lot of opinions on that. We have the full story coming up. As soon as we finish our vacation. I might give that a try. Yeah right. Exactly. Show you how the markets are trading right now, huh . Now up 159 right now. Just continues higher. Talk about it in the closing bell exchange. And our own rick santelli. Oil moved sharply higher here in the last few minutes on word of bombing over benghazi on a nonoil port in that region of the world. Were keeping eye on that right now, as well. Oil moved sharply higher here up 1. 5 . Jack, whens going on . Whats with the bounce today do you think . This is all end of the quarter type buying, bill. We have had one good run this quarter and with the holiday tomorrow with the jewish holiday tomorrow, remember, you have a couple of days to buy if you want stocks to settle in the quarter, beginning of next week. A lot of that is going on but, you know, thats not to say we havent picked up on a pattern. Remember, we have been watching the markets make new alltime highs on the expiration fridays followed by a 3 to 5 dip. Dont read too much into the rally. I think the next week or two is more important. Lets break. Breaking news out of western new york with tony stewart. Dom chu has the story right now. Whens the grand jury saying, dom . All right. So bill, kelly, last few moments here a grand jury, theyre announcing what they have come up with and after listening to dozens of witnesses and other experts decided not to charge nascar driver tony stewart with anything with regard to the crash that actually led to a fatality. So again, tony stewart and nascar perhaps a little bit sighing some relief here. A grand jury finds theres no basis for charges against nascars tony stewart in that tragic Death Associated with the crash. As you can see right there so again an Interesting Development here. Grand jury again finds no basis for charges against nascars tony stewart. Back over to you guys, bill, kelly. Dom, thank you for now. Appreciate it. Well get back to the markets. Its a strong day across wall street. The dow up 164. David kelly, question to you about all this speaking speeches talk we have heard from the Federal Reserve in the last couple of days, what stands out to you from what you have heard so far . Well, i think markets underreacted to the feds statement from last week. I mean, what the fed is essentially saying is theyll do rate hikes next year and six in 2016 so that makes Interest Rates too low here and part of the story here. Given how low rates are, the riskiness in the market and theres no other Good Alternative other than putting money in equities. I think thats whats driving this rally. And yet, rick santelli, treasury markets not acting that way. I see the yield on the 10year going up there. No. I mean, we have come off twoweek low yields as we settled yesterday. Below 254. I think it is to be xrekted that rates pop up as the equities right themselves. To some extent its kind of an end of the quarter every day for stocks for a thousand days. I know the nikkeis hovering at sevenyear high and highly warranted by the wonderful fundamentals and tomorrow theres a good chance that august durable goods tomorrow will release the worst month over month change in the history of that data point and im kind of bag little cute here because the last month up 22. 6 happened to be the biggest up month month over month. The Current Record down 13. 9 and a good point, you know, some of the datas going to do a mean reversion here and i think the last point that many treasury traders continue to embark on is just what you led off with. How many tightenings are coming up and i remember reading today what Charles Evans said. Be careful because the Housing Market isnt going to like it. I would like a comeback question. How much does it like historically low rates . Seems theres an affordability issue beyond and above the credit issue. I was going to ask you about the comments and the fact this he again is one of the guys saying we might need to overshoot the inflation target and been discussing for days we can barely get to 2 of late. He is seen as pretty influential on the front in terms of setting policy and you know and more and more people understanding that it is the evans, moderates and doves the hold more sway next year. Well, i dont think theres any doubt that the fed is going to go kicking and screaming on removing some of the subsidies its imparted on the marketplace and the word of caution a lot being written on this even though the fed might start to finished with qe for now and may end zero Interest Rate policy and the effect on the market even removing this is permanent so things like reverse repos and end of the quarter financing dramatically affected short term funding. Issues to contend with moving forward. Theres a reason thats happening. Theres a reason thats happening. Look. We have talked about this week after week. The bottom line is that they are not getting any help from the government. All right . We are not seeing policy out there thats creating anything that is considered to be progrowth. Here we are creating laws to stop companies from inverting. Instead of doing Corporate Tax reform. All of that is really creating this atmosphere that is really putting the fed into a corner where they have no choice to do but exactly what theyre doing. Theres always a choice, jack. Jack, jack, to your point, the fed two wrongs dont make a right. Go ahead, keith. Respectively, the feds been in a corner for a listening time. To say we have trouble getting to 2 completely discounts what the average american is experienced which is inflation between 9 , 10 , 12 , 20 . The statistics are more cooked than a Christmas Cook and what comes down to is confidence and if the fed is dovish and accommodative to the end of the time, it doesnt matter stimulus, qe, the revenge ofqe. That drives liquidity for a long time in this marketplace. Son of stimulus . Sorry. I dont think all this fed action doesnt actually inspire confidence. What real confidence is is when the doctor says you dont need the medicine anymore. And to ricks point, i say that the government isnt helping but the economy is recovering by itself despite that. I think we are at 3 for the Third Quarter. So the economy is recovering despite the somewhat strange policies out of the Federal Reserve and federal gft. Numbers dont lie. Respectfully i would disagree with that. Lets bring morgie in here at this point. You are a champion of high yielding bonds through this period. Are you still or where do you go for income these days . I think high yield bonds are still a great place to be. We have a big backup in high yield. The average bond yields 6 now which is pretty good considering the economys growing very slow and the equity markets shopping around here and i think bonds likely to be competitive with equities over the next few months and i dont think the fed is going anywhere with rates so that makes it even more attractive. Thats why i ask. If you expect the fed to raise rates sooner than later, do you stick with the high yielders attractive to this point . The answer i guess is yes. Yes, i am. Yes. I think the fed will have a very difficult time raising rates because a lot of the Economic Conditions are pretty slack, so many regulations. You press economic activity. I think its very difficult for them to reach the higher Interest Rate targets thad like to, frankly. David kelly, you are upbeat of the headwinds discussed. I would like your point of view with the energy story, commodity story. Today notwithstanding we have seen substantial declines there and thats an important thats right. Thats going to be a huge story, too. The u. S. Is reducing the reliance on imports and thats a net positive. You look at consumption, i think housing continues to recover. Net exports will recover over next two years and i can see the key point here theres not that much supply growth and use up capacity and thats why the fed has to move back to normal. Keith, which market was wrig right . We have an update 100 points and volatility is coming back here. Which markets got it right right now . Well, the markets got it right is the market were moving with today and path of least resistance remains up as long as liquidity is there and accommodative and we have money on the move. I think the Capital Creative force, strong earnings, all kinds of da the and cooked more than the Christmas Goose and data suggests to be in stocks. Best looking horse in the glue factory. You cant cite it as a reason for being in the market. Sure you can. The fed has been making up stuff all along. They dont know when or if theyll raise rates. They have pulled this out of a hat the entire journey. They were wrong about the crisis and formation. They missed it when they happened and the recovery. But that has created a monster rally and if youre not in it, you are getting left far behind. How can you say they missed . You just said they have created a monster rally. You got Corporate America stronger than ever before. How they have inflated everything, jack. Theyve inflated housing they have no choice. They near a box. Whats the alternative . A depression. Look. No. Thats a loaded question, jack. You know it. Well, yeah. The reality is that they have a choice. The Federal Reserve is doing what was an experiment ten years ago. All right . It was literally an idea that ben bernake had in a notebook. This is a strong recovery. This is the beginning of it. I dont disagree with that, jack. What i take issue with is you have 4 trillion of debt. You have got 1. 5 quadrillion of derivatives. I dont take issue with the fact they have inflated everything. Thats wonderful because as an investor i love that. As a trader i love that. As somebody thats a champion of the middle class, i love that. But you know what . Theres heck to pay one of these days and thats what both earls me so in the meantime we have to grab the rally, the profits. We need to be in there. You know what trading home runs but went out of the park and he was juiced. Okay . So yes. Stocks are up. Youre long. You get a check. If youre outside wrigley field, you still got to hold sammys ball and he was juiced. Come on. Theres a difference between trading 25 times over earnings. We have to go, jack. Im behind by two metaphors i think at this point in our conversation. Thank you for joining us. Sammy sosa and Christmas Goose. I dont know where were going from here. We have 45 minutes left to go in the session today and the dow up 162 points. 15 higher on the s p heading back to the 2,000 mark and the nasdaq up 42 and green arrows here. Look at this. What do i have here . That is the passport. This would be the new blackberry passport. Unveiling it just today. Well get a product review of a top tech pro. Find out if hes hip to its square screen and the touch sensitive keyboard when apple by the way having to pull back on the latest update on the update to the ios software. Well talk about this and the passport coming up. Also, financials in focus. They have been outperforming the Broader Market. Will it last . Later, chief Investment Officer speaks with us exclusively about the largest u. S. Public pension fund getting out of Hedge Fund Holdings altogether. A seismic move and well talk about the ramifications of all of that coming up. Dont touch that remote. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Rally day on wall street. We are affectionately calling it the postrussell 2000 death cross rally. Dow industrials i said josh brown said it was going to be like this. Dow up 160 right now. Nasdaq, the strongest of the major averages. S p up and the russell 2000 participating today bouncing to the tune of almost 10 points. Well see if it has legs. Another day, another product launch. This time, blackberry is out with its latest passport phone. Joining us now with the review of the phone, roger chang here, executive editor of cnet magazine and jon fortt. We want to know what the viewers think. Do you like the new passport . Its that square phone thats just been out. Go to the website cnbc. Com vote. Let us know. Well be watching the reviews as theyre coming out. What is your review . Once i got over the really weird shape and lets be truthful, it is odd. It actually was pretty useful. I found it to be great typing experience. And for managing the emails, a quick story, i was able to do that. Effective. I was surprised by how much i liked it. Thats what phone is supposed to be, jon. Productivity. The question, though, becomes, you know, is the size, use, Enterprise Customer willing to go back . Youre taking odds, probably not. I mean, this is not a mass market phone. These days, phones have become so much a matter of fashion and how people feel about themselves and takes somebody who doesnt mind looking weird to carry this phone. Not just because its shaped funny but a blackberry and the world not just to ios and android but to apple and samsung. Nobody else can seem to make a profit in this market yet. That said, blackberry isnt staking the future on phones themselves but on security and software and this is going to get people looking at blackberry again and what theyre trying to do and differently. I mean, you and i talked about this earlier but this is clear. This is an enterprise device. Theyre going after professionals, doctors and others who would find the size and the shape useful so they can read documents and things. Exactly. The Marketing Campaign is work wide. Taking advantage of the wider screen and it is what jon said, it is a niche product. Not everyone will want this phone and there are theyre trying to bank on the fact its so polarizing people will try it. Right . Theres a sea of phones and look the same and this one looks dramatically different from everything else. They want to pick it up and dry it. Whether or not theyll make the switch is, you know, pretty uncertain. I think most people want to stick with what theyre comfortable with and gets them in the door and the conversation. I like it. People miss the keyboard. Perhaps, jon, as much as it might be unorthodox to do Something Like this, people do like to be ahead of the curve and if they feel like the iphone im the person that has the passport, is that a blackberry it does have a little bit of a cool factor. I saw 150 people lined up outside 5th apple store this morning. Wow. Okay . Remember they did 10 million in sales. Just over the weekend. If apple i mean, if blackberry does that many of this phone in six months or a year they can count that as a success so its a bit of a different game but, you know, kelly, you have never been a follower. Yes, i can see you carrying this phone proudly. We are both of the same ilk but we both of us acknowledge that theyve got an image problem, obviously. Yep. Do you think chen can solve that . I dont care if anybody thinks i was not cool. What was your response when you saw what i got here . You got a blackberry . Blackberry is still around. Not one but two. Impressive. What do they have to do to turn this image problem they have . I think what passport does is kind of fix that problem is, you know, most people written it off as a dead company. Right . Failed last year with the phone launch. One thing to do to reverse the image is put out products like this that are buzz worthy and people like kelly want to give it a shot. This is different. How do you break this image . Next month they have got the classic coming out. Right . Make no mistake the thing that matters is the enterprise 12 to manage this blackberry and android and sell it to enterprises and argue this is going to secure you and buy the way well compete with air watch which is now owned by vm wear, ibm, anybody else who wants to manage our devices. Thats when the profits will come from. If this phone, if they can hand it out to i. T. And say, hey, you can do your work on this, too. Thats nice. Its the software to drive earnings on friday and going forward. Thats the specialty right there. Yeah. Do you like the new passport . 58 of the viewers we closed the poll, 58 , unscientific poll admittedly, they decided to vote, 58 like it. I have to imagine theres a big crosssection of cnbc and blackberry viewers. This is the phone they should have launched last year and the users have been waiting for. Well put. Thank you for being here. Will you use that . You take it with you . Sorry. Thats fine. Maybe later. Roger and jon. Developing story involving the jersey shores the situation. Im waiting to hear you say that. Dom chu has details. Im not the biggest reality tv fan or person out there but, again, bring you more details because this afternoon we told you that mike situation sorit

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