Day they dont celebrate. Hasnt for years. Capitalist must trade today. And in fact, they are trading and trying to get the major averages back in positive territory right now. The dow down 17 points. Been another one of those days we dont see a lot of volatility and talking with Jeremy Siegel on where he sees stocks going. He is one of the most bullish analysts out there, agretszively moving his targets higher and higher. He said dow 18,000 early on this year and looking dicey early in october. And now he says a real shot to hit that by the end of the year and his thoughts on the market and from there. The fallout of president obamas push to regulate the internet, it continues at a fast and furious pace. Question is whens better for consumers . Government regulated internet or one dictated by free Market Forces . Bill, down here, as well, the Stock Exchange with a moment of silence for veterans day. Anyway. Yes. Indeed. By the way, speaking of veterans day, a story to make your blood boil. It did ours. Enlisted men and women are the prime targets of predatory lenders. We have the facts and tell you whats going on and whats being done to put an end to this despicable practice coming up. Dow off by about 18 points. Slightly below the 17,600 level. And for the nasdaq, at least 14year high. Its managing to stay in the green. See if that continues heading into the close of the session. We have been in the red now pretty much since about midday. To what extent that reflects perhaps geo political concerns back to the fore, israel and that sort of thing. All right. Talk about it today. Amy wu back with us. Joe heater. Mike piqein. Peter anderson. Rick santelli has the day off because the bond markets closed. That he does. Thats nice. Amy, yesterday we were talking about what is going to be the next catalyst for this market and the direction. Whens the Options Market signaling right now . What are traders expecting . Big up, big down . Nothing . What are you hearing . I hate to say it but its a whole lot of nothing right now. The biggest catalyst is the opec meeting and you would think that we would see kind of something priced into volatility. The fact it falls on thanksgiving day is part of the reason that you really dont see much priced in. What i think is interesting is when things like this happen, i think it catches the market by surprise so that half day friday, watch out for it. The volatility markets havent priced in major moves and might need to. Black friday could be interesting. It will be. We promise. We have an interesting day planned, yes. Joe, to that point and of paul made in the journal this morning, that already has people talking about a santa claus rally. Are you anticipating this . Is it already priced in at this point . No. I think equity prices continue to go higher, whether its the santa claus rally, whether we just call it the Economic Data points moving forward. We are very bullish on equities for the remainder of 2014. How bullish . We think easily cross over the 18,000 mark for the dow. That point, i dont want to too glib here, only 400 points away. Well, i know. Earlier in the year, though, that looked like a long, long shot. So we think it will be up at least that high or higher so that another 4 or 5 on the dow before the end of the year. Okay. Peter, where are you putting money to work right now or are you . Oh yes. You know, i know that october was painful for a lot of us with that vshaped recovery. Boy, if you had courage enough to get in on that dip, you were well rewarded and were you . Yes, yes. You know, new money coming in. Were absolutely buying the same positions that we had, you know, starting the Third Quarter. So were optimistic. I dont know about santa claus if hes going to be coming this year but i do think that we hope hes coming. Yeah. I dont know if hes going to bring us any presents, though. If weve been good or bad. I do think that this year will end positively. All kidding aside. You know, one thing i did want to mention, im not sure if we have a lot of coverage on this, kelly, but do you recall that the fed conducted a survey. I thought this was surprising. A fed conducted a survey of primary 22 dealers of the treasury market and asked them, if we raise rates soon, whens the chance that well have to actually go back and lower them to zero . And they came back with a 20 probability that that might happen. To me, that means that the fed is very uncertain about the next action to take and if anything theyre going to be very cautious and im pushing my estimate out way to the end of next year for them to raise rates. Based on data like that that were getting now as to the way the fed is thinking of things. Okay. All right. We have some breaking news here. Mike, well get to you a moment. Kayla joins us with news on the in additions biggest banks. Kayla . That Foreign Exchange issue we have been talking about for weeks for the banks looks to be coming to a head tomorrow. At least a partial head. The Financial Conduct Authority in the United Kingdom expected to settle charges of currency manipulation of six banks and according to sources saying that the deal upwards of 1. 5 billion. Of course, theres currency fluctuations there and waiting on that final deal. Also, a settlement of some banks and certain u. S. Authorities are expected to be announced at the same time. That deal is expected to be brought by the comptroller of the currency and the cftc and fine banks about 300 apiece my sources say but it is unclear how many banks will participate in the u. S. Settlement. Some boards of directors meeting this afternoon and evening may choose not to participate. One reason for that, of course, parallel investigations at the department of justice ongoing and portend large settlements and could wait and see what the evidence is and go to trial. Bank of america, citigroup, forced to revive Third Quarter earnings due to the rising cost of the issues. Deutsche banc, jpmorgan set aside for the issue and more information tomorrow and it will be early im told that it will come out 1 00 a. M. Eastern time, 6 00 a. M. Local time in london and led by the fca. Back the you. Stay right there if you would. Lets get reaction. Mike, are you invested in the financials here . Is this priced in . You know, kelly, we are underweight financials. Clouds never part for them, do they . Until theres visibility, the coast is clear from a regulatory point of view, i think investors are wise to underweight financials because we dont know whens coming. Kayla, so many of the banks put aside so much money in reserves for legal, what was expected to be some high legal fees and paid and now they underestimated how much that is. Are we near the end of the process do you think . Bill, you cant really ever say that we are getting near the end of the process. There seem to be another issue every single day that we talk about the banks and interestingly, last week, when you guys had anton on the show, he was talking about the idea that maybe banks can no longer report xitems and legal be an item. Maybe legal needs part of the reporting line every single quarter and they need to do a better job forecasting of what exactly will be and not just have this black box of reserves that is very little disclosure around it and ends up being very expensive. I was going to ask for a look at how theyre trading. There you just saw putting it back on the screen. All down less than 1 indicating, again, that this is largely priced in. Underperformance we have seen. They have been healthy lately and reminds me this morning. I dont know, joe, if you want to weigh in on this. There was a downgrade to jpmorgan because of the Interest Rate environment. What is your view on the banks here . Well, i do agree from the standpoint that it just always seems like theres one more thing and theyre about to turn the corner. And then theres another issue that pops up again. So we also have underweighted in the Financial Sector because of the uncertainty surrounding this area. Peter, i bet the same with you, especially if youre looking at a delay in the raising of Interest Rates by the fed because that traditionally would be a good thing for the financials out there. If they keep delaying that, tougher to make money in the environment. Thats right. Net interest margins, the thing we all look at would be under pressure but i think its important to highlight theres a distinction. When we broadly categorize financials we mostly think of banks but theres many other types of xaenl that is are in that area. Sure. Lets just mention two. Card tronnics making atms and veriphones. Thats a point. Everybody, thank you. Kayla, thank you very much. Its early hours or late depending on if the news hits at 1 00 a. M. Eastern time. Thats only 6 00 a. M. London time. Theyre up early for that, too. Right. Well keep an eye on this heading into the close with the dow off 11. The s p still slightly negative and the nasdaq in the green. All right. Charge up the bull. We have Jeremy Siegel with us. Hes been a die hard bull for a few years now but does he think the s p will go higher highs next year . Jeremy speaking with us exclusively next here. Also ahead, General Electric updating the Compensation Plan doesnt look like hes going anywhere any time soon. Still someone says he needs to step up to keep the job. Both sides of his future and what happens to ge shares. 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Where youll find our lowest price ever on the c4 Queen Mattress plus 36month financing. Know better sleep with sleep number. Welcome back. Wild year for the market. The next guest bullish and now more confident that 18,000 is in the cards before the ball drops on new years eve. With us now, professor of finance Jeremy Siegel. Come on. Admit it. You were having second thoughts in october about that call . Bottom of that ebola scare, i thought it might be a couple more months than end of the year to get to 18,000. Once that was under control, it bounced back so, no. Im confident as i did last december saying it was going to be 18,000. So yeah. I did hesitate for a moment there. What did you make of that bounce . Saying 50 50. This is not a slam dunk. Nothing with the market is ever a slam dunk. What did you make of that pretty overwhelming that the next six, seven weeks bring us beyond 18,000 on the dow. What did you make of that bounce . I mean, this market for the last five years has been a hallmark of the rally, has been buying on the dip and that was the mother of all dips that people bought at the time. What did you make of that co comeback . I remember talking to joe kerrnan and we said everyone is waiting for a 10 correction. It wont make there. Whats interesting is intraday top to intraday bottom in october for the s p was 9. 9 drop. So if you were waiting for 10, you didnt pull the trigger, thats what the market does to you all the time. All those people waiting for that correction to get in dont get in and the mark keeps on grinding. Well have a correction. It is part of the Dynamic Market situation but its always dangerous to say, im going to wait until it happens before i invest in the market. This summer, jeremy, i remember you saying it could go to 19,000 or 20,000. If we take 18,000 as a given, just for the sake of the argument, what happens . Do things start getting too good for your liking . Too good . Well, we are much closer to full market. Last five and a half years since the bottom of this dreadful bear market. I dont think were quite at full value. I think were slightly undervalued. Im calling for the end of next year or what i think the true value of the dow would be 19,000 and 19,500. Closer here, you know, the area of uncertainty grows. It could be a flat year of 18,000. We havent had a flat year for a listening time. Or it could rise to that 20,000, 21,000. If we get good Economic Growth next year, you know, 3 plus that would still be supportive . We could see a lot of people finally saying, hey, you know what . Ive become a believer again in the market. The question i guess i have goes to the scenario next year. If the growth is stronger in and the fed responds to that and employment is back towards full employment, would that be a problem for the market . Is it ultimately procyclical and depend on inflation and why do you think inflation isnt going anywhere . Well, first of all, i mean, you bring up something important. I think the fed raises Interest Rates next year. Maybe sooner rather than later because i think theres going to be some fairly strong Economic Growth. And we cant keep on having 200,000plus growth in employment. Our labor force isnt growing as much so therefore that does squeeze the unemployment rate. When you do the historical research, bull markets do not end when the fed starts raising rates. Years later before we finally get its at the final stages, not the initial stages, of raising rate that is we have to worry about the end of the bull market. So my belief is theyre only going to raise them with strong Economic Growth. Thats great for earnings. And, hey. Im not afraid of a 1 , even a 2 fed funds rates. Im old enough to have lived through 20 fed fund rates and seems very, very low to me. What about kellys question of inflation . Why its not near the feds targets right now. Theyre hopedfor targets. And the strong dollar and the lower youre right. Right. I mean, that could keep them down at what we have is a little bit we have a labor market tightening. Not yet producing any inflation but were looking at it. We have Commodity Prices going down. I see that. And we do have some doves there that are making their voices more strongly heard at the fed. So, you know, will we have to see the whites of the eye of the inflation or will at 5. 5 the fed finally saying, hey, if we dont start normalizing rates, given the lag in monetary policy, we may be a little bit too late . Thats the struggle that were going to see with the fed but i think with improvement in the Economic Activity well get a stabilization of the Commodity Prices and that will take away some of these deflationary fears in the market. Well, then, jeremy, just going back to your point about equities, final question simply this. When people start to talk about valuation and whether things are frothy, what do you say to them . What are the fundamentals to go to 19,500 next year . Well, i believe that Interest Rates are going to be generally lower than we have experienced them in the postwar period. Its about the new neutral. 2 short run, maybe 3, 3. 5 run on the 10year. In that sort of an Interest Rate environment, its very easy to see stocks trading at 18, 19, even 20 times earnings would not be expensive in that environment. So, my feeling, thats one reason im not worried about a frothy market and, oh, were over the 140year average of 15 pe because in a low Interest Rate environment stocks deserve a higher valuation and i think were going to be moving towards that through 2015. All right. Jeremy siegel, thank you. Thank you. Thank you much. Yep. So still bullish. I didnt hear the sound of him pounding the table. As he was telling us. Wait for the santa claus rally. Well see. Down 14 points right now. Expect some quiet volume. Veterans day. The bond market is closed. No direction from that sector. The dows down 14. The nasdaq up 3. S p down a fraction right now. Never short a dull market. Amen. Seems to be further evidence of that today. You know what they say in westerns . Sure is quiet. Yeah. Too quiet. Go ahead. Next. No. Im writing a piece in my head already. General electric shares, meanwhile, lagging the s p 500 over the past year. Somebody here said that jeff immelt should be held accountable and moving how it pays him. And later, ford is taking a big gamble with the aluminum fseries pickup trucks. Will they like the change from steel and keep it the best selling in america . Well have a special report from dearborn, michigan. Stay tuned. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. [annits working forny. New york state. Already 41 companies are investing almost 80 Million Dollars, and creating 1750 jobs. From long island to all across upstate new york, more businesses are coming to new york. 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