Have we ever. There is a lot more coming up, though, here from carnegie melon. We have a couple of big interviews for you. Earlier i spoke with a major donor to the school, Hedge Fund Manager david tepper and asked him about the rumors he was in solar play sun edison yesterday. Here is what he had to say. People probably smoke a lot of marijuana out in your viewing audience and people on twitter because i dont understand where stuff comes from. I have never talked about stocks on this program. We havent had any big positions in my book for a year. I just was i mean, really truly there must be good gone cha coming into the country. We will have more on teppers comments. Was that a no . Well, but he said he hasnt had a big position in it. He seems pretty dismissive. The comments i think we have to let stand for themselves. By the way, cmu board member ray lane who is a Venture Capital giant Kliner Perkins is coming up in just a bit. Weve enjoyed your many interviews from carnegie melon throughout the day on cnbc. On wall street the major averages are on pace to record their strongest gain in four years. Is that unbelievable. And the fifth best gain for the dow since 1992. Who knew . So are we setting ourselves up for a continued yearend rally . Thats what we will look out ahead. One stock not participating in todays rally is valeant, the shares plunging again after the company cut ties with a controversial farm ri cyst butter that it had been accused of using to artificially raise sales and then you also heard about Hedge Fund Manager bill ackman coming to valeants defense today but it hasnt helped. We have the latest details on that coming up. Plus we will also take the pulse of the etf industry and wherein investors are putting their money now we speak to Jonathan Steinberg in just a bit. Lets start with bill ackmans comments on vel yantd today. Meg terrell has the latest for us. In a fourhour long call bill ackman spelled out the history of their investment in valeant saying he he believes in the company and ceo mike pearson but there are a couple of things he takes issue with. Valeant could improve on their investor relations, public and government relations, trying to beef those up. Also saying they should have disclose this had relationship with philidor saying they only learned about it with everybody else and then he did compare this instance of what they are going through with philidor and the lack of confidence so something that happened in the 1960s to a. M. Meck, comparing the situation of warren buftd getting into that stock at that time. Ackman thinking about himself as Warren Buffett and having the same return as buffet has seen with amex. Worst Case Scenario valeanter sells itself, however, he thinks the company does better as a standalone. There are several things challenging the company, it is dealing with several government inquiries into its drug pricing an Patient Access programs, but this morning as you mentioned it did end its relationship with that Specialty Pharmacy philidor so investors hoping that will maybe provide a bottom to the stock however it is down 18 perhaps because sit ron research that short seller that sparked so much of this says it has another report coming out on monday. I wanted to ask you about that. I dont know if there is an answer to this or whether we even know how if there is a timetable for these government investigations and for their own internal investigation. Do we have any idea when we might hear results from any of that. The internal investigation it probably is continuing but they have concluded they are ending that relationship with philidor. Earlier they said they would look into potentially biology philidor and bringing it in. They are not doing that now. It will be interesting to know what they learned from their investigations and whether they learned some of the things that have caused so many questions about that business. As for the government investigations we dont really know. They have been subpoenaed by two attorneys general from massachusetts and new york, so presumably we will hear about that, but we dont know the time frame on that, either. All of this is still up in the air and that cant be good for valeants stocks stok. To that point did bill ackman elaborate on how much he thought philidor might be contributing to valeants earnings in recent period here . What we do is that philidor contributed 6 of valeants revenue flow through valley yant year to date. What people have been questioning is how much growth was going to come from that channel in the future. Ackman said they dont know that. Thats a question everybody has is once valeant unwinds this partnership and the path it takes forward will we see the same growth rate as we would have seen before. Meg terrell with the latest on val yaent. Joining our Closing Bell Exchange for this friday we welcome injury required fitzpatrick, keith bliss from can a tone and company is with me at post 9 and Rick Santelli is in chicago. Keith, we are back to levels before the market break in august where there were concerns about global growth, about the fed, all kinds of things. No worries now . None of those concerns have gone away, its amazing how the market has turned and we have repaired all the damage technically that we got in the market from that late august sell off. Weve reclaimed territory for the big cap indexes well above the trend lines going back to 2011 and 2009, back above their 50 day, 200 day moving average. The one thing that does give me pause for concern right here is the russell, the small caps have lagged, we have been bumping up against pretty stiff overhead resistance, this is the seventh attempt we have made and were failing again. Until that gets going we have to question the credibility of the mega cap rallies. One thing to note we are go to en tr the strongest seasonal pattern for u. S. And Global Equities all year long, november is the third best month since 1957, december is the first best month since 1957. Its setting up to be interesting what happens, a lot of it is going to have to do with the dollar rally. If the dollar continues to rally then we should see monroe date into the small caps and that will give you the impetus to keep pushing until the end of the year. Rick, i was asking gg to ask you about that. How much do stock gains depend on the direction of the u. S. Dollar and crude and is it to the upside in both cases . I think the oil story plays into different correlation arguments but it really is the story in and of itself. I think when you look at all the other issues, listen, we can gate that now is the wrong time to raise rates, but we know they shouldnt be at zero, but those dynamics of pricing money cheap are still a huge part of the equation. You know, you look at all the issues today, like ackman, you know, herbal life is up over 40 of the year, valeant down 35 , looks like ackman should have switched his cards around at the beginning of the year. Gerard fitzpatrick, what is about in fixed income. Weve seen yields creep up here recently, especially after the fed meeting, you think thats going to continue. Why do you see yields a year from now . We do. In a years time we see yields higher, we see the ten year treasury up around 2. 5 to 2. 8 . The reason why is looking at the fed. The fed is likely to kick that off. The rest of the market is looking at a 50 50 chance for a fed hike in december, we see a higher probability. We do believe that the fed will hike in december, never an ideal time but i believe they will want to, employment is getting better, inflation starting to rise. Let me just ask you about this. So the closer weve gotten to this purported fed rate hike the lower the ten year has fallen if you look at just the last three to four to fiveyear period. Why is it that the closer we draw the less that rate seems to move up . Well, theres still some concern always out there. The debate can go on both sides, weve obviously gone through a period where theres economic ro growth concerns, followed the financial crisis. The fed is in the position it wants to keep Interest Rates relatively low. If you look forward its saying employment is pretty good shape, inflation likely to rise and now is a good time to start hike those rates, really trying to offset some easy money out there. Increase the cost of financing, gives better control in the economy. Keith, if we do get yields moving that much higher in the next year would, that start to crowd equities out or what do you think they would do . It hasnt so far. The ten year yield has moved up 7. 5 this week from around 2 to 2. 16 as we sit here right now and equities have been pretty resilient. I think the seasonal patterns are overriding whatever is going on right here and i wouldnt be a seller of equities right here. You may not want to be pressing your longs too much but certainly dont get out of the way of equities right now. All right. Gentlemen, good to see you all. Thank you. Have a good weekend. Happy halloween as well. Happy halloween. U. S. Troops are heading to syria, eamon javers has the latest developments on this important developing story today for us. Thats right, bill. The white house announcing earlier today that it is stepping up its campaign against isis inside syria, this time involving u. S. Boots on the ground, officially acknowledged now about 50 u. S. Special forces the white house says will be participating in advisory roles with moderate Syrian Forces and others, they wont say exactly hot United States will be fighting alongside in syria due to operational secrecy reasons. The exhaust also saying its stepping up its campaign of air attacks inside syria against isis. We have a statement from john mccain up on capitol hill. Mccain saying unfortunately this limited action is yet another insufficient step in the obama administrations policy of gradual he is grags, such grudging incrementalism is woefully inadequate to the scale of the challenge we face, john mccain going on to cite increasing russian and iranian influence inside syria as well as across the middle east. The president had said as far back as 2013 that he would not put u. S. Boots on the ground, obviously, bill, the situation here is changing on the ground and the white house now deciding that this is the direction the situates needs to go. All right. Eamon javers in washington. Thank you, eamon, we will see you later. Reading to the close, 50 minutes kelly, you want me to do this or should herb do this . I was going to ask if you wanted to read the tease, herb. Hes wearing a nice bow time for the occasion, too. I saw that. Very dapper for a robot. There he is. Slight down he has a little bit of a learning curve. The dow down 32 points, s p down 4 and the nasdaq is down 13 as we close trading out for the month of october. Its been a very good month, as a matter of fact. Up next, wisdom trees ceo Jonathan Steinberg joins us and will speak about the stunning gauges the major averages have seen this month and if he sees stocks hitting new highs by the end of the year. Also ahead the ecb was very easy leaning, the chinese surprisingly lowered rates. You know, we were surprised, too. Hedge Fund Billionaire david tepper speaking with me in an exclusive interview, find out what else he was surprised about when we come back. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. The ecb was very easy so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. The ecb was very easy welcome back, earlier this morning i sat down with david tepper. Here is what he had to say about the current state of the stock market. The ecb surprisingly was very easy leaning, the chinese surprisingly lowered rates. You know, we were surprised, too. And, you know, we were cautious before on the stock market because of margins and all these other things and really those things havent changed that much. Whats the paradigm . Thats what you did so much. Paradigm . You identified the paradigm that we were in. You said, look, we are in a period where either the stock market is going to rally, if it doesnt the fed will get involved and thats going to boost the market, either way you win. Thats what happened for many years going back to the post crisis period. What kind of paradigm are we did n. Today . We dont have to be in a paradigm. Listen, i think we are in just Old Fashioned investing here. You have to keep some cash on the sidelines, have a diversified portfolio, have some you know, i dont love the bond market right now, but im guessing we own some bonds if youre sitting out there. I dont think there is a magic formula. If there was a magic formula it would be china easing a lot and i consider them much too tight still and play too many games with their economy. If there was going to be a paradigm it would be china really easing not one quarter but they could probably lower a couple hundred bips. In your portfolio it includes names like General Motors, apple, healthcare as well i do own General Motors. You do own General Motors. I forgot about that one. It was surprising on a day when you had ferrari going public, the day that General Motors reported earnings gm stock was up better, up 6 on those results, ford rock yer after it. Why is General Motors, is that leverage to the u. S. Economy, people continuing to buy cars at a rapid pace. Two things General Motorsports, it is lenchtd to the u. S. Economy has done very well, theyre doing better than other folks like ford and china. Not that i love to give, you know, i dont talk about management that much but mary is doing a really good job there. You know, so thats for you, mary. Okay . She really s im a fan and we did a deal with them and, you know, which i think gave them a little leeway to not have other people bother them, activisttype people bother them. I think its really got its act together. To tell you the truth i dont think the market is recognizing it yet. When it comes to the hospital space because there are a lot of people trying to wrap their heads around this, has something changed . Is it the payer mix . We have a big position which is filed in hca, we probably if we have done anything recently probably added to that and those stocks have gotten hit too hard. Does that indicate that this economy is going to be okay . Were starting to hear people talk about recessions, talk about a slow down, talk about whats happening in the industrials the United States is great. Its that some people put in red on the other side of the world thats causing a problem. Its everything related there, but the pure United States is, you know, listen, were pretty strong here. Always candid. Bill, there was more. Oh, a thousand percent. When we were talking about healthcare and hospitals he said the reason he thought that hca sold off so much is they cited one of their reasons in earnings for being higher labor costs. Thats what led that to that question of me saying so is the u. S. Economy fundamentally okay. He said, yes. Thats not going to be great for corporate earnings but from a larger picture point of view you would rather see wage pressures than not at the moment. Lets bring in our guest with me at post 9, he has been listening in Jonathan Steinberg founder and ceo of wisdom tree investments. Davids point is that it doesnt have to be a paradigm right now. There are a lot of triggers confused about this period right now given the movement in Monetary Policy by other countries around the world and ours may be going in the opposite direction here. So theres no question from etf lows which do see markets centering very quickly that there has been a lot of uncertainty yes, money that is not been flowing as advisors and money have been unsure what to do. You mentioned the ecb which is interesting because our currency hedged funds have had negative outflows the last few months sharply turned positive this week, so they are up about 650 million for the first four days this have week and those have really powered our Earnings Results for the last, you know, for the year to date numbers that we forwarded today. Jonathan, hello, im glad you raised the european hedge etf. Thats a product that a lot of people piled into back in the spring, it was heavily advertised, part Yanis Varoufakis you are smart bet at that portfolio but then f course it suffered heavily when the macro turned turned. When you say from an in flow standpoint all through the Third Quarter and this quarter positive inflows on that strategy but when the european equities trade down the fund trades down. I know there has been a lot of noise been the etf industry but the etf industry is the safest place for investors to put their money. Transparency, liquidity, tax efficiency and the transparency of fee is really what serves the investor best and because of that weve been seeing massive inflows as an industry for a decade and i dont see it stopping. This plays into your hand but, you know, morning star today theres the Labor Department rule changes that they want to enact with Financial Planners where they would become more transparent and the industry is fighting that, but morning star said, look, if these things pass you are going to see as much as a trillion dollar flow into index funds as people being dissatisfied with the managers that they are putting money with. I imagine would agree with that. It would be a tremendous boone to the etf industry if the fiduciary rule is enacted. No question about it. Your adviser does a better job when they have full transparency, liquidity. Its hard to justify going in another direction. Backing out to the global macro picture and the comments that david tepper made, he basically said if china can come out with big easing in terms of Monetary Pol