3907. Sarnd and poorz clos s p 500 closed down 8. 5, at 1746. No record for the s p today. Stocks seeing red on the heels of disappointing earnings. Bob pisani, a bit of a pullback, was it needed . Weve been overbought today. Were in the heart of earning season, today and tomorrow, biggest days of the earning season. Five trends emerging im seeing in the last couple of days. Very limited visibility from Big Semiconductor names. Thats a problem for the market today. Netflixes, momentums, et cetera, looking toppy. Oil and Energy Stocks with low demand. Rates on the tenyear have been moving down and builders and utilities have gained on lower rates. The dollar weakness is helping multinationals. Well be hearing from them shortly. Take a look at some Big Semiconductor names, those in the tech areas. They were weak on some concerns from juniper, cree, micro, giving guidance. Tech names were weak, disk drives, aerospace had a good day. Boeing had excellent numbers. Guidance was good. Northrop grumman raised full year guidance. Momentum stocks im talking about, debate on whether were get rogue tags. Tesla, yelp, renren, chinese names. Heavy volume, taking money off the table. Take a look at how the stocks are looked in the last few days, momentum names on the weak side. Yelp, tesla, facebook, linkedin, priceline, all to the downside. At t earnings are out. Lets get to julia and get those numbers and see what they say about the period for at t. Over to you. At ts adjusted earnings came in at 66 cents per share. Thats a penny better than expected. Wall street had been looking for 65 cents per share. Thats up from 63 cent per share in the year ago period. Revenue grew pretty much in line with expectations. Came in at 32. 16 billion. Wall street analysts had been expecting 31. 87 billion, so a tiny hair short of expectations. And it is up from 31. 459 billion a year ago. Improvement, slightly better than expected eps. Over to you, maria. Thank you so much. As you can see, the stock pretty stable right there after these numbers. Well look for any movement in at t shares tonight. S p 500 meanwhile snapped a fiveday winning streak. Where this will market go tomorrow . Joining me is donald cox, ron from rbc, nathan, and our own mandy drury. M report tell you anything about nathan, did the caterpillar where we are in the economy and how does that dictate how you allocate capital . It didnt tell me anything that i dont think we already know, which is things are kind of slow. Now were probably not going to see tapering until well into 2014. And so, i think it just the market had a chance to have a nut and honey kind of day, a cereal market. No real big news today. You know, at t is a rather meaningless report to come in just now because theyre one of the worst performers in the dow, so its nice they actually beat by a penny. I think they have a data problem, like the fed does. They just look at the data. Theyre not getting enough data per customer. Where im allocating, i still like europe. I think thats where its going to be. Im paying attention to bonds because Interest Rates have been coming down. Thats kind of the story there. I dont think its getting enough press right now. Lets not forget what happened four months ago to bonds because its going to happen again some time next year. Thats a good point, actually. Rates did move lower again today. Donald, i know the fed is in place. We got tapering off the table for 2013. Maybe tapering off the table until june of 2014. But is there a bigger catalyst thats going to drive these markets. Can we just go up and up and aw away until the tapering begins or Something Else that gets in the way of the idea of buying equities . Well, the important question, maria, is where you buy the equities. The growth thats exceeding expectations is in china, japan and now europe. So, the leadership is basically moving across the atlantic and pacific. And the evidence of that is the powerful outperformance of the base metal stocks, commodity groups in the last 2 1 2 months. This caught people by surprise. But that means that of the big gdp components of the world, the United States has had to carry the burden since the crash. And now that burden is going to be lifted by better strength abroad, as shown by these areas, which are big consumers of base metals. Yeah. The base metals is such an important area to look at. You think that is indicative of whats going on in the global story . Well, if look, a year ago, what we had was a situation where of the biggest economies in the world, japan, was still dragging us down after 22 years. And europe was on the edge of breakdown. And now those two zones have moved into positive territory, japan with a rush and europe still surprising on the upside. So, what weve got there this is really good for the u. S. Because our trade position has been improving anyway. What we needed, frankly, was more growth abroad for the next kick up in the economy here. We are now getting it. Thats going to be the part of the u. S. Economy thats going to perform best. I guess, mandy, what im getting at is this whole dysfunction story. And how that has taken oomph out of things. Does that basically tell an investor, look, i dont know whats going on. I dont have clarity. Im going to sit on the sideline, im not going to stick my neck out even though the fed keeps pumping the pedal. I feel a lot of people are getting so sick of d. C. And fear its a part of life that maybe theyll try to put those noises coming out of washington to the side and just sort of plow ahead, whether it be with Business Plans or whether it be with their investment plans. You know, in terms of strategy, putting d. C. On the sidelines is something, you know, that maybe your guests can answer to. I would also like to speak to something that bob pisani told you a moment ago. Im hearing about the fear creeping into the market as to whats happening with some of these big momentum plays like netfl netflix, how it really rolled over yesterday. It brings back some of these memories of the year 2000. We really need to watch in the following days whether or not this is a sustainable bounceback in these names like netflix or whether or not they continue to the downside. If they continue to the downside, im hearing that that has the ability potentially to negatively affect the broader market. Maybe thats something your guests here on the panel can talk to. But i think this is an important point that bob pisani raised with you. Well, lets talk quantitative strategy, ron. I mean, you know, i guess one difference today versus the 90s is that you actually do have the e in place. You didnt have real earnings in a number of these dotcoms. No surprise many of them blew up. Is it different today . How would you say the quantitative strategy should look for your investor out there knowing what we should know in terms of the fundamental backdrop . Yeah. I think its very different today than in 2000. I mean, technology, for instance, was a third of the market. Its much less than that this time around. And its profits are at 20 . In 2000 it was only around 10 . So, theyre a lot more profitable. Doing a lot more buy backs. Its up 100 from the last quarter alone. Even though theyre underperforming, other sectors year to date, the level of buybacks is helping to put a floor under some of these stocks. Youre not expecting a big pull back like Mark Spitznagel who says hes expecting a 40 selloff . Not at all. The last time we had major pullbacks there were structural changes in a particular sector. Technology in 2000, financials, basically in 07, 08. We dont see that in our models. For the most part, earning are slowing, but there arent those structural breakdowns by a big, major sector that would cause the market to see the kind of, you know, decline that your earlier guest was talking about. Maria, when we see earnings beats over here, have you to remember, weve seen the largest downward revision in estimated earnings since in over ten years. So, that really has to say to you, were doing great as long as we keep lowering the limbo bar down to the floor and then jump over. Its an important point. The expectations are, in fact, coming down. Thank you, everybody. Appreciate it. Well see you soon. Up next, billionaire impra practice newer Dallas Mavericks owner mark cuban in the house. Hes eager to talk about the big win against s. E. C. On civil Insider Trading chargers. No wallflower himself, well see what he thinks about investor activism, carl icahn. And then another flaw in obama care exchanges. Well have details and discuss if obama care can recover from its continuing pr disasters. Our special power pitch tournament. We crown a champ. Marcus is picking the winner in todays startup race. Youre watching the closing bell on cnbc. Here at fidelity, we give you the most Free Research reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Stocks losing ground on caterpillar earnings. Worries about financial conditions in china and europe. Lets check in with dominic chu and see whats movering and shaking. We again with akamai, moving higher in the after hours after reporting better than expected Quarterly Earnings and sales. Turning now to tesla, falling as bank of America Merrill lynch said the stock was overvalued. Underperform rating, equivalent of a sell, and a 45 price target on those shares. Amazon losing ground. Rbc capital and Piper Jaffray said they expect the can company to miss earnings estimate when it reports after the closing bell tomorrow. N Norfolk Southern posted betttha expected Third Quarter earnings on rising shipments. Apple moving higher. Jeffreys boosted estimates after raising iphone forecasts and estimates. It maintained a buy rating on the stock and a 600 price target. Back over to you. Thank you so much. Dallas mavericks owner mark cuban getting a big win last night. Not on the Basketball Court but in the court of law. The billionaire investor was acquitted of Insider Trading after securities and Exchange Commission accused cuban of using a private tip to avoid big losses on his 2004 sale of internet stocks. Mark cuban joins me now. Good to see you, mark. Good to be seen. Thanks for joining us. You said this case was personal, i was reading what you said. Why . Why was it personal . It took seven years out of my life. When the s. E. C. Called me, i thought, okay, im going to support them and help them like i had in 2004. And it just turned into a disaster. And you know, when the governments chasing you, its not something you just ignore and you think about it. It consumes you all the time. What made it personal is the way they handled it in court. When it was over, it was like, you know what, literally, they were basically apologizing to me. Multiple lawyers came up and said, mark, this is just business. Its not personal. Business . Yeah. Another one said, im just here to litigate. This is your reputation. Its your life. Then had that much control. Thats one of the things that got me upset. You could have settled. Oh, yeah. I could have. Why didnt you settle . I did nothing wrong. I did nothing wrong. You wouldnt even believe. Literally all the evidence they had they used against me, they got from me. In 2004, two days after i sold my stock, the s. E. C. Contacted me because they were investigating momma. Com this company for being crooked, run being a stock manipulator. All the emails in court i provided to them. I did an interview with them just to help them, no lawyer, no nothing. They took copious notes, two of them, which would have vindicated me right there and then, but they lost them. For eight years. They lost them. They lost them, right, for eight years. They finally showed up again in july of 2012 after all the indictments, the court hearings, the appeals, the dismissals, summary judgments, all of a sudden they showed up and said exactly what i said they said. And i love the idea they come up to you afterwards and say, listen, mark, im really sorry. This is just business. Were you unfairly targeted, do you think, by government because youre a name, because youre a billionaire . They just figured, this is a good message to send to the rest of the world . I dont want to generalize because there was and you dont want to personalize. No, i do want to personalize, because thats missing. When you say its the s. E. C. And the government, then everybody hides behind that. Good for you. We all know theyre dysfunctional in one way or the other. But when Linda Thompson, head of s. E. C. Enforcement in 2004, shes passing around getting emails and passing around emails with me holding the promotional picture of me Holding Money from a tv show i did, and shes saying, well, this confirms exactly what i was thinking. It was you were marketing a show. Right. I was marketing a show. She used that as confirmation they should come after me. And so i think in 2008 when they filed charges, yeah, i was this was a month before madoff. I would have been the big name. But they had nothing then. So then as time went on, they just went on and found new jobs and my lawyers said, take a look at the case, it was public information, theres nothing there, theyre liars, its all this stuff. And they just ignored it. You know what, this is really important. This speaks to the overall structure of the s. E. C. And the way things are set up. Because you have the time and money to take this to the end. You know you did nothing wrong. Youre going to fight, youre going to defend your name. If it cost you your fortune. Most people cant do that. No. My blessed. Im the first to admit it. They have significant problems. One problem is they think like lawyers. Right . Their job is to make sure the markets are fair. The other job is to build Investor Confidence in the market. They failed missably at both because theyre not trying to solve either problem. They dont even know what business wall street is in. Were supposed to be in the business of raising capital to help companies grow. The market for ipos has fallen off the cliff. Were trying to make it fair but the only way to make it fair is by using lawyer think and filing case after case after case and they show you how many cases they brought and won. You correlate that to market confidence, their cases go up, market confidence goes down. Thats not the right metric success. Right. They should say here are Different Things we need to do to improve market confidence and connect with individuals. Ill give you a perfect example. Right now theyre trying to determine the best way to deal with the jobs act. The jobs act is going to be about crowd funding, being able for Smaller Companies to raise up to 1 million a year and individuals to be able to contribute 5,000 individually or up to 100,000 per company. When you go to the s. E. C. Website to look for a place to ask a question individual about anything pertaining to vinnesting, you cant find it. Theres more information on the irs. Gov site. Theres no place to get information on the s. E. C. Site. Whos protecting the investors they say they protect . Someones looking to get a better job. Necessity say, you violated the law. You invested 101,000, and thats a violation. Were coming after you. You didnt even know what you did wrong until they come after you. So because of that, people dont think the s. E. C. Plays fair. They dont take seriously the actions they take. They take it as a business expense because these guys dont know what theyre doing. Look, to be you cant they could be constructive. They could do it right. Wheres the accountability . You spent the last eight years defending your name, spending money defending your name. There could be out there perceptions of you that have changed. Wheres the accountability . It has to be at the individual level. Thats why when after my trial i went on the courthouse steps and started talking. Ip wasnt just saying the s. E. C. , because there are good employees at the s. E. C. Good people at the s. E. C. With their hearts and minds in the right place but individual people involved have to have a level of accountability to the public. The lawyer who was interrogating me on the witness stand, during her closing arguments literally mislabeled documents to mislead the jury. Mislabeled them. An acknowledgment letter she labeled as investor agreement letter. She misled the jury . She lied. And so i didnt want to just say the s. E. C. In general. I wanted her to know that, and hopefully other people will follow the lead, you name these people individually so they have to be accountable outside the courtroom. Will she be accountable for lying . She is now. Youre out there. Thats why i have no problem naming Linda Thompson for not doing her job. Janet, i give her credit for doing her job, but if that was acceptable to her superiors, thats wrong. Thats why i feel its necessary to call out jan falina. Chris schultz went on a die tribe talking to an Expert Witness. He had no clue what he was talking about. He was talking about blue sheets the Expert Witness was talking about blue sheets, he didnt know what blue sheets were. It was mind boggling. Do you think the people working at the s. E. C. Are not equipped to handle the job although hand, they dont understand the complexities of the market . I think it goes both ways. There are so many lawyers our Expert Witness was talking about the lawyerization of the s. E. C. Dr. Siri, our expert. He was head of trading the markets for three years. He knew them. Thats what he talked about. That its a lawyerdriven organization. They think like prosecutors. They act like lawyers. And that has to change. As long as its lawyerdriven, theyll never have confidence in the markets. Youll never have Consumer Confidence increase in the market. Has this has to change. Has this changed your investing .