Transcripts For CNBC Power Lunch 20131030 : vimarsana.com

Then, now i can move over here, there is sue, the it fed, decision time, one hour away and where does america stand on job creation . Its critical, obviously, to the fed and to the economy. Adp number out this morning, not so great. Lets check in with you at the nyse. Youre absolutely right, and we will get to that but we want to start, ty, with the fireworks on capitol hill as Kathleen Sebelius goes before the house energy and commerce committee. Bertha coombs is on the case on capitol hill. Over to you, bertha. Sue, the hearing lasting more than three and a half hours and members of congress usually a little more def ren shall to a cab meth member but they did hit secretary Kathleen Sebelius hard on a number of issues. She started out by apologizing and taking responsibility for the website nurse and its improving every day. Clearly there have not been enough but she said none of the contractors who said they raised red flags said the problems warranted delaying the october 1st rollout. When pressed by congresswoman Marcia Blackburn about some of those critical late decisions that may have contributed to the failures and who made them in her staff sebelius said ultimately the buck stopped with her. Im not pointing fingers at verizon. Im trying to explain the way the site operates. We own the site. The site has had serious problems. Who is in charge, madam secretary . The person now in charge as an integrate are is qssi one of our who was in charge as it was being built. Cmst was in charge at that time who is the individual Michele Snyder. Michele snyder is the one responsible for this debacle . Well, excuse me, congresswoman, Michele Snyder is not responsible for the debacle. Hold me accountable for the debacle. Im responsible. She also defended the issue a number of Congress People holding up people letters from their constituents saying their plans have been canceled because of the aca, she defended the president on that fact, that if you like your plan you can keep it, saying that it was the insurers decision not to keep those grandfathered plans and would not give numbers on enrollment. One of the things that Committee Members have asked her to bring to this hearing when pressed by lee terry of nebraska, she said its because of the system problems she doesnt trust the data. That data out there exists. Sir, i would tell you right now, it is not reliable data, according to the Insurance Companies who are eager to have customers, they are not getting reliable data all the way through the system. Sebelius says they are working on improving that data on the back end of the systems. Those reports that go to the insurers. She also could not say when the website was going to be coming back today. Guys, even as she was on the stand today, testifying, it has been down today for technical issues. Back to you. All right. Thank you very much. Bertha coombs reporting for us. Now to scott cohen, open enrollment is approaching for many corporate plans, including our own here at comcast, Nbc Universal. How will obama care change things this year and downstream for people who are accustomed to their corporate plans . Its changing things, but things were already changing. Thats the bottom line here. This is our Nbc Universal open enrollment guide which came out and the first thing they tell us, costs are rising. Turns out for us anyway they really are rising and some cases up as much as 25 , depending on the coverage, higher deductibles as well. They tell us this is because more of us are using health care and federally mandated Health Care Changes will require comcast Nbc Universal to pay new fees and implement plan design changes. Were seeing a lot of that in materials going out in recent days across corporate america. Costs are up and the Affordable Care act listed as one of the reasons. Insurance Companies Like aetna, one of the providers here, say they are passing their costs on to employers. Aetna alone will pass through to its customers over a billion colors worth of taxes and fees associated with the Affordable Care act that need to go into pricing, so all those things create a very unstable market, cause us to rethink the fundamentals. Like Everything Else here, you look a little closer and its not so simple. Divide aetnas billion in costs by its 22 million members, comes out to 45 apiece. So we put this issue to our cnbc global cfo council. 25 chief Financial Officers representing some of the nations biggest and most important companies. About half of them responded to our questions. 64 see Health Care Costs per employee rising this year, but a plurality says less than 10 of the increase has anything to do with the Affordable Care act. Indeed, rising premiums at work are nothing new. The Kaiser Family foundation says over the last ten years, your contribution for health care at work has gone up on average 89 , all of that long before obama care. It has been happening every year as you and i and anyone who has a corporate plan knows. Youre paying higher deductible, more out of pocket, higher monthly bills. We dont know what its going to be across corporate america. A lot of the experts are saying maybe 5 to 7 this year. If thats the case its relatively in line with last year and actually lower than the average over the last decade. Scott, thank you very much. Scott cohen reporting. We turn to cnbc. Coms Health Care Reporter who has been joining us a couple times over the past week, dan mangan has been following the latest. You have a story today where you talk about an executive, ehealth i think is the name of the company. The ceo of the company. He says he can fix the website. Why does he believe this . He says he can take over the shopping enrollment of the website with the fed gets their act together. He wants to do that. It seems like a viable plan from his end. He can handle the capacity. All the other web based proekers could easily handle the capacity. Whats his nick until this . Want to do it pro bone o . Nos cost to the taxpayer at all. The ceo will be on the closing bell. Gary lauer, no relation to matt we assume, on at 3 00 p. M. On closing bell. Im sure maria and bill will question him about his offer and why he can could this. At length. One of the things that came up this morning something you talked about and questioned the white houses david simas last week about, how many people have enrolled on the federal websites and how many people have actually purchased Health Care Coverage . Miss sebelius earlier today said we dont know because we dont have reliable data. Thats right. What else . Thats right. Thats the key takeaway here. This was a dramatic, every report i read on twitter said this was a huge moment for her to acknowledge this. For three weeks or so hhs had denied this was a problem or a serious problem. Only last with the glitch guru brought in said this is at the top of our list. She said she cant give you enrollment data because the numbers are so bad. Some of the states have actually come forward with data, havent they . They have. Kentucky has. Kentucky, Washington State california, connecticut. Theyve been issuing data. A lot of that a lot of these enrollments are medicaid enrollments which is concerning because they want more people on the regular standard obama care plans. But at least theyve been forthcoming about this. A key question which youre implicitly raising there is how good is their data . Yeah. But when we say the obama care plans, were talking about the commercial plans sold on the government organized exchanges. Not medicaid coverage. You can be qualified for medicaid coverage, expanded coverage in the obama care exchanges, but the key number here what shes being asked about is the qualified health plans, the private insurance plans, that are being sold. Dan, thank you very much. Thank you. Well be back with you soon im sure. Thanks, ty. As the white house scrambles to try to fix all the health care problems, Young Americans are coming to terms with how obama care will impact them and some are getting kind of worried. One of them with us right now. Katie is a free lance Graphic Designer in new york. Her annual Health Care Expenses would go up more than three times under obama care. Nice to meet you, sue. You did not have Health Care Coverage before. No. Your annual costs came out to about 650 a year. Correct. Using walkin clinics and things like that. Correct. When you priced out the new Affordable Health care plans affordable to you, you were paying about 650, what were you going to be paying under obama care . I was going to be paying between 2400 to 2800. I dont know what copays are going to be under the health care. Right now i tune up shop for 109 per visit. If i go to the doctor once in a year im only paying 109. At most if im having a sick year, its 650. What are you going to do . Youre going to be mandated to buy Health Insurance . I guess im going to have to cut back expenses. My budget is already maxed out as tight as it can be right now and i dont spend money on anything else. I dont really have much disposable income as it is. So i guess i dont know, i have to cut my gym membership, my healthy eating, the things that keep me out of the hospital to begin with. Yeah. Were you surprised . I mean what were your expectations when you heard about the plan and when you decided you needed to go look at the plans that were available . My expectation was fear to begin with because i have worked out a high risk high yooelds Health Care System that works for me. Being mandated to pay, at least i was hoping for something, better coverage than what i am getting on my own right now. Looks like is, i will be paying for a service that i may never reap the benefits of in a year. Because youre young and healthy. Im young and healthy. And if i actually do, i may be paying copays on top of that. For 2400 i should have all the free nice Beautiful Health care i possibly could because if i was paying 2400, i would have a Beautiful Health care program for myself. Good luck with it. Keep us posted. Thank you very much. Katie irwin. Looks like americans are kind of divided about whether the problems with the federal Health Care Website are a shortterm issue that can be solved or whether they are a longterm issue. According to an nbc news wall street journal poll 37 say the website problems are a short term and can be fixed. 31 believe they are longer term issues that cannot be corrected, another 30 say its too soon to say. Much more on this latest poll on cnbc. Com and at 6 30 eastern time, and tonight on the kudlow report at 7 00 p. M. Eastern time. Dominic chu joins us with a market flash. Check out whats happened to Coleman Cable spiking midday after a reuters report that the wire manufacturer was considering putting it itself up for sale. This illinoisbased company has roughly 90 million in yearly earnings before interest, taxes, basically profits if you want to put it that way. Its valued around 8. 5 times earnings on the potential sale or more than 750 million. So those Coleman Cable shares spiking here in the market session so far. Thank you very much. The dow and s p 500 record highs. Nasdaq fresh 13year high. Where can you find opportunity right now at these prices . Weve got almost a trillion dollars worth of Investment Advice for you. Thats what this guy supervises. Boeing, nike, American Express the three big winners in the dow this year. How to play those favorite stocks, that and more when we return on power lunch. More. More than a new interior lighting system. It is more than a hot stone massage. And more than your favorite scent infused into the cabin. It is a completely new era of innovation. And the highest expression of mercedesbenz. Introducing the 2014 sclass. The best or nothing. Intrtdd 18003452550lass. Life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome back to power lunch. How about a quarter of an hour, we auctioned off the last of the treasure auctions, 29 billion, seven years, most of the information regarding the auction, was rather average. We gave the auction a cplus. The yield 1. 87 which happened to be the offer side of the one issue market, 2. 66 bid to cover. The last four auctions that looks good. I use ten auction average, deteriorating a bit. Only a little bit above the ten auction average of 2. 60 suffice it to say probably the lowest yield close back to early june in the seven year among other treasury issues. Not bad, back to you. Rick, thank you very much. We are down just a little bit today for equities, but the dow and s p are still hovering near record highs as investors wait for the fed decision on Interest Rates in about an hour from now. Is there room for the market to move higher . Will uncertainty about the fed or easy money and fallout from washingtons policies hurt this rally . We welcome back richard madigan, jpmorgan private back, 935 billion under management with sue at the New York Stock Exchange ben willis with albert freed and company. Sue, ill start by asking richard a question, do you think the market, given the sogginess of the economy, given the fact that corporate profits are okay, but not great, is the market in the u. S. Overpriced, fully priced, what . The cute answer would be fairly valued. The debate ends up being where do we go from here . I think we go higher. You look at a market environment where earnings are fine, were stable, we think well hit 109, 110 bucks the is year. Top line growth hasnt. We saw a little Revenue Growth which is good and the pushback on the macro its not surprised its bad. It will be bad through the end of the year. Higher but not that much higher, im sensing you saying . Weve been up 24 this year. We were up, what, 16, 17 last year. Its been multiple driven so 80 of returns this year have been a function of rerating of multiples. The question is, at a 15 times 14. 5 times forward pe right now, do you think were worth 15. 5 or 16 next year . And then what are you playing on in earnings . People talking about an 1850 to 1950 s p target are basically taking bottom up analysts outlook next year, 120 bucks, and slapping 16 plus on the multiple. Richard, you were talking europe before europe was cool. Yes. I hear more people talking europe these days. For 2014, do you think Strategic Investors should look at europe very closely and do you think european stocks as a group plight outperform u. S. . The outperformance im unsure of and i think the debate for people looking at europe will be trying to see whether europe repeats what the u. S. Did this year next year. Europe isnt cheap. Theres a lot of policy debate and issues going on right now. Weve been investing there because we think theres a tremendous degree of operating leverage embedded in corporations and we think Earnings Growth actually grows next year. Im not bullish on the amount of growth. We are very constructive on the outlook that will go from a negative 1 growth to a positive 1 economic growth. Negative Earnings Growth to positive Earnings Growth. That could be 6 to 10 . That could be nice for european stocks. Sue, down to you. Ben, you were nodding your head in agreement with a lot of what richard said and i saw in my notes this morning that basically you feel as though you need to hedge some of those long positions that you have in the market right now . I am very nervous about the trajectory of this market. Weve continued to close on new highs day after day and that is a little disconcerting. Some of the internals were looking at albert freed make us a little cautious in the fact that the skew on the put call ratios, seems to be exuberance in the option market and the margin buying. The margin buying, today the russell 2,000 which led this market higher is down 1 . Pretty dramatically drop in one day for the russell 2,000. Thats telling us something. Weve had a great bull run. Were up 24 in a years time. Weve done it without being hooked by the horns of the bull. Im a little bit more careful right now. Im concerned. Im not saying that the bull market is over. Im not saying equities are not the right place to be, but im not starting any new positions until i see more of a correction. Richard, whats your best Investment Advice right now on a global basis for an investor who has a longer term time horizon. Bigger debate over the next year, not the next month, sue. Stocks still win. The upside debate on how much we deserve next year is a function of the multiple dynamic. For people who have really focused on u. S. Investments looking outside the u. S. For the first time in a couple years. Richard, let me sort of go in a direction that may be sort of unanticipated. Theres been a lot of talk about spying. Yes. Globally. Yep. Ive heard it happens. Youve heard it happens. Yes. Is there an argument or a possibility that some contracts that might have gone to Kathleen Sebelius<\/a> goes before the house energy and commerce committee. Bertha coombs is on the case on capitol hill. Over to you, bertha. Sue, the hearing lasting more than three and a half hours and members of congress usually a little more def ren shall to a cab meth member but they did hit secretary Kathleen Sebelius<\/a> hard on a number of issues. She started out by apologizing and taking responsibility for the website nurse and its improving every day. Clearly there have not been enough but she said none of the contractors who said they raised red flags said the problems warranted delaying the october 1st rollout. When pressed by congresswoman Marcia Blackburn<\/a> about some of those critical late decisions that may have contributed to the failures and who made them in her staff sebelius said ultimately the buck stopped with her. Im not pointing fingers at verizon. Im trying to explain the way the site operates. We own the site. The site has had serious problems. Who is in charge, madam secretary . The person now in charge as an integrate are is qssi one of our who was in charge as it was being built. Cmst was in charge at that time who is the individual Michele Snyder<\/a>. Michele snyder is the one responsible for this debacle . Well, excuse me, congresswoman, Michele Snyder<\/a> is not responsible for the debacle. Hold me accountable for the debacle. Im responsible. She also defended the issue a number of Congress People<\/a> holding up people letters from their constituents saying their plans have been canceled because of the aca, she defended the president on that fact, that if you like your plan you can keep it, saying that it was the insurers decision not to keep those grandfathered plans and would not give numbers on enrollment. One of the things that Committee Members<\/a> have asked her to bring to this hearing when pressed by lee terry of nebraska, she said its because of the system problems she doesnt trust the data. That data out there exists. Sir, i would tell you right now, it is not reliable data, according to the Insurance Companies<\/a> who are eager to have customers, they are not getting reliable data all the way through the system. Sebelius says they are working on improving that data on the back end of the systems. Those reports that go to the insurers. She also could not say when the website was going to be coming back today. Guys, even as she was on the stand today, testifying, it has been down today for technical issues. Back to you. All right. Thank you very much. Bertha coombs reporting for us. Now to scott cohen, open enrollment is approaching for many corporate plans, including our own here at comcast, Nbc Universal<\/a>. How will obama care change things this year and downstream for people who are accustomed to their corporate plans . Its changing things, but things were already changing. Thats the bottom line here. This is our Nbc Universal<\/a> open enrollment guide which came out and the first thing they tell us, costs are rising. Turns out for us anyway they really are rising and some cases up as much as 25 , depending on the coverage, higher deductibles as well. They tell us this is because more of us are using health care and federally mandated Health Care Changes<\/a> will require comcast Nbc Universal<\/a> to pay new fees and implement plan design changes. Were seeing a lot of that in materials going out in recent days across corporate america. Costs are up and the Affordable Care<\/a> act listed as one of the reasons. Insurance Companies Like<\/a> aetna, one of the providers here, say they are passing their costs on to employers. Aetna alone will pass through to its customers over a billion colors worth of taxes and fees associated with the Affordable Care<\/a> act that need to go into pricing, so all those things create a very unstable market, cause us to rethink the fundamentals. Like Everything Else<\/a> here, you look a little closer and its not so simple. Divide aetnas billion in costs by its 22 million members, comes out to 45 apiece. So we put this issue to our cnbc global cfo council. 25 chief Financial Officers<\/a> representing some of the nations biggest and most important companies. About half of them responded to our questions. 64 see Health Care Costs<\/a> per employee rising this year, but a plurality says less than 10 of the increase has anything to do with the Affordable Care<\/a> act. Indeed, rising premiums at work are nothing new. The Kaiser Family<\/a> foundation says over the last ten years, your contribution for health care at work has gone up on average 89 , all of that long before obama care. It has been happening every year as you and i and anyone who has a corporate plan knows. Youre paying higher deductible, more out of pocket, higher monthly bills. We dont know what its going to be across corporate america. A lot of the experts are saying maybe 5 to 7 this year. If thats the case its relatively in line with last year and actually lower than the average over the last decade. Scott, thank you very much. Scott cohen reporting. We turn to cnbc. Coms Health Care Reporter<\/a> who has been joining us a couple times over the past week, dan mangan has been following the latest. You have a story today where you talk about an executive, ehealth i think is the name of the company. The ceo of the company. He says he can fix the website. Why does he believe this . He says he can take over the shopping enrollment of the website with the fed gets their act together. He wants to do that. It seems like a viable plan from his end. He can handle the capacity. All the other web based proekers could easily handle the capacity. Whats his nick until this . Want to do it pro bone o . Nos cost to the taxpayer at all. The ceo will be on the closing bell. Gary lauer, no relation to matt we assume, on at 3 00 p. M. On closing bell. Im sure maria and bill will question him about his offer and why he can could this. At length. One of the things that came up this morning something you talked about and questioned the white houses david simas last week about, how many people have enrolled on the federal websites and how many people have actually purchased Health Care Coverage<\/a> . Miss sebelius earlier today said we dont know because we dont have reliable data. Thats right. What else . Thats right. Thats the key takeaway here. This was a dramatic, every report i read on twitter said this was a huge moment for her to acknowledge this. For three weeks or so hhs had denied this was a problem or a serious problem. Only last with the glitch guru brought in said this is at the top of our list. She said she cant give you enrollment data because the numbers are so bad. Some of the states have actually come forward with data, havent they . They have. Kentucky has. Kentucky, Washington State<\/a> california, connecticut. Theyve been issuing data. A lot of that a lot of these enrollments are medicaid enrollments which is concerning because they want more people on the regular standard obama care plans. But at least theyve been forthcoming about this. A key question which youre implicitly raising there is how good is their data . Yeah. But when we say the obama care plans, were talking about the commercial plans sold on the government organized exchanges. Not medicaid coverage. You can be qualified for medicaid coverage, expanded coverage in the obama care exchanges, but the key number here what shes being asked about is the qualified health plans, the private insurance plans, that are being sold. Dan, thank you very much. Thank you. Well be back with you soon im sure. Thanks, ty. As the white house scrambles to try to fix all the health care problems, Young Americans<\/a> are coming to terms with how obama care will impact them and some are getting kind of worried. One of them with us right now. Katie is a free lance Graphic Designer<\/a> in new york. Her annual Health Care Expenses<\/a> would go up more than three times under obama care. Nice to meet you, sue. You did not have Health Care Coverage<\/a> before. No. Your annual costs came out to about 650 a year. Correct. Using walkin clinics and things like that. Correct. When you priced out the new Affordable Health<\/a> care plans affordable to you, you were paying about 650, what were you going to be paying under obama care . I was going to be paying between 2400 to 2800. I dont know what copays are going to be under the health care. Right now i tune up shop for 109 per visit. If i go to the doctor once in a year im only paying 109. At most if im having a sick year, its 650. What are you going to do . Youre going to be mandated to buy Health Insurance<\/a> . I guess im going to have to cut back expenses. My budget is already maxed out as tight as it can be right now and i dont spend money on anything else. I dont really have much disposable income as it is. So i guess i dont know, i have to cut my gym membership, my healthy eating, the things that keep me out of the hospital to begin with. Yeah. Were you surprised . I mean what were your expectations when you heard about the plan and when you decided you needed to go look at the plans that were available . My expectation was fear to begin with because i have worked out a high risk high yooelds Health Care System<\/a> that works for me. Being mandated to pay, at least i was hoping for something, better coverage than what i am getting on my own right now. Looks like is, i will be paying for a service that i may never reap the benefits of in a year. Because youre young and healthy. Im young and healthy. And if i actually do, i may be paying copays on top of that. For 2400 i should have all the free nice Beautiful Health<\/a> care i possibly could because if i was paying 2400, i would have a Beautiful Health<\/a> care program for myself. Good luck with it. Keep us posted. Thank you very much. Katie irwin. Looks like americans are kind of divided about whether the problems with the federal Health Care Website<\/a> are a shortterm issue that can be solved or whether they are a longterm issue. According to an nbc news wall street journal poll 37 say the website problems are a short term and can be fixed. 31 believe they are longer term issues that cannot be corrected, another 30 say its too soon to say. Much more on this latest poll on cnbc. Com and at 6 30 eastern time, and tonight on the kudlow report at 7 00 p. M. Eastern time. Dominic chu joins us with a market flash. Check out whats happened to Coleman Cable<\/a> spiking midday after a reuters report that the wire manufacturer was considering putting it itself up for sale. This illinoisbased company has roughly 90 million in yearly earnings before interest, taxes, basically profits if you want to put it that way. Its valued around 8. 5 times earnings on the potential sale or more than 750 million. So those Coleman Cable<\/a> shares spiking here in the market session so far. Thank you very much. The dow and s p 500 record highs. Nasdaq fresh 13year high. Where can you find opportunity right now at these prices . Weve got almost a trillion dollars worth of Investment Advice<\/a> for you. Thats what this guy supervises. Boeing, nike, American Express<\/a> the three big winners in the dow this year. How to play those favorite stocks, that and more when we return on power lunch. More. More than a new interior lighting system. It is more than a hot stone massage. And more than your favorite scent infused into the cabin. It is a completely new era of innovation. And the highest expression of mercedesbenz. Introducing the 2014 sclass. The best or nothing. Intrtdd 18003452550lass. Life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome back to power lunch. How about a quarter of an hour, we auctioned off the last of the treasure auctions, 29 billion, seven years, most of the information regarding the auction, was rather average. We gave the auction a cplus. The yield 1. 87 which happened to be the offer side of the one issue market, 2. 66 bid to cover. The last four auctions that looks good. I use ten auction average, deteriorating a bit. Only a little bit above the ten auction average of 2. 60 suffice it to say probably the lowest yield close back to early june in the seven year among other treasury issues. Not bad, back to you. Rick, thank you very much. We are down just a little bit today for equities, but the dow and s p are still hovering near record highs as investors wait for the fed decision on Interest Rates<\/a> in about an hour from now. Is there room for the market to move higher . Will uncertainty about the fed or easy money and fallout from washingtons policies hurt this rally . We welcome back richard madigan, jpmorgan private back, 935 billion under management with sue at the New York Stock Exchange<\/a> ben willis with albert freed and company. Sue, ill start by asking richard a question, do you think the market, given the sogginess of the economy, given the fact that corporate profits are okay, but not great, is the market in the u. S. Overpriced, fully priced, what . The cute answer would be fairly valued. The debate ends up being where do we go from here . I think we go higher. You look at a market environment where earnings are fine, were stable, we think well hit 109, 110 bucks the is year. Top line growth hasnt. We saw a little Revenue Growth<\/a> which is good and the pushback on the macro its not surprised its bad. It will be bad through the end of the year. Higher but not that much higher, im sensing you saying . Weve been up 24 this year. We were up, what, 16, 17 last year. Its been multiple driven so 80 of returns this year have been a function of rerating of multiples. The question is, at a 15 times 14. 5 times forward pe right now, do you think were worth 15. 5 or 16 next year . And then what are you playing on in earnings . People talking about an 1850 to 1950 s p target are basically taking bottom up analysts outlook next year, 120 bucks, and slapping 16 plus on the multiple. Richard, you were talking europe before europe was cool. Yes. I hear more people talking europe these days. For 2014, do you think Strategic Investors<\/a> should look at europe very closely and do you think european stocks as a group plight outperform u. S. . The outperformance im unsure of and i think the debate for people looking at europe will be trying to see whether europe repeats what the u. S. Did this year next year. Europe isnt cheap. Theres a lot of policy debate and issues going on right now. Weve been investing there because we think theres a tremendous degree of operating leverage embedded in corporations and we think Earnings Growth<\/a> actually grows next year. Im not bullish on the amount of growth. We are very constructive on the outlook that will go from a negative 1 growth to a positive 1 economic growth. Negative Earnings Growth<\/a> to positive Earnings Growth<\/a>. That could be 6 to 10 . That could be nice for european stocks. Sue, down to you. Ben, you were nodding your head in agreement with a lot of what richard said and i saw in my notes this morning that basically you feel as though you need to hedge some of those long positions that you have in the market right now . I am very nervous about the trajectory of this market. Weve continued to close on new highs day after day and that is a little disconcerting. Some of the internals were looking at albert freed make us a little cautious in the fact that the skew on the put call ratios, seems to be exuberance in the option market and the margin buying. The margin buying, today the russell 2,000 which led this market higher is down 1 . Pretty dramatically drop in one day for the russell 2,000. Thats telling us something. Weve had a great bull run. Were up 24 in a years time. Weve done it without being hooked by the horns of the bull. Im a little bit more careful right now. Im concerned. Im not saying that the bull market is over. Im not saying equities are not the right place to be, but im not starting any new positions until i see more of a correction. Richard, whats your best Investment Advice<\/a> right now on a global basis for an investor who has a longer term time horizon. Bigger debate over the next year, not the next month, sue. Stocks still win. The upside debate on how much we deserve next year is a function of the multiple dynamic. For people who have really focused on u. S. Investments looking outside the u. S. For the first time in a couple years. Richard, let me sort of go in a direction that may be sort of unanticipated. Theres been a lot of talk about spying. Yes. Globally. Yep. Ive heard it happens. Youve heard it happens. Yes. Is there an argument or a possibility that some contracts that might have gone to American Companies<\/a>, to the big multinationals, to ge, to ibm, maybe to boeing, might go elsewhere because buyers are suspicious that those American Companies<\/a> might be sharing information with whom ever . Cruel but fair and ill reverse it a little bit on you. The big debate right now is the surprise from some of our allies in terms of the amount of espionage that goes on at a political basis. Ive been more surprised that we havent heard out of say germany or france their concern on industrial espionage, out of china. So there could always be an influence in terms of the contracts around it, but i think people are cherrypicking how they want to make the debate about what is or is not good or bad espionage. I think we win the contracts in what we provide. The u. S. Industry leads. You still invest for the right reasons. Even if youre buying a contract if ge has the best on sale you invest with ge. Richard, thank you very much. Thank you. Sue . All right. Ben, thank you too. Thank you. Pleasure. All right. You guys are so darn smart. Power rundown time. The dow continues to hit new highs. Were taking a look at top three stocks in the dow. They are boeing, nike and American Express<\/a>. All up significantly this year. Question is, at these levels do you buy, sell or hold these winners . Cnbc contributors jeff kilburg and jim iuorio are at the floor or on the floor at the cme in chicago. Welcome. Lets start out, jim, with you and what do you do with boeing . Well, if im not in boeing, if i see it settle above 131. 45 which technically it rallied hard last week, its consolidated, it shows additional strength to me technically looks like its going higher. As far as the fundamental analysis goes, i use that to back up the technicals, the market likes a 400 billion backlog of orders. To me boeing looks okay. I dont know, sue, the only thing thats scarier buying up here, is maybe jimmys little bopeep costume hes going to wear for halloween tomorrow. I like buying boeing. I want to buy it lower. They still have glitches in their dreamliner scenario, but potential 87 billion order. 100 day moving average, im a big buyer there. Move on to nike, jeff, you go first this time. Nike, its a great addition to your portfolio if its not already in. Phenomenal, nearly 50 year to date. I like the focus over the competitors, under armor, lululemon. Theyre talking about 36 billion in sales by the year 2017. Thats a 40 spike from 2013. So i want to buy it again, lower. Sue, heres where i give jeff the Kathleen Sebelius<\/a> type beat down and heres what it is, is that nike, no, its rallied almost 70 in this last run up. Essentially at the end of the day its a Fashion Company<\/a> thats priced in a heck of lot of good. I said buy it lower. You said buy it is what i heard. Anyway, i think that nike is probably priced in a lot of good news. Its tied with global gdp. If you think theres problems out of perhaps europe or asia its not time to be in nike. Its priced in a lot of good news. A smack down in chicago. Finish up with American Express<\/a>. Jim, you first. You know, i like American Express<\/a>. American expression Financial Companies<\/a> do relatively well in low rate environments and thats what were going to have going forward. They say the taper, october, is it march, april, doesnt matter. The taper is off in the distance meaning rates are staying low. Also in Electronic Payments<\/a> are becoming bigger and American Express<\/a> seems to have a significant part of that. I like American Express<\/a>. I have to agree. It kills me, i have to agree here. American express they lead in Global Travel<\/a> services. They issue their own cards. Theyve had a fantastic run here. But i want to be a buyer lower. Actual way to get in is sell puts as an option strategy, puts to the strategy. I like being a buyer. On that note, gentlemen, go have a cocktail and make you. We always do. Yeah. I figure you did. All right. Dom, take it away. Sue, shares of small cap Pharmaceutical Company<\/a> merimack are plummets after the developer said a potential treatment for an advantaged form of Ovarian Cancer<\/a> missed a midstage goal compared to patients who didnt receive the drug. The stock trading at four times its daily average volume. On the move down. Bill gates, americas richest man. Do you know who the richest person in your state is . Plus coming up, our halloween edition of power pitch. Is this startup a trickortreat . We have a company trying to take a bite out of the cappedy competition by unjunking junk food. Does it have what it takes to be a Sweet Success<\/a> . Stay tuned to find out. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . Well, youre the chief life officer. You just need the right professional to help you take charge. To help you take charge. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit<\/a> card. Whered you get that sweater vest . Your ford dealer. Welcome back to power lunch. Check out tesla at session lows. This de might news that despite news that the carmaker will increase the lithium ion battery sales it receives from japans panasonic. It underscores confidence in electric cars. Time for power pinch where we give them 60 seconds to make their pitch and our panelists decide if the company has what it takes to become the next big thing. Hi. Im mandy drury, on todays pitch we have two founders that want to take the junk out of junk food and they think theyve got a pretty sweet solution literally. Nik nicky and adam are cofunders of kanzy company unreal. Nicky started the company when he was 13. He teamed up with chef adam who has worked all over the world including the free style restaurant and this is their power pitch. I started when i was 13. After a fight with my dad about halloween candy. I didnt understand why candy and my Favorite Foods<\/a> had to be bad for me why they contained loads of sugar. I wanted to know if i took the junk out if it tasted better. I teamed up with adam and we founded unreal a company with a mission of unjunking junk food. We started with candy, moved the junk and added ingredients, reduced the sugar, added nutrition and made it taste better. People have come to accept to have great tasting candy you need junk. Weve given you a junk free alternative. Similar prices. At the end of the year available at 20,000 Stores Nationwide<\/a> including target. Weve secured if funding and partnered with people such as bill gates, jack dorsey and Leonardo Dicaprio<\/a> who believe in our mission to unjunk the world. Plenty of other food categories to unjunk that sn. Theyre on the right side of our screen. On our panel, patrick cheng, venture capitalist of nea and Harvard Universitys<\/a> Experiment Fund<\/a> which cedes College Student<\/a> starups and curtis stone author of five cookbooks including his latest whats for dinner. Lets huddle up. Curtis, go first. I think any time you take an existing category and you make it a little healthier, more natural and youre removing some of the gmos and hydro nated oils and all the stuff that we consider junk, i think its a really exciting idea. Patrick . Empty calories from added sugars and solid fats account for 40 of all calories consumed by children nowadays. This is the first generation that may not live as long as their parents. So my question is, is this a healthy candy. Yeah. I think thats an excellent question. We want something thats delicious and nutritious but how will they muscle in when there are so many other players . Thank you so much for joining us once again. In the hot seat right now. We have two hot seats for you. Were now going to ask you a few questions. First i would like to throw it to you, patrick. What do your margins look like compared to your competitors and how can you maintain competitives pricing . Weve multiple with different ingredient suppliers, manufacturers to give us what we need and theyre partnering with us for the long term. Youre calling it unreal candy up junked and what research youve done on your target customer . To me that sounds cryptic. People are seeking out better for you alternatives. Weve coined this unjunked. Unjunked basically means its made as if you would be making it yourself. How much have you had to spend on marketing . I would imagine to get your name out there an saturate the market with one bang you had to spend a lot of mun. Marketing is not something you can put a price tag on. Its really a brand building exercise. Were never going to outspend our competitors. David versus goliath. We are david. How committed are you to the business . Youre only 16 and how will you take over a market thats dominated by two extremely strong incumbents, hersheys and mars . Im very committed to this company. I love it. Its in my heart. I do as much as i can. I have to remain in school, so its a very solid balance between company work and school work. Nicky, i want to know where youre at in the point and how youre performing . We set goals for ourselves at the beginning an we made mistakes, but weve made a bunch of successes. The goals that weve set i believe weve made most of them and just fulfilling new ones. It tastes less sweet and i know its got things in here that are better for me. Does it have fewer calories . We do have less calories but we were never focused on calories. Fat has more calories than sugar and the good fat and protein are worth making that. Youre focusing on nutrition as opposed to the it is less fat. The sugar is public enemy number one and weve focused hard on sugar. Reduced the sugar by 40 . Okay. Folks, youve heard what nicky and adam had to say. We need to know whether or not you are in or out on unreal. Patrick, you first. The hunger for healthier alternatives have produced massive investment returns, vitamin water acquired by cocacola for 1. 4 billion, tivan by starbucks for 620 million. I think unreal is hitting obesity in the gut targeting candy, i love it, im in. Curtis, what about you . I think its a little too clev foreits own good. I wish you called it something else. For that reason, im skeptical about the success of it long term. However, i really believe in the category and i believe in what youre doing so im in. I like the fact that its delicious and moving ever closer to nature. I have to say i am in. And im going to have another one straight after this segment. Weve got three ins. How do you feel . Fantastic. Whats your reaction . Were going to do it together, right . Not just one of us. Its a whole team. Its going to be everybody. Best of luck and were looking forward to seeing what is next in your innovation pipeline. Thanks to nicky and adam to unreal and our panelists patrick and curtis. And that, guys, is todays power pitch. And im in. I tasted the candy, these are the peanut covered with sweet, little less sweet as mandy said, theyre very good. I liked it. Maybe i will give some out tomorrow to the trickortreaters. We would like to hear from you, in or out on unreal . Logon to power pitch. Cnbc. Com or go on twitter and tweet with the powerpitch. Only guy i know who can eat and talk on tv at the same time and do it gracefully. All right. Linkedin shares on a tear this year, but right now, the companys getting hit hard. Its down 8. 3 . Its outlook disappoints. Julia boorstin spoke with the ceo. The richest person in your state. Were going to name some names, some are surprising. Were back in a minute. [ male announcer ] what if a Small Company<\/a> became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool<\/a> on thinkorswim. From td ameritrade. A Research Tool<\/a> on thinkorswim. I see a world bursting with ideas, with ambition. Im thinking about china, brazil, india. The worlds a big place. I want to be a part of it. Ishares international etfs. Access to developed markets, emerging markets and single countries. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of prpal. Linkedin beating wall street estimates for its Third Quarter<\/a> but the revenue outlook for the Current Quarter<\/a> fell below expectations and as you can see shares of the social Networking Company<\/a> are now down 8. 3 . Thats just off the lows of the day. Cnbcs Julia Boorstin<\/a> spoke exclusively with the ceo. What did he tell you . Well, sue, linkedin is bullish about the companys expansion prospects saying that with mobile about to hit a tipping point, projecting 50 of the companys visitors will come from mobile next year. Hes also looking forward to growth and expansion in china and also from a potentially massive market from parttime jobs. Heres what he had to say. China has become one of our Fastest Growing<\/a> companies as measured by member growth and in terms of the addressable opportunity, its quite significant. By some measures theres as many as 600 million knowledge workers or professionals in the world. When you include students in china one in four of that addressable opportunity is in the country. Part of the longer term vision and development of the economic graph is to digitally represent every Economic Opportunity<\/a> in the world, both fulltime and temporary and today we have north of 300,000 fulltime jobs, largely oriented around high valued professional opportunities. But to realize our vision we have to expand that. There is an increasingly large segment of the work force in the United States<\/a> thats in parttime jobs and its not necessarily the intention of those individuals. Theyre whats called under employed, looking for fulltime work but only able to find parttime work. That i dont think is going to go away any time soon. I think this is a secular shift in terms of the way the Global Economy<\/a> is evolving. Weiner talking about a longterm vision there. For more on linkedin go to cnbc. Com. Back over to you. Thank you very much, julia. More than 7 billion people in the world and there are only 72 apparently who really matter. Really . Well, forbes out with his its new list of the powerful people and we have it for you. Ever wondered whos the richest person in your state . Well shine the spotlight on that when we come back on power. At least as much as you do. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. The ocean gets warmer. Face time and think time make a difference. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. [ male announcer ] when we built the cadillac ats from the ground up to be the worlds best sport sedan. People noticed. The cadillac ats 2013 north american car of the year. Lease this cadillac ats for around 299 per month with premium Care Maintenance<\/a> included. Your Financial Advisor<\/a> should focus on your longterm goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Coming up on street signs, guess what . We are the official fed show here on cnbc. Talking about street signs. And, of course after we got that surprise no show for the taper, there are expectations out there for status quo again today. So, will something upset the apple cart . A star crew on board, pimcos bill gross and starting five minutes earlier than normal, 1 55 eastern time. Apologies power lunch because well eat out five minutes of your time. Join us top of the hour, 1 55 when it starts. Back to you. Its worth it, mandy. Well see you at 2 00. Who is the richest person in your state . Well, wealth x compiling the list and highlighting five of them. Residents were determined by their businesses and their addresses. Californias richest person, oracle founder Larry Ellison<\/a> with 46. 4 billion. Texas, michael dell, with 16 billion. Florida, mickey arison, the former ceo of carnival with 5. 9 billion. New yorks richest person, is the mayor, Michael Bloomberg<\/a> with 21. 4 billion. New jerseys Hedge Fund Manager<\/a> david tepper with 7. 9 billion. To check out the entire list and your state, you can do it going to cnbc. Com. Ty . All right, sue. There are more than 7 billion n the planet but 72 actually rule the world according to forbes which published its ranking of the worlds most powerful politicians, financiers, ceos and billionaires. Here is michael nor. Whos number one and why . Number one is a bit of a surprise, its russian president vladimir putin. And, you know, i think this is this list is based on a vote of eight editors across four criterias. Complicated how we put it together but reflects a collective wisdom of our editors here. My guess is, that it more what happened to our number two person which is barack obama. This vote was done during the Government Shutdown<\/a> and the nsa spying scandal going on and i mean putin is autocratic. He doesnt really answer to anybody and he could be in power until 2026. Obama had been number one in the prior survey. Yes. As you say, there may be some function of when the polling was actually done and also the fact that putin seemingly maybe outflanked the president over syria which happened in september. I would guess that has a huge impact. Also one of the criteria they use to vote on this list is, how freely people wield their power and putin seems unconstrained. Lets talk about newcomers and women. How many women are on the list and who are the most noteble . There are nine women on the list this year, up i believe from six last year and there were only three on the list are inaugural year and one of those women is a newcomer, janet yellen, the presumptive new chair of the Federal Reserve<\/a>. There are also two africans on the list for the first time ever, including africas richest man, 16 billion, akeel degota who made his fortune in cement, but hes using that fortune which is a substantial one in an impoverished place in africa to influence politics. We appreciate you being with us. Thank you. The countdown to the fed decision is on and cnbc has it covered as mandy said were going to share the last five minutes of our show with them. Stay tuned. We have a little more. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. His day of coaching begins with knee pain, when. [ man ] hey, brad, want to trade the allday relief of two aleve for six tylenol . Whats the catch . Theres no catch. You want me to give up my two aleve for six tylenol . No. For my knee pain, nothing beats my aleve. We are just minutes away to the feds decision and we are seconds away from the arrival of senior economic correspondent she told me it was over there. Whos been preparing for hours to be right here at this very moment. So sue, weve got steve here, were ready to talk about the fed. Nobody really i cant remember a less eagerly awaited fed meeting than this one. Compared with the one back in september where we all thought something was going to happen. I think this is a Holding Period<\/a> here and what we look for is hints in the statement whether theyre going to flash, talk about it in the next hour, what kind of light they flash for the markets . Do you think they will . I dont think they will. I will point out, i was calculating oh, yes. Go back and show a chart since june of the s p. All right. Were at 1650, more than 100 points above where they were when the fed was ready to taper on the s p. Something to take into account. And i also wanted to talk about todays data not cpi data. And adp data. The numbers 130 thats been stepping down. Look at that in a second. Nonfarm payroll estimate 130 as well and september revised down. Look at the chart here. The adp numbers. What you see there it doesnt take an economic genius to figure out we have consecutive weakening there, june, july, august, september, october. But there it is, tyler, obvious to see. Not getting any closer. 130, tyler, is near a rate where its not enough payroll growth to keep lowering the Unemployment Rate<\/a>. One of the feds stated goals for qe. The cpi chart going the other way. 1. 7 year over year the fed wants 2 so we are not getting closer to either objective of the Federal Reserve<\/a>. Theres green light for more buying of bonds. Or at least remaining in place right now. Theres also the disconnect between the way the consumer is feeling and main street is feeling and the exuberance the stock market is feeling. The stock market moving to new record highs almost on a daily basis based on the fact that theyre counting on the fed to keep adding its accommodation. Main street look at the employment numbers and its discouraging. I think thats right and two things behind it. One is that the market is now convinced of a much longer period of quantitative easing and the second thing is that court profits have been rising at a rate higher than gdp. That means Profit Margins<\/a> have remained strong unlike other cycles weve gone up to this lofty level about 12. 5 , 12 , corporate profits a percent of gdp and stayed there. The release time is what . 2 00. 2 00 sharp. That will do it for this hour. Well watch the dow, the s p, theyve been basically flat most of the day. Well see how they react to the fed decision, sue, just minutes away. Its interesting, the transports have started a little selloff. Were down about 47 points. Keep your eeye on the transport. The fed decision straight ahead. Steve to the other set. Street signs after a quick break. See you tomorrow. Americans take care of business. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial<\/a> does. Thats what they can do with you. Ameriprise financial. More within reach. Thats what they can do maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance<\/a> is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance<\/a> quote. Usaa. We know what it means to serve. [ engine revs, tires squeal ] [ male announcer ] since we began, mercedesbenz has pioneered many breakthroughs. Breakthroughs in design. Breakthroughs in safety. In engineering. And technology. And now our latest creation breaks one more barrier. Introducing the cla. Starting at 29,900. Welcome to street signs. Today we are your official Federal Reserve<\/a> show. We are about five minutes away from hearing what the fed will or will not do and because no one thinks they will begin to taper maybe thats a reason to think they will begin to cut back on their bond buying. I am brian sullivan. A big fed day. Im mandy drury, this is where the markets are standing minutes before the fed decision. The dow off by 21 points, the s p off 5 points both the dow and s p opened at record highs. Treasuries, this is an interest one, yields around threemonth lows. The tenyear is quite low. 2. 48 . The expectations are that the fed is going to stick to its current pace of bond purchasing and that is the reason the gold is gaining as well as we speak. It is currently up by about 8. Let us bring in Jpmorgan Funds<\/a> david kelly, jim bianco and steve liesman. What are the odds today will be a Buster Douglas<\/a> fed day and shock the world against all odds it will not taper. If you take it from the last two meetings the odds are high. I think at least on one level the fed is where it wants to be and thats that 248 on the tenyear note. I dont know about the stock market. If i think about the level of the s p, for example, at 1750 or so where it is right now, it was at 1650 or so when the fed was ready to taper in june. Right. The question is does the fed have concern as larry fink suggested with the bubble nature of current stock markets, feel a need to take any air out of the balloon and we will be watching the statement, a green light, a red light or yellow light for stocks . Just to remind our viewers here what black rocks larry fink said, the feds policy or the fed policy contributing to bubble like markets and it is imperative the fed begins to taper its asset program. I would like to though, since then, since september, weve had soft reads on the economy, weve had the shutdown. Do you think the economy is Strong Enough<\/a> to start doing that 1234. The fed looks to have been the a holding pattern. What has happened however, which i think is a little more worrisome, the extent to which the market has extended its belief in qe. As you said at the top of the show, our fed surveys shows april 2014 when the taper begins, from november where it was, and continues to taper, im going to put money into the jaw, dont you worry, continues to taper through qe through all of 2014. I dont know if the market is too irrationally exuberant about qe next year. David kelly, do you agree with larry fink, are stocks in a bubble . I dont think stocks are in a bubble but i think we will end up with asset bubbles if the Federal Reserve<\/a> maintains this excessively easy Monetary Policy<\/a> through 2014, 2015 into 2016. Were asking for asset bubbles if we keep liquidity this available in a recovery why is now, david, not a bubble, but in a year or so it may be . Whats different . Because from a valuation perspective. If you look at the measure i look at the most something called real core earnings, look at the earning yielding stocks, subtract out core inflation. Put inflation into the mix, pe ratios, the market still isnt expensive at these levels. Its not cheap and it will get expensive if people have no way of making good money on longterm bonds or short term cash. Thats going to pour money into the stock market and cause a bubble there, may cause a bubble in housing at some stage. At the last meeting when with us, david, you said it was a wimpy decision to not taper. Jim, i would like to bring you in. What would you like the fed to do and what do you think the fed will do . Well, what i would like to see them do is what weve referred to as the jeremy stein argument. Jeremy stein one of the fed governors, harvard professor, expert in Financial Markets<\/a> and arguing the fed has to be very careful about the reaction in Financial Markets<\/a> and whether or not theyre going to foster a bubble or not foster a bubble. The september 18th meeting it seems like what the fed decided was that jeremy stein argts doesnt hold any weight. Theyre about data dependency, the Unemployment Rate<\/a>, theyre all about the payroll report, theyre all about inflation and gdp and not about whether or not theres an inflation or an asset bubble going on. Id like to see them bring that argument back and talk about the reaction in the Financial Markets<\/a> and not just say that theyre ignoring it and just looking at the Unemployment Rate<\/a> and gdp to make their decision when to taper. All right. Were about ready to get that decision so i want to give you the update. The dow down 28 points right now, the tenyear treasury yield at about 2. 49 . We are waiting from hampton and to our loyal viewers, everybody that says the t word owes a dollar, steve, two bucks in, i have a feeling this jar will be filled by the end of the show especially if the Federal Reserve<\/a> does shock the world. Lets go to Hampton Pearson<\/a> in washington, d. C. The federal open Market Committee<\/a> decided to continue the purchase of additional Mortgage Backed<\/a> securities at a pace of 40 billion per month and longterm treasuries at 45 billion per month. The committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases. On the economy, information received since the last meeting in september suggests Economic Activity<\/a> has continued to expand at a moderate pace indicators of labor Market Conditions<\/a> have shown further improvement but the Unemployment Rate<\/a> remains elevated. 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