Places where you can shop and drink. And sue takes us inside the Tallest Hotel in the united states, it will be your first look. Its supposed to open in the next few weeks. Before sue moves on up, she is at the nyse. Hi, sue. Yeah. Well go uptown in a few minutes. Well take you to the. Top floor in about 30 minutes. Lets talk the numbers and big ones on wall street today. Tyler showed us the Dow Jones Industrial average up now about 178 points on the trading session. The s p also firmly into the green territory. Its up better than 1 at 1804. 25, significant its once again above the 1800 mark. In terms of the nasdaq the last trade, were up about better than three quarters of a percent or 34 points on the trading day. And the tenyear in terms of the yield, it was all over the board after the employment report this morning. Right now its at 2. 87 . Keep in mind, everybodys looking for the three handle near term in the tenyear. There are three questions were asking on todays jobs number. One, is the good news, good job report, really finally good news . Number two, is the economy stronger than free money from the fed . And number three, can Interest Rates and stocks both rise together . Jim and jeff are in chicago. Okay. Guys nice to see you first of all. Hey, sue. Is good news finally really good news . Jim you first. Yes, it is. Unfortunately yesterday, i hadnt arrived at this conclusion but ive been convinced today it piz. Good news is good news because the market realizes that were washing liquidity probably at a point where more than we should be based on the economic condition but the fed is hamstrung and going to be difficult for them to walk back. The fed knows since the feds hands are tied lets celebrate while we can. Good news, as long as it doesnt get too hot, i hate to say goldie locks people said before me, not too hot. All right. Moderation in all things. What do you think, jeff . Sue, certainly adding jobs to the u. S. Economy is good news, but im going to disagree slightly to my friend mr. Your rio here. We saw that underscored on the nonfarm payrolls, we saw it go to 293 and the pits all of a sudden started selling and then crickets. Why the equities not dropping here and then they started buying the treasuries. We see uncertainty out of the if snead uncertainty for ten minutes, it takes about an hour it figure this out and come to a reasonable conclusion. Fair enough. But to the point of occurred brings us to the point of whether or not the stronger economy is stronger than free money from the fed. Go ahead. If you beamed yourself to this point in time right now and all you had was a current economic data, youd say is the feds policy appropriate and the answer to that is absolutely its not appropriate. But the fed is worried about where weve been the last five years trying to shake the paradigm of people trying to draw in risk. This is one of the reasons the stock market is celebrating. The feds hands are tied and cant get out of the hole. They are painted in a corner. But the liquidity, the fed liquidity, this qe is stronger than these fundamentals. Precrisis, if we came out with a 203,000 plus jobs number people would spit on that. Were in a new normal but lets be honest and real here because a lot of you are confused right now. I have about 30 seconds. Were up 180 points on the Dow Jones Industrial average, but were also at 287 on the tenyear yield. So can we see Interest Rates and stocks rise together . Jim . Yes, with two caveats. One, that rates dont start to rise too fast leaving the market to believe its out of control and two, that they dont go too high. I think we can go up to 3. 4 in the tenyear and have the stocks not worry too much about it. This is turning into a love fest and killing me. Its about velocity. The move in the tenyear if we get above 3 we will see 3. 25 print. Its all about the velocity of this move and its going to happen soon. All right. Guys, thank you so much. Appreciate it. Have a great weekend. Take care, sue. Ty up to you. Heres the one that we really havent talked about yet. Sure the jobs number was decent but investors are also very closely watching those budget talks down in washington. Headlines, deal getting close as john harwood reported day before yesterday. Whats the latest here . The latest, tyler, if the market likes the jobs number, they may like the idea of a budget deal if they care only about the fact that republicans and democrats do something. But we cant overestimate enough that this is a baby step deal. Were talking about 90 billion, split evenly between domestic and defense cuts being relieved from the sequester offset by some revenue and entitlement cuts elsewhere. However, theres very little longterm deficit reduction in this deal. Were talking about putting off decisions about raising taxes or cutting medicare and social security. We also have a lastminute hangup over unemployment benefits, the extension of unemployment benefits. Democrats want that, republicans say theyre not that serious about it, its not clear whether or not democrats are going to put their foot down and say no deal until then. What i think we know is that there will not be a deal today. House leadership aide told me he expects early next week a deal to be announced by patty murray, the democratic chair of the Budget Committee in the senate. Paul ryan, the republican Budget Committee chair in the house. Then the house and senate pass it before christmas. They leave next week actually for their christmas break. So they would end the year on a positive note. It would dramatically reduce the risk of a Government Shutdown in january and does not resolve our longterm budget issues. Does it resolve the debt ceiling deadline which is some time in early february . Would that be taken care of here . Dont think it would be taken care of in this deal, but the fact that they would be making a deal, means its much less likely that you would have a showdown over that. I think the odds of either a Government Shutdown or a debt limit brinks manship crisis would go down if they strikes this deal and pass it through both chambers. One of the possible impacts of the jobs report may very well be showing up already in the mortgage market. Diana olick in washington to explain. Well, tyler, rates today are about level with where they were yesterday, despite the better than expected jobs number, and theres a reason for that. Take a look if you will. The bottom line, we knew this was coming. We got some good Economic News last week, which pushed rates slightly higher and then another surge this week with the adp jobs report, so the bond markets were in a defensive position today. Matthew graham at Mortgage News Daily told me bond traders got exactly what they expected. Still, rates are decidedly higher now from where they were last week. What does that mean for housing. Affordability is shrinking no question with rising home prices. Thats the bad news. The good news in the jobs report is this. Residential construction jobs grew in november taking the biggest monthly jump since july. More younger americans ages 25 to 34, firsttime home buyers, went back to work after a dip in october although their emts employment is way too low. Job growth in clobbered metros, those hard hit by the housing crash was ahead of national growth. That will help slow foreclosures further and boost home buying. Hate to say it, tyler and sue, rates will not go much lower. They will likely go higher. Diana olick in washington, thank you. And while washington focuses on the budget, wall street sets its sites on todays job number and the fed taper timetable. In a power lunch exclusive, bring in ceo shawn mathews. Good to see you again. Welcome back to the program. Good to see you. Thank you. Lets start with the jobs report. The debate down here on the floor is when the cutback on easy money from the fed will come, the socalled taper. Whats cantors view on whether or not this report pushed forward the taper timetable . I think theyll probably wait for one more report and start to look to taper in the first quarter. Remember tapering all its doing is take something of the massive excess liquidity in the marketplace and still have fed funds at basically 0 for still a protracted period of time. So q1, what does that do to stocks . Were at levels certainly, we see Interest Rates up today and stocks up today and we have seen them in the past historically be able to move together. Are we in that same type of environment right now . I think you still have an anchored fixed income market. When you look at the treasury market, close to zero Interest Rates on the front end of the curve which means theres significant carry out there and available to people. Until you see a next wave of growth, i think theres going to be natural buying in that low 3 area on tens, which will bring the market back in. I think were range bound in fixed income world which means that the equity world can continue to rise. You know, it also brings up, though, the fact that we have a stock market today thats moving up with Interest Rates moving up. Seems as though good news is now solidly good news for the market again. I agree with that. Part of the reason is if you look over the last two years, most of the expansion has really been multiple expansion in the equity markets. The equity market is looking for Revenue Growth on the top line basis and if it sees its sights and can see growth, its going to make another move higher. So thats why the equity market is looking at this as positive news because top line growth has to drive the next wave of price appreciation. Shawn, im going to bring in kayla tausche. Shes been following an issue a lot of financial executives such as yourself are looking at and it regards the volcker rule. Tuesday regulators are expected to approve a final draft which limits how banks can trade their money. The linchpin of this newest draft something called ceo certification. This means if a banks trades break the law Senior Management takes the blame. Jack lew said the right, quote, tone at the top creates a culture of compliance. Its not the first time regulation is put in executive on the hook. The exchanges require managers of broker dealers to attest they have the appropriate trading supervision. Sarbanesoxley requires management to submit an end ofyear report certifying the companys financials. The sec settled with fifth third over faulty accounting on commercial real estate loans. The settlement named dan poston because he signed that certification. Neither admitted or denied wrong doing and poston is still employed at fifth third but the question is a lot of executives i talked to say having this hierarchy in the volcker rule is unfair because they cant know everything that happens on a trading floor. I know cantor complies with the rules on the exchange that have you as test to the supervisory controls. Do you find this to be an effective tool and do you find it to be a fair one . You know, from our perspective were a private partnership so in reality its our money thats actually circulating within the firm so we have to know whats going on. And, you know, thats why we look at it different than other people. So im not sure why its an issue for other firms but from our perspective, you know, its our money at work every day. We want to take care of it and have Great Customer relationships and grow our franchise so its kind of how we operate anyway. Shawn, let me turn to you where you see opportunity in the market right now. Were at record highs in many of the indices and people are looking around for either value or growth. Where does cantor see that . I think people are looking for growth and thats going to be the driving factor. If you look at Growth Stocks theyve done tremendously well and continue to do well. People who are going to outperform earnings estimates will continue to see massive benefit because youre still going to be in a low Interest Rate environment which means that people will pay four that growth story. All right. Shawn, thank you very much. Sean mathews. Thank you. All right. Up to dominic chu for a market flash. Hey, sue. So nokia is on the rise here. Jpmorgans reinstating coverage of this company with an overweight rating and price target of 10. 80 a share. Its analysts noting the substantial potential the company has to monetize its patent portfolio is there, and so those shares could become more valuable in the future. Tyler, back over to you. Thank you very much. If you havent been hit by a Winter Weather this week, it may well be on your way very soon. This is video from oklahoma yesterday. Icy roads out there, scores of accidents from east to west. The storm has moved now into arkansas. It did that early this morning. Schools and businesses throughout parts of the state are closed. Missouri getting hit as well. Here is the weather channels jennifer delgado. Certainly a busy day at the weather channel. We are tracking a big storm out there producing snow as well as freezing rain and sleet. Anywhere youre seeing on the map in blue, of course, were talking about snow, but the area in concern pink and purple. Those are the areas were going to be looking at icy conditions. And that includes parts of the midwest as well as even into parts of the ohio valley. As we go through today, tonight, see that precipitation slides over to the east. Pittsburgh, you will be tapping into some of that snow and this as i said is going to be a threat for today as well as even through saturday. Now as we talk about some of the ice accumulation, the area that were really concerned about is going to be from parts of northeastern texas including dallas all the way over towards louisville. Anywhere in this purple area were talking about the potential where we could see a quarter inch of ice or more and that means we could see some of these power lines coming down from the weight of all that freezing rain. Back to you. All right. Jennifer delgado, thank you. If you are a u. S. Soccer fan and havent heard news of the draw yet, down in brazil, prepare yourself. Its not particularly favorable to the u. S. Team. The u. S. Is in a very tough bracket for the world cup. The u. S. s first match against ghana on june 16th. U. S. Has lost to ghana in the last two world cups. It also plays portugal, rinaldo plays for them, that is a tough team, they won the euro cup a couple times ago and germany, a perennial power. Only two of the four teams in the Group Advance to the elimination round. Its going to be tough. The bioteches have had a great year. Check out the chart up 47 year to date. Many of the analysts weve been speaking with are in agreement about the year ahappened and well tell you what theyre saying when we come back. Moving on up, sue is in the newest and Tallest Hotel in the whole united states. Take a look. We are in the Tallest Hotel in america with fantastic views of midtown, manhattan. Its actually two hotels in one. Well tell you all about that next on power lunch. Seart spark your curiosity tdd 18003452550 can take you in many directions. Tdd 18003452550 you read this. Watch that. Tdd 18003452550 you look for whats next. 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Stocks in rally mode today, dom, helping to push the dow higher for the year and very nicely so. There you see it. Year to date the industrials. One sector that has been on fire this year is biotech, not many of them in the dow, none of them, stocks in record territory outperforming the biotechs. The markets for the past two years. Theyre on track now for the biggest yearly gain in that category and more than a decade. So, can the run continue . Show da dharmarajan is at the nasdaq looking into it for us. Hey there. Feels like every day im here talking about the biotech index hitting a new record or stock hitting a new high, the question is am i going to be here in 2014 talking about that same biotech outperformance if several analysts that we have spoken to say yes, a lot of the sector trends that have helped the biotechs go forward are still going strong. They talk about the example of the fda approval process, streamlined approval process and say that halo effect is still happening. Drug approval now at a 16year high. And also you have to talk abe the changing demographics. These aging baby boomers mean more need for Drug Discovery and a ready market for drugs already in the pipeline. Steve silver from capital iq tells me when it comes to this pipeline, Drug Companies are looking very strong and very robust in healthy pipeline and the fact is the companies have been executing really, really well. So yes, stock prices have been running up but he says look, growth projections for these companies are running up as well. So in 2014, where should an investor put their money . Ubs for one says keep your eyes on the large cap biotech names. Names like gill lee adand cell gene and biogen. Take look at valuations, not that stretched, some trading at 40 discount compared to their peers. Programs a good buy Going Forward, tyler. Thank you very much. After a rough week the party is back on on wall street for today. The dow is zooming, stocks are up, basically across the board. Bob pisani standing by on the floor and well get to him next where hell show you some of the big indivi