Among the traders this morning, lets take a look where we are. Have you noticed . I noticed that the open said this, all the major indices opened on the upside. The dow industrials and transports, you love this, sue, dow theorists, new highs, both together, thats a good sign. S p 500 touching an intraday high. The russell 2,000 small cap indices doing well. The nasdaq doing well. Why are we rallying . There is where the little humor goes in. Just put up the full screen and ill show you something here. The most logical reason we are rallying at this point is because hedges are being unwound after the fed meeting. So traders went out and bought protection in case the fed got hawkish yesterday. They didnt. And today theyre covering. Thats the logical reason were up. On top of that, theres a big options and futures exploration tonight and tomorrow. That may be playing into that. Thats having some synergistic effect. But finally, and this is what sue and i were laughing about, many traders feel a lot of this is the alibaba effect. Put up the nasdaq and ill tell you why. On monday a lot of people sold tech stocks. The nasdaq was down. The theory was theyre selling tech stocks so that three days later, they can buy theyll get the money, and three days later they can buy alibaba. It takes that time for settleme settlement. Now a lot of people are discovering theyre not going to get much stock, so instead theyre investing it back in the market. Thats why the nasdaq is outperforming today. Again, this is all a little bit of theory. There may be some of this, but the logical explanation just has to do with a lot of people covering now that the fed is not really as hawkish as some people had feared. All right. You believe whatever you want, folks. Well see you in a few minutes. Its a lot of fun. Thank you very much, bob. In just a few hours we will know if scotland will remain part of the United Kingdom or whether it will break out on its own. As scots vote, president obama weighed in on twitter, writing the uk is an extraordinary partner for america and a force for good in an unstable world. I hope it remains strong, robust and united. The polls close in four hours. Our chief International CorrespondentMichelle Carusocabrera is live in edinboro. She spent the day with one of the most influential people in this drama. We spoke to him earlier in the week. Michelle, sir tom hunters still not saying if hes a yes or a no, is he . Reporter no, he wouldnt tell us how hes going to vote today either. But what was very clear is throughout this debate, he has wanted to make sure that the Business Community was heard regardless of the outcome. Meet sir tom hunter, one of scotlands richest men. This is the biggest decision i will make in my lifetime and my kids lifetime. Reporter he made a quarter billion dollars in retail, and now hes used some of it for a National EducationCampaign Leading up to the referendum. I knew, first of all, i couldnt leave it to the politicians alone. Reporter so he hired some of the worlds leading experts and published a website with their opinions. He normally lives in the scottish countryside, but leading up to the vote, hes staying at the Balmoral Hotel in eddinboro in the same room wher j. K. Rowling finished some of the harry potter books. Hence the owl on the door. And hes done numerous tv appearances including power lunch earlier this week trying to get the voice of business into the debate. Governments dont have money. Governments just spend money. The only way we can afford all the things i believe in, Free University education, free care for elderly, taking care of those who cant take care of themselves, is if we have a vibrant and flourishing Business Community. Reporter hes not in retail anymore. Now hes invested in software, and he goes to Silicon Valley at least once a month. I love going there. I always say to the team, find me the brightest kids. Ill buy the wine, and they will educate me. And its always the best. Reporter but he still thinks scotland is a great investment. Scotland is a wonderful place to do business. Reporter one of his greatest inspirations, the scottishamerican, andrew carnegie, carnegie hall, carnegie steel. Sue, you wont be surprised by that. Back to you. Absolutely not surprised by it at all, michelle. I think you told us earlier in the week, this also marks the first time voters in the uk who are as young as 16 will help decide a significant matter of state. Its going to be very interesting to see. Reporter yeah, its been extremely controversial, that 16yearolds could be allowed to vote. And its curious to see what the outcome will be. We have seen that the Younger Voters tended to be much more in favor of independence compared to older voters. So that could definitely influence the outcome. Michelle, thank you so much. Michelle carusocabrera. Ty . Sue, for months Silicon Valley has been pulled in two directions. The government wants Tech Companies to give up information. Privacy advocates and Consumers Want companies to keep it secret. The new Apple Software makes the question obsolete. The protection is reportedly so deep, so profound, it makes it impossible for apple to comply with warrants or requests for information. Eamon javers in washington. Thats not so good for Police Agencies or intelligence officers, is it, if even apple cant track the security. Reporter yeah, thats right, tyler. Police agencies, intelligence agencies here in washington have gotten so dependent over the years of being able to track that data cloud that we now all generate everywhere we go with warrants and legal authorities, they can target specific people that theyre watching and get a lot of information about them. This move by apple could be the start of a sort of trend of Technology Company resistance to that ability by Law Enforcement and intelligence. Thats got intelligence folks here in washington very nervous. In fact, just today, we had the director of national intelligence, james clapper, laying out his vision for the future of u. S. Intelligence. And he talked about four key threats that face u. S. Intelligence. Among those is resistance, noncooperation by u. S. Companies. Take a listen to what clapper had to say just this morning. The strategic environment also includes the recent factors that affect Intelligence Community capabilities. What i have referred to on the hill as the perfect storm. Thats dogging and degrading our capabilities. The theft and leak of nsa and ic documents and loss of collection as a result. The resulting damage relationships with foreign and Corporate Partners. Reporter and sue, that Corporate Partners piece of his statement is aimed at exactly this trend, the frustration that a lot of Technology Folks have felt with these disclosures by Edward Snowden about the level of cooperation that theyve had with the nsa and whether theres blowback for the Tech Companies with their own customers. Thats why youre starting to see some of this resistance. And thats also whats really concerning to u. S. Intelligence and Law Enforcement, sue. Absolutely, eamon. U. Thank you very much. Wall street is getting ready for alibaba tomorrow. They expect 350 people on the floor tomorrow for that. How does an ipo this big get done . Well, yahoo is a major stakeholder. What will yahoo do with its big cash windfall . Maybe a dividend for investors. And the bottom line, is it a good idea to buy the stock when it begins trading tomorrow . All of that is coming up in just 20 minutes time. Ty . All right, sue, to housing now. And after soaring to postrecession highs, Home Construction plunged last month. Whats behind that one . Diana olick is on the story in washington. Di . Reporter well, ty, look, it was a huge headline. Housing starts down over 14 month to month, but the devil, as always, is in the details. A huge monthly swing in multifamily apartments pushed the overall numbers down, but apartments are still hot. Theyre running at quarter century highs, and thats why i want to look at singlefamily. Singlefamily Housing Starts fell 2. 4 . Theyre up a little over 4 year over year, but theyre still running at about half the normal pace that you would need given population. Now, we showed you yesterday how that is completely out of whack with the jump in home builder confidence. But heres Something Else thats totally out of whack. That actually begs the question, are we building too many new homes . New census numbers today show the number of vacant singlefamily homes rose last year 10. 7 of all homes in the u. S. Are empty. Now, back in 2000, before the housing boom, that was closer to 7 . And on top of that, household formation was just 321,000 last year. That is much lower than the 1. 2 million we should see based on population. All of that formation, by the way, is in rental households. Now, the number of occupied singlefamily homes actually fell by 184,000. So youve got to ask the question, why do we need to build so many more new homes when so many people are going to be doing this, that is renting. Were talking about it online. Realtycheck. Cnbc. Com. Sue . Thanks very much, diana. Well, the dow and the s p both hitting record highs today after the fed said its keeping Interest Rates low for a considerable time. Are Market Conditions good for alibaba tomorrow . Rich weiss from American Century investments, art hogan is chief Market Strategist at wanderlich securities. Rich, the market is up triple digits. I know you dont comment specifically on alibaba, but it does seem to be a fairly decent environment in which to bring a company to market. Oh, i dont think theres any question. I think theyve perfectly timed this. And how it goes tomorrow is anybodys call, depending on the pricing. But economically speaking, u. S. Is at roughly 3 real economic growth. Youve got a stock market thats, at best, fairly valued, maybe even a Little Pricey here. So theyve timed it very well. And lets face it. You look out a year, and its not likely to be as favorable. I think they might be hitting a peak here as far as their ipo pricing. Yeah, do you want to weigh in on that, art, and would you step into alibaba in its first day or so of trading . Well, thats a great question. I think rich is exactly correct. Really hitting the sweet spot in the market. You know, which has not been easy to do. This is a week where weve gotten the federate decision behind us and theres a tailwind. The market seems to be finding the path of least resistance. Here comes alibaba, a company thats been around since 1999, but weve just started to hear about it over the last couple years. Exciting and it plays right in the sweet spot of what wed like to do. Wed like to invest in the generational shift in china from a net exporter to a net consumer. So if you want to have exposure to that, alibaba is the way to do it. Theyve got 80 market share of ecommerce, growing revenues at 46 . The thing you have to calculate is just know youre not going to get it on the ipo price. Then you have to calculate what is it trading after it the aftermarket. To put numbers around that, if you were to say the multiple at the price will probably be at 68 is 24 times forward earnings, if it trades to 80, youre up to about 26 times. And if it trades to 100, about 30 times. Understand facebook trades at about 36 times forward earnings. If you think facebook is fairly priced and you want to split the difference between 24 and 36, 30 times gets you 100 stock and thats the kind of math you have to do. Absolutely. Thats a very helpful primer for the individual investor. Rich, where are you finding value . Because a number of people ive talked to do think that were a little rich in certain parts of this market. Where are you finding value for your investors . Yeah, wed agree with that comment, sue. Whats made you money over the last several months or year have been the latecycle growth stocks, health care sector, tech sector, even utilities. But thats likely not to be the right place or the richest place for values going forward. Were actually repositioning portfolios and would suggest if your investment horizon is 6, 12 months out which the stock market is typically peering out that far, you need to consider where were headed. That means utilities, possibly even consumer durables with the likelihood of higher Interest Rates in the next six months or so, decelerating earnings and sales growth virtually across the board in the u. S. , the opportunities are really now greater outside the u. S. Than they are inside. Weve certainly been the market to be in over the last several years. The recently the recent currency bump has helped as well. But you have to look to europe and elsewhere now for the best values and for the largest growth. So were looking to increase our international exposure. All right. Gentlemen, thank you very much. Really appreciate it. Rich and art. Lets go to dominic chu for a market flash. Check out peabody energy, the worst performing stock in the s p 500 on this up day. Goldman sachs has down graded shares to a sell rating from a prior neutral saying it believes lower coal prices will hurt peabodys margins. It cut its price target as well to 13 bucks a share from a prior 15. Peabody down near session lows off by nearly, tyler, 6 today. Back to you. Thank you very much, dominic. Authorities in australia staging the largest counterterrorism operation in the countrys history thursday to disrupt a gruesome plan by islamic militants living in the country to carry out random public executions or demonstration killings. Australian media reporting the suspects wanted to kidnap and behead a member of the public and drape the body in an isis flag. Australia just the latest example of radicalized islamic militants waging terror from within on the home front. Weve already seen murderous attacks in belgium and england. Steve emerson is an author and executive director of the investigative project on terrorism and gafar hussein is a director at a counterterrorism think tank in london. Welcome. Mr. Hussein, let me begin with you. How close a call was this . From what im hearing, it was pretty close. The Australian Police intercepted a phone call which suggested that these individuals or one individual is a quite highranking member of isis, and he had been given instructions to now carry out this attack in response to as a Tactical Response from the isis point of view to the fact that the australians are now sending troops to the region to help in the International Effort to defeat isis. Were starting to see a number of things isis doing now, all of which are aimed to kind of prevent or the International Coalition which has been a real game changer in isis in iraq. Mr. Emerson, react to what mr. Hussain just said, but also put in context the idea that the biggest terror threats may now come from within, not from without, and who are these people . Are they nationals of australia or people who have gotten in via a passport . What . Well, you know, after 9 11, the biggest threat was from al qaeda, sending in operatives or trying to remotely detonate planes through, you know, operational devices that could be remain undetected. Then we went through a period of homegrown terrorists who werent directed by al qaeda but were recruited online or by the Muslim Leaders in their own community. Now were into jihad. 3 where we have people volunteering to battle in syria or the west in iraq and in syria gaining the incredible experience of fighting and then possibly returning back to their own countries in europe, australia or the United States. Now, you have to remember that the people who are being recruited get vetted before they go to turkey, which is the infiltration route. Then they get embedded between at the border between turkey and syria to see who is willing to die and who is willing to be the most vicious. So when they return back to their home countries, you already have a preselected number of jihadis willing to die or carry out vicious acts of violence like beheadings. We havent experienced that in the u. S. Yet, but it certainly has been experienced in germany. Its been experienced in britain and now in australia. Mr. Hussain, how easy or difficult is it to track these individuals who mr. Emerson just described have a rather circuitous path, often moving through turkey into syria, into iraq . How easy is it to track them so that when they try to come back into the United States or great britain, they can be identified, detained, investigated . Well, its not straightforward to stop people going or people returning. Turkey is a very popular holiday destination for many british people. And millions go there every year. Its very easy to get a cheap, lowbudget flight to turkey and then get a coach to the border and cross over. If someones done that for a few weeks or even longer and decides to come back, unless theyve popped up on social media and talked openly about what theyve been doing, were not going to know what theyve been doing, these individuals. So it is very worrying that it is quite easy, in my opinion, to get back into europe, certainly, britain or america, certainly very easy to get back into europe from turkey and from syria. Part of the problem is that the turkish government has actually turned a blind eye to these individuals because they have their own tactical objectives of overthrowing the assad regime. And in the past they have not done enough to secure that border. Many individuals are