But appetites to own are another. New home buyers, first timers, new lows, enormous ramifications for the housing economy. Lets check in with sue at the new york stock exchange. Kind of a mixed day here. We had mixed Economic Data so perhaps mixed trading session should not be a surprise. Dow, s p 500 and dow utilities. Dow negative by about three points or so. Some of the big integrated oils are moving. Chevron and then home depot the biggest drag on the index. Nasdaq up for the 11th time in 1 sessions. The middle of october we all remember how brutal that was. It ended with a pretty big bang. Which are riding the market the best . The index funds or actively Management Funds . Dominic chu is back at hq. If you look at active versus passive discussion it is about whether or not it is better off to pick stocks and time markets as opposed to do what everybody wants to do which is stick with one fund that marks the s p 500 and go from there. According to the analysts at morning star tells us if you look at the average passive fund the performance is actually a little bit better than the average active open ended mutual fund in america. If you take a look at the equity funds alone check out some of the biggest ones. One of the biggest ones in the country is the fidelity contra fund. It is up around 8 so far year to date through the end of october. It has some really, really big holdings. You think of big names like google, wells fargo, facebook. That stock just slightly under performing the s p 500. If you look at one of the biggest passive funds in america, the Vanguard Total Stock Market Index Fund is one thats of course, there are the nay sayers who say active stock picking doesnt work over the long term. You are better off in an index fund. Thank you very much. Stay with us if you wouldnt mind. We are going to bring in sue and talk more about this. Also joining us jordan waxman, partner at hightower and burke white, a chief Investment Officer at lpo financial. Where do you come down on the question of active versus passive Fund Management . The most important thing is not to buy the active but to buy active managers that perform in the top half of the universe. We think active management out performs over time. We see such low volatility and we have low volatility and not a opportunity. As volatility begins to increase that is more opportunity for active managers. We think they begin to do much better in the environment. I dont know that the numbers bear you out there. If you pick the top and those guys are able to replicate their performance over time. Generally speaking i think over a longer period of time the indexers have an edge overactive management. Well, again, if you pick active strategies that are average no doubt about it. At the end of the day i think what you need to be able to do is to go out and do diligence on really great active management and be able to find those that have been able to generate strong alpha over time. There are plenty of strategies that have batting averages in the 70, 80, 90 percent range over time. They get lost in the average manager but dont screen for average managers. Screen for above average managers and find them. Jordan, why dont you weigh in on this . Parts of the stock market are very well discovered. Those are the strategies in which active management has a hard time beating the benchmark. There are plenty of undiscovered parts of the market, emerging market, International Markets where real stock even emerging market debt on the stock market side boots on the ground analysis can uncover some really good gems. Its possible to index your entire portfolio. We manage substantial portfolios. We are abnostic. What we do is advocate for our clients and do what is in the best interest for the client. Picking an area that is well discovered we might index that part. If we need real diversification invested in Insurance Risk we dont want to invest in a single strategy that picks wind in florida but rather a broad diversified approach. It is the same dialogue you are having. Pick areas where diversification makes more sense or tough to buy the index you pick the index. In my life as a Financial Adviser one of the things you would always tell clients is you want to put the bulk of your financial worth in the stock market into indexes. Over time the average manager cannot beat the market. What i would say is if you are looking at the undiscovered parts of the market you can say have 80 of your portfolio indexed to the s p 500 but then certain parts in emerging markets perhaps, perhaps small cap stocks and others that are industry specific where maybe there are average expertise. Find the little bit of out performance elsewhere. Thank you. I want to turn to our guests and find out where they think we will go into november. October certainly kept us on our toes. November traditionally is a pretty strong month. Do you think it is going to hold to its historical norm . October istypically a terrible month. It is not just halloween that ends the month but usually stock market crashes. We had the first real pullback that we can remember in the last three or four years followed by a huge snap back. It tells you the market is tenue s. If you look at november it is usually very positive time for the market and that the market will probably consolidate around here and then build on its gains. We didnt believe the pullback so we allocated where we had cash or money in fixed income. We shift d on the margin into equities and took advantage of the dip even in Master Limited partnerships which had a nice run we put our cash to work in that portfolio. How is november going to shape up do you think . We think quite well. Even though the markets have all time highs you have a lot of things working in your favor. Earnings growth is the big one. We are tracking 9. 3 year over year earnings growth. Think bank of america out it is almost double digits. We think that back drop has been good and the guidance is quite good. We think that is going to continue. We got ism today and it was quite good at 59 and anytime you are above 57 over the last 30 years it showed a gdp environment on average of about 3. 6 . We think that it looks like the rest of the year is going to be quite good and just to kind of put the nail into coffin here for success, mid term election quarters in the Fourth Quarter are quite good. On average over last 50 years up 8 . Only up 2 so far this quarter. There is room to run. Thank you very much. Appreciate it. Out to los angeles. We have a market flash. Pandora shares shooting higher after taylor swift pulled our albums from spotify. Swift hoping fans will buy her music on the massive success of the new album expected to sell more than 1. 3 million copies on the first week on sale. Pandora still has swifts songs. Far more complicated to pull from pandora than from spotify. They are still up about 3. 9 . Thank you very much. We are watching apple. That stock marching to new highs. Apple up 10 . There you see in one month 10. 1 . The tech giant considering doing something with its bonds that its never done before. Josh lipton out west with the details. We know investors are big fans of the new iphones but how would they feel about a new ibond . Apple is lining up a potential new deal possibly in euros. Deutsche bank arranging a call with investors. A bond sale in europe makes sense for apple given the regions rock bottom borrowing costs. The average yield Investment Grade corporate debt in europe is around 1 with an average maturity of five years. In comparison a bond issued in dollars maturing in five years yielding around 2 . This could be another cheap Funding Source for the iphone maker. Apple was last in the bond market on april 29 with a 12 billion deal following up on last years 17 billion sale according to deal logic. Jean munster says it is a clear bullish sign about how apple feels about its future. It must feel confident about business if they are willing to sell debt. Munceter expects apple to use assets from the deal to buy back more stock and committed to a Capital Return Program but thinks the company is now setting the stage to expand the buy back program, an announcement he expects when apple reports its march quarter. Thank you very much. Ford, gm and other big auto makers out with their latest sales figures plus a major settlement involving two major korean car makers. Phil lebeau behind the wheel for us with wallenda town. Lets talk about october auto sales. They were very good, not sensational but very good setting the industry up for the strong finish of the year. Those who lead the market, chrysler led the way with an increase of almost 22 . Gm a little weaker than expected, not by much. Ford a decline of 1. 7 . The industry expecting a decline of 2. 7 . A lot of focus on what is happening in the battle for full sized pickups. Ram led the way with an increase of 33 . Chevy and gmc up 10. 8 . Ford when they start phasing out the old f series saw sales drop 0. 6 . When you look at the month of october the Industry Sales rate is expected to come in somewhere around 16. 3 million which, again, thats very good. Its not close to 17 million yet but very good even though you are not seeing it reflected in shares of gm and ford. You made a mention to a settlement involving one of the major auto makers. Hyundai and kia announcing a settlement with the department of justice and epa for under reporting or misleading the public when it came to vehicle emissions. 100 million fine, the largest fine in the history of the clean air act. This involves more than 1. 2 million cars where they mislead the level of emissions, said it was going to be lower than it actually was and also the mileage was nowhere close to what it was supposed to be. 100 million fine. A big fine. Phil, thank you very much. To housing now. If new home buyers arent entering the market that makes it hard for existing homeowners to sell and move up. Are the new buyers showing signs of moving in or no . Without that firsttime home buyer the Housing Market can only go so far in recovery, sales stall, prices stall. Where is that buyer . Answers coming up in two minutes. Welcome back to power lunch. Check out shares of allergan moved up higher by about a percent after a filing that it had been approached about another party about a potential transaction, a deal. Multiple reports say the company was activist here. It is trading. You can see the shares trading up. Allergan trying to take over by valiant shares off marginally. Rcs capital dropping the bid to buy coal Capital Partners a week after American Realty capital announced ceo and results were not reliable. An offer to buy sapient and lab corp striking a deal to by covance helping to move into the Contract Research business. A big day for the big apple. More than 13 years after the 9 11 attack the rebuilt World Trade Center is opening for Business Today. The publishing giant is starting to move into 1 World Trade Center. 104 stories, 3. 9 billion and its the tallest skyscraper in america. Despite an improving job market and low Interest Rates the number of first time home buyers is now at the lowest level in three decades. Reporter for some it is sticker shock in the for sale market. For others renting is now a choice. So the share of First Time Buyers dropped to 33 down from 38 a year ago according to the annual profile of home buyers released this morning and that is the lowest level in nearly 30 years. The long term average goes back to 1981 and shows four out of ten purchases are from first time home buyers. We are still way off from that. Prices rose very quickly last year in most local markets faster than income growth. Investors are moving out leaving the market to mortgage dependent buyers. You have to have skin in the game to get the low rate. You have to put money down and have good credit. Nearly half of First Time Buyers said the Mortgage Application and approval process was much more difficult than they originally expected. Renting is getting to be more of a choice. I want to tell you, i am not in downtown d. C. Im in a Brand New Development in a residential neighborhood where the bulk of the housing is single family. This is where the good schools are and the families are and yet there is still this Strong Demand for this kind of rental property. These are going at a premium both apartments and town homes for rent. We have more online. Back to you. Thanks very much. The investigation into the crash of Virgin Galactics experimental tourism spaceship is continuing today. Jane wells is live with the latest developments. We are having a little trouble with janes mic right now. We will get that worked out and we are back in just a couple of minutes with janes story and the dow which has just turned positive. Back in a moment. Hi, are we still on for tomorrow . Tomorrow. Quick look at the weather. Nice day, beautiful tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. What a day. Cant wait til tomorrow. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. How can in china,sumption impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, Global Economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Welcome back to power lunch. Check out shares of thermo fisher. The company pledged to correct a glitch in software used to analyze data in clinical drug trials. The stock is up by about over a percent on todays trade. Thank you very much. The Investigation Continues into what caused Virgin Galactics experimental tourism spaceship to crash friday. Our jane wells is live with the latest. Reporter thats the Virgin Galactic hangar behind me. It looks like spaceship two broke up in mid air after the back end of it went from being horizontal in a move closer to vertical, an intentional move but early. Was that the cause or a factor . It is still being investigated by the ntsb but it is a unique element that is supposed to slow the craft. In this case the ntsb says it was deployed too soon. A camera in the cockpit showed it being released before the speed. After the craft reaches and starts to come down they start to move in this position in order to slow the dissent. They moved into this position uncommanded and the forces then caused disintegration. Reporter the dead pilot is 39yearold michael alsbury. Branson is seen between another pilot after successful tests of spaceship two last year. As we continue looking at the video the ntsb wont say which pilot was in the right seat on this latest trip but reuters is saying it is the surviving pilot. We have not confirmed that. Here in mojahavjavmojave. This is the valley where the sr 71, Stealth Bomber and fighter were created. The question is for private companies who dont have billionaire investment will there be a hiccup in the investment and a setback for space port america in new mexico, a 200 million taxpayer funded facility which is supposed to house Virgin Galactic trips when and if they ever take off. Fascinating story there. Meanwhile an exbank of america banker charged in a homicide. Andrea day is here with more. Reporter what makes the case more disturbing is days before the murders he quit his job and allegedly set up an out of office email describing himself as an insane psychopath saying you can contact god but the devil will have custody. A gruesome crime in the center of hong kong. British banker was charged with double murder. Local police saying they were called to his luxury high rise apartment over the weekend. Inside they found him standing over a naked woman about 25 years old with knife wounds covering her neck and body. She was confirmed dead at the scene. Outside on his balcony they found another young woman, this one wrapped in a carpet, stuffed in a black suitcase. Her body was already in a state of decay. In court he was justified as a banker at bank of americas Merrill Lynch unit. He reportedly moved to hong kong last year after working at bank of americas london branch. He graduated from cambridge. The 29 year olds apartment is located in the Central District known for its night life. Hong kong has a reputation of one of the safest cities in the world. The victims here both from southeast asia. And in court he just sat there only speaking to confirm he understood the charges which could get him life behind bars. The case is back in court on november 10. Thank you very much. Back to the markets now. Specifically, the metals markets. Gold prices are closing. Platinum and palladium the biggest movers. If you look at the palladium market it is up 1. 5 on the trading session on the