0. 1 . As for the markets this morning, take a look. The dow and the s p both closed at sixweek highs yesterday. The nasdaq ended the session at a 13year high. 15,529. That was the close for the dow. If you take a look at the futures this morning, just to get a sense of this, cramer told us yesterday the market wants to get up no matter what. The futures are indicated up higher by 2. 8 for the s p. But the big question, joe, is what happens at 2 00 today. What do you think . I think theyre going to taper by 10 to 15 billion. Which . Ten or 15 . Here is the thing. The market is almost 100 set on this. Liesman wait a second was talking about it yesterday and only 48 of the experts that he polled said the taper is going to come today. I think by saying 10 or 15 today, i think im still sticking my neck out. What do you think . I love steve, but these are just putting together a bunch of the clowns that we have on all the time. I know its a composite look at that. But theres no way it was 48 . Why should we give them any well see what happens. But the question is, the time sg weird. Theyre doing this just as we are getting back to this issue with the debt ceiling again. There is a question of what washington does with all of that. I was thinking of it purely in terms of you want to go to 70, which is a round number, that would be down 15. Or a lot of people think 75, three quartseers its probably going to be 10 max. I want to do 70. This is why i want to hire a monkey. Who can throw the dart. Thats what im saying, it might get to 70 instead of 75. Do markets care one way or the other . Its more likely that it starts in and out, right . I want to go to 70, but its probably 75. I think 75. What about 65 . No way. In corporate news, apple is going to launch its new operating system today called ios 7. Its being called the most drastic change in apples mobile operating system since apples 2007 launch. Six years already for the iphone. Among the improvements, better handling of photo galleries and air drop. Whew for sharing files with other devices. For air drop. Is that when you just test it . Is that like drop box, andrew . Maybe its where you touch it and those other phones you can you dont know . Not really, no. Air drop is when you can share the stuff with other phones. I thought it was other devices. Yeah. No, you can listen to my music from my phone. For u. S. Users, the update includes itunes radio. Andrew, looking good. A Free Internet radio service. Thats why were seeing some movement in those other competing but thats why pandora that is going to hurt pandora. Nobody else gets hurt in that. Right. Meantime, blackberry unveiled its new z30 Flagship Smartphone and theyre not really sure how good it is, so they decided theyre introducing it in malaysia today to see how it goes. The company battling the win back the market share. The new touch screen device thats a five inch display and a 11. 7 gigahertz processor, which could get the delorian up to 85 Miles Per Hour so you could time travel. It will initially launch in the uk and in the middle east. No, that was giga what . Back to the future . I dont know. Yeah, giga well immediately get bombarded with emails because people love that. Michael j. Fox. Run dmc. Jp morgues long whale problems may not end with a civil settlement. U. S. Prosecutors reportedly still investigating the banks trading scandal for potential criminal wrongdoing. This is a sign that an expected 800 million what was it . Giga watts. The settlement may not be the put to rest for the firm. Andrew, can you believe that . Back in chicago. I know. Andrew has been traveling this week. Hes in chicago. He has more of this mornings top stories. Andrew. Thank you, becky. By the way, i still want one of those skateboards, the air skateboard. Remember the one that michael j. Fox had . That, to me, if i could have that that was in later that was back to the future 2. Because he had a really . Yeah. He had a regular he had a regular skateboard in the first one. Remember . He breaks it off and hes holding on to the back of the bullys car. Yes, yes, yes. And then all of the cow doody gets spilled inside. Bif or buff. Has he ever done anyone else . I feel bad for that guy. He was in all three movies. Later on, he was washing his car later. He was in all three back to the future movies. Oh, you mean the actor . Right. Ive always felt bad for him. Were going the talk Goldman Sachs in just a minute, but we have some stocks to watch this morning. Take a look at adobe, earnings and revenue falling short of estimates. But you can see that the growth of the company says that it expected strong growth to top the 31,000 it add in the third quarter, adobe citing Strong Demand for corporate customers. Discount chain 5, below, announcing a 7 million share secondary offering for old er admin international. And i should also say i was with Lloyd Blankfein last night. Goldman sachs had their conference in chicago. Thats why were here. Were going to talk with him at 8 30 eastern. Were going to talk about fed tapering and hell give you a guess perhaps on the 10 to 15 to 20 billion issue. He is a new component of the dow and what that means and he has some interesting interviews on jamie dimon, oog even interesting news on steve cohen, who is still a client of the firm. So weve got a lot to talk to him about. And i know you guys are going to jump in. He still has the beard. Still has the beard. This is the fiveyear anniversary of all the problems. We are using a picture that takes us back to what he looked like during the crisis. We did this on purpose. Thats a time sensitive picture of where he was during the financial crisis. Because we could have gotten one that looked like him now and that was actually current, but we wanted to get one you remember, he debuted the beard, though, on squawk box. The beard is good. Hes very proud of that. We talked about that last night, he was proud of debuting the beard with us. The beard and jeans is what i see. Very casual. Yeah, the beard and jeans. Do you think its a suggestion when you really feel like you have confidence when you have a beard . What does the beard signal to you, joe . A lot of bald guys have beards. I dont know. Its almost like just to show i can still do it somewhere. Have you noticed that, though . Its the overcompensation for about then again, a lot of poem like me that have a lot of hair, i dont know what my beard would look like. Or you. Its very patchy. I could try and maybe were the ones that are inadequate. I might be wrong about the whole too much . Yeah. We also have a number of newsmakers who are joining us in studio this morning, including former minneapolis fed president gary stern. Plus, we have Toll Brothers ceo doug yearly and two members of the cnbc global cfo council. We have the top executives at home depot and wells fargo. Big show lined up. Yeah. Marissa. Not published, anyway. Yeah. They also were going to get to this right now, but they also switched michael j. Foxs girlfriend. It was yeah, it was you know way too much about this. No, no, but all of a sudden they stick her in there and youre supposed to, like, think its still her and its a totally different actress. And its like, were not that stupid. I wasnt, anyway. In the first one, remember the brother married the woman from nbc . What was his name . Shoe, elizabeth shoe. And then they switched it around. Lets get to the markets this morning. But i noticed. No putting it over on me. Theres the futures this morning. Amy robach is not with cnbc any more. No, shes not. So with can he talk about her in a negative way . No. No, i like her. I like her. Yeah, im sure. Im sure. Anyway, theres the futures this morning. It was okay yesterday, kind of never got going, got up to 50 or 60, but i think we closed up around 35 points or so. Were indicated higher. That would be more than a few days in a row. Theres oil. Now people are saying gas will never go below 3 a gallon again. Its been over a thousand days. But they say never again. But it had to go above 2 never again. Yeah. Well see. The tenyear note, taper day. 2. 85 . That might mean the fed lost control if it was over 3 . Take a look at the dollar versus the euro and the yen and said if anything is happening there. 98. 96, 1. 33. It hasnt been that much fun to watch the currencies lately. Lets take a look at gold. There are people that think its over now because once tapering starts, fred about it. Gold is headed that little thing you see there, that trend will resume and will head lower. Time for the Global Markets report. And ross westgate, hes been consistently here for us lately. Hes in london. Its good to see ross. Someone talk to you or something . No, joe, i just decided id be here, help you out as we go through this. We benefit. Viewers benefit. Yeah. We are higher. Were up to the best levels of the day. We start the session towards the fed decision. 64, 32 advancers outpace decliners at the moment on the Dow Jones Stoxx 600. Not huge gains yesterday. You can see here the stoxx europe 600 up around 0. 5 at the moment. But were not far away from recent sort of fiveyear highs generally across the board. The ftse today jup just up 6,586. The ftse above 8,000 has been called by tend of the next year, 8,000. The xetra dax did hit a fresh record high, up 0. 4 lower. The ftse mib up 0. 5 . Theres now a thought that keeps going on, here were going to do with berlusconi, theres a thought that even if they do decide to reject him, he will broadly support the sector, as well. Travel and leisure is lower. The gains coming from banks, technology and camera claws, as well. Well keep our eyes, of course, on whats going on with yields ahead of the fed decision. Treasury yields, 2. 84 . The interesting thing this morning, the mover, while treasury yields have come down, 2. 86, something on monday we say, the yield, gilt yields have gone higher, back over 3 and widening gilt to treasuries. The reason for that is we saw minutes today from the bank of england. No member voted for any more qe, despite the fact that market rates have gone up despite issuing Forward Guidance. We might get at least one member saying qe. They also are talking about upgrading their growth forecast, as well. Sterling has stronger, as well, against the dollar and the euro. Thats where we stand. Back to you. All right, ross. All of our duck necessary a ree here. Learning more. Claudia wells was the first girlfriend of michael j. Fox. I was thinking of his mother. I was confusing it. No, leah thompson. But then she was replaced by andrew shoes sister in two and three. All right. In washington news, this is much more important, obviously, than this other stuff. You know who else was in the first one, though . Huey lewis. Oh, his song. But then he was the judge of the talent at the you spend way too much time watching these. Im not watching them. I just remember. House gop leaders are said ready to be prepared to take a stand on health care. Theyre expected to use a vote this week on a must pass temporary government funding bill to block implementation of obama care. It will be offering to rank and file republicans at a closed door meeting on capitol hill later today. Meantime, the senate would likely strip out the Health Care Provision and accepted it to the house and this raises the possibility of a confrontation that could lead to a partial Government Shutdown over the september 30th end to the budget year. Interesting editorial i thought in the wall street journal today. If you get a chance to, check it out. The president was back to business with that speech. No longer syria is no longer enemy number one. Back to the republicans, enemy number one. The market is waiting to hear what the fed has to say. Joining us now is bill smead at Smead Capital Management and Jeff Mortimer at bny melon wealth management. So were at 85 billion. Where are we going today . Well, the tide is going out. 75 . I want a number. We are microanalyzing this. 75 or 70 . Well go with the consensus of 15. Thats what i think, 70. And we think that as the tide goes out, the first part of the tide only short people will be short to be naked, meaning and then you get way, wait into the wait a minute, tall people will be naked first. Really . Unless youre at the other end of the high. So what were getting at, the switch has been flipped. Capital intensive businesses, people that borrow a lot of money, this is rough on them. Utilities and telecons are not doing that great the last year. We think the taper is a continuation of the currency switch that occurred when the japanese decided to weaken the yen, in effect since the yuan is pegged at the dollar, you weaken the yen against the dollar, you cut the chinese off at the knees. So what youve done now is youve added the United States participating with the japanese and really given a struggle to emerging markets. Commodities, gold, whatever. And do you care what it is, whether its 10, 15, 20 . And markets. And what with the next meeting, do they cut another 10 or 20 or see what happens with this first 10 or 20 . Baked in the cake is a 15 billion taper, probably more weighted to treasuries than mortgages. Every time or just this time . I think the fed, you know, this is probably going to away long goodbye. They are going to be very data dependant as they look forward and i think well adjust as need be. We believe were going to get stronger data Going Forward. How long will it take them to get down to zero . Its probably a decent guess. Middle of next year might be a fair assumption. Data dependent. Theyve locked into that. Dont forget the midterm. Theyve locked into the 7 employment, 6. 5 up employment. Youve still got the front end of the curve at zero. Thats probably in our views not going to move into 2015. And the instead moving from a five, very, very accommodative to now absolutely less accommodative. But still accommodative. It used to be that they could make us feel really good by staying at zero and by just saying were going to stay at zero for a long time. Theyre trying to scare us with housing. We love right now that theres people that doubt the housing recovery and they say that this uptick in Mortgage Rates is going to ruin it. We happen to agree with tim sloan, who is going to be a guest i hear later, the demographic res powerful. Theres 18 million americans between 18 and 37. Theyve been slow to get married and slow to have children. As soon as you have a chile, you dont want your screaming baby next door driving people crazy. So we think that youve got to go back to the late 70s and be reminded when the baby boomers were buying their first house that we were paying 10 , 12 , 14 Mortgage Rates and theyre was a housing boom in the United States in the late 70s. Its need that driefls housing, its not the price of money. So theyre making a huge mistake to think that a blip up in Mortgage Rates is going to kill this recovery because theres a wave of a huge wave of people that are getting going. And we actually considered we kind of think that Kate Williams having a baby is a watershed event, the College Educated people looking and saying, hey, its a pretty good idea. Its tipped now because of exactly. Theyre wealthy, College Educated and theyre making babies. Thats what the United States needs. Thats what we need. So both of you gentlemen have to decide on how to invest money. Did you go 90 10 on equity right now . Versus bonds . Weve been overweight. Our recommendation is to be overweight and just stay there. 80 20 . What is it . With a 60 on 40 client, were upwards of 70 equities. We stay fully invested. Thats all you do . I thought you were value funds. Okay. You so youre 70 for were overweight weve been overweight equities really for a while now and just sort of continue to press those. How did you come up with that name, smead capital . A very expensive pr firm. How much did you pay for that . Loads. Anyone else work there . Theres seven of us. There you go. It could have been any of those other they settled on smead. Yeah. So both of you stay long. Markets not expensive . Market is fairly its a fair valuation. It could go higher if earnings continue . We think we could continue to pull higher. The thing that encourages it the most, and we could have a 10 krekcorrection at any time. But we are encouraged by the fact if you look at the large Institutional Investors do Something Like the nacabu study or if you look at High Net Worth individuals the way theyve got their Asset Allocation right now, theyre all very much underowning u. S. Long only. Therefore, declines are going to be limited. Were going to have decline webs but theyre not going to be the black swan folks are going to be thirsty in seven years, probably. Because thats probably how long it will be before the next black swan since everybody is all hedged for it. All right, guys, thank you. Thanks for coming in this morning. Appreciate it. Thank you. When we come back, we have a number of Large Companies that are saying theyre changing the way that they will deliver health care to their employees. Well have the details, right after this. First, lets check on the National Forecast with the weather channels alex wallace. Alex, good morning. Good morning to you. Its going to be a warm one for us in the midwest. Weve got this storm system coming in from the west. Out ahead of it, warmer and more serious air is going to come in. It will feel more like summer for you. Des moines, up to 91 degrees. Thats on the heels of the 70s yesterday. So a big warmup, but it doesnt last too long. Latter part of the week, a cold front sweeps through, the 90s, we see goodbye to that. Now were talking 60s and 70s. But that same front will be marching to the east. Out ahead of it, that will increase our risk for rain for the east coast cities. Most of the week, dry. But the weekend looks like wet weather and the same for us in the south. For our saturday, well be looking at showers and storms to kick off. Lower Mississippi Valley and spreading its way on into the carolinas fo