Firms that might be now in the crosshairs. The stunning market rally continues right now. The scorecard, s p 500 up some 24 yearoveryear. Right to the floor show. The cme group, the nymex and the new york stock exchange. First, we really should talk about whats going on with Nicole Petallides and the transports. Once again we see another record high. Yeah. Its worth taking a look at the transports. When we see a record high on this particular group, the truckers, the shippers, airlines, railroads, they really are a great economic indicator, and youre seeing some of those names moving to the upside and look at the transportation index up about 1 as we noted. Yep, indeed. And chris at the cme, i know you watch those transports, but what does it say when you have everyone frommedrailroads to airlines and Companies Like ups and fedex and the entire market itself which again continues to move up . It really, to me, means a lot of Money Managers are reaching for risk right now. Theyve been outperformed with by the s p futures, and right now theyre taking risk on and taking things off. You saw a selloff morning and all of a sudden about midday a series of higher lows, higher highs. To me, that means until we have some hawkish comments come through the fed, that this injection of money is going to lead these markets possibly higher within the week. Liz i hi youre right. I think the hawkish comments will get this market a little bit nervous. As we see exactly whats happening with oil in the Energy Sector that, to me, is an interesting story, i must say. While brent is higher, we do have crude which is moving lower. Down at the nymex, what are they talking about . 94. 59, is 90 what your buddy michael has talked about is that the next weigh station . Yeah. Kind of seems we have some downward pressure that we followed through from last week. We rallied a little bit, but id look for oil to trade lower, and id look for the transportation stocks to continue to cally based on the fact that youve got cheap oil, cheap natural gas and it looks like theyre going to go higher and were going to go lower. Liz nicole, fridays close, we continue to move slightly higher. At this point the high of the session up about 43 points. Where do we go with these large cap names . Some of them are in the dow, and theyve done quite well. Well, when youre watching the large caps, overall the idea here on wall street is very simple. You dont fight the fed, dont fight the tape. And most of the traders here on wall street continue to believe that the fed will continue its bondbuying program, right . Youre not going to see the tapering anytime soon and not likely before janet yellen moves in. So with that, the idea here is that the momentum remains to the upside. You have a couple of wildcards and headlinedriven markets, for example, on friday were waiting for the monthly jobs report. You remember that partial Government Shutdown pushed it back a week, so were going to get that on friday. Big news on twitter. Bits and pieces of information that could move this market one way or another, but overall were seeing mergers and acquisitions happening even today, and the momentum for the most part, even Teddy Weisberg standing behind me liz i see him. He really continues to believe this momentum remains. Its hard to be sure. Liz well, dont be surprised if twitter throws a little bit of froth and bubble activity into this market getting people excited. Everybody, thank you so much for joining us on the floor show. We appreciate it. So with the s p 500 hovering within a tiny whisker of its alltime closing high, its very important to note and that a lot of you are paying good money to Money Managers who cant even outperform the basic indices. Heres one who has. Our next guests fund with the help of names like priceline which is up more than 70 year to date, outperforming the 24 see, now, i like that, right . Here he comes, hes howard moore, chief Investment Officer and gamco growth Fund Portfolio manager. Nice performance, and everybody just wants to know if you agree with what some of the traders were saying and nicole. The minute they Start Talking about tapering, will this shake the markets foundation, or will we continue to see upward movement in the markets . Well, liz, i would be concerned about taper talk. I do think that the Economic News is going to continue to look a little bit better. We had a terrific Chicago Purchasing Managers index last week, great new york ism today. Those kinds of numbers will drive some taper talk. We had the tenyear treasury back up from 250 to 260 last thursday and friday, so i do think thats coming, and with the market up 24 , were probably positioning ourselves for a little bit of a pullback, 2, 3 to 4 . But then i do think that the market will push higher. Individuals have begun investing many in stocks with some greater interest in recent weeks. We see that in the flow of funds numbers into equity funds, so i think we will have a yearend rally, but i would be very cautious thinking that a pullback is also quite likely, and its likely to be driven by taper talk. Liz howard, i look at your performance, and lets just say the s p 500 is up 24 yearoveryear, the dows up about 19, 20 . Youre up 27 . Thats got to be one of your better years. Youve been doing this a long time. Will well, liz, you know, the good years come, and the bad years come too. [laughter] i think 1999 was actually my best year. We were up about 45 that year. Liz whoa that, of course, was followed by a threeyear bear market. So, you know, you have to level it out and, yeah, its a great year. I would love every year to be this good, but, you know, i have been doing this a long time, and i know that you have to take the good with the bad. Liz well, do you think that that same type of market behavior is going to follow what has been a several yearlong market rally . You know, i dont see any recession out there on anybodys forecast for the most part anyway in terms of mainstream economists. And you dont see the excesses. I think were setting up for a global synchronized economic expansion in 2014. Europes out of recessioning, japan is beginning to accelerate, chinas moving along at 6, 7 . And here we are growing 2, 3 . So i do think that next year could be good. Earnings expectations for next year are up 8 . If the stock market can maintain its current multiple of 15 times, thats 8 plus a dividend of 2 , thats a 10 return. Inflation so low right now, loving just over 1 , that cannot only support the current multiple of 15 times, it could support a multiple of 16 or 17 times as well. Liz howard just made the case for clear skies ahead. You were last here september 10th, you picked one of your stocks as google since then. As i move forward, i just wanted to let our viewers know that some of the names you have owned in the fund is up 27 , microsoft, qualcomm, priceline. Priceline up 71 year to date. Stunning, but you also have apple which is down 2 year to date. So would you point to priceline as your big winner in covering up some of the other problems at some of the companies you own . No, actually, weve had, i mean, pricelines been a phenomenal stock. Jeffrey boyd, the ceo there, continues to really manage that company well. And the earnings have grown at a torrid pace to help justify the price rise. Weve had a lot of great pioneer and natural resources, eog resources. You know, a lot of the media names and even industrial names. There have been some stocks that havent done that well. Apple, thats my biggest holding, and and it hasnt done very well this year. Liz you still like it . How long are are you going to give it . I was in an apple store this weekend, there was an empty table, that was the iphone 5c, the colored ones, and then i was doing a little retail research, and i saw that the ipad air, we immediately walked right up and were able to look at it, so there wasnt really a line for that, and this was at that gigantic mall in new jersey, the garden state mall where you just go nuts. Yeah. They just finished with september 30th, four quarters where they had negative everybody earnings comparisons. The next four should have positive. Stocks at 12 times earnings, an 8 cash flow, buyback 60 billion worth of stock, new products, new carriers coming, we think the stock can continue to move higher from here. Liz okay. Now everybody listen, here are his next two picks. They are home doe poe, and you also depot, and you also like cvs, up 34 . Tackle these in a line because i want to get to the stocks youre avoiding right now too. Sure. Home depot, this is a play on continued improvement in housing which we think is going to happen. Weve underinvested in the housing sector since 2007 as a result of great recession. Lots of pentup demand for spending on homes and new construction, so thats the safe way to play that. Cvs caremark has about 43 billion in revenues and 80 come from selling drugs in one form or another. Its a great way to participate in the expanded medical insurance from obamacare. Liz friday we have Delphi Management founder scott black talking about cult stocks to avoid, he mentioned netflix, tesla. You say the same thing about tesla. And again at that same jersey mall i know, can you believe i was traipsing around the mall . I snapped the picture because they have a mall store, and there were a lot of people in it. Why do you say avoid tesla . Theyre coming out with earnings this week, by the way. These stocks whether its tesla or netflix, linkedin, these stocks all sell for over 100 times next years earnings. So you have to have some very aggressive, positive assumptions for some period of time in order to justify those valuations. I think thats a high risk kind of area for the market, and i wouldnt want to go near it. I suspect if we do get a pullback, these stocks will pull back more than the overall market, and so i think theres much better values in the market. This is the froth of the market, and the twitter ipo might just feed further into it. So id be take taking gains if i had them and redeploying that money elsewhere. Liz howard, were going to put your widelyheld names and the ones youre picking at our facebook. Com lizclaman . I always forget. Howard, thank you so much. Youve got a great report. Cam go investors Growth Equity chief Investment Officer. Thanks, liz. Liz were about 49 minutes away from the closing bell. Imagine this kind of growth, Tri Pointe Homes hasthe blink of any with a nearly 3 billion deal to buy homebuilding business. Doug bauer joining us live next to tell us how he plans to develop those 30,000 lots and what itll mean for you, the investor. And as the u. S. Attorney announces what the feds call the biggestever Insider Trading settlement, he also raises new questions by saying no institution is, quote, too big to jail. Whos he going after next . Charlie knows. He was at the u. S. Attorneys news conference. Hes going to join us with his take and his thoughts this just a moment. My mantra . Family first. But with less energy, moodiness, and a low sex drive, i saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron. The only underarm low t treatment that can restore t levels to rmal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than8 or men with prostate or breast caer. And children should avoido are contact where axiron is applied as unexpected signs of puber in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medication serious side effects could include increased risk decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while eeping; and blood clots in the legs. Common side effects include skin redss or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. Ask your doctor about axiron. Pop in the drum of any machine. To wash any size load. It dissolves in any temperature, even cold. Tideod pop in. Stand out. Liz the power mover of the hour is tesla. Im going to do this backwards. 28 a share was the annual low. Look at this right now. We have it at 173. So from the span of a year weve had it at 23 and now 173. In this investor darling is speeding faster and faster. Today as you see trading up another 10 or about 6 , 6. 75 after the Company Announced an agreement with panasonic to feature its lithium ion battery cells in teslas cars. In the meantime, look, maybe elon musks baby is navigating from the wealthy elites to the mall rats. I took the picture. Spotted over the weekend at the Garden State Plaza mall where my floor director, benny, spent many a teenage year. Yeah. [laughter] liz i saw this, and my poor daughters, cant we go the apple store . I said teslas the same thing only for cars. They do things differently. They dont have dealerships. They have stores in malls. But, you know, i would say the Garden State Plaza, yes, they have gucci, pucci, but theyre not exactly the highestend mall, although theyre getting there. But to have a tesla location and a storefront there we thought was very interesting, and again, their earnings numbers are coming out tomorrow. We will have it every which way for you. Las vegas high rollers looking for bargains dont have to look very far far. Entertainer wayne newtons mansion is up for sale, and the price has been marked down, yes, cut. Are you ready . You can see if you want it. The property was originally put on the market for 70 million, but the price has been slashed, as you see, to 48 million. This estate sits on 36 acres and has eight separate homes. Eight separate homes. Now, remember, Bernie Madoffs penthouse apartment with three bedrooms is 17 million. The main house has three bedrooms, six and a half bathrooms, the property also includes multiple swimming pools, horse stables and Tennis Courts plural. But if you get bored of entertaining inside one of those eight homes, take the party outside. Theres a passenger jet just sitting there, a focker f28 just to kind of hang out in and pretend youre a flight attendant. It also includes its own airport terminal with plenty of space for a party. But i dont think that jet can actually take off. We were looking into that. [laughter] cant actually take off. Okay. Speaking of parties, time for a house warming party. Two Companies Moving in together in the latest home builder merger, Tri Pointe Homes has bought warehousers real estate unit in a deal valued at 2. 7 billion. What does this do for tri pointe . It makes it one of the ten largest Home Builders in the u. S. It just recently went public. Is this latest merger a sign of a strengthening housing sector . We bring in the man at the top, doug bauer. Of when we saw the flash i want to say a week and a half ago that you were buying a division of warehouser, i thought this is a gutsy move. What is the number one thing you believe et does for tripoint . Well, liz, thanks for having me on, good to see you again today. You know, this transaction is very transformative for tri pointe. It allows the company and its shareholders to benefit from a larger market capitalization and liquidity standpoint, and so for the shareholders and the tri pointe employees, its very transformative, and were very excited. About this transaction. And moving forward. Liz well, it brings you from about 2,700 lots to 30,000 lots. What is the first thing you need to do to develop those lots . I dont know, as i look at numbers, i think, boy, that grows you exponentially, and thats a big weight on your shoulders or a big challenge or a big excitement. Which one . Its a big excitement, liz. Well own and control nearly 30,000 lots, and whats really great about this opportunity is it provides us a further footprint in california, provides over 16,000 lots which is right in our backyard and expands our footprint in san diego, inland empire and los angeles. But i want to tell you, you know, one of the keys to a transaction in this size is really the people. And when you look at m a transactions of this magnitude, whats really beautiful about this transaction is that the five operating companies for warehouser stay exactly how they are. Those people have their boots on the ground, and nothing changes. And that is so important in putting together a successful merger. Not only do you need the reality, but you need the culture and the people. And were looking forward to working with the entire warehouser group of companies. And theres nobody there are companies that have to look behind their shoulder to see other than future growth, and thats what were excited about is pulling all these companies together under the tri pointe brand. Its going to be a lot of fun. Liz at a time when the Housing Market has stabilized, but i see a lot of poise in the data. Sometimes you get good numbers on existing homes and bad numbers on permits or vice versa. Tell me from where you stand, how does the Housing Market look . Is it continuing to grow at the pace we saw about eight to ten months ago . Well, you know, we definitely saw some rapid pace and pricing in the first six or eight months of this year. And frankly, what were seeing in the markets right now is a very normal, very strong market condition. And as we look at this transformative merger opportunity, we really look at it at the early innings of a recovery. I mean, you look at 2000, late 12 and into 13, this is kind of the first year of the housing recovery, so were really excited about being able to pull these companies together this early and in the cycle. And look forward to having some of those growth opportunities. Its going to be a great opportunity for all the people and all the shareholders involved. Liz we had, hes really a smart market watcher, byron wien or blackstone, they have bought some 30,000 homes as investments. Theyre going to flip them, tough to flip quickly when you have to rebuild or renovate, but what does that say about whos buying the homes . What are you seeing with their class of client . Is it an investor, a family . A firsttime, secondtime home buyer . You know, our buyers are all owneroccupied. We see very little investment activity on the new hom