From several regulators over its activities during the financial crisis. The bank said investigations are moving ahead and could result in some civil charges. Liz demand for u. S. Factory goods rose in june, boosted by higher demand for aircraft. Factory orders gaining 1. 5 . They have now risen four of the past five months. David cbs and Time Warner Cable have until 5 00 p. M. Eastern time that is only an hour from now to find a solution in their fight over transmission fees. A failure to come to an agreement threatens millions of cable subscribers with a cbs blackout. Liz st. Louis fed president bullard suggests that the fed wait for more factors in the economy before tapering the bond buying program. He says caution needs to be taken basing forecans for policy alone. David 7 milliondollar i insidertrading scheme. Sec says the employee repeatedly obtained Earnings Data and traded in advance of its public release. That is a nono. After the bell starts right now. David lets get right to todays action. We have david steinberg, with three ways for to you play the market and Tim Mulholland in the pits of the cme. Tim, i want to start with you. I want to look at gold. Never has the gold price been directly ccnnected to the jobs report as what we saw this morning. We have a figure to put up. As soon as jobs report came out there was positive news. Lets look at a fiveday chart. That he is where you see a spike to the downside a tremendous spike to the downside right as earnings, right as the jobs report came out. There it is. And the reason for that was because at first it was all positive, meaning that the fed would not be printing as much money as it has been printing. Then when they looked at some of the sting cofactors in the jobs report they realized fed would have to keep printing money and price of gold was going to go up. The selloff we had in gold was a unprecedented selloff we saw in the last several months. Is hard to regain its footing. Given the data today the fed socalled tapering is in the future which i think should be ultimately supportive for gold. Gold still held some support levels but i think it is working its way through the bear move we saw in june. Liz tim, we can not ignore what happened today with equities. I mean look at these numbers here, for the dow to end up 30 points is pretty fascinating. The initial shock brought the dow down about 69 points. That to me said, okay it is a disappointment but nobody is that concerned bit. Because it wasnt a mass i sieve drop as you see on the intraday chart. Then to see the relatively steady climb all the way up, this includes the s p 500 too, this really speaks volumes about the strength of this market or is it simply, hey the fed is still in or so we are too . I think latter point, liz. That is what is driving the market. 08 of the rise in the market has been multiple expansion. You need lower rates for the discounting and so forth. David all right. Let me go to david steinberg. David, what are the jobs numbers telling you . The same thing. Youve got systematically anemic job growth and jobs that are being created are not high income jobs. So you dont have an expansion of Discretionary Income overall on per capita basis. David so isnt that a drag on the market eventually, david . At some point that has to be a drag because people wont be spending money, Companies Wont make profits stock prices are down. Eventually if that continues is that bad for the market . On a longterm basis stock prices are driven by earnings and cash flows for those companies. If those companies managements navigate slowly expanding economy by expanding over emerging markets or cutting expenses or repurchasing stock or what have you, they will be all right. They will be more susceptible as your other guest mentioned to higher Interest Rates. The largest bond buyer in the world happens to be the u. S. Government. If they stop easing you will see contraction multiples. Based on Interest Rates in history youre reasonable value for the general stock market. However within the market you have staples at high full valuations and cyclicals at big discounts. Like some stock picks and some of them are miners like rio tinto and freeportmcmoran. These things looked really weak just a couple of months ago. Since you picked them they have been moving up, everything from up to about 11 . So where do you see the change in anything thats really happened for the miners . Well, these Mining Companies are selling at multidecade lows relative to staples companies. Liz right. So if you did analysis you would find going back 40 years you have a tale valuation differential between deep cyclicals and miners. The miners are actually really driven by emerging markets and demand for commodities. Emerging markets have been lower than what might have been expected but theyre still growing. I think these things are finally finding some legs an stability. Most of these companies you mentioned, rio tinto, freeport, they have big dividend yields on them. These dividends will support, they have book value. Hard to replace these mines. You may not like the business, might be a dirty business. Difficult to replace the assets. It is not like paper. David tim, lets look to the one of the most incredible things to me you had a situation yesterday 10year Interest Rates zoomed up, over 5 , one of the biggest one day movement in the 10year rates for a long time, yet the market was up, yet the dow was up triple digits. What happens if we continue to see a rise in rates and we have been over the past couple of months . Isnt that eventually going to drag on the market . Yeah, i think it could but lets keep in mind, we didnt take out the 2. 75 that we set earlier in the month. I think it is how rates are rising. Right now the market can take it because the cyclicals probably are going to see a single leg up in the market but if rates would start to rise because of inflation concerns that would be a whole different game. So i think until we reach that point right david isnt that why rates are rising . Oh, not at all. Think rates are rising more or less, this past month what we learned or june deleveraging. David rates were up tremendously yesterday and that was after the fed report where they said, hey were going to continue doing what were doing. Still within the range though of the so you didnt take out the 2. 75 yield levels. That is technically important. Dont forget the fomc said theyre worried about low inflation, inflation not being high enough. So thats a whole different game. Liz david wanted to get in on that. Go ahead, david. Bonds are overowned. You had a flight to risk aversion going on for four years. There is no return six months. Liz bond not really alive, not talking about treasurys . You wouldnt recommend that, would you . Buying bonds . Liz yeah, to treasurys. Absolutely not. After, any kind of inflation or taxation or what have you, it may sound like a great place to hide but people, dont have memories going back 74, 75, 76, into the 80s when these bonds collapsed due to excess of currency and Monetary Policy changes and so forth. So youve got an overownership position in fixed income. It might just be that guys changed their Asset Allocation that cause ad big runup in the Interest Rates. That could come on for a while. It, youre going to get to some level. I dont know what that level is going to be, which could clearly affect equity prices. I dont think were near that right now. I still think you will see big Asset Allocation at some point from cash being held and bond, florida equities, overtime, if, you can continue to see corporations deliver on good earnings. David hey, tim, i know you dont view inflation as a risk. I know the fed doesnt view it as a risk but i do know people, solid, middle class people say, hey, its a risk to me. Every time i go to the Grocery Store i can buy less. Every time i try to commute into new york city the price of tolls is more, all the City Services is more. Its a risk to my lifestyle. Thats what a lot, millions and millions of americans are now saying, despite the data that the fed keeps churning out. What do you tell those folks . Well, first of all i do think inflations a down the road but right now i think there are two ways. You just mentioned less purchasing power or as they measure it with rise in cpi. I think theres a big difference between those two. For right now until the velocity of money picks up, seeds are embedded. Looking at fed Balance Sheet an money supply. There is no lending going on. Banks are parking money at the fed earning 25 basis points, two trillion. I think when inflation starts we should be careful what they wish for here. You wish for higher inflation. Once inflation gets out of the bag, the fed will have no control whatsoever over bond yields. That is when you have big trouble. The difference between purchasing power and cpi is important for economists but not for a lot of millions of people out there who have to go every day in the Grocery Store to face rising prices. Lets keep them in mind. Guys, thanks a lot. Thank you. Liz tim and david steinberg. Tim well check back in with you in a few minutes to see you the s p futures close. David a disappointing jobs report. It looked good because the overall rate was down but you look into it more people are pulling out after job market that is stubbornly weak. What does this mean for wall street and main street . We have paid den regal senior economist joining us. Liz dell shares getting michael dell boost by 6 . David wow. Liz what does it mean for shareholders . Well talk to don yacktman, of yacktman Asset Management. E he owns 14 million shares. Tim cook of apple his leadership is being questioned again as new competition challenges apple. Is there a new product out there that can save tim cooks job. , itv or iwatch or super gamechanger . Log on to facebook. Com afterthebell. Well read your answers later this hour. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. [ male announcer ] once in a while, everythi falls into perfect harmony. [ engine revs ] and you find yourself in exactly the right place at the right time. Just be sure youre in the right car when it happens. The 2013 cclass sports sedan. Power, performance, and style in total alignment. David poor ol radioshack. It cant get a break. Shares falling today after s p downgraded the companys corporate debt. Lets go back to nicole petallides. She is on the floor of the new york stock exchange. They cant get a break liz radioshack. You say radioshack, good ol little radioshack. We all loved radioshack. You went in there for remote controlled toys or maybe a phone or something. They tried to reinvent themselves as a Telephone Service provider with all kind of cellular phones. That was a big flop. In the meantime, s p downgrading them again, and as a result, the stock tanking, down 11 as they continue to try to shore up some finances and keep this thing afloat. So theres a threemonth chart for you, dave and liz. You see this stock down 11 today, not a good day for those radioshack shareholders. David hang in there, rs were there for you. Thanks a lot, nicole. Have a good weekend. Liz we need to let you know facebook closed for the first time above its ipo price. David wow. Liz we can look right now. 38. 05 took a nickel off the highs, david. Finally closed above the ipo price. David a lot of people have been waiting for that. Liz rock on. S p futures with Tim Mulholland in the pits of the cme. Hi, tim. Hi, liz. Were closing on record high for the week with all the major indexes. These ranges weve seen in the markets the past two weeks have been some. Lowest ranges weve seen in the past five years as far as high to low. Unemployment today, barely have 10point range in the s p 500. So i think what that tells you is, this is feds game right now. Next week will be the feds market, treasury has refunding. Otherwise Economic Data is light. Well continue to watch earnings but continue to move higher as long as the feds in play here, looks like. Liz thats what we were talking about earlier. Tim have a good weekend. Thank you so much. You too. David see you, tim. July jobs report disappointed wall street. Economy added 23,000 fewer jobs than economist expected. Joining me jeff cleveland, payden regal senior economist. Good afternoon, david. David we were talking earlier how gold reacted to the jobs numbers. First they thought it would be a good report so gold went down. And, then they read it and realized it was a bad report because, fewer people getting hired than expected. Two, more people pulling out of the workforce than expected. And three, the work week itself is shrinking. The number of hours, average hours of a work week are shrinking. All those add up in my eyes to a bad report. What about your eyes . I think theres three numbers to keep in mind, david. 212,000. About 2 . And the third number is 7. 3 for the Unemployment Rate. So lets take each of those. The fed needs to see about 212,000 jobs, each and every month. The rest of the year, to get to their Unemployment Rate target. We fell short of that today. So i think the markets initial reaction was right. That the likelihood of tapering, the likelihood of taking away some of that accommodation is pushed back. The second one is that 2 inflation target. You were talking about inflation earlier, segment, david. But i cant find it. Im looking for it. It is not in wage growth. Its not in any of the core measure of inflation. David go to the Grocery Store, jeff. Very simple. Just go to the Grocery Store. Shop for meat or whatever it is. I know some prices are down but most prices generally speaking, weekly grocery bill is going to go up. Its true but i like to look at the cleveland feds measure of inflation. It is a core measure that includes food and energy. It just excludes what are the outlyers in any given month. Even that measure, david, is still up only about 2 very as you year ago. 2 is not disinflation or deflation by any stretch of the imagination but nor is it very, very rapidly increasing inflation. They are not as worried as you are. David lets focus on this for a second. Heres why Ben Bernankes perspective bothers me a little. He said inflation doesnt worry him. Disinflation is a bigger concern. That is what he said this week. That is why the market is enthused he will keep money printing. To my mind, that means he is focused on demand. Focused on people going out and buying, he wants more people, more stimulus, whether it is monetary stimulus or more Government Spending money, he wants, he thinks that will improve the economy. What about supply . What about production . We want a country that is producing more, dont we . Isnt that more important right now than a country that isin mo . This has got to be the biggest flaw out there for macroeconomic thinking. You know, that if we just pump up the demand side, if we just do more monetary stimulus then the economy will be fine. We are nine months into a very unconventional set of policies, qe3 and qe 4, david. And i agree with you, we are stuck with lackluster growth, lackluster job growth and still we havent seen that boost to the economy. But economists havent learned. By and large the orthodoxy of the macroeconomic community is for doing more. I think you see that reflected in markets today, both equities and bond markets. David also lets talk, get back to the labor market because its related to all of this were becoming a nation of parttimers. You that is you look hourly wage per week, it is below 35 hours a week or close to it. A lot of people, obamacare encourages people to hire folks part time. Its not a good thing when people arent encouraged to produce more, whether it is individuals producing more, in their hourly work week, or entrepreneurs producing more at the factory. Thats right. I look into the report that details of the report. Those folks working parttile for economic reasons, that part time for economic reasons, that historically at high level, very difficult sign there. Importantly, people outside of the labor force, david, who would love to have a job that category is still over six million americans which is very high, recently and also on a historic basis. Those tell me that we have a tremendous amount of slack in the economy that is not being put to use and the policies that have been trying to address this problem, david, they just, they have fallen short for four years beyond the end of the recession. David very quickly, jeff. It is not rocket science. You decrease the cost of production. If you want to have more production, you want to grow faster, you lower the cost of production. That means lowering the costs of regulations and lowering taxes. Isnt it that simple . I would like to send to you washington david, so we have lower taxes better regulation, more certainty and more new businesses forming. Im with you. David i grew up in washington. Jeff, thanks for coming in. Nice to see you, david. Liz the latest episode in the long running dell drama has investors actually rushing to buy the stocks but not everyones happy. We asked bigname dell investor donald yacktman, whether he agrees with billionaire carl icahn who says this war is far from over. David americas jobs machinist still not firing on all cylinders as we were just talking even though the Unemployment Rate, the overall rate is down. Former commerce secretary Carlos Gutierrez will tell us what it really will take to get businesses hiring again. Does that make a difference . Search cost of Financial Advisors oh. Over time it really adds up. Then go to etrade and find out how much our advice costs. Spoiler alert its low. Really . Yes, really. Etrade offers Investment Advice and guidance from dedicated, professional financial consultants. Its guidance on your terms, not ours. Thats how our system work