Manager. John halfer ford income trust. Fedex blasting away that Earnings Report leading to a huge rise in the value of that stock. Very shortly well have oracle reporting as well. Dennis will report that. We also have surprise visitors coming in including ron paul by the way toward the end of the hour. Tim, i want to go to you first, if i may, talk about who bernanke, bernanke is always talking about the economy. Always talking about unemployment motivating his decisions but to what extent was the Market Reaction the basis for his decision . That is, do you get a sense bernanke was playing to wall street in his decision today . If i would guess, david, i would guess he is playing to the Housing Market, maybe not so much wall street. Were stockpickers, not fedwatchers, but i think he was really spooked what the backup in rates could be doing to housing because housing has been one of the biggest drivers in the consumer led turn around. I think he was placing to the Housing Market, not so much to wall street. Liz john, he didnt look comfortable playing to anybody. He looked very concerned. I think he is not happy that he couldnt taper. I think he would love to see better data at this point. As he articulated not worried what he sees in rear view but looking forward but another potential debt ceiling battle and a possible government shutdown. How worrisome is that to our investor audience . I think it is things that investors should be concerned about but i heard you use the word punt earlier. Liz yeah. I might rephrase that. Who knew we should take them at their word . They said they wouldnt begin this until the Economic Conditions supported it. And they clearly think they do not as you said, especially looking forward. The other box i think they found themselves in, once they start, they adamantly do not want to be in a position where they go from meeting to meeting, do we continue to taper, do we reverse it, do we start, do we stop. They dont want to be in that position where every single meeting is something where they get questioned. I think the physical conditions, the politics and budget situation clearly is something they want to stay out of the way of. That is the one set of circumstances that could put them in that onoff, onoff position. David of course it is also something that they have no control over but i understand we have earnings. Dennis, go ahead. You know oracle coming in with a upside beat, 59 cents a share, instead of 56 cents that was forecast but the revenue is a tiny miss, excuse me. Wall street wanted 8. 8 8. 48 billion. Revenue coming in 8. 37 billion. That is 110 million miss not big on an 8 billiondollar base. Wall street is punishing revenue misses. Just a quarter ago oracle fell out of bed after disappointing results. People were worried about secular. This is a good rebound from the previous quarter, david. Liz indeed. Dennis, that is interesting to see. There is no real stock reaction. Go to our panel. Interrupt us if you see anything else. Todd horowitz, youre in the pits watching the action, were you as surprised as the equities market appeared to be . Look at indices chart of every major index, dow, nasdaq, russell, some are hitting alltime highs. We were very surprised. The whole plan they would start to taper in here but the Worlds Largest hedge fund they were not going to taper. By reaction in the market they spiked higher. I want to know what happened to the transparency in the transparent fed. They threw a bomb on everybody. They trapped everybody on the short side of the market and out of the market. We had this major explosion to the upside. Where it goes from here i dont know. You reported oracles earnings. Another reason there is no topline growth. We have no growth anywhere yet we continue to support the market. David hold on a second. Im usually with you all the way, todd, in terms of what the fed is doing. I dont like all the money printing. I think it has to stop. They made an exit strategy even more difficult to accomplish by this but, john, the fact that fedex reported today, tremendous earnings. Fedexs stock was up 5 . Fedex is a bellwether for the economy n fact the market watch did a terrific thing. They looked at fedex earnings over the years, tracking it with the economy and with Economic Growth. I know ben bernanke is telling us we were wrong, Economic Growth is slower than we thought it would be but the fact is there are stirrings in this economy, stirrings that are indicated by the success of fedex. I agree 100 . David go ahead. Todd, then john go ahead, todd. I agree on fedex with great earnings but made them by cutting back and cutting back on staff. They did a lot of cost cutting to get to that earnings. We dont have true real growth. Look at u p of the s, mcdonalds, walmart, take the four, one out of performed better. David i get you, but john, fedex stock is growing and fedexs stock is proving it. Large companies, im sorry. David john, go ahead. Large companies that are managed well are doing very well, it is the breadth and depth of the economy. Chairman bernanke did address that during his press conference that is a concern to them. Liz tim david, sorry, i was going to say, liz, you know in this economy the bigger are getting a bit bigger. Having that scale, no matter where you are in the caps speck, small, mid or large, seems to be a big benefit because there is growth out there but its tepid. I think scale really does mater. Listen, i think that your comment at the beginning was, i dont know why were surprised or maybe it was john. I dont know why were surprised that the fed actually kept its word. Ben bernanke is very clear. He doesnt want to start cutting until we see unemployment, not cutting, rather, tapering. Theyre not cutting for a long time i think. Forget that. Thats not happening until unemployment comes down to certain levels which it is not at the moment. Here are the treasury yields. Anybody surprised about this . Tim, what did you think when you saw treasury yields coming down just a bit . No, i wasnt that surprised, liz. If you go back to may when the taper talk started, that is when they started to back up. Now thats off the table, it was pretty swift. But, so was the backup in rates. So im not surprisessed at all. My guess is, if this continues, again in terms of fed Monetary Policy i expect them to continue to liz john, how stark do you think that move was compared when it comes to gold, jumping now 57 in the aftermarket session or at least last look compared to a sort of a slight move down on yields . What message does that send as we spin it forward to investors who say what is the trade, what is the next trade . Again, i trade, we manage and trade bond. I dont manage and trade gold but the behavior of that, particularly as you said, it popped 7 in the last 19 seconds before the close, that smells like a short squeeze. That really sounds like a lot of people were short and they got squeezed post the announcement. David well, todd, we are kind of reluctant to take the fed at their word right now because they gave wrong signals as to whether they were going to taper. A lot of people think they did but they did give us some indication from bernankes question and answer period, he said our intention is to maintain a highly accommodative policy. Now it has become sort of conventional wisdom today since the announcement this might have been a hat tip to janet yellen if she is the person to succeed ben bernanke, that is perhaps the kind of accommodation she would be more likely to do which is much more than ben bernanke as accommodative as he is would be likely to do. So is this just, sort of a presage of what will happen . Are we in line for this kind of accommodative policy for years to come . It looks like it will be for a while. I think the fed is actually panicking here a little bit with what theyre doing keeping this accommodating going. If you look at the real picture, look at jobs, Unemployment Rate is coming down but because the lack of participation in the last 180 days. 77 of the people are underemployed or working part time. So what were really seeing is a number coming down but it is coming down as artificially as money printing is going up. It is really not a good position. So the fed is really trapped into this position where they have to keep printing money to hold wall street up here, where the separation of wall street, is really becomeing a scary fact. A remind me of Lehman Brothers and bear stearns. David one thing definitely has made exit policy a little hardtory find than it was yesterday. We thought we would be a little beyond this today. Tim holland, john donaldson, thanks for coming on. We appreciate your expert commentary. John well check in a few minutes when the s p futures close. Liz just a taper. Global markets are about to give their verdict on it, whatever you want to call it, starting with traders in the asiapacific region. They are hours ahead. Just a moment were taking you live to hong kong and london to find out what it looks like for them and their international playbook. David that should be fascinating. Former congressman and president ial candidate, yep, ron paul the nations most outspoken critic of the fed. He is here live to give us his reaction to todays fed decision. Whether he thinks janet yellen should be the next fed chairman. You dont want to miss this coming up. Liz all that takes us to todays facebook question. We love to have you in on the question of the tapering decision. Do you think the fed took an easy way out or is it so hard for them to make that move. Log on to facebook. Com afterthebell. Well let you know what we think. Dont go away. Lots of breaking news. [ 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. But it doesnt usually work that way with health care. With unitedhealthcare, i get information on quality rated doctors, Treatment Options and cost estimates, so we can ke Better Health decisions. Thats health in numbers. Unitedhealthcare. David shares of adobe are spiking following yesterdays earnings showing steady growth in subscriber base. Nicole from the new york stock exchange. Nicole, theyre doing great. That is exactly what we are talking about right after the bell, you knew adobe would be a real winner. Not only a winner, but up 9 and a quarter percent. But analysts jumped on board. Current quarter was a little below estimates as we discussed yesterday. It was about the number of subscriptions for the cloud and Going Forward for numbers they were providing. Thats why you saw adobe as a real winner hitting new highs today. The obviously a big deal for everybody watching tech. Certainly looking like alltime high. Looking to chart it here. Looking great. I believe it was alltime high. Great move for adobe. 52. 5. Yeartodate up 40 . Liz taking on oracle. David they are indeed. Put it right, nicole, watching after the bell right here, yesterday you knew it beforehand. This would happen. Thanks a lot. Liz got to look at commodities. They saw, pretty massive moves following the feds statement. Gold, oil, surging. David Todd Horowitz is still with us as is sandra smith. Joining us. Sandy, does this mean all commodities get a bump like gold did today. This is highest jump in gold price since 2009. Gold, silver, led the gains as far as commodities today. Oil prices up, 2. 05. Gains across the board. Remember a lot of this is bus the dollar plunged after the fed announcement. There is no other discussion down here on the floor other than were going to have to pay for this eventually. Liz yeah. Bottom line, guys, when we talk about the stock market, yes, everybody in new york and the wall street, they love the stock market rally. Traders here love volatility. They got that today. We had wild swings in commodities, equity futures. Quite a day. Liz what sandra is talking about todd, was pretty much, esther george, lone dissenter, lone hawk, not lonesome dove. Lone dissenter when it came to decision not to taper. Her specific word were she was concerned about the risks of future imbalances. Isnt that, todd, fanssy for saying a bubble . A future imbalance is a bubble, is it not . I agree 100 . I think were in the another big bubble, were being driven now by greed which is always the start of the bubble. It may not pop tomorrow or next week but eventually it has got to pop. Markets have to run true eventually. It has been shown out through every panic in years. 87, 99, 2007, and again here. The green is driving this market right now. When we get the last of the greed in and this cheap money has to top, this bubble has to pop. That is what she is saying. She is right. I think we need to see rates climb a little bit to free up money for the average joe and everybody other than wall street. David greed alone is not bad. Greed and speculation when youre in trouble. That is the question whether were in a speculative era or not. People will be debating between chicago and new york. Liz todd, thank you very much. Sandra, to you too. We appreciate it. David coming up we go around the world to find out how asian and european markets are likely to react to the feds very unexpected decision on the taper today. Liz later our allstar coverage of the fed decision continues with rbss head treasury. You saw bond yields plummet and former chief economist of dallas fed. She is joining us to break down what the fed decision will mean for you and your money in long term. [ woman ] if you have the audacity to believe your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. 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Liz garrett ryan, rui founder and ceo with us live from london. Youre watching futures over there. How do things look like opening of european markets which are several hours away of course . Exactly. So were expecting thursday to be a very positive day for european markets broadly. In fact for asia which opens before then. First thing i would like to say that throughout the summer period, going back as far as may, chairman Ben Bernankes comments has basically led us down a path over the past few months we were expecting going into this fed meeting, we were expecting some kind of a tapering to take place. Liz sure. Regardless how small it would actually be. We didnt get that. Now here we are, kind of wondering where do we go next, because there is no guaranty, especially the language, during todays fed policy statement, there is no guaranty that we actually will get some kind of a tapering before the yearend. December obviously is the next big meeting for the fed. Really this is now looking like 2014 event. Assets should now be focused on, rallying especially equities, during the next three to four months. David garrett, stay with us. Well go even further east than where you are to steve bernstein. Sino pac asia managing director. He joins us on the phone from hong kong. The of course the asian markets are very much likely to open to the upside as we heard from garrett. The question, steve, how will the fed decision affect other Central Banks, particularly ones in asia . I think it will be a bit surprising to the markets. I think theres a lost pressure on the fed from japan and china and other governments basically, saying look, what did you do affects us. David right. So i think its a positive move and i think that will help the market. David are other Central Banks, particular Central Banks of japan and perhaps china do a competitive style move in terms of easing their own policies . The higher their currencies go in relation to the dollar the tougher it is to export what they have. Yeah. I think there is this, there is certainly movement. I think japanese government has been doing a lot. I think they will continue the fact that the fed didnt stop any of the, didnt taper off at all will put pressure on them to be a bit more aggressive. Thats right. Liz garrett, the u. K. Certainly had its own form of quantitative easing and stimulus. But do you get the sense that they will be ahead of us in scaling back . Not particularly. We obviously had a couple of key statements come out of the bank of england over the last few days with regards to policy Going Forward but the bank of englands policy is set aside from the what the Federal Reserve program looks like. The Federal Reserve policy and Quantitative Easing Program weve had remember is the largest weve had in a century. So, yes, the bank of englands policy Going Forward for monetary stimulus matters but more importantly, the Federal Reserve, with the dollar being the key reserve currency of the world, that so us matte