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tv   Closing Bell  CNBC  November 22, 2013 3:00pm-4:01pm EST

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>> light up the original recipe, grandma. it's time to open the gifts. >> it's too easy to cook. this is for people too lazy to go and buy some kfc. forget it. >> burn it at an open house, will you sell that house. >> brian, thank you. julia, lovely to have you. thanks for watching "street signs." have a great weekend. >> "closing bell" is next. hi, everybody, good afternoon. happy friday. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. >> is that all you're going to say? >> that's what i'm going to say. >> that's all she got. i'm bill griffeth. it was dow 16,000 we were watching. today, it could be 1800 on the s&p. we are above that right now. so, we may be setting some records. all kinds of records today, as a matter of fact. here at the new york stock exchange. >> it's true. we are looking at gains for the market as we approach the close here. another record high. bill, i know -- i'm not going to
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keep crying all day. >> we'll get through this. >> a week from black friday, a double dose of retail reality today with two big retail ceos. apparel companying ipo today, up better than 40%. the ceo jill granoff is here with us. >> they left money on the table. >> i tell you. and brendan hoffman will be with us, operating 260 department stores. looking forward to both of these interviews. >> when is it time to cry uncle? bill ackman is down $500 million on his herbalife short position. he's not down yet. we'll ask a top investor when you need to say enough is enough and admit you were wrong. in the markets, let's take a look at wherer with we stand. the dow jones industrial average up 0.25%. we have been trending higher. sitting around the highs of the day. nasdaq composite showing gains. technology doing well with the nasdaq up 20 points.
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at 3990. the s&p 500 looks like this. gain on the session of 7.5 on the standard & poor's. joining us on "closing bell exchange," ann, michael yoshikami, rich peterson, and mike tepper from strategic wealth partners. hi, everybody. good to have you on the program. thanks for joining us. >> thanks marks . >> market at all time highs even though the whole idea of new tapering has entered the conversation. would you put new money to work here? >> i think the market is pretty fairly valued. we have -- we say upside of 10% over the next 12 months. doesn't mean necessarily it's going to get there. i do think there are still some values and we're finding some in the market today. >> rich, the earnings justify the move we're seeing in the stock market here? >> well, the earnings are beating expectations. again, go back to last month when we start easterning season expectations, at 5.6% on the s&p 500. we take out the one sector that
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is showing declines, energy, probably closer to 6%. then you look at earnings for next year. earnings per share basis, about $124 for s&p 500. put a 15 multiple, that puts the s&p to 18, 20 or so. that's reasonable value. i think the fact we had great ride, we're seeing consecutive weeks of increase in the s&p 500. just confidence for earning for 2014. >> so, michael, jump in here. we go to the market once again, record highs. where are the values in this market? >> well, first of all, maria, these flowers are for you. i want you to know you're a good friend -- >> put them up higher, michael. >> a great journalist. and we wish you nothing but the best. >> thank you so much. i appreciate it. >> back to your question. >> i can't believe today is my last day on cnbc. i'm just -- i'm trying to get my head around this. >> we can't believe it either. you know, i think the markets at this point, back to business, i
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think the markets are fairly valued. but i agree with what was just said about a 10% upside in the market. here's the key. if you've got profit right now in the market, you need to started taking some of that profit. we've been doing that. you don't want to let them run forever. take profit, reallocate into position that hasn't gone up as much. that's key. >> mark, yields have been rising but you think that's actually a positive. i mean, a lot of people wring their hands of the stock market and say, when the yields start rising, think that will provide too much competition for equities. you disagree with that, don't you? >> yeah, we do. we think the great rotation of money going out of the bond funds and into stock funds is going to continue for quite some time. you know, we like particularly the financials are very attractive right now. asset managers would be a place we're looking at for our clients. as the money begins to move from bonds into stock funds, obviously, the fees on the stock funds are considerably higher. and profit margins are higher.
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so, we do think -- >> i very much agree on the financials. i think financials right now are very inexpensive. net interest margins have got to improve with interest rates employing up. i think that's a great point. >> i feel like profits have done better than we thought. we went into the fourth quarter on the heels of the shutdown. rich peterson. you know, so many people were saying, well, this is going to -- even larry fink came on the show, largest asset manager and said, we're going into the fourth quarter week or this is going to impact profits. i don't know that we've actually seen evidence of this. >> look at revenues. expectations -- revenues can be weak and poor. 4% for the third quarter. best period for revenue this is year. i think the fact is that you look although the market, look at the economy. we're moving along. even though retailers are reporting sop some ominous signs, whether it be walmart or kohl's. the consumer may be bruised but not down and out. i think the holiday season should do well. the fact, electronics, best buy should do well in this
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environment. i think the fact is, again, look althou at multiples for the market, 15 1/2 times forward 12-month earnings. start of this year we were at 13 1/2 times earning. in terms of a bubble, we're not expansive. things are reasonably valued where we stand. >> ann, i'm going to ask what sounds like a naive question, maybe even a dumb one, but when we talk -- are we overthinking fundamentals when it comes to the stock market? isn't the only thing we need to know right now is that the fed is going to keep quantitative easing coming? >> well, bill, we know it's going to end at some point. it's been going on for an awful long time. i'm kind of looking forward to see what happens when we have to live on our own. and when that happens, hopefully the strength we're seeing in the market today and at the company level, too, that will start to show. we see it. i've been to -- i've been meeting with ceos, numerous traveling over the last month. what i'm hearing is positive. i mean, for the most part. it's a slow growth environment.
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managements are very focused on profit. i think they would get more excited about spending if we kind of -- we knew what the environment would look like once this tapers off. >> mark tepper, what about that? what are you hearing from your clients, mark? are they risk adverse or putting money to work here? >> no, they're putting money to work. we're not overly concerned about the -- about the tapering process right now because we're expecting really what we would call switcharoo. as the fed begins to taper, what we're expecting is for the fed to firm up on the forward guidance part of the equation. and more than likely, lower the unemployment threshold from 6.5% down to 5.5%. so, the net negative effect on the stock market really isn't going to be as significant as some people would expect it to be. we're also expecting earnings growth to reaccelerate next year to somewhere between 8% and 12%, which we've only seen 6% earnings growth since the end of 2011. so, you know, we're looking at some pretty good gains in the market next year. when you throw in a little
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additional multiple expansion, which we think is very possible due to the fact that money continues to move from bonds into stocks, we think next year could be a great year. >> michael, what's the biggest headwind for this market right now in your view? >> obviously, it's what happens with the fed in terms of interest rate policy and what the bond market anticipates that policy is going to be. but i wanted to comment back to what you said, as you put it, a kn naive question, do fundamentals really matter. let's think back to a few bubbles. real estate. do fundamentals matter in real estate in 2007? fundamentals, let's see, did it really matter in 1999? fundamentals always matter eventually. and that's what investors need to recognize. you cannot ride this momentum horse, even if it's run by the federal reserve. and ignore fundamentals because ultimately, cash flow, event actual, long-term cash flow equals share price. if it gets too ahead of itself, you have to be careful.
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we're five years into this bull market. the last two bull markets have lasted how long? guess? five years. >> there you go. i'll tell you what, a lot of nodding heads up here on the set with us at the new york stock exchange. a lot of agreement there. thank you, folks, appreciate it very much. >> see you soon. >> the dow's on track for a seventh straight weekly gain. the best week we've seen in almost three years to january of '11. dominic chu rounding up the stocks making big moves today. >> that's right, bill. let's start off with shares of biogen after they were given multiple scloersz drug patent protection for the next ten years. on the losing side of things, check out shares of ross stores. reported earnings that match wall street estimates but warned of a, quote, intensely competitive pricing environment for the holiday shopping season. intel lower after disappointing wall street at investor day yesterday. forecasted flat sales and margin growth for 2014. the big news of the day in the
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media sector, time warner cable is at the center of more and more deal chatter. cnbc's david faber reporting some comcast shareholders have been asking management to look into a deal to buy time warner cable. on the heels of a wall street journal report which charter communication, backed by jon meloan, is exploring financing possibilities for a deal of its own. stocks of all three companies are active. david faber is doing more digging around this story. we'll be back with more later on. for now, big movers. back over to you. >> heading toward the close, 50 minutes left in the trading session here. the dow up 40 points. record territory. any positive close for the dow is a record. the s&p looks like it could close above 1800 for the first time ever. >> 16,000, 1800, the next thing we'll be talking about nasdaq 5,000. >> let's not get ahead of ourselves. >> what a debut for clothing designer vince. up 40% after the ipo.
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ceo jill granoff lays out her company exclusively on the "closing bell." california's health insurance exchange says you cannot keep your plan even if you like it. they voted against extending canceled health care policies, going against what the president wants. coming up, we'll talk about who will take the blame. the insurers or president obama. stay tuned. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 see opportunities.
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welcome back. the dow is on track to close at record high. s&p getting ready to close above 1800 for the first time ever. these blue chip gains pail in comparison so one of the debuts today. look at vince, up 40%. a designer clothing company. courtney reagan with details. >> it's hard for investors not
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to compare any new high-end retail ipos to michael kors. first day of trading at new york stock exchange under ticker symbol vnc, vince holding corp is exciting wall street with shares up better than 40%. vince shares opened for trade at $29.50 per share. comfortably above that $20 ipo price, which was also above the expected $17 to $19 range. vince holding company's market cap is $1.1 billion. they sell at barney's, bloomingdale's, neiman marcus and saks and their own boutiques. they expect their potential for boutiques to grow to 100 in the u.s. and looking at international expansion. logging a 32% increase in the first half of 2013 following a 23% uptick in 2012. and 7.6% growth in comps in 2011. despite increasing comp tilgs and heavily promotional
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environment, vince expects its q3 margin to expand by more than 1 percentage point. sun capital owns ma joes-h joers of the shares. maria, we'll miss you. >> we're joined with the ceo of vince here at the post. good to see you. >> good to see you, too. >> jill granoff joining us. look at this situation, 40%. have you be feeling great about things right now with this ipo performance. >> we are just thrilled to be here today. it is a huge milestone in the company's history. i think it really recognizes the success we've achieved to date. more importantly, the huge potential that lies ahead. >> you know, you left some money on the table. you could have priced this thing higher, obviously. a 40% gain. that's enormous on an ipo. >> well, the market values the stock in the way it sees fit. >> tell us the growth strategy. we have a lot of excitement about vince, obviously. volume, one of the best specialists on the floor -- doesn't he look great.
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>> i've never seen -- >> and you're wearing vince. >> i've never seen you look this stylish. what's the growth strategy? how do you keep hitting it out of the pashgt? >> we have six key lovers for growth. the first is to introduce mu and compelling products. women love our cashmere sweaters, leather legs, we'll introduce dresses, and footwear, handbags, elevate men's, do kids wear. the second it-s to increase penetration. we've opened some open shots. they're doing well. we feel we'll get better space and location as we expand the assortment. and retail. >> shop in shops. why that strategy? >> i think it showcases the brand in a compelling way. you have brand signage, fixtures, can you create mannequin looks so it's a carved out space -- >> you have to be careful who you partner with in that case, don't you? >> we have really great partners. we sell to premiere department stores. we're sticking with that channel of distribution. they know highway to create environments where women like to shop. >> one of the things we've been
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hearing a lot about this week, and certainly this period going into the holidays is all this discounting going on. where do you see going on? are you expecting we'll see surprises coming down? is this going to be a good story for consumers but a tough story for margins? how do you characterize that? >> i can't give any forward-looking statements. we're in a quiet period today -- >> discounting and the holidays. >> if you have compelling product, i think people will want to buy it. you know, we see a lot of our products are sold at full price today. i think discounting might happen if there's too much inventory. but i think so that if you have compelling product, you know, men and women want to buy, you don't always have to discount. >> the international play, you chose japan first, specifically tokyo. why there? you are already established there, obviously, but why that country to begin with? >> so, japan was the first market we launched internationally. and the japanese customer really loves the brand. i think our modern, sophisticated styling, our neutral color palette, clean
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lines regs resonates. . we've been in the market a long time and we've had success with key department store partners and we've decided to launch our first retail store, which opened just a few weeks ago in tokyo. we just did our first shop in osaka. it's consumer driven where people love the brand. we see that from tourists here as well. >> what a great resume, having been at kenneth cole, estee lauder. how have things changed? >> retail is important because can you optimize your customer interactions. i think the biggest difference is between store and online shopping. obviously, people are so pressed for time so they like to be able to, you know, really navigate the website at night and come into the store, try it on. but i think the biggest difference is really the inte gra integration, especially when i was at victoria's secret running 1,000 stores it wasn't that
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prevalent. >> i hear mobile is the big thing. retailers have to be -- acknowledge customers will be buying things on any device they have. it's tough to do with clothing, though. >> not really. we're very much focused on having consistent customer experience, whether it's in store -- >> but i need to dry it on. i don't know about maria, but have i to try it on before i buy it. michael needed to try that jacket on. >> a lot of women don't have time. they order clothes and they order their shoes. if it doesn't fit, they send it back. >> which is no problem. mobile technology, mobile apps, i mean, are you very knee-deep into using technology to extend the brand? >> we'll be relaunching our website in spring of 2014. that's our first step. we're considering a mobile app. but we'll be relaunching the website first. we'll have enhanced photography, improved navigation, really dynamic recommendations, neighborhood concepts. once we kind of nail that, then
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we'll be able to move on to mobile app. >> great to have you on the program. congratulations. >> thank you. >> what a performance. up 40%. great to have you. thanks very much. >> thanks. >> michael is taking all the blame. >> see you at vince. we'll take a break. 40 minutes left in the trading session. holding onto gains here. dow up 44 points, comfortably above 16,000. s&p up 8. at this point, we may close above 1800 for the first time ever. >> well, think next week will be quiet for the markets. think again. a lot of stuff happening next week. we have what history books say in terms of what the bulls expect next week. also, california, their health exchange is rejecting president obama's reversal to let people keep their plans that don't conform to obama care? is that a good thing or bad thing. both sides of that story coming up. americans take care of business.
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welcome back. white house extending deadline for people to sign up for health care coverage, january 1st. extending another deadline next year that could take some heat off the president's party in the mid terms. bertha coombs with the story. >> reporter: we're at verizon health care center in jersey city. today was the first day they could make it through online with an application. because of the problems we have seen on the federal marketplace, the obama administration today says they'll give people an extra week to sign up for coverage beginning january 1st, extending from december 15th to
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sign up to december 23rd. that will make a tight turn-around for insurers. nonetheless, they think it will give people a lot more time. they say november 30th they expect to have capacity on the federal marketplace. to be at least 800,000 people a day. they'll be able to accommodate that many users a day. they say it won't be a magic moment. they're going to continue to need to make repairs. at the same time, because of the problems this year, the administration is also extending and pushing back the beginning of open enrollment next year by a month to november 15th to give insurers more time to come up with their rates. one industry insiders also notes november 15th is one week after the 2014 midterm elections. maria, back to you. i just want to say, it has been a privilege and a pleasure to be your colleague. >> thank you so much, bertha. right back at you. it's my privilege and honor. i appreciate that. thank you. the board that oversees
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california's health care exchange dealt a blow to the president's promise to american that they could keep their existing health care plan if they chose to. that board voted unanimously against allowing about 900,000 californians who will lose their plan at the year's end to keep them. one of the biggest proponents is dave jones, california state insurance commissioner, joining us from sacramento to explain why. thanks for being on the program. >> great to be with you. >> talk us through this. why was this the wrong decision for those seeking insurance through the california health exchange? >> it's not required by law. the affordable care act does not require existing policies to be canceled by december 31 st and allowing folks to renew would make good on the president's promise. now cover california denied them three months and now they won't have the time to make the right choices for their family. >> the rationale behind their
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vote seems it's too disruptive to extend the deadline, let them keep their coverage. you are one of the most populous state in the country, but you have people signing up right now. you need that risk pool to keep premiums lower as much as possible. why disrupt the whole process and extend coverage for some of those people? >> it won't be disruptive. it's what they were promised. we looked at this question very, very closely. we regulate the sixth largest insurance market in the world. our actuaries and professionals concluded it wouldn't be a problem. in fact, it's actually disingenuous for health insurers to argue it would hurt the exchange, there are all sorts of risk adjustment mechanic niches in the law. risk transfer payments that would offset any potential disruption of the risk pool. finally 400,000 of these folks are eligible for exchange
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subsidies. renewals would give people time they need. >> california have has been planning for months for this law to take effect. what you're describing is valid but those are last-second adjustments that need to be made. those are disruptions that would have to go into place to allow people to keep their plans. when, in fact, if they just sign up for the coverage that's offered by covered california, they may end up with a better plan overall. >> in fact, that's not the case. only about 400,000 of the 1.1 million people being cancel ready eligible for subsidies. most are seeing massive rate increases. the gentlemen who testified yesterday who has a premium of $6 00 a month going to $1,100. he's not getting better benefits but higher out of pocket costs and losing his doctor -- >> i'm -- what we seem to be hearing is that we're not going to please everybody. with obama care.
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you can't have it all ways. you can't have the people extend their coverage, get the risk pool necessary to keep premiums as low as possible and provide coverage to people who can't afford to to begin with. somebody has to be left out. and you seem to be suggesting that it's not acceptable. what i'm suggesting are the fears are overwrought. would he looked at this question. there are mechanisms that offset that. we know these people were promised the opportunity to renew. health insurers are renewing small businesses, so why not to them? it's a disservice. >> the coverage that people want, a lot of the new plans, they're getting things they don't need. if they don't do that and help individuals to avoid catastrophe, financial catastrophe, why is it good policy to allow these plans to continue? >> these are not junk insurance.
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california has very strong coverage mandates in effect. in fact, these plans already provide the additional benefits under the first wave of obama care reform. people are angry because they were promised they could keep their plans. these are adults we're talking about. they can make good decisions for themselves and the promise should have been fulfilled. covered california has just rebuked that promise. >> so now what? >> well, now, unfortunately, 1.1 million californians are being canceled. and i think it's very unfortunate. it's needless. it could have been avoided. they should have been given the opportunity to make that choice for themselves for another year. now they're being canceled. >> all right. we'll leave it there. we'll be watching the developments. thank you very much, sir. appreciate that. >> thank you. >> thank you, dave jones. >> 30 minutes left here in the trading session. hanging onto those gains. dow up 40 points, above 16,000. and the s&p is still up above 1800. >> meanwhile, look at gold. hovering near four-month low tonight. find out if the worst is over for gold or if this metal is
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melting down and it's just the beginning. also ahead, get this, billionaire richard branson is now backing bitcoin. for his space flight venture. but dennis dartman says bitcoins are not legitimate. he warns people against buying them. he'll join us later on the "closing bell." honestly? no way did i think a tablet was gonna be a good deal. you're talking to the guy who hasn't approved a new stapler purchase in three years. but then i saw the new windows tablet, with a real keyboard, usb port, and full office.
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welcome back. mixed market today. s&p 500 and dow on pace to set record highs. dow industrials up 40. commodities feeling the squeeze. let's get to sharon epperson at the nymex. >> it's a mixed picture. natural gas on a tear, at a one-month high. oil prices are mixed. traders are still watching the developments in geneva over iran's nuclear program and western powers speaking to iran about a possible agreement. we're continuing to watch gold prices, gold steadied after falling to a four-month low. we are looking at prices that technically traders say have very little support all the way down to 1200 an ounce. maria and bill, i have to send it back to you. maria, i have to say in addition to all the contributions you've made to cnbc, i will most
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remember everything you've done to improve financial literacy for all ages, for everybody, outside of cnbc on your own time. i know you'll continue to do that. and i really have to say, it's been such a pleasure to work with you. >> thank you, sharon. the honor has been mine. i really appreciate that. sharon, you're the best. thank you. i know you'll continue to soar, sharon. how low will gold go or is this the time to buy? >> let's have a good old fashioned gold debate, shall we? >> shall we? >> jack sees upside on the precious metal while jason thinks we could go lower. gentlemen, welcome. thank you. be nice to each other. jack, what is going to cause the upside? >> you know, bill, what we saw over the course of the last year was asset price inflation. what we're going to see in 2014, what i'm telling customers, look for commodity price inflation. what we are looking at is a situation where central bankers have cut reserves down to the bone. they are devaluing currency left and right. now it's concerted effort. you have got japan in on it.
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you have got europe in on it. they realize the true enemy. that is, disinflationary pressure. look for inflation. look for gold to have a year like stocks had this past year. >> wow. that's a pretty big prediction there. jason, you're bearish on gold. >> yeah. the thing s i don't think there's a way in the universe that gold will have any type of year next year that stock are having. jack, everything you're saying is right. there's going to be currency devaluation. i think commodities do have a chance for going up, except for gold. you can't eat gold. you can't fill your car up with gold. gold -- it just doesn't make sense. i think the bull factor more gold is over. there will be currency devaluation. but i'm going to say a word that's -- you know, the arch enemy of gold bugs' ear. i'm going to say bitcoin. i think bitcoin and gold have a date at 1,000. i think bitcoin will go up to 1,000. i can see gold going down to 1,000. >> if bitcoin goes to 1,000, gold will be at 2,000.
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people like the coin because it's a reserve currency, other than the currency being devalued right now. that's the reason people will be looking at gold over the next course of months. look for people to devalue everything out there except for commodities. it will be the trade for the next year. >> yeah, but it literally makes zero sense what you're saying because gold has gone down this year from 1900 to 1180, while bitcoin has gone up and the equity markets have gone up. this is not a new idea currencies are being devalued. >> look what happened to the stock market. it took a full year -- or a quantitative easing before we saw the fluff in the stock market come into play. it's exactly the same thing with the commodities market. that's why 2013 was the year for asset price inflation. 2014 is going to be the year for commodity price inflation. don't only look at the metals. look at oil, look at the grains. it's going to be a terrific year for commodities. and it's going to be one of these mediocre years for
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equities and i'm one of the biggest bulls you'll find out there. >> you say it's going to be a great year for commodities. don't some of these commodities you're talking about really rely on global economic growth? we know the global economy is not doing that great. it's just sputtering along in many parts of the world. look at europe. look at the u.s. what's the catalyst to keep these commodities going? >> well, maria, two things. one, i think the reforms in china and what they're doing in japan are going to take hold. that's going to be the big surprise over the course of the next few months. more importantly, i think you're going to start to see a turn-around in the numbers. it's the only reason we hear people talking about tapering. there is some improvement out there. you are seeing improvement right now in the housing market. it's one of the reasons we're starting to see cap ex pick up a little bit. technology stocks are starting to show signs of life. all of that tells me we're going to see some kind of surge in commodity prices. but the whole argument about bitcoin, and going back to that, jason, if bitcoin is attractive to people, then gold should be
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even more attractive to people because of the fact it's a reserve currency. >> i don't know how we got into the bitcoin -- >> i don't know where bitcoins came into this. >> i get the idea here. that's a mania waiting to pop any time here. let me go back to gold for a second here, jason. how much lower could you see it going? >> you know, i think sharon in the segment before had mentioned a lot of traders were looking at the $1200 level of support. if gold gets to $1200, which i think it's going to inevitably, i'm looking for it to crash through 2013 lows at 1180. i would not be surprised to see goal tumble to 1100. you might find short-term buying there. the argument gold will have the year next year like stocks are having this year makes no sense to me whatsoever. >> that's why we you had along to take the other side of the trade. >> thank you, guys. >> have a good weekend. 20 minutes before the closing bell sounds for the day and a market mixed to the high. dow industrials getting better, 46 points as we approach the
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close. a new study that finds banks get a failing grade on financial education for their customers. kayla will have that story when we come back. also ahead, stocks on track to close at all-time highs but still warning signs that could end the party. we have it coming up on "closing bell." 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 normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur.
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dow well above 16,000 now. the s&p is up 8 points at 1804. we could close with record high. look at the nasdaq, all of a sudden up 21 points and at 39.90. we're ten points away from 4,000. could happen today. >> it could happen today. >> how quitting would that be? >> three round numbers. you know, 5,000 is the all-time high. but that's back in the '90s and dotcom. i wonder what people will say about 4,000 on the nasdaq and whether or not it's looking at bubble material? >> that's been the real sleeper, that's for sure. a new study finds that banks are -- you want me to go over here? banks are failing to play a more active role in the financial awareness of their customers. kayla has details on that. >> that study commissioned over a year ago by consumer financial protection bure refound for
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every $1 spent on financial literacy, they spend $25 on their own branding. that's $17 billion in commercials, billboards, signage and promotional materials. the cfpb found out they spent $30 million on direct to consumer education. credit cards nabbing 7 seven times more of advertising budget. that's not even accounting $2.4 billion spent on this drifk mail, and more times than not spend it in the cash. rich cordray says the majority of information consumers receive about financial products comes from a company trying to sell them something. the only banks that does it is bank of america, with bank programs viewed as biased. they say schools must play a bigger role in financial education. as always, consumers must do
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their homework. back to you. maria back to you for the last time and best wishes. >> thank you so much, kayla. we'll see you later. >> are you going anywhere? >> last day on cnbc. very emotional. >> i had no idea. 15 minutes in the trading session. dow up 47 points, above 16,000. s&p above 1800. let's keep an eye on the nasdaq, folks. >> we are on record high watch as dow and s&p close in unchartered territory. coming up, we'll hear from somebody who says this market has plenty of room to rally. tdd#: 1-800-345-2550 trading inspires your life.
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not a bad market today. up another 50 point. record territory once again. >> we just highlighted the nasdaq is only ten points away from 4,000, which we haven't seen since september 2000. dave is here with us and mary thompson's on the floor of the exchange for us. what a sneaky market this is. >> it doesn't have any -- show any signs of stopping right now. you know, very strong inflows now into u.s. equity funds which i think is a big positive. everyone's watching the yield on the ten-year. that could be a brief disrupter and could also signal the economy is getting better and that would be another catalyst
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for the markets. >> dave, you putting new money to work here? >> absolutely. i think we're seeing the effects of the $85 billion coming from the fed. i think there's room to move up. >> where? >> u.s. markets for sure. i think you know i've been bullish on emerging markets. emerging markets are cleep, international stocks are cheap and commodities as well. >> you're not concerned about the taper in the emerging markets? >> well, i mean, there's no sign of the what they're doing with respect to taper, even if they bring it down by $10 billion a month, there's still a lot of money. >> we talk about these all-time highs but the markets are bumping along for a while. what we're hearing a lot more now is not so much, yes, can you throw a dart at a sector and watch it go higher. now analysts are being a little more selective.
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>> i think you always have to be looking for undervalued or cheap asseted. you can't just throw stuff at the wall. have you to pick your spots and know the things undervalued. clearly, there are areas of the market, particularly outside of the u.s. -- >> that's talk about outside of the u.s. japan with a new economic plan, emerging markets seeing outflows all year. and now talk that europe has bottomed. where do you want to allocate capital? >> i would look at china and brazil. emerging markets are some of the cheapest out there right now. when you think about the world will look like 20 years from now, u.s. will probably be the biggest economy still but china, brazil, india, russia will be some of the biggest economies. right now trading at 12 times earnings. that's cheap. undervalued. >> sounds like what we were talking about five years ago, doesn't it? >> we had that interruption -- >> what are you suggesting? are we going to see a repeat after that? >> we'll see how long it goes.
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>> not to the extent we'll see where things collapse. but the disruptive themes -- >> you think about 2008, pes were at 20, 21. right now they're at 17. the market's arguably 25% cheaper than it was then. and there's all this money going into the markets. it's a little different market -- >> just the themes. the markets are different but themes continue to be the same ones. >> mary, good to talk with you. thank you so much. see you later. >> thanks for having us. >> take a break. we'll come back with the cloetsing countdown for a record friday. >> after the bell we're taking the pulse of the holiday shopping season when we speak exclusively to the ceo of bon ton. on the need to fix our broken immigration system, there are signs both political parties in washington get it: washington is lagging behind the country on this... ...this issue has been around far too long...
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♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. six minutes left for the closing bell. she's going to be all business here. you can tell. has it hit you yet? >> yeah, it's been hitting me all day. it's sad. >> if it didn't hit when you you walk on the floor of the exchange today, it's not going to hit you. >> what happened when i walk on the floor of the new york stock exchange was unbelievable. all the traders clapping, wishing me well. >> there's a long tradition on the floor of the exchange to have a clap-on or clap-off -- >> for the members, for the
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members. >> usually reserved for the members. but some people are special. >> you know, bill, have i to tell you. i have a lot of friends, and i love you dearly at cnbc, but the guys on the floor of the new york stock exchange have been my family for so many years. i will never forget how they warmly welcomed me 20 years ago here. and just educated me, helped me. brought me along. i love all of you. not just the traders and specialists, but the security guards -- there are so many friends i have here. i'm going to miss them so much. >> i have been here three years now. i concur completely. it is a unique group of people that work here at the new york stock exchange. ly say, when i came back from my sabbatical three years ago and trying to figure out what i was going to do and offered me the opportunity to work with you -- we were friends for 20 years but we never had an opportunity to work together. so for me, this has been such a blast. i had such a good time. we had so many incredible stories over the last three years. >> bill, you have been such an
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unbelievable partner. i wanted to thank you for your support and friendship. it's been an honor and privilege to sit next to you for the next three years. >> my concern is, who's going to give me your daily mint. here's your own supply. >> he always has them. thank you. >> now, before we bring david darst in, i had the gang make a chart to show the stock in your 20 years. >> there you go. >> you're going to take the blame for that, are you? david darst of morgan stanley wealth management. >> hi, david, my dear friend. >> you're more weepier eyed than she is. >> your fans, she's more beautiful in person, you've asked me this question, than on television. >> so are you, by the way. >> she's is wonderful to her
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staff. she follows john wesley's rule, you want to basically do all the good you can in all the ways you can, in all the means you can, in all the places can you, to all the people can for efrl as long as you can. that's you, maria. >> thank you so much. i'm coming back, you know. i'm not going to far. i'll be back soon. >> do you like the market here? >> we like the market here. >> open -- >> we're ten points away from nasdaq 10,000. >> we've been saying all year, it wants to lift, it wants to move higher. that's a great sendoff to maria. but with god. the market is in a go with god mode right now. >> melt-up into year end? >> basically looks that way. >> even if interest rates continue higher, long yields continue to inch higher and the stock market is still going up? >> it's up 100 base points it's at 275 right now.
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the fed said we're going to anchor down that short end and basically -- we're going to wait until the inflation starts to pick up before we really back away meaningfully. i think people might have missed that part of the statement. everyone focuses on the unemployment part of it. so, this basically means tapering is not the same as tightening. >> if this keeps up, we'll see the great rotation. as the market goes higher, peel will say, i'm losing money in bonds, got to get into stocks. it's plausible the melt-up will continue. >> i'm going to get ready for. >> one small step for mankind. >> thank you. bill, i love you. i love you. >> a rule, you're never supposed to touch your fellow anchor. >> sorry, sorry. >> we'll take that. >> see you next hour. >> come here. you're not done yet. you like intel? we have to move on with business here. >> we like intel, japan, apple.
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this week we added another 2% to europe, 3% to the united states and 1% to japan. we still like the equity sector. over the past year, as you know, we've taken about 15% out of bond. we would say to all viewers, pay attention to the bond part of your portfolio. stay with shorter matury bonds. don't worry about getting too long on maturity because when interest rates start to rise, that 1% rise, bill, has cost you 10% in capital loss this year. >> when do you think the tapering begins? what's your firm's feeling? >> morgan stanley's view, even though there's a rising chance it could be december -- 40% chance, our best case is for march, believe it or not. >> that would be the first meeting for janet yellen as chair. >> that's correct. >> you think she would hit the ground running at that point? >> yes. we wish her well. hope she gets confirmed. wish her much success. it will be very, very good under her leadership. >> talking about janet yellen.
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i thought you were talking about maria. >> i meant both. >> thank you very much, my friend, david darst. the dow up 54, record high. the nasdaq -- s&p above 1800 for the first time and nasdaq ten points from 10,000. the last time, the second hour of the "closing bell" with maria bartiromo. have a good weekend. >> there is no stopping this rally! the dow and the s&p 500 closing at all-time highs once again. hi, everybody, it's 4:00 on wall street. do you know where your money is? welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange on a record-setting friday. take a look at the numbers. dow jones industrial finishing with a gain of 5 3 points, and all-time high market down 16,063 and change on the dow. the nasdaq up 22 points. s&p 500 also at an all-time high. finishing above 1800 at 1804. never seen t a


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