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rates. we are thestreet.com. >>> stocks are hot but the economy is not. what does it mean for your investments. >>? plans can led, sticker shock anded to a white house official on capitol hill was asked to explain why millions may not be able to keep insurance plans. >>> and one your later, on the anniversary of hurricanesandy, helping homeowners keep heads above water. that and more tonight on "nightly business report" for tuesday, october 29th. >>> good evening everybody and ç welcome. on this day in 1929 the stock market crashed and 20 points meant 12%. today, 84 years later the dow closed at a record high and the s and a 500 and the mid cap 400. call it green tuesday, if you'd like and some economic indicators market pros watch are flashing yellow, maybe even red. more on that in a moment. here for the record are the numbers on wall street today. a day of historical irony as the policy makers convene to discuss the economy and what to do without it. the dow with a last-hour sprint was 111 points and nasdaq gained 12 and s&p add add 10. >>> investors bought up stocks. retail sa
is a competitive market and the concern is if this economy plateaus or doesn't continue growing at the clip it's been growing at, will they have to put more money to goose the sales? >> all right. we'll keep watching. phil, thanks so much. >>> well, it is a new month and on wall street, day one was a good one for stocks. the markets got a big boost from a surprisingly strong read on u.s. manufacturing in october. it rose at the fastest pace in 2.5 years. all major averages avoiding a third consecutive day of loses with stocks rising into the close, the dow up nearly 70 points, nasdaq added two, the s&p 500 was up five. rates on the ten-year treasury note rose steadily all session long closing up at 2.6%. >>> time for the central bank to phaseout the stimulus program. charles plauser said the feds should have begun tapering back at its meeting earlier this week. >> i thought we kind of missed an opportunity to make a small gesture to signal the fact this is a dial we can promove and adt it and fine tune it, if you will. >> he suggested setting a maximum dollar amount instead of sticking to the
bonds because the economy is still not strong enough to generate enough jobs without interest rates staying lower than they might otherwise be. the stock market's retreat and the dow gave up 62 points. the s&p dropped 4.9%, and the nasdaq declined .55% and can clearly be laid right at the fed's feet. that's because until the fed releases the down beat statement crafted after the monthly meeting the average is pretty much even keel and after a moment's hesitation. the sellers -- >> sell, sell, sell. >> overwhelm the market and stocks began to plummet. detailing and explaining a pattern of stock buying and selling that while totally counterintuitive has become the mod us operandi, and i want to game it with me. first, the stock market acts pretty sanguine in the days leading up to the fed meeting largely because we know the economy is too weak to stand up by itself. we know the fed has to continue to buy bonds to keep interest rates low, and they told us that. lower rates allow the companies to buy more aggressively and hopefully from the fed's point of view so they expand operations.
and everybody got paid. earnings a mixed bag with enough treats to balance out the tricks and the economy is okay. >> the economy is still growing at roughly 2%. so i think it's fairly resilient. we would have actually been growing faster. >> reporter: all and all a pretty good recipe for stocks in a month that's turned its reputation for being unfriendly to equity investors. there was october 1929 of course, the market fell more than 20% ushering in the great depression. there was 1987. the dow crashed 23% in a day and in 2008, the dow was down 28% for the month despite the index' biggest one-day gain ever, more than 936 points on october 13th. this year, of course, it's different. record highs for the dow up 3%. the s&p 500 up almost 5%. the russell 2,000 nearly 3% higher and nasdaq with a gain of 4% this month is higher than its been in 13 years. investment trick or treat. >> try not to think about the levels because it scars you. >> i'm getting more nervous. i'm fighting the greedy monos. >> reporter: so what happens from here? that naturally is anybody's guess really. season nalty is
'll see good deals this holiday season but that may not be enough of a good deal for the broader economy. today on twitter and facebook we've been asking you will you spend more or less this holiday season versus last year? jesse said plan to spend half of what we spent last year. didn't budget last year. this year we set the budget in january. anand another sweet, i'm spendig more this year because i finally graduated from college. contact us or leave us a comment at facebook. >>> sales soared in a toy study called kit and caboodle. the reason why has to do with a blockbuster item called the rainbow loom. customers online and in the store will get a 20% discount there is a lot on the line because november and december usually account for 60% of annual sales. joining us now is owner jeannine dobbs. i'm holding two things in my hands, which i think are bracelets. they're from somebody on the staff, and they were made on this loom that you were telling me about. do you happen to have this? ic oh, you have one on your hand. >> i do. is this what we're talking about now? >> is this the hot t
quarter gdp marks the first time the economy has grown for a while. >>> all right. the fed wraps up its two-day meeting this afternoon. central banks announced last month that it wouldn't start tapering purchases just yet. the move comes amid concerns about the budget fight in washington. senator paul wants to hold up janet yellen's nomination. he also wants a bill on transparency. very good morning to you. we're seeing ten-year treasury fall down to around this 2.5% level where we stand at the moment. expectations now for tapering starting in march next year. will yields stay where they were? is there any chance of them going low? >> i think if it becomes apparent tapering won't commence until march, treasury yields could fall a bit further, maybe as low as 2.25%. but with that threat of tapering in the background, it's unlikely they'll fall back to the previous lows we saw in the in the middle of the la year. >> what is the chance that there may be some minutes out saying, look, there is still an argument for a december move? is there any price of that in the market? if there was, wha
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.1%. >> yes. i don't think the euro's strength is every about european economy. it's more about the european similarity with japan. it's five times as big as chinas or japan's. . that's the driver. interest rates and market rates, yes, it's traded 120, 140 for a lot of the last few years. we're at the top end of that rate. >> is there a prospect that we've got -- i've seen this coming up, this q eternity. are we in the land of q eternity? >> it's a fear for a lot of people in the sense that the first attempt at unwinding any qe at all -- >> backed off. >> this is kind of, i don't know, the justification for never giving up, whether it's cigarettes, coffee, or alcohol or whatever it is people don't give up. i'm addicted to this and i'm going to have to keep on going. i think that would be a huge mistake. i think they should have tapered in september. maybe they knew what was going to happen to the politics. they should taper as soon as it's safe, but the only reason for q eternity is if the u.s. economy and the world economy is doomed to a horrible future. i refuse to give into that thought.
in the company's consumer line business. the ceo was on the closing bell yesterday talking about the economy and the broader business environment. >> it was lacking is enough confidence to take risk toes create jobs. i think that's the big issue here. but people are maximizing what they have. they're not doing a lot of new things. so for aig, we continue to grow. we continue to grow across the board, both in the united states and around the world. but it's a matter of our clients are a little bit more cautious. but i don't know that this quarter or next quarter that you'll see any effect on our business materially. >> and stores products retailer container store, they raised $225 million. the ipo was priced at $18 a share, the top end of its increased price range. stairs are set to start trading on the new york stock exchange today under the symbol tcs. >>> microsoft co-founder paul allen's fund is suggesting microsoft spin off its consumer business. this is big news. the man who manages allen's fortune is now suggesting that microsoft search and xbox business res deextracting from the softw
to be because the consumer confidence as far as the boating economy valued at $35 billion a year nationwide is as high as it has been since the great recession bottomed out for boat manufacturers in 2010. we are at the international boat show in fort lauderdale, largest boat show in the world and confidence is extremely high, lot of sales and deals will be happening this weekend. florida has 200 boat manufacturers, more than any other state and deep impact where they build three sizes of go fast boats, they tell me orders are so heavy if you order bonet now from them you can't get it delivered until into next year. demand is that good and their boats are called go best for a good reason. we went with them 72 miles an hour on biscayne bay which i highly recommend for anybody who has the opportunity. >> it is like business is booming, the excitement is that, people are getting confident about what is happening. two or three years ago wasn't happening. people like thinking of spending $400 on a boat, wasn't happening. >> or you can spend $40 million on a jumbo yacht made by westport on the pen
trying to figure out what the market is saying. the federal reserve said the economy is growing moderately. job growth picked up a little built. housing stumbled over the last period since their last meeting. net-net, no change. >> no change. we weren't expecting a change but it's about the data. once again the fed reiterates it's focused on the data. it has been a big day for the markets because going into the fed meeting, not much and all of a sudden we sell off after the meeting. >> both stocks and bonds. >> with rates moving higher. elbattled new health care law, president due to give a speech defending the health care law, you'll see it live in about an hour, and we'll have reaction from two people who had their insurance can delled due to the law. he can win them back? >> starbucks ceo howard schultz with be with us. he's been a big supporter of obama care. we'll get his take on the rollout problems. and then reports on their earnings in about an hour. howard will break down those numbers for us. let's not forget about facebook either. the social media giant will be report
the government shutdown affects the economy. inflation still remains a no show that would give the fed some wiggle room. i also want to talk about a dow component, nike. along with the dow industrials and the s&p earlier this morning. nike shares are up now. they got enough grade from morgan stanley to overweight. so we will continue to check on them throughout the day. back to you. adam: thank you very much. nicole: health and human services secretary kathleen sebelius taking full responsibility of the rollout of obamacare. joining us from capitol hill with more on the secretary's testimony. we are hearing word like she's frustrated, wants to rebuild confidence. what are you seeing and hearing? >> she is the one i should be held responsible for all of this. saying hhs secretary kathleen sebelius is expected back before this committee in december to talk about how many people have actually enrolled in obamacare. right now the administration is not saying because they don't have the numbers. >> i'm not asking about what they enrolled in or whether they came in and said they were 65 and work
terribly illustrative. a lot ofen doing a studying of the united states economy going back to revolutionary times. there were a lot of periods where the economy was very volatile. you were so many booms and busts in the 19th century and so on. the last 25 years, from 1890 to from was very sehgal -- 1990 22 thousand seven, was very stable. 1990 to 2007 was very stable. if you never owned a house you might go from a time when you live alone in a single apartment to where you have to have a roommate back to where you can afford a single apartment and back and forth depending on what is.economy if people lose that resiliency they feel there is no opportunities to get ahead. that is basically what i want to say. journal.comnational -- but he railed along the way -- schedule got derailed on long the way. the senate would tackle a number of nominations. the employee nondiscrimination act and drug legislation -- one clarification, the houses back next week. they will return after the veterans day holiday. sandy is joining us from phoenix, arizona. you say this is not the land of opportunity. why is
a cycle to our economy. we have a cycle to the market. fifth years can give you some nasty things. the fifth year of the 1982 market brought you the crash. we got five years out of the market through '95 to '99, and then we stepped off the curb and we ended in the 2000 dotcom bubble bursting. >> from a practical standpoint, what does that mean? when you say be cautious, what are you saying? are you saying selling into the rally? raising cash? what? >> i'm saying you have to be defensive in your choices here. of your risk money, i think you have to have a very significant amount of it in defensive position. so, what i might do is be looking at value stocks as opposed to growth stocks. i might be looking at midcaple and large cap value stocks. i might be looking at staples, the consumer stams have been leading, but only for about a month. those are traditionally a defensive place to be. >> david, you think we're in a phase where a lot of what's going on is performance-chasing. we've already had great performance in the he cequity markets for the last few years. now people want to ge
. the st. louis fed president james bullard will be speaking about the economy and monetary policy at 11:00 a.m. and chevron reports earnings before the opening bell. we'll hear from cboe holdings and the washington post. berkshire hathaway reports after the close. now, as i engz mentioned, chinese factories continue to pick up their pace in october. both the official and the private sether pmis rose to solid export orders. but there's concern that the recoveries are only being stopped by the large companies as the subindex lagged. joining us is louis core, chief chinese economist at rbs. louis, good to see you. thanks for joining us. are we quite happy about the sustainability and the strength of the chinese economy despite the concerns about the housing market and nonperforming loans of chinese banks? >> well, you know, i think china still is facing many issues, both with regard to the short-term outlook, also all these structural issues. but i think if you look at growth and where are we going in the common quarters, i think that growth will, overall, be enough efficiently above the g
.s. economy. to give away on the margin everything for nothing it's just can't work. connell: let's talk about the economics of it for a second. the conversation we had, in terms of advising the president, and the other for mitt romney. the argument is look at what mitt romney worked on in massachusetts, it works. >> i don't think it does work very well in massachusetts. it is one state with one set of policies. that i don't think makes sense, but at least it is just one state. when you are combining hawaii with alaska. you've got all these diversions and what people want. you cannot make them all happy. that is why the market works so very well, they are transparent, people can design what they want. and people have a right to be wrong. they have a right to not get enough insurance or get too much insurance. dagen: i think people like free better than choice. if you look at "the new york times" today, a large piece of millions of people could get their premiums completely covered if they take the lower-cost plan just by the subsidy. that is a lot of winners for people not having to pay out-of
includes possible loss of principal. dennis: peter: lori: starting the u.s. economy, hyperinflation is the answer, gerald driscoll's on the number one risk to the economy at the fomc kicks off its meeting. neil: below street is the source of strength for stumbling economy. housing, barbara corcoran joins us as august home prices at their strongest annual gain in seven years. lori: the not so jolly holiday shopping out look from analyst rick beamer as retail sales dropped for the first time in six months. adam: a risky bet for lloyd blankfein. an exclusive on what's the bank chief is quietly doing behind-the-scenes. adam: we are in rallying. lori: this head to the floor of the stock exchange to see what is cooking with nicole petallides. we have the s&p 500 hitting another record right now. >> if you are a bull out there, hoping for better and better return, the dow jones industrials up 93 points, covering 50 points away from all time highs, the nasdaq has turned back into the green and the s&p 500 another record day on wall street. traders as high as 1770 looking away from that. and
for the economy to improve and the situation to improve. i don't see it anytime soon. with that being the case sitting here in the s&p futures behind me opening up on a new record high again. stuart: thank you, i'm glad you dealt with that fast. the real action is elsewhere, it's not at the fed, it's on the big board and it's at apple. first of all, the big board. dow jones industrial average opening 11 points higher. 15,580. wait until we get going, you could see a bigger gain than that. apple, profits were lower and they made 7 1/2 billion dollars in 13 weeks. 33.8 million iphones shipped. 14 million ipads and look at the stock in the very, very early going. that thing is up 7 or $8. let me remind you, when those numbers, the profit numbers came out at 4:00 yesterday afternoon. the immediate reaction was the stock went down 15 to $20 per share and that's now been rethought and we're up $8. almost $9 at 538. shah galani is here and liz macdonald is here. first, shah, to you. apple looks like a terrific fourth quarter as they run up to the holiday period. they have he got interesting products.
's critical, obviously, to the fed and to the economy. adp number out this morning, not so great. let's check in with you at the nyse. >> you're absolutely right, and we will get to that but we want to start, ty, with the fireworks on capitol hill as kathleen sebelius goes before the house energy and commerce committee. bertha coombs is on the case on capitol hill. over to you, bertha. >> sue, the hearing lasting more than three and a half hours and members of congress usually a little more def ren shall to a cab meth member but they did hit secretary kathleen sebelius hard on a number of issues. she started out by apologizing and taking responsibility for the website nurse and it's improving every day. clearly there have not been enough but she said none of the contractors who said they raised red flags said the problems warranted delaying the october 1st rollout. when pressed by congresswoman marcia blackburn about some of those critical late decisions that may have contributed to the failures and who made them in her staff sebelius said ultimately the buck stopped with her. >> i'm not poin
concerns the strong ism, good news for the economy, concerns the fed might start tapering as early as december. take a look at interest rate. the ten-year yield has been moving up the last several days. moving up again today as you saw, moved up around 1:00 as we heard news of the shooting. today the market much more defensive tone. you have utilities and health care stocks among the leaders. guys, back to you. >> thank you, bob. we'll be checking back. as we proceed on "closing bell" today. >> certainly an interesting day. we'll be following the developments out of l.a.x. the markets are about to close in about half an hour. with that much time to go, about 15,606 on the dow. the s&p up by just four points. >> much more on the shooting at l.a.x. as we continue our coverage for this friday. ♪ ♪ hey [ male announcer ] when we built the cadillac ats from the ground up, to be the world's best sports sedan... ♪ ...people noticed. ♪ something like a phenomenon, baby ♪ ♪ you're something like a phenomenon ♪ [ male announcer ] the cadillac ats, 2013 north american car of the
. if the economy can get along, you can add 2.6 and get a home mortgage at 4.6 they're not about to give away anything on the bond market. i think that's why rates have stayed, other than when politicians messed things around in the middle of october, we're sitting at 2.6 and i think so the bond market says, we're not going any lower than this. >> we saw a pretty good spike last week. people were worried last week but there's always a cap. >> i think the cap is if this economy can adjust and move homes, which we're not forming households we're off about 300,000 in terms of hos hold formation. if we can get household formation back, we'll see progress. i think rates -- the bond market is saying we're not going anywhere. you can't talk us down any more fed chair. we see the rates coming. we know they're rising. >> what do you think? >> just given where how much rates rose on the threat of taper, that i don't think janet yellen, if she is, in fact elected as fed chair, is going to go anywhere close to pulling back too quickly. she's going to error on the side of being sl
and there was no reason. >> think about what the economy was doing in 1999. the u.s. was coming off a period where we had reasonably strong economic growth, the unemployment rate was probably below 5%. it's not necessarily the behavior of the market necessarily, even though there are signs of consistency, it's more the fact we've still got the unemployment rate up above 7% and there's a sense the economy is just not clicking. >> i think it's poetic, that the money section in "usa today" "is the fed inflating a stock bubble," just as we're finally getting to a tapering -- did you hear plosser today? >> saying he wants to cap the signs of the balance sheet. >> he wants a number on the balance sheet. we're back to that. >> well, look, i don't know. i know too many people who own stocks and they're actually happy that they made money. i can't begrudge them. it's been a great time. the fed wanted the wealth effect to come up. all i can say is what has congress done to help the economy. what has the president done? they can't even build a bridge these guys. >> that's why the fed's the only game in town. >> the
was targeting housing as one of its ways to restart the economy. housing is not working anymore. i understand why they needed to keep it up. i think that the confidence was really hurt by the budget talks. >> the international companies that we trade, not hurt. europe, once again, pmi over in europe, so good, talking about ireland, spain, italy turning. those were the three. >> if portugal turns, holy cow. >> ireland has 5 million people in it. italy is a little more important. remember the big market. >> speaking of the bond market, people still watching the ten-year at 2.6. >> it has been argued if it does go higher, at what point can you say the fed has lost control, in the bond market. >> there was a huge gap, between 3 and 2.5. people expect 2.99. if you watch stocks like home depot, they rallied as rates came back down. that will be my canary in the coal mine if home depot starts going down. the housing stocks have all just floundered here. >> we are going to get there, time warner cable, of course. kellogg out today cutting 7% of their global workforce. >> you know what's a shame? the
economy in the world and she's going to be the chief executive officer for that for heaven's sake. we must hold her accountable. >> yes, but if she were to be fired or step down, you'd have to have a replacement in place very quickly. and that replacement would have to go through hearings in the senate. and i mean, you republicans, you would make hay on that occasion, wouldn't you? that's why i say ms. sebelius is not going to resign and she's not going to be fired. >> first of all, stuart, how can we do any worse? secondly, if the president presented someone who was qualified, had credentials and perhaps came from the private sector, knew something about the marketplace, really understand about human behavior and why people buy insurance and why they don't. i think they would fly through the senate. stuart: that's a big "if" though, if the president nominated somebody who was market oriented. >> true. stuart: congressman, we appreciate you being with us. it's going to be a big week for you and i hope you tell us what happens when you question miss sebelius. always a pleasure. mcdonald's,
's troughing. >> any reflection on the industrial economy? >> you know kleinfeld. alcoa is up $1 since that call. 1.25. told you that trucks were a little bit hurting. eaton, sandy cutler said trucks are troughing. you knee what this makes me feel? makes me feel a little better about caterpillar. a lot of people where the gang couldn't shoot straight, i myself was kit call about it. cummings is a great company. it has a lot to do with mining trucks. mining trucks. but i'm not walking away from cummins, even if they tell me to! it's too great an american company. >> and get a chance to buy it cleaner today. >> all right. we're going to keep an eye on stocks, including what's coming up at the opening bell. ♪ [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate. [ woman ] we are the united states postal
the holidays in between. so it would be really hard for the fed to taper if the economy's not better over year end and we have a new fed chair. so the expectation is we probably won't have any fed activity until the beginning of next year. > >good to know and that segues perfectly into the jobs number which is due out november 8th. are the bonds bracing? > >it's a funny thing. the last time we had the jobs number it was on a tuesday and it was 3 weeks late. now we have the unemployment number and it's a week late. but it's for a month that was weird. we had the government shutdown so in september and october and a little of november we're gonna have economic numbers that have a lot of statistical noise because if it's good or it's bad---and they're probably gonna be bad---people will say it's because the government was closed that slowed the economy down...so we're gonna have a number that's gonna come out, people will look at it, but they'll immediately discount it because it was from a period that was unusual from a historical perspective. > >brian, great to have you on the show with us this
'shers's a look at the dollar. >>> more signs for a growth in china's domestic economy. the october reading came in at 56.3. that was from september's 55.4. but it's not all smooth sailing. the subindex of new orders fell indicating possible weakness ahead. sectors such as real estate and food and drinks also showed contraction. >>> let me tell you what's coming up on today's show. the battle for blackberry comes to an end as the deadline draws closer for potential suitors looking to outbid fairfax financial. we have the latest at 11:30 cet. >>> then the greek government looks to help them achieve a better gdp in the third quarter. we speak to the ceo of the greek hospitality firm. at 10:45 cet. >>> then over to cairo. former egyptian president muhammad goes on trial. -- mohammed morsi goes on trial. >>> ross is meeting with the deputy prime minister of poland to discuss the merits of e.u. membership at 10:20 cet. >>> this is a look at the overall tone across european markets this morning. you can see mostly a sweep of green. just a couple of red bars along the bottom here, but overall we have a
last year's third quarter. on today's earnings quarter, we have dow and merck. as for the economy, we'll be getting industrial production numbers. pending home sales. dallas fed manufacturing survey. also, toyota talking about under the hood, keeping its top spot in auto sales rankings so far this year topping rivals gm and volkswagen. japanese car sales topping 7.4 million vehicles. that's up .1% from a year ago. strong sales in the u.s. offset slowdowns in thailand and china. joe, what's going on in washington? >>> in washington this week the redskins are probably dealing with what was a disappointing -- because they were ahead. they were ahead by two touchdowns right at the beginning of the second half and things went south quickly. so you only saw five minutes of the jets game. >> no, i know what happened. congratulations. >> thank you. i'm not looking for congratulations really. it's been a long time. people are talking about 25 years since the joe montana beat -- when the bengals got -- and i asked my kids to watch. they were watching when carson palmer's knee got blown out on t

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