again on the s&p this morning. we have pulled back from that just a little bit. the dow is also to the downside along with the nasdaq. we have dow transports at record highs, nasdaq at 13-year highs. we're defying gravity as far as the stock market is concerned. thanks for watching "street signs." "closing bell" is coming up next. see you tomorrow. >> happy monday. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. any move hide higher for the s&p 500 would be a new all-time high. we reached new intraday earlier. >> it's the dow that's been the laggard. down another 28 points today. we're watching the markets along with these stories. how about $13 billion settlement for jpmorgan. that doesn't even make all their problems go away. we will hear from a former bank

of america executive who says jpmorgan and jamie dimon are being punished for helping to save the financial industry during the crisis. and then we'll get reaction from former congressman barney frank after the lead op-ed piece in "the wall street journal" this morning said that barney frank should be arrested before any bank ceo. when it comes to this crisis. of course, mr. frank will respond to that in only the way he can. >> i'm looking forward to him coming on and responding to it because people want to know why regulators were asleep at the wheel while all of this was going down. >> was it a health care law pep rally? many more questions than answers as to why obama care websites remain frustratingly slow. no one know to be held accountable, as well as kathleen sebelius, secretary of health and human services. >> this is really the hot-button

issue right now. many furloughed federal workers who received unemployment checks during the shutdown will be able to keep that money even though they're getting all of their back pay at the same sometime. there are those who are thinking, only in america, right? >> and it feels like a little secret pay increase was also jammed in there when they a -- when they decided on the debt ceiling for federal workers. a little increase in pay also. >> one person supporting, one person against that. i tweeted this out a little while ago and got a tremendous response. we'll talk about that coming up. >> also looking to the markets as we approach the final stretch for monday. the dow jones industrial pulling back just a hair. down 28 points on the session. fractional move there at 15,371. nasdaq also pulling back. down a fraction here. 3911. this could go either way as well as the s&p 500. fraction appear loss on the standard & poor's but any move

higher will be fractional gain. >> jason pride, kimberly and autser author of "wealth by design" and bob pisani. i guess the numbers are still being calculated in terms of what kind of economic impact the shutdown had. standard & poor's, 0.7%. is that going to show up in revenue and gdp? >> certainly. but it's yesterday's news. >> everybody's expecting it? >> always. it's the outlook that matters, not thor are view. >> you like this market still? slowdown in the economy, tapering from the fed and you're still buying this market, even though it's at all-time highs now. >> it's not in all-time highs in valuation. the fed won't stop tapering. you have reasonable valuation at

15 times forward earnings, earnings still coming through. have you to be willing to be unpredictable about the short term and always willing to give up 5 %. >> let's talk about that valuation jash valuation, jason. would you put new money to work in this market? what are we talking about, 15 times earnings to the s&p? >> your other guest has this approximately right. we think we're at about 15, 16 times normalized earnings. that's a reasonably fair valuation for the equity market. definitely more fair and more favorable than the multiples or valuations they're getting in fixed income markets. it's worth while to be putting money to work. having said that, we're on the, let's be constructive but not aggressive viewpoint for the markets. we're still in a slower growth environment. earnings are not running along very robustly. we think you have to pick your spots here. u.s. market arguably, we think as actually a little ahead of fair value. internationally, there's some interesting deals in developed markets still.

and if you're willing to go there, emerging markets are at a fairly significant discount. >> kimberly, break the tie for us. one person who's buying stocks pretty happily and the other who's cautious right now. where do you stand? >> you know, i have to agree with the other two gentlemen. we are in the camp of take profit but the hogs get slaughtered. completely globally diversified in 4 4 different countries and 15,000 different stocks. right now this market is poised to go higher. no real headwinds out there. the political ping pong in washington is over. the market in my opinion has the positive trajectory to the upwards area. >> government shutdown is leading a lot of people to say tapering is off the table in 2013, could be off the table in much of 2014. larry fink telling us last week, he's not expecting tapering until june -- march, or even june. is that where you stand, you think it's off the table?

>> i think it's off the table. i don't think the fed wants any reaction from the economy when it does it. it's going to be that simple. >> bob pisani, it will be a busy week for earnings. unemployment tomorrow, bar ca lounger and popcorn ready for that one. >> we've had phillips with lighting doing very well, s.a.p. doing well in europe, relieving some concerns about ibm, hasbro is at historic high, lennox, heating and air conditioning, highs. you assume we're at 15 times forward earnings, we go from $108, $109 to s&p, go to 120, times 15, we're at 1740 at the s&p now. >> i did the calculations off the consensus numbers. i think we can have bottoms-up consensus of 125 by the end of

next year. >> 125? >> that's 4 or 5% increase now. you're at 2,000 on the s&p. it's a big number with modest -- earnings are squarely how you measure -- >> can you argue for a multiple expansion? can we say it should be 16 times forward earn sngz. >> i think it should. earnings keep coming through. the market has been waiting for a correction. the longest it doesn't happen oral longer things have little pop since the big explosion, longer until there's some capitulation. >> jason, you feel like we're fairly if not overvalued right now. what would cause you to come back to the valuations you're seeking? beginning of tapering or what do you think will happen here? >> we're not expecting valuations to go down in any sort of sudden fashion. in fact, we would expect fundamentals to eventually catch up with valuations. i want to make a couple comments from what i heard a second ago. first of all, this comment that earnings will rise, earnings

expectations are going to rise from here. historically that's not true. historically analyst estimates start higher and gradually come down over the time frame. second thing i want to point out, somebody said that the federal reserve's not going to come in and do any tapering any time in the near future and even into 2014. i think that might be a mistake to assume that reasoning. in the meantime, they were close to doing it before. >> i'm sorry? >> i think earnings numbers do go down. they have been coming down for 2013, 2014. as we go forward in time, we go closer to far out number. i know they go down year by year but that doesn't affected what we're looking at over the next 12 months. >> but in terms of, you know, the economy weakening as a result of the uncertainty and people being nervous, because of the government shutdown, now tapering off the table, is it going to hit the corporate sector? i understand you're saying the estimates are that we may have just a mediocre quarter, but i

think earnings and revenue are expected to get impacted by the government shutdown. that two weeks of -- >> it's not recurring. it is something in the past. it's something unique. something republicans said they won't do again. if you factor into it, yes, it has a one-time impact. i don't deny that. we had a couple bad days. but i still want more than i have right now and i think most americans do, too. people are waiting for the thing to unwind and i think that's what's happening. >> thank you for your thoughts on the market today. see you later, bob. >> i want to get a check on the big movers. dominic chu with the rundown on that angle. >> we're going to begin with apple because french bank societe generale upgraded it for the 5s and 5c models. shares up. tesla fell on reports that the electric carmakers' sales may be slowing in germany. european sales a big concern for that company. also general electric up for the second consecutive session at fresh five-year highs.

citigroup added the stock to its focus list, calling it the third quarter earnings they just reported, quote/unquote, impressive. on friday ge reported a record backlog of sales and orders. also goodsyear deflating, if you will, deutsche bank downgrading the tire company from neutral to buy with price target of $26 on the stock citing uncertain margin outlook. finally, it's gannett media company, declining ad sales at some of its big newspapers. bill, gannett shares on the move. back over to you. >> thank you very much. heading to the close here with 50 minutes left in the trading session, not a very volatile day. and the dow -- and the s&p is lower but any positive close for that one would be another new all-time high right now. >> post shutdown outrage. some federal workers who were furloughed will collect back pay and be able to collect unemployment checks they

collected during the shutdown. it's called double-dipping but it's on the taxpayers' dime. is that right? >> both sides coming up. jpmorgan's ceo jamie dimon agreeing to pay $13 million to settle civil charges against the bank. criminal could still be to come. a wall street journal op-ed this morning says the real perpetrators sh should be the one's in the government cross-hairs, barney frank and others, that blocked fannie and freddie, even saying he should be arrested. we have barney frank joining us. as you can imagine, he's not that happy about the op-ed piece in the journal. he'll be with us to respond, as only he can. >> and hip-hop mogul sean combs debuting revolt. he wants to fill the void mtv left when they stopped playing video. s mtv did it for a reason. why does diddy think he can make it work?

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new all federal workers who were furloughed during the federal government shutdown will receive their back pay, voted on by congress. many of those workers will also be able to keep unemployment checks they received during those two weeks and american taxpayers will be footing the bill in both cases. hampton pearson looks at how this is possible. >> it's up to the individual states to decide but they're also waiting on guidance from the federal government. here's the core of the problem. as you mentioned, the bill signed by the president to reopen the government clearly says the estimated 400,000 furloughed federal workers are entitled to fullback pay for the 16-day partial shutdown but there's no language in the

legislation that deals with the possible double dipping or giving back any unemployment benefits. the state of alabama, for example, is telling federal workers who got those unemployment benefits during the shutdown, they're on the hook to pay back the state. that's based on guidance from the office of personnel management issued late friday. those opm guidelines say, because congress signed off on the back pay, it's up to the government agencies to help find out what staff may, in fact, have filed unemployment claims in their states while out of work. then it's up to the states to recover any overpayments, including sending out notices to return the benefits where applicable. we talked to an expert on unemployment compensation at the state level. he says double-dipping by furloughed federal workers will not be widespread. >> as far as alarmist or concern that all furloughed federal workers received benefits and are double-dipping, that's not the case because not all those that filed or those that did

file did not certify each week. when it gets back to the -- the program is not a federal program states administer. it's a federal state partnership. >> the labor department also plans to issue its guidelines for the state later this week. we're all familiar with that figure of an estimated $24 billion in government productivity that was lost because of the shutdown. bill and maria? >> thank you so much. you heard right. some of those furloughed workers will receive double compensation from taxpayers. should they the pay back unemployment benefits? >> we have "post" magazine kathy arroyo with us, while diana could not disagree more. why do you think so? >> people believe they received

a full 16-day pay. i believe the max was $450 so it wasn't the entire back pay. it was a small amount of money. and it really is a small number of people. and if you think about the hardship and what these people went through, they didn't know how long they would be without pay, they were living week to week, they really sometimes depend on their paychecks. these people needed to make their payments. they were living in fear they weren't going to get paid. >> but they did get paid. >> they were living in fear -- >> a lot of people that had hardships during that two-week period, not just federal workers. >> we're not talking people scamming of millions of dollars. the max is $450. if anything is a government stimulus to buy tvs and make more work for people. >> you disagree. >> just because it's a small amount of money, $450, that's a large amount to me. i quite understand these federal workers needed to get that unemployment insurance while they were on furlough because

they needed to pay their bills. but now they're going to have a check covering all the period that they were off. and this is the time where the states can pull back on those unemployment insurance payments. states have the right to do that. it comes out of a trust fund. and if they don't do that, it means other employers and other workers have to pay more to make that unemployment insurance trust fund whole again. >> what about those other employees, kathy, i mean, isn't this a drag on the taxpayer? somebody's got to foot the bill, right? >> a drag on the taxpayer doesn't mean -- >> this is for kathy. this is for kathy. go ahead. >> i mean, mitch mcconnell has a kentucky kickback. no one is complaining about the $3 million he made off this bill. we're picking on the small guy again. this is a small guy. we're talking bz 450. it's not much money when you see how much money is being wasted in washington. we should stop picking on the little guy. these people should be compensated -- >> it's not picking on the

little guy. they're getting their full paycheck back. they got two weeks' vacation. and now you're saying they should be stealing from employers and existing workers by not giving the money back? >> were they not -- >> are you upset about the concept of the double-dip or the fact that this is taxpayer money we're talking about? >> first of all, when you say it's taxpayer money, each state has an unemployment insurance tax trust fund. >> which they pay -- >> let her answer, kathy. >> it comes out of the trust fund, so it comes from employers' payments on existing workers. so it comes from existing workers. so, first of all, i think it's troublesome that someone who gets their entire paycheck back should not give back that unemployment insurance. and, second, it means that existing employees have to pay more. there's no reason existing employees should have to pay more for federal government workers who, when you count their salaries, pensions, benefits, job security, their

vacation, get more than private sector workers. >> what about that, kathy? >> these workers paid into that. they paid for their unemployment benefits. if anything, they have already paid in case they would be unemployed and they were laid off for those 16 days. >> they got their money back again. >> but they did not -- >> when they get their money back -- >> they get get the full amount. >> they were charged interest on car payments they had to delay. so, if anything, they are given money they may have had to pay out of pocket for interest. if anything, the government's paying them their interest back. they suffered and they're given a little money to help them through. >> a lot of companies gave them a break on payments because they said they were government workers. >> oh, yeah. >> and it's not fair to existing workers that they should have to pay more because overpaid federal government workers don't want to give back their unemployment insurance. it makes no sense. >> you know, i will say that the majority of the tweets that are coming in on my account that are

against this are saying the government should not have voted for back pay to begin with. i mean, let them keep the unemployment because they were off, the way a furloughed worker for general motors is when they stop production on a car, whatever that may be, but they should not have been given back pay on this government shutdown, kathy. what do you think? >> not everyone received unemployment. we're talking a very small amount. about 40 0,000 people were not paid -- >> but they could have. >> they could -- if they chose to apply. >> many people did not, so we're talking about, i think, about 120 0, 1300 people did receive back pay. it wasn't the first week ort third week. it was just one week of pay. so, a very small amount of people and a very small amount of money was given to these people. >> you keep saying a small amount of money, but you're not -- you're talking about $450 for how many people, kathy? >> well, it looks like 1200 people at the moment. that's what it looks like. >> just because it's a small amount doesn't mean they shouldn't give it back. either they have it, honestly, or they don't have it. either they're entitled to it or

not. if they're entitled to it, they should keep it. if not, they should give it back. >> they are entitled to it. it's legal. >> it is not legal. >> it is legal. >> it is legal. >> each state will make up its own regulations. some states are going to call the money back. some states are not going to call the money back. >> right. >> this is not illegal. >> that's correct. >> they're not scamming the system. these are people -- >> well -- >> -- people on the up and up, so we should not -- >> the ones who are keeping it, even though the states call it back, then, yes, they will be scamming the system. >> that assumes they decide to. >> they have an obligation -- -- right. >> boosts economies in the places they live. >> if the federal government gave me $450, i could go shopping and boost the economy, too. i'd be happy to do that. >> it's called a tax rebate. >> that's the same argument you would put toward companies and making a lot of money. they're going to pay their employees and they're going to go back. and, you know, there's a defense against that because it's big

business. you can't win here. >> thank you both for your thoughts today. certainly a hot button issue, that's for sure. >> 35 minutes before the closing bell sounds on wall street. a market down a fraction, nine points on the dow. >> numbers do not lie. apple has been losing tablet market share. in fact, most tablet users are not using an ipad these days. a big apple event on tap tomorrow that is expected to be about the ipad. all eyes will be watching to see what the tech giant has up its sleeve. we'll talk about that next. >> take a look at this chart. netflix shares up more than 270% this year. can the company's earnings after the bell send that stock even higher? we have instant analysis and reaction on netflix's quarter coming up on "closing bell." [ male announcer ] it is more than just a new car...

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than any other behind the counter liquid gel. oh what a relief it is. apple is expected to unveil a new ipad at a big event tomorrow. comes as apple is losing some share in the tablet wars. let's get to jon fortt with a preview of the big event tomorrow. >> we have to make a distinction between market share and profit share. yes, apple is losing market share in tablets because apple

is doing something a lot of tablet makers aren't -- making money. according to pacific coast securities, apple is expected to have 50% of the tablet with samsung, small players with google, amazon and microsoft making up the rest. it's hard to know if that's correct because apple is the only major tablet maker that breaks out tablet united sales and revenue. one thing to keep in mind, one apple selling price for ipad was $437, nearly twice what competitors get with smaller tablets. also, the first ipad holiday season that will come with a year's worth of pent-up demand with the brand new ipad. apple unveiled three versions last year, one in the spring and two in the fall. we'll see what the market share picture looks like and the profit share, perhaps, when apple reports numbers in january, guys. back to you. >> thank you, jon. what else can we expect from the big apple event? whatever it s our next guest says the tablet market share is not the company's only problem.

>> joining us is todd hazelton and todd wilhelm from tech crunch. >> tomorrow i think we'll see the ipad 5, the ipad mini 2, and it better come with retina display. i'd like to see them, enter lower price tablet market. i think that could be a great strategy keeping the old ipad mini at $229 price point. >> we're not going to see that. >> do you really think apple will release the current ipad mini at $229? >> i think it's a smart play for apple. >> that price -- >> the business -- >> what is apple going to do? china? >> they're going to sell the mini at $349. >> it's overpriced. everybody is outpricing apple in the market, the list goes on. apple needs to drop the price and play competitively in markets where there's growth. >> it will be a fundamental revolution 6 their business

model. apple sells products at high margins. if you want them to do that, that's fine but it's not part of their dna. >> it's a high margin, year old parts coming in cheaper than last year. >> when the ipod came out, there were very few competitors that ate into their market, so they were very dominant early on. then when the iphone came out, it was sort of the same story, even though that was a more crowded market. with the tablet, the ipad, a lot of competitors have come at them and eaten into that market share. alex, why is that? >> because apple made a lot of money doing it. whenever you make a lot of money people want to follow along. as the opening segment pointed out the average apple ipad sale price is quite high compared to the market. they commend high prices because of their brand and quality. when we talk unit volume, we're comparing two very, very different things. >> what do you feel apple has to do in terms of the challenges? >> i want to see them take advantage of the 64-bit processor, it's in the iphone 5s. in the new ipad 5. i think that's because it's a

desk-top quality processor we're seeing convergence between desktop and mobile. not later, not this year, but down the road we could move to dual bootingings full operating system that you carry with you as a mobile. >> don't be the expect that steve jobs ran? >> right. i mean, have you to switch it up, as landscape changes. market so microsoft is failing with the surface. >> and microsoft is coming out with a bunch of new products as well. >> we'll see that in nokia. >> the average price sells for $239. it's not a big jump between the two models. >> we just have to see the surface 2 performing. nobody's buying it. >> we don't know how it's -- >> but the brand name is ruined from the original surface. microsoft took a $2 billion bath on that. convince consumers that windows 8 is good now with windows 8.1. i don't see it happening. i don't see any reason -- >> i think it's far too early to

say the service line is doomed. there's a lot of stuff going on there. >> i'll go on the record saying surface line is doomed. >> we have to get you guys together for lunch some time. you're pretty good. letting you go at it. thank you pp, gentlemen. >> an argument about the tablet wars. i love that. right now we've got about 30 minutes left in the trading session here. the dow still down about 23 points. it's the s&p we're keeping an eye on because any positive close there will be another new all-time high. >> up next, jamie dimon, jpmorgan, expected to pay $13 billion to settle mortgage charges largely related to bear stearns, a company the government urged them to buy. up next, a banker who says this sets a very bad precedent for the financial system of the country. >> also -- >> the website has been too slow, people have been getting stuck during the application process. and i think it's fair to say that nobody's more frustrated by that than i am.

>> president obama today promising to fix those problems with the health care website. but should the roll-out debacle cost health and human services secretary keith leathleen sebel job? ♪

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jp making staggering $13 billion settlement with the federal government about the steep price tag may not be enough to pay for an end to the bank's legal battles. there could be more down the road. kate kelly is on the case as to what jpmorgan does next and she's outside the manhattan headquarters a few blocks from here. >> reporter: as you said, jpmorgan appears to be close to a potential $13 billion settlement that would put an end to some aspects of its mortgage securities litigation that's been hanging over its head for some time now. that would include a $4 billion settlement with the overseer of fannie and freddie and a total of $5 billion for the justice department and new york state a.g. as well as a sizeable fund to put toward consumer relief. if all the is can be dotted and ts crossed, a settlement could come as early as the end of this week, from what i'm told, although they're working out final details and it could fall

through. that settlement, as envisioned, does not put an end to the criminal aspect of the mortgage cases, which could result in suits against individuals or even potentially against the bank itself, as part of its talks with the d.o.j., jpmorgan sought what's known as nonprosecution agreement but was not able to reach one as of friday night when this $13 billion pact was struck. when jamie dimon and attorney general eric holder talked along with their lawyers, this is something that came up. but they weren't able to get it down. buttonholed d buttonhol buttonholed diamond on his way into the office and asked him how he was feeling. this is what he said. >> i want to get a final result. we're working hard to do so we can focus on the main issue which is serving our clients. >> reporter: well, we'll see, maria and bill f he can get investors to refocus on his bank's performance, which has been quite strong this year. although in the third quarter they swung to a loss because

they had to increase the size of the legal reserve to the tune of $9 billion. >> thank you. next guest highly critical of the government for pursuit of jpmorgan because much of this is about sins of institutions that federal governmento buy. he writes, once the government proves itself to be an unreliable partner in resolving failed institutions, it will find fewer banks willing to step in next time there is systematic risk. >> that is richard parsons, thanks for joining us today. >> thank you, bill. thank you, maria. >> what do you make of the $13 billion settlement jamie dimon is in the process of agreeing to right now? >> i think the key is the precedent it sets. not for today, but for the future. when there is a future financial crisis. >> so, precedent, you're right, because what you're eluding to

is the idea that the government encouraged them or asked the company to auto qucquire these or failing institutions to help the financial institution recover. you're saying a bank will be less willing to do that. >> i think that's the question. here's what we know, we go back to the 1980s, some 3,000 banks have failed. what we also know is small and big banks fail. what the fdic has relied on in particular are bigger, stronger, well managed banks to come in and help them calm nerves of the markets. so, what we need to make sure is next time we have a crisis, and there's an indication likely we'll see that again, we need banks to be confident they can come in and resolve the problems with a reliable partner in the government. >> but let me take the other side of the trade on that. i mean, jpmorgan should have known going there what they were getting when they took on bear stearns. let's face it, they bought them

for a song. i mean, they got it at, what, five cents on the dollar, if i remember correctly. it was just nothing they paid for this institution. and they should have been doing some due diligence to understand exactly the kind of liabilities they were taking on at the same time. shouldn't they? >> they had no time to do that due diligence, but -- >> all right. >> i think maria is right. there's a certain urgency when the markets are in turmoil. bill, you make a very, very important comment there, because what we will see next time is banks will be slower to react. they will do the due diligence. and that will make the process longer and potentially stretch out any, you know, recession or other downsides to the economy. >> let me ask you this, what is the answer to all of this political populism? you know, when -- it feels like on this program, you know, i mean, i've known jamie dimon for a long time, what i see as an outsider is that he's been one of the best executives in

business today, period. he's overseeing this bank now. of course, has been a leader during some very, very tough times. but when i say things like that, i get beaten up like crazy on twitter. people push back. you know, really making comments that, in some cases, make no sense in terms of jail and all this stuff. what is the answer to this populism, then, because people want to see individuals go down for the upset of '08. >> they want someone to go to jail for the financial crisis. >> some of this stuff spewn out is so inaccurate and outrageous. someone has to take the lead here. >> i break it down into two parts. you have banks that have been part of the problem. banks that are been part of the solution. that was my purpose in writing the article today is that many bankers as part of the solution, we have to be extra careful about not confusing the

situation with the part that might have been part of the problem. consequently, as we resolve this going forward, what i would hope to see is the government very, very clear that any type of penalties associated with jpmorgan chase are clearly identified with the problems created, not with the solutions they helped develop to resolve bear stearns. >> so, is any resolution authority the government comes up with, should they indemnifies companies that are forced to buy up the bad assets, so to speak? >> i think when you have future problems, i think that will be one of the first questions bank boards ask. >> sounds so logical. >> we're going to have congressman barney frank on in a few minutes. what would you like us to ask him? >> i would ask him, what does he think about punishment and penalties for aspects of jpmorgan chase's situation here, where they were part of the solution.

should there be any overhang of liability and responsibility when clearly the government appears to have come to them, asking for help. >> okay. we'll do that. thank you for being on the program if and for that op-ed. thanks very much. >> thank you. >> we'll see you soon. >> it's a tough issue. >> yeah. >> somebody needs to pay, but they were forced to take a bad asset. but they should have known what they were getting themselves into at the same time. but there should have been indemocri indemocrat fiction. >> but there was no time. >> i agree. >> 15 minutes in the trading session. dow down 15 points. the s&p is down a point and change. if it were turned positive, we would have a another new all-time high. >> netflix on the verge of having more subscribers than hbo. that should be good for the stock. julia will have the numbers. >> he's leading a revolt on

television and online. maria will sit down about diddy, why he plans to fill a void left by mtv when it stopped playing videos. i want my mtv back. coming up.

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welcome back. market up 22 points. dominic chu with the market slash. >> check out shares of radio shack. you saw this stock spike 10 %, 12% toward session high, on the heels of a dow jones report saying radio shack secured a new round of financing via ge capital. numbers $835 million in debt, to be refinanced by ge capital. watch those shares, again, session highs for that particular stock. back over to you. >> thank you, dom. about ten minutes before the close right now with more than 270% gain, netflix is the best performing member of the s&p 500 this year. >> that company is due out with earnings after the bell. julia with a preview. >> most important number in netflix's earnings, u.s. streaming subscribers.

they're the best sign if netflix's bet on original and exclusive content is paying off. wall street analysts are looking for netflix to add about 1.1 million domestic streaming subscribers in the third quarter for a total of 31 million domestic streaming subscribers, neck and neck with hbo. investors hope the company will match the 2 million subscribers it added in the fourth quarter last year. third quarter revenue expected to grow 22% to $1.1 billion. while earnings per share are expected to grow 280% to 49 cents per share. on the earnings call we'll be listening to hear if netflix lists any plans to partner with the cable provider with a top box to give it a boost. >> to all of our twitter followers, let's just say, we appreciate your interest. >> yeah. i don't know why people get so hostile. lose the hostility. >> wow.

ease up. where are we now? >> we got a market that is down 17 on the dow. >> okay. should you be buying or selling ahead of tomorrow's delayed september jobs report. two top money managerig

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nice coat. >> yeah, thanks. >> ten minutes left -- >> i knew he was going to do that. >> yes, she knew. we're down 16 points on the dow right now. joining us, jeremy hill from tf market advisers, kenny from o'neill securities. why no volatility? why a quiet day? what are we waiting for? >> no volume -- >> where's the volume? >> as we moved into last week, big volume on friday, and so now today there's none of that going on. >> is this a market waiting for the unemployment number tomorrow, the earnings -- >> i think the unemployment number tomorrow is going to be a big dud. it's 18 days late. they've already speculated on what it could be, what it couldn't be, i think it's going to be a big number. >> what about you, are you expecting we'll see an impact to the unemployment numbers, shutdown, et cetera? >> i think it's a little of ying

and yang. i think traders are nervous. i do think they're waiting for the deluge of information. and i also think, looking at the ten-year, it's constructive how it's traded getting a bid after fiscal resolution 1.0, investors on the yang side, i think maybe they have the stronger case. look, it's wind at the back, sun in the face. qe is here to stay. and i think investors have an upside in the equity markets. >> you agree with larry fink maybe they don't start tapering quantitative easing -- >> we have yellen coming in. that's very bullish for making the yield curve a little higher. i do think march is the most logical time frame, march fmoc for reducing quantitative easing. between here and there, i think traders on the equity side definitely have an upside. >> and i would agree with that. the only reason we have upside is because the fed's not going

away. >> you don't support this? >> no. look what's happening with earnings. they're missing on the revenue line. they keep missing on the revenue line. banks are having a difficult time this quarter. other industries are not. is the economy turning around? it is very slowly. but i definitely think that, you know, part of what we see, this rally in stocks, was absolutely a realization the feds aren't going anywhere. >> we're not going to sell into this market. >> no. you have to -- >> you have to kind of play -- >> you're still buying stocks. >> have you to buy stocks. have you to stay involved, right? you'd be kraesz, i think, to start shorting stuff. if you're taking a profit and you're going to take -- you're going to take money off the table, that's one thing, and then put it -- take that money and put it somewhere else. >> what about the argument that bulls have that even when the fed starts tapering, they wait until the economy is sustainable enough that it will support the stock market. >> well, i -- that's definitely one argument. the other -- >> you don't buy it? >> well, the other argument, just look at valuations, forward

valuations in the s&p, 1620 right now. we've had multiple depression for some time. it's not incon receiverable we have more multiple impression. it's 1820. that's not terrible place to be. >> you would like to think the fed won't start tapering u itse. ben bernanke said in august, when every analyst and -- >> not us. >> not me. >> you got that one right. thank you, guys. >> thank you, gentlemen. >> i'll patted your back, you pat mine. very good. we're coming back with the closing countdown. >> netflix earning out any minute and we'll have instant analysis and reaction from the red hot stock this year. customer erin swenson ordered shoes from us online

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stock, like a dotcom bubble type of stock. you look at their product mix and how well they've done and how well they managed everything. >> there's a feeling they could have more subscribers by the end of this year than hbo does. is that unbelievable? >> that would be shocking. and everybody pays individually, which is a great model. >> cha-ching. >> it is a money-producing model. >> are you buying this market right now? >> oh, yeah. for long term, absolutely. six months out, i definitely will buy this market. any dip is more of a reason to buy. not that today's any sort of indication, but i am definitely positive about it. i think earnings -- fourth quarter earnings will pick up -- >> what are you expecting from the jobs number tomorrow? the expectation i heard is a gain of 180,000 jobs. >> that would be nice. you know -- >> it's still low, though. >> it's still low. >> i think we need probably to average over 200 to make any dent in the unemployment rate, but, you know, above 180, 185, i think the market will react

positively. >> thanks, peter. doesn't look like a new all-time high on the s&p, but we still have 15 seconds, right? the dow's down 12. s&p down a fraction right now. stay tuned. barney frank answering an op-ed this morning that said he and other members of congress should be arrested for the financial crisis. he'll respond to that coming up on the second hour of the "closing bell." it is 4:00 on wall street. do you know where your money is? with welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. jobs report is due out tomorrow. here's how we're finishing the day on the wall street. dow jones down about 9 1/2 points. nasdaq up 5 3/4. s&p up just barely, but it did 2, another all-time high for standard & poor's 500 at 1744.50. it's only up a fraction, 04