we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. hi, everybody. into the final stretch. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. >> i'm bill griffeth. big show on tap. we'll be crowning our power pitch champion, and also mark cuban is here. oh, boy. fresh off his victory in the insider trading case a couple weeks ago. mark held his ground.

>> yeah he did. >> he testified on his own behalf. made his case and the jury found him not guilty. he called this suit personal. >> he said it was all personal. >> he'll speak out about that today. since he's mark cuban, chances are he'll have a few other things to say about a few other matters as well. >> cuban owns the dallas maverick basketball team up. might be interested in listening to our coach coming up, legendary college coach rick pitino. he has a book out about leadership, two things lacking in washington. >> speaking with the coach. and america's favorite stocks, today we're looking at amazon. are investors confusing a great company with a great stock. one thing lacking with amazon, even though it's so -- has done so well as a stock over the years. it's at $327 right now. it has not turned a profit.

it's a great investment but does it justify this run? just because you love the company, does it mean you should love the stock? that's still to cob. >> and that you could look at a lot of companies. >> absolutely. let's check where we stand as we approach the final stretch. we've been coming back from the lows as we approach this final hour. the dow down 43 points to 15,425. paring losses from earlier in the day. nasdaq bouncing off lows. down 0.5%. nasdaq pulling back from the all-time high, down 6.75. aaron gibbs from s aechd p capital, steve grasso, and adam thurgood from hightower. >> steve, what are you seeing on the floor as far as flows? where are the flows and commitment? >> the first thing that spooked

the market is china tightening and european stress testing next year. the fact is the matter, people want to lock in profits. they don't want to let the whole rally be a paper profit of losses in case we turn around. there's only one place for profits, that's equities and probably the way it will stay. >> however, aaron gibbs, we talked about -- we talked about this the last few times you visited. the revenue is not there yet still again. >> we're looking for 4%. that hasn't moved. we've seen earnings numbers go up but we're looking for 4% revenue. what's really happening is, it's being driven solely by consumer discretionary. out of the 4% for s&p 500, it's really coming from consumer discretionary having a 20% revenue growth. >> wow. >> yeah, it's very much about -- >> where's the weakness? who's not pulling their weight in terms of revenue growth? >> the same usual guys. utilities, materials, energy. energy is really being dragged

down by exxonmobil. >> ross, is that the way to allocate capital, go where the growth is, or the momentum stocks getting hit again, some big guys that were driving this market all year. how do you want to allocate capital? do you follow the growth in the earnings story or no? >> you always have to follow the growth, maria. the bottom line is, stocks go up with earnings over time, so you need to have a company that's growing its earnings to really see any appreciation. but what you pay for those earnings is just as important. what we're seeing today is simply just profit taking as was earlier said. the market's been phenomenal this year. we made huge profits for our client. the last thing we're going to do is lose some of it. especially in heavy momentum stock. we lieu the market. it can't go up every day. we look for opportunity to get in the right price. >> adam, i see you're overweight technology but today the

semiconductors are lagging. they're not providing good guidance down the road. that's a key sector, if not the key sector, to tell us what's coming in technology. if they're not doing well, the rest of the industry can't as well. why are you overweight? >> despite pullback and expectations, we still belief technology is the best sector for the next couple of years. maybe not the next month or two but the next couple of years. they have the best balance sheets in the business, which gives them a lot of optionalty, whether it's stock buy backs, dividend payouts or acquisitions. on top of that, their multiples are depressed. if you see any uptic in economic activity, they could expand quickly. the stocks would benefit as a result. >> you know, the dow and the s&p 500 have been sitting all-time highs. nasdaq is nowhere close. it's at 1700. >> i have no idea when that will

happen. i think we're in a multiple expansion cycle. if you look back over time, the market rarely trades at average long-term multiple, which is basically where we are today. it usually trend above that or below that. we've been on an upward swing now for a couple years. and i think the tail winds are still in place to push that forward. if it continues to push forward, i think technology will be one of the areas that helps the s&p multiple move higher. >> grasso, i should have asked you when nasdaq gets back to 5,000. you'll know the answer. >> yeah, of course. the problem is, though, is that there's only a couple of names that really seem to be up every day. i personally own google. it seems to be bullet proof to a lot of different aspects. every day you see a new high. as long as it holds that 1,000 price tag, it's still very bullish for the whole sector. >> erin, what kind of a 2014 are you expecting? i know the story in terms of guidance for the fourth quarter.

what we're getting at, are we going into the fourth quarter weaker than we thought because of the government shutdown and this political rangeling. what's your estimate for 2014? >> we haven't seen a lot of -- estimates have coming down. looks like it's going to be another consumer-driven recovery, another year of looking from the consumer. hopefully if we start to see growth from europe, we can place more bets on the industrials but right now it's based off the u.s. consumer buying away the tapering, keeping that going, you know, not coming in until the next first quarter of next year. >> maria, we also have to realize, hedge funds have grossly underperformed the index. going into year end, they're going to be chasing. they have to cover a lot of their positions. that's going to push the market higher. granted, vanillas, long-onlies, have to sell, but i would think the path of least resistance is still higher. >> ross gerber, how much lower

do you think interest rates go here? that would be good for stocks at some point because that's less competition for equities, don't you think? >> absolutely. i think that's what's supporting equities, is rates have gone from 3% down to 2.5%. i don't think they'll go much lower. the only reason they went down is because of the government basically stabbing the economy in the stomach for a little bit. ultimately, i think we are going to see slower growth in the fourth quarter than we expected. probably a poor employment report for october because of our own government, which makes absolutely no sense that the government we elect actually hurts the economy that we're trying to fix here. and clearly employment is not getting much better as it should be for how far along in the recovery we are. >> that's what i was alluding to. how much damage has been done as a result of the nonsense going on in washington and how do you allocate capital if, in fact, we see more wrangling and battling?

bill, check this out. the top ten stocks in the s&p 500 this year have returned over 90%. that's best buy, netflix, micron technology, gmb, celgen -- >> the consumer stocks you were talking about. do you want to sell the momentum at this point? and get on another train? >> carl icahn is. >> you want to keep going into 2014. not until tapering starts. >> i don't see why you would sell stocks that are going up that are doing really well. in this market, a lot of times you say, look at the valuations, but in the '90s, the valuations kept growing when you kept saying that. and so i think you want to own these companies. you have to look at what these companies actually do and are these businesses actually growing? >> also, we saw what carl icahn, when you have a profit as we start off the segment, you have a profit, it's shrewd, responsible to lock in that profit. people spin out of those going

to high beta and return back to what's working. >> bishlgs if you made $800 million, you would sell. >> selling at three times earnings, that's the time to take it off the trade. >> one of the best trades in trading history. >> unbelievable. >> did it again. >> thank you, everybody. see you later. we have seen a loss of momentum for the momentum stocks. grasso and i talked about it before we got on the air, almost like an etf they sold them as a group. the dow down about 50 points off this point. >> mark spits nznagle reportedl made a billion dollars on the stock crash. he's not optimistic about the future. >> it's a market that set up, i think, for a major crash, a major selloff. >> and it gets worse.

my exclusive interview coming up next. >> mr. happy. speaking of potential selloffs, we'll hear from somebody who said amazon's 30% gain this year is unsustainable. this person thinks one of america's favorite stocks is due for a big pullback. both sides of that story coming up. >> legendary college basketball coach rick pitino is here to talk about how lessons from team and sports could fix the dysfunction in washington. [ coughs, sneezes ]

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welcome back. the s&p 500 took a dive during the financial crisis of '08, "the wall street journal" suggested mark spitznagel made

the flash crash. he wouldn't speak to me about that but he predicts a crash in the not too distant future. >> this is a very distorted market today. visible in a number of indicators. but it's a market that's sort of set up, i think, for a major crash, a major selloff. and, you know, it's a basically number of other times. i would argue all the major tops we've seen in the market over the last 100 years look very much like it does today. my argument, this is very much a fed-induced distortion. >> so, what's the catalyst, then, to trigger this 40% crash in stock prices? we all know that this market has been goosed by the fed. but now a lot of people are saying, tapering is off the table in 2013, off the table possibly for much of 2014. what's the catalyst to actually send stocks lower in the face of the fed with this stimulus? >> see, i don't think it matters what the catalyst is.

the whole notion of catalyst in many ways sort of hides what's going on. whatever would drive the market down would say it's this debt ceiling issue or anything else. these are proximate causes of crashes as opposed to ultimate cause of crashes. the ultimate cause is distorted environment we're in. the fact that assets have been bit up to this unsustainable level based entirely on an artificial economic sort of illusion that is zero interest rate environment. so, the ultimate cause again is just the distorted setup we have in our economy today. >> so, from a practical standpoint, how do you invest in this market? 2008 your funds scored returns of better than 100% as the s&p 500 lost over a third of the value during the crisis. how do you invest today? >> it's simple answer, mom and pop answer, i think, is just to step aside. this is sorted of a mundane response to that. but it's -- but it's impossible to do.

certainly impossible to do from a professional standpoint. the professional investors certainly more than nonprofessionals are forced to sort of make this return every quarter, every year. so they don't have this luxury of being round-about, thinking of the positional advantage we try to gain for later. so, that's a huge advantage that sort of mom and pop has over the professional. we can step aside. they can step aside and wait for the opportunities that are going to come. as long as you just understand the market process that's happening here. understand the distortion. and it will allow you to step aside. very simple advice. don't just focus on this next slice of time. understand all the other slices of time to come and prepare for other slices of time to come. >> when you say step aside, raise cash, do nothing, keep your money invested in the market? >> the hardest thing to do right now, what makes you look like a fool is sit and earn zero. i would argue it's the best investment to sit earning zero. again, this is the idea of not

focusing on making immediate returns, these decisive returns every period but thinking about so that dry powder to have when great investment opportunities come. this is round-about investing, as i call it. >> do have you a time frame on this selloff? you're expecting the market to fall 40% near-term, long-term, what's your time frame? >> i think it's probably naive to think we can pinpoint such a thing. if history is any guide, we should expect it sooner than later. you know, i think a year or so is a good guide. but, history need not be a good guide because we're in this monetary expermit, the likes of which we really haven't seen. >> there's maria with mark spitznagel and we'll talk more about his thoughts. but we have breaking news. speaking of carl icahn, we have a story with carl and apple. scott wapner is on the phone. >> carl icahn just tweeted a moment ago he sent a new letter to apple ceo tim cook.

it's my understanding from a source familiar with the contents of that letter that it details carl's current position in apple. what we don't know is whether the position has gone up or gone down, but what i can tell you, again from my understanding, is that it continues to make a very strong case for the buy back. i think one can surmise if he continues to make the case for a buy back, that i'd be surprised if the position went down. so, it details where the position currently stands. it apparently unveils a pledge that carl icahn is willing to make to tim cook. and continues to talk about the buy back. now, it's going to be launched tomorrow. you'll be able to see it tomorrow as part of something that carl's rolling out called the shareholder square, where he wants to basically create a platform to get some rules changed in corporate america. he's made that clear on a number

of occasions. the big news the last couple of days, of course, has centered around a nonactivist position, that being in netflix, which he cashed out half of his position, nearly half, for $1 billion. i think the big takeaway is that carl continues to press the case at apple. he sent a new letter. he made the case on "halftime show" not too long ago where he said in his own words, i'm not going anywhere, i'm not going away. he sent a new letter detailing what his current position in apple is. and it continues to make that strong case for -- >> but in the meantime, scott, i mean, what we'd heard from both carl icahn and tim cook is that they had met a few times, had dinner one night, and it seemed like they were making nice. do you sense carl's not getting what he wants from tim cook right now? >> it's a hard question to answer, bill. look, until carl gets the word from tim cook that says, carl,

i'm willing to do the big buy back that you asked for, i think carl's probably considering he's not getting what he wants. if he's been forced to send a second letter just as, you know, a dan lobe would send a secondle ette so sotheby's, the activists don't get what they want, they continue to send the letters and press the case. i think carl osd our show, three, four weeks ago, that he intended to speak again with tim cook in a matter of three to four weeks or so. so, i think he continues to make the case. i think people would be surprised if tim cook, frankly, did another big buy back, bill. >> what's he going to do with the money, scott? we're talking about tens of billions of cash on the balance sheet. carl icahn wants to know where that money is going and where it's going to be best traded, right? if it's not a buy back, what do you do with that cash? >> maybe do you some kind of acquisition. we know apple made some small acquisitions in the past. john skully, former ceo of

apple, on "halftime" today suggested they should not do a bigger buy back. the cash would be better preserved in innovation or ebay, for example, using current technology the company has rolled out to get into more of a payments-type business, ebay would play well into that. that's the first time we had heard ebay thrown around. that was from skully. nobody close with apple. it's a huge war chest -- >> let's bring in ron. we brought you in to react to mark spitznagel, but -- >> no 40% crash. let's start there. >> there's the response to that. >> he really is looking for a serious selloff in stocks. i'm talking mark spitznagel, of course, but can you see a company like apple and google and momentum names go up and you when have part of the market go down 40 %? >> listen, you know, we know from prior experience that correlations go with -- listen,

i love scott's reporting on all this stuff. you and i, we've been around for a long time -- maria, congratulations on 20 years here. >> thank you. >> bill and i go back to the mid-'80s when guys like carl icahn are generously called activist. they are doing this through social media and -- >> look what he's done with netflix. i mean -- >> well, reed hastings did it. >> he knows how to pick his spots. he identifies anunder valued company. right now he feels apple is undervalued and tim cook is not doing enough to realize the value in this brand right now. >> people who are really worried about the undervaluation that apple is facing increasing competition, they could use that cash on more research and development, on this 56-inch flat screen tv that's going to be an interface. they could do other thing wts

money other than buy back shares. this is the nonsense we went through 30 years ago. i want tim cook running apple and hastings running netflix. i don't want carl icahn. this type of stuff to me, bill, borders on the activity we saw in the '80s that i think was somewhat unsavory. >> you wonder how tim cook would responsibility. he probably would have a different answer privately than publicly, i wouldn't know. >> i would guess. listen, tim cook, i wouldn't be surprised if right now is trying to give carl icahn the heisman and push him away with the hand stretched out. you know, i think that he would probably agree with ron and others who would say that's not a strategy at this point to use a big chunk of that cash to do an even bigger buy back than they've already announced. maybe it's better served keeping within the company. maybe it's better served

reinvesting in the business. maybe it's better served going out to do a transformative acquisition to help apple maintain competitive advantage over all the other players in the various spaces in which it operates. >> in the '80s, some guys went out and raided companies because they had overfunded pension plans. the result was not good. companies were taken private. the pension plan money, extra money was used to fund highly leveraged transaction. we used to call them hlts or lbos. a lot of that stuff didn't turn out well. i would much rather see cash be put to productive uses. higher dividends and stock buy backs are quite helpful and maybe the only economic use for money. i don't believe that's the case for companies trying to stay on the cutting edge of technology. >> very good. >> can i make a quick comment about the other guy? >> in ten seconds. >> look, we're not at the point that mirrors a historic crash with respect to how this market is shaping up relative to other

markets. the fundamental and technical sides aren't there yet. anything can happen. it's not an artificial rally. the fed is fighting global deflation. i think people who continue to suggest the fed is propping up the market really don't not what the fed is fighting, what it's doing and how this will ultimately resolve itself. >> i think that's a great analysis. he's looking at this austrian approach -- >> i've read it. highly inscutable. proven wrong many, many times. i'm not in that camp. the austrian school, which dominated the conversation, and keeps talking about the sugar high or the fed going well beyond the bound of what's it's supposed to do. the fed is fighting a real war here, real battle, and i don't think the austrian school necessarily understands that. >> thank you. he said he wouldn't want to short the market. he just wants to step aside. >> step aside. step aside. >> thank you, ron. >> thanks, ron. thanks, scott. >> 30 minutes before the closing bell sounds for the day.

a market that has worsened a bit, down 67 points on the industrial average. >> we get back to america's favorite stocks. this time it's amazon, qualifies. the stock is up 30 % this year. jeff cox thinks this may be the case of a great company but a bad stock. he'll explain later. >> billionaire investor mark cuban blasting the s.e.c. after he was acquitted insider trading charges. why he says regulators tried to deceive the jury. he has more he wants to get off his chest and he'll do so right here later on "closing bell."

today on cnbc we're highlighting some of america's favorite stocks like google, general electric, microsoft, johnson & johnson, widely held in investor portfolios. right now we're zeroing in on amazon. >> which, by the way, is up 30% year to date. outperforming the s&p 500. there's the chart. comparing the two. are investors buying amazon because it's a great company or because it's a great stock. joining us with their thoughts, jeff cox and cnbc contributor carol roth. welcome back. jeff, you'd sell amazon here, wouldn't you? >> yeah. you know, i would do what carl icahn just did with netflix. i wouldn't sell all my holdings in amazon. you want to talk about know when to hold them, know when to fold them and know when to walk away. it's 43 times cash flow. i mean, the valuation of this thing has really gone crazy.

i just think you want to take that example of what icahn did. trim your sales a little bit, take some cash and step back and see where the company's going from here. >> carol, what's your take? >> i know jeff is speaking a lot of common sense, but you have to remember that the america and investors have been having a mad, patch nalt love affair with amazon and jeff. the valuation has never made sense. this company is hitting t trifecta. they have disruptive markets that nobody really knows -- >> carol, is that the reason for me to buy the stock, because it's been working for 16 years and -- >> the big thing is -- >> these mad, passionate love affairs usually end in messy divorces, you know that. >> they definitely do. they've been killing it on the

revenue side. we're looking at 2 1/2 times revenue. >> all the sales are -- >> you're trying to make a rationale argument off an investor psychology play here. if you look at tesla, facebook, amazons of the world, these are in the middle of investor psychology plays. everyone who's been saying what you have been saying for the past 16 years have gotten burned. i don't disagree the time will come. i'm just saying if the market sustains the way it has been and you still have all of these other things going on, the revenue hangs tight, they don't have a bad quarter and jeff baez is still at the helm. >> i agree with carol. if he wanted to turn a profit, he could. that's not what he's been about. he's been plowing money back into the company. >> i'll take my profit and you take jeff bazois word.

>> we'll reconvene in five years. thanks, gang. we have 30 minutes left in the trading session. the bias is to the buy side by 95%. not very big, apparently, but is it to the buy side. dow's off the lows, down 65 points. >> high school football team in texas accused of bull yg a game because it won 91-0. a father on the child of the losing team filed a formal bullying complaint. what's a team to do, just tell players not to try hard? legendary college basketball coach rick pitino rackeacts to that. whether he would hold anybody accountable for the obama care mess. >> mark cuban tells us who's the bigger thorn in his side, nba commissioner david stern or the securities and exchange commission. cuban just beat the government in that insider trading trial and he wanted to talk about that. boy, does he want to talk about that, coming up on the "closing bell." trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading.

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no matter your line of work, achieving success usually is the goal of most people, right? >> yeah. >> that's pretty safe to say. rick pitino of this year's ncaa

national champions, louisville cardinals, knows how to is chooef success on and off the field. his new book "the one day contract: how to add value to every minute of your life." >> and in the wake 6 soof some the dysfunction in government, seems the perfect time to talk to him about leadership. coach joins us right now. thank you for joining us. >> thank you. >> now you deal adding value to every minute of your day, the recent government shutdown our elected officials have been doing. talk about the lessons on the court that you can take and apply them to business, to government, and some of the economic issues we face. >> well-being i think cynicism and skepticism are rampant right now. our government is totally dysfunctional. both parties cannot communicate. and we're a team. when you're part of a team, there are certain times where you'll go in different directions, but you come together to try and win.

and in this case, we're not winning for our country. you know, when you see everybody just with no term limits at all, and they're so -- they just move away from bonding the country together right now, you almost think like you have two different countries fighting against each other. >> you know, you coached in the pros, you've coached in the college. you've had more success there. you prefer college because you say in the pros those long-term contracts have an impact on what pros do. and their ability to really compete and the energy level they have. how do you equate that in d.c., when you've got members of congress who face re-election every two years but yet they still can't get anything done, there's no teamwork in washington right now. >> well, i think everybody agrees term limits are necessary to get the most out of it. it's like a long-term contract. i'm under right now eight more years left on my contract but

the last two years identify been going about my job with a one-day contract. if i was in the senate right now, tonight i would have meticulous preparation to try and make something positive happen the next day. and i have one day to get my contract renewed. i've been doing that for the past two years as a basketball coach. and i have found i get more out of my coaching ability, motivational abilities and lift my players up to levels they didn't think they could reach. right now our government is not doing that. >> one thing you're saying, i think what i'm hearing, is called accountability, right? you're taking accountability for the job at hand. what do you think of kathleen sebelius' actions regarding obama care's new websites? you've been someone who's dealt for scrutiny. should she be held accountable by her boss, the president? >> i'm a president obama fan. any president, president clinton, george bush, i'm 100% behind the president. i think right now the senate and house of representatives have to

get together. they have to iron out certain things. it turns my stomach when i hear people bash our leader. he's our president. we elected him, whether i voted for him doesn't matter. i'm behind him 100%. things need to be worked out. there's no immigration reform. there's no really tax -- tax code is still very, very difficult to understand. the middle class is disappearing. right now we need people to come together, support our country. just like the guest you just had on, you know, you feel like selling your whole stock portfolio after listening to that person. i'm not the cynical person. i'm more upbeat, more positive, and i believe in our country and i believe in our team. >> yeah, i suspect you'll take -- be more accountable for your own portfolio in that case. what did you think of this story out of texas, the high school football team that won -- what happened to the mercy rule, first of all? then the father from the losing side that literally filed a bullying complaint. what do you make of that, coach? >> well, i think it's bogus. i think the high skol that lost

by all those points, if they had a complaint, they should certainly lodge it. in college football, when you play alabama, one of those teams early in the season, you walk away after a 52 -0 beating with a $500,000 guarantee to go back. this high school is not walking away with any guarantee. >> there's a one-day contract to go after right there, isn't it? >> no question. >> and how is it doing? how is the industry doing right now? you've seen so much change. are you expecting we see a different college basketball sort of landscape in the coming years? >> i think so. everybody has changed really because of football. football has caused west virginia -- west virginia's nearest opponent right now is 750 miles away because they had to change conference for football. so, football sort of has dictated all our sports in the ncaa right now. i think it's starting to settle down and we get back to normalcy. >> coach, congratulations again on the title this year. i know they love you in k

kentucky. you've won two of them in two different schools. good luck with the book. >> thank you. >> rick pitino, "the one day contract" is his new book. i wonder how we would do with a one-day contract? 20 minutes left in the trading session with the dow down 6 0 points. >> the s&p 500 was on track for a fourth consecutive record close. up next, we'll see what's preventing that today. after the bell, mark cuban beat the securities and exchange commission in his insider trader case. now the colorful technology mogul is saying an s.e.c. lawyer outright lied in his case. it's an interview you don't want to miss. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles

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risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. down on wall street off the heels of disappointing earnings from caterpillar and the likes of others. bob pisani is tracking the pullback. >> a number of things have been clear. limited visibility from semiconductor companies. a number of big names out saying fourth quarter revenues -- put up some names -- not that clear. they lowered them. cree, alteria, rf micro, juniper, broadcom. there's a lot of them.

this is having a knock-on effect. for example, big semiconductor stocks are having a hard time. large moves on heavy volume. a knock-on effect on disk drives. when semiconductor doesn't know what's going on, float in disk drives. the other area that's weak today is energy stocks. oil keeps dropping. supply issues out there, oversupply issues and weaker demand. we were at $110 in oil a little while ago. now $96. take a look at oil drillers. last night neighbors came out, numbers were disappointing. they cited oversupply in north america. one of the big drillers out there. finally, exploration production companies have knock-on effects, all down about 4%. >> thanks. even with the red arrows we're seeing some stocks have been on the move to the upside, thanks also to earnings.

dominic chu has been monitoring that throughout the day. >> we begin with caterpillar which reported weaker than expected third quarter earnings and cut its full year forecast. its ceo calling the year a difficult one. now, it's a different story for boeing, which easily beat third quarter earnings estimates. the jet maker also raised its full year forecast and uped dreamliner production. good story for medical device maker c.r. bard, beat street forecast on better sales of surgical tools and heart-related devices. on the defense contracting side, northrop grumman hit a 52-week high, raising full year outlook. but rival general dynamics falling after reported net income fell 8.5% on lower sales profile. tupperware missed third quarter by three cents.

the company saying established markets did not perform quite as well as they hoped. bill, marie yashg a lot of earning catalyst stories in the news today. >> if they're not buying tupperware, this economy really is slow. >> like avon. >> what do you put the leftovers in, for pete's sake. thank you, dom. heading toward the close, 13 minutes left in the trading day. dow trying to come off the lows. down 57 points right now. >> we're going to take a look at ishtar in hollywood, viewed as the -- >> remember the edsel? such a great car. ishtar, what a failure. >> but a public relations disaster. obama care may join the list of internet fiascos. mine was earned orbiting the moon in 1971.

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historic market, visible by a number of indicators. a market that's set up, i think, for a major crash, a major selloff. >> in case you missed it, that was hedge fund manager mark spitznagel whom i spoke with earlier, yesterday. 40 % selloff. >> could see a 40% selloff. more reaction to the dire warning. joined by scott kimbell, and sachi joining us as well. his premise is that this market has been distorted by fed policy. and it's maybe fed policy that's going to take this market back down again. what do you think? >> i think to some degree fed policy certainly stabilized equities. the reality is the earnings numbers will be decent, so you'll probably have a fundamentals play. the reality is you've had a historic move this year. we did some work looking at large and small cap market. in the last 43 years, this has probably been the ninth best year we've seen.

there's lots of rooms. >> these are justified by the fundamentals, you feel? >> i think they are. i think reasonably you should see seasonal ricks. i don't think we'll time something. >> how do you want to allocate capital, then? scott, what are you doing? do you agree the earnings are, you say, decent. we had a problem today with caterpillar, a problem yesterday with coach. >> the semiconductors are warning for the fourth quarter. >> what do you think, scott? >> we agree with that premise as long as the fed is involved, risk assets, credit risks, in particular corporate bond, high yield, favored by investors. you want to keep an eye on risk assets and look at those to outperform going into year end. to the ultimate point how to allocate our resources we look at companies who are top line and bottom line, not just the bottom line and missing on the top. >> we to want break away and get to kate kelly who has breaking news on bank of america. what can you tell us?

>> maria, a manhattan jury found b of a liable for countrywide loans issued. they say countrywide defrauded fannie mae and freddie mac. ceo rebecca marrone to be of fraud. the jury's decision concerned a single countrywide program that lasted several months and ended before bank of america's acquisition of the company and we will evaluate our options for appeal. more in the so-called hustle case that seems to be negative for b of a. >> she could have chosen to settle but she wanted to go to trial, is that right? >> i think that's right. b of a felt it was strong. there was supposed by 20,000 mortgages at yirn. the defense argued only 11,000 were legitimately a part of it. there were a number of factual disputes. clearly at the end of the day, this jury found in favor of the

government and we'll find out next what the penalties are. >> quickly, why her? do we know? there are other top executives at countrywide that oversaw this type of a program. >> this was a particular promise known as the hustle program which essentially sped up the process for approving prime loans even though the financial crisis had so much to do with subprime. the this executive was very involved with it. it's the first, i should note, financial crisis or pre-financial crisis housing-related case to go to trial. it could be an interesting harbinger as we talk about the expected settlement with jpmorgan as well as ongoing headwinds for b of a, citi, all the banks. >> that's what i was going to ask you. after what we saw from jpmorgan, $13 billion, now this. are you expecting sort of things to get heightened in termed of more money the banks are going to have to lay out as a result of the mortgage mess? >> it appears to be going in that direction. i reported earlier there's this

additional $6 billion payment jpmorgan may have to pay out to private investors. b of a has a parallel suit from the same group. the numbers do, indeed, seem to be getting much higher. >> kate, thank you so much. we'll keep following that breaking news with kate kelly. >> keel come back with the closing countdown. >> moments away from at&t and earnings. instant analysis of dow component results which could move the markets tomorrow. you're watching the "closing bell" on cnbc, first in business worldwide. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache.

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about a minute left here. a tired market. we keep hearing that today. a tired market. dow, down 59 points. s&p will not finish at an all-time high after four consecutive up days in this market. caterpillar was the big one to the downside. even though boeing did have a good day. it was to the upside. allen, you were telling me during the break, you were among sellers today. why? >> we had 1750 all along as the point -- >> on the s&p 500. >> on the s&p as the high for the year here we are, october. we said let's take a little off the tanl. we love the market but clearing it off right now. would he get back in. we still have the fed but getting out right now. >> this is part of the ebb and flow. a great month to this point. s&p up 4%. >> 23% for the year. so, we're taking some off. >> thanks, allen, very much. good to see you, as always. down 63 point on the dow.

s&p, first time in five sessions we're lower, down 9 points. get ready for earnings from at&t. that could be a market-mover tomorrow. don't forget, mark cuban coming up to talk about that recent trial that he won against the s.e.c. all that on the second hour of the "closing bell" with maria bartiromo. i'll see you tomorrow. it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. mixed bag of earnings snapping the s&p 500's five hi-day winni streak. dow off the lows but down double digits. volume okay. sort of picking up at the end of the day, but pretty stable with what we've been seeing recently. nasdaq pulling back to the tune of 22 points. notice men item names taking a