>> there's no price on how much this would cost? >> no. >> and you need flying lessons. >> we don't know if it flies off three meters off the ground, because that's all it does in the video. >> just to get over the taxi cabs in manhattan. that's all i need. >> thank you. thanks for watching "street signs." "closing bell" is up next. have a great weekend, everybody. hello, welcome to the "closing bell." i'm maria bartiromo coming to you from washington, d.c. >> an hour of trading left to go. the market seems to be set up for another winning day. weak dow and s&p, or or near s&p. the nasdaq making another 13-year high. and knocking on the door of 4,000. so, why are so many starting to sound alarm bells? human nature, i guess, to worry

when things seem so good. we've been there before. are will legitimate reasons to worry and find protection for your money? we'll take a much closer look this hour, maria. >> then the twiter sphere. are they leaving money on the table or being realistic about its own financial expectations? we're debating twitter coming up. >> obama care still sick. the current prognosis, the website will be fixed, they say, emp by the end of november. really? how do they know it will be done by then? i'm still having trouble, maria, signing up. more questions than answers but we'll try to get some of those answers this hour. >> yes, we will. let's check where we stand in the markets right now as we approach this final hour ahead of the weekend. dow joendz industrial average has been steady for most of the afternoon, gain of 40 movements, fraction at move, 15,539.

we had economic data out. nasdaq looks like this, up 11 points, quarter of a percent, 3940 on the nasdaq. very steady for the last couple of hours. s&p 500 looks like this. once again unchartered territory, we see the s&p 500 up 4.33, with just an hour to go. s&p on track to close at another record high. bob pisani, looks like another winning week we have on our hands. >> fractional gains in major indices and s&p is up 0.07 7% for the week. nasdaq is outperforming today because amazon and microsoft after the close yesterday, good numbers. they're really dragging the nasdaq up there. when was the last time you saw microsoft up almost 7% on big volume, too? amazon up almost 9%. let's show you some of the other earnings reports. overall, pretty good. ups had a good number, beat by a penny. international package volume, up

6%. decent number. overall, a good report. gaming stocks are all trading down. we had what looked like a good report from wynn resorts. they are good in macaw. what was not good is the las vegas part of the numbers. that's why the stock is trading down. mgm resorts and caesars is also on the down. sands competes with wynn in macaw. we started with very low expectations. we were expecting earnings up 3% just a couple weeks ago. right now earnings for the third quarter up 4.5%, improving. revenues are up 4%. these are slowly getting better as the quarter goes on. you know, that's been it is trend for a long time. back to you. >> good info. stick around, bob, we want to get to our "closing bell exchange "reques exchange," stephanie, kyle harrington, michael yoshikami

and rick santelli joining the conversation with tyler and myself. stephanie, what will set the tone next week from your standpoint? >> next week we have two bellwethers, apple and facebook. everyone is wondering if they can actually beat expectations. apple expectations have been kind of increasing throughout the quarter. facebook we know has had an enormous run. we also have some names like chevron and exxon and visa. there's a lot of bellwether companies that are going to be reporting. we have about 25% of the s&p. you also have some manufacturing data here in the united states. so, as well as in china. you know this week we got pretty good pmi data, so we want to see if that's going to continue. i think that is the reason why some of the cyclical stocks are rallied this week. not only have pockets in industrial pace but macro data has gotten a little better. >> michael, the market has had a great run this year, up 2 2, 24%

on the s&p, more for the nasdaq. it's not an entitlement we get those kind of returns year after year. my question is, is this year's return in the market fundamentally being driven by fed policy or something else? and what happens if and when the fed starts to withdraw? >> if i would put a percentage on it, tyler, i would say two-thirds of it is just a stumbling recovery. one-third is fed policy. so i think what we're looking at at this point is we have to mute our expect takiations next year. i think earnings will continue to get better over the long term, but we are running strong here at this point. valuations are getting at least fairly valued at this point. and the fed eventually is going to pull the trigger on quantitative easing, maybe in february, maybe in march. i think that needs to mute investors' expectations going into next year. >> we have a problem with reversion. four out of the last five years the s&p 500 has been up double

digits. four of the last five years. of course, it was down 50% in 2008. that's almost unprecedented. historic average, you know, michael, maybe 6% growth in the s&p 500 per year. so, we're sort of stretching the normal limits of what we can expect. >> that's absolutely right, bob. i think investors often times lose sight of that fact. think about where we're in the world today. twitter is coming out with really no plan on how to have long-term revenue growth. the company comes out at $11 billion valuation. we're talking about how cheap the company is. that's the world that we live in right now. >> yeah. well, the momentum players are in the lead. rick santelli, jump in here. momentum players have taken a bit of a hit the last couple of weeks or so, but they've been the drivers of equities. what drives where you are? >> treasuries have been driven, even with an interest rate subsidy. you can't look at the current level of rates as real level.

they have been impacted, whether weak employment rate on tuesday, weak durables because of aircraft. i like what mike said. mike said i would say a third of what we're seeing is the fed. imagine what would happen if you knocked out a third of the stock market. 5,000 points gone from the dow. what would that do? listen, bob nailed it. these are abnormal times. four of the last five years because we've had the fed for five years. even though i think i wouldn't short stocks considering the current landscape and janet yellen about to take over the stage coach, but in the end, if we can't have mean reversion with normalization of rates, this topsy-turvy world will continue. but anybody out there who thinks we could ride this without training wheels, if that was true, the fed would have turned the switch off by now. >> you know, rick, when i asked that question of michael, i was like a chess player. i was thinking a couple of moouflzmoves ahead, because i -- >> you knew where i was going, buddy. >> i knew where you were going.

rick has just put it out there, kyle, how do you feel about the idea that a lot of the return that we've seen, at least over the past couple of years, is monetary return not fundamental? >> i think -- i'm in rick's camp. i agree a great deal with what rick's saying. having said that, if this is a fed-driven market, we still have to make money. >> exactly! >> it's exciting to see earnings come in where they are. you see the dow transports or home builders as a result of interest rates being lowered. these are exciting areas, i think, to spend some time and do some research on. yes, i believe that the fed has -- and monetary policy has driven the marketplace four out of the five years but he we still have to make money. >> this is our chosen profession, and we have to do what we do. >> the truth is, from my standpoint, yeah, i mean, maybe it is monetary driven, but it is what it is, right? >> right. the money is real.

exactly. >> that's exactly right. >> you don't want to get in front of that train, do you? >> there's no money in bonds right now and no money in stocks. people are being forced into stocks and holding their noses about it, but like everybody said, people are in the business of making money. right now they see the most money being made in the stock market. >> also, there are also very key themes that are working. if you look at oil service, if you look at some of the e&p sectors, the growth technology, aerospace and auto. we talked about all of these for a long period of time. they're all delivering. that's where the momentum is. that's where the valuations are still -- some of them are still very attractive. >> you have to be nimble in this environment. you can't say, hey, the fed is pumping money into the system. forget, it i'm not buying it. if you do that, you wouldn't have been in the market the last three, four years. have you to be nimble. you don't want to get too far out on the edge because just as quickly, the money can get turned off. things will turn and then you need to adjust. >> i don't know about -- >> like that old sinatra song

goes, have you to remember who brought to you the dance, because the fed's music can not go on forever. >> for all of these reasons you just don't see a lot of long-term commitments in this market. we appreciate it. have a good weekend. in the fij stretch of trading. the dow jones industrial average holding onto a gain of 25 points right here. >> also ahead, despite this rally we've been nibbling at it, is there a red alert now? coming up, we'll run down why some are seeing warning signs of a selloff and hear from somebody who says you need to get out of this market right now. >> speaking of warning short-sellers are starting to target some of the hottest technology stocks even though the nasdaq has been on fire. will the shorts lose their shorts on this one or do they know something that everybody else is missing? >> thousands of pets have either died or become sick after eating treats made in china and now the fda is getting involved. we're going to hear from an outraged pet advocate who says

we're not going far enough to protection our furry friends. that's later on the "closing bell."

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welcome back. the nasdaq hitting a fresh 13-year high today. nasdaq 4000 technology leading the stock. internet stocks like groupon, yahoo, zynga up in the double digits year to date. >> wall street is reporting a number of short-sellers are betting against those very names. did they see something others don't? with us is the man behind that report, douglas mcintyre and david saurby. >> how are you? >> we're great. david says the internet stocks still have room to run. you know, doug, let me start with you. make the case for why the stocks you've singled out, zynga, groupon, yahoo and a couple of others seem to vulnerable right now. >> well, two things. the first one is they're up so much. the other one is that they've posted lousy results. even if they're viewed as being better than consensus.

zynga's revenue is still dropping. yahoo hasn't been able to convince the market yet that it can turn its acquisitions into revenue growth. and there's really no evidence right now that groupon situation is getting significantly better. >> you know, it's interesting because i think when you look at the internet stocks of today versus the internet stocks of the '90s, aren't you really seeing a different picture? we spoke to the billionaire investor who invested in so many big winners and made billions from it, eury milliner recently, and that's what he said. he was basically solidly of the mind that, yeah, in the last time we saw this euphoria, there wasn't enough to back it up, but that's the difference this time around. do you agree with that, doug? >> well, i think again, you've got to separate stocks like facebook where you're still seeing 50% revenue growth. they're highly profitable. they're throwing off cash. from junk stocks like zynga

where it's still very much open to question whether the company will even survive long term. >> you know, david, that was the -- doug teed up the point i was going to ask you. you really do have to be discriminating in stocks, obviously, but particularly in this sector. the stocks, zynga, groupon and yahoo! have been over the years very fragile stocks. doug just called them junk. but broadly speaking, do you see still value in technology, especially or particularly? >>. >> i tdo because the medium technology stock is trading at 14.5 pe ratio on next year's profits. the free cash flow is very abundant and growing at a high single digit pace. and on the internet space, to get in particular and having been a value investor in 1999 and 2000 and not buying into the story when they were priced for

sainthood is the fact that names like google today, amazon today, plays in the entinternet and te space and e-commerce in particular, i think represent valuation to investors -- >> but there's -- >> i think there's value there. >> there's an important difference -- >> absolutes value there and cash flow there. >> there's an important difference is we're not talking about google and we're not talking about amazon. we're talking about stocks of companies that haven't been able to demonstrate in any way at all that they can grow. in some cases, zynga's case, all they can show is they're shrinking. i don't want to leave people with the misconception that they're created equals. the stocks you mentioned, the companies you mentioned, have been promising year after year after year. >> let me ask you this, let me ask you about the broad themes that are really driving these

things. mobility has to be one of the best innovations that our generation has seen in a long time. you know, mobility really changing so many industries. look at mobility. look at some other catalysts that are driving these names. what are the fundamental themes that are really the catalyst for so many names in the internet space right now? what would you say? >> well, let's take mobility for a second. it's a double-edged sword. it's nice to pick up a lot of people who use your service on smartphones, tablets, but one of the things that's happening now is that the ad rates on those are dropping precipitously. so, the migration to the mobile platforms is nice in terms of audience, but it can be very harmful in terms of revenue. so in some ways -- >> google clicks were up 30% year over year for the most recent quarter. while there's maybe not the same pricing, sheer usage.

retail sales this holiday season will be up 4 %. e-commerce in the low double digit category. in amazon, probably double what e-commerce is. there's valuation opportunities there. >> google made a very important point. this is going to get worse. that is, the value per click is dropping as they move to mobile. now, that's going to accelerate over time. and i understand clicks may go up. but that's going against the headwind of value per click. in this market you'd much, much rather be verizon or apple than you would be the internet companies that are running on those platforms. >> you agree with that, david? >> no, i don't. i think there's valuation opportunity in the other names that he just mentioned, but again, i never bought into the dotcom, dr. coop mania in '90s, but i believe in the efficacy today of google being the best

they're going to be in their space, search and display -- >> i'm not going to argue -- >> it's $1,015 now. >> there's still value in these names, especially if you pay heed to valuation and cash flow. there's cash flow and valuation in names like google -- >> i'm not saying -- >> it's a dominant player. >> all i'm saying is there's no value in zynga and probably very, very little value in groupon. i'm not trying to make a case of trashing a google even if i think it has some mobile headwinds. >> is there any internet stock you would buy? >> me? >> yeah. >> no. >> okay. >> simple question, simple answer. >> gentlemen, thank you very much. i love it. very good -- >> very little valuation in tech today. >> thank you, guys. that's what makes a market, huh, ty? >> good conversation. they were making distinctions. i thought it was very telling.

not a single one he would buy. >> 40 minutes before the closing bell sounds for the day, for the week. >> stocks may be near record highs, but we'll next show you some major warning signs that could signal a selloff on the horizon. and then twitter hoping to avoid a facebook-like fallout by setting an ipo price range conservatively valuing the company or is it because the company business model does not justify the valuation? (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience."

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well, the s&p 500 may be hovering around record highs but dominic chu has been looking at warning signs that could signal this party might not last. what did you find? >> we've talked to all kind of experts. they always say there are always caution signs in the marketplace. here are three we've been highlighting throughout the course of the afternoon. of course, here today on the "closing bell." the first one is the dow jones industrial average. yes, it's the barometer of the u.s. market. yes, this stock is -- or the stock index is near record highs but it's not at record highs. meanwhile, the s&p 500 has hit a new record high. that dow lagging has some investors concerned. there's also another big concern out there. that has to do with the nasdaq. the nasdaq 100 in particular. they're saying the nasdaq could be stretched. the nasdaq 100. it is trading about 13% or 14% above its longer term moving average. that has some investors concerned. they say can that last?

maybe we're due for a pullback there. another big one has to do with the amount that you borrow to buy stock or margin debt. there are record levels of margin debt, according to nyse data. when more and more people are borrowing money to buy stocks, that could be an indicator that things may be due for a correction. overall, lots of warning signs. these are certainly things investors are paying attention to. >> very important to bring these up. thank you so much. i spoke with former federal reserve chairman alan greenspan in an interview which will wear this weekend "on the money" program, my weekend show. i asked him where the money is right now. >> what you expect to find is, indeed, find. equity premiums are close to their all-time highs. when you have very high equity premiums or obverse, very low price earnings ratios, there's

downside limits. and so whenever you have a downside limit, the risks in taking speculative positions in the market is decidedly minimal. >> so, he says the real story is that the downside risk to stocks is limited. that's why money continues to pour into equities. is he right? want to talk about that right now. >> joining us is our bull, steve sacks and our bear, michael guyed from the inflation rotation fund. michael, what do you see that leads to you believe chairman greenspan and others who think stocks may be on a rather nice course are incorrect? >> well, let's step back for a moment. i laugh a little inside when i hear greenspan talk about downside risks given it was his policies that resulted in the financial crisis. there's no such thing as a safe conservative -- safe speculative investment. the defense of speculative is downside risk. very near term into these new all-time highs, financials are

underperforming the s&p. bonds relative to stocks are basing. they've performed roughly in line with each other since late july despite this raising right. mutual funds, i hear people talk about further gains, neement industry, almost like it's to the point where there is career risk if you're not in u.s. stocks. the last time we had that sentiment was in '99 and '87 before that. on top of that you see defensive sectors starting to lead. the biggest thing the stock market has to be concerned about is repricing of reflation. there is no inflation in the system. the inflation expectations have been factually dropping all year. bond yields are starting to realize that, apologizing to bond yields. and i think the bond market is starting to say the fed is not effective as forcing reflation of the system. at some point the stock market has to come to terms with that. >> are you saying, steve, in terms of flows into your etfs -- i know you're not really into,

you know, plain vanilla equity etfs but tell us what you're seeing and what those flows might indicate? >> we're definitely seeing flows like we are across the entire etf industry in our equity products. we've seen it in the last month accelerate quite a bit. but if you look at the flows overall from the industry, we continue to see flows into long-only equity products, both domestic equities as well as international equities. the fact of the matter s generally speaking, this market still feels underrated, if you will. right? i was talking to a trade other street this morning, you know, who compared this market to the movie "tommy boy," he said it's an underrated market. the market is doing really well but nobody wants to give it credit for it. they just want to find reasons not to buy it. the fact of the matter is, if you look at the valuations -- and michael's not wrong on some of the points he made, but at the end of the day if you look at valuations of u.s. equities relative to other developed markets around the world, equities are not expensive in

this country. we're trading at roughly 16 times this year's number. we're trading at 14 times or less, fairly conservative fiscal '14 number. earnings growing at 5%. estimates only growing at 6%. we have a lot of other little small tailwinds behind us, not the least of which is the 12% decline in energy prices we've seen in the last month in this country. that's putting money back into the pockets of the consumer that's, again, driving demand and lepg to grow top line revenue growth. >> michael, if your thesis is that the fed is not having success reflating the economy, that suggests you think deflation is the bigger risk on the horizon. play out your scenario for me. if deflation happens, that is very, very batted news for lots of asset classes -- stocks, real estate, everything. >> that's exactly right. that's not to say you're going

to head into deflation. what i'm saying is the invisible gorilla nobody is seeing directly in front of them is factually falling valuation expectations. from a sentiment contrarian sentiment, i know proshares has a lot of oechlt tfs, if you see flows in leveraged etfs, that could be a contrarian sign to wash money traditional valuation is not predictive. what is in the valuation tool set is the schiller pe cyclically adjusted ratio. if we're talking about how are we going to play out for the rest of the year into 2014, there has to be this realization here at some point. the bond market is saying one thing. the stock market is saying another. bond market tends to be much more right than stocks. bond market moved ahead of stocks in 2011. and i think you could see some kind of a very big decline to suddenly wake the fed up that either $85 billion is not enough or $8 5 billion ironically is

causing deflation. >> great conversation. appreciate your time tonight. >> the dow with about half an hour trading left for the day. the dow is up by 25 points. the s&p up by 3. nasdaq by 7. up next, the government talks about bringing in top talent to modernize talent but it seems they settle for second or third best. >> round up the usual supports. >> so, how come the white house did not get top minds in silicon valley to design the deeply flawed obama care website? we'll talk about it next. >> politico's ben white says d.c. is killing the nation's economy. is that really the case? we will look into that premise later on the "closing bell." . more than a new interior lighting system. ♪ it is more than a hot stone massage.

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the president's point person for fixing the obama care website named a new manager for the project and set out a new timeline for a next. bertha coombs reported, the update was still light on detail. she joins us now. >> jeffrey zeinst's prognosis is it is fixable but will take us

five weeks. on a conference call with reporters, he said outside advisers have found a punch list of codes to fix. working 20 -- 24/7 it will be another month and a few days to get it done. >> by the end of november, the vast majority of consumers will be able to successfully and smoothly enroll to healthcare.gov. the issues with healthcare.gov will resolve and the system will operate as it's designed to. >> comes one day after exchange contractors pointed the finger at mismanagement by health officials who oversaw sight integration. zients put qqs to take lead. how much will all of this cost? health officials wouldn't say. and when i asked zients what

kind of capacity they expect to be able to handle by late november had they can expect a big crush of people who all want to sign up for coverage starting january 1st, he wouldn't provide any metrics. >> bertha, thank you. despite problems with launching the health care law, our next guest is embracing obama care. >> joining us is president and ceo of independence blue cross which has served southeast pennsylvania for 75 years. you're a fan of obama care. a lot of people aren't this week, daniel. why do you favor it? >> well, tyler, let's take a step back. the blues and the health insurance sfri as a whole have been supporters of reform for a long time. if you look at health care, 15%, 16% of gdp today, if it goes unchecked will be roughly 25% of gdp by the year 2025. 45 million americans out of coverage, not insured. accessing care through the most expensive emergency rooms. we long believed reform was the

way to go. put politics aside. the affordable care act is the law of the land. we as blues have been in the community for 80-plus years. we've been about educating our members, our prospective members, so we embrace reform. that's what we're doing day in and day out. >> tell us about pricing, sir. a lot of people worrying they thought it was one price and then it ends up being more expensive. what are you seeing in that regard? >> let's take -- let's divide the -- those who are eligible. the folks that are eligible for subsidized exchange and those responsible for the commercial exchange. the way we look at it is, when our actuaries put together our strategy, we realize that the connection between those who are the more expensive members, the sicker members, and what we'll call the young invincibles who will use less coverage. what we're saying is that in order to get a lower premium, we have to make sure that we have the whole ball of wax. those that are more healthy and

the sicker population in the pool. so, that's the key to the whole thing. what we found in our own exchange, we have 13 products across the metallic levels and 30 variations. they have many price points. what we've also found, those who have used our calculator to estimate how much they would get in a subsidy are very pleased with the opportunity they have to buy insurance. >> wait a second. does that mean that if the young, healthy folks don't sign up, that's a problem for the program? >> i think it's very important. adds i said, those two issues are inextricably tied. we have the open enrollment and then mandate. yes, it's important from an actuarial perspective to have everybody in the system. >> i successfully enrolled. took me three weeks. i tried to do some shopping. i found on some mraib just because i wanted to see how it would compare against our owner

here, comcast. a lot of people, sir, are very concerned they're actually no longer to sign up for an insurance plan that they had, that they were happy with. the president said that wasn't going to happen. in fact, because some of those, quote, bare bone plans are not offered bit blues and others. >> oh, i wanted -- we just lost the shot. >> that was an important question. >> we got him back. i hope you heard my question. the question -- >> i did hear your question. >> so what do you say to those people who are happy with the insurance they got, but now because the law says it didn't meet the standards of the aca, you can't take it anymore, so you got to buy this plan that's going to cost you more? >> well, all the insurers who have members who have a plan that does not meet the essential benefits criteria, we've had to send a letter, communicate with our members to tell them exactly what you just said. what we believe that these members with our help, shopping

through, in our case, ibxforu.com, we're going to the federal exchanges, as the glitches, as the problems are worked out, we'll find in many states there are competitive options. we find it right here in pennsylvania. >> all right 37. well, i think we're out of time there. daniel, thank you very much -- >> it's nice to hear a positive and optimistic take on all of this. >> good luck to you. >> appreciate it. we'll see you soon. >> thank you. >> dani >>. >> we have 20 minutes of trading left for the week before the closing bell rings. the s&p up four and fairly modest gains across the board today. carl icahn sunk his teeth into apple this week going as far as saying he would consider a proxy fight to mount changes. mary thompson goes inside a can's enterprises to see what make this is activist investor tick. save our pets. that's the battle cry in

washington, where maria is. the food and drug administration is proposing new rules to make pet food safer after some animals died from toxic pet meal from china. one outraged pet advocate is just ahead. opportunities aren't always obvious. sometimes they just drop in.

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welcome back. investors trying to end friday on a positive note. dominic chu tracking the movers and shakers. >> let's start with two big tech earnings of the day. microsoft shares are in the green after they reported profit and sales that beat analyst estimates. microsoft is optimistic about the sales of its surface 2 tablet computer this holiday season. the other big tech mover, amazon.com are surging after it reported a loss but sales came in better than expectations. indicates the coming holiday shopping season could being strong. u.p.s. shares up but well off the session highs. reported profits that were slightly better than estimates on sales that matched expectations. procter & gamble shares are

lower. the world's biggest consumer products company reported earnings in line with estimates on sales that slightly beat. results were helped by sales of new products in existing brand lines. let's end one for the golfers out there, tyler, i'm referring to you. shares of callaway after they posted stronger sales and boosted full year guidance as investors become much more optimistic about ceo chip brewer's turn-around efforts over there. busy week for activist investor carl icahn and icahn enterprises netting huge profits on his netflix sale in a near perfect trade. increasing his position and presence in apple. mary thompson has been looking at icahn and his company. mary, what makes this guy tick? >> oh, i think making some money, that's what makes him tick, tyler. two years ago icahn shuddered returning money to outside investors but still people can get a piece of his activist

action investing in icahn enterprise. icahn associates owns 88% of it. over the last year up over 147%, up over 800% over the last ten years. the easiest way to think of this mlp is seeing it split into two segments. first holding company with stakes in what icahn thinks are undervalued company like cvr, federal mogul, tropicana and american railcar. the second segment, these are the investments. they account for 30% of the mlp's assets. icahn funds these investments, chosen and managed by a group of professionals, including his son. here icahn takes big stakes in firmed where he can ung clog value, where eyre dividends, buy backs, restructuring or management changes. dell, apple, netflix among icahn's recent investments. others including chesapeake, the drug company first labs, rig

operator transocean, mentor graphics and the software firm nuance communications. two other, take 2 enter active and biotech's enzon pharmaceutical. he looks at companies where he sees they're undervalued, changes that can be made quickly to unlock the value. that's one strategy. >> he sure takes big stakes in those companies. >> very big stakes. >> we have about 13 minutes left before the closing bell. the dow is up about 47. nice little sprint to the finish line, maria. >> get your thumbs ready. we're going to tweet. the twitter road show and ipo targeted at lower than expected. smart strategy or an admission that 140 character, profits might be limited as well. debate coming up on the "closing bell." mine was earned orbiting the moon in 1971.

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welcome back. breaking news on obama care. bertha coombs with the story. >> you know, the states have been apparently doing better but an admission from washington state this afternoon. that it had miscalculated for users on its site. what their subsidies had been.

they actually overcalculated what the subsidies were. they discovered there was an i.t. problem in the connection between their exchange and the federal hub and they have since corrected it. but it impacted 8,000 people who were given quotes and now they have to go back and tell them what their actual payments will be. an apology coming from washington state over that very big mistake. >> all right, bertha coombs, thank you very much. joining us to help break down today's market action and look ahead, danny hughes from devine capital and david darst from morgan stanley wealth management. welcome to both of you. david, let me ask you. we've had a thread this hour, and maria would agree, between people who think the market can go higher and those who say no. people who think internet stocks are fully valued and some ought to be shorted and others who say, no, they can move up. where are you on this? >> where i am on this is it can go higher, but you want to be more and more careful as it goes

higher. our forecast is for 1840 by mid next year. that's only another 5%. we've been telling our financial advisers, we've been telling our clients, probably only, this is late in the game, this party has been going on -- 6:00 it started, ends at midnight. it's probably 10:30. the party will probably get more excited, more worked up, but you need to start pushing and exercising diligence and discipline and backing away. secondly, tyler, your neck tie today is phenomenal. >> but when do the police come to this party, david, that's what i want to know? >> i think the police will come when there's another outside exogenous spoke of some source. it could be government shutdown threat again after the turn of the year. it could be something from europe. i'll say this, the china numbers that came in this week, tyler, you saw them, the purchasing manager's index as well as the european purchasing managers' ind

index, both were better than expected. our risk is a possible melt-up between now and year end. that's where people all say, uh-oh, i have to catch this thing. be very careful, bill, bill griffeth, he's not here today, tyler, maria. >> yeah. stephanie link earlier on the show went through the week next week, apple earnings, facebook earnings, chevron, exxon. overall, earnings have actually come in, even though it's just 4.5%, they're better than what people were looking for at the 3%. would you put money to work in this market based on the earnings story? >> yeah, i think you have to, maria. you still have to stay invested in this market. like my friend david said, we're at the right-hand side of this cyclical peak in earnings. the love affair between the stock market and the qe just continues. that's the reason why you still have to play this game. you know, in europe they had huge inflows last week. $5 billion. that's the largest ever.

i think that we're going to continue to see that. the ipo calendar has grown dramatically. it's going to continue to grow. ipos returned 30% last quarter versus 5% in the s&p. 5% isn't bad. so, you know that that's going to continue. we've got a big ipo coming out pretty soon with twitter. so, i think investors still have to stay in this market. >> you know, dani, do you think, though, as david does that that the best part of the party may well be behind us and for 2014 we're looking at, if we're lucky, low single digit returns? >> i've never been good at timing the market. there's one thing i know, the police only come when the party is totally over and the trouble's already happened. so i don't really think as an investor with a long-term thinking, you cannot time this market. you still have to play this game. i think you have to -- look at women-owned businesses. women-led and women-owned businesses have increased dramatically over the last few years and they're just starting to get investment from private

equity, from venture capital. you're seeing tremendous growth in that space of leadership. so, you know, i think for the long term you still have to play. >> for the last part of the market you want to own some europe, you want to own some japan and u.s. don't just go one. this last stage, last part of this, own all three. europe, japan and the united states. >> we had the cfo of u.p.s. on earlier today and he said his european intra-country business was up 10% in the most recent quarter, to your point there, david. thank you very much. i'm going to slide out of here, maria, but you'll be back with bob pisani and the closing counteddown. >> thank you very much. some say twitter undervalued his ipo to avoid a facebook debacle. some say you should avoid this stock like the plague because it's still overvalued and overhyped. my mantra?

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♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. welcome back, everybody. bob pisani on the floor of the new york stock exchange. let's take a look at the markets. all three major indices to the upside. s&p 500, we close here. this would be a new historic high for the s&p 500. that's important. warren myers, what do you think about this? we're here at new highs. earnings started low, basically. again, another season where they talk the numbers down. slowly as earning season goes

on, the numbers are getting a little better, more companies are beating and this pattern keeps going on. >> it certainly has been going on. i think it's actually a pretty good thing and gives more confidence to the market. they lowered their estimates early on and their predictions but at the end of the day, we're leading on earnings about 75% right now. and revenue's coming over 50%. that's a little better than people expected. and i think that gives a little confidence to this rally. >> we even had surprises. microsoft better than expected. hey, that was supposed to be old tech. we got a nice move up. that stock's had a great day. amazon, of course, we expect amazon to move up. huge move today. even if they're still losing money. it's narrowing a little bit. >> exactly. and those are all confidence-builders in the overall market. i look at microsoft, which has been a flat stock for as long as you can remember. the fact that we're seeing some life coming from that is really exciting to me. i think that generates a little enthusiasm to the overall market. >> important thing is, earnings keep slowly creeping up. we're at 4.5% for the third

quarter. we started at 3% a couple of weeks ago. even the earnings are -- excuse me, revenue numbers are at 4%. >> exactly. i think it's a great sign. >> warren, pleasure to see you 37 have a great weekend, everybody. there's the closing bell. stay tuned, st. jude's research hospital ringing the bell. "closing bell" is next with ma maria bartiromo. it is 4:00 on wall street and washington. do you know where your money is? welcome back to the "closing bell." i'm maria bartiromo in the nation's capital. the s&p 500 closing at another all-time high tonight. this market picked up steam going into the close. final hour of trading. the market near the highs of the day. up 61 points on the dow jones industrial average. the gains basically doubled from 3 p.m. to 4 p.m. eastern on wall street.