welcome to "the closing bell" to close out this friday. i'm kelly evans at the new york stock exchange. >> i'm bill griffith and starting with upbeat music here on this show. market trying to end on a positive note. bull market firmly intact here especially after what many are calling a goldilocks-like jobs number. below expectations but the previous two months saw revision higher. so we'll take a closer look at where stocks may be heading into the new week. >> yeah. there were a lot of good details in that report. also, oil rebounding a bit here getting close to that $80 a barrel level and that's a relief to gary evans. his company has a lot riding on shale and sinking prices could be a huge issue for those like him. he joins us exclusively coming up. >> great story. can you hear that echo? well, never mind, because it can hear you. amazon's new echo. you haven't heard about it?

quietly introduced yesterday and promises to be an in home assistant to respond to the voice commands. if you have sy ri on the iphone, do you need that? stock continues to lag. a lot may be riding on the surprise new device. what it's about and what it means and brings to the table here in technology. >> yes. we will. and now market where markets stand in the final hour of trade. back and forth today, up and down on the back of the payroll report. right now, the dow off 8. is weaker by about 1. nasdaq off 13. we should mention, of course, yesterday at least the dow and the s&p closing at all-time highs here and just slightly below the levels for right now. >> music's like "game of thrones," isn't it? >> parallels, i'm sure. >> let's get to the closing bell exchange for a friday. we have jeff taylor with us today. ken mahoney, mike laguni,

heather loo mismis and rick santelli. heather, what did you make of the jobs report? >> pretty strong. i think it continues a long trajectory of pretty good trends on jobs and encouraged to see that development. >> ken? >> yeah. i think it's going back to this old wall street saying like this. when markets climb, they take an escalator. but when stocks come down, they come down by a way of elevator what you saw a few weeks ago and what's surprising and how strong this market is, we took the elevator back up again and we have a v-shaped recovery time and time again and we have to live with the volatility and embrace it. >> tie it back to the jobs report. jpmorgan and others says maybe within the next year, why does that have something to do with the snapback of markets or no?

>> i don't think so. i think it feels the fed tightening is a ways off and probably think janet yellen's company weighing longer for more evidence that we have a runaway economy. >> jeff taylor, would rereally want -- obvious, we want stronger jobs reports and people working. but from an economic standpoint and the financial markets and so forth, do we want that much stronger? because that means the fed is more likely to be raising rates sooner rather than later. thinking as a market person now. >> we always want to see a strong jobs report and what stook out to me is a six-year high of 25 to 30-year-old aim demographic of employment and we track the employment population ratio. it's a 76% in the month of october which, again, a six-year high. if we start to get that age group back into the housing market, and they start to be employed and start to actually first-time homebuyer takes advantage, that could really ultimately start from a broader economic perspective, start to

really be a catalyst or the housing market coming back and a broader economy. >> jeff, you have an interesting point here, though, about one of the more difficult pieces of the labor market recovery. talk about the difference between a lot of jobs creating and have created here today compared with the ones that were lost. >> great point. so the jobs are created today are about a $40,000 a year annual salary. six years ago there were about $60,000. so that's a huge deal. that's a third. looking at situations of people saying i want to make a significant first-time purchase, a house, a car, the savings are much less and it is harder although the jobs numbers are improving, where they're putting in the bank for savings and big purchase, that's not necessarily translating into the savings account. >> yeah. >> mark, obviously, a very volatile month of october for the u.s. equity markets. november not so much. what is the next catalyst you're looking for to move this market and which way do you think it

goes? >> well, bill, i think directionally upward over next six and 12 months. we're back up to where we were in the middle of september which is i think at the intersection of full valuations in the u.s. equity market that demands good news and today's report while on balance i think pretty good it met expectations in terms of what the market demands given a 16 times forward multiple on the s&p 500. >> do you think we just meander meantime? >> i could see us in a fairly wide trading range that grinds higher predicated upon earnings growth. i think that we have seen the best of market multiple expansion driving equity prices higher and means more demand placed on earnings growth and so far we haven't been disappointed on that front, certainly for q2 and q3 an continuing to see mid to upper single digit growth that's where it can grow commiserate with. >> rick, there's a whole

transformation happening here and i would like if you can the message it's sending. stronger u.s. dollar, the steady drift upward in u.s. interest rates, when's happening in the oil space now. i mean, what is the message here? >> well, i think the message on everything's terrific. it's all about the american energy renaissance and i think we're writing a chapter of repricing global oil and even though our oil is fungible and it's not necessarily to make prices drop dramatically here, if you're the big boy and you're throwing in, if we get exports and i think the new congress will consider that, then you can make a difference. i think we are changing the price structure of energy for the next generation. that's a good thing. >> higher or low, rick? >> i think lower. i think the technology is just amazing. >> yeah. >> and, you know, all the stories about fracking, contaminated the environment, you know, there's stories out there and independent studies finally getting done by major universities that show that it

isn't the technology of fracking this's a problem. it's the state of how they build the wells so, of course, you are some uses for the government. this is one of them. just like building a house. they need to have some of this signed off on. in terms of interest rates, today it was easy to tell if the market was happy or sad with the quality of the jobs report because interest rates dropped like a rock. and i think that says it all. it's good but not good enough. and with regard to any of the other issues on the dollar, listen, i think that the dollar going up, i've always thought that i'd rather have a stronger dollar verse a weaker dollar. they're putting the dollar index where it's at. >> i'm scratching my head a little bit at interest rates and seems like, again, while we're still not quote/unquote there, more and more people are looking through the details of the jobs report and even sort of an increase in wages saying, you know, signs are pointing toward the fed moving next year and not if markets pricing in anything

hawkish and do you think it's the jobs report today or something else in the world that would have pushed rates lower? >> it was the jobs report at 239. we were basically down to 239 and then 231. the boon acted the same way. the dax. the equity markets around the globe acted the same way. it was a good improved number and once again, the u.s. economy is better than the other economies of the world. are we supposed to be happy? relative e value igss only take you so far. we need 400,000 jobs to make a dent in the 92 million people that aren't looking for work anymore! it's a step in the right direction but they have thrown everything including a volkswagen and kitchen sink to get it going. it really isn't enough. >> yeah. we need free toasters now, as well. >> i think that rick's point also, we have so much slack in the labor market, until that's absorbed, we won't see a rise in

the wages. that's going to continue to hover flat and we have to see that slack taken out of the labor market. >> let mess move on to investment sectors, ken. i'm sorry. heather loomis, would you buy energy here? if you buy rick's notion of repricing the energy structure here in the united states, in fact, globally, would you buy energy here? is that good or bad for the industry right now? >> right. well, we are looking at a bond market perspective and energy outplaying the high yield portion of the economy and much more leveraged and we are not buyers of the energy right now. >> ken? >> you know, we think oil is a story for remainder of the year and for next year. and if you kind of look at it, look, we know oil prices are low and not ephemeral. by january, going up again. no. we think it could they this range for a while. think about the compounding effect as if you're going to the

mailbox every day getting a check of the government. that's the stimulus involved. we think it's a net positive if oil stays down for extended period of time, start seeing, you know, revisions for gdp, earnings for companies, it's a really, really net positive. >> you know the cap-x point here, ken. the ton of the capital expenditures that u.s. corporations make in this company contributes to gdp and from the energy and production space so you take some of that offline, you will have a drag. >> right. but two thirds of the economy is consumer bases. particularly feeling better about it going to the mailbox and get that extra stimulus check in the form of the foreign tax of oil and i think it's a net positive and an offset of cap-x spending of companies. >> heather, quickly go back to the question of rick an i were debating and love your perspective. why did interest rates move lower on the back of the jobs report and shows if not amazing progress, steady progress of conditions of the fed to respond to next year here.

>> i think it was the waging component of the jobs number that people were focused on because that showed about 2.1% year over year growth and from the perspective of the market, that wasn't enough to push the fed's hand towards tightening so you saw the fed funds future pr. >> got it. >> thank you all, folks. have a nice weekend. >> thank you. >> thank you for joining us. >> thanks, everybody. let's send it over to dominic chu with a quick market flash for us. >> we're watching shares of allergen saying if valiant pharmaceuticals were to make an increased bid for the company, the board would consider and repond to it in due course. earlier today, bill aikman who is making or trying to make a hostile takeover bid for the company said that valiant could raise the offer. allergan shares down by about 1%. as for valiant shares, down

about 2.5. an interesting new piece to the back and forth, kelly and bill. >> i love that. hey, if you make a higher bid, we might be willing to -- >> maybe. >> entertain that one. >> pay us more. >> yeah. love that. thank you. and the market's still under pressure. the dow off about 11 points. same for s&p and nasdaq, as well. after hitting record highs earlier this week. coming up, what a crazy story. amazon very, very quietly rolled out this voice activated speaker yesterday. connected to the cloud. it's called the echo. get this, buying the digital assistant is by invitation only. you heard us right. but will echo even move the needle on the stock that's down 25% this year? pros will weigh in on that coming up. up next, magnum hunter, maybe that's because oil is bounding back, as well. good news to a shale producer like magnum and the ceo gary evans joins us when we come right back. stay tuned.

welcome back. crude oil trading to the upside today, closer to $80 level than

75. jackie deangelis watching things for us. >> a pop at the close for crude oil. we finished today at $78.65. technical buying and a big move in heating oil to lift crude oil higher and i don't want to overstate. this is a pop that traders expecting for quite sometime. before we potentially take that leg lower, you did have slightly weaker dollar today and again 87 handle is not a weak dollar. still under 80 right nouchw. traders saying when the sentiment turns bearish, it is time to buy the trade and that's what you saw as we head into the weekend here. but traders saying that we could see more volatility next week. watch for that. back to you. >> thank you. we certainly will. plus the next guest divested more than $70 million in the oil properties and almost completely exited the oil space.

>> having said that, though, we want to talk about shale oil and what it means to the economy. joining us now for what the low coast of shale means to the industry, ceo of magnum hunter resources joins us, gary evans. . good to see you. >> good to see you both. thank you. >> what happens to the burgeoning shale oil industry? are you guys your own worst enemy for producing this and much pushing the price down? >> well, there's no question that our industry has a floor. we can't continue to drill wells at lower prices. i'd think that you'd have to get prices down in the $65 range to cripple industry and i think what saudi arabia is trying to do here in the u.s. >> why do you think they'd want to do that, gary? >> we have taken a lion's share, a chunk of their production. you know? we are not importing nearly as much crude oil from saudi arabia as two, three, four years ago so

they can only afford this for a short period of time and that's what the market is missing here. this is maybe a six month at most a year situation an you're not going to cripple this industry. our costs keep coming down. fortunately, we made a decision about two years ago to exit most of our oil properties so we have sold over 700 million of our oil and primarily today 65%, 70% natural gas. >> i was going to ask you why the sale now? do you know something we don't? do you feel like you're sitting at the top? >> i'm negative on oil over two years. we put in a lot of floors, protect us. like today, even though oil is $78 a barrel, i'm close to 100 because we hedged our oil and we're down to just 3,000 barrels a day of crude oil and the company producing 32,000, 33,000 barrels a day net and small percentage of the production. we are a gas company and that's where i think the future is for the oil and gas industry in the

country. >> one more question on this. are you saying you don't think you guys can make money in the shale oil business at these prices? >> no. down to 65, 65 is where -- >> i know. but you said you made a decision two years ago to get out of the business. >> mainly because i felt like oil prices were too high, they would drop. we were able to sell the oil production over the last two years over $700 million of properties over $100,000 a flow oil which is a premium price. >> it's fascinating. i'm thinking, as well, about, you know, the moves that harold hamm made at continental to not be hedged. you said it's because you hedged benefiting. what did you think about his move? >> i'm sorry? what do i think of what. >> the move of harold hamm at continental to take off the hedges and going all in and betting frankly the oil price will go higher? >> it's a huge bet and, you

know, i think we all recognize that crude oil is needed throughout the world. the economies, though, in china and india and europe, they're still not doing what they were three, four years ago. the united states is an anomaly looking at the rest oflts world and that's because we have such cheap energy prices. this industry bailed out the economy bringing all the natural gas, bringing the crude oil, that's allowing us to have the industries come back to the u.s. and thrive. it's -- our business is a bet. we're betting drilling wells and prices. you can hedge the bets by taking hedging risk and going unhedged and certain companies have different opinions regarding this. >> you're diplomatic about that. let's talk a moment about natural gas because to some degree it's had the same story line that shale's having right now. a lot of promise and so much supply out there that the prices were depressed. they've starting to move higher now. do you think that's for real and

where are they going? >> natural gas for the next 12 months is totally dependent upon weather and so when you give us a cold winter, we have high natural gas prices. mild winter it is low. however, long term, which is what i have to do when i'm building this company with my management company is we're bullish on natural gas long term. when you look at all the huge industries coming back, in beaumont and south louisiana, 1.5 billion $chemical plants and they're confident to have a long-term supply of cheap natural gas. $4 a gas, which is where we are today, i locked in this morning $4 gas for calendar year 2015. our rates of return of $4 gas 80% to 90%. we love $4 gas. >> sounds like it. >> a final question and thinking about the impact and saw the housing boom and bust and did

tremendous damage to the u.s. economy. are there any hidden risk, leverage, et cetera, gary, you see from the oil price boom and bust we're not fully aware of yet here? >> well, it's going to take -- one thing about our industry, it's very, very resilient and the more we drill, the more we understand the shale formations, our costs come down and i think that's a big fallacy that the middle eastern countries are making. if they think they're going to drive this business out, they got another thing coming. we continue to drop our cost so we can live with lower costs and the industry is getting better with our technology and we're able to drive our total finding costs down and the consumers can have a lower oil price and lower gas price. >> wow. >> gary, we don't wish you ill but i'm hoping for a warm winter this year. i'm sorry, buddy. >> i'm sorry. i'm hoping you all have got to use so much heat you can't stand it. >> okay.

good to have you with us. thank you. >> thank you so much. >> thank you. >> gary evans. fascinating stuff. 40 minutes to go. dow off about 20 points. art cashin reports it's still early and pressure in terms of orders on the sell side here as we head into the close. i love this story. amazon's new echo device, has it fallen on deaf ears already? the voice activated speaker connects to the cloud, promises to be an in-home digital assistant. sounds like siri? that's why someone of our next guest calls it a dud already. what do you think? our live poll is opening right now. tell us if you would buy amazon's echo. go to cnbc.com/vote. later, warren buffett's berkshire hathaway with numbers after the bell and dominic will deliver them when they hit the tape. that's all straight ahead. they're still after me.

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retailer is exploring the idea of selling up to 300 of its stores into a real estate investment trust and see the shares up by 35%. ab bercrombie & fitch dropped i the third quarter. the shares down by 16%. near session lows. humana falling after the health insurer posted weaker than expect expected. general mills moving lower after cutting sales and profit growth forecast and down by nearly 4%. intercept pharmaceuticals on safety issues and posted a wider than expected third quarter loss and down by 30%. and we'll send with salix pharmaceutic pharmaceuticals, tumbling. it's cfo resigned and as a result those shares down by 46%. bill, kelly, on the day's

session. back over to you guys. >> thank you. move over siri, there's a new personal assistant in town and a surprise move, amazon revealing echo. you can only get it if amazon invites as you a to get it. $199 or $99 for prime members to answer your questions, tell you the forecast, add item to the shopping list. >> i don't get that invited to be bought. we'll talk about that but whatever that's about. while some have been intrigued, one of the next guests had this to say. oh yeah. amazon echo in the house. he joins us now with the thoughts of tom hazelton and lance ulanoff. we want to hear from you folks at home or wherever you're watching us. would you buy the amazon echo, assuming you got the invitation, of course. go to cnbc.com/vote. todd, why aren't you impressed? >> my joke yesterday fills it in

a little bit. it's like we have already. we have siri, google now, we have microsoft. all the things allow you to say, hey, set my alarm clock. what's the weather? when's the score of this game? you can play music and do stuff like that. i feel like it's a delivery mechanism into amazon services and sort of is and just right now it lets you save products to a list that you can buy later. maybe if it allowed you to say buy products directly today and i feel like this is stuff we have. >> lance? >> a sneak attack. it's amazon's plan. getting a device in the house you're talking to all the time that's not only talking to you but listening to you. if you have to say its name, i don't know if that's the name of the voice assistant to engage but it's in the house and one step away from saying, i need more milk. or i need a new book. or i want to watch that movie now. making purchases directly through it, i mean --

>> would you buy one of these? >> yeah. well, first of all, i happen to be a prime member because that's a good deal. so if i could get one, i put my name on the list. i don't love the idea of being invited to buy anything. >> what is that? you have to be -- only like -- >> i think it's -- you have to be invited to g-mail, invited to google glass. >> how excited and desperate were you do get g-mail? >> very. >> how desperate for people to get google glass? >> no, no, no. it's way different to that. >> it's scarity. >> it might be a flop and see the demand ahead of time. that's the bet. >> it is a good way to feel out whether there's a market like this. >> well, it is like a -- it does feel like a beta test with the exception of we don't know if they put them out anywhere so it's really kind of an odd thing to do. going back on fire phone, 99% certain they have to do another edition next year.

they don't give up. >> good point. >> so you say you put your name on the list. >> i already did. i'm waiting. >> what do you have to do to get inside the ropes then? what are the qualities? >> call jeff and you beg. >> right. >> no. it's just put your e-mail in there and then it says, okay. you know? well, you know, it was like very quick. i think i signed in to my prime account. and then it said, okay, and that was it. that was really kind of all i know at this point. i do feel like it's a very strange way to go. >> i agree. >> i don't think we should underestimate what amazon is doing here. todd smartly listed all of those voice assistants and amazon was left out and considered one of the big movers and shakers. it always wants to be on all screens and buy things to act. >> todd, we all know and apple has been clear on this and google and everybody with the nest purchase and the next battlefield is the house and amazon, a move to get right in the middle of this.

>> this could be the center console for a smart home. i think what lance was just saying, keeping screens connected is more important and i think fire tv should be the hub which it looks like apple tv might be, as well. >> don't forget -- >> exceeding demand here. >> alexus sneak attack to be on every amazon device. you will be talking and interact with every one of the devices in the same way, a comprehensive circle of e-commerce which, of course, is what amazon is always about. >> todd, we want the know the second you buy one, todd, because i have a feeling -- >> i already bought one. >> absolutely. >> come on. >> we'll see if you're invited first. >> i posted a picture of it. >> we'll close the poll any second now on our viewer vote. there we are. i'm thinking jeff bezos won't like this results. >> i don't see the demand either. >> 55% of the viewers say they would not buy.

>> 45% said yes for something with no marketing, no big presentation with the headset. >> isn't that a market? that's like -- >> yeah. >> really good sales. i'll take 45% of the whole population buying my anything. >> because that's who's watching. >> i assume that's what's happening. >> jeff bezos wants a much, much higher number on the yes count. >> thank you. >> see if i put my name on that list. >> have a great weekend, todd and lance. 30 minutes to go here. market hasn't moved much. down about 20 points. again, we were a negative for most of the morning and turned positive this afternoon. a combination of everything from geo politics and even, yes, the news of the supreme court could be considering the subsidies in obamacare and put the space you should pressure and talking about that as mentioned the dow off 20 point this is hour. >> jobs. growing payrolls declining unemployment. so why are americans still anxious about this economy? the pros talk jobs and the

economy when we come back. chuck todd here to discuss his book of the obama white house and what happened at the obama white house today when mcconnell and boehner stopped by for lunch. that's next hour. we'll be right back. 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

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well, today's jobs report shows creation continuing. quality of the jobs and wage growth is issues for many americans. >> joining us, matthew slaughter, former member of the president's council of economic advisers and professor at dartmouth. also, with us, friend dennis gartman. matt, i mean, it's been called the goldilocks report today. yes? >> yes. it was a very strong jobs report on a lot of fronts. good job creation, unemployment rate ticking down. participation ticking up. on many measures it was good. the question mark is why isn't there wage growth? i think that speaks to the need for broader policy reform in washington. >> dennis, you're throwing in the towel? are you going long all in on the market? >> seems to be a bull market an

going to the sidelines it's absolutely the wrong thing to do. >> you and everybody, by the way. >> it seems like the pros are the ones not doing well in the market and seems like the public that sits tight and just allows monetary policy to carry share prices higher to do quite well. concerning the employment numbers, i think we need to pay attention to canada, also. because the numbers that came out of canada shockingly good. the world expecting canada to show minus numbers, maybe 5,000 to 7,000 jobs lost and given the fact that canada's population is one tenth of ours is equivalent of losing 60,000 or 70,000 and instead the numbers up 43,000. the equivalent of adding 430,000 nonfarm payrolls and the job market is quite good across north america and surprisingly so. >> matt, what needs to be done? you said the policy needs to do something about wage growth.

what would that be? >> great question. so, you know, the fed has done a terrific job with qe i think in supporting recovery in the broad labor market but the fed can't determine the quality of jobs that get created. that has more to do with congress and the white house do with the range of policies on things like tax reform, immigration policy, fixing our infrastructure, trade liber liberalization with the rest of the world and will shape going forward the kinds of jobs our companies in america creating and hopefully having high and rising wages. those are the policy things we need to focus on more now. >> and to flip it, you can, back to the market, as well, dennis, as you know, the gains are often made all the way up until the point at which the full recovery is kind of upon us. so perhaps this report further evidence that there's still time to get in and involve. uchb right on the dollar and talking about oil and to be

clear to everybody out there, would you recommend that for now coming to the u.s. stock market that they get involved? >> they should be involved. should they get dramatically involved? if you haven't been involved probably getting dramatically involved at this point might not be the best of all worlds and should you be involved? absolutely. be involved with the things to understand, steel and copper and aluminum. the basic things that are incumbent in normal economic growth around the world. so, yes, people should be involved. still a bull market. and it's the smart guys, the pros, who keep trying to call tops and trying to do it, it makes us look sillier and sillier. it's a bull market. it will continue to be a bull market. mark this down. it continues to be a bull market until it stops. >> words we can live by if not necessarily invest by. >> absolutely. >> and dennis, did you hear the words of gary evans earlier this

hour? fascinating stuff. >> that was a very, very good interview and people do not understand how good we are becoming, how sophisticated it is our drilling techniques, how much we're driving drilling costs down on a consistent basis. that was a very telling interview. and i think people should go back to the net and draw it up and listen to that. that was one of the best interviews i have heard in a long period of time. >> gary's a gunslinger. drilling or using the fracking process right now. matt, before we let you go, as well, a handful of states passed a minimum wage increase. there is a movement to try to get a federal minimum wage. that's not likely in the near term but there are -- there is obviously a desire for a higher minimum wage in many parts of the country. what impact does that have on wage growth and on the jobs market out there? >> so that desire is really understandable, bill, and doesn't speak to the breadth of concern of the quality of jobs

and looking at the exit polls on tuesday, a national survey said how do you feel about the economy? 1% of americans said excellent. and again, that speaks to the need for throughout the skills and kind of income levels in the u.s. for higher quality jobs to be created and minimum wage might help some workers and what matters more is energy revolution and support of innovations going on and the other things so companies throughout all industries feel more empowered to create the higher quality, higher paying jobs. >> great stuff, guys. thank you both. matt and dennis, have a great weekend, everybody. >> thanks. all right. 18 minutes left in the trading session. here the dow down 12 points. holding steady here. going out quietly after what i think is pretty good week for the markets and certainly much less volatility. right? >> that interview with gary evans will be up on c dnbcnbc.c

shortly. berkshire hathaway, building this country and build economic growth. >> indeed. later, hey, remember radioshack's super bowl commercial with nearly has-been star from the '80s? they forgot one person. watch. ♪ toy land toy land >> yep. weird al promoting radioshack for the holidays l. the new ads save the retailer from going dark? it certainly doesn't hurt weird al's career. but we'll show you the entire commercial just ahead on "closing bell." >> wow. do you have batteries? ♪ there's confidence...

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warren buffett's berkshire hathaway posting after the bell. >> we'll expect to see at least analysts expect to see an earnings number of 2,594 $a share. of course, we say that on sales

of $51 billion in the third quarter, a company with a very, very high share price and the biggest segments insurance, rails and energy industries. railroads could benefit of what appears to be improving economy. now, there were no significant catastrophic claims and could focus on how well the energy units fared in the face of oil prices. over three months, the stock risen about 10% you can see here and those shares very much flat, bill, kelly, after the bell today. back over to you guys. >> thanks, dom. >> looking forward to it. >> see you later. the dow turned positive. >> and hey -- >> what? >> art cashin saying 300 million to buy on the close, bill. >> there you go. buying the dow stocks apparently as we head toward the close and what's been a pretty good trading week. and later chuck todd on the

midterm shake-up. what can we read from the lunch at the white house? we'll ask him about all of that just ahead. stay tuned.

ten minutes left in the trading session. the dow up and minus signs for

the s&p and the nasdaq as we go out. larry mcdonald with me from new edge usa and independent investment consultant david darst. happy friday to both of you. >> happy friday and happy veterans day to the men and women who served next tuesday. >> absolutely. get the flags out. larry, what stood out to you this week? election, collapse of jobs numbers, other things. ecb meetings. what stood out for you this week for the markets? >> above all, bill, the two-year yield coming down as much as it did today in reaction to the jobs. look at this and the jobs number, average hourly earnings flat up on the month. you want to see the curve steepen if the jobs market is really -- had some strength behind it. it's flattening and 2-year is not buying the jobs number. >> still forecasting a slower growth economy. what about you, david? >> what stood out for me was the

poll, the american association of individual investors poll, bill, that's taken every week. taken on the 5th. every wednesday. november 5th. and it shows 55% bulls and dlsh 52% bulls and 15% bears. that's the same as it was early january when it was 55-19 as you recall and led to the big decline in january of 3.5% which is the biggest decline month that we have had this year. that having been said, the basically want to see retail sales kick in here for the holiday season. they've been lackluster. next friday we'll get a retail sales number for the month of september so you want to see how that is unfolding. the jobs numbers were good. the manufacturing is good. the monetary stimulus is in place. so far so good. but china, europe, retail sales. >> right. >> valuations are stretched, bill.

finally, that over excessive bullishness on investors. >> that is often seen as a contrary indicator with too many bulls and already in the market and run out of buyers of some point. larry, energy. we talked a lot about the decline. we heard from one of the guys who was up in and leading the shale oil industry. do you think prices are going much lower? would you buy energy as a contrary play here? why would you do? >> in the entire energy space, bill, the best buy is coal. the coal names have made a 10% to 16% bounce. if you look at btu. a bounce over the last two weeks. >> right. especially -- especially after the election, exactly. >> yeah, exactly. i think that's a catalyst for the next couple of months. really cheap space. i think they run for the next six months. i think that the republicans will undo a lot of damage of the epa created. >> also the energy space, bill, look at the oil price.

if it breaks device live below 75 to 70 range, further below that, then it's look out below. people are comparing the period to the 1986 period with the big decline in energy prices. that having been said, it was a great article in this morning's "wall street journal" of exxonmobil and hasn't done much this year and nice yield and they have alito way from exploration and production to the refining and mining and makes money with weak prices like this. >> the name ibm stuck in my home of an investment conference this morning and talking about what's wrong with ibm. larry, only just the strong dollar that's hurting this company right now or what are you doing with the beleaguered dow component? >> yeah. think of like the global gdp. right now europe, china and japan have 31 trillion of global

gdp versus 16 trillion in the united states. that's a big number so if that part of the world is slowing down, in the old days it didn't matter because the u.s. was 55% of global gdp. today we are at, say, around 23%. so companies like ibm, industrials, they're a victim of the strong dollar in this market and the weakness in china and europe. >> yeah. indeed. >> bill, ibm, 430,000 employees. 100 billion in revenues. 160 billion market cap. you can contrast it with facebook. facebook is 200 billion market cap. it has 8,000 employees. and a billion in sales. so, one of those two numbers is wrong. ibm down 14% for the year. facebook is up 36% for the year. >> something's out of whack. >> something is out of whack. >> i got you. thank you, david. larry, good to see you. >> thank you. >> new. >> we'll have the closing countdown for the friday. the dow up 5 right now.

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oil had something to do with that. finishing at least at this point of gain of 5 points here. and i guess that's the weekly chart over the shoulder there that we're looking at for the week. oil, this was the week that we saw big move lower and 78.54 the low for the week. 75.84 and since came back. bob? >> we did have a bond market rally today on the non farm payro payrolls. we did move down in yields. up in price on yields. >> still the flattening of the curve as larry was pointing out. >> i think that's right. i think the important thing here today is remember, you might say we didn't move much. all-time highs on the market and takes an exceptional bit of news to start moving the market. as i said before, things are not cheap now. most everything is sort of on the high end of the value range and particularly when we see

moves up in companies of big banks and in the last 5%, 6% moves, double-digit moves in some consumer stocks, it is going to be real headline news to move the market now. >> thanks, bob. have a great weekend, everybody else, as well. here's the second hour with kelly evans and company. thank you, by. welcome to "the closing bell," everybody. i'm kelly evans. this is a winning week on wall street. dow jones industrial average adding about 16 points. here as the bell rings. s&p 500 even turning slightly positive on the close. i believe that means for both the dow and the s&p here probably at new record highs. indeed. that's the case. d on the back of the jobs report this morning. midterm elections on tuesday. the nasdaq down about 6 points for its part.

with our panel this afternoon, zachary carabel is here. along with our own steve liesman on the panel and fast money trader tim seymour. welcome one and all. and the first question, you know, the pressing topic of the day is are we heading towards another russia default crisis? we've been talking about oil and energy in this country. is this the sleeper story of the year? we have two people here with more firsthand experience in this country than perhaps anybody else to have on the panel. >> i'm going to weigh in on a positive side. by the way, there's three guys, timmy's got the russian experience, evan does. we could do most of this show in russian if you like. >> da. >> that doesn't count, zach. you're out. >> okay. >> listen. i'm going to talk hopeful here. it was the drop of oil in the '90s that prompted russian reforms. when they ran out of money. now, ultimately, created a crisis. that was a problem but russia will not reform while putin's

coffers are full of oil revenue. a drop in the price of oil could be a hopeful sign at least medium to longer term for russia. meantime -- >> before things -- >> they need a $70 price of oil to meet the budget. even higher than that some people say. >> tim? >> giving it to tim? >> go ahead. >> kelly, it is very interesting. takes a sustained period for the price of oil to be down low. you know, putin is still marching around russia or parts of the crimea he is annexed and basically has an 80% to 90% popular support ratding and nobody loses power when they have 80% to 90% of the population behind them and takes a sustained period but you never know. you know, i was a student back in moscow at the height of the cold war in 1984 and if you told me in 1984 by 1990 or '91, the berlin wall will be down. i would have said, no way.

very unpredictable. >> tim seymour is with us now, too. tim, what do you think about the risks here to emerging markets, russia included and as the u.s. story is better and better on the back of the strong dollar, better momentum on the jobs report this morning? where are the risks now? >> rush why's a risk to itself and if you look at where russian central bank reserves are, this is what you were talking about. looking at '99, there was $13 billion of central bank reserves at best and now 450 billion. so russia can survive here but emerging markets as an asset class perversely as the world talked about more liquidity this week with the bank of japan and the ecb, emerging markets sold off. thises a dollar rally, largely this week and not entirely built off of the weakness of the yen and the euro. >> timmy? >> yes? >> i have a question which is interesting. you're right. they're claiming the 450, a billion of reserves. but notice that the central bank said not too long ago that they're not going to back it

anymore, they won't support the ruble and made me wonder do they have the 450? >> hang on for a second. we'll break in with corporate news and get back to this in a second. at&t, dominic chu, when's going on? >> at&t is going to acquire a mexican wireless provider of iusacell with debt. at&t will acquire for that price all of the wireless properties and approximately 8.6 million subscribers in mexico. it will occur after grouposalinas closing a deal. the headline here, at&t is going do get into the mexican wireless market by buying iusacell in mexico $2.5 billion with debt and say along the lines with regard to the wireless context

that it is serving 8.6 million subscribers and it's in the early stages, mexico is, of mobile internet adoption. it's an opportunity to bring world class mobile internet speeds and quality to mexico and create the first-ever north america service area of mexican and u.s. consumers and businesses. back over to you guys. >> dom, thank you very much. at&t sharyls looks like that -- i can't tell after hours or not but slight upward bias there. up by about .2%. zachary, we go back to at&t's results here and remember sprints, as well. not a lot of growth left in the u.s. and looking to mexico. >> yeah. i mean, obviously some growth left in the u.s. with next generation networks and probably plays into tower companies and other things. i actually think the mexico story is more interesting to methane the russia story. we fixate on russia and less on mexico and last i checked was part of nafta. the actually reforming

government. >> southern texas. >> so, you know, right. >> tim? >> well, i agree with zach in that, look, mexico is actually making major progress on reform. carlos slim is probably the loser here and the attacks on telmex and opening up of the industry. i think the whole emerging market thematic play they're leapfrogging tech nonology and s very positive news for at&t and i think you have to -- that's where you look for growth in the emerging world. the reason em is failing is because they're playing macro em. you can't just buy the index. that's the best way to do it. >> i sent a note to michelle and dom to find out if the story is linked to the deregulation that's going on in mexico. >> right. >> that makes mexico a really interesting story. in fact, related to the russia story because it's the opposite of the russia story. >> correct.

>> they're closed off, had great promise. didn't come true. mexico's a place opening up in the oil business and i think this is related to deregulation in the telecom business. >> a business that may fously made carlos slim the world's biggest billionaire. >> look. i think the interesting thing about russia is not that rush why's a messy place and the price of oil is down. a lot of excitement here. >> that's all for you. >> applauding for you. i think the real story around russia is the unpredictability and that's the real thing. i think going forward over the next couple of months we can talk about the u.s. economy, kind of churning. talk about the jobs number churning out numbers and unpredictability. what happens with iran and russia? those are the things to drive probably the stock market towards the end of the year. not so much around -- >> no, no. driving it if they're a risk factor. you're totally right. russia belongs in the camp of things to go wrong and clearly

on a path not tenable. yes, if there's a huge oil supply shock, i don't know where that comes from. also commodities which are the price falling apart. hurts russia. mexico and reform. when's brazil do in the new government of doma? what does india do under modi? it drives market performance. russia as you just said is a risk factor. i think really important to distinguish between them. >> tim? >> i've said this plenty of times. when you make money is terrible to bad. you doend need a major change in russia to make a lot of money as an investor. a lot of caveats. vrl risky. look at the russian oil companies making a lot of money right now as the dollar exporters and cost base is in rubles. be selective. not two feet into russia. i'm saying right now with the dollar, the dollar now i think is a week past bank of japan and europe and people thought it was going to be hawkish.

i think you can buy risk assets into next week. i think emerging -- >> hey, tim? >> steve? >> we have a crack team at cnbc. i'm talking, jonathan fortt our crack tech writer is writing to me. it's a direct result of the reforms put in place by president pena to encourage more competiti competition and investment in mexico. growth population and growing middle class make mexico attractive place to invest. >> didn't we just say that? >> that's interesting here. >> that's what we just said. this is at&t seeking out growth where they can get it and carlos slim owned the market and made it a noncompetitive market and now pushed out of the way. >> steve got to look really, really wise reading that with the glasses on. >> you know what they're? $2.99 from cvs and only ones to hold on to. >> there's deflation. we need you to buy did $500 from lenscraft earls.

>> i lose them. >> thank you so much for being here this afternoon, tim. it was a long night for everybody. stick around and catch tim at 5:00 p.m. they're talking twitter's ipo anniversary. we haven't talked about that yet with the one analyst with a sell rating on the stock. don't miss that. coming up mere, what was the most important number in the jo jobs report? a closer look next. a judge with good news to detroit and bad news to some of the public workers. we'll be live with the attorney who argued and won the case for the city right here on "the closing bell." keep it right here. you are watching cnbc, first in business worldwide.

big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

in case you missed it this morning steve liesman sat down with cleveland fed president in a rare interview. here's some of her reaction to today's jobs report. >> pretty solid jobs report across the board. as you know, i like to look at trends in the data and the trend has been up for quite a while. i think the payroll jobs i think are a strong indicator that the labor markets are improving. still room to do better. right? still people without jobs that want jobs and so we'll continue on hopefully with the economy

improving along those dimensions. >> for her reaction -- for reaction to her comments and to that jobs report, bring in indeed.com's chief economist tara sinclair and greg gibb with the panel and including steve today and welcome, everybody. i guess the first question, tara, for you here is to what extent there's work to be done and by the way this point about how many of these jobs being created today are lower quality than the ones that went away many years ago. >> well, i think there's still a lot of room for improvement today. today was good news and we're still looking forward to seeing more and more high quality jobs created and something to look forward to in the months ahead and we are seeing a greater diversity of job postings and the industries hiring last month. >> that's a good sign. greg, i mean, are we there? are we there at that point of kind of liftoff almost?

>> we -- i think we have passed that point of liftoff. i think the relevant question is are we practically at almost full normal element? the trend is impressive. the number today was slightly below estimates, it is the ninth straight month over 200,000. averaging 228,000 a month and up from last month and here we are in the sixth or fifth year of expansion and things are accelerated. jeremy stein said don't just look at the flow of news but the stock of news and the cumulation of strong reports tell you something. we are on the verge of being at full employment. >> i'll push back strongly here and i think we might be like in the third inning of the jobs expansion. >> wow. >> and the key to this is wages. let me just point out the lack of wage inflation and lack of overall price inflation is not just incidental to the criticism of the fed behind the curve. it is the most important and

salient fact. if this economy were on the verge of full employment, if the fed well behind the curve, there would be inflation. it tell you that policy is ripe for now. not only that but early days. we first put people back to work. we soak up the slack, early earnings in that and then we get people wage increases and hikes. >> i did not say the fed is behind the curve. not is same thing. >> well, they go together, greg. >> one of the reasons we have seen soft wage growth is even seen even softer prices. 1.5% inflation. 2% wages, not great but it is a real wage gain of 0.5% and if you look at the productivity numbers, they're very weak. in fact, you are starting to see wages consistent with the kind of poor performance we're having. >> although -- >> the interesting question is we could be back at full employment within a year with inflation settling at a level below the fed's target raising

an interesting question. >> interesting to hear from tara, i mean, we are not getting -- if we're getting higher quality jobs not necessarily getting higher quality jobs paying substantially more and a massive disconnect of the commentary we're having right now about a great jobs report which it is statistically and, you know, voter sentiment on tuesday about 78% of americans saying the country on the wrong track. even if you took it away from tuesday and did just the general population, 44% still think we're in recession. so i mean, tara, are we seeing better jobs that are proliferating or marginal proliferation of slightly better jobs? >> we are seeing better jobs out there but it is coming on slowly. so i think that's part of the reason why people respond the way they are with the slow improvement in the economy, it is hard to notice it. and people would like to see a bigger, more dramatic recovery after a big dramatic recession so many years now. >> i think if you look at what

bond market is saying, the bond market is basically saying that steve is right. i mean, i don't think he's right but that's what the bond market is saying right now. >> it's true. lower after the jobs report this morning. >> most interesting thing is that both greg and steve seem to be basically saying it's the end of inflation. you know, they're talking about some world going forward for the foreseei foreseeable future where inflation does not rear its head. >> the fed says we're very close to where we want to be on the employment goal and not where we want to be on the inflation goal and that is conducive to a scenario where they keep policy exceptionally easy, well past the point of unemployment down to 5.5% because they're not going to settle for inflation stuck at 1.5% or nominal wages at 2%. that means, yes, probably tart to tighten in the middle of next year as we expect and a slow trajectory. i do think that the bond market is carried away with it. i don't know why they rallied today off the number and broadly

correct that we're not going back to a 4%, 5% federal funds rate. >> last thing. >> i want to point out the important debate which is to people who are not in the workforce, unemployed, long-term unemployed with downward pressure on the wages. a pool of labor slack to come back into the economy that ultimately should animate fed policy right now? i think today's report's a victory for yellen. 400,000 people coming back into the workforce. i understand these are volatile data. coming back into the workforce at only 2% year over year wage gains. tells me -- >> steve, steve, steve, i got to make a quick point here. you're putting way too much emphasis on a household survey -- >> it's all we've got. by the way, the earnings numbers -- >> the participation rate barely moved out of the range. that's better than it going down and do not get excited about that number. >> i'm excited about it.

>> what's the labor market right now, tara? seeing the most wage pressure, the biggest shortage of labor. >> well, biggest shortage of labor continues to be in health care. i think even though we're seeing job gains there, there's still a lot of demand for health care out there. >> unfortunately, a lot of that's lower paid. >> i was expecting it to be i.t. >> another ten minutes to debate whether the fed has a role in changing the wage structure of health care workers. the whole dual mandate i think -- >> we have to save that for next time. thanks to tara and greg so much for being here this afternoon. really appreciate it. your company is fighting for a survival. who do you call to help save it? if you're radioshack apparently parody weird al to drum up christmas sales in a new commercial. first in the new song, detroit made bob seguer is toasting the motor city. we'll head to michigan where detroit is celebrating the emergence of bankruptcy after a judge's ruling. when's ahead for motown and the

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welcome back. another chapter closed in the detroit bankruptcy filing. the judge approving the city's plan. the public workers fighting hard against. scott cohn with the details now. hi, scott. >> reporter: kelly, the bankruptcy judge said that in approving the city's exit from bankruptcy now's the time to

restore democracy to the people of the city of the detroit and elected officials here were quick to pick it back up. news conference just wrapping up with detroit mayor and michigan governor rick snyder who orchestrated what remains a deeply controversial bankruptcy plan here. here's governor snyder. >> if you go back to july of last year, people had many different concerns and very few people believed we could see a successful conclusion that alone a conclusion in this time frame. it's here today. >> reporter: and when's here today is a plan that could get detroit on solid financial footing for the first time in decades. we're talking -- for city improvements, restoring services and new development here downtown. and perhaps most crucial of all, a plan that shores up the city's pension plan with only modest

cuts and keeps the art collection so prized by detroiters at the detroit institute of arts and creditors wanted it sold out and rescued. judge rhodes said that the settlement borders on the miraculous and that may be an understatement. kelly? >> all right. scott, thank you very much. there's more details on cnbc.com. with us now is the lead attorney for the city of detroit, david hyman and joining the information is david chrysburg not pleased with today's outcome. steve, most of the coverage of this has applauded the speed at which it's moved, the fact it's come to a resolution, that it is a new beginning now for detroit on better footing as you just heard our reporter put it. so what's your main concern about the damage done here? >> well, first of all, we support the plan of adjustment and pleased with the rulings and approval of the plan. we negotiated with mr. hyman from the city. so, i think from our perspective

this might have been the best outcome under the circumstances that existed in detroit going into the bankruptcy. but any time you get into a situation where workers' retirement security put in jeopardy, people that earned money had it taken out of the pockets, it's a troubling situation. moving forward, we're hoping for greater economic development in the city and we think the end of the bankruptcy is the beginning of that process. >> david, you have worked on bankruptcies across the private sector now, of course, this extremely high profile one in the municipal space. do you think it puts an end to the spate of bankruptcies some extent triggered by the financial crisis in this country? >> really, i would doubt that. detroit was the first and the most extreme situation facing american cities but the thing that has most challenged cities across the country, in fact, is the retiree legacy costs and the

fact that those costs have actually gotten just too large to handle. >> it's a great point, david. how so how much did the worker vs to give up in this case to get this settled in detroit, and what example or precedent is that setting for everybody else? >> okay. let me first say hello to steve who i was opposite for many months. he and i established a great relationship and he was very instrumental as far as i'm concerned in helping us get through the difficult case. so, i think it needs to be explained that, in fact, pensioners in the city of detroit now will be receiving on the safety side 100% of their current benefits. they will also get some but less than they were entitled to cost of living increases.

on the general retiree side, they'll get all but -- their benefits and no cost of living. >> okay. >> when we started this case, you know, 16 months ago, no one on our side at least and i'm not sure anyone on the labor side could have predicted this kind of result. and that's a very important fact here. >> i have a question for steve. in that regards many see as a -- i don't know, impending pensions crisis among the pensions out there, especially those for state and local and city workers across the united states and that's because many people and i don't know about the people on the panel don't believe that the current projected rates of the pensions of 7.5% to 8% to 9% are achievable. what's labor going to do when it turns out that the funds only pay out 3% to 4%?

>> well, i think the assumption behind the question is completely inaccurate. there's no pension fund of any magnitude with a 9% assumed rates of concern. >> currently 7%. >> yeah. >> that's outsized relative to when's realistic. >> well, you can say that but there's no facts to back up your statement. if you look at the average pension return, the median pension return over ten years it's over 7%. if you go back 20%, over 8%. 25 years, closer to 9%. you can make an assertion of rates of return. >> let's put it this way. >> if you use facts -- >> steve, here's all i'm sayinger f. equities, the return over 10-year period is 4% and the way do get to that 7% is by investing oftentimes and products like real estate, hedge funds, private equity. the kinds of investments that then cause asset boom and bust cycles in this country and don't necessarily get to the idea of the idea of 7% long term is

tenab tenable. >> well, in fact, it's been achievable in ten years and the ten years you cite and 15 years if you want the use that time frame. for 20 years, we'll go 20 years. so again, if you're going to make assertion, let's be accurate about it. they've been achieved. going forward, if we want to argue that our economy is not going to produce those kinds of year over year increases, that's a good discussion to have. and it's -- >> absolutely. >> speculative and recognize it's speculative. we do need to create an economy that works for workers. we need an economy with higher growth rates. we had a jobs report today. it's very encouraging. but we all know there's way too much slack in the labor markets so we need to pick up that slack, we need to have income gains. workers need to share in the gains. we also need capital to grow, capital is growing. we have record profits. >> steve, and david on this, having been involved in detroit,

detroit becomes this kind of laboratory of can you, in fact, do what steve, you just said we need to do which is create an economic system with a certain level of dynamism and detroit for the man fold and manifest problems provides a laboratory. i mean that in the best sense of the word and not human beings are but to be created. do you see that potential as we emerge out of this bankruptcy or as detroit emerges for creating that in detroit? >> last word, steve? >> may i just say -- >> the potential is there but i think what detroit really needs more than anything else is economic activity. solving the budget problem of the city is a necessary but not sufficient condition for detroit to be successful and i think what we have to adresds is going to have an economic activity within the city of detroit. >> david? >> steve and i have had this debate for over a year now and with great respect i think for

each other and i can tell you detroit's pension funds were billions and billions of dollars underwater. there are many reasons for that but one of the reasons, in fact, in our mind, in our view is the 7.9% discount rate and many municipalities in america are suffering the same shortfall in their pension funds because they are projecting growth and discount rate that is are just not realistic so in detroit we actually were able to negotiate a reduced rate of 6.75. >> okay. >> some people don't think that's enough but, you know, that's a huge step in our view and a huge accomplishment for the city of detroit and moving forward. >> it is the most important issue you could argue in this country today. thank you for being here.

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welcome back. talking about this earlier of natural gas prices. apparently wenter is coming. so-called polar vortex forecast for the area next week and cold weather stocks heating up the hot list today with allen at headquarters joining us now. >> hey, kelly. winter is coming. just like the "game of thrones" and investing editor john malloy looking at the stocks likely to pop when the temperatures drop. natural gas stocks are in there. he also pointed out generac. it might get a little recovery. too few hurricanes. cold to up the sales, huh? you know. he has a few others in there. do it yourself type outfits. number two on the hot list, the news that president obama sending more troops to iraq

basically doubling the presence there. that story, the subject of the middle east, always big with our readers so that story is burning it up right now. finally, because we tend -- a write-up of the q & an of mark zuckerburg this time with his employees. the burning question people seem to be interested in -- why does he always wear a grey t-shirt? basically, he said, you know, he's into the philosophy making too many small decisions in a day it zaps the energy. >> so true, by the way. look at carlos and not uncommon for ceos. allen, you do this. always in a black shirt. >> i the end to go that way and steve jobs went that way, too. you know? maybe a little rub-off. >> because of jobs or because of decision overload? >> when i get here in the morning, it is usually dark out and i can't see so this just makes it easy. black, i don't have to worry about it. >> i have fall fishing to get in. i don't see that polar vortex

coming for two weeks. next week? >> end of next week, steve. >> end of next week. i got next week to get out and that's it? >> this weekend. maybe we can meet up. >> sounds good. tie flies, my friend. >> have a great weekend. >> thank you. >> i can see you plotting as we sit here fie the weather turns, i'm done. i have to pull the boat. president obama meeting with republican congressional leaders today. how did that go? we'll have an update with "meet the press" moderator chuck todd with his take. is weird al the answer for radioshack many taking a big bet on the satirical singer for the holidays. we're back in two. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪

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here in washington. i think they're frustrated by the gridlock. they would like to see more cooperation and i think all of us have the responsibility, me in particular, to try to make that happen. and so, this gives us a good opportunity to explore where we can make progress on behalf of the people who sent us here. >> reporter: now, the president reiterated in that meeting that he intends to move ahead unilaterally on the issue of immigration if congress doesn't act. members of congress did not come to the microphone s afterwards. they didn't slam the president but kevin mccarthy, the house majority leader made clear they're not going to be happy if the president takes that step. >> we should have the wisdom to listen but the courage to lead and i think january should be an opportunity that we focus on that and not have a situation, why executive orders when you have legislative process? >> reporter: it looks like the die is cast on that and apart

from progress on relatively small things like trade deals with europe and asia, perhaps infrastructure improvement, it's going to be very difficult for the two sides in two years to come together on major legislation. >> indeed, john. thank you very much. john harwood for us this afternoon. joining me now is "meet the press" moderator chuck todd. his new book comes out this tuesday. we'll get to that. but first, welcome, chuck. great to have you. there's plenty of speculation and whether the president and the congress can compromise, will get anything done. what's your best guess at this point? >> well, really, just depends on if each side's detonates the policy nuclear weapon. for the republicans, it's about how much are they going to go after the health care law? obviously, with the white house, it's about immigration. right? that's -- that is the ticket for both sides, frankly, the gum up the works.

both sides are having this sort of threatening aspect. the white house said if they want to chip away at the health care law, we won't let it get in the way of doing other things. the republicans haven't quite said that if the president decides to go it alone on some parts of the immigration law. so i think the question is, can that get set aside, if it can get set aside, you see how small things get done on trade, perhaps they start at least corporate tax reform, some things like that. you get the feeling that health care and immigration together in some form or another could end up making the other side just say, you know what in that's too much. that's a bridge too far. >> chuck, are you hearing about the federal reserve? the couple of points here on wall street focused on is what happens with richard shelby, does he go after the big banks more so? two, does the federal reserve enter a renewed period of scrutiny and what happens with the two vacancies. >> the house republicans have

been tough on the fed and the audit the fed movement and all this stuff that's popular in some parts of the conservative base of the republican party. i wouldn't be surprised if you saw just an intense scrutiny on the fed in general coming from a republican-led banking committee. but let's see. i think the leadership is not as interested in that as individual members are. >> by the way, i'll quote our steve liesman on this. how do you make sense of an electorate speaking of the economy, the financial system, that supports raising the minimum wage, legalizing pot and electing a sweep of republicans across the country? >> look. i think it's a reminder that, you know, look. populist economics is popular and a cultural connection that the republicans have with sort of i think working class rural america that maybe on economics they probably lean more to the left even though culturally they don't fit in, they don't feel like the democrats want to talk to them, they don't fit in with

the democratic party and that's the disconnect is a populist economic proposals popular with rural america like you brought up the min maum wage and culturally they connect more from the republican party. >> and by the way, you're speaking with governor scott walker. is that right? this sunday. >> the lead guest. won 3 out of the last 4 years had a -- he's faced the voters in wisconsin. i guess the question is, does he want to start a fourth come pain, one that would begin in iowa 2016. >> so assuming -- chuck, what's with the book? in the middle of basically taking over "meet the press," having scrutiny and entering this position of having all these guests on and talking about the administration all the time, is there any problem as you see it with sort of doing both of these things at the same time? >> well, look. look. i think everybody's going to have a different perspective on the book.

what i was writing about is washington, president obama and his battles with washington institutions and that's the -- that's the framework of this book. it's not a liberal book. it's not a conservative book. it is simply a reported book. reporting and analytical about sort of the battles and the struggles that the president's had with washington institutions, whether it's the pentagon, congress, congressional republicans, congressal democrats and even inside their own democratic party so that's what the book chronicles. >> we look forward to reading it. tireless chuck todd, thank you for joining us this afternoon. >> you got it. >> really appreciate it. tune in this sunday. chuck will be talking to recently re-elected wisconsin governor got walker. local listings have the show times there. he's known for singing parodies of pop songs. radioshack hired weird al to be its holiday sales savior. the struggling company putting weird al front and center in a new ad. is it too little too late? we'll be right back.

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welcome back. we begin with our dominic chu here and some news on two big companies and potential ipo plans. >> here's what we've got on the internet front. we are getting a report out of the "financial times" that uber,

the san francisco-based car-based company, is in early talks with investors about possibly trying to raise a billion dollars in new capital. of course this is about six months after it also raised about $1.2 billion in another funding round. people familiar with the matter according to "financial times" say that the investors or the company's hoping to raise the money at a valuation of higher than the $17 billion that it got when it got its june funding series. so again, uber trying to raise about a billion dollars in new capital, at a valuation higher than $17 billion. that's according to the f.t. also according to the ipo story, momo has filed registration documents with the s.e.c. for a possible ipo here in the united states. momo is a social dating application based in china. you can think of it like the tinder or the snapchat of china. this is a company that's got 25.5 million daily users. that puts it about the same size as a zynga. again, momo filing plans for a

u.s. ipo. the company has listed morning stanley, credit suisse, and jpmorgan among the underwriters for its ipo. uber looking to raise a billion dollars. momo, the tinder of china, if you will, looking to possibly ipo here in the united states, kelly. back over to you. >> all right, dom, thank you. now, here's what we're going to do. keep this in mind for a second. $17 billion for uber and then think about this. radio shack's stock performance for the last few years, it's not pretty. the company right now has a market cap of about 95 million. and as we mentioned, weird al yankovic is now involved in an expensive new ad campaign. so gentlemen of the panel, the question remains, to what extent, if we want to talk about valuation, uber commands 17 billion. radio shack has a market cap of under $100 million. >> first of all, if you had said six years ago we would be having a conversation about uber, momo, and tinder -- >> the tinder of china. zplu you would have really had a lot of question marks being raised. i am no idea where the money is coming from the ad spending because i always had the

incredibly expensive and very well done super bowl ad where it was radio shack, back to the '80s, want their shop back. they're clearly spending a lot of money on ads, but unless there is something that people actually want to buy in the stores -- >> is this money down the drain or is there a point in doing it? >> not only is it potentially money down the drain i'm curious about where the money is literally coming from. >> well, it's probably coming from the fed. >> the reality is that how much is it worth? i don't know. can you imagine radio shack actually being here ten years from now? a bit like sears. a bit like these old retail stories. >> i don't see why not. there's a perfectly good niche for radio shack. if you're a geek like me and you need to find a single quarter inch male that goes down to two female rca plugs and you want a bluetooth connection for your stereo. i went in the other day, i spent $37. >> i do it online and i don't have to leave my desk. >> that's the problem, that people order that stuff on amazon. >> of course. >> you don't need an rca wire

connector ahead of time. you need it right there and now. >> and you may be entirely right but radio shack's current strategy is moving away from that. >> that's right. >> higherend -- >> and that's what it should be. you're going to go there and get your copper wire -- >> they should get steve to replace weird al yankovic. >> you should do their ads. >> there's a big difference in the hair issue. >> you would be more persuasive than him. >> maybe zach could do momo and tinder. >> there's a whole doppelganger thing going on with zach's hair -- >> and weird al. >> it's just remarkable the way in which -- >> by the way, $17 billion. not to change subjects -- >> but that's part of it. it's all part of the same story. >> only 17 billion for uber? if twitter's still worth $25 billion, why can't uber be worth 25? >> do they make money? >> i think it's a couple hundred million. don't quote me on that. but i remember talking to travis count -- >> global growth rate. expansion. and clearly a disruptive

company. >> this is where the fed criticism comes in, not to bring it all back to the fed, but when you have people looking for yield -- i always wonder when you get to a point in time where capital chases crazy ideas. right? it should be that the idea is chasing the capital. >> but which is the crazy idea? uber or -- >> if i had to put one on the krady idea it would be the revival of radio shack. if they remake themselves, that's great. >> i don't know. these are words that will certainly come back to haunt me. but $17 billion for a taxi company seemed a little over the top. >> but i can go onto my phone, get an uber to take me to radio shack, where i can buy those rca plugs, and then take me home. >> and then put it on your momo profile. we've got to take a quick break. more closing bell. final thoughts with the panel when we come right back. 4/7, but there are no branches? 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

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>> cisco. >> it will be steve liesman's next interview with a member of the fed will be the most important thing for the stock market unfortunately. yeah, unfortunately. >> i have a couple coming up but i can't talk about them just yet. >> there will also be some fed speak, so to speak, next week. how much does that matter? >> i don't know that it's going to be the kind of stuff the market is looking for. there are some presidents who will speak but in terms of janet yellen i guess i'd say a little critically i think she needs to be out there talking more about the economy. she's really decided to rely upon her press conferences as being the place where she puts the stamp. but things change and it wouldn't be unusual dr. >> you guys agree? >> barack obama can't be too happy with janet yellen. he wanted her to run around telling everybody how great the economy was. might have saved -- >> imagine if the mid-terms had been next tuesday on the back of the jobs report. >> i don't think it would make a difference because people still don't experience it. you have 10% earnings growth on

the s&p. clearly this is not all a fed derivative. >> 4% earnings revenue growth. take out 1% for europe. it's maybe 5% for the u.s. >> gentlemen, thank you for being here. it's been a lot of fun. look forward to steve's radio shack campaign. "fast money" is coming up in just a few moments with melissa lee. what's on tap? >> twitter's down 10% from its first day of close as a public company. so we're going to decide whether or not you should buy or hold this thing. >> straight over to you guys. >> thanks a lot. "fast money" friday starts right now. live from the nasdaq marketsite in new york city's times square. i'm melissa lee. our traders tonight are tim seymour, pete najarian, brian kelly, and guy adami. at&t just announcing a $2.5 billion deal. we'll have the details coming up. but we start with twitter. one year ago the company went public. the stock down 45% from its december highs. it is down nearly 25% this month alone. today's "wall street journal" out with a scathing piece on the company's management saying twitter ceo dick costolo struggles to define vision. what do we do here in do we need