postpaid subscribers. postpaid subscribers. [closing bell ringing] it is what all the analysts are looking for. they expect a increase of 350,000. we'll watch that as we listen to the bells ringing on wall street. that is the end of the trading day but nowhere near the end much news on stocks as we await at&t earnings. should come any moment. the stocks are trading down today as we mentioned. there are individual stocks like google that are doing extremely well. generally this is a pause in that upward action of the market. all the indices are down, not by a lot. nothing, nasdaq is just over .5%. that's about as deep as these losses go, cheryl. cheryl: david, time for front page headlines for everyone. it is really about boeing. boeing's stocks hitting an all-time high today after an upbeat earnings report. the aerospace giant announceing a 12% profit jump and raising their full-year forecast to 7. -- 787 on track.

david: mile-per-hour airlines parent amr currently fighting government objects to their proposed mergeer. >> defense contractor northrop grumman the stock is on the rise after announcing much higher than anticipated third quarter earnings despite a slight drop in sales. >> new report saying home prices rose in the slowest pace in 11 months in august. federal housing finance agency saying prices increased by just .3%. cheryl: european central bank president mario draghi is promising to put euro banks through a more promising stress test to boost confidence in the banking sector. david: glaxosmithkline says drug sales in china plunged 61% in the third quarter. huge drop. the pharmaceutical giant was hit by bribery scandal in china which damaged its ability to market drugs. we have a lot of news just about to report. at&t about to come out.

"after the bell" starts right now. david: let's get right into today's market action. we have earnings coming out. joe keating, centerstate bank executive vice president. he says slow economic growth may lead to lengthy business expansion in the u.s. todd horowitz down in the pits of the cme. we'll start with jo ling. jo ling kept has word from at&t. go ahead, jo. >> we have a beat for at&t coming in at 66 cents for a beat of 65 cents we were expecting. revenue coming up $32.2 billion, which is a beat of 32.19 billion. taking a closer look at million new wire countless and wireline broadband connections were established in the last quarter. we'll to through a little bit more, dave, but i will send it back to you now.

david: the stock by the way is not moving a lot. the news is how many postpaid subscribers. they were expecting 350,000. as soon as we get specific number on that we'll tell you. todd horowitz, you say even with good numbers we saw at&t may look to go down from here. why? >> hi david, hi cheryl. you look at the stock it had a nice 10% rally off recent bottom. based on technicals coming back to double top. i think they're expecting and built in the good numbers. if there is slight miss on subscriber base i think you could have a real big selloff. other than the stock will sell off a couple percentage points. based on rally we had. 10% rally coming based on numbers. they made numbers on top and bottom line which is nice for a change but i think you will see selling from now. cheryl: joe, subscriber additions in third quarter, include postpaid net adds

361,000 versus 351,000. that is strong number. a gain of 1%. what do you make of that? >> i think slightly above what we were expecting. you have got a company that is paying a dividend of over 5% yield. just a great place for investors to put their money while it has rallied most recently look on year-to-date basis, given the rise in treasury yields during the course of the year, it is actually lagged the overall market. so actually if we get a little bit after pullback in at&t as todd was saying i think it would be a great place to put some money to work. david: we'll talk specifically more about at&t. we'll keep the number up. i want to go back to todd. talking about the roof of a lot of stocks. we've been bumping our heads on roofs of all these stocks as we see the new highs. we're always told this time is different. this price or this time this stocks seems like it is pricey. this time it is different. you hate that phrase. why? >> those are the four most crucial words we always hear on

wall street. every big major move in wall street always this time it's different. look, the bottom line is this. if companies don't have real earnings, if they don't really produce revenue and growing, this time is never going to be different. eventually fundamentals have to catch up with the stocks. what is happening with the rally we've gotten away from a lot of fundamentals. i'm a technical trader which is great except eventually we have to have real growth. the house of cards we're building underneath this market is going to collapse if we don't get some real revenue growth which we're not getting. david: hold in there for a second. jo ling kent with more information on at&t's numbers. go ahead, jo. >> that's right, david. 1.2 million smartphone subscribers added. record of post paid earnings report. at&t saying nearly one million net subscribers added with as we said before 360,000 wire countless postpaid which they say is double. looking u-verse revenues.

revenue growth of 2.4% versus year on year, the last year at same time. back to you. cheryl: todd, there are a few more numbers coming out here. i want to go back on this issue. this of course is the smartphone market. this is a crucial market for at&t. smartphone sales were looking for 6.29 million. they're coming in 6.7 million. that seems like a substantial number to me, todd. what do you make of it? >> i think that's a great number and they should, listen, we hope they continue to grow. it's a great company. it has a lot going for it. i'm glad they're starting to beat numbers because it is time we start making real numbers to see some real growth going forward with these companies. that sound like a good number. hopefully the stock will rally. does pay a nice dividend as jo says. that is great. david: one of the things about this stock it hasn't had kind of bump. todd mentioned 10% jump but look year to year over a 12-month period. it hasn't gone up spectacularly

as a lot of stocks. because it pays out a healthy 5% dividend it is more regulated than most stocks, right? >> they're, david. remember we had had a real headwind for telecommunication stocks and utility stocks on the year which at one point was doubling yield on 10-year treasury note. that held your bond surrogates back in the stock market. david: almost like, dare i say it, almost like a bond. it is almost like fixed income when you're talking about at&t stock, right? >> well, david, it is actually better than fixed income because the yield, the income is tax advantaged and it is over 5% where as look at 10 year treasury note, you're fully taxed and earning 2.5%. i would take at&t all year long relative to ten year treasurys. cheryl: joe, what you're saying about the stock versus 10-year treasurys, this is dow component, we'll watch it when the market opens, joe you're concerned about the u.s. economy and that is the consumer, 70% of the u.s. economy. do you not worry about specific

data we're getting out of at&t and what it means for the rest of the economy and the consumer? >> i think the telecom space it is one of the most predictable growers we have in the u.s. economy today. one of the real keys in our opinion about the economy it is well-documented that this economy has been far below average and very lackluster in nature. good news we'll have a very extended, long business cycle. it is going to rival the business expansions of under president clinton, under president reagan and under the presidency of president kennedy. david: hold on a second. let me go back to todd for a second. under ronald reagan, under that recovery we had growth of 8% for several quarters. we're just limping along under 2% growth here. how much longer than the market continue to boom when the economy is just limping? >> i don't think it can. that is the point. that's why i think we're in a bubble. that is why this time is not different. we have to eventually have real growth. we are not getting real growth

pretty much across the board. you saw it in caterpillar this morning. you have to have real earnings growth. you have to put people back to work. we got the jobs number yesterday which true unemployment in this country, i don't think anybody says is 24%. you look at real numbers -- david: 24%? where do you get the number? >> i get from the bls, bureau of labor statistics. that is real number, 41% of people not working but out of that 24% that want to work are underemployed or not working. u3, u3 works one hour last six months you're considered employed. cheryl: gentlemen, thank you very much. joe keating, todd horowitz, we'll come back to you shortly for the s&p futures close. david: good stuff. cheryl: at&t, we just reported this, breaking news, saw it here. at&t beating on earnings estimates for the third quarter. will the wire countless giant expand overseas? we'll break it down for you. >> the department of justice is not the only problem facing

jpmorgan ceo jamie dimon seen here. he also has a multibillion-dollar investor lawsuit on his plate and there may be others coming. former federal prosecutor doug burns weighing in on that in a moment. cheryl: that takes us to our facebook question. we want to know is jpmorgan's jamie dimon helping or hurting the bank? tell us what you think. we'll bring you your answers later on in the show. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded?

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david: it is not as big as at&t but angie's list reported earnings. they are way down after-hours. let's go to nicole petallides. what's the deal on angie's list? >> it is so interesting because the chief financial officer seems to sound so positive. the numbers are quite weak and the stocks is dropping exponentially in after-hours, down 16%. let's break down the exact numbers in the third quarter. the loss per share, this we can't say earnings, the loss per share, the loss was a loss of 23 cents. estimates were tore a loss of 20 cents. so disappointment there, coupled with disappointment in the revenue numbers latest quarter, $5.5 million was the actual estimate versus 66.1 million which shows

weakness. conference call at 5:00 p.m. so a lot of people will tune in to that to see what further comes from this. a lot of disappointment. the cfo and ceo talks about record number of new members. they made significant investments in the business. they have seen some solid growth. so the rhetoric from the executives is quite different than the numbers facing me right here on this screen. back to you. david: we like the product. thank you very much, nicole petallides. angie's list down 15% right now and going further. cheryl: well, there you go. the s&p futures are closing. let's head back to todd horowitz in the pits of the cme. todd, what is on your mind? >> a little buying at the close, not heavy but we've got off a couple points. i think market will work its way lower watching the jobs market and other news. i think we're working our way lower and i think we might have a ceiling here in s&p and i look to be a seller of the market

right now. cheryl: thank you, todd. david: at&t reporting third quarter results moments ago with a beat on revenues and earnings. let's break down the numbers with david burks, hilyard lions senior vice president. david, start with the postpaid wire countless subs up more than expected. they were expecting 350,000. it was over 36,000, that was good news, right? -- 36,000. >> that is real good. they came through on that front. encouraging on wire countless side. that is always the most important side, wire countless margins higher than expected looks like about 42%. consensus was 41.7 but that number might be a little weak because of strong smartphone sales. but the number held up better than we anticipated. cheryl: how important is the conference call going to be, david? there are some key strategic issues investors have with regards to expansion, europe, potential regulatory issues in the united states. what exactly are you looking for when we first hear from the cfo

and ceo of the company? >> sure, no question, cheryl. we want to see if the company reaffirms their guidance. all year long they have been saying they expect revenues to increase more than 2% in earnings and to increase by 8%, thereaboutses, upward single digits. want to see if they re-emphasize that. in terms of what they might do with the 5 billion proceeds from the tower sales that they announced earlier this year, pardon me, earlier this week. and do they have any intentions of going into europe? there has been a lot of speculation they might and they said they have some interest in that area. david: david, you have actually price target of this stock of $38. as we mentioned before a lot people buy it not necessarily for the stocks price but to hold it to collect the 5% dividends but what makes you think it will go up to 38? >> i think in time, david, they will finally get recognized they're the proverbial tortoise plugging along. we like it income with

account seeking modest capital appreciation potential. you mentioned the dividends. they have been increased 29 consecutive years. we expect them to raise it a 30 consecutive year in december. impressive track record and nice yield in low interest rate environment. cheryl: what do you think impact to discuss the fact that apple is not coming out with ipad air? is there expectations with excuse me, apple's new products that this will give a boost to at&t or is it more about a samsung or a nokia at this point? >> oh, at this point i think might give them a modest boost. obviously they want to offer the full array of products out there and obviously they're going beyond just the iphone in the last year or so as the iphone's available everywhere now but the numbers look pretty good on that front. i guess just bottom line it looks like a pretty solid quarter, a big meet, a big beat, no, it was not but it was okay. it was a solid quarter. david: it was a solid quarter

but here's one risk and it may not happen but if the economy slows down even more, i mean it is already just kind of limping along at 1 1/2%. >> right. david: if it slows down even more aren't mobile subscriptions one of the things people might cut back on? >> that is certainly possible. you could have less iphone sales. could you have less smartphone upgrades, no question. people might cut back on services. so is there a direct correlation to the economy? sure, there is. maybe they're a little less sensitive than a cyclical but sure, they would be impacted as well. cheryl: smartphone sales, 6.7 million. is that good enough number to you? >> that was maybe a little lighter than expected, cheryl. i believe the consensus was 6.9 million. cheryl: it was. >> so they were a little light there. it will be interesting to see because typically the fourth quarter is a strong quarter and the company said on september 20th they had better smartphone sales in the quarter than they anticipated and perhaps that might mean a little lighter smartphone sales

in the fourth quarter. david: and finally the bugaboo of all these companies are federal regulations. are they kind of gumming up the works? >> nothing particularly noteworthy right now in terms of on the horizon but, it obviously bears watching but i think they're in relatively good shape on that front. it would be interesting if they however, they wanted to make a move in europe and if the department of justice, for example, would intervene should they decide to make a move overseas. cheryl: david burks, thank you very much for the commentary and walking us through the numbers and we'll see what the call, and ceo and cfo have to say there. thank you very much, david. david: by the way we have breaking news about janet yellen's nominations hearings. those could be quite something particularly when rand paul gets in the mix. apparently because, now, i'm quoting the white house here, paperwork, there has been a delay in the time at which we will have those hearings. any hear something not likely to

happen before mid-november. so about a month from now is when these hearings may come about. mid-november is what the white house is saying because of paperwork will be the soonest we will get the nomination. she is expected to be selected, to pass through the nomination proceeding but they could get quite heated in some of the testimony. so mid-november. that is when you will hear -- cheryl: heated confirmation hearing in washington. david: imagine that. cheryl: say it isn't so. david: all right. cheryl: raymond james coming out with its latest earnings. the firm's ceo paul reilly will break down those numbers and tell us where he sees growth coming from in the next quarter. david: also will jpmorgan's ceo jamie dimon fend off all the prosecutors, all the regulators, all the trial lawyers that are piling on to his firm and on to his back right now? a former federal prosecutor will give us his take in just a moment. ♪ peace of mind is important when you're running a successful business.

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cheryl: we want to follow up with breaking news exclusively that you saw here first on fox business. looks like confirmation hearing for janet yellen to be the next federal reserve chairman will be delayed. peter barnes joining from us the white house with his exclusive reporting from there. peter? >> that's right, cheryl. what we've learned was, calling around the president nominated janet yellen to succeed ben bernanke two weeks ago and normally we would hear from the relevant committee here, in this case the senate banking committee when it was going to hold the confirmation hearings.

made a few calls, according to one committee source they haven't gotten paperwork yet from the white house to even look at to even schedule a confirmation hearing. so this source says, assuming they do get this paperwork soon, the earliest they could hold a confirmation hearing for janet yellen would be mid-november. and, as you know, ben bernanke leaves at the end of january and the congressional clock is ticking. they're going to be very busy around here later this year. they have got obviously some recesses for the holidays and they have got the budget battle and all the fiscal things and other issues that they're dealing with. so it is getting, it is not, it is not too tight on time yet but the clock is ticking. so we'll wait to see what else we can get on this for you. cheryl: get exclusive reporting -- >> no comment from the white house. cheryl: we have our viewers on story right now. peter barnes, thanks very much for the report. >> thanks, cheryl. you bet. david: back to jpmorgan now. on top of the tentative

$13 billion settlement with the department of justice jpmorgan has another deal with another group of institutional investors. this could cost the bank close to $6 billion. joining us doug burns, former federal prosecutor. doug, pull back for a second here and think about what is the purpose of this prosecution? >> yes. david: there is no direct restitution that i can see. >> right. david: a lot of people, individual investors and so forth will not be paid off. the people who caused the problem, a lot of them aren't even at the bank anymore and the folks being fined are actually stockholders. so what is the purpose of the prosecution? >> you are making a great point and i think lurking in your argument the idea this is sort of after the fact, going back, given the coloss al nature of so-called 08 mortgage meltdown of mortgage-backed securities. make it appear we're addressing the problem is the only answer i can cobble together because many of your points are good ones. a couple experts i talked to made great points, why take that much money out of the private sector, put it in the hands of

the government? that is point one. why have criminal prosecutors with sort of threats lurking in the area of criminal prosecution extracting these massive fines? somebody has to look at this from 30,000 feet and say what is going on here. david: why justice delayed is so dangerous. >> absolutely. david: you could put finger of the law on folks that don't deserve it. folks say equal application of justice. folks say why single out jpmorgan. folks talk about jamie dimon and disagreements with the administration. jack lew, our treasury secretary worked for citigroup. >> yes. david: began his job in citigroup with 2008. working for a unit of citi called alternative invests, according to "the wall street journal" they were infamous for overseeing structured investment vehicles that actually hid mortgage risks out of citi's balance sheets. >> it is totally legitimate point to be saying, well, wait a minute, is there some element of

selective prosecution lurking in the rafters as well? meaning in simple english is this main culprit here and were there many, many and was this entity singled out. this is ripe top i can for discussion in this analysis. david: jack lew entered citi, in january of 2008 largely after the bad mortgages were bundled together. the fact he was working for the same unit. >> right. david: are we likely to see enough pressure for those concerned about the non-equal justice or non-equal prosecution for us to see other prosecutions not only jpmorgan and citi and other banks? >> there are so many components to that recipe and that calculus. political factors, relationship factors, doj factors and it is very hard to handicap that in terms of what will really play out but i agree with you. another point i want to highlight off your remarks was a lot of these bundled securities were inherited by entities and the critical point there, how do

you single somebody out say you did wrong, you did that, when in fact as you said it may have been somebody else already gone. i think you're right. david: individual prosecution, bad enough to fine an entire institution. stockholders who had nothing to do with the bad deeds, that is bad enough. >> right. david: what about putting a finger on an individual? what if jamie dimon spif specifically is singled out? why single me out, why not go after jack lew or politicians encouraging these loans. >> that is a great question, will we see individual criminal prosecutions with a caveat, i don't have a crystal ball, i don't think we'll see that. the transactions are too overwhelmingly too complicated. they were talking about inheriting prior people's conduct, i don't think you can say that. david: former federal prosecutor doug burns. >> my pleasure. david: cheryl? cheryl: raymond james one of the best known's names in the

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david: time for a look at today's market drivers. stocks drop s&p falls on mixed earnings reports of the caterpillar was biggest loser in the dow. copper posting its biggest drop in 12 weeks after rising interest rates cutout look on demand in china. copper dropped 2% to settle in at $3.26 a pound. oil fell to a three-month low as u.s. supplies rose more than forecasted. prices fell 1.5% to settle in 96.86 per barrel. cheryl? cheryl: just moments ago raymond james financial reported fourth quarter earnings beating street expectations. david: what helped drive the firm's fourth quarter earnings? how much of a concern are the increasing number of bank regulations and stress tests and all that stuff? we're joined by raymond james ceo paul reilly in a fox business exclusive. great to see you, paul, thanks so much for coming in. let's pull back and talk about something that concerns you a

great deal which is the retail investor. we have seen a lot of articles how the retail investor is skiddish, scared off by this market, that they're very suspicious of the games, despite these incredible highs that we've seen recently. have you noticed that as well? what are they doing, retail investor if they are scared of stocks? >> well, i think they have been scared in general. you can't say that our actions in washington and have given us a clear path. david: true. >> i think they are skiddish. what you've seen is some lightening of fixed income, especially long term because of fear of rates going up but a lot of that, some has been going to equities but a lot more has been going to cash. so the investor is still very, very conservative, waiting to see what the direction's going to be. cheryl: paul, cheryl casone here. let's talk about these numbers. you had a real strong beat on the earnings per share, 93 cents. estimate of 62. the revenue actually beating as well, nice top line beat there, so when you look at the overall

numbers one of the things that an analyst told us is the expenses is something he will be focusing on with you in your report today, in particular after the acquisition of morgan keegan. have you been able to geter conr this quarter, fiscal fourth quarter? >> yeah, i think, cheryl, when we talked about a year ago, right, during the integration, we were focused on first making sure we kept the advisors. that we got our systems in place, had the conversion and then we would focus on expenses. if you look at the year i'm pretty proud we had 20ish growth in revenue bottom line in eps for the year and you're seeing in this quarter a number of things that made it a very big quarter. if you look at the beat, 35 to $40 million, depending if you're gaap or non-gaap, almost a third was tax adjustment planning strategies which is one-time thing. another 20% had to do with the great red quality of the bank and reserves there. the rest was operational driven

by very strong mergers and acquisition activity in our capital markets division, very good trading profits in fixed income and the third part was these operational synergies and costs we've taken out are now flowing through in the p&l. david: paul, cheryl of course drills down. i look at the bigger picture. that is why we're a good team together but you've got about two million companies all over the world you have accounts. you're kind after barometer for investments, to is happening, you mentioned the shift to cash. there is more of that going on. what other shifts have you seen in investment strategies? >> well, david, you're seeing a little more international but i think people are kind of holding the course, that, shift has been out of fixed income. the fear that as rates go up people will have losses and longer-term instruments we've seen a bigger move even out of firsted income mutual fund where they're not quite sure what is in those instruments. a little bit more into equities. the investors are heavier into

equities but it is just slight. it is not showing a confidence. so the mark ate's up, they're investing but they're not confident in the direction. i actually think in washington if we can come with a path and a clear path and get through this budget issue, get through the deficit and have a direction where they don't think we'll close the government down every three months, that we're kind of bullish on where we can be with stocks. if we get that uncertainty hyped us. cheryl: sorry, paul, you've been very vocal, your cfo as well has been vocal about the concern not only the fact that you have regulatory pressures but jpmorgan, big banks are under the microscope of washington. what do you make of this $13 billion settlement with jpmorgan? >> i don't know all the facts but jpmorgan has been a great institution and i think jamie is one of the iconic leaders in the industry so i certainly don't know everything that's going on. from a distance it looks punitive. they actually bought institutions and some of these

businesses and inherited the problems but helped during the downturn to really bail out some of the problems. from a distance it looks pretty harsh. david: you say punitive. do you mean because of jamie dimon's views on regulations and such, they're just going after him? >> no. i think that, you know, there were certainly, some institutions they acquired, some mortgage practices and things but they actually helped bail out those institutions. so, you know, i can't, i certainly hope it is not political. but, you know, the fines seem very disproportionate for institution helped stablize the economy in a very difficult time. david: you upgraded the stock by the way in july to a strong buy. is it still a strong buy in your eyes? >> i have to look at our analysts. they're the experts. i just try to operate our company. cheryl: operations are strong, operations are strong. again you're beating on earnings and of course you beat on revenue. paul reilly thanks for joining us right after the release. david: thanks, paul.

appreciate. >> thanks, david. thanks, cheryl. david: good stuff. forget the tape, the global economy could be headed for something our next guest called, code red. he compares central bank easy money policies with a surgeon who puts patients on morphine and never takes them off. we have to go off on what happens then. cheryl: you wake up. netflix says there is more to worry about whether or not it is overvalued. we'll take a look at the company's biggest rival and whether netflix can remain king of original content in streaming video. ♪ [ female announcer ] who are we?

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millennium wave advisors president who saw his book actually for the first time. coauthor of "code red" how to protect your save frogs the coming crisis. the crisis, thanks for being here, john, is all the money printing, we've never seen anything like it all over the world. not just the fed. all central banks are doing it. we've never seen anything like this before, so far not a great deal of effect. inflation has basically been under control. no change unfortunately unemployment, but you have a chapter, chapter 8, what will happen when it all goes wrong. what do you think happens when it goes wrong? >> well, let's rewind the tape and go to the beginning. in 2008, 2009, the fed was absolutely right to come in and say, we've got a crisis. we've got to fix this and to provide liquidity to do what they had to do. they put, brought the patient in. it was in trauma. it was bleeding. put him on morphine. let's get him where -- cheryl: talking about tarp?

>> tarp, everything that they had to do. we never took him off morphine. he's still there and now, we talk about, well we'll take taper, 10 billion, oh, my god, the markets go crazy because we've gotten addicted. >> what is the market missing though, john? stocks are hitting triple-digit gains again for the year? all based on stimulus? >> like any addict, you think stimulus, makes you feel good and you don't want to live in the natural world anymore. what we should have done, and, qe1 you could argue. qe2, they have wasted bullets. they put stimulus in they were afraid if they didn't do it the markets might have to learn to walk on their own just like when the doctor bring you out of surgery, get up, walk, do whatever. we have a, we have an economy, a world now, that is just not the u.s. fed. it is the bank of england.

european central bank. especially the bank of japan, that are injecting massive amounts of liquidity. it is finding itself into all sorts of asset classes especially into emerging markets. we have housing bubbles here, hither and yon. the u.s. cheryl: europe. david: john this, is television. we only have couple minutes here. >> i'm sorry. >> hold on a second. i have to cut to the chase, the first question, so what happens when it all goes wrong? >> we have another 2008-2009. it will be different in nature. but what the fed is doing creating a minky moment. instability, more things are unstable, more instability we'll have the at end. the fed is trying to manage the cycle. they don't want to let anything go up and down. we now have a third mandate for the fed. it is the stock market. bernanke's essentially said, and

this is my call. i'm responsible, market says, yes, yes, please give us more of that. cheryl: you're forecasting market will take that. >> oh, sure. cheryl: what about currency markets? >> depends which market against who. cheryl: japan, ours, euro? >> we were talking about being in dallas. i will finance my new apartment in new months. wrap entire thing in yen. i will let abe and kuroda pay for my mortgage next five years. we have two chapters on japan. they're committed to taking the yen to half where it is today. the bank ever england is doing everything they can to bring it down. germany, because they have to compete with japan, they will have to, at some point create a fiscal union in europe and begin to mutualize the debt to get into the money printing business. it is currency wars on true steroids. david: timing is everything.

the question everybody wants to know, i think a lot of people would agree with you that the markets are close to topping off, when are they going to crash? >> i don't know. nobody knows. i would be looking, i mean if i was looking to put money to work today, at valuations that we have today i would be very cautious. i would want to be very, very targeted. if i buy something today, i have a very specific reason i want to target it. i'm not buying index fund. i'm looking to say markets are cheap. on trailing earnings, forward earnings are never predictive. they're just guesses. on trailing earnings basis this market is in the top 10% of market valuations that doesn't project well for the next 10 years. so you can't be an index investor. you need to be very specific, very -- cheryl: your stock picks, you have to be. >> have to be. looking at value. looking at companies that are maybe not in, they're not narrative stories. cheryl: right. >> you don't want to be buying

tesla at this point. cheryl: we'll have to bring you back, for a stock picking segment. john mauldin, the new book, "code red" how to protect your savings from the coming crisis. there is the book. david: come back an see us. >> i will. david: netflix is not only game in town when it comes to original programing. next we'll find out how amazon is trying to steal netflix's crown. cheryl: everyone remembers the scene from anchorman when john burgundy take as sip of scotch. david: i love scotch. i love scotch. cheryl: we'll explain. ♪

david: is netflix's bull run almost at an end? it was up close to 400 bucks. down 10% after their own ceo said the stock was overpriced. cheryl: netflix face as new threat from a formidable foe. dennis kneale joins us now. dennis. >> hey, cheryl. netflix's "house of cards", when the online streamer hit new record highs and was looking to out-hbo, hbo, netflix face as challenge on its favorite turf, original programing like "house of cards" that you see here. and from a frightfully larger

foe, the every on any of russ amazon. next month their prime video service unveil as new 11-episode comedy, alpha house about john good monman. about four republican congressman who share the same house written by a guy who pillories gop, dance bury creator, gary true dough. we have betas about valley startups. they have three kids shows next year and 11 pilots. with usual a lack criminality, amazon is treading on to the -- alarcrity. netflix paying homes say they watch the original shows and the company styles itself as a hbo rival and says it will double the original program budget next year. never mind that so far the new shows aren't giving a big boost to netflix's subscriber base. amazon stock is up over 40% this

year. netflix stock is up 10 times as much. amazon with more than $60 billion a year in revenue, it is well over 10 times as large as netflix, maybe 15 times as large. that means amazon could increase the competition that netflix has for top program suppliers and that could raise prices that netflix will have to pay for new shows such as orange is the new black. it's a pretty lesbians in prison series. wonder how that could have caught on. just as netflix is deducting cost of these flue shows far earlier to reflect the shorter shelf life of a new show. now that viewers binge on them and gobble them up all at once. dave and cheryl? david: maybe me, pretty lesbians in prison shows, i could skip them. maybe me. >> you're watching that baby and taping it like crazy. david: not that one. cheryl: i watched it is very good show. there is character development, i swear. >> character development. very good. cheryl: i made that one up.

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"anchorman", ron burgundy. he had a famous scene in the film drinking a glass of scotch while on the air of the just like david asman does. david: not my. >> i love scotch. >> it involved ron burgundy look-a-likes. david: i thought it was scotch flavor. talking about the real thing. also off the desk, take a look at this, i was skeptical of this, folks, whether onion story or not but supposedly the real thing this is the most expensive toilet paper in the world. australian company, toilet paper man, is selling 22-carat gold toilet paper for $1.3 million the company so far only produced one roll. they claim it effective and completely safe. the pricey roll cops with a free bottle of champagne. it will be delivered personally to your door. >> i buy it when they learn how to spell personally by the way on the website. number two thing, on website.

economists expecting sales to climb by 1%. >> then we have the number one thing to watch, which is weekly job countless claims. economists expecting claims to drop by 18,000. >> "money" with melissa now. david: we'll be watching. >> let's see what is going on in washington. they're still having a lot of trouble with obamacare [laughter] first the website is all screwed up. that has a bunch of glitches. now people are getting busy signal when they try to apply over the phone for obamacare. so you can't use internet. you can't use the phone. and now fax machines are like, look who has come crawling back to mr. fax machine. [cheers and applause] melissa: that sounds about right. i'm melissa francis and is what's money tonight. crisis management, government style, the president and white house trying to get out in front of the big sale. but from a business standpoint, you are watching what not to do. we've got the scoop on