airline service that continues to do well. [closing bell ringing] >> it was a real winner. it was up 130% in three months. david: all right. as you can see, the bells ringing on wall street. kind of a mixed day. tomorrow we get the fed minutes. investors look for some clues in terms of what the fed will be doing. kind of put on hold today. there are individual stocks that made big gains or big losses. we'll talk about all of those coming up. all the indices are down not by much. biggest hit was taken by the small and mid-cap stocks, represented by the russell 2000. we've got a very busyour. stay right there. "after the bell" starts right now. david: thank you so much for joining us today. we have a terrific show this hour. all-star guests. liz has been at the cme global leadership conference down in naples, florida, all day long. she joins us with some details

what is coming up in our interviews. liz? liz: looking back we just had the former ecb economist. michael milkin says we have to get government out of propping up the housing market. stop helping people with mortgages. terry duffy ripping some new cftc new rules. particularly collateral for treasurys. that is a nightmare for u.s. business. we have the sal khan, he started putting together youtube lessons on simple math problems. today, four million problems are solved per day for u.s. schoolchildren. he is changing the face of education, david. i asked him a question. i know you will be very interested to hear the answer to, have you taken on the teachers union next? sal khan. david: i love it. we have the chairman of medtronics coming on.

john coffey will talk about the jpmorgan decision. we have a lot going on. stay right where you are. we'll first of all take a look what happened in the market. we have jeff saut, raymond james chief investment strategist. you know him. he knows all the details. he called that downturn over the summer, exactly so. and he has another downturn expected. we'll be going to him for details. kent croft. he will tell us why he thinks that the fed is still the number one market driver. and larry shover joining us from the pits of the cme. larry i got your notes at about 9:00 this morning. first let's talk about the overall mood of trading. it does seem like there's a little pause in trading right now, no? >> no, you're exactly right. very quiet. very thin. for the fox family, the takeaway is that what this does, it encourages traders to grab ahold of any sled of information to help justify their trading positions. and you know, there is a dearth

of information out there. the lack of headlines that are credible. headline risk starts to punch far above its weight. and so with that in mind we're seeing air pockets. a lot of grinding away but no real conviction in the marketplace. david: jeff saut, it seems according to larry anyway, we're kind of teetering at the top right now, do you agree? >> there have been some die vern enzis that showed up last couple weeks. dyer vergences. suggesting the same thing here, to the next couple weeks. >> let me emphasize, jeff, for those who don't know, you timed last summer's pullback about 6% almost to the percentage point, correct? >> pretty close. >> you see another one coming. tell us about it. >> well, it just, the market is straight up here since october 9th, i believe was the near term reaction level. we've been straight up. a lot 6 indices are overbought on a short-term basis.

a lot of macro sectors are overbought on a short-term basis. i do think the natural forces of the market suggest some kind of pullback here which should set up the fabled santa claus rally into year-end. david: that would be nice. ken has specific stocks. i will go to him in a second but carl icahn, i know what you're saying, jeff, your is as sent any personal investments do you think carl icahn is talking his book in some way when he suggested yesterday there would be a pullback similar to the one you suggest? >> he is a lot smarter than me and a lot richer than me. it is is very difficult to call the short-term moves in the market but i they have you have a shot, it is just like flying an airplane in blacked out conditions, you have to pay attention to your indicators or controls in an airplane's case. right now it is suggesting you should be a little cautious. longer-term i think we're in a new secular bull market that has a lot higher to run. david: short term, next couple

months. kent, you think equities are still undervalued. how so? >> well i do. i think especially given the statuses of u.s. balance sheets of u.s. companies. the cash on hand, the low debt levels and what debt they do have is low-cost debt. balance sheets are the best i can ever remember. and valuations are not you know reasonable for a lower type interest rate environment. so, i think, you know, near term, things, you know, might hinge on interest rate policy but, i think that creates a, might create a really good buying opportunity for the long term. david: if there, listen, if there's a pullback before the end of the year i think jeff's right we may have a christmas rally here but, jeff, there is still a lot of cash on the sidelines. that gets to kent's point. why is there so much cash? >> because people think you need to have this feel-good environment to have a new secular bull market. in reality by the time you get

that feel-booed environment it is usually pretty late in the game. it was easy to buy tech and telecommunications stocks in 1919. it was not a real good strategy -- 1999. they only care about are things getting better or are things getting worse and i things are getting better. david: kent, one thing everybody thinks is better in the united states is the energy situation. we have energy creation the likes i've never seen in my lifetime particularly with natural gas. you have some natural gas picks. if you believe in natural gas why are these the ones? >> right. we really do, we think this is, transformative type stuff for possibly decade that gives us, the u.s. a special advantage. so i think any long-term portfolio deserves some attention here and, a couple of names, williams, they operate pipelines. so generally benefit from increased usage. quantity at that, quant at that

corporation. , or quanta services they buildout pipelines to move the gas around. southwestern energy owns some of this stuff. it is good to have exposure in a long-term oriented portfolio. david: kent, we also some health care picks as well express scripts. >> right. david: mylan, generic drug firm. explain why you like these companies. >> health care, any times of times of uncertainty like there is obviously in health care right now, we look through the names for opportunities, especially one that is will perform well over that longer-term period. these are companies that really are enablers of helping decrease health care costs, generic drugs obviously cheaper than branded. express scripts, manages pharmacy benefits. and that is, you know, helps drive costs down over time as well. we think there are very

reasonably valued at 12, 13 times earnings. david: finally, jeff, you called the august pullback almost to the percentage point. how big of a pullback do you think we need to see over the next couple weeks before we see any bargains back in the stock market? >> i think there is always bargains in the stock market. if the s&p breaks below 1760 i think you get a 7 1/2% pullback. david: jeff saut, great to see you. kent croft, and larry shover always a pleasure. thank you, gentlemen. we have fantastic guests including medtronics chairman with his beat and what obamacare means for his business. lizs have a terrific lineup. it is sunny here, liz but a lot colder than where you are. liz: but do you have this fountain, ritz-carlton fountain at cme global leadership conference? no surprise when they talk about leadership, they have sal khan of khan academy,

the man revolutionizing vacation. no summer vacation. no letter grades. of the mixed age classrooms? wait until you hear his idea of flipping the educational world on its head. stay tuned. that is next in a fox business exclusive live from naples, florida. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed

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david: even though the dow couldn't hold on to its earlier gains, three dow stocks managed to hit record highs today. let's go back to nicole petallides on the floor of the new york stock exchange. you know we call you nicky p up here. thought i would let you know. nicky p. like you're a rap star or something, nicky p. >> i lying it. maybe i will get a record deal. with the dow industrials, the monday's close was the 39th record close for the dow jones industrial average. we can't say today clocked in as a record however there were dow components that were stellar performers. if he own these names. they're pretty mainstream. johnson & johnson, home depot and 3m, all hit record highs today. all-time records. now certainly we've watched home improvement doing so well. both home depot and loews this

year. -- lowe's. home depot came in with profit, comp sales on the rise and overall the volume and traffic in the stores are doing great. so great news there for those three names in particular, dave. david: nicky p., thank you very much. >> signing out. david: i love it. let's head back to liz claman at global financial leadership conference in naples, florida. she spoke with exclusively with sal academy founder, sal khan. liz? >> when you look at some of the most well-paid jobs in america they are for engineers and yet go unfilled year after year here in the states because our educational system is ill-equipped to teach proper math, physics and science in the early stages of education which is what mike milkin was telling our viewers the last hour. no one has been doing anything about this on a large-scale except the son of a single mom raised in louisiana, a kid by the same of sal khan, who ended

up being a very high paid hedge fund manager, mit educated. he was loving his job until he started doing youtube math tutorials for his little cousin. she lived in new orleans and he lived in new york. he started noticing the youtube tutorials were getting hundred of thousands of hits per day. he turned around and founded khan academy. today 10 million unique visitors on the site every month. is it enough to overall what is very much a flawed u.s. educational system? >> what is exciting to me we're starting to see pockets of real experimentation, real innovation. we're seeing 30,000 classrooms, mostly public schools, use khan academy. and bottoms-up, grassroots type of thing. we're at the start of real innovation and transformation happening. liz: you're speaking today on subject of education reimagined. most people imagine education with teacher in classroom, with

kids at same age, learning at same pace. letter grades, september through june. how do you reimagine that. >> the whole notion is something i talk a lot in my book. that comes out of agrarian civilization. most of our kids don't help out on the farm anymore. the summer is time for learning loss unless you're more privileged. >> get rid of summer vacation? >> redistribute summer. and i would say some good things that happen during the summer. if the kid has opportunity, camps projects should be distributed through the year. can school should be more like a summer camp with more exploration. i think we've lost some of the magic of the one-room schoolhouse where older students have responsibility for younger students. i think a lot of teenage angst because they're not treated like adults. they need responsiblity and take ownership and have leadership. i think we need to rethink, instead of pushing people together at set pace and some students get an a, some students get a b, some students get a c and some students fail but, make

sure all students get the a level and time appropriate to master concepts. >> how about mixed age classrooms? that is something you talked about. how does that work? >> this is something i point out, most of human history the world was mixed room classroom. you may be part of a tribe or extended family and young kids are mentored by their cousins, second cousins, siblings, uncles and aunts. this notion we've gotten used to pause the school system separating five-year-olds they're in one batch and 6-year-olds into another batch, they doesn't interact with each other this is 200-year-old artifact, the industrial revolution, prussian education system. human beings it was all about -- >> have you taken teachers unions on any of this? many of this believe unions are intransigent. they don't want to see any kind of change? what kind of response do you get that from that? >> i think our, where we are in

the ecosystem we want to work with everyone. we want to work with classical reformers. we want to work with teachers unions or anyone that wants to work with us. and i think, there hasn't been, we haven't seen a huge amount of pushback against us base we're not trying to force this on anyone. a lot of 30,000 classrooms using khan academy, these are teachers deciding i think that might be a tool to help my children's learning. most teachers we met, whatever it takes to help the students learning. liz: you're expanding from math and science to entrepeneur lessons. you had people like sir richard branson, and elon musk doing some youtube lessons. what do you think, can entrepreneurship be taught? is that something people can be taught? >> entrepreneurship, create tivity, who knows if you can actually teach these things. i think some of this inate in a human being. if you go through your life never seeing examples, never seeing situations, oh that's possible. you know most students are not

getting a chance to meet sir richard branson or elon musk. but if they see interviews, thoughtful questions how did they get started? what were they worried about? those people are human beings. they are not so different from me and think a little bigger and prepare myself intellectually and academically that is in the realm of possibility. liz: you have some big donors or investors i guess, what would you call it if it's a non-profit. >> it is donors. liz: bill and melinda gates, eric schmidt of google. these are super smart people that believe in in you. you need more money, right? >> as executive director of a not-for-profit i would be remiss. we're trying to give a public good for folks. we absolutely need support. a lot of big donors rightfully kept us a little hungry. liz: some of the best-paying jobs in america go unfilled because we'reg out engineers and math and science in k 12. can khan academy, spin it forward in the future in your wildest dreams solve the unemployment problem in the

future? >> you know i won't make any promises. that's a big, that's a big problem and it is systemic in a lot of ways. i hope five, 10, you know, 15 years we can be part of a solution so that, you know, stem has been traditionally gated by students abilities especially in mathematics. if we can make math, right now percentage of students who really understand calculus might be 5%, 10%, 20%, if we make that 100%, all of sudden to gates to stem, careers in the demand will be much wider. >> don't stand in sal khan's way. 10 million unique visitors per month on khan academy. an amazing feat, david. he wrote a book, the one world schoolhouse. his vision for reimagining education. people like this who might be able to change the world at least in the united states. back to you. david: he is a great networker with all the entrepreneurs he

has plus corporate sponsors like bank of america. the guy knows how to work it, he does indeed. liz: indeed. david: liz claman from florida. we'll see more of liz coming up. the obamacare mess could be getting worse. is that even possible? there are questions about the security of healthcare.gov. we'll be going to washington to find out just how serious that risk is. the affordable care act will be one of the topics we're discussing with medtronic chairman and ceo. a medical device tax supposed to pay for obamacare, that is on this guy's mind. how will he deal with that? details are coming up. ♪ customer erin swenson ordered shoes from us online

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david: if you can believe it the debacle over the healthcare.gov has gotten worse. the big question, if people can get online and sign up on the site is the personal information safe? rich edson from inside the beltway. we heard about the problem but we have evidence it is worse than we thought. >> that a number of issues on capitol hill in d.c. today. president obama speaking about the botched rollout and no bigger gap between the government and private sector than i.t. and administration should rethink how it hires tech contractors. earlier on capitol hill a official designing healthcare.gov that the government needs to build 30, 40% of the website, mostly payment systems.

>> it was not designed for that many people. it never pass ad stress test and never passed indto end testing you're saying it was 100% ready. >> it was 100% built. >> built but just not working? >> working functionally. >> that is not built. if a car is built but you can't run the car, that car is not built. if a website isn't working it is not built. >> republicans on the committee release ad consultant document showing senior administration officials including hs secretary kathleen sebelius knew of technical problems months before the october 1st launch. yet continued to reassure lawmakers the site's construction is on track. the white house acknowledged there were red flags. nobody apriled the size and scope of the problems the administration experienced once the site was launched. in a separate hearing four tech experts says healthcare.gov false short of securing american's personal information

including social security numbers. the government is unlikely to fix the flaws egg by the end of the month. democrats say republicans are sounding unfounded alarm bells to scare away people from the website. there has only been one detected attack on healthcare.gov. the security expert says the government is failing to detect those attacks. david: jeez, i hate to think. rich, inside the beltway. thank you very much. the jpmorgan deal, was it a worthy settlement or a government witch-hunt? we'll break down that deal later in the hour. more from florida, liz? liz: i'll tell you, david, they're watching you here over my shoulder in the ritz-carlton in naples at the cme conference. coming up we're taking it to minnesota where we have a fox business exclusive with the ceo of the world's largest pure play medical device-maker, medtronic. the ceo, omar ishrak, yes they beat on both the top and bottom line.

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[ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer ] lease the 2014 e350 for $579 a month at your local mercedes-benz dealer. david: time for a look at today's market drivers. there were red arrows across the board today as the dow couldn't manage to hold on to earlier gains.

it crossed the unchanged line about 48 times today. six out of 10 s&p 500 sectors ended in the red with utilities the worst performer. fold, rebounded a little bit today, climbing .1 of a percent to settle in $1273.50 an ounce. this coming after investors were spooked a bit yesterday on indication that is the fed will begin tapering sooner rather than later. but you know how that goes. oil climbed above $93 today after gaining .3%. this comes ahead after u.s. inventory report out form tomorrow. analysts forecast a increase of 1.4 million barrels of crude supplies. well, medical device company medtronic is up more than 40% so far this year. today he have about the opening bell, the company report ad higher than expected quarterly earnings, liz. liz: so what is the winning strategy that's helped to live the company's shares this year? joining us now in a fox business exclusive is omar ishrak. he is medtronic chairman and

ceo. we welcome you, mr. iraq. you -- ishrak, you spoken to viewers in the past quarter and said the creation of the affordable care act, you would work around it and work through it and beat on both the top and bottom line. what do you see now as we start to see more full implementation of it? >> well, liz, this is just the beginning. you know the real challenge that faces us in the country and in the terms of health care is the transition from a system that is based on a fee-for-service model to one based on value. i think that is ahead of us. i think there are plans afoot to take us there. but that transition will happen in the coming months and years. and, us as a medical device technology company, our value is always realized well after the services are provided. so for us to be recognized for that value is pretty critical for the long-term future.

david: let's talk specifically about the medical device tax. it's a 2.3% tax. it would affect companies such as yours. now some lawmakers are saying perhaps we can modified or even get rid of that tax. susan collins, senator from maine said the tax could result in the loss of 43,000 jobs in the united states. and, richard durbin, who's a democrat who said we can work out something, i believe on the medical device tax. have these lawmakers come to you, to ask for your suggestions? >> well, you know, through the industry body we've engaged with these lawmakers and through that the industry position is well-known. i would like to point out from our perspective as a company, that is something that we really can not control. and, it is certainly something -- david: you can certainly influence, mr. iraq. when lawmakers say we'll work with the industry to work something out, that indicates they're offering you a hand to pull you into negotiations. >> well, sure.

you know we can do that, but you know there's lots of areas which we can influence. that is not the only one. where we spend our time is important. certainly this is an important topic but the key is, we face challenges like this every day. we've got to overcome these challenges and we have to focus on areas which we can control and we can use to grow our business and provide good solutions. more than in the united states and around the world. liz: let's look at the structure of your business. you're looking to do two things. one to get a better toehold in emerging markets. and number two you would very much like to make some higher costs, well higher-priced devices so you can actually get better margins. how do you mix those two when you know in many cases emerging market's patients or potential customers are not able to pay such high prices? where do you make the two meet here? >> first of all our goal is not to create higher-priced devices. our goal is to create hard value

devices which our users get benefit from and we get a fair price based on that. that is important to distinguish that. that is an important element of our strategy. second these devices in the short term to mead yacht term, even in emerging markets are a big need. you know, there's a substantial population in emerging markets where, who can afford the health care that is belle established in the developed markets who do not have access to them. to do that we need to create infrastructure in emerging markets, provide awareness and education, through which we can, we can provide a lost very valuable health care to these countries. that will create a platform which we can go to lower cost devices in these countries and as their wealth increases the markets in those countries will correspondingly grow. liz: which devices are your hottest sellers at this point? what do people need the most right now? >> well, health care is something that, you know when

you're sick you need it. if you look at major diseases around the world, you have cardiac disease. you have got diabetes. you have degenerative spinal disease. all key areas we're in are important disease areas. now which product line does well in one quarter versus another, there are lots of dynamics around that. even the last quarter, for example it, was interesting to note that, you know the icd business, defibrillator business has been under pressure for a while. on the back of, of a couple of new products and on the stabilizing market, actually surprised people with its growth. that certainly is an area that is strong, but in addition, our surgical technologies business which helps with spinal and other kinds of surgeries is also very strong area for us. >> let me follow up with that. about the defibrillators we're interested in that and how it's grown. i'm wondering get back to

obamacare for a minute, that legislation, which will affect all medical industries in this country whether that will focus on certain devices open others? a lot of pharmaceuticals will say perhaps a focus on generic drugs right now because of obamacare, rather than specialty drugs. could you for example, be focusing more on defibrillators rather than stents? >> i don't know if that is, the health and human services secretary kathleen sebelius care law is itself is fundamental driver towards that. we've got to focus on understanding the clinical value of our products and where the penetration level is the lowest and whichever country we're in and make sure we're addressing the appropriate, the need for appropriate utilization of those products. david: let me give you an example if i can. >> sure. david: the fact there will be fewers doctors to administer to a greater number of patients. >> sure. david: some say there will be too few doctors. as a result of that wouldn't that force you to focus on items that would be more general, that

could be administered deposited in somebody's body by a nurse rather than a doctor for example? >> well you know, that making products simple and easy to deliver is as you going to be something of benefit not only for this country but around the world. let me add to what you just said. given that shortage of potential resources, use of, monitoring people at home, making sure that people are well after they get a procedure, i think that is an area too of real interest. and you know recently we acquired a company called cardiocom which we do cardiac monitoring. that expanded the scope of our offerings from products to services as well. that will help in the upcoming world of cost reduction and cost efficiency. david: right. >> keeping people at home. keeping them away from hospitals for needless visits or the emergency room will be of great value. so that's a very important move for us and i think an area of particular interest.

liz: omar, one quick last question and it is an age-old question. >> sure. liz: you guys have done amazing work as you develop the things. you take all the risk, put out all the money to develop these device,. people wonder why western-developed nations pay more for a devices than emerging nations, as well as pharmaceuticals as well? do you know the answer to that question. >> today the prices of devices across the world for equivalent device is not that different between china and germany and the u.s. i mean there are variations but they're not always -- david: whoa. okay. we lost our satellite feed with omar. we want to thank him for coming on. omar ishrak, from extraordinarily successful medtronic. we thank him for joining us. meanwhile the feds launch investigation into the tesla model ss, all those fires what

is going on? it prompt ad immediate response from tesla founder and ceo elon musk. there was a little up tick in the price today. how worried should investors be? we'll tell you everything investors need to know. jpmorgan and ceo jamie dimon and the department of justice agreeing to details from the settlement for the mortgage mess but did the government hit the right target? we'll ask kilometer yaw law professor john coffey. if you know john, you want to stick around for this one. ♪

david: jpmorgan, the largest u.s. bank, has just reached an historic $13 billion settlement with the department of justice. this is the largest amount for any single company in history but who was the government punishing? why are current stockholders of jpmorgan forced to pay for the misdeed of those long gone from the company?

joining me now to break all this down for us is john coffey, columbia university law school professor. professor, wonderful to see you. thank you so much for coming in. what do you think of the settlement? >> it certainly shows the government is truly become more punitive. think back to just eight months ago, following the hsbc bank settlement attorney general holder in effect told congress that some banks are too big to jail. i think he has moved very far from that position. he wants his legacy clear as a very tough enforcer and as you just said, this is three times the next largest penalty ever imposed which was on bp. david: but the question is punitive against whom? a lot of people say, look the people who did the bad deeds are gone from the company. maybe some of them are there, maybe if they're still there, they're not ones being targeted, it is the stockholder, is that right? >> we have the problem of the ghost in the machine. the government is not telling us who did it. corporations are legal fictions.

they don't themselves make decisions. flesh and blood, human beings do and somewhere behind this 13 billion of wrongdoing someone made some very bad decisions and no one yet has told us. that other shoe could still drop. we could still see the u.s. attorney out in sacramento bring indictments. but until that's done, this is not a completed story. david: that's why our justice system is so focused on individual responsibility because the whole concept of collective guilt seems to run against individual responsibility that we hold dear in this country. >> i do agree with you this much, that general deterrence work best when individuals have to bear responsibility for their actions. that is what i think will deter other officers in other corporations. this is not quite like the "london whale." in the london whale only victims were shareholders and they bore the whole cost. here the victims are investors who bought the mortgages and there it does work to public niche the corporation and shareholders but i think the

better system is to put more weight on individual accountability. david: some people do see this as punitive. they see it punitive against one man, jamie dimon who has spoken above all the other voices in the top banks being critical of this administration and its regulatory financial policy. do you think there is any credence to that charge? >> i can't buy that. jamie dimon agreed to this and think this will put this matter behind jpmorgan. they know longer have to fight a continuing and frankly hopeless war with the government. david: well that is very interesting. you really think, that is it. that individual will not come in with class actions, et cetera? >> i agree there will be civil litigation and admissions this time are much tougher than the past two but i think this does resolve mr. dimon's position f there was continuing two-year bat -- battle, the board of directors might decide he is not the right guy to get peace and

resolve this dispute. he comes out as a peacemaker with the support of the board of directors. david: a lost pension fund, i would venture to say most big pension funds have a little bit of jpmorgan chase, if not a lot of jpmorgan chase. will this affect their holdings. are we seeing the u.s. government penalizing a an organization whose tentacles reach into all of our bank accounts? >> let's see what the stock prices. my guess the stock price of jpmorgan today will not go down because of this settlement because it does mean for future that jpmorgan can come back to its main business and no longer have to worry about fighting the government. i think other banks may have greater problems convincing their shareholders they can do the same. david: here is the other thing. we are, this money isn't just going out in space. part of it is going to people underwater in the housing mortgages, et cetera. isn't some of this money, maybe a lot of it, perhaps even adding up to billions, going to

speculators? that is people who speculated in housing who made a bad bet and therefore don't deserve a payoff? >> nine billion will settle federal and state claims. the other four billion is basically going to homeowners. that is where the government to a degree is playing santa claus. they're telling people who will get principle forgiveness on their mortgage, reduced interest or people will get mores in the future at reduced costs and possibly on reduced quality terms. all of that is not a direct consequence of the wrongdoing. it is the government trying to benefit constituencies it wants to benefit. i'm not saying it's wrong but there is an element of playing christmas santa claus here. >> john coffee, columbia university law school professor. thanks for coming in. appreciate it. that was clear. elon model s electric cars are under investigation for

those fires. recent one was disturbing. the probe might be a blessing in disguise for musk. how so? we'll tell you coming next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. sometimes they just drop in. always obvious.

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david: national highway traffic safety administration open ad formal investigation into the

safety of tesla model s electric cars. this follows the report of those battery fires after cars were struck by roadway debris. jo ling kent joining us with more. jo? >> david, in a statement this morning the nhtsa says they're looking for safety defects involving the undercarriage of the model year 2013 tesla sedan model s. elon musk requested this investigation. this appeared on a tesla website and hoped to bring about a longer-term, positive outcome by requesting this investigation. quote, there is a larger issue at stake here, if a false perception about the safety of electric cars is allowed to linger, it will delay the advent of sustainable transport and increase the risk of global climate change with potentially disasterous consequences worldwide, unquote. despite this, musk seems to be uncomfortable with the attention all day. he lit up twitter asking, but why does a tesla fire with no

injury get more media headlines than a 100,000 car gas fires that kill 100 people every year? what this makes incredibly unjust, the model s to date has best safety record on the road, no deaths ever. this investigation could take several months, musk vows to extend model s warranty to any fire damage even if the damage is caused by the driver. tesla's stock fell 40% since the first fire on october 2nd. this could result in a recall the shares were not affected. they closed up 3.7%. but he is still trying to have damage control. calm potential buyers promising if the nhtsa finds a problem, tesla will make changes in all cars, old and new for free, dave. david: bringing in climate change in the argument. very interesting. jo, good to see you. key economic reports will

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where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. ask your doctor about axiron. david: time to go "off the desk." what is the most you would pay for a swimsuit? australian jewelry designer ann middleton teamed up with lapel maker,

940-k. that is $940,000. has 220 diamonds, australian sea pearls. it will be at sunseeker show, where es, australia at the end of this month. we asked you on twitter and facebook if you think jpmorgan's 13 billion-dollar settlement hurts stockholders more than individuals responsible for the crimes? dave on twitter, he told us, of course, it is out of the shareholders pockets. vaz on twitter told us, a little more conspiratorial, it will never hurt those intended and that is why it was all agreed to. you guys are smart. number one thing to watch tomorrow will be federal reserve release of october fomc minutes. investors will be examining every single word looking for any kind of hint on the central bank planning to begin tapering of its bond buying program. pull back a little on money creation. let's head back to liz at cme global financial leadership

conference for some highlights of her terrific day in naples, florida. liz? liz: specifically the fed, david, i'm glad you mentioned that. everybody is talking about that moment when the federal reserve does announce it will begin tapering. i moderated a panel today with gary becker a top professor who is nobel prize winner in economic science at university of chicago along with richie prager at blackrock. he is in charge of all the trading platforms and the plumbing what goes on with the trading and fred, who is ceo, you can't see all of them, sitting on stage, ceo of td ameritrade. they all mentioned very concerned about that moment and how trades will then be effectuated. specifically they were also concerned about regulation. we sat here in a fox business exclusive with the executive chair of the cme, terry duffy, who took a swipe at the commodity futures trading commission newest rule that requires anybody that is trading a big chunk of treasurys to have collateral to back up u.s. debt. here's what he said.

>> i don't think it is going to hurt that trading market. i think it's a public relations nightmare to be honest with you for the united states of america. liz: david, a lot of thoughts right here from naples. back to you. >> time for france france. -- melissa francis. melissa: in this era of megastorms and natural disasters a new concept in the work that could change aftermaths everywhere worldwide. it is an amazing break through you haven't seen anywhere! even when they say it is not it is always about money. melissa: electricity without wires, not underground. no wires at all! can you see it? think about this. every disasterous storm from the severe tornadoes out in the midwest to the typhoon in the philippines to hurricane sandy, they all end