david: and "star wars." [closing bell ringing]. liz: closing bell sounds on wall street. david: we started out with overnight the futures didn't look good. they looked like they would pop and came down in morning trading. we ended up with all indices in the green. not spectacular but enough to push us into new record territory. the dow jones industrials up 66. nasdaq up a sizable portion as well. intoday sighs are close up to a half. disney earnings straight ahead. "after the bell" starts right now. liz: disney up actually%, widely-held stock but we'll get them to you. charlie smith of fort pitt capital group, why now is the time to buy industrials and lance robert of sta wealth

management. why he is running toward the energy names, not walking. he is running. mark sebastian in pits of cme. we begin with mark. i don't know where to start. we have three, four, five records here. >> unbelievable the momentum of the market. until something changes that we creep higher. we come out of the funk, huge selloff followed by a major pop. the markets are starting to look what it looked like during august with the slow, creeping, daily up days of you know, half a percent, a quarter of a percent. the one thing that draws my interest is the vix, volatility index. last time we were all-time high. that was near 12. now it is near 14. that shows there is still pent-up fear in the market. traders are still afraid of another potential wash out. i don't know where that would come from. i think we've really got a lot of the news out.

maybe in hong kong blew up again that could be something that would drive us lower but you know we saw a little bit of correlating with oil last couple days. that seems to be breaking apart. so you know unless something really surprises us tomorrow toward the downside on the non-farms i think tomorrow could be another non-event and another rally higher. david: charlie, talk about the jobs numbers. we get them out tomorrow. we are expecting 231,000 non-farm jobs. you talk about shackles -- by the way we hear a lot of action in the cme. we'll to back to the cme shortly. you talk about the shackles on the economy, cherylly smith, if those shackles are taken off, does the economy grow equal to the levels we've had grown in the markets? >> i think shackles have come off. i think we'll see third and fourth quarter growth somewhere north of 3%. we're starting to see bank lending revive. corporate cap-ex is slowly coming off the floor. so i think the, animal spirits

are starting to revive in the u.s. economy. we're countering weakness we're seeing elsewhere. liz: okay, weakness elsewhere. lance, get your opinion on the new congress, the new senate and where you think there will be real opportunity for investors right now? >> well, that is going to be the thing. a couple things to kind of keep in focus is, yesterday mitch mcconnell and john boehner came out with an article in the "wall street journal" talking about what their objectives now as they enter into the new congress. part of that is budget reform and trying to repeal obamacare in some shape, form or fashion. that could put angst in the market. we have a debt ceiling debate actually beginning of december so i want to watch what hape. liz: mitch mcconnell said yesterday, he said, we will not be shutting down the government. we will not have -- >> it is not republicans. it is not the republicans to

worry about. it will be what happens coming from the president. if he is willing to fight against whatever republicans are willing to propose here, we have the debt ceiling issue coming up. what they try to cut and try to put in. that could put some angst into the market. we want to be aware of that. as far as everything else they have good ideas moving forward helpful to the economist. lower individual tax rates. that will put money back into the economy. if they pass the xl pipeline that will create job opportunities. i like the energy sector here. i think there are opportunities months ahead. david: speaking of energy, oil was down again, mark. it seemed to have lift ad little yesterday. today it came down. it did end the day a little better than started the day. down about 78 bucks a barrel. what is your next guest where oil goes from here? >> this is interesting.

there was a story that opec will cut production when oil gets to 70 bucks. that sounds like a price target. producers hit a lot of problems at 75. that is where expensive producers start to hit their costs. and if opec is looking to adjust their pricing around 70 but, then that is probably a level that oil could really, that is probably real resistance. there should abid there. david: do you think, by the way, mark, do you think they will push oil down to 70. was that fail-safe saying they won't let it get down below 70? >> i think that is pretty, i think that we'll meander until we get a real bid around 70 bucks. david: wow. >> if i'm a trader and looking at oil and i know opec will not do anything to 70 bucks a bear, is the easy trade going the trend lower or higher? easy trade is lower. i think oil will touch 75 bucks a barrel again.

liz: last hour, charlie, we had greg valliere one of the smartest guys in d.c. looking at research and distilling it and coming out with a crucible what people should believe. he likes what you like, that is defense. tell us why you feel this is real investment opportunity beyond headlines, oh, republicans are in charge, et cetera? what else will drive it? is it isis? we know the president said he wants to get some approval on continuing to be involved to fight against isis. >> i think we'll see some up ticker in the -- uptick in the armaments. aerospace rid renn through the entire defense spending slow down we've seen really well. we're interested in boeing defense systems which has held up really, really well. with oil prices down as much as they are are helping airlines. airlines will continue to replace their fleet. i don't think necessarily just defense but aerospace side of thing can see benefits from

lower energy costs. by the way -- david: lance -- go ahead, quickly. >> if we get to 70, that is $800 per year benefit to the average household budget. david: big boost for consumers, no doubt. lance, i want to talk about the strong dollar, after all the reason why oil is going down, in addition to the saudis pumping a lot. we saw exports fall pretty strongly, as a result i think of the stronger dollar. i wonder what you think? as you look at two stocks you recommend, coke and p&g. both have big exposure overseas. if folks are not buying overseas because of a strong dollar, that's trouble. >> well you know, actually going back to a bigger issue too. if you look at imports and personal consumption expenditures, those are showing weakness as well, which station the u.s. consumer is actually weaker than what some of the statistical headlines suggest. taking a look at that global picture, there is some risk here which is the reason i like the proctor & gamble and cokes and some of the energy stocks and refiner sectors, the defensive plays like your defense stocks,

is that i think we are closer to a late-stage economic cycle here. we're starting to see the sectors that really kind of represent late-stage growth, beginning to perform well. so i think the defense play as little better in portfolios right now. you catch a dividend yield. got a little bit of safety in stocks that weather recessions better than growth stocks. more defensive positioning, rather than a call on the overall economy. liz: so glad you clarified that. defensive versus defense. yeah, we're talking about defense with charlie, but defensive plays with you. let us go back -- >> -- are defensive too. david: but they're also vulnerable to the dollar, that strong dollar. >> yes, they are. no doubt. liz: which takes us back to the floor of the cme. watching treasurys, air comes out of treasurys. that may well be function perhaps, that the economy does look better? we're getting a jobs report number. we have first time jobless claims today that looked very good, especially the four-week

moving average, correct? >> yeah. air coming out, the yield is almost 2 1/2%. that, to me that's not the air coming out. if 10-year makes a run toward 3%, that is treasurys starting to sell off. we're seeing the dollar rally but i think it is more of a function the fact that everybody else is killing their own currency. less of a function of really the treasury market itself. david: all right. gang, thank you very much. charlie smith, lance roberts, mark sebastian. good discussion, appreciate it. tomorrow as we just said we get the big october jobs report. we want to hear from you. give us your predictions for the unemployment rate and number of jobs added on facebook and twitter. we'll share some of your answers later this hour. 231,000 is the estimate from non-farms from our experts. liz: we're awaiting earnings from disney, dis. the stock hitting an all-time high, hovering slightly below at least for the booed from the closing value. will the results keep the rally

going? which part of disney's business will propel them? david: gop looking to energize the energy industry. ready to take action on oil export ban, keystone pipeline and epa regulations. where could we see real progress in growth there? liz: plus a cyber threat lurking for for millions of apple customers. are you included? retailers ramp up holiday hiring. will it ramp up their stocks? amazon deliveries via taxi, yellow taxi? more from our panel straight ahead. ♪ (receptionist) gunderman group.

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liz: let's look at seeping ga. david: nicole petallides has answers from the floor of the nyse. nicole. >> after-hours as you noted, talk about revenue, they did beat for the revenue numbers. they saw the bid accident. the bid ask is 247, 249 range. the revenue beat.

earnings per share coming in line for zynga. the stock is higher in after-hours. they reaffirmed full year 2014 outlook for bookings and adjusted ebitda. this one likely a winner in the after-hours. one to watch tomorrow. also news on monthly unique payers. 1.3 million. third quarter daily active users, 26 million. back to you. >> nicole, thank you very much. republican takeover of the senate could mean serious changes to the u.s. energy policy. david: what is oned agenda? where could we see compromise there? rich edson joining us live from d.c. with more. >> david and liz, republicans laying out aggressive energy agenda. crude oil and liquified natural gas exports, construction of keystone pipeline and joint piece in the "wall street journal." house speaker john boehner, senate republican leader mitch mcconnell, say quote, bipartisan bills provide obvious potential bipartisan starting point for new measures and including construction of the

keystone xl pipeline which will mean lower energy costs for families and more jobs for american workers. with republican senate, bills approving any of that energy policy could very well arrive at the white house. it is still uncertain after midterm elections, tuesday's midterm elections if president obama would sign any of them. on keystone the president says he is still has reservations. >> there is an independent process. it is moving forward and the, i'm going to let that process play out. i've given some parameters in terms of how i think about it ultimately is this going to be good for the american people? will it be good for their pocketbook? is it actually going to create jobs? will it reduce gas prices that have been coming down? and is it going to be on net something that doesn't increase climate change that we'll have to grapple with. >> one energy analyst says the president may approve keystone to rob republicans after legislative victory. >> it seems very likely that if they get a bill on to the senate

floor it will pass. seems equally likely it will go to the president and force an issue. the president can eliminate issue by saying yes beforehand. >> another energy consequence of gop senate. oversight of regulators implementing emerging new standards on power plants. david, liz, back to you. david: thank you very much, rich. >> more on disney earnings. they have just come out. let's get to adam shapiro. >> earnings per share, liz, 89 cents. adjusts earnings per share. the expecting 89 cents. revenue a little itty bitty beat. studio revenue, 1.7billion. theme parks, 3.96 billion. liz, back to you. david: let's go to matthew harrigan from wunderlich securities. he is an analyst there focusing on disney. matthew you have a price target below the current price. your price target is 88. did you see the miss coming?

down slightly after-hours. now a little up after-hours. what do you think will happen tomorrow? >> i hadn't gotten detail on the release. i have only seen headline numbers to be honest. pretty clear we had a blowout at the studio off-guard against of the galaxy. david: right. >> parks business. macro sensitivities there. you even have issues in the september quarter but with this quarter ebola perceptionwise. espn, frequently have timing issue on advertising and affiliate fees. the advertising market, as you're aware -- liz: just so he you know, they're blaming a decree at espn due to higher programing costs. the media network's revenue, 45.22 billion. that is better certainly than last year. >> yeah the quarters tend to be pretty aberrant. i don't have the full release. i thought if there would be any noise on the downside it would be espn. that is exactly what i would have thought. the timing of the programing

payments, depending when content is delivered can really skew the quarters. so that is the issue with, with the espn, because it does live in the sports ecosystem. they have all these -- david: you can't hang the company on one particular movie but sometimes you have a spectacular one. at fox we've had certain movies propelled the stock up. he they have the "the force awakens" has all the old crew in and new folks. could you -- do you think that film could, by the way this is view of the cast that sat down to read the script? >> certainly not that film alone but disney, marvel characters, "star wars," disney animation, being revived. frozen, pixar, no other studio has good compliment of brands as disney. studio is worth over $20 b and eiger has been really in terms

of fixing a difficult situation which i gives the low point was "the lone ranger." they're probably in the best position of any -- liz: it's a tough business. you never know what is going to hit it. "frozen" was a huge hit. "maleficent" did very well. studio entertainment revenue, 1.78 billion, versus 1.51 billion last year. do you like that number? >> i do and i think the street is actually light on the numbers next year, with the next of a vendingers coming out in -- avengers coming out and i have high confidence with the studio. parks are much more cyclical. more burn for capital expenditures. even with espn you have exposure into sports. with "frozen" and guardians of the "guardians of the galaxy" as well, surprised even studio executives how well the movies did. you can't say they were sleepers. they were pretty high-profile. nobody expected them to be quite the blockbusters they were.

david: down about 1% after-hours. we see what happens to disney tomorrow morning. matthew, thank you very much. appreciate it. as the balance of power shifts inside of the beltway, what can get realistically done on capitol hill? we hear a lot of game what can be done but what is the real assessment of that? bob hormats, former vice chairman of goldman sachs. former undersecretary of state of economic growth. he has an idea. he will be us shortly. >> vicious malware putting hundreds of apple products at risk in china. how soon could that virus make it overseas to the u.s. an your phone? david: shopping season is just around the corner. retailers looking to cash in extra early. who is opening doors earliest? the answers are coming up. ♪ so ally bank really has no hidden fees on savings accounts?

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this is a good problem to have. he reiterated his goal of 100,000 vehicles by end of 2015. can it overcome its production problems? we bring in our panel. lori rothman, paul hickey and portfolio wealth advisors lee munson. i say, gang, it's a grade problem to have. because they can't fill the orders. there is too much demand. they have to ramp this up. the stock gave them a big pass up 4 1/2%. lori rothman, do you love the tesla story? >> it is fascinating as far as earnings reports go, liz. tesla is pretty exciting. tesla beat the street. to your point there is always to have better demand when you have a supply issue but here is what my concern is. why is tesla, why is elon musk, who is very transparent with the production issues, raising incentives? if he has so much demand for his products, for his cars, why does he have to do that, raise incentives? liz: well, lee munson, what do you think? you look at what is happening over at tesla.

they have to expand. doing gigafactory in. and all the machinery is lipstick red but they have a pretty interesting goal and deliveries do you think they can do it? >> sure i lived in new mexico but -- a plant so i'm not a big fan of him. i'm sharing the same concern. i don't understand why we do incentives if there is so much demand. we assume he is telling truth about production. if we assume you're telling truth about production, what ceo will say we have a demand problem? of course he will say production is the issue. i'm a little bit nervous how the street just gave him a pass card. i don't understand if you have asking in demand why you need to discount it. i think there is something more here. about the first part and question the last part but should question both parties. he had to hustle, basically

blackmail or greenmail states to get him to make a factory. liz: we had governors from kansas and from maryland. both of them said they would absolutely pay up just to get the jobs. quick message here. dow jones is reporting that nike has dropped nfl player adrian peterson in the wake of all the drama with scandal with a lot of these people. i want to ask you quickly, paul, about tesla because the model x is about to arrive. although now delayed. either way will it be enough to jazz up enthusiasm even more and demand even more? >> i think, if you go to buy a test last, they're is still a long waiting list. i don't think people value the company on their number of delivers right now. it is a premise that this company will transform the auto industry. if revolution gets pushed off, the investors long the stock willing to put up with that. you have to look demand is still there and as evidenced by the long delays. if it gets pushed out a little bit the deliveries, that, investors will let it slide.

liz: lee is upset because he didn't get the gigafactory plant in new mexico. nevada got it. 1000 jobs. we want to talk about the october jobs report. i want your prediction, released tomorrow at 8:30 a.m. eastern. this follows yesterday's pretty decent readings on private sector jobs from adp. they got 231, but they do paychex. they have real data here. what are you expecting lee munson. >> i'm expecting surprise to the upside. this will be the pet indicator for 2015. we're 1% away from the fed target. we could see people sell off in the news if it is too good. liz: 235, 231 what do you think? >> i think we should be five or 10,000 over. i think it's a piece of cake. liz: lori. >> can i say we're safely above 200,000 in job creation or is that too loose of a guesstimate. liz: too loose. >> will be in line. no big surprises.

i will watch the participation rate. we want to see unemployment rate continue to fall for right reasons. liz: which we haven't seen. >> -- approving meanfully. liz: paul, what do you think? >> ism manufacturing employment component rose in october. you have ism non-manufacturing, much bigger part of the economy, rose to highest level since february of 2006. jobless claim were under 3,000 all month long in october. first time we have sub300,000 every week of the month. liz: that is a good thing. >> pointing to strong report. liz: i need a number? >> above 250. liz: above 250. okay he is among the highest here. programs hiding malware discovered in the apple app store in china. 800 million devices may be at risk. paul, do you have an iphone? are you worried about this? >> yeah, but what are you going to do? go to windows phone or android? this goes with the territory being at the cream of the crop. liz: they say when you sync

your iphone 6 with your apple laptop, that may be where the problem is. >> right. so there is malware, this is, a problem that affects all types of software. so i mean, you have to stop using phones. goes with the territory. very big news for consumers but just part of, look at windows, early part of this decade. people focusing on apple. liz: apple stock is hovering all-time highs. does this hurt it at all? >> i don't think so. remember, cyber war, especially from china is the thing at that will spark innovation and capitalism. so when we have these things crop up, this will allow silicon valley to produce more things that will increase shareholder value. but remember, that uncertainty that we have, keeps valuations low. it is good for investors. and people should -- liz: cybersecurity? maybe security firms. buy that instead of apple, right, lori? >> that's a great point. i'm just shaking my head because i think we're just all victims of hackers. we're going to be, the odds are.

this is sign of times. not to be a debbie down per. you have to be vigilant looking at all your credit card statements and credit records. if apple is attacked we've seen it on relater level. a sign of the times. liz: don't use kids names orbiter dates. >> ask their advisor if their portfolios are 100% protected against cyber fraud. ours are a lot. ask your broker or advisor. am i protected. >> are your credit cards protected when you go into retail stores as we head into the holiday season? retailers are ramping up holiday hiring. will they ramp up their stocks by hiring up, by ramping up hiring? will your next amazon package, how about this, come via not drone but taxi? david? david: as long as i don't have to pay for it. talk is great but what can get done after republican sweeps this week? who better to ask than bob

hormats, former goldman sachs vice chairman and and he is straight ahead. i will be talking to him. a straight up reaction to the election results. plus neither rain nor sleet can keep the u.s. postal service away. now you can add sunday to that list. we want to hear from you. give us your prediction for tomorrow's jobs report. the estimate is 231,000 for non-farm jobs. we'll announce the winner tomorrow right here on the show. ♪ synchrony financial partners with over two hundred thousand businesses, from fashion retailers to healthcare providers, from jewelers to sporting good stores, to help their customers get what they want and need. banking. loyalty. analytics. synchrony financial.

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carefully before investing. david: we have breaking news that might affect bank of america stock. had to ad just third quarter financial results because after lost payments to lawyers because of stuff that happened overseas. you remember that happened to citi last week. thanks gaving is couple weeks away. retailers stumbling over each other how early they will be opening. jcpenney announced they will open 5:00 p.m. three hours earlier than it opened last year. macy's, coles, sears, announced they are open at 6:00 p.m. on thanksgiving day. two hours earlier for macy's and kohl's. kmart opening at 6:00 a.m. on thanksgiving morning. let's hope they have turkey for their employees. they started doing this in 2010 and they plan to stay open for 42 hours straight. there are some two dozen retailers that will not be open

on thanksgiving, including pc richard, costco, home depot, nordstrom, gamestop and petco. liz? liz: speaking of retailers, they seem optimistic about the. how do we know that? they're ramping up holidays some ways huge in a big way. back with our panel, lori rothman. lee munson. paul, i begin with you. they are in some cases ramping up to 100,000 more than they were. >> gas prices down that should point to better spending on the part of the consumers. in our surveys of consumers we have consumer pulse survey and where they are spending on money and spending less on apparel and clothing, spending more on electronics. liz: that is interesting. macy's is the company at that takes top of the list when they talk about holiday hiring, lori.

>> no surprise it is such a tightly competitive retail market right now among retailers but also among workers. the jobs market is improving. we probably mentioned earlier in the discussion with wage growth. it has been flat. they are not expecting holiday workers -- liz: more money in your pocket. gasoline is less. maybe they got $720 raise in their family. lee munson. ups is not a retailer but they hire 95,000 workers to ship all the stuff from retailers we put up on the screen. >> well i love it because number one, i don't think we'll have wage inflation. it will really help those companies bottom line when they show extra people on their balance sheet. but here's the other thing. does anybody remember the correction from october? you know i think with most of our clients, investors get monthly statements they will realize why you buy low and sell high when there is ebola-stained blood sheets on the street we're at all-time high. it was a full correction that

completely corrected itself inside of a 30-day window. so i think people will feel richer. they will want to go out and buy things. the best part is, the corporations will have fat profits because they didn't have to pay the extra worker extra buck an hour. liz: n inflation. >> nobody is getting paid anymore. gas price decline is obviously helpful. was interesting. look at republican sweep. the platform held about minimum wage. liz: move on to another retailer. that is amazon. testing taxi delivery in certain cities. good idea or pr stunt? let me go to lee first. listen, when you leave something in a taxi you never get it back. i don't know why you put something in a tax system here, take this brand new piece of equipment to me? >> i just called uber to get me a six-pack of beer but will cost me $140. >> yeah. >> this is publicity over profitability. on demand is a trend. everything from streaming tv to amazon prime. i think you have to look at will

this actually be a profit for amazon? i think when we look at stocks and we're screening for this stuff, it is wonderful they're making this publicity stunt. i want to invest in companies that are maybe the second or third generation of this. and are actually making a great profit. liz: paul, clearly they want to make sure people get what they order. so there isn't that negative backlash of oh, it didn't arrive by christmas. maybe bringing in some help with taxi service might do the trick? >> i don't know. i agree with lee. big pr stunt. but i think we're looking at a real thing of energy, drone taxis. liz: i want taco drones. still waiting for that. great to have all of you. lori rothman, paul hickey, lee munson. david? david: all right. gop leaders laying out pretty clear agenda for the new congress everything from education to tax reform and budget. bob hormats, goldman sachs former vice chairman, and former mem better obama administration is here to tell us whether he

thinks the president and the new congress can make any deals on any of this. what is with all the rumors about a aol-yahoo! merger? will it happen? we asked tim armstrong, the chairman and ceo of aol. you have to hear what he had to say coming up. ♪ [ breathing deeply ]

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liz: the u.s. postal service gearing up for the expected surge in online orders. we were talking about this, right? for the holiday season. now the postal service announcing plans to add sunday deliveries. the postal service said it will deliver to select major cities and other high volume areas seven days a week, starting november 17th. and running through christmas day. and letter carriers will be very busy this evening. the u.s. postal service expects to ship 50, five, 0, million packages more than a year ago. more than a billion cards and letters served during the same time frame. the postal service busiest package deliver service day, december 18th. it needs to be shipped by december 20th. don't way we didn't warn you, to assure arrival for time of christmas. david: liz, you know our next

guest. bob hormats has had a career of toggling between the public sector and private sector with republicans and democrats. he is former secretary of the environment to join us at that took about what actually can get done after the republican victories this week. good to see you bob. >> good to be back on the show. david: what did you make of the president's press conference yesterday? >> i think he is trying to demonstrate that he would like to get something done but that he will not give a lot of ground on issues that are important to his principles. david: but weren't those the issues that voters repudiated? >> that is the problem he will have to face. there are certainly a number of issues where there is potential for pragmatic agreement. for instance, the congress, the at least most members want to improve american infrastructure. the president has infrastructure programs. can they can they reconcile those differences to get infrastructure going, a lot of jobs and productivity.

trade, the president proposed trade promotion authority or fast track. many members of the house and senate support it. the senate didn't get a chance to vote because reid didn't want it. there may be something there. david: there is inherent contradiction between what the president said yesterday and what he was saying before the elections. yesterday he was saying it wasn't my policies that caused democrats to lose so badly. yet before the election, here is what he was saying, play the tape. >> i'm not on the ballot this fall. michelle is pretty happy about that. [laughter] but make no mistake, these policies are on the ballot. david: if the policies were on the ballot, the policies lost. >> well that is the dilemma he faces. there are a lot of policies that he proposed americans didn't like, or perhaps he didn't explain them well enough to get them like it. david: he had plans plenty ever chance to explain them time and guinea didn't explain them that well. economy is growing. energy prices are lower.

david: people don't feel it. it is okay for you, okay for me, the middle class it ain't. >> this is the problem he faces. if you look at numbers the economy is good. look at average american, the average american doesn't feel he or she is benefiting. it is middle america that he has to convince and that legislators have to convince also that washington is doing something for them. middle america, when i was in my job at state department, i went to gary, indiana, hammond, indiana, many towns adversely affected by the economy. they think washington is a big money game. david: and they're right. absolutely right. >> lobbying. $4 billion for this campaign. $4 billion. they see big money on wall street. big money in washington. their taxpayers, taxpayers money to help wall street, small town america hasn't benefited. they don't feel they're being listened to or the programs are benefiting them. david: that's why i think if it is, if all we get in terms of

tax reform is a corporate tax rate reduction, the middle america, that voted very strongly this week is going to say, here is another bailout to the rich guys. they got the financial bailout in 2009. they got stimulus money. they get the fed, printing free money. now they're going to get less corporate -- i want to pay less taxes. middle class wants to pay less taxes. >> i think that's right. we also shouldn'ter to get that generators of jobs in this country are large and small, medium size enterprises. many don't pay corporate tax. they pay individual income tax rate. david: will we see reduction in the top individual tax rate? >> i think it is going to be very difficult. the, republicans would like to see this. there are a number of democrats who probably are not going to support that. david: simpson-bowles, a bipartisan paper that was put together by simpson-bowles. it had bipartisan support. it said cut all tax rates and get rid of deductions.

why can't we get simpson-bowles in. >> i think simpson-bowles made at love sense. go back to the issue that was discussed between reagan, when he was president and tip o'neill. you reduced a lot of tax loopholes. there are a lost tax benefits which are not needed for certain interest groups. and you can reduce the overall income stacks rate. david: i don't want to bury what you just said before which is that you don't think it is going to happen because the president will not allow the top rate to come down? >> i think he will find it very difficult. a lot of his supporters will not allow that to happen. only way you do this, to demonstrate there is broader set of tax reforms of which this is a part. but i think if you really want to generate jobs in this country, small and medium-sized enterprises have to be helped. they don't pay corporate tax. something has to be done to help them. many find it difficult to get credit. many of them don't see the possibility of tax relief. david: small companies that offer the best opportunities for

employees because as the companies grow, you as an employee grows with them. >> that is exactly right. they hire people. these are entrepreneurs. they are companies. they have 20, 30, 40 people, some even fewer. they create a lot of jobs. david: right. >> big companies are important because they buy a lot of goods that the small companies produce. so i don't underestimate the importance of big corporations, but if you help big corporations and small and medium size enterprises don't feel they're benefiting, a lot of middle america will feel it is really not getting very much. and also, the fact that the credit system is just barely beginning to help small and medium-sized enterprises, source of frustration for middle america. david: bob hormats. great to see you. >> always a pleasure. david: liz, over to you. liz: makes so much sense, doesn't he. are you sick of losing your house keys? next we have new technology to show you that makes sure that never happens again. tomorrow's trades today. bespoke investment group paul

hickey is back to break down one thing you need to watch tomorrow. >> hi, everybody, i'm gerri willis. coming up on my show at the top of the hour, on the each of a -- eve of a major summit at the white house with president obama, can the gop turn an election win into a win for american consumers? not just jobs growth but wage growth too? how far will the president go to make that happen? that is one of the consumer stories on "the willis report" in just a few minutes. new york state is jump-starting business with startup-ny. an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo...

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david: very busy day at fox business today. gerri: here are highlights from today's newsmakers. aol ceo tim armstrong. i was able to ask him whether he considers teaming up with yahoo!? >> any of the companies in silicon valley i think we can be great partners with overall and i wouldn't comment on any individual companies of course. we're very, very happy with the level of partnership we've been able to accomplish. >> if we look at the last, 10 plus years, the bush administration, the obama administration we've seen ditch vice sieve government, dysfunctional, polarized. i would like to see a great deal more civility, putting people first. citizenship over partisanship. but i can't sit here and say i have a lot of confidence for that. >> lock-a-tron fits over existing door lock. >> goes over the deadbolt or the doorknob? >> goes over the dead belt.

the deadbolt is more secure. connects wi-fi to your network to control it remotely and bluetooth to your smartphone. if power goes out or internet goes out you can still unlock it from your phone. david: visit foxbusiness.com for all of today's interviews. we're bringing back paul hickey who will tell us number one thing to watch in the market. of course it will jobs numbers but what specifically in the jobs numbers are you looking for? for example, labor participation? look closely hours worked and average hourly earnings. see negative wage growth. you have seen some of that offset. you saw a big jump in hourly earnings. the market could take it as negative. overall better than expected job reports which we expect to see given data we've seen have been good for market. best performing sectors are financials, industrials, and consumer discretionary on those days. >> liz: isn't it nice to not have clients ringing your phone off the hook to say, what

happened to my money? we've seen records over and over. what do you build into your client's portfolio what you need will be inevitable market correction. >> we've grown cautious on the market. we'll trim overmarket positions and things with a strong run. we have mostly separately managed account. individual investors, long only account. we'll raise cash as a hedge when we feel uncomfortable with the market. david: we mentioned earlier the strength of the dollar perhaps being a strong increase in exports. companies with big exposure overseas are having trouble overseas because the dollar is stronger and exports cost more. do you think that shows up tomorrow in the jobs numbers? >> hard to say. maybe certain indices will be impacted there. people say certain sectors of the economy are impactinged. strong economy is good for america and u.s. stocks. >> paul hickey, great to have you. >> thanks. >> we want to remind everybody,

david, tomorrow, eight children a.m. eastern when the yobs report comes out. -- 8:30 a.m. david: chime in go to our facebook page, if you get it right we'll call you out on air. liz: "the willis report" is next of. gerri: hello, everyone, i'm gerri willis. the republican agenda is in. house speaker john boehner and senate republican leader mitch mcconnell laying out their vision for the 114th congress. in a "wall street journal" op-ed and afternoon press conference from the ohio republican but will they get a grand plan or gridlock? here to weigh in, sues is sullivan, small business expert and rich lowery editor of "the national review." great to have both of you here. rich, i will start with you. there were a lot of things coming from the republicans. boehner in his press conference hit several things which repealing obamacare which i don't think anybody thought would be