not having it. close close. structural problems between the two -- [closing bell ringing] >> dreamworks getting hit hard. bells ringing on wall street. indeed a record for s&p 500. david: oh, so close. so close. liz: let's look and see how stocks are finishing. nasdaq hits multimonth and multiyear highs on friday, not so pulling back. i think a little bit of weakness. apple certainly charging ahead. once again hitting another high for apple. david: liz, look at this, the low, you just had somebody on, beware of small cap stocks. he was right there. liz: then we had the guy loving small caps, eric marshall. russell looking not so great today. down nine points. get to all of it for you. "after the bell" starts right now. david: let's get right to today's market action. we have hank smith of haverford

trust company. he says there is no reason for bull market to end. he will tell you how to play it. scott wren, wells fargo wealth advisors, raised his s&p target higher. he is looking for more records. bob iaccino at the pits of cme. before we get to all that magnificent news, bob, what about japan? clearly it is in recession. that has to spill over to our markets now. >> not as much as it used to. i don't know what japan is trying not to do anymore. going pack to recession will not help inflation targetting. it can't just be they want inflation. they have to want lower real interest rates hopefully to spark capital spending. you're not seeing that happening either. even though they're self-directed economy, their own central bank, their own curren sit endgame is getting further and further away in my view. globally that is a big problem. it is not a problem today. it will not hurt the s&p on its ways to new highs this week.

liz: hank, just because we saw a record with s&p doesn't mean our markets were not negatively affected in japan. maybe we would be higher if it weren't for japan going into recession, i don't know. you believe bullishness is way to go. you're not saying there no reason not to be bullish on equities? surely there are specific areas that might do bet than others? >> first of all the market has proven that geopolitical events or other exogenous events like ebola are not going to knock it down of the u.s. economy rate of growth is actually starting to accelerate. we might actually be moving to a 3% environment compared to the 2% environment that has described the recovery for the last four years. valuations aren't stretched. in fact they look attractive relative to interest rates and inflation. we look at it. there is no reason despite being sixth year of a bull market not

to remain bullish. david: scott, i want to push back something a little bit what hank said. ebola affected markets quite dramatically end of september, beginning of october. there are still exogenous events that can affect this market of the if you doesn't believe it will be affected by china's slowdown or european recession you have to believe consumer demand will pick up. i want to ask you how that will happen when we haven't seen a real increase in wages? >> david, it is going to pick up slowly. the wage situation is a big deal and one that the fed is paying attention to. and one in my mind means that the fed is not really going to do anything with interest rates anytime soon so -- david: let me stop you there, scott. the fact is, is that the wages haven't gone up for about a dozen years now, whether the fed is doing something or not doing something. so there is something beyond the fed that is affecting wages.

i think labor pool is out there. it is big enough. there are plenty of people for most jobs. david, there are millions of jobs available in the u.s. it is just there is not enough high skis to fill those. i'm believer in the skills ban. for the average person, if you're a chemical engineer, you have all kind of leverage for compensation but if you're the average worker in the u.s., you do not. there is people ready to step in there. but, i think there is more jobs being produced out there. unemployment will be loyer. the number of people working will be higher. that is going to lead to a modest increase in consumer spending and i think we've seen that and we're going to continue to see that. you know, gdp is below trend. it will be this year. it will be next year. but it is moving in the right direction. liz: right. >> inflation will continue to stay low. that should be good for the stock market. not great but good. liz: bob, if what scott says is

true, and it will be a year or two, still people are watching saying tell me where to invest now. sometimes the best thing is to do look at flows on trading floors. what did you see today? where was money flowing? >> first of all what scott said is exactly right and the word moderate is key to what he said. 8th straight months consumers going to restaurants for pot roast instead of making the pot roast at home. they're mildly increasing consumption. that is leading indicator for retail and leading indicator for the holiday season. combine that with lower gas price i think beaten down retailers might be the place to go at least short term through january. david: j.c. parets is very good on trends. sees an uptick in oil prices. he sees it coming in a big way. i'm wonder if that has anything to do with your pick on exxonmobil right now? do you think in fact we've bottomed out on oil prices? >> well look, our, we've had a

bear market in crude oil, close to a bear market in many of the energy stocks that make up the sector exxon is down somewhere 14, 15% from its peak. we think this is good entry point for long term investors. maybe not for traders. exxon is company that proves it deliver to shareholders decade after decade regardless where the price of oil is. $24 on decade of 80s on average. exxon was outperformer then. it was $17 in the decade of the '90s. exxon delivered double-digit return in the 90's. in oo's, it averaged close to $46 a barrel and they annualized in decade of no returns. so they have proven they deliver to shareholders. >> they have proven. that let's get back to scott

wren. give me your sense where you see the best opportunities as you look ahead? as we've articulate what you believe is moderate growth i think there could be upside surprise there. isn't that a possibility? >> well i think there could be, liz, tell you, really, we'll probably see 2.8% gdp next year. i don't think there is a lot of people out there that think we'll see plus percent growth next year. i just don't think that's going to happen. that is not the end. world but if you look at industrials, if you look at things like technology, if you think and you have to buy into the thought that europe doesn't look great, japan's maybe in recession but things are going to ablize and get a little better internationally over the next year, that is good for s&p 500 companies and i think, you know, you could probably throw consumer discretionary sector in there as well. things sensitive to recovery should do better. david: hey, bob, i didn't mean to put words in your mouth moments ago but you do see a slight rally coming in oil, don't you? >> i do.

i see 3 to $5 in the very, very short to medium term. i don't know how long that is going to hold but i think it is a possibility. i don't know anything but it's a possibility. it could be driven by geopolitics. david: got to ask you, bob, what are they shouting about right behind you now? >> this gentleman here is buying a lot of s&p futures. that usually hedge for some larger institutions. could be institutions out there looking for a bit of a short-term down move. liz: okay, that is interesting because i would think after today where we showed a little bit of resilience we might see action on pricing there but let's go back to what you're talking about. we had oil traders in the last hour saying you might see $73 a barrel and then that might be that bottom. as you and your friend who trade certainly some of the commodities there, are there plays in soft commodities versus energy at this point? because some those have been really beaten down. >> yeah the thing that worries me about that is the winter. it is so unpredictable. most of the play we're seeing is

in energy. we're seeing a lot of natural gas trade and seeing a lot of buying of calls in crude. people looking for the bottom, based on what i said, what goldman sachs said. got it from me, that $75 would be sort of that base for 2015. you know they're listening, david. you know they are. david: goldman is always stealing, i've been calling them up every day, saying stop stealing bob iaccino's material. you should pay them for it. >> get after them, david. david: thanks, bob. liz: thanks, scott. good to see you. hank, on facebook.com/afterthebell. david: liz has been mentioning this, m&a activity in the u.s. up 65% since 2013 with deals totaling $1.5 trillion this year. up next we'll break down five potential takeover targets that you may want to add to your portfolio before they go on the block. liz: plus japan slides into recession and it could have big implications for our federal reserve and actually could be bullish for our markets. how?

anthony scaramucci of skybridge capital will have some ideas. he is going to join us. david: immigration, executive style, how will the gop respond to what the president is about to do? a bull on oil makes his case. we'll be talking about that. surprise rage, get this on nfl teams over the weekend by the feds? is there too much regulation in football right now? that, and a lot more now with our panel. all that straight ahead. ♪ go ahead and put your bag right here. have a nice flight! traveling can feel like one big mystery.

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david: urban outfitters reported earnings just moments ago. liz: let's head back to nicole on floor of new york stock exchange with urban outfitters. >> the stock is to the downside, liz and dave. we gotten in latest numbers. namesake store is problematic or foot traffic, lack thereof is more 41 cents was estimate. closing value, 30.83. you see it in the $29 range. revenue for latest quarter

814 million in change beat estimates of 812. i noted namesake that is where the problem is, urban outfitters brand. that was down 7%. a little better than loss of almost 9% that the estimates were. that is the weak part. free people, ant throw apology under -- ant throw apology was under umbrella of urban outfitters. and apology beat estimates. that was up 2%. decrease in foot traffic is the problem. obviously they're missing numbers here. liz: nichols thank you very much. david: two corporate deals announced with halliburton buying baker hughes and act day voice buying allergan.

liz: we brought someone in to identify the next big takeover targets. hilary kramer. you have a great track record here. talk about how you do it. ask you to reveal the potential takeover targets. >> i screen for companies with great cash flow, healthy balance sheets and unique growth area a bigger player might want financial or strategic, i want to look at one. by the way we're looking at several here. st. jude medical. we hear about it from time to time. what about a company company like that makes you think where it could be going. >> cardiac device what is st. jude specializes in. medtronics, right over the river in minneapolis st. paul, they could develop synergies because insurance reimbursements as we know continue to drop. so the competition is --

david: medical tax as well for obamacare. that is one thing that democrats and republicans seem to agree on. >> right. so very important that these companies shore up now and figure out ways to find synergies. it could be acquired by a company like stryker which has medical devices like joint replacements that want to expand horizontally and take up the medical device arena. liz: that is interesting. stryker makes things like hospital beds. i would almost think that is out of their wheelhouse to two with st. jude. why would medtronic not done that already? is it a price issue on the stock. >> medtronic is deep in research development and prided themselves and any employee management i met at medtronic seems to be secretive behind their golden walls. now times are changing and it makes sense. there is such a cost with the marketing and other aspects speeds r&d. david: we saw halliburton and their deal with baker hughes. baker hughes going up,

halliburton coming down. halliburton is it a buy? would you get into halliburton now? >> i usually dough but these are mergers of ex. 80,000 and off thousand respectively. they're both in houston of the they're saying hey, we have to maintain competitiveness and find ways. david: whenever you hear them talk about cost saving you know that means layoffs. >> exactly. the market told us what is going on and how much they, what they feel about the merger. liz: you see with baker hughes which is the acquiree is doing. let's get to your next ones. skip over standard motor products because right there you say that's a target but solar wind. >> right. liz: this is interesting. ticker symbol swy. this is technology of solar. >> so interesting so many investors see it as solar play but it is really a technology company, enterprise software,

mainframe and structural and a company like hp, emc, even maybe riverbed or net app for merger would make a lot of sense. we'll see some tech takeovers. liz: at highs of the year interestingly. >> they're in play. david: cooper tire & rubber company. why do you think they're prone for takeover. >> cooper tire an rubber is the 10th largest tire country in the company but they're growing at probably one of the fastest paces. so it makes sense. again it is about consolidation and about lowering expenses because everyone is getting ready more what could be a recessionary environment. doesn't mean we won't get through it but bigger is better. all of these are strategic buys, not financial. companies saying let's get bigger so we cut down on the costs. >> she gave you five juicy names here. let's put those on facebook.com/after the bell. david: bingo. good to see you, hillary. liz: seems apple is at least right now unstoppable, hitting brand new highs.

now the world's most valuable company. huge market cap but is the stock getting too pricey or will the iwatch give it a second jolt and push it even higher? we have a bull-bear debate you can't miss. david: also, did you see this? on football sunday, dea agents showing up unannounced to check nfl medical staff following some games. are the feds going too far into football or is it time for the nfl to face more scrutiny over its drug policies. liz: tell us what do you think? are the feds going too far or should the nfl be monitored more closely to make sure drug use isn't rampant. facebook.com/afterthebell or tweet us, @fbnatb. your answers coming up. david: are you football fan?

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david: japan's economy shrank for the second quarter in a row. this officially means it entered into recession. two negative quarters following increase of about 40% increase in the nation's sales tax to 8% from 5%. liz: could japan's pain actually be out gain? with us on the phone, anthony

scaramucci, skybridge capital founder and comanaging founder. anthony, anytime you start to see a company contract and go into recession, i fail to see how that is good for the u.s. enlighten us here. how would that be good for us. >> well it is good and bad because it is good because federal reserve monetary policy will stay lower in the united states. they do not want deflation contagion from japan. it is bad if they can't stem the slide. the. they put tax increase like yesterday. they will have to delay the next one. they will have to keep quantitative easing on full blast. likely get some free trade and labor reforms. i'm hopeful they will get a pro-tax reform like corporate income tax cut in japan to stave this off. but the early good news is that the federal reserve will not be able to move here like it or not, we're joined at the hip with japan and europe, liz.

david: are we really though, anthony? there are times when our economy is booming when other economies have been not been doing so great? >> it is not reality as much as it is the perception, david. that unfortunately what makes up these markets. you're right we're still in some ways the largest island empire in history. we're in a self-contained loop. we have learned about these things that they become contagious. imagine ben bernanke's testimony in july of 2007, talking about subprime only $90 billion and grew to 4 1/2 trillion dollar federal reserve balance sheet problem. i hear what you're saying, from the analytics you're making sense. the way the markets do things and they're more perception oriented, i'm certainly worried in the intermediate term. liz: you don't just sit there,

anthony. you find a way to invest and fund of fund but what looks good to you. >> the pay me now. liz: dividend yielding. >> dividend yielding. mortgage-backed security phase. other thing that looks good on the tape is shareholder activists. i've been on set with you guys talking about activism and why 40% of skybridge's book is in activism. that is the stuff that looks good. non-correlated stuff that pays investors today and doesn't really care about the, that sort of near term intermediate stuff. as it relates to the stock market, we're bullish on the stock market. federal reserve monetary policy is really dictating that. plus you have a lot of corporate cash on the balance sheet. i think that powers up returns over the next 12 months. david: lost a lot of money on the japanese stock market with abe came in close to a year ago. do you think it has come down

enough so there might be bargains in japan. there are bargains. japan is suffering from same dilemma. they do the right thing and push pedal to the metal and get concerned about the politics and start retrenchment. david: right. >> about four weeks ago, david, i was in toke crow with ben bernanke. we were hosting a small dinner for our institutional investors. dr. bernanke said one of the things they should be doing now is monetizing that consumption tax on to the balance sheet of the bank of japan. if they did something like that, it would be enormously stimulative and i think you would be correct. liz: anthony, did he charge you for that? did you have to pay? >> no, no. he paid me, liz. david: anthony always picks up the tab. that is one thing he is good man. never sticks anybody with a bill. liz: great to talk to you, anthony. >> great to talk to you guys. david: let's bring in our panel to talk first about japan. fox business's liz macdonald. michael owe sane i don't know, here to talk about the nfl and

other things. j.c. parets, eagan billion capital founder and president -- eagle. some people talk about increasing our taxes, tax increases don't help do they. >> no, they didn't help. japan went this route in back in 1997. back then it raised consumption taxes. lo and behold it went into recession. japan has been a stop and go story i would say since 1989 and what is really interesting right now is the market reaction to what is happening in japan, that u.s. 10-year yield touched a low that we haven't seen in a week. david: right. >> it did retrace a bit. went back up to 2.73. in that sense, good for the u.s. we're the tallest midget in the room. david, when you have that consumption tax hike back in the mid 90s, japanese consumers stayed home and didn't spend. that is what happened this time around when there is consumption tax. six straight months of declines. david: michael, what kills me the imf was pushing this thing,

increase in the sales tax, time and again. we've got a quote. put it up from an imf statement back in 2012. they say japan's fiscal problems are deep rooted requiring increase in the consumption tax to at least 15% as it is a stable source of revenue in an aging society. look what happened when they increased it to 8%. they want to double that. >> you're absolutely right. the imf's track record is horrendous. emac pointing out japan which is a great case study. imf solution for country having a problem is to debase its currency, make its currency weaker. i actually think that makes problems worse because when your currency gets stronger more people want to invest there that is how you get more investment in plant and equipment which gives you more jobs. david: j.c., very quickly, anthony just said perhaps there are deals to be made in japan. not necessarily. you think this is good time to buy in japan? >> the negative correlation between the japanese nikkei and the yen continues to be very

strong. so, as long as the yen continues to get destroyed, david, you know i look at all these currency charts. anything with the yen as denominator continues to make new highs. so i think as dollar-yen continues to go up, nikkei tend to go up. i think that is good for the united states too. i'm with anthony. david: listen to the chart man. president obama meanwhile sected expected to announce executive actions to overhaul the immigration system. it is planning to grant amnesty to millions of illegal i am any grants. what do you think? >> i fear the way republicans will react cut a deal and don't want to see a deal obstructionist. like old popeye's cartoon, the guy would say i will gladly pay you on tuesday for a hamburger today. they will give the president what he wants with the promise that president will say, but i will really start to enforce the laws down the road and i think that is the worst thing they could do. david: emac, what do you think? >> i think gop could come out

with a positive message. taxpayers don't want to feel like they're footing bill with people coming here illegally. gop could come out with a positive plan for reform. increase h1b visas. foreign-born students in the stem field as green card with their diplomas, science, technology engineering and math. listen if you want to be here pay back taxes and fine on your road to get full residency. david: j.c., go beyond all the policy here because both of your parents were cuban, right. >> that's right. david: you were first-born american born here. >> that's right. david: cuban immigrants have done extraordinary in here especially in places like miami. how do we encourage that rather than the trend immigrants coming here and taking advantage of the welfare system? >> you need to take it on case-by-case basis. very unique situation. my family came over in the early 60s. my grandparent had to make a lot of sacrifices to bring their family to the united states. david: like millions of other

cubans. >> absolutely. i'm lucky the way i grew up to learn to appreciate those sort of sacrifices. every day to this day if i'm not working my tale off i almost feel like i'm doing my grandparents a disservice, sacrifices they made 50 years ago. david: nothing about welfare. when i think of cuban immigrants in the country, in the '50s, '60s, '70s. opposite of welfare. they worked their butts off all the time. >> see it every day and sit here for hours and i could tell you story been story. i try to use that as fuel to continue to work. david: we've got to find a plan to put that into action, a way, a policy that encourages that rather than the welfare kind of policies we've seen. coming up will falling oil prices force producers to curb supply? >> nfl got some surprise visitors to the locker room yesterday. dea agents looking for banned drugs. have the feds gone too far. we'll talk about that with our panel a moment, liz. liz: apple's stock on a tear, rising 52% over just the last

year around hitting a new all-time high just today. with watch delays and worries about that and holiday season fast approaching does apple have room to move higher? yes there are bears about apple's stock and we have one. counter balance, a bull. a bull-bear debate coming up. she is set to become the country's youngest state lawmaker at just 18 years old. listen to her plans as she takes office this january. facebook working on a new secret page that could spell trouble for linkedin. details next. ♪ e you owned your car for four years. you named it brad. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends. three jobs. you're like "nothing can replace brad!" then liberty mutual calls. and you break into your happy dance. if you sign up for better car replacement, we'll pay for a car that's a model year newer

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david: oim prices down again today, hovering near multiyear lows before the fed meeting next week. we're back with liz macdonald and j.c. parets. you see opportunity in oil. how so? >> we do a lot of sentiment analysis. that is something we take very seriously. most of all we like to ignore sentiment, it is very noisy. when the rubberband really gets stretched that's when we get our attention. we're seeing sentiment levels in crude oil not seen since the summer of 2012. if you recall we got 60% rally. david: why is that important. >> we're looking at 2007 lows. that is key support. it is about risk management and finding good risk/reward opportunities. as long as we're above the 2011

lows, we're in the gray area, as long as you above 2011 lows you can buy it all day as long as it remains above that. david: is oil about to pop. >> no. i think oil will be $50 a barrel. david: oh, lord, because of the fed. >> because i don't think saudi arabia will cut production. i think they want to still be the market share leader. thanksgiving when they have that meeting they're not going to cut. david: emac, i give you a shot next time we have to move on to the next subject because the nfl staff had a huge surprise visit from dea agents on sunday looking for banned substances. what prompted raids? are the feds getting too much involved in football? michael you cover sports for "forbes." what did you learn about the raid? why did it happen? from whom did they get information, et cetera? >> this came from somebody outside of the nfl, david, who went to the feds and feds only probed the locker rooms of the visiting teams because carrying prohibitive drugs across state borders would be much more severe penalty than intrastate.

david: of course, carrying across state lines of the question, is the dea, first of all, unfortunately the track record for our war on drugs is not very good. do we really want them leading a new war in the nfl? >> they're really concerned, i've been doing some legwork and calling, making phone calls on this one. there is concern at the league level too you have injured players playing on painkillers and could be really severely injured and knocked out of their entire careers. so really interesting thing is why did the government do this on gameday when there is so much scrutiny? doesn't seem like a pretty smart move but there is serious concern t was a shocker though. they didn't expect this lawsuit filed by these players to basically lead to the drug raid by the government. david: it does seem to be a little bit of grandstanding here, j.c. you used to play baseball. you think what same rules apply to baseball have not been applied to the nflu until now. >> i'm a baseball player all my life.

that stigma comes around everyone is on drugs. i'm glad they're going to other sports. especially with violent game like professional football i think it is smart. i love it. david: but, mike, my concern is that they're trying to make it as pure and safe as the driven snow and nfl football never will be. there is limit to how far the feds go making it safe, right? >> i think you're absolutely right. the upside for the nfl could be if the feds don't find anything, it would be good publicity for the league which i think it could really use. >> listen, goes beyond that. about football players getting hooked on painkillers and suffering organ failure. chicago bear former quarterback, jim mack man, yeah, i'm 100 pills a day. you have to stop, wait a second, something really bad is going on there, last word, emac. thank you, gang. good crew. thank you very much. we asked you if you thought the feds were going too far or if the nfl should be monitored a little more closely.

lisa wrote in to say, why should nfl teams be immune to prosecution for drug use? you can join the conversation. we got a lot of responses. send us a message on facebook or tweet us@fbn. liz? liz: speaking of facebook it is looking to expand in the professional world. coming up we'll tell you what the company has up its sleeve as they ex-from your social life to your work life. watch out linkedin? with concerns about the apple watch missing that all-important holiday season is apple's big run about to end or at least taper off? we have the bull-bear debate. don't go away. ♪ teacher of the un-teachable. you lower handicaps... and raise hopes. and you...rent from national.

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for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. david: according to some sources facebook secretly working on a new website called facebook at work that would be designed to let people use facebook at work. the new service will allow people to keep personal profile separate from the work profile on the same computer. facebook at work will compete with linkedin, google and microsoft. sources say users allowed to message their colleagues, in

professional network and collaborate on work, right, through facebook service. i don't think a lot of work will happen. facebook has not commented on service and neither has my boss. liz: remove pictures of beer bongs and have facebook picture. david: oh, boy jo apple shares hitting. liz: apple shares hitting all-time high before pulling back slightly. it is now the world's biggest company. that is not necessarily news but here may be news have investors squeezed out of all they can for the stock short term or is it ready for another breakout? we have another bull-bear debate. we have for the bears, andy heart graves pacific crest securities senior analyst. harder case is the bear case, andy. that's what you make right now. apple is up 43%. i would get it if you were saying it has had a nice run-up and that's it but what is the at heart of your case where you believe it is not a stock to buy

right now? >> he will with the heart of our cases, as we look out 2015, we think iphone is kind of flat, maybe even down. since that generates 70% of the company's profit it is hard to get the stock higher if growth is going to be decelerating at that pace. liz: the apple watch, you don't think that that, like rbc put out a note today believing that could add 10 billion in revenue when it eventually comes out. you're not interested in fact bringing that in, andy? >> i do factor that in but the problem is 10 billion in revenue couldn't compare very favorably what the i phone generates in both revenue and gross profit. so it will have to do i think quite a bit better than 10 billion to make a difference. liz: amit, why do you in light of what andy pointed out do you really still like this name? >> i say a couple of things. actually the iphone is the foundation of this company but we still see plenty of tailwind ahead on iphone. pretty impressive lead times are six or six plus haven't come

down and phone has been out well over two months now, right? i think demand continues to surprise everyone on upside. compounding dynamic is two things. one, typically apple troughs out of gross margin basis in first quarter iphone launch. that is behind you of the as you go forward you get better gross margin on the model than you see typically. iphone comes out in -- iwatch comes out in -- we think the iphone is alive and well. a better gross margin and capital allocation story. stock should continue to do well over next six months. liz: we saw your report you and your team put out is very interesting. you articulate a whole bunch of things but what's next? andy here is where i get concerned although there has been no iphone killer out. argue samsung has gotten close and they sell millions and millions of smartphones on android but let's not forget the warning of sony. sony used to own the walk mann

portable radio world. and they lost that. they owned screens and sony really struggled. could apple maybe somehow stumble or new player and thinking the player out of china? >> it is possible. i don't think from my perspective i don't think we'll see a huge stumble out of apple. liz: okay. >> i think it is issue of market saturation. to your point, players growing particularly in emerging markets and that caps your growth opportunity. if your growth starts decelerating usually the multiple goes with it. liz: one of the criticisms of apple, the products and iphone and independednt pad, have been evolutionary rather than revolutionary. here is my question. your team looks at all this. constantly thinking about it and talking to market watchers and people talking about this company intimately, what is the next big thing?

can you throw something crazy out? do they do smart coastp h clothing? what is the next version of apple tv? what is next for apple. >> apple spends developing, improving, perfecting problem -- also given fact you have apple watch and apple pay coming out almost simultaneously, unlikely to see the next revolutionary product the next three or four years but apple tv beyond the hot spot in your house continues to be a big dream for apple. i think that would be next big product category. i will be surprised if it is out next three to five years. apple watch, apple pay will be research funds. liz: apple watch. apple pay. by the way, today it went above its presplit price. okay? it split back in july. and you look at what happens here. that was $800, right? would be the presplit price value. 803.25, how it is valued at

114.57 which is what it did hit. great to see you both. in our bull-bear debate on apple. david? >> can't get one of those gold apple watches? liz: no. i don't want an iwatch. david: in january, sara blair, have you heard about her? she will be the youngest elected law maker in the united states. she is not 20, folks. up next we hear how she plans to create more jobs in her state. liz: stocks settled at record highs today. we're bringing back j.c. parets to give us the number one thing to watch in the markets. and your money, it might not be what you think. david: he is great. >> hi, everybody, i'm gerri willis. coming up on my show at the top of the hour, a new warning from "consumer reports" about car tires. we'll tell you what to look out for when "consumer reports" joins us here. that is just one of the big consumer stories coming up on "the willis report" in just a few minutes. like needing to go.

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>> a lot of action on fox business. we'll kick it off with sarah blair, who has become the country's youngest state law make. what she plans to do in state office. >> my number one goal in january when session starts, creating jobs in west virginia. i would like to do that by restructuring tax system. we have a business franchise tax i like to eliminate. bring the corporate net tax below national average. i would like to eliminate tax we have on equipment an machinery. i like to make west virginia

right to work and i like to create a fair judicial system because currently west system is rated as number one judicial hell hole in the world or country and think that is problem for businesses to want to move here. >> that 800,000 barrels a day coming down from canada would help the american consumer. it would create jobs in the united states. and it puts pressure on opec, which most of us think is a food thing. >> gasoline doesn't actually affect the cost of energy or very rarely does it affect it. maybe one state like hawaii it will have small effect but it doesn't. coal and natural gas does but even then has limited effect f you look at natural gas, over the last few years has gone down dramatically. now on slight up tick again but going down the cost of retail fleck tryst went up. so the biggest cost is infrastructure and transmission and distribution. with solar we bypass all that and deliver the energy at place

where it is needed. so we don't get affected by much at all. is by the way, sara blair, she is 19 years old. i think just about to turn 19. she sunday 20 anyway. catch all of the interviews on foxbusiness.com if you want to look at them. we have plenty more up there as well. we asked if you thought the feds were going too far or if the nfl should be monitored a little more closely? rene says, hey, since the nfl is tax-exempt as a non-profit they should be totally accountable to taxpayers including drug use accountability. liz: larry on fake book says it is time to take a hard look at all professional sports. david: time for the number one thing to watch now. let's go back to j.c. parets, eagle bay capital founder and president. number one thing to watch, j.c.? >> i think we need to watch rates. that is very important. coming into the year, consensus, wall street economists say interest rates are higher. david: they have been wrong for years on that. everyone of every economist has been wrong. >> it's a beautiful thing.

we like to look at forward-looking markets, not backward looking information. forward-looking markets, particularly fed fund futures continue to suggest interest rates will stay down. in fact in the late october meeting which is essentially a year from now, we were pricing in an 80% probability of that last week. today we're looking closer to 70%. so the probabilities continue to decline and i think that smart money is telling us that rates will stay low. liz: where do you go long, where do you go short. >> keep it simple stupid, keep buying bonds, right? equities market best performing sectors year-to-date are paying highest dividends. anthony scaramucci was talking about it earlier. i'm looking at reits, utilities. they are highest dividend-paying stocks. they con it to do well. up 23% year-to-date. both of them substantially outperforming s&p 500 only up 10%. small cap up two. david: long term or short term? if you think rates stay same for a while get long term. >> depends what investor you

are. investing community can buy tlt. express that thesis. that is easy way to do it. david: j.c. parets, you're the best. eagle bay founder and president. liz: thank so much for joining us. don't move "the willis report" is next. david: don't move. gerri: hello, everybody, i'm gerri willis. there is a hidden takeaway in the new congressional budget office's annual study of household income and federal taxes. it turns out the rich are not just paying their fair share, they're paying almost everybody's else's share. more on this, mark perry, american enterprise institute who did analysis cbo report. scott hodge, president of the tax foundation and paul howard of manhattan institute. great to have you all here. mark, start with you, those cbo reports come and go, my friend but you pulled out some very interesting numbers. i want to read something you wrote. you said top 20% of the american