we'll sit down with blackrock's global chief investment strategist russ koesterich to game it all out for you. liz claman coming up next. don't go away.

joining us is russ koesterich who is the global chief investor and david wessel at the brookings institute. thank you for being here today. russ, why don't we start about what to expect in 2014. you think we can get a repeat with the stock market? >> well, by repeat you mean another year where stocks were up 30%, that may be optimistic. >> maybe a little bit of a stretch? >> maybe a bit. i think stocks can go higher next year. fundamentals were down. valuations are a bit stretched more than a year ago. if we have a year in which economic growth accelerates in the rise and interest rates remains modest it can make 2014 higher. >> are you expecting the economy will do just that? >> we are a base case scenario for 2014 the growth will be seen. the path for two years. something close to two and a half to 3%. i don't think it will accelerate beyond that. while there are a number of factors, the improvement of the job market, higher household wealth. one factor which is still working with the recovery is higher wages. it's harder to see spend and accelerate dramatically from here. >> david, what

joining us now, russ koesterich and dan wessel. thanks so much for being here today. russ, let's talk about what to expect in 2014. do you think we can get a repeat with the stock market? >> well, by repeat you mean another year where stocks go to 30% that may be optimistic. >> little bit of a stretch? >> maybe a bit. i think stocks can go higher next year. the fundamentals look sound. valuations are a bit stretched but if we have a year in which economic growth accelerates and the rise in interest rates remains modest, then i think stocks will finish 2014 higher. >> so are you expecting the economy will do just that? >> we are. our base case scenario for 2014 is there is an acceleration of the u.s. economy, maybe going from the 2% trend growth we have seen over the past two or three years to something closer to 2.5 or 3%. i don't think it will accelerate beyond that. while there are a number of factors, the improvement of the job market and higher household wealth that are helping, one factor still missing from the recovery are higher wages. in the absence of higher w

brian gardner, russ koesterich, thank you so much. >> thanks, guys. tracy: that was good stuff. a big snowstorm headed to the northeast this weekend put a dent in retail sales during the holiday season? still time to tweet us. your responses are next and up-to-the-minute coverage of that storm coming up. tracy: wine with me. it is friday. our feature, she actually holds the world's top wine title. master of wine jennifer brian is here to talk trends for 2014. ashley: i thought that was your title. tracy: imagine, imagine. ashley: plus power to the people. looks like the to allow cell phone conversations on planes may go unanswered. we'll dial you in ahead. tracy: as we do this time every day, look how oil is trading thanks to fears of a potential taper. you have increase in lib yawn oil production. potentially. your metals are all up today as well. the dow is up 10 points. don't go anywhere. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the

black rock the world's largest asset manager with nearly 4 trillion in assets under management russ koesterichr from you. our viewer investors were so interested in what you have to say about a couple of things, but you decided to encompass it into what we now of 2014 and what people should do. let's begin with the fact that at -- it appears that 2014 starts us off on a good fit. i am always a contrarian. >> this is a ggod question. a lot of things did go right. a great year for the market. we did have some scares' from washington, but not nearly as bad as it might have been. it stars the year off on a positive note. 2014 tibia another good year. the key will be the recovery in the economy. the key difference between 2014 and 2013 is where no longer going to have a big monetary tailwind and are back. the fed will not be helping as much. it will have to come on the back of higher earnings and stronger economy. liz: are there any head winds before we get so what to know and what to watch, what people wonder about. a lot of people don't think that that will happen during 2014. is there something

we'll sit down with blackrock's global chief investment strategist russ koesterich to game it all outnoon, everybody. i'm liz claman. it is the last hour of trading. and so glad you're with me because after today there are just five more sessions for the entire year. what is working today? tech and social media stocks are the gift of choice on this monday starting with apple. the marriage between apple and china mobile, it was finally made official today giving apple a gigantic foothold in china with access to 716 million new subscribers. let's take a look at the stock right now. that means i have to put on my glasses. up three and three-quarters percent, up about 20 points. apple standing of $569. welcome to the s&p 500. investors gave facebook quite a hearty handshake of a welcome. reaching out to day as the stock reached an all-time . $58.32. it has pulled back, but inclusion in the s&p 500 means that the social networking site as automatically 1300 mutual funds that need to mirror certain aspects. and 13 exchange-traded funds. they all have to buy facebook. not a surprise that