we're back here on the floor with david darst. it's been an amazing several days, david. apart, the economy and the market, as the debt negotiations were going on in d.c. since then you've had a nice run in the stock market. can it continue? >> i'm amazed at how the market has acquitted itself. volatility remains low. people are willing to pay up for earnings. we like health care. we still like health care. it's one of the leading groups. we like energy, baker. we like slum bstj. we like japan, mass limited partnership, scott. and the real estate investment trusts have come back to life. they're up 6 % for this month, which is their total gain for the year. they were flat for the year. >> rates played a role in that. as rates have come down, yield plays have become more attractive. as we look at some of these stocks today, whether it's google, you don't see a stock go up 100 bucks plus in one day. chipotle in its own right, up more than 60 bucks. morgan stanley had good earnings. i won't ask you to talk about that for obvious reasons. does it give you cause for pause when

>> let's talk about that with our guest, david darst and robert luna. welcome.the red tie memo. >> matching dressers here. >> but no red in the market today. >> happy columbus day to everyone. >> this weekend. gala, parade on fifth avenue monday. >> is the market getting ahead of himself here? >> it does not seem it's getting ahead of itself. no recession, no fed tightening, no small caps underperforming or banks taking gas. no bond yelled spread and valuations are just a touch to the expensive side. they're not egregious -- >> this is appropriate right now? >> this is okay right now. we expect it to be more modest in gains going forward. >> what's your specialty here? how do you want to approach this market and what are you looking at that perhaps -- >> i agree with david somewhat. we have a little different approach. we think the markets have gotten ahead of themselves so this pull back we have we think is appropriate. we were expecting a little more, to be quite honest with you. investors have become a little complacent in the market. the vix sitting at 12, 1

andrew ross sorkin is off today and in his chair our guest host david darst, chief investment strategistll ahead. he brought me a halloween gift, a gourd that i've named al gourd. and it's got a dog on it, which he tells me is the -- actually the dog is coming towards me. >> it's a dog coming towards you. >> i thought the dog was leaving. but anyway, and there is lucky, carl quintanilla's dog. i know what you're thinking, but it's okay, it's a small apartment. there's a reason. >> sweet puppy. >> it's closer to a rodent than a dog. i have a designer dog too, but i have a german shepherd that weighs 100 pounds also to offset the little designer dog. >> all right. all right. >>> nbc news is reporting that millions of americans won't be able to keep their current health care plan under the affordable care act and that the obama administration has known about it for more than three years. the law enforces standards for insurers that many existing policies don't meet and consumers with those plans will have to buy new ones. the white house says those numbers reflect normal turnover in the ins

us to help break down today's market action and look ahead, danny hughes from devine capital and david darstmorgan stanley wealth management. welcome to both of you. david, let me ask you. we've had a thread this hour, and maria would agree, between people who think the market can go higher and those who say no. people who think internet stocks are fully valued and some ought to be shorted and others who say, no, they can move up. where are you on this? >> where i am on this is it can go higher, but you want to be more and more careful as it goes higher. our forecast is for 1840 by mid next year. that's only another 5%. we've been telling our financial advisers, we've been telling our clients, probably only, this is late in the game, this party has been going on -- 6:00 it started, ends at midnight. it's probably 10:30. the party will probably get more excited, more worked up, but you need to start pushing and exercising diligence and discipline and backing away. secondly, tyler, your neck tie today is phenomenal. >> but when do the police come to this party, david, that's what i want to kno

stephanie from the street, steve sacks and david darst from morgan stanley. stephanie, you were taking money off the table in august and september. are you buying yet? >> yeah, actually, we were net buyers this week. pretty aggressively, actually. some of the stocks we like, our favorite themes like auto and aerospace and hvac, they came down more than the 2.5% drop we've seen in the s&p. and i was encouraged that the cyclicals this week were the leaders. and also very encouraged, as bob said, the ten-year yields has stabilized. i think if you add in the fact that the fed will remain accommodative for a little longer. there's no way they're tapering in october, maybe not even in december, i think that bodes well for stocks. once we get through this, and i think we will get through, it you'll have a cyclical rally into the fourth quarter. and i think earning expectations have come down enough along with these stocks and i think it's attractive for stocks. >> isn't there an entry point for people to wait it out? the october 17th isn't the drop-dead deadline. th