tepper at 8:00.t you he does know. >> people really say it's an awful year. >> we only have two more trading weeks left in 2012. the question is what should investors feel this week? allen nupman from option shop. we may not have a deal on the table, but it feels like we might be slightly closer, allen. how does the market think about it? >> that's all we can do from our end here. watch for the market action. the market action has been relatively positive. i'm pretty encouraged by that. as that push tess dollar down, that could add support to a lot of markets over my shoulder here. >> how do you feel about gold right now? >> disappointing, at best. you've seen the dollar decline. as it goes below 80, usually that adds to the gold market. but gold and silver have been ashdz the pivots. you have to look at things on a weekly basis. i'm an options trader so i try to look at spreads three and six months out. but i'm feeling like i felt earlier this summer like with gold, it formed a wedge with higher low

you agree with tepper? >> absolutely. we were just talking about at the commercial is it's not just here in the u.s. there are things that are getting better internationally. china we talked about for several months now. i think europe the data points are getting no worse. i think that could be source for upside for 2013. imagine if you get this unknown here in the states plus all of this global liquidity. i think it's very powerful and positive. >> steve weiss, tepper whom i know that you know well says the obvious. in that d.c. could screw it all up for the near term but says the fed's still there, our economy is improving. you've got the ecb with his words a put under the market as well. >> the only place i won't agree with dave is on the golf course. because i know i'm a better player than he is. in terms of the market, he's been laying it out this way for awhile. let's face it, aside from renaissance technology, he has the best long-term track record of any fund manager out there. not just hedge funds but i generally

david tepper spoke to cnbc about it.unning one of the most successful hedge funds and he is known in the industry for being a mover in the market. >> i have credit markets that are so -- i wouldn't say they are in double territory, but they are rich and spreads are at good levels right now. >> not a bubble, but rich. mr. shmith, welcome, good to hae you with us. >> thank you. >> do you temper with what mr. tepper said in any way? >> clearly interest rate pose the greatest risk. we look at credit markets and there are valuations that are stretched but there are still opportunities in the credit market. >> where are they in credit market? that's yes one. and question two is where is the interest rate risk coming from if the fed, as it said last week, is going it keep rates low until unemployment gets down to 6.5%? are they going to keep buying $90 million worth of securities every month? >> the fed has engaged in unconventional monetary possibility. cha what it created is a low yield coupon environment. so small changes in

let me address one more thing talking about tepper. so -- >> good friend of yours. >> night before last, last night a little poker. on a plane now. >> here's the deal. >> you play poker with tepper? >> not after last night. >> youette went through your entire social schedule. >> i got a hair cut two days before. >> thanks a lot. >> in terms of what he is thinking, what others are thinking, they're surprised steve says nobody thought it would get to this point. nobody thought that you'd come up to a vote and boehner didn't have the votes. he told me don't ask a question unless you know the answer. that was the most damaging -- >> 1413 was last friday's close right in the s&p 500? so we're still well above that right now. if we don't break through that then, yes, you buy this dip in my opinion. >> let's touch one more important part of the market while steve is here. financials. right? >> we thought they were going to have a deal. >> have consistently run up. i think the best performing sector at large this year. what do you do now? >> f

david tepper and i have folicly challenged, both of us. >> yeah, yeah.ike out there, where is your bet on rim? >> well, you know, those options cost so much. look at the june 15 calls. those things cost $2.80. 20% of the current stock price. that just gives you a sense of how expensive it would be to make the speculative belts to the upside. the only reason people are doing that because of that high short interest, which can create to the squeeze. if you had to sit here, think, who is going to be surviving two years from now, rim or htc, i'd have to say htc. they've had successful products. i just don't see where rim is going to be competing in this space. not going to happen. >>> let's get down to washington, d.c. john harwood thas the latest ona meeting the president had. >> melissa, just wanted to bring you up to date in ways the administration is reaching out as they see the negotiations not having progressed. the house preparing to vote on plan b. and what's happening is, the administration, principally, tim geithner and other administration officia

no. 3, the poor field judge flipped over by colts' mike tepper. ouch! no. 2, sam, he gave this cardinal fan a christmas gift. his glove. the kid is stoked! merry christmas. and no. 1, the colts are in the play- offs. but the bigger store is their head coach chuck pagano beat leukemia and is now back with the team. >> it's really great to be back, like a kid in a contained store -- in a candy store. i get to come around and be around the guys again. i get to do what i love to do. >> he was hired as coach in january this year and got diagnosed with leukemia before the season. he's been out a whole year, and now he's back. >> hard not to get choked up on that. >>> we'll be right back. ,,,,,,,,,,,,,,,, have a good night. here you go. you, too. i'm going to dream about that steak. i'm going to dream about that tiramisu. what a night, huh? but, um, can the test drive be over now? head back to the dealership? [ male announcer ] it's practically yours. but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a pass

no. 3, the poor field judge flipped over by colts' mike tepper. ouch! 2, sam, he gave this cardinal fan a christmas gift. his glove. the kid is stoked! merry christmas. and no. 1, the colts are in the play- offs. but the bigger store is their head coach chuck pagano beat leukemia and is now back with the team. >> it's really great to be back, like a kid in a contained store -- in a candy store. i get to come around and be around the guys again. i get to do what i love to do. >> he was hired as coach in january this year and got diagnosed with leukemia before the season. he's been out a whole year, and now he's back. ,,,,,,,,,, from a neighborhood in san carlos >>> well, david letterman is next. but first, we have a little treat. >> we do. because we know you're wrapping presents. we have some of the christmas lights from one of our favorite neighborhoods in san carlos. merry christmas! enjoy tomorrow! ,,,,,, welcome se my lcret d you are?air.an your worst nightmare mr. box. since you foolishly brought back your bonus jack! i have copied your two pure be

. >> it was a fascinating hour with david tepper. >> yeah. i'm still going through it. i was taking nose e ining notes talking. >> "squawk on the street" begins right now. >>> good monday morning. welcome to "squawk on the street." we are live from the new york stock exchange. let's take a look at the u.s. futures set up for the open first of the week. dow looking at about 50 points right after the open. as for the action in europe, taking its cues from the united states. we'll see a big rally in china extending one of its biggest rallies in three years. we have a mixed bag in europe with italy up by about .2 of 1%. >> we'll do our best to keep focused on the business day. we'll be following the tragic shooting in connecticut, of course. the new york stock exchange will hold a moment of silence to honor the victims in the next few moments, and we'll be looking at the president's call for meaningful action and the politics of gun control. >> let's get to a road map for this morning. it starts with apple. under pressure once again. even dipping below $500 a share at some

yesterday we spoke with david tepper who said it's richly valued, compared to where the stock marketalued. what do you think about that? >> i think we have to separate the markets we're going the talk about with regards to the credit yield and the high yield and loan markets. those two markets are more tied towards the health of the economy. i would think about those as you're investing in equity wes put options. the bond market and where that is overvalued i think is more talking about the u.s. treasury markets and how low yields are across the curve. high yield, corporate america, still around 6.5% and loans are around 5% and a more short duration assets. she should be trading at the higher end of the market. >>> when when we talked to david tepper, he said equities are the better value at this point. would you agree with that? >> yeah. i think if we get past this fiscal plan, all likelihood is next year will be a positive year. think about what can drive equity returns next year, it will be more about multiple expansion. he think there will be some leverage growth. where are you g

i mean, i think david tepper, i think one of the best interviews andrew and joe did with david tepper the sense that stocks are cheap. but people have nowhere to go. so, the fed, and the central banks around the world have forced people to take more risk, and the money has to go somewhere. so, in 2013, you could see stocks just go up 10% by default, because there really isn't anywhere to go with the capital. >> hmm. larry we're going to thank you for that. wish you merry christmas and happy holidays. >> larry, i appreciate it. and, joe was right, he was very happy. >> no, i'm just wondering, larry, it just seems to, like -- if you go over you get 250 at 39.6 and that's just too tempting, i think, for the president, don't you? i would do it. i mean, that's -- isn't that sort of what's happening here? he gets everything he wants. he can't do everything. >> that's the big worry. my website, i just put up a piece, and if we go over the one thing you have to look at, joe, is you get the -- even with the small deal, like a half go over, you get 110 billion on the payroll tax cut elimination

named manager david tepper of the bernanke putt. i want to know the date when he was on when he said that because none of us -- when he said either the economy gets better and the market goes up -- when was it? >> september of 2010. either the economy gets better and the fed doesn't have to do anything or the economy doesn't do anything and the fed comes to the rescue. no one could have known the extraordinary steps the fed would have had to take in this economy wouldn't get better. all the way out until 2012, almost 2013. a rare interview. it will be great to hear what he has to say. we have much more ahead on this december friday. [ male announcer ] you are a business pro. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. >>> welcome back

>> i'm waiting for the same thing david tepper talked about, the same things larry just cited, as far as that fear. i'm waiting for it to elevate very significantly. we've seen a 35% increase, the vices going from about $15.50 on december 18th to $20.90 today, i believe. that's the cash vices. that's up 35% very quickly. i this i that goes into the mid 20s ahead of -- >> once its mid 20s, you hit the buy? >> that's when i'm a buyer. i'm not really going to be committing cash until then. >>> coming up next, stocks make a dramatic turn around on home for a cliff deal, but key indicators may be signaling a selloff ahead. we've got the details, next. >>> and the fight for survival. what jc bennie and other struggling retailers need to do in 2013. >>> and later, lionsgate up 90% this year. the company behind "hunger games" and "twilight" previews what is next in the new year. back in two. let's give thanks - for an idea. a grand idea called america. the idea that if you work hard, if you have a dream, if you work with your neighbors... you can do most anything. this led to other ideas like

. >> that was david tepper saying fed policies have work and will continue to work after fiscal cliffeal is reached, but the question is, will we get a resolution before the deadline, just 14 days away and counting? eamon javers has the latest on the negotiations. eamon? >> hi, melissa. a couple of new tea leaves to read today. the first one was senate majority leader harry reid telling his fellow colleagues that they should be prepared to come back to washington on december 26th, to deal with, among other things, a solution to the fiscal cliff crisis. that implies that they might not get the votes before christmas but might have in mind a session before new year's eve to get this all resolved. the other tea leaf that we got was speaker john boehner, who went to the white house today, met with treasury secretary geithner and president obama. he didn't answer any reporters questions, as you can see him returning right here. but we do know that the speaker has now put on the table raising the top rates for those people who make more than $1 million a year. now, that's a concession in te

i've got a question here that sort of tickles my bones because it channels my old boss, claude tepper. some employers value 50-plus-year-old workers, others have incentives to reduce the older work force or reduck tonight to higher workers 50 years and older. can you speak on the potential increase on the medicare ability age? >> as many of you know, there is an expectation of problems stemming from the baby boom generation and lower cohorts entering into the labor force in the future. it is why many thought potential for having workers being increasingly regarded as valuable which is highly likely and one of the questions raised which is can the federal government begin to craft a set of fiscal policies to recognize the increased flexibility that many older workers want and try to make accommodations. because of how long i've been doing this, i'm finding it hard not to think this sounds hauntingly like the questions posed about whether or not employers would hire women during childbearing ages that came up in the 1970s and how would they make those accommodations, and both the additi