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tv   Closing Bell With Maria Bartiromo  CNBC  October 22, 2013 4:00pm-5:01pm EDT

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shutdown, sent the stock market higher and s&p an another all-time high. stay tuned. jack welch is maria hour-long guest host on the second hour of the "closing bell." the "closing bell." i'll see you tomorrow. it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. the s&p went to another all-time closing high. take a look at how we're finishing on wall street. even though we lost altitude going into the close, the market ended with double digits for the dow, up 76 points. that's about one half of 1% at 15,467. nasdaq picking up 9.5 points and standard & poor's uncharitied
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territory, 1754 and change with a gain of 10 points. former ceo jack welch my special guest. great to have you. thanks for spending the time. >> thanks so much, maria. great to be here. >> we have a lot to get into. bob pisani, another record day for the s&p. what gives? >> not only for the s&p but for many major indices. take a look. s&p 500, historic high. the dow transports as well, historic high. there you go. russell 2000, historic high. s&p 400 midcap, historic high. reed hastings, on the conference call said, every time i read a story about netflix as the highest appreciating stock on the s&p 500 it worries me because that was the exact headline that we used to see in 2003. as that came out, stock dropped. up $30, moved down rather
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quickly. as a matter of fact, all-d all the other big momentum stock. that's why ceos don't like to talk about their stock price. apple dropped before the ipad announcement as we saw what happened with netflix. facebook, went from $52, linkedin, momentum names, also dropped on that. chinese internet stocks, also momentum names like baidu, for example, dropped on that as well. all these charts look exactly the same on momentum stocks. best and worst out there, whirlpool, great earnings report. best gainer in the s&p 500. coach, second worst. rather disappointing. appears to be losing market share out there. >> thank you so much. heng us to break down today's market arms, amy wu, brian bebel bellski, and former chairman and ceo of ge, jack welch. good to see everybody. thanks for joining us. amy, let me kick this up with
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you. feeling is tapering is off the table in 2013, perhaps off the table for much of the 2014. do you think this market is going to stay on track to keep going higher given the fed's stimulus? >> maria, it sure seems like it. and even today's payrolls was an after-thought for the options market. volatility came in quite hard. back to normal term structure. we've been talking about momentum stocks this whole time but, frankly, the laggards, utilities, home builders, reits, those impacted when we first started talking about tapering, we're seeing all this call buying in options action in these names now so it speaks to your point that maybe we have more to go and people are trying to find even worse off names to buy further upside in. >> jack, it's interesting, when you look at the broad economy today, you could say, okay, the fed is in place. that's going to continue stimulating things. but earnings, revenue -- >> revenue -- >> so, how do you see it? >> there's no place oels to put your money.
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i mean, what are you going to do? put it under the mattress? >> right. have you to buy u.s. stocks. >> you're kind of forced into the game. or european stocks. >> even though the back drop is not great shakes in terms of earnings? >> and revenues are slow, but the thing is, companies are more producti productive. they're squeezing out the earnings. maria, what do do you with your cash? >> yeah. of course, we've seen flows out of the bond market. david, is that money finding a home in stocks? >> some of it is. some of it's in the sidelines sitting in cash which i think is helping propel this market. new cash coming into the market. people are concerned about higher rates. looks like tapering it on hold. we think march could be the earliest we see tapering. >> larry fink told me it could be june. >> could be. >> brian, is this the right allocation? what do you tell clients right now? is this warranted, stocks into bonds given the environment we find ourselves?
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-n? >> could be. as year goes on, asset allocation kicks in, as they tell asset allocators to increase their position in equities, you'll see more and more flows into equities. we caution people, since mr. welch is here, this is not the '90s. hey day of ge is not the '90s. you're coming back to america because of the consistency and fundamentals. in the '90s you came because of the growth. we don't have any infloes like the 1990s. this whole secular bull market remains in the very early stages. >> jack, you speak to so many companies out there, whether it's your management institute, or meeting with various companies, small and midcap and large, what do they say? >> it depends on the industries you're in. if you're in old, traditional america, it's thumping along, you know, 1.5%, 2% economy. if you're in health care, have
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you niches that are doing very well. if you're in oil, you're doing very well. so, if you're in some of these -- it's industry-specific. but it is really not a very exciting time in middle america other than grinding out productivity, 2% revenue growth, 8% revenues growth, grinding along, good cash flow. it's steady. >> do you agree with their keys, this is not the '90s, a completely structurally different economy. >> depends on what industry you're? >> again, industry-specific? >> industry-specific. if you're in montana and you have yourself in the bakken, you're feeling very good about life. if you're in midland, texas, it's just heaven. >> because of energy? >> energy. it depends on where you are. if you're in the right niche in health care, through the roof. >> amy, what turns this around? what are the sort of red flags you're looking at that might get you a built more cautious on equities?
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>> in terms of what we're seeing, it's structures like calling spreads and selling risk reversal. again, the volatility landscape we're looking at has told us basically there's bullish sentiment and we've climbed the wall of worry of what was the biggest concern, the government shutdown/debt ceiling. now that that's all pushed further, these rlt structuare t structures we're seeing people are using to get the next leg of upside. increased upside plays that don't cost you that much money. >> hey, amy, can you give us a good trade there? >> yeah. sorry, sorry. yeah. one of the trades we like are in the laggard space. the three biggest laggards we're seeing year to date are home builders, utilities, reit sectors first hit during the first the fmoc meeting where you saw tapering become a concern. with options prices cheap, we like out of the money call
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spreads there or buying risk averse. selling put to get upside. if you look at the strikes to january expiration, 9 0%, 10% strike options you're getting that at zero cost. you're saying, i can get geared upside right now at little cost and carrying it at net credit right now. people definitely don't want to spend money, so this is a good way of getting that exposure. >> thanks, everybody. appreciate your time on this as we continue to watch this market trade higher. and money moves into stocks. breaking news on the irs. eamon javers with the details. >> a big delay coming now in tax season for 2014. the irs announcing just within the past few minutes that there's going to be a one to two-week delay to tax season as a result of the federal government shutdown over the past 16 days or so. the irs announcing that the original start date of the 2014 filing season was january 21st. with a one or two-week delay they say the irs would start accepting and processing 2013
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individual tax returns no earlier than january 28th and no later than february 4th. they say they're still working on the final details here and they'll make an announcement soon as to when exactly that will happen. a big delay coming up for individuals in tax season, maria. >> a big delay. is this because of the government shutdown, eamon? >> it is. they are saying they lost 16 days during the government shutdown and they say they're going to need to make up that time somehow. so, that's the that's what they can have to do at the front end of the tax filing for the rest of us in 2014. >> thank you. much more ahead on the s&p's roll into record territory with my special co-host for the hour, jack welch. we'll take a look at jpmorgan chase costly legal settlement. that settlement has not ended the bank's pain and now the government wants that deal to be the template for further settlements with other banks. we'll get jack's take on the twitter ipo and whether the company is going too fast too
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back goen with my co-host for the hour, jack welch. one of the most recognizable faces in business globally today. we have a lot to talk about with this market. first, want to get his reaction to jpmorgan's costly legal battles with the u.s. government. you know, jack, it feels like there are two americas. i know susie has talked about this a little bit. every time i come out and say every ceo, business guy comes on and says, jamie dimon is one of the best executives out there. they beat me up on twitter. how do you feel about all of this? >> i think he's a great ceo. and i think he's in the crosshairs. and he'll get through it. and i hope this settlement he gets clears the decks. >> but, jack, $13 billion is $13 billion. >> it's outrageous. and for what? >> you can't just say for what when it's $13 billion. when you write a check for $13 billion this must be something you did wrong. >> and they're giving it to fannie and freddie, come on. those government boys? come on.
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>> you think this is a witch hunt? >> absolutely. >> why is it all jpmorgan? isn't this the company that was the strongest company within the financial collapse back in 2008? >> yeah. and the other guys will be behind them. they'll be after them. >> you think so? >> this is just the beginning. if they can pay that much, they'll probably leverage them all down based on their earnings capability. look, fines are everywhere. you have regulators looking for everything. look at new york city, how many food violations are out there. how many -- they're looking for money everywhere. and the piggy bank is in the private sector and the public sector is coming to the piggy bank. >> how come there's no accountability in government? we were talking to barney frank yesterday and he said, listen, i should have -- said, what kind of accountability should you have? he said very little. >> you and barney, i missed yesterday but -- >> we go at it. i like him a lot. i think he's one of the smartest guys.
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>> he's a smart guy put bth but it's outrageous, his positions. the way he flips on you is unbelievable. he was the leader of the pack in housing. come on. >> what do you do then, jack? if we have this heavy hand of government looking for money everywhere -- >> you don't get jobs. you don't get jobs. all you're doing -- you know, i've said this before. if the regulators come to work with the attitude of get them and not how do we grow the economy, they'll get them and they won't grow the economy. you can't take this money out of the economy constantly. look, i use the example of the affordable care act. 26-year-olds having their parents' coverage. we've got 16 to 18 companies. we had them all in a room. how much is it going to cost you? $2 million to $7 million. what does the ceo have to do? he has to go home and find $2 million to $7 million. he can't say, i missed my
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numbers because of the affordable care act. he cuts costs, cuts people. everything has consequence. bureaucrats sitting in washington are doing nothing other than throwing out the charges, collecting the dough and saying, why aren't we growing jobs? >> i want to ask you about the affordable care act. bob nardelli will be my guest. it seems like everything you say that disagrees with the talking points of the administration, you get swarms of people around you trying to knock it down. i'm going to ask you about this part-time economy we find ourselves in. but let me first stay on health care for a minute, kathleen sebelius. there's a whole rush to blame everything on her, all these computer glitches. >> that's my republican friends again. screwing up the marketing. look, they forget the last election. republicans were demonized for hating women. for being mean to women.
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now they're falling back into the trap again. they did a lousy job in the shutdown of selling their points of view. i saw last night on tv, republicans yelling out, get sebelius, sebelius. i'm saying, there you go again. >> you don't blame sebelius? >> of course she's to blame but i'm not going to politically yell about it because i'm going to get whacked for hating women. it's crazy the way this thing goes. they ought to shut up, let the thing goes. if it's not going to let it work, let it fall on its own and let the president and ms. sebelius deal with it themselves and not be out there calling for her head. let the president call for her head. he's the one that's supposed to get rid of her. not them yelling and screaming. all they're doing is playing into a narrative that says republicans don't like women. which is the dumbest narrative in the world. it's impossible to back up with any facts. >> well, it's also the narrative of republicans who want to blow up the world. i mean, you know, we're holding a gun to everybody's heads right
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before the debt ceiling deadline. was that smart? >> they handled it wrong. republicans went out and asked to defund something. they overreached. and they had so many chances to turn it around during negotiations. i used a line the other day. the republicans couldn't sell an ipad on opening day. i mean, they're the worst marketers known to man. and the administration is damn good at it. >> yeah, very good at it. what you're saying is the republicans need a shakeup here. >> well, they need a leader who has a message. now, that -- because they don't have a president, the same thing happened to democrats when they lost 12 years in a row. they didn't have a leader with a clear message. we need a coherent message. and not each guy yelling up from each congressional seat. their own views of life. >> it's a great point. let me turn to netflix because netflix hitting an all-time high after the earnings that were expected. i know you've been following this story. i want to get your take on what
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ceo reed hastings said about the stock in their conference call. >> every time i read a story about netflix is the highest appreciating stock in the s&p 500. it worries me because that was the exact headline that we used to see in 20 03. and, you know, can you definitely -- we have a sense of momentum investors driving the stock price more than we might normally. there's not a lot we can do about it. >> should a ceo be talking down his stock price? >> he ought to be candid and he's got some history because he got whacked once when it went up and he's trying to be cautious. he's done a great job, you have to admit. he put the money in. he put the money in, bought the rights, got the stuff and, you got to give him credit. god bless him for saying that. >> and he's taking market share from cable, from everybody. >> from everybody. so, he's done a job. he's smart to reflect on what
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happened before. why wouldn't he? he's got no downside so that comment. >> lots of comment from jack welch, my special co-host. we to want get his take on the rise of the activist investor. after the break, a bit of ge reunion. we'll speak with bob nardelli who went on to head up home depot and chrysler, get his unique take on how ge is using from top former executives. and another potential black eye for obama care story. the associated press is reporting website programmers saw red flags in health exchanges months ahead of the deadline. the reporter who broke the story will be with us. keep it right here on "closing bell." ♪
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welcome back. market up 75 points on the dow. new record for the s&p 500. dominic chu, quick market flash after hours. >> let's kick it off with after-market earnings with amgen, biggest biotech company in the world, came in better than estimates and said full year earnings would come in above expectations. panera bread lower after market earnings. met estimates but sales fell short. forecast also falling short. and cree reporting in line with estimates but lighting equipment maker, guidance disappoints so shares lower in the after-market. back to you. >> thank you very much. a next guest was a colleague of our co-host today, jack welch.
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they've seen business go up and down, and in a cnbc exclusive xlre founder bob nardelli joins us to talk current state of economy, politics and a lot more, and of course jack welch back with us for the hour. tell us about xlre. >> first of all, congratulations on your anniversary. >> thank you. >> it's great to be sharing our mutual mentor here. >> that's right, my mentor, jack welch. >> thank you for having me on. >> you have to get pretty lucky to have a boss like jack welch. >> i was beaming ear to ear and i saw him walk in. it's great to be with you, jack. >> great to be with you, bob. >> what are you doing at xlre? >> we're focused on the midcap businesses. we've done about seven deals so far this year in a lot of different sectors, as jack said. some are very strong so it's very sector-specific as to where we're looking.
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we're in energy, we're in retail, we're in dealerships. we're having a great time doing it. >> as jack said, when you look at different industries can you see a different picture like energy. is that a game-changer for the economy, energy? >> it sure is. if the administration with let it rip on public lands, we'd really see something. i mean, i think the whole thing is just going to change america. >> yeah, jack, i couldn't -- every time i'm on, i get boring. i'm an absolute, you know, proponent for energy independence. i just -- you know, as much progress as the industry is making, maria, i think we should move faster. we shouldn't be exporting gas. we ought to be consuming gas. i think if you want a job creator -- think about this, the number of jobs that fracing, the most disruptive innovative technology in the decade. the average worker working in the marcels, direct $49,000 a
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year. $69 billion of federal and state taxes. i mean, we are ought to be doing a lot more towards energy independen independence. it will create jobs. it will help on deficit deduction, taxes, not fines and really help our country. >> bob, you're not against exporting gas, are you? >> look, if i was -- >> we're going to disagree. >> if i was rex, i'd be exporting gas. i think from a country standpoint, if we want to improve energy independence, stop buying oil, gain some more authority, i'd probably find a way to use cng more than we are today. that's all. >> is the game-changer, jack, the keystone or the game-changer fracing? >> fracing. and the keystone's an important element. it's crazy to have that oil just north of us and we're already pumping oil into different parts of the country. and just add phase three, which
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is keystone, is a no-brainer. it's soft to the environmentalists. it means nothing. it's safer than rail going all across the nation with it to have a pipeline. it's safer. >> i know when i was working for jack,fy took 2,000 days to make a decision, he would have fired me. >> yeah. well, 2,000 days, i'd say. let me ask you about health care, particularly in the midcap sector. the legislation that you have to provide health insurance if you have 30 hours or more for the employer per week. has that changed or dictated employer plans? >> you know, maria, i was shocked to see one of my old companies, home depot, talk about not carrying health care for their part-time employees. i was shocked to see, you know, tremendous legacy companies like ibm, what they've done with their retirees. so, i think it's a big issue. i was here at the stock exchange at a conference sponsored by
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ernst & young. if you look at 3.8% taxes on start-up companies, some are absolutely shutting down. what profits they were making, they flipped upside down. they're going to close down. maybe the big guys can handle it. you know, like ge medical and so forth. but some of these start-up companies with that 3 .8% has taken them out of the game. >> on revenues. >> on revenues. >> not on profits. >> exactly. >> so, then we have seen a change in terms of company policies toward insuring workers. >> absolutely. >> and universities have done it in big ways. >> universities? >> adjunct professors have been whacked. they've lost a lot of health care plans. there's a list of how many universities have taken adjunct proefrs off health care plans because they don't have 30 hours. >> i said we are becoming a part-time employment economy. is that a result of obama care or was that happening before that? >> from my point of view, it's
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certainly added to the acceleration of the issues jack and i have just talked about. but i think you were talking earlier, we're in a jobless recovery. the productivity that must be cranked out to offset the lack of top line growth, these jobs aren't going to come back, maria. i think and when the president made his comments the other night about the three priorities, which are great. i was -- i kept waiting for four and five, which was job creation and energy independence. >> yeah. are we losing the goal of creating jobs? i mean, that was the goal. and job creation. >> it seems to have fallen off the table for the moment. >> yes. >> look, if you think about the job -- the joblessness in this country, you have to think about it in the following way. we've had 63% to 65% of the working age population working. for years. decades. >> the participation rated, yeah. >> no, 63% to 65% of the people working of adult age.
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it's now 58%. and that number is millions of people. so, when you go through the participation rate and fool with the employment rate and do this and that and you come up with 7.2% or 7.3% unemployment. but in reality 58% of the people of working age are now working. and the standard was 63%. so 5% of the working age population is not working. that's a huge number. >> it impacts -- you don't have discretionary money. it's a self-fulfilling prophecy. you won't have the cash in the marketplace to buy the goods, the services and so forth. so, again, i was just at the business council. you know, again, depending on what sector you're in, the fact that productivity is coming through, companies are not making the capital investments, they feel no pressure because of the interest rates. there's no end date, so they got plenty of time to make those decisions. again, you see a tremendous
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amount of conservative view and uncertainty and people are just driving productivity, not making investments and being forced to really cut these jobs for a couple of reasons. >> the question shouldn't be jobs. the question should be, how do we grow this economy at 4%? how do we get 4% employment. and then the product of that growth will be jobs. >> jobs follow. >> you don't -- people say, oh, you got a lot of cash on your balance sheet. why aren't you hiring? because i don't have demand. >> exactly. >> jobs follow. >> jobs follow. >> before we say good-bye to bob, your old stomping ground, ge, doing better these days? how would you characterize it? >> had a nice quarter, good orders and margin improvement. two nice things. now, the revenue and the top line will come with the orders, hopefully, as they go forward. but they had nice orders globally. and margin improvement. >> i was really pleased to see the quarter, jeff and the entire team, i still have a real soft spot in my heart for them and i think they're doing a great job. >> great. we'll leave it there.
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nice to see you. bob nardelli joining us here. jack welch sticks around for the rest of the hour. red flags, deadline, stress, the glitchy websites. clearly not ready for prime time, according to programmers working on the websites. we'll talk with the reporter who broke the story. apple unveiling the newest ipad, faster, thinner, but are they better for investors? it's as simple as this. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon.
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welcome back. health care exchanges can receive less than stellar reviews. even president obama admitted frustrations. >> the problem has been that the website that's supposed to make it easy to apply for and purchase the insurance is not working the way it should for everybody. and there's no sugarcoating it. the website has been too slow. people have been getting stuck during the application process. and i think it's fair to say is that nobody's more frustrated by that than i am. >> well, according to reports by the associated press, several programmers have raised -- had raised red flags weeks before the exchange launched, but the websites were green lighted
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anyway. why is that? joining us, the recorder behind the article, jack gillam of the associated press. thanks for joining us. >> good to be here. >> what can you tell us? >> we figured, if you want to have a three-course meal you want to go to the cooks in the kitchen. we went to them and said, what are the problems you saw early on? they were varied in their responses about different jobs they had to do, but it was pretty clear they all said they were extremely rushed and extremely tight deadline on the project. more than they had been used to when they were doing programming, say n other jobs or in the private sector. >> i don't understand. why would they go forward with the exchanges if they weren't ready for prime time? >> well, unlike maybe a software release that, say, you know, microsoft or apple would do with an operating system, and maybe they could push it a couple weeks. this is the president's signature policy achievement. he wanted to get this out. it couldn't be pushed beyond october 1st. so he told everyone, look, we need to get this ready.
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it was clear this was the deadline. we had to launch with it by then. >> jack? >> hi, jack. who is the program manager on this project? >> well, that's the question we're still trying to answer. we talked to some congressional investigators who said it was the centers for medicare and medicaid services who are responsible for integrating this the last few weeks before it launched. now the programmers that we spoke to, they said, look, that's a little unusual. usually you have a private software company with the expertise to do this so-called integration to make all the pieces talk to each other. they're the ones who come in and do it. right now, based on the little information that we hear through official channels, that is what we're able to decipher so far. >> i mean, if you were in the private sector and you had someone who was the lead on this and they allowed this to go guard, what would you do as the ceo of that company, jack? >> you would have been having reviews with that person all along and you would be getting progress reports weekly. and then in the end, you would bring them in and do an autopsy
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on the project to see exactly what happened. jack, you must have some idea of who the final responsibility was. and i'm not talking about the secretary. i'm talking about who was running the issue. >> well, i think the question is, what really went wrong with this website. and i think that will help answer the question the more we unfurl this problem. to be fair, this isn't just a website where you post pictures of the family dog and send it to your neighbors. this is a very complicated piece of machinery. i'm sure you, jack, you had very complicated websites you had to roll out. this is one that has to talk to dozens of different databases to find out if you're a real person and legally allowed to get these benefits. now programmers say they had to go back and rewinding the code and figuring out just exactly what happened. and the more that they are able to get into this, some say there are millions of lines of code that i talked to, then we'll get an answer to it. >> jack, why did we launch it then? if we thought -- if they all thought it was that difficult
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and that complex, why didn't we wait three months? >> was there a downside to just delaying it? >> well, i think the thing is they all felt they couldn't delay it. this is october 1st, a signature policy achievement we had to get out there. this is the president who is really adopted the internet as part of his presidency. he did so during the campaign like no one else had seen before. so, when it's -- when you're going to roll out this product and make it easy for people to use, they looked tat to say, look, we're going to roll it out, use it, and then later when problems cropped up, they said, okay, we'll put a phone number there, a 1-800 number that the president even repeated during a rose garden speech, which i haven't heard before, just to give somebody else an opportunity to say, hey, look, if the website isn't working, you know, operators are standing by, give them a call, we'll help you set it up. >> jack, good stuff. thank you so much for being with us and reporting all of this. thank you. >> thank you. >> we'll see you soon. jack gillum, associated press reporter. will apple's new ipad air
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take consumer's rough away? we'll take you live to the apple event in san francisco next. wait until you hear what my co-host, jack welch, thinks about activist investors like carl icahn bargeing into apple's boardroom? >> you shouldn't have to pretebd to be poor to make other people like you. >> yes, this rich girl's rant has gone viral. is this a spoiled brat or emblematic of the wealthy? tdd#: 1-800-345-2550 trading inspires your life.
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welcome back. take a look at this chart. apple snapping a nine-day winning streak today as the technology giant unveils its latest and greatest ipads in time for the holiday. jon fortt has been covering the billi the big event in san francisco. >> two most important things were expanded ipad lineup and free software. intraday chart. slightly down. unusual for an apple event. the ipad lineup now has a couple of tiers. you've got the retina display ipad mini and the retina display ipad air. if you want to pay 100 bucks less, can you get nonretina on both models. you also have os10 mavericks, the mac operating system for free. and when you buy new devices,
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free applications for both of those. interestingly enough, tim cook in his presentation said, 170 million ipads have been sold as of earlier this month. by my math and talking to analysts that means around 13 million ipads sold in the september quarter, maybe a hair beneath expectations. but overall, pricing for these new ipads should be good for margins. we'll see how this lineup does against a lot of competitors trying to sell tablets for less, maria. >> jon, thank you so much. jack, did you have a question for jon? >> jon, did you see nokia's new machine and how does nokia's ipad look compared to what you're seeing today? >> good question, jack. nokia just rolling out the 2520 in abu dhabi. it's about the size of the full size ipad but builts in cellular wireless connection. that might be appealing.
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early reviews are positive but they have a tough road to hoe because of applications. apple has much more and now adding free software to the mix, which microsoft does not include, jack. >> does this give the nokia ceo an upperhand in the succession race at microsoft? >> i think he's still in the race. i wouldn't say upperhand, though. a lot of folks i've been talking to says bill gates has alan mulally high on the list including paul maritz. >> carl icahn is pushing a buyback. what should he do? highway should he handle icahn? back with jack welch talking about that. were you surprised carl icahn came out all guns ablaze wanting change, investor moves? >> i hope tim cook doesn't take his eye off the long-range strategy for apple. look, activist investors are
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getting a lot of money now. a lot of funds are jumping in and supporting them. you don't have to look any further than jcpenney to see what some of them can do to cause a train wreck. and ackman a k akman and his li at jcpenney cost hundreds of thousands of people their jobs, in the process of destroying an old icon. it's a tragedy that activist investor made every bad decision you could make to sink an american company. >> you think an activist investor will be helpful for all shareholders -- >> all stakeholders, employees, et cetera. >> that's a great way to put it. so, what went wrong, then, with jp -- with jcpenney, pardon me, that all of a sudden it caused so much disruption? >> they had a revolutionary strategy. turned 180 from where they were.
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they sort of took an apple idea and put it in retailer of soft goods and it blew up. now, they go on to another one and they get enough times at-bat that maybe they're okay. but the tragedy they leave behind is pretty ugly and there ought to be a lot more discussion about that out there. >> so, you think activist investors are not so good for companies? >> it depends. if you have a sleepy company and they come -- but have you to be right. an active investor is like a ceo. you have to be right. if you're wrong, you ought to pay more than just cash. you ought to fund it in a bigger way. it's just wrong. if you stink at it, and you make a mistake, it's bad news. >> yep. great analysis there, jack. we'll take a short break. when we come back, i'm a spoiled brat, like, what's that i am, a self-proclaimed rich girl posting a rant on an internet becoming a web sensation.
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what does it say about wealth in this country? that's next.
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and new car replacement standard with our auto policies. so call liberty mutual today. and if you switch, you could save up to $423. liberty mutual insurance. responsibility. what's your policy? >> here's a quote for you. don't hate me because i'm rich.
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that's the mantra of a 28-year-old college student who took her message to the internet. robert. >> it all started with an article entitled it's not going to pretend to be poor to be accepted by you. she was rudely treated by a cashier because she looked wealthy. social media erupted with haters. some called her a spoiled brat. she landed on the front page of the "new york post." now she then wrote a second piece call i'm the rich girl you love to hate and you're all idiots for it. i'm not defined by being rich. i'm effing rachel sacks. what she's really saying here which is the important point is
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that the wealthy have become targets of public anger for their wealth and not always fairly. as she writes, i'm a scapegoat for the current issues in our economy and i think many of the wealthy would agree. they are scapegoats. is it fair? >> are the wealthy scapegoats? >> i don't think so. >> isn't it true, you have the president saying you don't pay your fair share. >> politics, politics. i don't think on a day to day basis it's a big deal. >> you don't think that the public feel they are angry at them? the wealthy don't feel like targets themselveses? >> i'm not that wealthy i don't
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think there's a target op the wealthy. this is a fun story for you. she is either trying to get publicity or had a bad day to start with. >> she definitely got the publicity. >> i love your show. >> thank you. >> speaking of school, let's talk mbas for a moment. how's it going in terms of applications? >> we like to call ourselves the fastest growing mba school in the world. we have got 560 students. >> wow. online? >> all online. 100% online. and i will be talking tomorrow. we have a fabulous program where we teach them. they go to work on wednesday to try it. so it's really action learning,
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handing in combat. >> that's amazing. >> how are they working that next day? >> all of our people have jobs. our average age is 36. so they are in the company trying to move up in the company. and it's working. >> have they changed their thoughts on business given this last couple of years in terms of, you know, what's going on in big business today? do they, like robert was just saying, do they think this is bad? >> these are people that are going to school, having a family, working, studying at night. >> they are doing everything. >> they have their nose against the glass. they are in a company. microsoft, you pick them. they're on their way out. and they want to get ahead fast. these are the best in america
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after getting good jobs. >> it's great to be here. >> my thanks to jack. >> my thoughts on the impact of bam care on the economy. stick around. ♪ [ male announcer ] when we built the cadillac ats from the ground up to be the world's best sport sedan... ♪ ...people noticed. ♪ the cadillac ats -- 2013 north american car of the year. lease this cadillac ats for around $299 per month with premium care maintenance included. who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed
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>> finally today, so far we have been focused a lot on computer glitches. and that the law may be starting to create a so-called part time employment economy. obama care mandates that employers provide coverage to those people who work 30 hours or more a week. that is becoming a catalyst for companies to limit full-time employees. it lost 97,000 full-time jobs. while there was a net creation.
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it lost them. accurately representing the state of jobs because it did not factor in things that he called underemployment. it's not just businesses worrying, it's unions. unions which helped get the law passed are sounding the alarm. they wrote the white house saying obama care would destroy the foundation of the 40 hour workweek that is the backbone of the american middle class. make something more expensive and employers will use less of it. make something less expensive and they will use marcus -- all
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day coverage tomorrow begins tomorrow and we will crown a champ right here on the closing bell. have a great night everybody. i will see you tomorrow. stay right there. stay right there. here is fast money right now. >> this is fast money. america's post market show. i'm melissa lee. here is tonight's line up. record breaking rally. the force is with the rally how apple got its groove back. and after hours action, big moves tonight hitting all the


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