keep an eye on your money for you. i hope that you're making money today. that's all we have for right now. the market is up 16 points. here comes liz claman. liz: yes, i am right here, melissa. a quick mention here, dow and s&p are either at or above record closes, so stay tuned. you are making money if you're in stocks, and just as melissa has been focusing on the billions of american taxpayer dollars at stake in the president's health care plan, we're focused like a laser on the hundreds of billions of taxpayer dollars that were used to bail out companies during the financial crisis. $80 be in the case of insurance giant -- $80 billion in the case of aig. hank greenberg says aig did not want the treasury's money and could have gotten a better deal elsewhere. fox business out front on this story, and breaking right now new, exclusive details on why the government won't be calling greenberg as a witness most likely. who stands to win this case? a very tough former federal prosecutor as well as one of the smartest legal minds around from

columbia law school are here live. it's great to lose? well, activist investor bill ackman cracking a smile perhaps today even though a deal he was pushing for didn't happen. he pushed hard for valiant pharmaceuticals to buy allergan, that's the maker of botox, but today it agreed to sell itself to activist for $66 billion, stymying ackman's plans. that raises the price of ackman's shares, though, to 28.9 million shares. that's hard to follow, know this: bill ackman's private equity firm made around $2.6 billion that on the nixed deal that he pushed for. right now shares are all higher, we're watching all the major indices in this vital final hour of trade. let's start the "countdown." ♪ ♪ liz: good afternoon, everybody. as i mentioned, the dow and the

s&p are either hovering or at record numbers at this hour. i'm looking at the dow jones industrials, here's the record for the moment, 17,652. we've been above that today. at this hour what might surprise some investors after stunning news out of japan is that we're higher. japan now in recession, clocking a contraction of its economy, and this was a surprise. contracting 1.6%. so why are our markets unfazed, and what is the investment play? let's get right to the floor show, traders at the new york stock exchange, cme group and the my mention. scott, make us some money here. who would have thought after japan goes into recession, people are very concerned about what's happening globally, that our markets would be at or above records? >> well, there's a difference between what's going on in the economy and what's been going on in the equity markets. japan itself has had a really good year even with poor economic numbers, and this morning when you saw, you know, japan down 3%, you saw europe actually go from red to green. they were actually worried about

their own -- liz: yeah. why is that though? >> well, i think that, you know, the central planners are being accommodative, there's liquidity, and equity markets have been trending. your in a seasonal -- you're in a seasonal good time of year, so yet another test coming into this week, and upper levels held. we are now green, and the rally is continuing. so it's showing you how strong this market is with some bad news, that gave us some reasons to go down. liz: let me just tell people that the s&p closing record reached november 14th, just a few days ago, 2,039. and right now we are above that at 2,041. so you have to stay with us this whole hour to see if your money will hit a record. if you've got s&p 500 companies. let me go to alan. what else is in play here? we know what's happened in europe, in japan, that is just a disaster, in japan. you could argue that their leader made a huge mistake by imposing in april a brand new sales tax or upping the one that was already in place. >> right. liz: i mean, people already were

down for the count and, of course, they stopped spending. >> well, but you can also say you don't want to fight the fed even in another language, in another country. so, you know, i don't think if you want to fade them right now, if you look at it technically, technically,ewj is the japan fund etf, it's been trading between 11 and 12, and it's right now at 11.50. it may be a buying level from risk/reward, but i'm focusing more on the dollar index. we made new highs and closed lower, so that could be supportive for some of the stock sectors that have suffered. if you think about metals,es, ry just stop going down, that could be another catalyst for the stock market. and just follow the price action. no matter what happens, the price action is positive. liz: the price action is positive. so you see that the euro is down versus the u.s. dollar and all the other indexes as well, the other currencies. let me get to mike. mike, vladimir putin out of russia, we will not let ukraine

defeat eastern rebels who are actually in ukraine. they annexed crimea, nobody lifted a finger. how is this not affecting oil and natural gas more markedly, and what are you looking for when it comes to oil at this point, down 30%? >> liz, from the summertime til now we've come off especially in the crude market over 30%. liz: yeah. >> we're trading about $75. it feels like it wants to settle in right around here, that push to $70 that everyone's looking for, i feel like the market is really short right here. i mean, i'm looking for $70, but that's not going to happen overnight. i know it's boring, but technically speaking i think $73.25, we need to settle in a spot month in order to make that push down. as far as the natural gas market, now, that's a nervous market. with news coming from russia, you would think we would have more volatility, but if you look at it today, the volatility is hovering, you know, it wants to go to $5 even, you know, the natural gas market. but it's hovering between 4 and

4.30. that's something if you have some speculative bones in your body -- [laughter] get long some of that stuff going into the winter. but that's another thing, you know, you come off just as easily, so that's a tough one. but let's not get too excited about any further lore than 73.25, let's watch that number and then a push to $70. liz: everybody write that down, 73.25. if you've got a corner of your portfolio, mike says maybe it's natural gas. scott, what about equities? is there a short play that you start to see developing on the floor among traders or perhaps something that's long and interesting because it's so cheap now? >> well, i actually kind of like mike's idea with watching the dollar and what happened with the metals on friday. i went long silver and gold on friday -- liz: silver is cheap, i'm with you on that. i think it's very interesting here. >> yes. well, i bought the slvs, and i bought the glds, and i think we're seeing some digestion today, and we might see some upside later this week, and i also think tech is still good. it's going to be a gpro

christmas, and i think dips are viable on apple here even though it's a little bit extended. still a lot of things for traders around. liz: gopro, it's higher by about 5%, so wish you had told us on friday. >> well, you have me on mondays. [laughter] liz: great to see all of you, gentlemen, thank you so much. breaking news, fox business has just learned exclusively why government attorneys may have pulled hank greenberg, the key figure in the aig bailout lawsuit. they pulled him from the witness list. they were concerned not about their ability to hammer hank greenberg, but more about the cross-examination that would have happened once his lawyer got to take over talking to hank. sources are telling fox business that the justice department is worried greenberg's attorney, david boies' questioning of the former exec could perhaps erode their defense which they believe is pretty strong right now. is that a wise strategy? where does this case stand, and you should be immensely interested in this, it is your

tax dollars that bailed out aig and subsequently goldman sachs and other banks that had, of course, system you can reaction to all of that. as greenberg is attempting to recover $40 billion in damages, resulting from shareholder losses -- he's the largest shareholder -- joining us now in a first on fox business interview, columbia law school professor john coffey along with former federal prosecutor doug burns. doug, you're the prosecutor who's tried a lot of cases on behalf of the government here. why do you believe hank greenberg was pulled from the government's witness list? they had him on last week, fox broke the news that he was pulled, and he's not on this week's list. >> it's trial practice 101. in other words, you may have a witness -- and i new you guys got it right -- where you feel that witness may be okay for us, but we're extremely worried about what might happen on cross-examination. in other words, we licit certain things from him, on a direct examination the questions are open. on cross it's really the lawyer testifying. so there's david boies saying

that isn't it true that this, and he completely would control the flow of the questioning. and i think the government, just reading tea leaves, we don't have crystal balls, but the government was concerned that a free shot of a boies examination would hurt them. liz: one of the leading litigators of our time, and he is hank greenberg's lawyer. professor coffey, the federal reserve act -- and that is what they're pushing here -- section 13.3, in essence, says you can't take equity in a private company or lend money at unfair terms. the terms were that aig would have to pay back at 12%. shareholders lost a lot of money. do you think that the way david boies has presented this case that perhaps he stands a chance of winning? in the past you've said there might be a chance, but in the end, no. >> i still think the same. it would be an impossible standard if this district court were to rule, the court of claims were to rule that because the government bailed out other financial institutions, it had to also offer similar bailout financing to aig.

that would put the government in a hopeless bind. you'd either be told bail out no one, or by bailing out someone, you have to bail out everyone, and the latter is impossible. and i don't think 13.3 says quite what you said it says. it did allow the government to provide special emergency bailout funds on special terms. never said everyone has the right to this. it's really totally discretionary with the government. liz: but what about the point in 13.3 that says that you can lend, you can lend entities money to save the system because, look, let's face it, it was ally quid fit crunch over at aig that could have hurt the markets. hank paulson, former treasury secretary, had testified to that effect and saying we have to do something really fast. >> right. liz: but according to sources to fox business, they didn't take hank greenberg's call. he, of course, was the largest shareholder of aig, and he felt, according to sources that are close to this case -- >> right. liz: -- that he could find singapore, china to give some money, he's very close with those people, and that would

have been eliminate taxpayer hook. >> that's precisely what they're worried about on cross-examination. he had made all kinds of calls, and they didn't want to hear that with boies scripting it. however, i agree with the professor, i don't think you can cherry pick what the government does in one bailout and compare it to another. here there's two claims, essentially, one, you took our property without just compensation. that's an uphill battle because they're bailing them out in simple english and then, two, you made this loan and took a stake in the company and 13.3 bars it. i looked at 13.3 too, and to me, it's sort of an argument by omission. it's not right in there, and i mean, i welcome what professor coffey says that you can't take a stake, but it doesn't say you can. liz: professor coffey, let me have you focus on the point about aig being bailed out here, and do you get the sense that at some point this could go as far as the supreme court?

judge thomas wheeler has been somewhat sympathetic in some of his rulings in the case. >> i would agree that judge wheeler has been procedurally favorable to mr. greenberg and david boies. he's ruled with them, permitted testimony that you just don't see. you don't regularly get the call of the secretary of treasury and head of the federal reserve and put them on the stand. there's been a lot of favorable rulings, but when you try to articulate a standard as to why the government has to bail out aig and why the government when it got the permission of aig's board, mr. greenberg keeps ignoring in his testimony that the aig board favored this deal even on the allegedly onerous terms. i that thought it was -- they thought it was better than nothing, and that was really their choice. mr. greenberg wanted something that's better than better, and i'm not sure a shareholder's got a right to overrule the board of directors. >> but a little devil's advocacy, greenberg says members of the board, at least some of them, were selected by the government in connection with the government, creating a

little bit of a horse race on that issue, but, again, i don't disagree with the professor. liz: why should any viewer who doesn't own aig and never will, why should they care? >> well, because, ostensibly taxpayer money would be used to pay this. there's another wrinkle in there about some kind of indemnification, but the fact of the matter is if boies were to prevail on behalf of hank greenberg, the money comes out of the treasury. liz: and quickly, professor, how closely will you watch the judgment by the judgesome. >> i would very much like to see how he rules. it's going to take him at least a month to write a detailed ruling. but he's going to have to thread the eye of the, the camel's eye, as it were, because you can't have a broad proposition here and expect it to stand up on appeal. the government did not bail out the aig shareholders. the government through aig bailed out the other large banks because the government's real goal was to prevent a banking

panic. they did achieve that, although it was expensive, under the boies/greenberg complaint, that would have been even more expensive. liz: wonderful to have both of you, professor john coffee of columbia and doug burns, former federal prosecutor. and by the way, we hear perhaps the government will rest itself case on friday. closing bell ringing in 45 minutes. solar city dominating -- have you thought about putting solar panels on your house and just lease it, no

upended because of worries about a national security risk. we're going to tell you exactly what's at stake. stay tuned. ♪ ♪ she's still the one for you.

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♪ liz: what if you could save money on your electricity bill by installing solar, but you really didn't have to pay up front for it? it is all about innovation and payment innovation at solarcity, always has been. this is now the nation's number one solar service provider. it's been supplying solar solutions since 2006. fox business was the first to profile it back in 2008, and it is now a $5 billion market cap. it wasn't even public back then when we first found it. very interesting development here. the company will now offer solar bonds to you, the everyday investor. they're the first to do this. so what's the benefit of solar bonds? joining us now in a fox business exclusive, lyndon rive, solarcity's ceo and cofounder. great to see you once again. let me just get numbers out of the way. your most recent quarter, you had a narrower than expected loss, but your revenues were up 18% year-over-year. where is the biggest part of your growth? you guys are huge in residential

solar. >> yeah. residential solar continues to be our biggest driver. we've grown at 100% yee -- year on year for the past eight years, we've forecasted again 100% growth for next year. so it's the primary engine behind the company. liz: let's just mention to our viewers that year to date you're down about 6%, but since your ipo in december of 2012, you guys are up 358%. so you've done very well for your shareholders, certainly. you are now offering solar bonds. this is very interesting to me. sell me on this, lyndon, because i'm thinking when solar itself is pretty hurricane key jerky at the moment because sometimes you guys are up, sometimes you're down, why would i want to own solar bonds? why are you doing this? >> okay. so let me step back and just describe solar bonds and the reason why we actually first made it available -- liz: which was in october, by the way, you just launched. >> yes, just very recent. whenever you have a disruptive

technology, you have a massive investment opportunity. so if you look at what the personal computer did to the mainframe industry, what cell phones did to landlines, what the internet did to traditional media, and now if you look at the energy industry which is a trillion dollar market, there's going to be massive transformation that's going to occur in the energy infrastructure. we're eventually going to go from a fossil fuel-based infrastructure to a renewable source of energy, and we're going to go from centralized power generation to local generation. whenever these big disruptions, there's massive investment opportunity. and in most cases that investment opportunity only applies to the big institutional investors. so the average american can't participate in those transformations, or it's difficult for them to participate. so we launched solar bonds to allow the average american, anyone over 18 that wants to invest over $1,000, can now invest into these bonds, participate in the

transformation of our energy sector and then get a return on that. liz: okay. >> historically, that has only been applied to institutional bonds. liz: sure -- >> and institutional players. liz: let me jump in here, elon, i want to jump in, you're now in 15 states, you plan at least someday to be everywhere in the united states and possibly globally because 85% of solar business is done outside the u.s., so this is an opportunity there. but, you know, i'm not a solar hater. i like the idea. i think it's a very interesting alternative. but when you have keystone being voted upon tomorrow, and you've got unbelievably cheap gasoline prices and cheap oil prices, how is that affecting your solar business? surely, have you seen any kind of slowdown at all? i mean, i'm very interested to know. >> yeah. you know, gasoline doesn't actually effect the cost of energy,ly does it effect it. maybe in hawaii it'll have a small effect, but it doesn't. coal and natural gas does, but even then it has a limited

effect. if you look at natural gas over the last few years, it's gone down dramatically. even when it was going down, the cost of retail electricity actually went up. so the biggest cost is in the infrastructure of transmission and distribution, and with solar we bypass all that, and we deliver the energy at the place where it's needed. so we don't get affected by it much at all. liz: i have to apologize, i called you by your cousin's name, elon musk. [laughter] listen, he's your chairman, so i wasn't too far off. >> that's a great compliment. liz: i understand. i understand. we think so, too, he's certainly an innovator. there you guys were on ipo day back in 2012. you've come a long way, the stock up 358% since then. elon musk, of course, the chairman. lyndon, thank you. you've stuck with this company, you cofounded it, we'll be watching it closely. >> thank you for having me. take care. liz: lyndon rive, solarcity ceo. last week we had sunpower, tom warner. warren buffett has invested in

sunpower and a lot of what they're doing can. elon musk, of course, has invested in solarcity and is the chairman of solarcity. who knows solar better? upon whose bet would you lean your own money? go to facebook.com/lizclaman. we would love to know. facebook.com/lizclaman. tell us what you think because we've got the question right there. bet on elon or warren. closing bell, we're 36 minutes away. coming up, the president forced to respond to the claim that his administration preyed on voter ignorance or at least people his administration hired just to pass his affordable health care act. we have the latest details on that coming up. and can't find a parking space? well, we know this is a huge problem in boston and los angeles and new york. no problem. we're talking to the start-up that may mean the end of saturday parking-induced road rage and all those parking tickets. ♪ ♪

liz: just watching for your money to see we are in record territory for the s&p 500. watch that closely here. after a packed overseas trip to china, burma,

and australia, president obama now faces a cluster of battles here at home. the senate will vote on the controversial keystone pipeline. plus, the president plans to invoke executive action which would grant legal status to millions of undocumented immigrants. there's a lot going on here. we live in exciting times, peter barnes. which ones are grabbing the in a long time washington this week? >> keeping all of us employed, i should mention, but also immigration reform and this potential possible likely order by president obama, it seems to be the big thing that we're waiting on as early as this week. and both sides appear to be digging in for this executive order that would prevent the deportation potential of millions of illegal immigrants in the us. >> i would be derelict in my duties if i did not try to improve a system that everybody

acknowledges is broken. (?) >> he's not going around congress, it's going around the american people. the people have spoken. i suppose he's responding to folks in his base who are saying, you have to go ahead and take this unilateral action. we believe it's illegal. >> and, liz, on the keystone pipeline, you mentionedded the vote in the senate is tomorrow. the house passed it last week. in that press conference last week in australia, the president says he wants to see this state department review continue to play out. a reporter did ask him directly if he would say that he would veto that legislation if congress passes it and sends it to him and he declined to answer. liz, back to you. liz: thank you for keeping on it. new developments in the general motors faulty ignition switch recall. gm on what is now an anniversary of ho having gone public has extended the deadline to file claims under its compensation fund by one

month. so it's extended by one month until january theirself first of next year so more people can say maybe my loved one was hurt or killed because of this problem. ken said it was pushed back because of an abundance of caution. feinberg also said the fund has approved compensation for families of now 33 people whose deaths were linked to the faulty ignition switches. more than 2100 claims have been filed. if anyone is good at piecing these together it's ken feinberg. gm shares have lost about 20 percent since the recall crisis came to light early this year. today, interestingly, they're up about one and three-quarters percent. don't miss compensations our ken feinberg talking talking with neil cavuto right here on fox business. he is the man who is charged with figuring out which claims are

valid which ones aren't and the news there's been an extension giving people time to file claims. twenty-eight manuscripts before the closing bell rings. that's a big new york hotel here. to a chinese company is in line to be the most expensive deal ever. for a single hotel. do you recognize that? it's been in so many movies. is there a us security risk if we were to sell this hotel to the chinese? what is that about? cheryl live with the latest on this story. she'll articulate the issues here. are you sick of driving around, circling and circling waiting for a parking spot to open. or tired of the hundreds or thousands of dollars you've spent on parking tickets. stick around, the start up company that could be the cure to all your parking headaches. lux la.

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liz: we have 23 minutes before the markets close. i need you to focus on two things. president the s&p and the dow. [no audio] actually it's got to be above 2039 to beat that closing record high. that would be be its 42nd record this year? >> that's right. the second in the row. the 42nd this year on november 14th we scored that record close of

2039. right now, the dow is up 19 points. so we could be looking at a record within 300 points of dow 18,000. some traders are still very bull oish wall bullish on l street. holding on to gains. four weeks of gains the major averages. we have seen this month the dow and the s&p up 1 percent. the nasdaq up nearly 1 percent. transports have been rocking it. the truckers and shippers the airlines -- oils have been hitting highs. transports up 3 percent for the month of november. you know what's been underperforming, that's the small caps, the russell 2,000. again trailing behind. that's down for the month of november. that being said, we have plenty of winners here on wall street. unionized health care, intel, the automakers also looking good today. even though we have some tough news out of japan this morning, we have the back and forth action we could close with some up arrows.

we'll see. liz: you mentioned small caps that have not gone along for the ride. later on, wait until you hear aaron marshal. he's outpaced the russell by a long shot by picking certain small caps. you have to hear it. if you are victim to the frustrations of parking, this app could eventually change your life. start up company luxe valet. a parking service that provides a personal valet. they meet you anywhere you are in the city they operate in. they park your car. just $5 an hour or $15 a day. here with me now to discuss more about this company and see if the app is available or coming to a city near is curtis. it is not curtis in one city that would immensely benefit from it that would be boston. it's impossible to park in boston.

you just launched in san francisco. today you're making a big announcement. what is that. >> we've been in san francisco for three weeks. things have been going great. the big announcement. we'll be launching in la. liz: la where people spend every year thousands of dollars in parking tickets. right? >> right. liz: it's unbelievable how many millions of dollars people spend in parking tickets across the nation. let's talk about how luxe valet works. >> sure. luxe unlike the torture that goes when you're searching for parking, circling around the parking lot. we send a valet where to meet you. the valet will pick up your car and drive your car to one of our safe and secured lots. >> they show up in bright blue jackets. but right off the bath bat, i'm thinking how is this

going to work. you show up. that's the dude with the bag. you leave. someone is meeting you. they take your car. why should i hand my keys over to a total stranger. >> well, first of all, all of our valets are thoroughly background checks both for driving as well as criminal. besides that, they then go through a thorough interview process where we only accept 30 percent of the total number of applicants. after they're in, they go through a two-week training process in the field with actual customers with another experienced valet. by the time they get to your car they're extremely experienced and you should feel safe about your car. >> you're only in one. city. san francisco. you've announced you'll number la. how is it going in san francisco. first time customers, are they becoming repeat customers? >> it's fantastic. we're seeing a lot of

stickiness and engagement with the app. two-thirds of our customers are repeat customers. and, you know, in addition to just getting valet services, a lot of them are getting their cars washed as well as gas filled up in addition to that. so it's really sticky. people are using it quite a bit. liz: no wonder it's called valet. they'll do what you want them to do. i will say this, go to the north end of boston. you will make a lot of money. no parking. people are staking out parking spaces. so you'll make money if you do that. good luck to you. >> thank you. liz: founder and ceo of luxe valet. curtis lee. the closing bell ringing in 28 minutes. will the dow and s&p hit records. we're looking at them right now. some reservations about selling a legendary hotel to the chinese. waldorf astoria. will uncle sam stymie this. is it standing in the way of free commerce or is it a security issue?

the latest coming up next

liz: the sale of the waldorf astoria may be under the scrutiny of us officials who fear that this sale could trigger potential us security risks. why is that? well, it's largely because the waldorf astoria plays a very strong role as an american landmark. listen to this, every president since herbert hoover has stayed at the waldorf, including president obama. they sleep at the waldorf, every time the obamas are in the new york city. the waldorf is rumored to have a secret station to bury dignitaries most famously franklin d. roosevelt. here with us cheryl,

live at the famed waldorf astoria. cheryl. >> well, liz, good afternoon. that is true. this is the hotel for us presidents. the rumored subway system below that we could not get access to, but we're not even sure if it's still in existence. i'll tell you this, this sale has been one big controversy. you remember the president was in australia over the weekend, and he was holding a news conference talking about the new agreement that we had opened up with the chinese visas, tariffs, even some currency discussions happened, but one of the things that didn't work between the chinese and the us officials over the weekend was the issue of security. that is what the problem is when it comes to the waldorf astoria $1.95 billion sale is on the table on banks insurance. they're a chinese company buying waldorf astoria. largest sale of a hotel in history. anbang insurance

company. is this a national security risk for not just the president or the next president who comes to stay here, but dignitaries around the world. here's what's going on. hill ton worldwide they told us we'll be managing the property for 100 years. here's the statement they said. this agreement is typical of many other hotels in new york and throughout the u.s. it will ensure thousands of american jobs, contribute billions of dollars to american tax coughers, that is from the hill ton. blackstone in comment. they are very confident that this is going to go through. why is he so confident? he realizes that this deal is crucial, not just to the new york economy, but also to hill ton as well. i want to leave you with this. if the sale does not close by december 31st and the committee on foreign investment, if they do indeed launch an investigation they can't

extend the sale to march 31st. this is a big moment. we'll follow the story for you as it develops. we think it will. (?) liz: wow. i'm sure the fear is there would be bugs in the president's room. i'm not talking about bedbugs. i'm talking about monitoring dweeses. let it go through. they'll stay at the peer. cheryl, thank you so much. love the peninsula. with less than two months in the year, investors are drafting their 2015 playbook. are you? you should be. what's the best strategy in this market. we bring in market advisors with two different strategies so you get to decide. first off, chris burgling son, chief investment officer, thinks it's time to look to china for large cap. internet plays, hundred billion dollar cap names, but totally on the opposite side, hodge's eric.

aiblg age of small caps you may not know it. which strategy is best for you. welcome, gentlemen. (?) chris, it's amazing these are huge market cap companies you're loving right now. let's put them on the screen. their logos. chinese internet companies. you believe in these names. what's behind your investment philosophy here? >> i think everybody would like to buy facebook and amazon and google three years ago, and now you have an opportunity to do that by, in essence, buying the four horsemen of the chinese internet. jd.com. ten-cent, by do you, and alibaba. and basically they've got three years to catch up with the u.s. they have three times the population. chinese has tremendous problems. pollution everything else. they have to change to a consumer economy. how will they do it? the way to lead them is those four stocks. liz: i like how you put it. people would have loved

to have bought facebook three years ago and these are those places. this is a pure growth strategy opportunity play. >> absolutely. liz: eric, you have a completely different philosophy. we just had nicole petallides saying the russell 2,000, the small caps have lagged. look at what the hodges fund has done. we want to point this out. we give props where props are due. look at how you've outperformed simply by stock picking. the russell is up below 1 percent. (?) over three years, you're up 22 percent. you're outpacing the russell which is up 17 percent. what do you like in small caps? how do you pick them? >> well, you really have to study what's going on in the underlying business. we like to look for companies that have good management teams. pricing power and have earnings that are attractive relative to

the valuation of their peer group. we think now is a good to be actively managing small cap stocks. there are fewer people taking the time study what's going on in these individual businesses. instead, you have more passive investing going on in etfs and so there. so the fewer investors you have doing this, the more profitable it is. we thinkit a great time to be actively managing small cap portfolios. liz: trinity industries. this is a company that specializes in railcar manufacturing. capstone paper, and a supplier of it software services. on the screen are your picks. let me get back to chris. when you make your case for large caps. do it with the backdrop of why you don't like small caps. >> well, i think the small cap ideas are excellent. the problem, people are still fearful left over

from '08 the only thing they want to look at is a substance. the best way to look at that is large cap which they view moderately conservative companies. liz: eric, when we look at exactly what you're doing with the small cap realm, you can see that obviously the s&p has outpaced the russell 2,000. why should i not be fearful that growth stocks that make up the reckless 2,000 may not be a great play forward if we have a touch and go economy. >> small caps have more domestic exposure and visibility into the us economy is relatively favorable right now. and i think within small caps, you can find pockets of secular growth in any kind of economy out there. so you could be less dependent on what happens with interest rates or currency or commodity prices, but really bet what's going on within these individual businesses.

liz: i find both of your theories interesting. i'm split down the middle. on facebook.com/lizclaman we'll put all your picks so our viewers can pick themselves. thank you so much. closing bell five minutes away. look at these markets in the final minute. right now we have the s&p 500 just barely in record territory. if we close anywhere to the upside, that will be the 42nd record this year. you have to see how that turns out. sky bridge capital and fox business news contributor anthony on what he sees ahead for the markets and your money as we head into december. stay tuned. i sure hope so. with healthcare costs, who knows. umm...

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[annit's working forny. new york state. already 41 companies are investing almost $80 million dollars, and creating 1750 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, and no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that is is right for your business. see if startup-ny can work for you. go to startup.ny.gov. liz: records abound. yes, david, record for s&p, we're at it or very close to the dow record? david: inching these records,

inching these record up. hard to imagine a record with a 12-point gain on the dow. liz: we're four points away. four points away for the dow record. go to nicole on new york stock exchange. dow component hitting all-time high today, walmart. >> we've seen walmart h high. great news, the stock up 3/4 of 1%. it got across 16, 052. that would be record. david: one going after a company goes down, the one being acquired goes up. that is happening with halliburton and baker hughes. they're almost mirror images. baker hughes up 9%, halliburton down 10%. >> we covered that in breaking news. baker hughes really soaring on this news. >> quickly another deal hid a stumble. dreamworks and hasbro which was rumored. >> "shrek" and my little pony

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.