the day. west texas just moved positive, ty, but we still have brent down on the day. >> and we still have that jobs report coming out tomorrow. >> that's right. zl >> it will be interesting to see how stocks react over the next two hours because that will be the last chance to position ahead of that report. that does it for "power lunch." >> here come "street signs." see you tomorrow. warren buffett says buy the dip. he did and it may be helping because stocks are doing okay despite worries over, let's see, ebola, hong kong, european weakness and even isis. mandy, of that litany of problems we walked through, what seems to be worry number one down there? >> growth. you know, i was doing quite a bit of talking with traders. a lot of them were pointing to the fears about what is going on with growth. remember from the ecb, you had draghi making those comments this morning that it's possible that the recovery will not be as strong as expected and that the

risks to growth are to the down side. and i just watch what's going on with crude prices. i know we'll talk more about that in just a second, brian. but if you look at the sharp fall in energy prices and in a number of other commodities, some of them are even in bear market territory. down 20% or more from the highs. it's really suggesting maybe a grimmer picture around the world of growth and demand than maybe some are expecting. at this stage, of course, we've come off the lows of the day, right, brian. it certainly seemed that when europe closed -- and it was a sharply lower close over there after disappointment on the ecb -- but after europe closed, we bounced off those lows. at this stage is the nasdaq is sitting flat with an upside. slight losses for both the dow and s&p, but we need a strong close. cashin is saying that's the important thing. >> certainly is and i think it's well said. i know you've got your colleague, bob pisani, are you going to duke it out? >> that's what we down down here

at the stock exchange. i suggested that maybe growth was one of the worries, number one concerns, but what else are you hearing about what's been going on in the market today? >> i agree, growth is number one. particularly europe's slowdown and to a lesser extent china. these are known knowns. we knew about this a little while ago. we're now dealing with a couple of other things that have been dumped on us in the last week, mandy. that's a little bit of a concern. the ebola outbreak. they may contain it in the united states, but there are a lot of people around the world that obviously don't know a lot about quarantine methods, and that's a little bit worrisome. i was at a trader conference yesterday. this was a dominant conversation, whether they could contain a global outbreak. that's worrisome. number two, the hong kong democracy demonstrations. we knew that there was elections coming. they're three years away. nobody anticipated that the chinese government would suddenly intervene and say we have to have the people we pick. we didn't know that. so concerns to the market there. back to you. >> okay. thank you very much, bob. we'll get back to you in just a second. brian, back over to you. >> yeah, we've got breaking news from the media and entertainment

world. to julia boorstin. julia, what is it? >> brian, disney has announced it's extending bob eiger's contract of disney by two years till june 30th, 20108. so he's had a very successful tenure there since he became ceo in 2005. total shareholder return has increased to 311%. from 92%. and disney's market cap has risen to $150 billion compared to $48.4 billion which he started. we're sure to see disney's stock react to this news. clearly had some success there and now he's going to be there for two years longer, removing uncertainty over who would take his place. back over to you. >> yu julia, thank you very much. we look forward to seeing that brain wave monitor on you later. don't go anywhere. a big day here. warren buffett was on "squawk box" this morning talking about everything from cars to cash to the fed. and while we certainly like to make a big deal about janet yellen and the central bank, the oracle of omaha begs to differ.

he really could care less. listen. >> we look at opportunities as they come along. we try to figure out whether we can understand the long-term economic prospects of the business. but we really don't care whether the fed is going to increase interest rates 100 base points or 200 basis points next week. >> all right. so that comment got us thinking. what stocks might be the least impacted by the fed? zach carabell and chris maggitt y with the turner tig eer titan. zach, whether or not you agree with warren buffett -- >> on this, even if it's not the point, i just want on the record to say -- >> here we go. >> i do agree. i do agree. and i agree that there are huge swaths of what's gone on that are if not totally fed immune, then certainly fed agnostic and not affected. you know, take the stock that everybody talks about, kind of an easy one, which is apple.

we could even take facebook. i mean, are fewer people going to be buying the iphone 6 because the short-term fed fund's rate goes from 0 to 50 or 0 to 75? i suppose you could do an if and if and if and if and get to a point where everybody is affected. but i guess we could say that about any epi-phenomenon in the world today. there's a big distance between janet yellen and -- >> the iphone. >> -- the iphone 6. >> okay, chris, so we're very disappointed in zach. he took the lowest of the low-hanging fruit. >> i did. i did. >> what are the other names you think are fed agnostic? >> okay. you know, going back to the buffettism, you know, buffett has always been known as being a value investor but also being involved in stocks and companies, if you think of it that way. they're going to be there for the long haul. and companies that i think would fall under that mantra be specifically google. i think the stock has underperformed significantly year to date on a whole bunch of

small little cuts and bruises. but i think overall the company's very well positioned going into q3 earnings. the premium that usually trades at the market is at its narrowest it's ever been. so i think google is an excellent investment at this point. again, very strong competitive moats around its businesses. businesses that are meant to last a long time and google is it. additionally, i'd say a company like a home depot falls under that category as well. the stock had had a big rally, if you put up a chart, you'll see the big spike up after their great earnings release, only to have the stock kind of trade sideways since the data breach incident happened on the pos system. home depot is a company that we think is very well positioned. again, trading at only a very small premium to the marketplace. and lastly, if you want to out-buffett buffett, if you will, about four years ago warren buffett and his company bought burlington northern. we think the rail space today is still a very good investment area. again, very high barriers to entry there. we like union pacific and

canadian pacific. >> you know what? >> how's that? >> great minds of our guests think alike because both of them like google, but i would probably push back, although that's a different segment, and s say maybe they're not fearing the fed. that's a different topic. but getting back to you, zach, your third pick here is the most fed-insulated stock, is monsanto. why monsanto? >> well, by the way, i was curious about the home depot one because, you know, you could see interest rate rising leading to fewer home sales, which could impact home depot. i simply picked monsanto because if you've got massive draughtoun the southwestern part of the united states and then you've got india attempting to raise 200 to 400 million people out of really rural poverty, which is a focus for modi, look, genetically modified seeds which are hugely controversial, but they're hugely controversial having absolutely nothing to do with the fed is obviously something that is going to keep

being in either demand or in need, having absolutely nothing to do with whether the global financial system is dysfunctional, functional, mildly functional, a little bit or not. you know, that's another area where people are going to eat, and they're going to need to grow crops. and it really isn't going to matter whether the fed is, you know, at a zero interest rate policy or at an aggressive let's fight nonexistent inflation policy. >> bottom line is we need to eat, indeed. well said, zachary. thank you very much, zach and chris. over to you, brian. >> all right. crude oil falling below 90 bucks a barrel. right now we're above that, creeping back toward 91, but you get the point. let's go now to bertha coombs with more on the recent oil plunge. bertha. >> yeah, it's been quite the roller-coaster day the last couple of days, brian. we've had a reversal at the end of the day yesterday after we were a lot higher, went lower. now we have just the opposite today. we touch a 15-month low. $88, a real critical support level, and it seemed to have held there. and the shorts have gotten

squeezed. one of the traders on the floor telling me he was short coming into today and he got crushed. they're looking ahead to tomorrow's employment number. not the same story as far as the rest of the oil complex, though. brent today touched bear market territory, down about 20% now from its high this year. and the concern there is in the international market that the saudis, rather than announcing they were going to cut back on production, cut back on price to a number of their clients including some of them down to levels that they hadn't seen since 2009. that's hitting gasoline which here in the u.s. is indeed in bear territory. the one good thing about it, brian, is we're all reaping the benefits at the pump. back to you. >> certainly are. bertha, thank you very much. okay, we are about to get a live report on the ebola situation in dallas. we are just waiting on a key conference call with some new information to wrap up. coming back up, we'll get back to the business of buffett and the rather surprising place that warren says is a great place, mandy, to invest right now.

also, one analyst is calling for a 45% move in gold. he's going to tell us which direction, though, when "street signs" returns. you've got to stay tuned to find out.

warren zevon wanted to send in the lawyers, guns and the money. warren buffett might add car salesmen to that mix. he told cnbc this morning he's making a big bet on the auto dealers. let's get now to phil lebeau with details of this deal. phil. >> have you ever heard of the

band title group? if you haven't, you should because it is says one of the largest auto dealership chains. and it is now going to be owned by berkshire hathaway. here's the deal that buffett announced this morning on "squawk box." the van tuyl group has independent partners there. $8 billion in revenue last year, and that makes them the fifth largest. by the way, it will be known as berkshire hathaway automotive. what about the suggestion that it's buying into the business when it's at the top and therefore is going to be going into tough days ahead? he doesn't buy that. >> cars aren't going like that. dealerships may. that means every dealership's going to sell more cars, on average. so the pattern has changed, but the fundamental demand for cars has not gone down. the average dealership will do a lot more business now than it did 30 or 40 years ago in terms of units. >> and in fact, auto dealership

profits have surged in recent years. in fact, the average auto dealer's return on equity has more than doubled in the last couple of years. last year it was 29%. and a lot of people like to focus on the new vehicles in the front of the store. and they say, well, that's where the guy is making all his money. huh-uh. it's in the back of the store. that's where they make all their money. the biggest auto dealer profits, if you looked at it as a pie, the biggest percentage comes from about 50% of the profits come there, and then used car sales, financing, insurance. that's really where the dealerships make their money. the average auto dealership made $923,000 -- $923,248 in pretax profit last year. almost $1 million per dealership in pretax profit. that's why when you take a look at the auto dealer group stocks and yes, lithia's gain is going to make the others look like they haven't done anything over the last three years. the last four years, particularly strip out this last year, but before that from '09 to '13, you saw great runs for

the auto dealer stocks, in part because their businesses are much more profitable now than they were at the depth of the recession. >> thank you very much, phil lebeau. let's talk to some of those dealerships. what does buffett's deals say about the health of the auto dealer market? let's bring in tammy davers and adams from adams auto group. tammy, warren buffett, of course he would say that. what do you think it says about your industry, and where do you think you are in the cycle? >> well, i agree with mr. buffett. i mean, i think we're really just in the middle of the growth spurt that we've experienced for the last couple of years, and i think until we get to about 17,500, maybe even higher than that, 1 million cars a year, we won't have begun to see the downturn of our industry. >> scott, what do you think it says about the franchise model? >> well, i think that warren buffett has bet big on that the franchise model is here. it's here to stay. and it's one that we can all live with.

earlier i heard you guys speaking about what elon musk is going to do. he's been trying to bust the franchise model in secertain pas of the country. now he's going to go up against one of the richest men in the world that's going to be up against one of the largest car dealers in the world. we'll see how that plays. >> what do you think's going to happen with warren buffett? do you think he's going to succeed here? he's kind of a hands-off guy anyway. >> it started here in kansas city back in the '50s. in fact, my dad worked there back in the '50s washing cars. the van tuyl organization knows how to sell cars, knows how to make money. so i believe that it's going to be something that he's going to make a lot of money on because he's into predictable. there's hardly any industry older than being in the railroads. if you can make a railroad work the way he does, i'm certain he'll be fine in the car business. >> i'm sure that warren buffett is, like, has gone over all the documents that he could possibly see to make this acquisition work.

but at the same time, tammy, you know, you guys are right there at the face of the industry. what do you see as the biggest risk to the car dealership industry in demand for cars going forward? >> i think it's going to be very important for that organization to kind of maintain that hometown feel. i mean, we're the last of the big retailers, that we really can put a face to the business in the communities that we serve. and so not only are we selling and servicing automobiles, but we're giving back to communities with, you know, honmoney that cs out of the communities, we're putting it right back into those very same communities to begin with. you know, it's a very important business model, of course, for not only our country but for our entire economy. so as long as there's that personal touch, i think that they'll do very well. >> scott, should we be concerned about subprime loans? >> i don't think so at all. the return on subprime loans is not like it was in the housing industry. subprime is not like it was.

it's people that needed cars that maybe got hurt when they did buy a house and something went wrong with them, but there's still people that can pay for it. there's still people that need a car. and hey, if you don't have a car, you can't go to work. you can't take your kids to school. it's one of the last things in the industry that there's ever going to be a problem with. >> tammy and scott, thank you very much for joining us. >> thank you. >> much appreciated. let's take a look at the markets right now. we're currently sitting at session highs, brian, on those markets. in fact, we're moving to the upside now. i know it's only a small upside, but i see green arrows for both the s&p and the dow and the nasdaq. so all three indices at this stage. at the beginning of the day, it looked like we could have seen maybe the first four-day losing streak for the s&p so far this year. can you imagine that? >> as i suspected, if things get worse, the federal reserve might push back that mid-2000 number. maybe it will be early 2016. every time we have bad news, the federal reserve comes into play, and bad news suddenly becomes

good news. don't fight the fed. >> i thought yesterday you were arguing that finally bad news was bad news and good news was good news. you've changed your fed tune. >> no, i said is that a positive that we could finally see a day where it appears that that's the case? if today is the case where the fed comes back into play, none will be more disappointed than i. >> indeed. okay. we've got kudlow coming on later on this afternoon. he's the one who's on the record for saying we know raising of rates in his lifetime, and let's hope it's a very long life. okay. let's take a look now at a live speech of president obama. he's making it now on the economy. he's making the case that the u.s. is much better off than it was in 2008. in the hopes that voters will buy that and back democrats next month. we're groing to have a full report later on from john howard. also a debate. also breaking out the old "street signs" crystal ball. we'll look at the future of media. as our viewers know, i won't call it social media. julia boorstin's in the house

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25 years from now is a very long time. it will be the year 2039. and if the human race isn't by then communicating entirely telepathically, expect some changes to the internet. julia boorstin breaking out her crystal ball for a look at the future of friending. julia. >> brian, social giants have already taken over the way we communicate. in the future, social networks won't be something that we visit but will be woven through everything we do. >> you are now in space floating through space. you can see planets all around you. >> reporter: virtual reality technology like this new oculus headset is the first step to beam people into a virtual world. >> in the future if i have, you know, these fwlglasses on, i ca actually be there at the game watching it with my friends and

family and the other people who are in that stadium. >> reporter: and you won't have to click to tweet or share. >> so imagine i'm walking down the street. i see a dress i really like. all i have to do is look over at it, google takes a picture. it knows via image recognition that it's a dress. so it knows that my closest girlfriends are going to circle who would really want to see that dress and feedly it can send it off to that. >> reporter: you won't just be sharing photos and status updates. neurosky's brain and muscle tracking gear automatically share thoughts and feelings. >> so just stick it on kind of like a band-aid. >> reporter: like my reaction to this earthquake exhibit. at san jose's tech museum of inthough vags. >> the tension has certainly gone up. >> reporter: pretty scary. these sensors offer a window into the future. eventually people will be able to seamlessly share information about themselves to connect with friends and people they've never met. >> if you start measuring your feelings, your emotions, you can interact with your family, your

friends. today i feel happy. you don't actually have to say that. it can come through in your emotional data. >> reporter: while everyone from futurists to inventors has an opinion on the future of social, facebook is betting its business on connecting the world. >> if we're successful in connecting everyone in the world, the power of that experience just grows exponentially. >> reporter: and as that experience grows, privacy concerns are sure to as well. that social media companies are sure to give people more options about just how much they share to address those privacy concerns, but perhaps surprisingly, the futurist that we talked to over the course of reporting this say that they really don't think people are going to choose to take themselves off the grid. brian, they really think that people are going to get so much value out of sharing all this information that they won't care if they don't have any privacy. >> you said it's going to be interwoven in our lives. 25 years. that's terrifying. >> yeah. it's terrifying to you. >> isn't it too interwoven

already? shouldn't we already pull back and, like, smell the sky and touch the grass? >> well, i think it depends who you're talking to. i mean, it was amazing to put on this headset. and you can try it on if you want. >> what's it do? >> it measures your brain waves. >> they're huge. >> it's not plugged in right now. >> can it fit over my ears? >> it measures brain waves. it can tell what you're thinking and transmit that. so instead of having to text your mom that you're in a really bad mood today, you could just -- >> if i'm a 43-year-old man texting my mom that i'm in a bad mood -- >> i think -- yeah. >> that's not a positive. you know what i'm thinking right now? i'm being angry at the taught of me in my mom's basement texting her to bring me down pizza while i'm in my fruit of the looms. it's starting to burn. i've got to take it off. >> it's amazing how much information you'll be able to share without even opting in, which many people like yourself might find a little terrifying. >> thank you. i'm scared now. >> ever heard of oversharing? keep your thoughts to yourself, brian. we're starting to learn more

details about that 42-year-old man being treated for ebola at a dallas hospital. cnbc's meg terrell is there. and she joins us with more. what more have we learned, meg? >> reporter: hi, mandy. i just got off a telebriefing with the cdc and health officials here in texas. learning a lot of information. first and foremost, cdc director tom freeden emphasizing they remain confident they can contain any spread here in the united states. he emphasized that the risk only becomes zero when the outbreak in west africa is contained. and he did say there could be additional cases here in texas who are already exposed but systems are in place so they won't further spread ebola. now, they are assessing about 100 people that they say may have come into contact with the patient. they have cast a wide net. and they say just a handful may have had exposure, and they will be monitored. now, four close members of the patient's family are ordered to stay in their home until october 19th. that's the longest incubation period for the virus. their temperatures are being taken twice a day. they're not allowed to receive

any guests. and that is being monitored by local law enforcement there. now, judge clay louis jenkins saying this was determined to be in the public's best interest. he told me on the phone that the family had been receiving guests. they were concerned that the isolation really wasn't happening of this family there. another question on the call was about whether the patient here in the hospital behind me could receive experimental treatments. cdc director tom frieden saying that's up to the hospital, the patient and his family. and it would be provided, if asked for. back to you guys. >> all right. meg, thank you very much. all right. well, in an odd twist, we're going to be talking about boxer, briefs and video games. "street talk" is on deck. also one stock an analyst says, mandy, is going to double. >> double. >> double. plus, the biggest, boldest, most bearish call on gold that we've heard in a very long time. "street signs" will be right back.

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thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business. welcome back to "street signs." i wanted to update you on a story that has been rocking shares of gopro today. that's the news that founder nick woodman is itself going 5.8 million shares to create a new charitable foundation. and by doing so, has avoided certain ipo lockup rules. now, i spoke to someone familiar with this process, and i was told that the shares have simply

been moved between one of woodman's personal accounts and a new foundation account and that none have been sold. nor is there at this time a schedule in place for the foundation to begin selling those shares, and that's not expected to happen for some time. now, i was told the timing of doing this was actually for tax reasons. woodman's existing lockup would have ended in late december. so we wouldn't have been able to affect the shift technically until the 2015 calendar year. woodman, i'm told, has signed on to that buffett/gates blej to give away half his wealth and wanted to get the process started sooner. my source tells me that the deal that was done in the last day was done for administrative purposes and not because, brian and mandy, those shares will be sold in the market in the near term. they are still in an account. they are still being held. and those are not in the market at this time. back to you. >> kayla, thank you very much for that. time for something we do every single day at this time. yes, it is called "street talk." we're hitting five analyst calls on stocks that we've dug out and

that we believe that you need to know about today. so let's get to it, brian. stock number one is actually two stocks, okay. we're going to be pretty generous today. sandler o'neill saying the visa and mastercard run may be done. >> here's the call. analyst cutting visa to neutral and listen up, cutting mastercard to sell. the note headline says that macro headlands may slow revenue growth especially in developing markets where economists keep cutting their forecasts so mastercard cut to a sell, man day. >> starting an outperform rating and also huge $55 target for microsoft. mr. softy. >> it's not soft anymore. think about this. they say yeah, the pc market could be slow, but the office and cloud franchises with big and they are growing well. also note the xbox is doing well. get this, windows 10, yes, windows 10, could be a catalyst. bernstein, by the way, has a price target of 56. this is actually the second highest price target that i've

seen on microsoft, at least on the buy side. >> okay. credit suisse starting ha hanesbrands. >> about 19% more upside. they simply say they are compelled by sustained double-digit earnings growth deals. also, the intimates space, underwear to you and i, is helping. >> okay. call number four, electronics for imaging, up to buy from neutral at citi. >> yeah, it's a small cap stock. efii is the ticker, about a $2 million market cap. from 50 to 40. about another 15% upside seen in a vast way, it's basically a printer and ink company. it's already done well, up nearly 40% in the past year. >> okay. last but certainly not least, brian, this is our under-the-radar name of the day, the one we've dug out from the deepest and dark et roess rocks that is kite pharmaceutical. >> caught an updraft. this is a stock -- and i apologize for that terrible pun -- that we said might

double. guggenheim says this is a buy and has a $73 price target. no, that is not a misquote. $73 target. the stock is at 32 bucks. that's about 130% more upside seen. this is a drug company. they say some additional likely positive lymphoma treatment data should be coming in december. kite pharmaceuticals really soaring. oh, yeah. okay. anyway. >> i'm crying down here at the exchange. so are our viewers. >> at least you don't have to be here to hear it in person. let's talk surprising news in the rental market. apartment vacancies have gone up for the first time in five years. now, this is really the opposite of what experts have said about rental demand, and it could also explain why some of the biggest reits. equity residential down fromity all-time highs. let us begin "talking numbers" with david and rich. david, your take on equity residential. >> we should have taken the cue

from sam zell back at the beginning of the year when he sold shares at 68 bucks a share. that was the tell at the top of the reit market, right? you look at the space. there's been a tremendous amount of deals, no question. since then we've watched the rate fears really put the pressure on the space. in a tremendous way. the stock seems to have really held to 60.25 level. the interesting thing at our desk is we didn't really see the demand from the dedicated guys at that level. we didn't see them come in and take a stand and buy this stock there. kind of held that 60 level, drifted a little higher, but from every valuation metric, this stock looks relatively expensive. the only one is the implied cap rate where it looks within norm of historical range. again, i think with given the fact rates are going higher, given the fact that there's still the possibility of deals, i think there's a cap on this stock for the near term. >> okay. so you think it's relatively expensive. from the fundamentals side, technically speaking, rich, do you agree? >> you know, mandy, in the short term, i think we have a nice

little technical setup here. real estate stocks have outperformed the broader market on a year-to-date basis. and within the sector, equity residential has outperformed the sector. when you look at that chart, can you see a nice uptrend until about three weeks ago. the stock had been up 30% on a year-to-date basis. now we get a 10% correction which breaks that trend line. but that's where the story gets interesting, mandy, because we hold that 200-day moving average and that very well-defined chart support. i think that textbook 10% correction has created a nice little tradeable buying opportunity. now, to david's point, when you zoom out and you look a little bit longer term, there's some reason to pump the brakes on the bull case here. now, we like that breakout from a multiyear trading range, if you will, but what we don't like is that breakout fails. and we fall back into the pattern. that's bad, mandy. and once again, that's a reason for caution in the longer term, but short term, once again, i like that 10% pullback. and you want to use that 200-day moving average around that 60 price target that david alluded

to. that's your protective stop on the trade. >> okay. so it's all about the timing. rich and david, thank you very much for joining us. and also, you can check out the online edition of "talking numbers." that is in partnership with yahoo! finance. brian? well, as you can see, the president is trying to take really a victory lap on the economy. this is during a speech occurring right now in illinois. but he is hoping the voters in colorado are are listening. john harwood is there, and he'll explain why we just said that ahead. okay. i also want to show you what's going on with the russell 2000 of small caps here. earlier this morning it was down by 11% from the highs. in other words, it was in correction territory. yesterday, according to matt miller, he thought maybe there was a little bit of capitulation in small caps yesterday. today he feels that maybe what we're seeing is a relief rally in the ruffle that is leading the bounce over-roll today. it's a good question and a good theory. you can see there the russell 2k is up by 1%. as we've seen, we're now in positive territory for the three indices. we'll be right back.

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you're looking at a live picture of president obama. he's talking up the economy at northwestern university. the president is making a big push for his fellow democrats with just 32 daysal the midterm elections. and this november the battle for control of the senate could not be closer. especially in the state of colorado. and that is exactly where we find our very own good friend and colleague, john harwood. john. stakes are high. >> reporter: mandy, this very windy state is one of the ones with a senate race that's going to determine just how rough president obama's last two years will be, whether democrats or republicans control, which is why he's giving the speech today to try to talk up the economy, convince americans that it's better off than they've been feeling so far. now, let's just look at a map and recap where the battleground states are. it's roughly the same dozen or so states, most of them red

states where these races are going to take place, but there have been a couple of changes lately. one of them is that kansas, very republican state, hasn't elected a democrat in 80 years, has suddenly has an independent with a republican incumbent on the defensive. on the other hand, republicans are making gains in states like iowa and here in colorado where corey gardner, the republican challenger, has pulled ahead. now, you would think that mark udall would be benefiting from the economy and the fact that the unemployment rate here in colorado is a full percentage point lower than the national average, but he's been emphasizing social issues to try to target women voters. and it's corey gardner who's been trying to shift the subject to economic anxiety. >> senator udall clearly is a social issues warrior. that's what he wants to campaign on. that's what he's made his career on. i think the people of colorado are talking about the economy. they're talking about jobs. they're talking about greater opportunity. and that's what the opportunities that my campaign has put before them. an idea of getting our country

back to work. >> reporter: now, the reason that anxiety argument works for gardner is can be seen in this week's conference board report which showed a new drop in consumer confidence. but of course, we get new jobs numbers tomorrow, and president obama is hoping that gives mark udall and other democrats a lot more to brag about, guys. >> all right, john harwood, apparently who is live at red rocks. or at least close. >> reporter: i am at red rocks. >> seminal, u2 album, gloria. back to the president's message. today he is talking up the economy. if you look at the numbers, the economy is definitely is on the way back. unemployment is down 4% in the past five years. tax receipts on the rise. on the flip side, millions still out of work, and most middle-class families haven't seen much, if any, real income rise in years. here with us now, jared bernstein and jimmy p. let's take your side, then i'll try to play counter and i'll do the same thing with jared and we'll go back and forth and have a good time. the economy is doing better but

you will say it is the slowest recovery out of recession that we have ever had, but i'll say what can any politician, president or otherwise, do right now given that technology is pretty much wiping out most of the middle class? >> well, i think that's what washington has to acknowledge. that the problems with the economy, the fact that, you know, listen, we've had slow growth, we're creating jobs, but they're not very good jobs. well, i disagree with a lot of the policies of the administration, these problems really predate the obama administration. watching there's something fundamentally wrong with the u.s. economy. and what i think that -- we're not as innovative and as productive as we need to be. i think you see that particularly in the decline in business creation. you don't have as much business creation. you don't have that much labor market churn. it's what jpmorgan calls economic calcification. i think that's what's wrong with the economy. we are suffering from economic calcification. >> jared, do you want to counter that, decalcify it? >> well, i think there are some

important points that jimmy made, but actually, if you listen to the president tick off a set of ideas that he had, which actually flow pretty nicely out of this speech, i think many of them are targeted at this calcification. some of them were very long term. so for example, a quality preschool. we actually have real problems with the quality of the educational status of kids from the day that they get to school. access to higher education. these are issues that have a lot to do with the quality of our inputs into our economy, and i believe the president would like to do something about that. jimmy might even agree on some of those ideas. but of course, he's blocked. so i don't think it's quite as dire as all that. and by the way, i'm not all that convinced that as you said, technology is wiping out the middle class, i mean, yes, there's technology, but we still have a fairly solid middle

class. it's just not getting enough of the growth. >> how about this, though, jared. listen, i'm the parent now of a 10-year-old and a 3-week-old so i'll be paying for school for a long time. >> yes, you will. >> the answer for everything seems to be more money. the united states sends more money per pupil than any country in the world and lags in test scores. at what time do we acknowledge that money, throwing at everything, is simply not the answer? >> no, i think that's a great point and i actually think there are many efficiency gains to be made. but i think one of the problems that we face in terms of education policy is that there are kids who are arriving at school because of entrenched poverty with a set of problems that just happen to be really quite expensive to fix. >> okay. listen. >> so i do think we should intervene earlier. >> first of all, listen, here's the problem with pre-k that all those great problems, there's zero evidence those programs are scalable that create a universal pre-k program at any sort of reasonable cost. i don't have a problem with pre-k, but they have yet to show

that you can scale that nationwide. more importantly, what you didn't mention, we have a huge business creation problem in this country. that is the secret sauce. that is the deep magic of american growth. it's our ability to come up with lots and lots of new companies, to come up with new ideas and also force old companies to come up with new ideas or disappear. we're not doing that. and if we don't do that in the future, we're not going to have an innovative, high-growth economy. >> when you say we are not doing that, who's "we"? >> the u.s. of "a." when you look at the number of new start-ups in this country, that has gone down. it continues to decline. >> whose fault is that? >> i can tell you whose fault it is if you want me to tell you. >> tell me. >> we have a regulatory structure, not just a government, state and local which create barriers. >> i agree with that. >> i think that's actually very much wrong. and i'll tell you why. and i think brian, you're exactly on the right track. >> go talk to silicon valley. >> jamie is correct against this

problem, but this is nothing that a president can do that much about. it is the underlying economic trend. for example, corporations are more profitable than they've ever been. don't talk to me about the regulatory structure or the tax structure. they are not reinvesting their capital -- wait a second, jimmy. i let you talk. let me talk. they are not reinvesting their capital because of regulation or because of borrowing costs or because of taxes. they're not reinvesting their capital because they can't find projects with ample returns. >> and they're not being threatened by small companies. >> to change that. >> okay, guys, guys -- >> they lack the competitive intensity. >> let's wrap. first, i push back on the technology not destroying job, read the book "rise of the machines." >> i've read that. hallelujah. >> i think that says it right there. >> i disagree. >> we'll have another debate another day. second point i think we established preschoolers are destroying the economy. that's what i took away from this thing. >> yes. >> jared and jimmy, it was a good discussion, as always, guys, hug it out. >> i was going to say exactly the same thing, brian. i was going to say those two

guys need to go and have a big old hug sessions. let's look at the stock market. currently sitting at session highs. what you're seeing there is a sector heat map back at hq at the mother ship. you've only got two sectors now in the red. energy, it is currently down only marginally, though. currently down only marginally though and materials. well, there you go. look, energy actually went positive as i was speaking. magic touch there. anyway, the much-feared ebola outbreak in western africa could cause another crisis. brian, a chocolate crisis. we will explain, i'm shake in my boots. interesting. plus, if you own gold or thinking about buying it, the radio commercial are still out there, one analyst said gold is going to move 45% but which way, up or down? we would tell you but then it wouldn't be a tease. so you have to stick around to find out.

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the conference call.

the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voiceedge mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business. take a look at that cocoa prices hitting a 1/2-year highs. today, they are down a bit, you get the point. the bigger trend up. most cocoa is produced in west africa. so you can kind of figure out yourself maybe some of the reasons the low, supply, demand has played role in cocoa. 3 1/2-year high, the price of could i co-, mandy. >> okay. your next guest is out with one

of the biggest and boldest and most bearish calls that we have heard on gold in a very long time. brian, gold could be headed to $6 0 a ounce. you can see there it is currently sitting at $1,213 an ounce. let's bring in the analyst who made that call, don la forge of mid-davis research. what is your reasoning for this bearish call, sir? >> it was really the historical pattern. if you looked at the 1980s, peak to trot, you are looking at roughly a 65% decline, so it would take you in this cycle, 1900 was the peak three years ago, all the way to 660. and one think we do know is commodities run in big super cycles, so they eventually die. these cycles die. gold does look like it's dying. so 660 is certainly in the cards. >> i no he that history does have a habit of repeating itself, but history, that's your only reasoning for this? what are the conditions that are in place right now, john, that you saw back in the 1980s?

>> with commodity cycles, they all end the same way. we have done stud ditzes into 1700s, they end batly and bar market he is are 20 years. no not saying 660 gold will happen today but if the super cycle is dying no matter what your fundamental reasoning is for it to go up, it's gonna die with other commodities and gonna die pretty badly. >> what could make you wrong? >> really, this pushing on a string we see from the federal governments, pushing all this money out into the market. so, one of the things that -- we have been bullish on gold for a long, long time, it wasn't until a couple years ago we turned bearish, all this paper money that's floating around. gold does react to that. gold is money historically. so, for some reason, we inject more money into the system.

it finally grabs hold, we get more inflation. then you're going to see gold rise and get another leg to the super cycle with gold. >> john, thank you very much for joining us, interesting call. we will be watching. >> thank you. >> brian? >> thanks. >> are you prepared for the wave of the gold bugs coming out of their holes for the social media? >> and they are rabid, you know? >> they will turn it into the anti-social media. >> i'm gonna get hate mail. >> trolls love gold. i learned that from the hobbit. mandy, seen at "closing bell"? >> first hour of the "closing bell." got my good, trusty colleague, bill griffeth standing here next to me, getting ready. you ready, bill? >> i'm ready. >> is he emotionally? we got to go. see you later, mandy, take care. thank you. we are not done, a couple seconds, three big moves, one big surprise coming up right after this. stick around.

big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

if energy could come from anything?. or if power could go anywhere? or if light could seek out the dark? what would happen if that happens?

anything. one hour till stocks close, 30 session left in the show. three quick things you need to know about crude oil, back on the rise. it is up 56 to 91.29. number two the buffett effect working its magic on auto nation that stock the biggest winner in the s & p 500. warren buffett buying a private group of car dealers, optimism trickling through. he number three a reason to feel good, the best performing commodity right now is lumber, up an ominous 6.66% this week. it is often seen, guys, as leading economic indicator of building demand. so, we leave you on "street

signs" as we try to do every day, with a reason to feel good about things, plenty of reasons to feel bad. another reason to feel good, "closing bell" coming up right now with man day and bill griffeth. i'm off tomorrow. peace, everybody. have a great weekend. i'm gonna change diapers now. >> in the chair, why he is changing diapers. picture that, understand why he is doing that welcome to "closing bell," i'm bill griffe griffeth. >> i'm standing in for kelly evans today. checking in, get a check of what the market is doing now. you know what, looking the it right now, bill, think not a whole lot was going on, actually, incredibly wild, this intraday chart of the dow tells a very different story. another volatile day here on wall street. as you can see, only down by 29 points but we were -- we are up by 29