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 points but we were down.

>> a turning of the tide, big selloff yesterday of 238 points, asia down big overnight, europe down especially hard this morning and we were down, as you said, 130 until noon thereabouts, the return there. we are seeing plus signs right now for the most part. let's check the rest of the market here, the s & p and the nasdaq. we are getting closer to our boards here, our positive as well, the s and p up 3 1/2 points, 1949. the nasdaq is also higher by 16 points, see the russell two, guys, leading the way, the big laggard to the downside is the big gainer to the upside today with a gain of 1.25%. i just want to mention because i mentioned this on street signs as well, bill, but friend of show was actually suggesting that maybe yesterday and the way there was maybe leading the market down or one of the reasons why it was leading the market down, maybe this

capitulation and early on this morning down by 11% from its highs. fully in correction territory and maybe the correction in the russell 2 k, keep an eye on that >> the jobs number, too, maybe ready for that. >> talking a bit more about these markets in our "closing bell" exchange. cnbc contributor from sun america funds, shar-stark, adam thurgood of high power, jim lowell from adviser investment he is and of course, last but not least, our very own rick santelli, a cast of thousands here. heather, willet me get to you, what do you think is the number one concern in the markets right now? >> there are fierce of ebola and faded fears of ebola, seeing a lift in the airline stocks as well. you alluded to the russell 2,000 and recent divergence that we have had. 12% difference between the s & p and the russell 2,000000. russ

we need to see a strong bounce as we are seeing a little bounce today. >> adam what do you think of the bounce we are getting today? >> better if the russell 2000 was above 1100. the russell is trading at a pe ratio way past its long-term average. which have gone through the jet cross, that in itself isn't a big deal. 1100 is pretty strong support level. i would feel a lot better back above that level and i totally agree that small caps will lead the direction in the short run, i'm positive what's going on. >> jim, you agree we need to keep our eye on what's happening in the small caps, direction for the broader market? >> no, we keep our eye on what the u.s. consumer is doing. income, savings and spending looking strong, bluer chip kinds of names, especially in the

u.s., are going to be able to weather downturns better and rally equally as well. we understand that the small caps are always very attractive, either as a negative or as a positive story. really not focus old technical charts nearly as much as we are focused on what the consumer, especially in the u.s. is doing, given that the backdrop of the two other leading economies, china and europe, are clearly, clearly in trouble. >> sharon stark, tomorrow, we get the jobs number, i don't know what the estimates are at this point. i mean, the hope, i guess is that we get something above 200,000, we have done most of the last six or seven months, what are you guys expecting at d.a. davidson and doing about it? >> the 235 to 245 number, 245,000 new jobs for the month. anything below 200,000, i think you could see bonds rally even further than what we have had this week. >> that horrible number last

month. >> we certainly did. >> these things didn't get revised, always wonder why people put so much stock on these numbers when they come out in the first place. >> makes good television, that's wh why. >> into toad watch the trend. >> rick san telly, what we want tomorrow is a goldilocks number, not too hot, get everybody up into a huge, big frenzy about maybe the fed having to up their timetable far rate hikes, don't want a number too soft what do we need for the market to be calm and collected about this? >> not look at the number we need tomorrow you there the lens of the marketplace, i'm gonna look at it through the notion of being in america. i hope we get a huge number. way through the roof, love to see 400 or 500,000, i don't think it's in the cards, what you're really asking is it's most important to investors to make money. i understand that right now, considering the amount of information they know, they can't get inside janet yemen's brain, even if they could, not

sure decisions have been made with regard to the final outcome of exits of zero interest rate policy. in the end, we continue to monitor that inlessers do what you said august number that isn't too strong. so you got to kind of straighten out how you're looking it he market as an investor, as an american, as an economist, an analyst. i will tell you this, when it comes to interest rates, it's just not that fancy. up five basis points from 238, trading at several hours ago, the reason is stocks. i think that inverse relationship stay intact, stocks down, rates down, price up. >> do you think that low rates are reflective of demand for money in the economy? >> lack of demand? >> yeah, i think the low rate is basically a lot of different ingreed enters why. i think the relative value trade considering what's going on in europe, their scale of rates, i also think it's a good barometer

of global growth and i think that some would question that it's not a great barometer of u.s. growth, but i would beg to differ. yes, wither growing, yes, wither growing on a relative trade much better than everybody else, if you look at history as to how we bounce back after recessions, this one doesn't quite cut the mustard and productivity has definitely taken a couple of steps back over the last two years. >> rick, i want to get back to our other guests in a second, i want to ask you a question about today's trade, we see the correlation between the stock indices moving back higher again and the yield, that same year also moving higher at the same time, at the same rate. it happened around the time we got word that the officials in hong kong announcing this he would meet with the protesters there. do you think there's a correlation with that to some degree? >> you know, normally i say it's hard to handicap that many traders i talked to today were nervous because of the many days down in stocks and what they may have to deal with the number

tomorrow. i think those issues take on a bigger presence in the market, move the markets easier, my answer today would be yes. >> certainly a lot for investors to contend with right now. so adam, what do you think going forward? now we are in the third quarter, okay? sorry, now the fourth quarter, what do you think investors should look at most, direction for the stock market? >> i think the cap x cycle. seeing cap x pick up. i was listening to a -- read an article liz ann saunders was in and basically said that cap x is at -- fixed asset investment is at 50-year highs, that's not good. the age of our investments is way too long. and the -- we need to basically come back from that. so, we are starting to see cap x pick up. we have seen quarter over quarter real cap x growth about 10% and that's good more the technology sector. it's good for the industrial sector, because that's where cap x dollars tend to flow.

>> capital expenditures that boost the economy and the technology sector most beneficial as it had in q three going forward. >> sharon stark, the fixed income strategist, what do you think refresh yields will do this quarter as the fed wraps up its quantitative easing program, presumably? >> looking for yields to creep up slowly, perhaps be at 270 to 275 by the end of the year. but you know, as rick said earlier, there's a lot of money flowing into the united states because fundamentally, our economy is stronger, frankly, the strength of the dollar helps as well. we also saw some short covering going on this week. 270, 275, i would say if we err at all it would be too high h >> i'm glad we brought up the issue over the strong dollar that does continue. heather to what degree are you concerned about the commodity complex? energy a whole different story, every commodity has its own fundamental story going on, a

number of commodities now in bear market territory, down 20% or more off their highs. >> you look at oil right now, which is at all-time the cheapest price -- cheapest level since 2010. strong dollar, the dollar has risen 7% since the end of june. and i know that we are alluding to deflation concerns again because of the strong dollar, but i would argue something different, that because of the weakness in the rest of the world globally, you look at a divergence between the dollar, the yen and the euro over the past two months, it's purely a function of, as you said, mandy, foreigners are flocking to u.s. dollar, the u.s. markets, because maybe relative to the rest of the world where the contractionary monetary policy the rest of the world was just beginning to ramp up stimulus efforts and their quantitative easing, not i beginning but the beginning stages. >>s a thank thank you very much. time's up, pencils down, we must move on. >> our time is not up though. >> no, it's not.

>> 50 more minutes left to the closing bell. this stage, the dow, the s and p and nasdaq holding in positive territory, this is really important to see follow through from that bounce back that we saw around midday, around noon, and we need to see a strong close, but at this stage, doesn't look like the s and p is going to have its first four-day losing streak of 2014. >> traders agree, the last hour of trade is critical, we will be here to cover that for you. warren buffett this morning telling cnbc exclusively he still likes this stock market. >> i like buying it as it goes down and the more it goes down, the more i like to buy. >> and he said he was in there buying yesterday. he is all-in on stocks in the u.s. economy. should you be? the pros will be weighing in on that issue coming up. plus we will be conducting a live poll where you can chime in on that issue coming up. >> also ahead, the ceo of constellation brands, the maker of corona beer, robert mondavi wines and other very fine bev rams. he is going to be speaking with

us exclusively. find out if he sees u.s. consumer spending in the final quarter of the year. up next, president obama is right now in illinois, saying we are better off than we were six years ago economically and so you can thank him and the democratic party. you're gonna hear what he said. we have larry kudlow and barney frank, they have become quite the team, weighing in from both sides of the aisle when we come back on "closing bell." stay tuned. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today.

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>> this is one of the battleground states they need to win to win the senate. president obama was speaking in illinois today, arguing that the economy is, in fact, getting

better and that his policies have worked. >> this progress has been hard, but it has been steady and it has been real. and the direct result of the american people's drive and their determination and their resilience. but it's also the result of sound decisions made by my administration. >> you think the economic issue would work better for democrats, look at the unemployment rate nationally, 6.1%, a full percentage lower, 5.1, here in colorado, democrat incumbent, mark udall, focusing on social issues, a more promising way to breakthrough and his republican challenger, corey gardner, talking about the economy and economic anxiety. >> you know, if you look at the last several years, the median household income has declined by over $4,000. people are working fewer hours every week thanks to obamacare it a veneer, scratch the surface

of the economy and there are really people hurting. >> that's why democrats and the white house are -- both have their fingers crossed for this jobs report tomorrow which could provide some good news that they could talk about on the campaign trail, guys. >> thank you very much, john harwood. does the president have a point? will it help tip things his way in the midterms one month from now? >> reaction now from our larry kudlow and former congressman, barney frank, last cnbc contributor. good to sue both. welcome back. mr. frank, do you agree with the president at this point? i mean, he pointed to job growth, 10 million jobs created over the last decade, best growth rate in a while, capital spending coming back here, do you agree with him that the administration can take some credit for this growth now? >> very much so. especially when you look at the rest of the world. if you look at all the developing economies, which is the relevant comparison, wither doing, by the far, the best, doing even better if it wasn't for the obstruction of the very

conservative republican party that emerged. it's also the case, you have got to figure out where we were, no president has taken over an economy as bad as this since franklin roosevelt. the american economy was shattered, people were angry, yes, i understand there's still uneasiness and people are uncertain, the american people went through a trauma just before president obama came into office that has had very negative lasting effects, given the drag in europe, given the slowdown in much of the rest of the world with whom we do business, we have been doing better than others and on every policy issue where the president has disagreed with his republican opposition, i think he has been correct. he hasn't been able to prevail always and i think the economy would be in better shape. i would throw in one other area here, special specific area, the fed reserve, many are critical

of a appointee, ben bernanke, initiated ant federal reserve ignored that criticism and went ahead with what they were doing, better off economically than if the conservatives had preprevailed. >> doing better than others isn't necessarily good thing if elsewhere, a low base. larry, what could we have done better over these years? >> look, no question the economy is better than it was during the crash. i don't disagree with that at all. i don't think the trillion dollar spending plan worked. i think obamacare has been an inhibition on economic growth and job creation. i agree with mr. frank that the federal reserve was correct in 2008 to 2010. the achilles' heel is take home pay. why doesn't he say i'm going to let the keystone pipeline could gohr through?

say i'm going to help energy revolution? something like 80% of the new jobs come from energy. i'm going to build pipeline infrastructure across the country. i'm going to export oil and gas as much as we can to help europe and change the dynamics of the middle east, why doesn't he say let's defer obama care because the mandates are not only unpopular, they are anti-growth. in other words, stuff he could be saying, but i understand, barney frank is giving you the democratic perspective. i'm giving you a republican, conservative perspective. >> the whole idea. go ahead, barney. >> one difference with larry, keystone is a -- i myself am supportive of keystone. but putting that aside, an important issue, the policy of the united states government has been very supportive of energy expansion. there is a great increase in the amount of energy being produced by the private sector. the argument in some ways the administration is restricting that is simply incorrect. >> no, barney, i'm just -- look,

barney, with respect, you know i respect you, talking about opening up federal lands, the newest studies show all the estimates now, all the sometimes for oil and particularly natural gas are exploding. they are finding new basins. >> yes. >> a lot of this is on federal lands and the other thing, the administration has done, i will give credit here, they are beginning to open up the export of energy and i like that very much. >> let me respond, larry, in this way, the fact is that we are doing very well without going to the federal land. we have an asset dam on federal land. i'm a bit surprised to some extent, my conservative friends, the president said that to mitt romney. the private sector is doing very well. we have got a great increase in energy. at this point, that is not a problem that we needed. agree on the export, frankly. i spent years fighting a terminal to import liquid natural gas a place it shouldn't have been in the district i represented. now the notion -- very lucky they didn't get it, because they

would have an expensive, empty operation. but i do think, as i said, the record is very clear, the energy sector, the private energy sector, booming. >> booming. >> all i'm saying is let boom it even more. let's create a couple new jobs. >> socialism. >> opening up federal land. no, i don't want the government to do it. [ overlapping speakers ] i want to highlight, king dollar is very strong, very, very bullish for our economy and our stock market. the drop in gold prices tells me there's no inflation. and the break-even tip spreads tell me there's no inflation some therefore, these are bullish fundamentals for the economy. bullish. by the stock market, warren buffett is right r >> end on the point of great agreement today. >> before we let you go, give you a softball here, mr. frank,

but it is a news worthy one. as you know, a high-frequency trader now indicted under today frank for what's called spoofing in the market, place these trades that are then withdrawn moments before they would be executed, put out there mainly to find out what the response would be and where the market was going and try and test the waters. now, under dodd frank, that's illegal and somebody has been indicted on that. you got any comment on that? >> i know nothing about the facts and i have nothing to say about the guilt of the individual or -- innocence of the individual, entitled. but secondly, proud that is an example of what we did an example make the market work better. our bill was not anti-market. try to make it better. my liberal friends who say, well, why weren't more people prosecuted? part of the problem is some of the things that were wrong were not illegal and i'm very glad to see this is a point i have been trying to make that one of the things we did he in the bill was, in fact, to make criminal things that were inappropriate

but not previously criminal and i hope we will see more of this effort. again, i don't know whether this individual is guilty or not. >> right. all right. good to so you both. thank you all. >> thank you. >> appreciate it. >> welcome. >> larry, good to so you. take care. heading toward the close here, the dow's up five points but it was down 130. >> that's right. >> it has come back. around noontime when the tide turned and we are heading toward what could be our first positive day of the week. >> that's right. also cost spell lation brand shares lower on information that came out this morning, discuss that with the drinkmaker's ceo, exclusive interview with the ceo. later, billionaire investor warren buffett telling cnbc this morning he is buying on these market dips, should you we have pros weighing in. stick around for our live poll on if you feel you should be as bullish as buffett is right now, right here on "closing bell."

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>> is that what your office looks like? >> no, i'm not in my office. >> where are you exactly? >> exactly. >> where are you? is that a real bar? can't hear us? >> no, no, i'm not studio. >> what happened in the quarter? >> i can hear you. >> what happened in the quarter? why did you miss? we had two unusual items, a recall basically a timing issue, replacing that inventory in the third quarreller. secondly, a tax rate a built higher in the second quarter

than we expected but, again, we expect that to normalize for the year. so, those two items affected us by about 9 cents and overall, our earnings would have been $1.20 but for those items strictly timing, get those in the second and third quarter, we maintain guidance. >> made an acquisition in the tequila space. i understand your margins for wine improving as well, what do you think will be the growth driver for you going forward? is it beer, is it wine is it tequila? something else in the beverage space? >> we have been in all three categories, we have got tremendous momentum in our beer business. first quarter, our beer business was up high single digits, second quarter, we had 11% dollar sales growth. so, incredible momentum there, our spirits business, we are growing at nearly twice the rate of the market. and in our wine business, we

gained share on a volumetric terms, all three categories generating very strong goat for the company right now. >> but you are ramping up that -- the facility there in nava, mexico. let's face it every time you're on, we talk about the acquisition of modell low and how well it's done, now leverage that up even more, so you're sort of doubling down on your bet on beer right now, aren't you? >> absolutely. our beer business has been growing even beyond our expectations. with that kind of strong growth, we have to plan for the future, so, we have embarked on another expansion of our brewery to 25 which makes it the largest if not the largest brewery in the world. we bought the glass plant adjacent to the brewery and we are also going to expand that into one of the largest glass plants in the world. and so we are planning on

planning on this growth that we have and we believe the momentum is there and given the demographics, the growth of the hispanic population, that that momentum will carry well into the future. so, we can't afford not to have the capacity to meet demand. >> even if you're doubling down on beer, what about wine in the bidding war with australia's treasury wine estates recently owe lapsed. would you be interested in making a bid for them instead? >> yeah, so, not interested in treasury, our wine business is i believe the best wine business in the world. wine continues in consumer goods terms continues to be a very fast-growing category. we have some of the strongest brands in the business with brands like robert mondavi and dreaming tree, black box, these are all big growth drivers in wine. similar to our beer business, we continue to plan for the future

and to ensure that we have the brands and the capacity to continue being a winner. >> thanks very much for joining us. not interested in treasury. >> see you later. >> i think that's his office that's got to be his office there. i mean what else would the office of ceo of constellation brands look like? >> i want an office that looks like that. okay, less than half an hour to go before the "closing bell." at this stage, let's take a look at what the markets are doing. the dow slipped very marginally into the red here, keep in mind, we did come off a very low base, down by 130 at the low of the day. >> high volatility is back, in case you hadn't noticed here lately. our jeff cox says this is the new normal and that the road is about to get even bumpier as well. we will find out and talk about that coming up next. later on, the very latest on ebola here in the united states. the dallas patient with the deadly virus may have come into contact with as many as 100 people before being diagnosed. wither going to speak with the dallas mayor, mike raulings, about containment in the next hour of the show. you know what my business philosophy is, reynolds?

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no doubt, the market has been moving and shaking a lot lately, according to our jeff cox. all this volatility may be the new normal. >> okay. well, jeff is here, along with

keith bliss from cat toe and company to discuss. great to have you both with us. jeff what are you noticing? you're always seeing something interesting in this market? >> thank you, man ditch i want to say from our last segment, i'm always long beer. >> aware of that. >> as far as the market goes up, seen this show before, seen it twice before, seen the federal reserve come out of two rounds of, aggressive monetary easing and seen market reaction to it. now, we're coming out of the third round of that and the fed's got a 4.5 trillion dollar balance sheet. do you don't make an omelette like that without breaking a couple eggs. you look at the grand scheme of thing, whether it's up or down, i think this is going to be the new normal, big triple digit up, triple digit down, going to see a lot, investors have to get used to it, in we figure out how do we get out what we're in? >> pete, we have talked about this before and it's not like volatility is unusual in the market. what was unusual was the lack of volatility in that period we went through here, but now it's

back again. >> that is correct. so, most traders use 20 as the benchmark between lower volatility and higher volatility and while we are approaching that point, still not getting there, it is true, the vix has appreciated about 26% the last two weeks. so, that would cause a spike. and jeff's general thesis, i do agree with, we have a lot of data points and data inputs from around the globe we have to worry about, monetary policy, political wars going on, but the market in the futures for the vix and the options is telling us something a little differently. if you look out the term structure, means longer term, trading between 16 1/2 and 17 1/2 on the vix. the market still not expecting this outside volatility yet. >> jeff, a moment ago saying we should expect these triple digit moves in both directions for some time until "we figure out what kind of" i don't know, what kind of mood the market is in. what is going to be the seminal moment, the trigger point allows us to work out what we are in. big events? >> bill, you remember around this time last year, i think i about knocked you off the chart

when i said headline risk is basically out of the market, all about the fed now. the fed was in control. now the fed is stepping aside, headline risk is going to come back into the market. i think as soon as you see the level of turmoil that we are seeing, as long as you kind of see the geopolitical things and the uncertainty about the economic recovery, the wealth disparity, those kinds of questions, i think that this is long-term moves, long-term volatility is going to be here, the interesting thing, present opportunities, we have seen active managers get crushed, low volatility environment might be better for stock pickers now, ways to play volatility is going to be a big thing as we go forward and into 2015. >> we have seen a tremendous move toward exchange-traded funds as individuals migrate away from active managers jeff was talking b. >> only if they start making more money. >> jeff is correct, volatility would give them opportunity. the only counter point, longer

term, i agree with his thesis again, remainder of the year, remember, entering a seasonal pattern, usually very strong for equities, means volatility will be dampened. august, september, october have been the traditional volatile months throughout history, but we are in a midterm election year right now, midcycle and 21 of those since 1928 and their average gain in that three months is 6 1/2% and up 86% of the time. i would look for volatility to not spike for the rest of this year but maybe into 2015, but i also am calling for gains into the end of the year. >> what kind of gains? >> i think we will be up from 8 to 10% on thesome and p 500, pull back some here, we caught the market very oversold yesterday, the 1957 level on the s & p 500, continue to trade down. we think there's marvelous buying opportunity now. >> guys, i think markets always a discounting mechanism, discounting future turmoil when the fed starts to step away and chart that course forward.

>> we have seep that the other ends of quantitative easing. good to so you both. thanks for your thoughts and thanks for not knocking me off my chair this time. 20 minutes left in the trading session, dow up just two points, but a bit of a victory for the bulls today, after the dow was down 1 30 midday. >> okay, plus, ahead of tomorrow's closely watched jobs report, we have kate rogers a special report on why startups are key to the economic recovery. that's coming up as well. stay tuned.

quarter of an hour until we are going to be closing out the day. as you can see, the dow, nasdaq and s & p are kind of sitting flat after the big rally we saw in the markets yesterday. we have really come back from the lows, dow down 130 points at one stage a. >> the s & p what the traders watch very carefully, got down to key support levels earlier this session, it has bounced back even though slightly negative now, but a lot of chatter among traders today about is where the s & p would finish the last hour of trade. >> bring up a board of what energy prices are doing right now, what we saw earlier on today was that oil prices go below $90 a barrel, the very first time in 17 months, back above that stock reese covered

somewhat today, bill, wti recovered. >> look at the timeframe of when it bounced from that low. we will see you the ten-year yield, look very similar, look at that, just before noon eastern time is when that market started to bounce and we started to see the yield come back. everything moving in tandem. the russell 2000 a leader to the upside today, courtney reagan covering all that for us at the nasdaq market site. >> what a fickle market, sought nasdaq 100, nasdaq composite, russell 2000 start the day mildly positive, then into negative territory, 11:30, positive again and that trend continued throughout the day, the asset classes that we consider riskier, like the small caps, like the tech names that tend to have these exaggerated

moves, the markets move, harder than the one wes deem less. that is what happened in both directions up and down today for these asset classes. while the russell 2000 out of territory the second half today, points out this is the ninth 10% correction since the start of the bull market. we neigh not be done because we came out of the territory. look at the nasdaq winners. look as if we will close

positive. netflix, the adam sandler moves, back to you. >> i feel like you've done my job, courtney.

art cashin stopped by the booth and said $200 million to buy on the close, the imbalance, was to the plus side and we are seeing that come into the market right now as a matter of fact, the dow is up 15 points. i think that's about the high for the session right now. nasdaq up, s & p and the russell is up almost 4% right now at 1095. >> art cashin seen it all, hasn't he? been through so many bull markets and bear markets,

certainly a man of wisdom. >> dean of the trading floor. joining us now is mark spellman from the alpine equity income fund and jim keegan from the ridge worth total return bond fund. good to sue both. welcome back. what are you doing with this market no you? do you embrace ed volatile thate have seen? >> i don't think there's much volatile at this time, to tell you the truth, down 3% from the highs, i don't think we have seen anything yet. i would stay. in our alpine equity income fund, we are on the low beta side, somewhere we anticipate staying going forward. we are finding good stock there is. very comfortable on the low beta side. >> said we haven't seen anything yet r you implying we are going see something? >> no, in i think a market where global economics are slowing down outside the u.s., the dollar strong, implications for the market, still a lot of eyes out there. we are underweighted in energy. have to be in the right areas of the market.

>> what are you doing with your total return bond fund now? strong dollar got to have an impact on you right now, among other things, right? nch>> absolutely. wither in a zero interest rate policy world. stay in this 2 to 3% trading range in our opinion on the ten-year treasury, probably fed will be later to raise rates rather than the market thinks. as a result of that we say bonds is doing pretty well, potential growth is clearly slowed in the u.s. around the rest of the world and people have to recalibrate expectations for interest rates, fair value on all asset classes and volatility. >> let me just pursue that further, you're not going for the high yield bonds that some managers have gone after to get that more income, taking more risks but talking about safety now? so you're willing to accept that lower yield? >> absolutely, reduced our exposure earlier this year. they are starting to cheapen up,

starting to look certainly more attractive than four or five years ago, looking at them, not yet. >> some of the estimates are in from morning star, the outflows from the pimco total return fund. i have got here, outflow estimate for september, 17.9 billion dole lars, i think equates to about 8% of the assets at the end of august. a total return bond as well, any inflows that came out of pimco? >> we know they have come out of pimco. happy to help them get smaller. >> how much have you seen come in? >> we have seen in mutual accounts, approaching 100 million, we expect more. >> that's very interesting. you don't like energy, what do you like? technologies? >> stock by stock basis, a couple of names whacked even today. raytheon is a name, down around $97. you know, the patriot, tomahawk missile, 2 1/2% yield, cv is.

i think is becoming very attr t attracti attractive. $6 billion share repurchase, 20% of the shares outstanding. i think it's overdone. ad market weak, the story not over, the up fronts are done, the spot market still to come, i think overdone there as well. the other name we like is zimmer right now, which i think is a terrific name. >> very good. mark, good to see you, jim, i understand the smile on your face now. inflows coming in return bond fund. thanks for joining us. appreciate it very much. coming back with the closing countdown for this thursday in a moment. >> after the bell, scott wapner, kayla tausche and kevin o'leery, important stock story of the y day, go pro shares slumping. financial noise

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from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm. three minutes left in the trading session, article carbon got it he was talking about the 200 million to buy on the close here and we have seen the averages come back on the close. the dow now up 13 points. and when we see russell is leading the way to the upside today, it's been the leader to the downside lately, but 1% gain there, very interesting trading pattern today. you see it in all -- virtually all the markets, the dow selloff this morning, we thought, here we go again, down 130 points, until noon eastern or thereabouts and then this come back, you're going to see this trade again for the ten-year, for example, the yield was down

to 237, 238 or thereabouts and then it comes back again. we are already back up to 243. you see it in oil, down to $88 a barrel in some markets, not in this particular contract, this november contract, but the same thing, stop right there, and then came back and we are finishing there up 59 cents, very quickly, steve, give us ticker symbol w, ipo at the stock exchange, bob way fair, an online retailer, did pretty well. >> kind of surprised us. came out of nowhere for us, we knew it was coming, an online retailer, price to 29, 25 to 28, opens at 36, it is $38, up 30%. now, look, everybody loves to shop online, look, mandy standing right here, here's a couch. >> you got to feel it. >> it's what toward buy this stuff online. >> it could be extremely hard online. >> now, the good news is people love this stuff. the bad news is the company isn't profitable at all, may not be for years, but got 35%

revenue growth, 35%. and that's what people are hoping for. down the road, they will be profitable, choose sound like an old story? heard it before, does she look good -- >> feeling so comfortable with these high heels on. what i needed. >> the shoes, the skirt, everything matches. >> way fair girl. >> talk about what went on with the market, the amazing thing about today -- >> what was the turn about? >> the minute europe closed, the volume picked -- went down and the markets lifted. it was very obvious today, heavy selling, a lot of issues coming out of europe the minute that stock left there. >> very good. thank you, bob. mandy, see you tomorrow. you can go back and take a load off some more if you want. >> cuddle up with that lovely way fair their chair. >> virtually flat, we will wait to see what the jobs number is tomorrow morning. that will definitely set the tone for the end of the week here.

expectations somewhere above 200,000 jobs out at 830 a.m. eastern time that is it for the first hour of the closing bell. thanks for much with aing. the hour number two with scott wapner, kayla tausche and return of mr. wonderful, kevin o'leary. see you guys tomorrow. bill, thanks. i'm scott wapner joined by kayla tausche once again, and shark tank's kevin o'leary, how we are finishing another wild day on wall street. still waiting for the dow to settle out. it looks like it's actually going to end up closing negative by nearly five points. thesome and p hasn't had a four-day losing streak all year around it, too, looks like it is gonna eek out a loss and that will be its first four-day losing streak of the year, unless things continue, kayla, to settle out and actually goes positive, but this is a wild day u >> that's loss by .4-1,000th of

a percent. really call it a four-day losing streak? >> just by the stats. the stats tell the story. what a crazy day though. if you look at the move inflorida day in the market itself, there are a lot of people who are going to be looking at the move in the russell, kevin. there was a lot of consternation of we are the russell 2000 had been going lately, small caps rolling over big time.

>> traders have been lamenting all throughout the spring and summer the lack of volatility. now it's finally back and we saw a ton of by siders locking in slight gains for the year. we saw a lot of selling from the hedge fund community, early on, a lot of media names that they had been holding. there was some carnage on wall street earlier this morning as people watched the slide multiday slide and they we thought don't want to go what we have made, we will take whatever profits we can at this point. >> i wound other, kevin, an experienced investor what a day like this on the heels of yesterday does to your psych kim step in and buy, down the list of the stats we were reading off yesterday and today, lowest

close since august, worst week since august, here we are with people stepping in to buy the market. >> well, in my world, as you know, i don't own a stock that doesn't pay div dends, so my volatility is about .8 of the market. so for those who bought the alibabas and the gopros getting wickedly punished, i say to them come follow me into the land of dividends, where you get security and more stability when you get this volatility. my portfolio is paying me like a chicken on a spit dripping cash >> that's the way i look at it. i don't care it goes 5%. the companies i own have cash flow paid to me. the rest is speculation. >> warren buffett saying i only buy things i think will be investments for the next 50 years a good return to on my investment. what is your time who are rise in? >> proves that warren buffett is a vampire, he will be about 160 years old when that day comes. >> whoever the successor is at that point. >> well, look, i think he's

right. always right with long-term division r i think with people more concerned what their mark-to-market is next month, you are going to get a more volatile market, no question about that, kayla. here on in to the end of the year, we will see 5 to 10% correction he is and then rebounds, as people gnaw through the concern. the market isn't undervalued anymore, it's fully valued or fairly valued in some people'sens. what matters is pe expansion and upside surprise. the middle of range for the sometimes on s & p, $117. get to $120, market goes up by the end of the year, as much as 10%. >> kayla to your point, the s and p starting to settle out completely unchanged. so we are going to have to wait to see how we want to characterize what happened over these last four days the s and p 5. >> astounding after what we saw today, the weakness this morning on data here that capitulateded on draghi's comments about how the european economy was weaker

than expected, how woe need two years at least of stimulus. he was incredibly pessimistic and then christine lagarde out of the imf saying almost the same exact thing, europe closes, finally the bottom in the market, then all of a sudden, people start buying it again. >> dr. j, with us, too, from "fast money", of course, john najarian, i guess we are going to have to wait perhaps for this first four-day losing streak for the s and p. >> yeah, and i think that's what a lot of people were doing, scott, they were waiting. we did see that sort of wash out this morning when we were down 130 points in the dow jones. s & ps and obviously imm -- iwm, rather, all i can at aing it on the chin and nobody really wanted to be short down there at that level into tomorrow's jobs report. that was interesting. despite what kayla said and she is absolutely right, christine lagarde, she was as negative, kayla, as i have ever heard her. and yet, that, from the camp that wants lower rates for

longer or the new mediocrity or whatever it is, that is exactly what she outlined and i think a lot of folks want to see what the numbers look like tomorrow. was the past jobs report 30 days ago something we can forget about or is it something that's trend that's about to reoccur here, joe? >> what can we expect the next two years if we do, in act if a, have two years of stimulus in europe, europe, which has been the tail wagging the dog here in the u.s. so to speak every single morning when we wake up, tradinging on the back of whatever europe is doing, do you think it's going to drag the u.s. market along to any extent over the course of this stimulus? >> well, this is where i think bill gross and others are going to be right, kayla, and that is lower for longer, we are gonna see that i believe and i have seen all along it is not just our fed that's pushing on rates to the downside, it's global pressures pushing on rates. the markets are usually where we

find values based on buyers and sellers meeting, we saw today in gopro how that can be gamed, whether you bring out a very thin float or whether it is you add some, liquidity so that float and thus the shorts aren't necessarily the same percentage they were before and don't get squeezed as hard. people gauge the system most of the decade and you final weeks and months of the year, see what kevin o'leary talked about, i think we will see those wooshes to the downside and you catch somebody and it goes right back to the upside. >> the s & p, by the way, as firmly made a statement, moved positive and i think it's gonna stay there now. it says i will not have a four-day losing streak yet. >> that is a statement indeed. oh, my gosh. look at that percentage. >> we will keep an eye on that keeping an eye on the go pro story. >> speaking of shorts. >> reporting on this story all day. the stock got hammered, kevin,

dr. j, i know you know the story, those of how don't, the woodmans, nick woodman and his wife set up a foundation, they gift some of their shares into the foundation, they get around the lockup by doing that and the shares were absolutely hammered today. people, i think, kayla, just assumed that, okay, getting around the lockup, they are putting the shares in the foundation and then they are gonna sell when both of our reporting would suggest that's far from the truth new york immediate plans whatsoever to sell the stock. >> that was, of course, the first question that i'm sure you and i both asked our sources on the story, what point do the shares come to the market? that was the market's fear, right? you have the foundation that needs money to fund itself to give out grants, to hire people, they would need money to do that. and sure, at some point, the foundation will need money to do that, but that could be quarters out yet. the lockup for woodman won't end of december, count six months from the june 26 ipo and i was

told that the reason why he chose to do this early was to have the transaction firmly take place within the 2014 tax year for deduction purposes, you do all the paperwork the last few days of the calendar year, scrambling to get it together and be able to file it. this could would be a much cleaner transaction but no intention to sell, transferring it from one account to another for administrative purposes but that really didn't seem to placate shareholder who said, look, i don't like anything squirrely going on here. >> my sources would say, look, the only way that jpmorgan did this in the first place was because of the philanthropic nature of what the woodmans were trying to do if the in the first place, try to be charitable, the stock getting absolutely creamed and he is getting criticized, kosher or not? >> i feel very sorry for nick and his wife who have got to know from shark tank, a guest shark this year, think of the story. he is actually doing something very good and philanthropic,

taking a huge amount of his wealth and putting it into a trust that in perpetuity will be given to charity and doing good things and the whole story is he is trying to get around the lockup agreement, the story hitting the street, maybe he's been advised by lawyers no to speak about it. >> they are still in a quiet period, remember? >> probably good advice giving how tight compliance rules are. however, i'm going to put some blame on the bank syndicate on this one. what we should have had here is total transparency, should have had a light shining on this right on the perspective this was the plan all along, cleared in the market and it wasn't. so, let's take a banker around shoot him outside of the stock exchange for this one. >> of course, people on twitter, too, scott, saying, okay, when the company went public at the end of june, you knew when that lockup was. you knew it was six months later, you knew it was at the very end of december, that's not a new fact. so, could you not do this in a 2015 tax year, not choose to expedite this process, people critical even though now they do understand some of the nuances

around it. i was told he is committed to the buffet/gates pledge, which you give away half your wealth, not on the website, we haven't confirmed that. >> i don't think we are going to hear from him what scott said, within the quiet period, mentioned it too kayla, lawyers telling even though you want to ping the phone and call us now, not going to do it. i will speak for him. this is outrageous, poor guy, throw him a bone, trying to give money away to charity, this is tough. >> i hear you, but the flip side is for those, you know, investors this stock is up 200-some-odd percent from theism po. >> a master marketer, saw the future well, people envy that. >> if people knew this was going to come earlier that a lockup expiration, which everybody has their eye toward on an ipo, if they knew it, would they have continued to buy the stock in the last several weeks. >> their criticism some of that blame, some of that lack of transparency and that cloudiness has to be blamed on the bank syndicate. they should have expose it had if they knew t

>> dr. j, i knew you wanted to get in, a strong opinion today on the halftime show. >> what i think, scott, i bet even kevin would agree, if somebody appears to have some sort of insider knowledge or for the folks that actually okayed this transaction to move from the gopro founder and his wife into this foundation, those people that knew that that was coming that knew that there's 22% of the float basically even whether or not it hits the market or not, coming and available to be sold in the market, that's insider knowledge, scott, and -- >> doctor, what do the options tell you? what was the option action yesterday telling you. >> the option action the past three sessions has been huge on the put side, to the downside. so the people that have this information i think, kevin, were the people that were buying those puts as the stock is hitting its zenith, these guys are basically putting themselves in position to make this windfall that they made today. whether or not shares end up getting sold over the next three months, six months or six years

doesn't matter. they were focused on the fact that the float just expanded by 20-some-odd percent. >> the biggest talker of the day from an individual stock standpoint. a stock that has captivated the attention of a lot of investors sent ipo, as i said, better than 200% since then and has continually gone up and this enthis happened today. so, we were like, whoa. what in the world is going on here? >> whether this is a one-day story or investors keep talking but it, no telling how we will open tomorrow. well, moving on warren buff felt very busy the past 24 hours, telling cnbc's "squawk box" exclusively that he just bought a huge car dealership chain and bought stocks during yesterday's selloffs, too, but are these moves a bet on the american economy and should you follow his lead? the story up next. >> the oracle in the house today and officials in dallas have identified as many as 100 people now who have come in contact with the first ebola patient in the united states. now the fam i love the victim has been ordered to stay in

their home for most of october. coming up, going to speak to the mayor of dallas. you are watching cnbc, first in business worldwide. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free

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welcome back. earlier today on "squawk box", billionaire investor warren buffett exclusively making headlines when i a numbers onned that berkshire hathaway bought van tile, one of the largest car dealerships in the country. he also disclosed his pension fund has no bonds and is 100% in equities. then he said this. anybody that owned a cross section of american business the last 10 years, 20 years, 30 years, 40 years, 50 years, 60 years is fine. now, if they think they can dance in and out and buy and sell stocks they ought to head for las vegas. they can't do that. what they can do is determine the number of solid american businesses a great number of them, if you own a cross section of them and particularly if you buy them over time, you basically can't lose. >> so, warren buffett is all in on the market and the u.s. economy. should you be as well in take our poll at cnbc.com/vote.

we want to talk about this idea that 10, 20, 30, 40 years, american equities is where you should be putting your money. let bring in jim la can from ubs into the mix here along with dr. j, joined us here at post 9 and kevin o'leary as well. jim, start with you, he was lamenting the ten-year at 240, over ten years, do way better in stocks than bonds so i don't have any. do you agree? >> i do agree but not just for that reason alone. the economy, a falling kur rehn ski and a crazy fiscal policy. in china, they have trust issues now. they have always had tryst issues and the emerging markets suffering from the hot money flows in the currencies so the u.s. dollar is seen as a safer

place in this global turmoil, earnings better than the treasury yields, as you mentioned a good place not only for the long term but even right now on a relative scale in the shorter term. >> nothing new, right, just the oracle saying it, the best nous a bad neighborhood, discussion. >> but i don't agree on what he is saying, telling america not to buy bonds, bonds are one asset, talking about government bonds, most agree getting less than 3% ten years crazy, but corporations have all kind of yield instruments right up their balance sheets, including stuff that warren buffett buys when he bought the pref from goldman when they were in trouble, et cetera. investors should realize everything north of the common share, the convert, the preference share, the senior debt, the lie bore resets, all of these instruments get paid before the dividend warren is talking about and in my portfolio, i think in many americans should also consider, buy up the balance sheet a little bit, less volatility,

guaranteed interest, particular any your 60s or 70s warren buffett says don't buy bonds, the wrong message. >> reset the whole conversation on maybe shouldn't have a diversified portfolio? >> you should be diversified in equities and if i canned income but doesn't have to be a ten-year treasury, that's toxic waste, i agree, give me a floating rate loan or senior debt a good company that warren ounce the stock in, a good thing to own, too. >> when you look at what warren bought today with these car dealerships, how much of what he bought is because of the financing that you can get from the dealerships, who wants to put your money out at ten years at 2.4%? i agree. i do own a bunch of bonds selling those bonds because, quite frankly, when i bought them, the yield was so much higher that now that we've come down to this obviously, the bonds ral lids as the yields have come down. >> look at what interest rates

doing around the world, interest rates are lower almost everywhere than they are in the united states. interest rates will be low. people that finance things, these kinds of businesses are going to do well for several years. >> gm and chrysler put up numbers, 19% sales growth recent months, even if you get beyond the financing argument, appears that warren buff felt is making a bet on the auto sector. to use dr. j's term, do you think the auto sector is near a zenith because warren buffett is buy nothing it? >> i think the auto sector is very, very healthy, the average car in the united states is about 11 years ol and people are starting to replace those, whether you are talking about auto parts or new car dealers or new -- or car manufacturers, i think they are all in a very good spot moving forward and people want to get better mileage, they want connectivity out of their cars, this is a pretty good cycle for the car

industry r. >> some people taking this as statement that not a peak autos, that buffett is buying it. >> warren buffett saying he doesn't like debt is not doing that as the doctor pointed out, the cars, the majority are leased, rates 4 to 6%, he is reaping the rewards of stable cash flows on cars leased that is debt, not government bond, debt, a good thing, he is not stupid. >> that's exactly right. and i'm not surprised. that's what he does with insurance and then he packages it. if the rest of us, judge could go out and make a whole bunch of car loans like this and get 6%, kayla, we'd be doing it, too, just we can't do it on the scale that buffett can. [ overlapping speakers ] >> asked bhuf fete about inversions, didn't seat interview, should go back and watch it lays out the entire argument why burger king is buying tim horton's, why he agreed to finance it, ask him if he is unpatriotic, he says no, there's an economic argument behind it.

he says tax reform is possible. that in and of itself may be a contrarian view right there h pretty salacious stuff, even if buying american is not from the oracle this morning. >> he is the ultimate patriot. our folks are, too, who are voting right now, because they agree. three-quarters of those of you who are voting right now believe with mr. buffett, betting big on the american economy. some interesting number there is. jim, thanks a lot for joining us. talk to you soon. >> thank you. okay, law enforcement officials are quarantining family members of the ebola patient in dallas. >> but he may have had contact with dozens of others so what's being done to monitor them and how are authorities ensuring the public is protected? the mayor of dallas will be here with us next on "closing bell." take a closer look at your fidelity green line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals --

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bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. welcome back. the first ebola patient in the united states may have come in contact with as many as 100 other people. >> mike terrell is in dallas with the latest on the efforts to contain ebola. meg? >> reporter: hey, scott and kayla. thanks. we have been hearing they are monitoring about 100 people here in dallas, but that's really casting a wide net mo may have come in contact with the patient. cdc director, tom freiden, today telling us they have talked to most of the 100 people, not all yet and identified handful they think may have come in close contact and will be monitored. the latest we heard is 12 to 18 people closely monitored, we should get an updated number from them tomorrow. we do know that four close

family members from the patient have been ordered to save in their home and not receive guests until october 19th, the inc., cube base period for the virus. the apartment is being monitored by local law enforcement. there were some concerns that the family had perhaps left or were receiving guest he is and so they had to increase the strictness of that rule. food is being delivered and a cleaning crew is coming to help deal with the effects of the patient having stayed there. now, tom freiden says there may be additional cases who were already exposed but he emphasizes that systems are in place to they weren't further spread ebola here in dallas and in the u.s. but he does emphasize the risk only becomes zero once the outbreak in west africa has been contained. scott and kayla, back to you guys. >> meg tyrell for us for the latest down in dallas. right now, talk more about that stained efforts to prevent ebola from spreading. >> joining us now is michael rawlings mayor of dallas. thank you so much for being with us. >> thank you so much. this is very important.

talk about how this is affecting dallas as a city the people and the government's efforts to keep any panic from spreading at this point with more than 100 people or nearly 100 people possibly coming in contact with this. >> it's an amazing situation because dallas has become such an international city so we have to care about what's happening in west africa or mainland china. on the other hand, it's very local and now, this is a very local issue in a certain neighborhood with a certain amount of people and we have got to track those individuals very closely. obviously, our hearts and thoughts and prayers go out to the patient first, then we have got the closest circle of his family, as you just reported, that those folks are in isolation, we are feeding them, we are making sure that we get all the material out of their house that could be harmful and then we are going to as many people as we think got in contact with this individual. most of them were at the

hospital themselves, so the hospital, i think, has good protocol and now, it's in that apartment complex and we are interviewing every individual and putting a protocol in place for each of them. so, it's a lot of discipline. cdc's been great. the state's about great. the county and city are working closely together. hopefully, we can minimize this and hopefully, no one else gets sick, but even if someone else gets sick, we will have -- we will contain this. mr. mayor, you know, certainly, folks around the country are nervous. can only imagine what the psychology is like in your own city. can you fully assure the people of dallas at this point that this story isn't going to get any bigger than it already is? >> oh, i think there -- this story has a life and i can't predict exactly where it goes. i can tell citizens of dallas that they are very, very safe because there's zero chance that

you can come up with this disease unless you meet somebody that has active symptoms and you have got to exchange bodily fluid with them. we are containing you that and afeel very good. the city is nervous but the city not scared and i believe with mr. freiden that the issue is really west africa, not dallas. around the country, we should always be anxious what's happening in west africa. one resident just ended up in our city and we are going to take care of him. >> mayor, you mentioned the periphery of people that the city is currently questioning and testing. at this point, do you have the resources to keep all of those people in quarantine? how do you actually carry that out? where do they stay and for how long? >> yes. we have all the resources we need between the county sheriffs, the city police, we have got police there at the complex. we don't need all those people

for all those folks. for instance, our paramedics that took this individual to the hospital used certain protocol and they are in self-isolation, so we don't need to make sure that they don't leave. they are doing that themselves. checking their temperature every -- twice a day and looking for symptoms. most of these individuals are going to be in that. we are categorizing high-risk, medium risk and low risk, that report hasn't come back to me yet. but that's the work we need. >> sir, this gentleman's family is obviously unable to leave the apartment and they have to stay there for a good number of days. what happens if they did try and leave? what would literally happen to them? >> well, there is an order for them to stay. we presented that to them last night and they understood completely and agreed completely to do that.

we do have a sheriff sitting there to ensure that no one comes in and out, that they will be contained and really, about the citizens of that neighbor hand the rest of dallas, this is an important moment in containment on this issue. >> are you disappointed, sir, with the way that at least we understand the hospital to have reacted initially? >> well, you know, it was great that everybody had been trained and it was great that we took the information down, but the fact that that information was not communicated was amiss and the presbyterian has been a great hospital. my daughter was born there. i have been there many, many times. and they are really professional. and they are taking care of this patient. but obviously, that was amiss. >> mr. mayor, we appreciate it. wish you all the best. >> thank you. >> the good folks of your city. >> thank you. >> all right, mayor michael s. rawlings. send it over to kate rommers for a quick market flash. >> apple shares are dropping in

after hours trading, down about 1% right now. deutsche bank has downgraded the stock from to hold from buy, lowering its price target to $102 from $105. deutsch analyst sherry describer in says limited catalyst for shares through the end of the year. >> quite a move in the after hours. >> i apologize for interrupting, price target -- >> 102. >> 102 from 105? >> yeah, just calling the trend not being your friend. this sell on news, still a question about the larger iphone 6 that it's going to cannibalize the tablet market, which is an important component of can a shall flow at apple. i as a shareholder look for dividends growth, i would like to see dividend increase at the end of the year, got no cash to do it. i'm worried this particular sector is going to underperform dramatically. >> the analyst is calling for the price to rise by $3. >> i mean, only a $3 -- >> downgrade the stock? >> she is a downgrade now. all the stats, she will be a down, not a plus.

that's what she's done. >> all right. nonetheless, a downgrade from deutsche bank moving apple shares after hours. when we come back, an organic food fight, the ceo of sprouts farmers market here to tell us how increase organic food competition from walmart, of all competitors, as well as other stores and higher food prices, how is that impacting his business? jane wells will give us the answer. then gonna tune into the future of tv. why your flat screen tv may look like an ancient relic in 25 years. oh oh. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

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the organic food industry has become a popular and healthy choice for millions of americans. as a result, non-organic players like walmart are now trying to get a piece of the market and playing catch up. so, how are smaller, orkinic retailers like sprouts competing against these food giants? >> with us now is our jane wells live from culver city with the ceo of sprouts farmers markets, doug sandler. jane? >> hey, guys. doug, thanks for joining us. >> thank you. >> we are gonna get to the business in a minute, but we have been talking about ebola. look, you are in a wide open place here. people are touching food.

we now our first confirmed case. how do you handle it? >> 50% of what we sell is fresh food. we have been in contact with stores, making sure they are enforcing food safety policies we have and making sure we are executing well for customers. >> you are gaining share, according to morgan stanly if the natural and organic market, by 2018, have 7% market share, cannerably higher than now. off lot of competition. we mentioned walmartsome whole foods your main competitor or kroger? i can get organic anywhere? >> sure. sure. we have viewed the primary competitor for sprouts to be the traditional supermarket. who are the best traditional supermark supermarket? because the core customer for sprout suss the middle income consumer, not the hard-core natural foods consumer and not the super affluent, what natural food was for years and years and years. when we founded sprouts, we found it had to make natural, healthy foods afobbedable than

everyone, we saw the middle income largely underserved consumer with healthy food choices. as the health and wellness trend continues to move across the country, natural foods becomes more prevalent, embraced by the every day consumer who is driving you the growth and the naturaling orric, great for sprouts. that is our core customer. org sprouts. that is our core customer. >> we haven't seen a lot of relief on the cost side. inflation has been like we talked about, 3, 4%, stabilize and we are starting to see a little relief, probably going to come later in the year. >> doug, earlier this week, we got news out of whole foods that they would be cutting prices for some of their items across several stores in an attempt to

get more people to shop there. the sector has been hit hard, where stock prices are concerned. but do you think that cutting prices and maybe hurting margins as a result is the way to get more customers in the stores and buying more things? >> sure. i think, you know, their -- they are trying to respond to obviously the change in the consumer and the fact that the middle income consumer is driving the growth in natural and organic. talk about natural and organic really limited to the hard-core natural food customers for years but growth driven by middle income consumers, our target customer and i think why they are trying to make other choices to drive customer traffic. >> let me ask but that falling commodity prices affects protein, not the stuff grown in california with the drought. who you are you able to source this and off ter as a discount. do you have negative margins on some of these? >> the produce department is the highest grossing profit dollar department in our stores. >> but margin-wise? >> margin-wise, we do take gross

margins than the traditional supermarket because our model is actually the inverted model from a traditional supermarket, where they are using their center store cpg to drive traffic and take low margins and center store, making higher margins in produce, we flip that model backwards and take lower margins in produce and make our margins up in higher margin departments, packaged grows rick, dairy and frozen, we don't sell the all the low margin cpg items. i don't have to make that up. >> drought hurting you >> a tightness in supply a few weeks, we have a decentralized buying strategy, buy across the country, when supply tight uned on this side, buy from other parts of the country. >> there is great demand on farmers to grow organic, costs a lot more, every retail grocer wants organic, are you finding it harder and more expensive to find natural and organic produce? >> it ebbs and flows. growing seasons ebb and flow throughout the year, seeing more and more farmers getting certified to grow organic, takes

about three years to get certified. as the number of farmers, greater number of farmers get certified, supply will grow up and seeing this in retails, the retail prices for organic produce are vastly lower. >> one more question, moving into the southeast, every time you move into a new market, the competitors drop their prices below you. how much does that hurt? >> not necessarily dropping their prices below us but to be more competitive, usually short-term effects because again, from a long-term standpoint, our margins -- in model being the opposite of theirs, the inverted model from there is difficult for them to take lower margins in produce, 20 to 30% below them in price, while still trying to make that margin investment up in other departments. >> doug sanders, thank you for joining us. guys, one thing, this is opposite your regular grocery store, produce in the front, draw you to the back to the meat and dairy, here the produce is the back and everything else to get here. back to you. >> beautiful produce it is. right? it looks good. >> great setup. very fresh. thanks to jane wells. >> yes. >> in a matter of days, jane

wells goes from internet gambling to organic foods. no one can do it quite like her. tomorrow, the september jobs report will be released but you won't have to wait to hear what the jobs are. >> up next, kate rogers has the details on a new study that it is young entrepreneurial companies injecting the economy with the most jobs. blan and cord cutting, virtual reality, the end of linear networks, may all be part of the future of television, or whatever we may be calling that one day. julia boorstin peers into the future of that medium coming up on the "closing bell." know that chasing performance can mean lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement.

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see car insurance in a whole new light. liberty mutual insurance. as we await tomorrow's september employment report, some economists are stressing the key to turning the corner the jobs market are startup companies which, of course have to hire from scratch. >> kate rogers has more on the impact of young companies on jobs and the economy overall. kate, what did you find? >> that's right, kayla. economic outlook scur ray is finds 38% say they will raise employee compensation the next six month, the most since 2008 and a missing piece of the labor market recovery. the survey shows that 38% of businesses plan to raise prices this year, hoping to fuel those higher wages and another sign that businesses are betting on a

consumer come back. and of course, when it comes to a recovery, age is not just a number here. a separate report from the coffin foundation finds that young and small companies account for nearly all new job creation and almost 20% gross job creation nationwide. and here's a stat for you guys, between 1988 and 2011, companies that were more than five years old actually destroyed more jobs than they created in all but eight years. this shows that older companies are more focused on cost savings and pocketing value and not necessarily on job creation. something to keep in mind for tomorrow as we get set for the release of the labor employment report. back to you guys. >> thanks for that, kate. kevin o'leary, you say show me one job created by the company and i will show you it is a good one or a municipality? >> we are not debating where jobs are created anymore. those stat, don't have to debate. 97% of the jobs created by small business. i would ask a question of every politician, federal, municipal, state what are you doing to help

a small business create jobs? the truth is, and i harp about this all the time and you have pushed back on me, scott, a few time business it the regulatory environment the last eight years has gotten so punitive for a small company to grow past 5 million in sales that it's virtually impossible and i made a statement recently that it's easy to open a job -- or a company in a chinese city than it is an american one because it is and so, that's not good for us. and so our push backs say if we want jobs in this country, we have to make it easier for companies that are 5 million, 10 million in sales to not be so regulated. they don't need to be that regulated. >> so you think the jobs act is a misnomer? >> the jobs act is a destroying vehicle. it's harmed us, it's hurt us it really has. >> you disagree with you at all about too much regulation. regulations always overreach at the beginning and pared back. >> there is a new layer of i will have i can if cation of

business that's occurred you talk about business leaders, large, struggling to become wealthy through being entrepreneurs, starting to vilify them in america. and we are the model for the world. i see them calling an entrepreneur a fat cat for flying an aircraft -- >> you didn't build this. dishammer thes me. >> you know what comment i'm talking about. >> i'll ready to push back now. i'm one of the entrepreneurs that benefited from a great economy in america and a very unregulated environment in the late '90s and today, i look at the world and it's so hard to start a business. we are hurting ourselves, shooting ourselves if the foot that data just gave you the facts york have to debate it anymore, i'm just right. >> well said. the future of tv may not be on tv. >> and it may look like a "star trek" episode come to life. from customized videos to holographic projectors, julia boorstin joins us with her crystal ball, coming up next.

in the future you can forget about buying a new television. the future of tv may not be on tv at all.

>> julia boorstin explores how tv can drastically change over the next 25 years. >> in the next quarter century, every part of tv, content, creation, delivery and consumption will be transformed. pack up that giant flat screen. >> if you want to watch something it will be actually programmed into your brain. so there will be no outside devices. >> that's the vision of futurist faith popcorn. and throw away your remote says digital video expert james mcquivy. it's the you channel. in that you channel it's constantly adapting based on looking at the temperature of your skin, the reaction of your pupils. are you paying attention, liking it? is your heart rate gupg like we expected it? when it doesn't, we'll start changeing the channel. the bundle will be broken up. as consumers get to pick and choose and pay for just what they want. whether it's an expensive show like "house of cards" or niche

content produced by a creator for youtube. in the future you'll be able to seamlessly switch within an infinite universe of options. those created by hollywood and individual creators like those here at youtube production space. >> it's about finding ways to make that story feel more immersive around those people. we're in a full-fledged world and experiencing the world. >> when people are immersed in that video world they won't be alone. nor will they be fighting over a remote control. mit has created a three-dimensional social remote control which it calls the crystal ball, letting people search and discover video and discuss what they are watching from anywhere in the world. >> i think you'll see the end of the couch potato era and the beginning or the dawn or the revival of much more rich engagement with all the media around us. >> they're also developing tools to help with the future of news

including tracking multiple perspectives an news stories in realtime since it's clear one thing is for sure. the amount of content is only going to explode. >> great reporting, julia. when we come back if you think the market has been volatile this week, tomorrow may be the icing an the cake. >> why the jobs report could swing us yet again. that's next.

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welcome back. count it down to the end. the big question tomorrow. clearly the jobs report. wonder what you think is going to happen in the markets if it's a better than expected jobs number. does that stem some of the bleeding this week? >> i don't think so. we're going through a bunch of nervousness that unless it was an outstanding up side, more than 10% consensus, i don't think that's going to happen. it's going to be right don the middle. if this was a bad report, i mean 10% below, that would be the second weak data set. guys like me look for three in a row to see a trend. generally speaking we've been right down the middle. there's a new norm of 6% unemployment that everyone is used to. i personally think in order to get it back to 5% we'll have to

change the job act or deregulate or lower tax or fix corporate tax. we need a game changer. >> how important to see wage growth? the fed is looking for inflation. we get these small ticks up. >> wage growth would be negative for the market. that would put the scare on for sooner rather than later. it would cause a 200-point down day. that's what i think. more and more. because you have this whole group of us in the fixed income structure. is it the first quarter of 2015, the second, not at all. but if you have wage inflation, all bets are off and the market goes south. >> already the worst week for stocks in two years? >> we needed this. it's the pause that refreshes. this is going to the dentist t getting your teeth cleaned. >> there are people who say we need more than this. >> we can still get it.

>> i haven't heard a company say the globe has slowed so much that i'm changing my earnings estimates for this year. i need to hear some real -- earnings drive me, not sentiment day-to-day. >> see you tomorrow. "fast money" up down coming up in a few seconds. melissa lee, up to you. live from the nasdaq market site in times square, i'm melissa lee. the $1.4 billion tweet. elon musk's mysterious tweet about unveiling the d sending shares of tesla surging discipline it stale make sentence to buy ahead of the october 9th event. which biotech stock could see major up side from its ebola treatment. for everyone who guessed on twitter, it's not tekmira. a sell-off this morning and yesterday but ahead of tomorrow's big jobs