okay. the nasdaq on pace for the best day of the year. only one stock in the nasdaq 100 down right now. 99 are up. starbucks is down. >> thanks for ending on a down note, brian. thanks, everyone, for watching. "closing bell" is coming up next. yes, welcome to "the closing bell." i'm kelly evans on this tuesday at new york stock exchange seeing a bill griffith rally here on wall street. >> i hear i missed a few things while i was gone. >> we missed you. >> we missed it. >> people still don't know what happened last wednesday morning. >> i love that kind of a week. i'm on vacation watching it from afar. and we have the rally going today. although as one trader bemoaned to us, the volatility dried up.

which traders appreciated last week. >> exactly. now the question is, has that episode, is that firmly behind us or not? guy adami was on the show and some others skeptical saying they're not so sure and today markets are calming down a bit. >> one of the questions to ponder today. will the market head higher from here or could we see another pullback on the horizon? go to cnbc.com/vote and you can weigh in right now. traders are on a delay over there. >> that's right. by the way, take a look at that nasdaq today. the dow up impressive 175. the nasdaq up 2% on top of a strong performance yesterday bolstered no doubt by apple after the strong earnings last night. >> i'm more impressed by the s&p frankly. up what? 110 points? since last wednesday. >> that's about right. 32 just today. >> unbelievable gains there for these major averages. think of what the dow would be doing if ibm, mcdonald's and

coca-cola weren't trading lower today. >> in other words, the american economy? >> yeah, exactly. >> that's the question. is it indicative anymore or not? are there legacy issues or problem of slowing growth prospects that needs to be taken seriously? >> talk about it. the exchange, we have david levavitts with us, gerard fitzpatrick with us today, ann maletti, susan fulton and our own rick santelli. hello, everybody there. david, what do you think? is the volatility over? are we headed higher here from now? is it all systems go or what do you think is going on? >> next move higher in the s&p is up. i think earnings season is particularly important and we may see some volatility over the next few weeks getting companies reporting in and approaching a liftoff date from the fed and i think all eyes are on the fed

and liftoff date approaches we'll see markets start to bounce around a little bit. >> ann, how much of this is going to rely on where oil prices go from here? >> i think a little bit of it will. certainly, helps the consumer that gas prices are lower. that should drive more consumer behavior. and it will also help a lot of industries within the s&p and the dow for that matter, as well. >> you guy vs a couple of picks, actually, related to the energy space and seeing some opportunity. is that right? >> we do. you know, i think in the past most of the time energy prices followed the declines in oil. this time it was different. the energy stocks fell much further than the price of oil in the near term and so we actually think that there are good buying opportunities. we like halliburton, a company in the services space which we think will still benefit especially at these prices. and southwestern energy, as well, is another good company. more focused on natural gas but

great management team focused on returns. >> yep. susan fulton, last week, you had -- i mean, any number of reasons to explain the selloff in the market. from fundamental economic news to ebola and one trader said today, they turn on the lights and the spooks went away. no more ghosts and do you agree with that or still concerned of things out there? >> i think that we'd be foolish not to be concerned about the things out there. i think europe is in a very deflationary place and keep interest rates here very low. i don't see inflation here but i do think we're going to be running uphill with europe. europe is also dramatically more impacted by the -- our relationship with russia and we're finding a number of european companies coming in looking at down markets. the united states market is good. i mean, you know? we're earning well.

we're looking well. >> so are you buying the dip last week? >> yes, we did. >> what about, susan, the mcdonald's report, the coca-cola report? ibm. is there something broader ailing this swath of the u.s. economy perhaps? >> all of them i think are international stocks. and i think we do have a lot of probables internationally. >> yeah. coke i think it was said with the currency headwinds right now. gerard, what are you doing with the market right now is are you bracing yourself for another big period of volatility or all systems go? i'll point out, by the way, our viewers voting right now 65% so far in this unscientific poll feel the market can go higher from here. >> on the treasury side, our forecast in the next three months is 10-year treasury to be a little higher in a low rate environment and 250 in 3-month's time. and really it is a battle going

on. positive on the u.s. economy. see real gdp up 3.2% next year. inflation relatively low. kicking out over 220,000 a month. pretty good on the u.s. side and now there's cool winds coming in on the global side. the numbers coming out of china this morning, japan with concerns and the ecb action in europe, likely to buy corporate bonds under qe and a real fight of positive u.s., cooler on the international side, but ultimately, we think that u.s. treasuries will rise. we did make a big move last week. we did increase the underweight duration. believing rates will ride from here. >> you don't see us going back to 188 on the 10-year as we did last week? >> you know, it's a couple of things. i think the fed needs quiet, please. the comments from the fed can be reckless. concerns of a global growth impact are triggered really rallying treasuries to 2% and

the technical squeeze of 2% level and right down to 185 before everyone realizes that's too expensive. i think if the fed comes down on the communication language, the international pressures are not so high and i don't see us going below 2% from here. >> speaking of what central banks do, rick, how much of today's rally seeing here is about the comments rumored out of the ecb this morning and then denied by other outlets of buying additional corporate bonds and spurring a rally there and here? >> i think a big part of it. stepping back, you know, i think last wednesday when we were 34 basis points lower but brief period of time in the 10s at 186, look at the context. the weekend before was the imf meeting. we had lagard talking of downgrading global growth and a lot of honesty of mario draghi that he viewed himself as an enabler for the political class not to make reforms and i think when you asked about the

corporate qe, yes, there are a lot of question marks and there's still a lot of question marks as to is germany going to pony up? all these are big question marks and they loom large because if we look at one week ago today or almost a week, last wednesday, the world hasn't changed. the fundamentals haven't changed and fairy dust changed and all about how much production of fairy dust central bankers get away with overpromising and ultimately probably underdelivering. >> although, rick, to be sure, i mean, there also is disappointing data on the inflation front in europe. a couple like the german industrial number pretty bad and fundamentals worse than people thought and not just about the policy response or lack thereof. >> nobody ever wants a debate. everybody wants the look at the sealed envelope that dropping prices are bad under any conditions and i still contend that in the world we live in with fiat money and central bank activity beyond anybody's wildest dreams ten years ago,

that the type of pricing they want on inflation will only be a by-product of real growth and they won't be able to back into it and create that and then think the growth is going to happen magically. >> david, we have been highlighting the three components of the dow today turned in disappointing earnings. do you buy these companies, these blue chip that is are suddenly tarnished today or do you stand back and look for one that's maybe got a higher growth potential? >> i think it's important to dissect why the earnings particularly bad and if in some cases may have been a one-off occurrence, something of that nature, there could be long-term potential in entering the names post-selloff. if the growth rates are deteriorating, probably best to stay away so, you know, with the market kind of approaching 2,000 again, i'm not sure you can make

blanket statements. >> can i do a bill griffith quick show of hands? the question now, lemming the strategists recommending european stocks as they went into the chopper, i'm curious how many people would be buying europe here at this juncture or if everybody still thinks there's more weakness ahead. is anybody here recommending that investors buy europe? >> no. >> no. >> we do like european side. we like the valuation side but the dips went through and we think the credit standards, lending could increase in europe, as well. fundamentally why the concerns, we don't see it falling over. we like the european stocks right now. >> anyone with a gorgeous brague like that, i think they'll like europe. susan fulton, what are you buying right now? >> let's see. we're buying -- >> you don't have to go with -- >> let me take a pass. i'm not prepared. >> let's ask ann where you see

if europe isn't one that you're interested in, where do you guys see value in this market? >> well, first and foremost, the domestic market. we think there are good growth opportunities here. overall, it's a slow growth environment so you have to be careful. some of these big macro issues are going to affect domestic stocks, as well. we look at companies with internal stories. diebold has a new management team. they're focused on taking costs out of the business and investing in new pieces of the business. again, focused on returns and markets are improving. so internal stories with their own driver excludeing the big ma ros are probably the best to be right now. >> good stuff. >> i appreciate your candor, susan. if you don't have a name, don't make it up. i like that very much. >> okay. thank you. >> thank you for joining us. >> we have 50 minutes to go with the dow up almost 200 points.

look at the nasdaq up 96 points. 2.2% having one of its best days in quite sometime. coming up, tick tock on yahoo! earnings on the top. the giant posting results after the close. we have a preview of the numbers to watch for and a breakdown of w some of the pros as soon as they hit the tape. we'll give you that instant analysis that only you can provide here on cnbc. >> oh yes. plus, of course, yahoo! ceo ahead of her big turnaround announcement expected shortly. find out what she needs to do. >> by the way, 60% of you think the market is heading higher here. >> we should also mention 51% saw it heading higher the day before. >> is that right? >> so we'll see how sentiment is dictating the moves this time around. >> a wall street firm is tracking different stock categories tied to ebola. we talk about protective equipment. and this company is donating

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rally day on wall street. dow's up 190 right now as we have been highlighting, the nasdaq really the standout there with a gain of 2.25%. by the way, i love the new graphics. i mean, we were rehearsing before i went on vacation and now in place here and they look terrific. >> snazzy. >> but now i'm in hd and the full hd blown kind of television. >> and you're probably about 25% bigger. >> i'm sure somebody upstairs is rethinking that. bill and hd is not a good look. >> snazzy we think. department of homeland security with travel restrictions. >> we have the latest details and some new developments on that. >> reporter: that's right. the announcement of homeland

security secretary jey johnson travelers coming in from west africa required to go to one of five american airports with enhanced screening. the airports, the homeland security secretary saying, include jfk, newark, dulles, atlanta and chicago. shouldn't be all that much of a change because they're saying that about 94% of the travelers from those countries did arrive at those airports in any case. they're also saying here that this order is going to apply to anybody in the three countries over the past 21 days so that means anybody who's stopping through there is going to have to be flying into one of five airports they say they're equipped to handle enhanced ebola screening and new restrictions here in the united states, guys. >> yes. at long last. thank you. next guest known for disrupting the way people invest. motif investing giving a chance to put to work in theme security and now another one in the important fight against ebola.

>> yes. go ahead. >> ceo joining us now to explain. welcome. first of all. how much investor demand is there for trading ebola? >> well, we'll find out. it is a relatively new product. a lot of our customers asking us for this. it's a delicate investment. if we were going to do this, we don't want to make money in this. i believe in karma. we decided if we launch this, we donate proceeds to doctors without borders on the front line and need help right now. >> the proceeds of commissions generated by the trades in the investments? >> absolutely. 100% of the commissions. >> right away, after the word was getting out about, you know, ebola and things, there was this rush to those companies that we heard were working on possible vaccines and things and there was tremendous volatility. we are talking about very risky investments here in the very early stages of this process, aren't we? >> absolutely. so this motif contains 20

stocks, 11 are drug and vaccine companies. they include volatile companies, smaller companies like neogen but they also include glaxosmithkline and they also include amgen and includes protective gear companies and seven companies in here. dupont and ecolab. >> i was going to ask you that. >> this is a market neutral motif which means it is an equal weighted short/long position and that way you kind of negate some of the market turmoils likely to hit if it's out of control. >> in other words, if you buy this motif, you're betting on ebola spreading in this country or spreading more globally than it has, correct, because you're betting on demand in the companies and products rise? >> absolutely. i think cdc predictions and anyone's guess as to what's priced in the right now and half

a million to million infections by year end predictions and everyone's trying to get data on what's priced in and what's not and the company that is have a lot of volatility are the ones locking in deals for hazmat suits and stuff like that. but even luminex doing testing is doing interestinging work and there's flavors but absolutely. this is about fighting ebola and the assumption is it's spreading. >> do you anticipate a rotation of stocks in and out of this motif or locked in to use your term with the companies you have right now? >> i think this is definitely a trade and not a long-term investment. any time of a hedge position, you want to be careful looking in that. but this is a -- because you've included bigger companies to dampen some volatility, you have a market neutral position, the issue on this is priced into market. overall, this is inaggregate and not a volatile product. >> you were saying you believe

in car many and you don't want to encourage people to bet on the spread of ebola but this is what it's doing, right? >> yeah. so there's demand from the customers and doing it for two reasons. provides an index, a view into what the markets are telling us about ebola. so whether you invest in this or not, there's value to that. but secondly, we're not making money. our company does not make money off this motif and we're donating to a valid cause, doctors without borders and that's the commissions. >> a cause we understand has a lot to do with fighting this at the moment. thank you. >> thank you. >> appreciate it. also one of cnbc's disrupters of 2014. something we should note, as well. >> yep. a rebel. >> thanks for having me. >> you bet. we have about 40 minutes left in the trading session. the dow up 200 points at this hour. a decent percentage gain and the nasdaq's doing better. >> coming up, a sea of green at

the nasdaq and heading uptown for a look at the outperformers. shockers on the list. super-size me filmmaker, morgan spurlock talks up the next project. it's called we the economy. a series of 20 movies of various fi filmmakers and why it's generating a ton of buzz from wall street to main street coming up.

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lack back. a check on markets. dow up 200 points. this despite the morgan spurlock trade in the red. both mktd and coca-cola weighing on the dow. two of only three lower on the day. ibm is the other. >> dominic chu is following the movers. >> look for the other super sized trades here and two dow components. coca-cola and mcdonald's lower after disappointing earnings. ibm down second straight day after the weak results on monday. a different story for harley-davidson. one of the best performers on the entire index. it's moving higher on better than expected results of its

own. you can see up by about 8%. fed-ex and u.p.s. on a rise after u.p.s. to increase certain shipping rates at the end of the year and kimberly-clark moving higher and said it would cut up to 1,300 jobs. you can see those shares up by about 3%. we'll end with ocwen financial lower after the top new york regulator charged them with back dating loan modification letters and they said it was inadvertent. back over to you. >> dom, thank you very much. he is known for "super size me." a look at the impact and consequences of the industry and the latest project, morgan spurlock is tackling a different issue and we talk about on this network every day. the economy. >> with us now, filmmaker morgan spurlock. >> i'd love to have been in this pitch meeting.

i see this now. 20 movies about the economy. >> sexy, right? >> it does to us. >> the best part about the program was paul allen called me and said i want to demystify the economy. >> that paul allen -- >> that paul allen. >> he's got his own production company. >> he does. >> they do education films. >> they said we'll underwrite the whole thing. i said that's a great idea. let's make the movies. >> why should i listen? >> he speaks about one aspect of it. the toll and the value of kind of nature and nature's resources on the economy and then we have amazing people like adam mckay talking about inquality. katherine hardwick about the fed. she did "twilight." john chu with an amazing song and dance number about the market. it's fantastic. >> you're trying to demystify. it's called -- the series is "we the economy." we are the economy. >> that's right. and it's about getting people --

i feel like we live in a time most of us in america are economically illiterate. to understand how the economy works and functions i think is an important part of the citizenry and give us a basic understanding of how things work. >> by the way, even the economists sometimes don't have a basic understanding of how it works. >> or can't afrgree on it. >> you may be pushing a agenda that doesn't demystify the economy but spreads misinformation. >> the beauty of the series is ten different economic advisers and about -- most will agree to 80% to 90% basic facts and so for us it wasn't republican or democratic ways of thinking. it was about really trying to mainstream some thought processes around the economy. >> oh, by the way, not just about the content. this is about distribution, as well. because of the way it's made available to the public. >> we have over 55 distribution partners playing nice together. >> i don't know how you did that. >> that's right. since we're not trying to make

money on it and may not be economically sound but the right thing to do, we have partners on television, across the internet, we the economy.com, cnbc which is fantastic. we have a lot of great partners on board. >> there's a simple message to "super size me." acard my award nominated. >> that's right. >> this is the evils of the fast food industry and a way to think about the relationship with food. >> that's right. >> is there a simple message to this project? and if not, are there surprises? what are the conclusions? >> i think what the economy "we the economy" shows us is like you said. this is a part of our lives every day and determines the jobs we get and the schools our kids go to. who we marry. we're impacted by the economy in ways we don't think about. >> is mcdonald's all that evil? i mean, i go there. i have coffee and a biscuit. you know what i mean? >> you look great. you look amazing.

>> but -- do you have any regrets about sometimes a sort of simplified narrative of the projects? >> well no. what the movie shows is watching is a fast forward of what would happen if you turn a steady diet of fast food into your life. it's a fast track of 20, 30 years. elevated blood cholesterol, high blood pressure, you know, type ii di2 diabetes, insulin resistance. the stock market is showing us today. >> which is why i'm chuckling and you ride a motorcycle as we see harley-davidson rallying. >> that's right. >> going back to this project, is this really about 20 different ways of illuminating what the economy is or a central takeaway and people walk away with? >> the central takeaway i hope is people be like, oh my gosh, i understand what the role of the fed is. i know the difference between now deficit and debt. so clear to me now. i start to get it. watching the movies, there will

be some illumination. >> it ain't rocket science. i heard bob pisani makes an appearance somewhere. there he is. where else would you expect bob to be? >> than here. >> new york stock exchange. >> that's right. >> how cool is that? >> series is "we the economy. it's a series of 20 movies done by different filmmakers under morgan spurlock. good to see you. >> thank you. >> thank you so much for coming by. 214 points higher. that's the dow jones industrial average. three names in the red and coke, ibm and mcdonald's. >> oh by the way. up next, yahoo! in the crosshairs. earnings at the top of the hour and find out what the numbers the street's watching for and what ceo mayers needs to do to shore up investor confidence ahead of the big turnaround announcement expected shortly. a lot of pressure on marissa today, right? keep it right here. -800-345-2550 [ male announcer ] your love for trading never stops,

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rally continues. dow holding on to a 200-point gain at this hour. s&p up almost 2% and the nasdaq is up 2.25%. technology stocks i guess doing pretty well today. a lot of expectations. >> a triple-digit gain on the nasdaq up 98. incredible. yahoo! earnings after the close and that stock up with the rest of the market. but there's a lot of focus on what the numbers are, what announcements we may have from marissa mayer and josh lipton with a preview now. hi, josh. >> reporter: well, kelly, analysts covering yahoo! say it's a critical moment for ceo marissa mayer. analysts say no sign of a material improvement to the fundamentals. the stock has gone nowhere this year. up double digits and because of

the stake in alibaba. today, not much expected. 30 cents of eps on revenue and that would be a drop of about 3% on the top line. display revenue, another critical measure to watch making up 40% of total revenue and after the bell, big news here. "wall street" reporting mayer could give more details to turn around the struggling internet pioneer. stay tuned. back to you. >> we will. thank you. we'll watch for the andings top of the hour and marissa mayer's announcement later. >> that has watchers on wall street and silicon scrawly wo l to do next. let's talk to a couple analysts. rob sanderson and lou basni back with us. good to see you back. rob sanders, i mean, how would you like to be marissa mayer right now? can she turn the ship around?

>> i think the critical component of any turnaround or to get back in investors' good graces using your words is a 3.9 billion left in existing buyback and talked about half of the ipo proceeds to shareholder returns. i think there has to be a very significant commitment to return capital as a starting point for anything else. >> how well do you think another share buyback by another company with so much cash on the balance sheet is going to be reviewed when innovation is what people are calling for from yahoo! right now? your solution is another share buyback? >> no. that has to be the beginning of any turnaround plan. i think even if they turn the ship around, the problem for yahoo! stock is if you double the valuation of the core business, it only moves the overall value by 10% or 15%.

you need more direct exposure to the core. i think as a prelude of innovation or turn around in the core you need to have more exposure as an investor. >> lou, same question. should it be about improving the performance of buybacks or deploying that capital in a much riskier and perhaps more aggressive way in the form of, for example, mega acquisitions? >> yeah, no. i think it's absolutely time for her to be bold or be ready to be booted out. i think, you know, to the point that just returning capital to shareholders via buybacks is a short-term solution. yahoo! i feel like we have been talking about a turnaround tins 10209 and need to do something, a transformative acquisition, the likes we have seen with facebook and google buys companies like instagram and nest and in this case, i think she's got to buck the detractors telling her to return all that cash and go out and make a move that's really going to move the needle for the core business and

largely overlooked leading up to alibaba's ipo and now she's going to face heavy scrutiny to turn the core business around. >> i've lost count. she is there two or three years? >> since 2012, july of 2012. >> okay. and in that entire time, lou, people have said the same thing you just did. be bold or get booted. i mean, we got to give the lady a break some point, don't we? >> no. she is given a break with the alibaba. you have a great sum of the parts valuation thesis and we could quantify what the part is worth and the core business is worth and not much. some analysts, rob gives it about $5 a share and some assign zero dollars to the core business and she's got to make a move to reenergize that. acquiring yelp would be a step in the right direction. it's bold and expensive but an immediate shot of growth in the top line to yahoo! >> what about that, rob?

>> well, i don't agree that yelp makes a sense for yahoo!. first off, i think where they need to innovate is you need to start monetizing your social media asset and starting slowly but a long way to go there and they need a video strategy. i think the anecdote to the collapse of display pricing is video and for the amount of focused effort and investment, yahoo! is not well positioned in video. that's the most likely place for them to invest and expand into. >> for example, taking that 5 billion or the alibaba proceeds or just the cash to deploy, generally, tap credit markets here. this is a friendly time. should they borrow, use the cash, it set ra for a video push or do you want them to return the capital to shareholders? >> there's so much liquidity and capital and investments on the balance sheet and no reason to tap the capital markets instead

of radar arbitrage and needs to come back to shareholders to execute a turnaround strategy. >> having said all this, gentlemen, anybody buying yahoo!? i'm checking what it is doing today. up 2%. anybody buying it here? >> no. why buy it? its value largely tied for alibaba. go for the pure play instead of a turnaround that night never happen. >> you would buy alibaba? rob? >> you can own either. i the one thing that yahoo! offers and an x factor is potential for potential efficient spin of their asia assets is port $12 to $15 a share and that's all alpha. >> wow. that's one to consider, as well. maybe not the best for long-term strategy but thank you both. rob and lou as we await earnings from yahoo! as we continue this heavy earnings week.

meantime, a little bit of profit taking. not much. the dow's up close to 200 points here. the s&p up about 35 and the nasdaq moments ago we did see that, right? it wasn't bigfoot. it was up 100 points. >> going live to the nasdaq market site to run through the biggest winners today next. and if you thought lower oil prices lead to lower airfares, think again. the latest round coming up.

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to move that old 401(k) to a fidelity rollover ira. 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.

welcome back. just 15 minutes to go. the tone this week already very different from last week. it's only, what, tuesday though? >> this is tuesday, yes. >> yeah. sometimes they call it turnaround tuesday and sometimes set the new trend. this time it's trending green. the vix lower. >> look at that nasdaq. bertha coombs. what is going on there? >> yeah. pretty wild. i looked up and went, whoa. a triple-digit gain on the nasdaq. up as much as 102 points on the composite. that after touching correction

territory last week. it's been nothing but moving to the upside all day long today. and it's not just the big caps but a big reason why. take a lock at the small caps. they're now out of correction territory. they're down less than 10% from their all-time high in july. and that was really where we saw the beginning of the downturn in the markets so now that they're recovering, up nearly 7% from the lows last week, we'll see if that continues. apple, though, is the story. apple responsible for about 15% of the large cap move. in fact, right now, the only large cap in the red among the nasdaq 100 is starbucks. turning positive, that could boost us back up 100 points. watch apple. if we get a close above $103.30, that's all-time high and momentum off of those earnings results and spilling to chips. chips also moving out of correction territory. they had been very beaten down.

texas instruments results very impressive but you're also seeing some of the nearfield communication chips doing very well today because of apple pay launching. guys, i have to tell you, i used it. easy peasy. >> in line, did it make the process quicker? >> it was quicker. >> will you use it from now on? >> i used to use the tap on the debit card. my bank no longer offers that. when i was in a cab. now i just use any phone. it is really fast. use the i.d. the checkout person wasn't even fazed. i think she's over it already. didn't even look up. >> oh yes. >> that's what apple would like to hear. >> starbucks, what is that about? >> yeah. >> price of coffee? >> the places you think people are using apple pay. thank you, bertha, by the way. keeping an eye on the name on the nasdaq generally. strong day on wall street. make or break time for yahoo! as we mentioned at the top of the hour.

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here. dow holding on to a gain at this hour. the s&p up 36 points. wait for the graphic. there we go. look at the nasdaq. was up 100 points a few minutes ago. joining me, a voice of reason for the individual investor, john buckingham and bob pisani. >> and the voice of disreason. balance here. >> you've invested long term. you are a value investor. did you even pay attention to the volatility last week? >> no. it is amazing what we have seen. the average decline of five years is about 7%. that's what we had, you know, just in the last, you know, 4 weeks or so so it's blip. normal fluctuations. >> did you buy anything? step in and buy? >> we're fully invested pretty much and rode through and looking at some names. a name of trinity crushed yesterday was an interest and rallied today and didn't get a

chance for that one. >> got to be quick here, john. >> you do, you do. >> even with that, traders came by post 9 and bemoaning the lack of volatility. >> why are we up 200 points? >> that was the only question. >> let me argue against it. >> more buyers than sellers. >> thank you, bill. number one. number two, oil stabilize. ebola fears lessened. i think something else is going on i think the hedge funds are puking things out on the bottom on wednesday and looks to me like buying aggressively now. nine weeks left in the year. we know how much hedge funds underperforming and it smells to me like they want to get in rather aggressively. we have the nasdaq's up here, look at this, 2.25% today. what happened last week that was

so different all of a sudden that things have come back so dramatically? >> you want to be a long-term investor. nothing really changed. you mentioned ebola. we have been through other viruses in the past. we'll get through ebola. we got through sars and swine flu, bird flu and the hiv virus and that started in like 1982. right about the time of the bull market to begin. this is normal fluctuations and we just have to get used to it. we had three years and volatility wasn't that high. >> right. >> but when you talk about, gee, the nasdaq up 2%. well, it is not that big of a move up and down and a whole lot not changed. >> we are at a higher level now, talking about bigger numbers. >> yeah, but -- >> i know what you're saying. >> i was around in 1987. 22%. >> yahoo! is tonight. you know why i care about yahoo!? will they talk about alibaba. >> hold that thought. we will look at what is expected

from yahoo! as we get into the closing countdown and will it be a big or huh oh moment in the internet giant posting the results after the bell? numbers and tell you what to expect from those numbers coming up in a moment here. stay with us. then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪

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about quantitative easing and europe in general and recommending this people short the euro. obviously, at a tumult us to time for europe. i wanted to bring it to you right away. david tepper recommending that at the robin hood conference. back to you. >> thank you very much. heading to the close with the dow up 200 points. highlighting the strength of the nasdaq today but the dow would have been even higher if it hadn't been for three components lower with earnings. coca-cola having the worst day in about six years. down about 6%. mcdonald's down a fraction and ibm was down with those disappointing earnings. here they are today and how they're finishing. john buckingham, i'm not going to ask you if you would buy those today but, you know, is this a sector that you would like your technology? you like technology at these levels? >> absolutely. we are overweight technology.

ibm i would be buying on the weakness. we own microsoft and lexmark with a fantastic day today and there's value believe it or not in technology. above average growth in my opinion. >> all things you like here. now we have yahoo! coming out at the top of the hour, bob. >> i want to hear about alibaba. the quiet period is ending for alibaba and the underwriters, the guys who underwrote the stock for alibaba can issue earnings commentary and analyst reports. that will be coming in a couple of days so we'll get some much more detailed commentary on where people think the internal workings are or alibaba. >> we had a couple of analysts on saying that at least one of them did, they would love to see yahoo! announce a greater share buyback. are you enticed to buy companies improving in large part by increasing share buybacks? >> i certainly don't mind that spending the money wisely. think about ibm buying back stock at higher levels and apple

which actually issued debt to buy back stock paying a dividend of 2.8%. brilliant in hindsight. the people that bought the stock up 75%. the people that bought the bonds up 0%. if companies can do that at a reasonable price tag, and i think the price tag is reasonable, i don't begrudge them for doing it. not 30 or 40 times earnings for the stock. >> people say this is a sign of the economy in trouble. no. mcdonald's has heavy competition. look at chipotle 20% same store sales. coca-cola. pepsi. a short while said they're doing great. the snacks business. they were upping their guidance. ibm's got much more nimble competition, too. it is tough for the biggest guys nimble enough to be against the competitors. >> good do see you.

bob, thank you. see you later, as well. the dow up 207 points on the close and the nasdaq very strong and stay tuned now. we get those yahoo! numbers and an expected turnaround announcement from ceo marissa mayer next on the second hour of "the closing bell" with kelly evans. see you tomorrow. >> thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans. should we call it a turnaround tuesday? dow up 213. s&p 500 adding 37. look at the nasdaq up almost 2.5%. adding 103 points by the way just about the all-time highs for apple shares. just a random coincidence. let's bring in the panel. we are expecting earnings of yahoo! in a couple of minutes. michael block, susan ox,

welcome, contributor herb greenberg in the house and tim seymour in a moment. welcome, welcome, one and all. herb, actually, let's ask mr. block here, is this october selloff, if you will, now behind us? >> it feels like it is to me. i thought this was a lot of noise to start out with. you have a lot of pain caused by certain trades, that shire trade. the worst possible time coming into year end. i think that was a big thing. nothing fundamentally changed here. the ebola scare, just a scare and hopefully that's all it is. maybe aftershocks. not expecting october to be good for managers, whether hunk hedge or mutual fund and i feel like everything is smooth here. i don't think straight up but i think re-establishing and rebuilding from. >> herb, nothing changed? >> remarkably, people forget how they felt a week ago and how it was almost like doom and getting

from here to there. and, you know, you just want to feel like it's the 1932 democratic convention all over again. happy days are here again. look. what we know is this. what goes too far in one direction often goes in the other and that's the way the world works. i have a friend that watches a technical -- >> yeah. tom? >> by the way -- a friend of tom's. by the way, he was telling me last week what was going to happen and came close and he said it's off to the races but he raised an interesting point. and that is, the hedge funds with this kind of environment that have lost so much, went through such a freaky period, what do they do to regain the year? he says if you're in a momentum stock and short, watch out. >> these guys saying a repeat of the q-h last year with twitter on the highs for the year. everything was like a "v" for the last -- >> a hedge fund, you pile in now because you create that swell-up of the end of the year.

>> susan? >> i don't disagree. i think there's pendulum swings and the challenge we have is that economic growth globally is not great. you know? we have numbers out of china okay. not great. you know, we still have a big storm cloud in europe. the banks doing a stress test this weekend. probably not so positive. so i think, you know, we may not be seeing strong selloff but i don't think we're out of the woods yet. europe, now david tepper shorting the euro. tim seymour joining us now. how do you feel about the euro trade? >> well, you know, look. this all started today at least today's action about the ecb buying corporate bonds in january, possibly january. there's expectation built in that. the expectation of the balance sheet gets bigger. this technically is something that gives you the reason you could short the euro. remember, people expected the euro to go to parity against the

dollar. it's not that simple. if the ecb expands the balance sheet, maybe it happens but you have to be skeptical because of the issues on the public side. so, looking to markets right now, what we had over the last four days was an extraordinary snabback of probably oversold conditions. nasdaq intraday 10% higher of where it was on the 16th so if you think about the intraday moves and to this point, i'd say things probably look a little cautious. i think you can fade some of the moves and the big names. to say that suddenly none of this ever happened, that volatility won't spike back again and central banks don't run the risk of screwing up policy is crazy. i tend to be i think optimistic on the world and not one of the people saying we have to go down to 1700 but to think that the last 5 days or 10 days didn't happen is to bet at your own peril. >> michael? >> they happen and a lot to be undone here. one thing to say is everything is fragile.

a week and a half ago microchip warned and killed the tech sector. i didn't know it was a bellweather. i thought it was 1997. but it is fragile out there. back to the euro, the thing about the euro and depreciating is we had a big news and big chatter this morning about the ecb buying corporates. a huge thing to do. why are they doing that? >> if it's the case. >> why are they leaking that and coming out now? i would say with what james bullard said, the boj could be doing, i throw the pboc in china the mix. >> the pension fund and saying it's doubling the allocation. they're helping us turn things around. >> global easing is not over. a susan pointed out, global growth is slowing. >> isn't that rean i suring? we saw the signs and now the message of policymakers to step

up to the plate? >> they're doing what they need to do. we can argue and say this is just a disaster waiting to happen down the road but this is what think need to do right now and how we and they have been conditioned. >> people have been saying draghi should have been in six months ago and so, you know, are they behind the curve? playing catch up the whole time or where they need to be? that's an open question. >> one thing to say is ecb screwed things up to use a technical term three years ago. in 2011, raising rates. we forget that. undoing that and backtracking. so that's another -- >> were you trying to get in there? >> i'd like to say the problem and part of the problem and part of the move of ten days ago on the move down is feeling that they can't affect policy changes. again, the ecb only has so much corporate debt to buy outside the financial sector in europe. >> tim, hold that thought for

one second. let's take a look at the numbers on the screen. looking like a strong beat for yahoo! here. the quarterly results are out. josh lipton, what are the numbers? >> reporter: 52 cents on 1.09 billion. the street looking for 30 streets on 1.05 billion. so it looks like a beat there on the bottom and the top. the come through this release, look for display revenue and search revenue. headlines when i can. back the you. >> thank you. we'll get more reaction from larry haverley and kevin o'leary. what are your thoughts of yahoo!? >> i like the beaten on earnings. we haven't had a significant lift on the revenue line. what are you actually buying? is it a private equity firm lucky to have an equity position in alibaba private and now

tremendous cash value as it's public in when's the operating business doing? doesn't look like it's growing the top line very much. >> larry, to you here on these numbers. your first thoughts? >> well, i think yahoo!'s a closed in fund, kelly. you have three engines in the closed in fund. yahoo! japan, alibaba and the engine -- sub-engine the tax engine and the basic business and looks like the basic business is a little better but as the previous speaker said, there's a lot of financial engineering here. they have a smart cfo. we will have to see how the house is made whether it's made of bricks or straw. >> herb? >> that's the point. i cannot believe i'm agreeing with kevin o'leary on something, especially here. that's what we look at is earnings quality. you want to know. the street is conditioned to the meet or beat and now down to the real issues and the conference call. not just people look for the q and the actual details and then the conference call and say

about what she's going to do. >> right. >> that's the key issue. >> michael block? >> yeah. my thought is, again, haven't looked at the numbers but one quarter of, say, better display ads doesn't convince everybody. it's not what people are focused on. they want to hear about capital, what outside players are doing in the stock. i'll tell you right now. if that is fundamental beat despite what kevin said and we go to a numbers and say, this is great, takes at least one more quarter if not more to get people really excited about a fundamentally. >> kevin, where do you think it leaves marissa mayer's job security, if you will? >> i look long term yahoo! where money and companies go to die. that's basically happened over a long period of time. her challenge is to do something that all of her predecessors have not been able to do. tried video unsuccessfully. most of the ceos there have lasted a tenure of two or three years and then whacked. i don't really see what she's done to add any value.

if i was going to buy an internet play today, it would not be yahoo!. i think it needs a change of direction. more along the lines of a ool starting to return capital back to shareholders to deploy it. the company has not had success doing it themselves. >> here's a line from marissa mayer saying i'm pleased to report the revenue in mobile is now material. we saw revenues in excess of 200 million on a gap basis in q3 and gross reeve knew of 1.2 billion in revenue this year and inve invested deeply. seeing that pay off. i guess she is trying to point out, look, they are trying to steer the ship here. >> well, you have got a big horse race in mobile, kelly. facebook and google are at the half-mile pole while they're just getting out of the gate and it's very, very hard to beat facebook and google. so, i think it may be too little too late. i think marissa's got a lot to

prove and see how she does but you have to look at all the numbers before you can make a judgment. >> for sure. >> there's so many ways to make the stock go up, such a disparity of the current price and value an she doesn't have to do an awful lot. walk a straight line and the stock's going to be 48 pretty quickly. >> stay right there. we'll have a look at the numbers, talk about it. tim, before you go, thoughts either on yahoo! or the market? >> to yahoo! i agree with larry. you have major avenues for acceleration. the bar is so low here. the tax efficiency on the exiting alibaba stake, the proceeds and what they do with yahoo! japan, all places where if you value it at current multiples there's probably 25% upside in the stock. you need nothing to happen. if you get anything, you have more room to go to the upside.

>> we'll let you go. "fast money" at 5:00 p.m. and the gang and talking apple with carl icahn in just about an hour's time and don't miss that, obviously. we have much more on yahoo!'s earnings today and the rally and break-up the banks. that's what new york fed president bill dudley says could happen if they don't fix their corporate culture. is a break-up really on the horiz horizon? that's coming up. stay tuned.

welcome back. here's a reminder of the kind of rally on wall street today. the nasdaq up 103 points. up 2.4%. s&p adding almost 2%, back up to 1941. the dow adding 215 points. nasdaq rising for the fourth straight day in a row. can it continue? joined by the panel and back for more investor kevin o'leary, as well. larry, are you with us here, too? larry isn't here. kevin, just a quick word if we can on yahoo! and then go back to the broader market here. the point being this bigger beat on the earnings side than the revenues side still isn't good enough as far as you're concerned. >> no. the worst risk you have with

this company is the company doing what it's doing taking good money and putting it in bad deals. an example. if you're a great start-up or company achieved success in social media, you don't want yahoo! buying you. they go to everybody else first, including an apple or facebook or a google. so you really get the pick -- the runt of the litter in every situation. look at instagram versus flickr. the company should distribute cash to shareholders. it should admit it missed the opportunities in most of the markets. i'm sorry to have to say it this way but it's true. it has billions of dollars -- >> look. we heard this from a shareholder last hour saying the same thing but the question then goes, what about an ibm which everybody is upset saying they did the big buyback programs instead of legitimate r&d? >> kelly, in roman times of a

quarter like ibm and go to the warm baths and slit your wrists. we don't make ceos do that anymore. they erased $13 billion of value. clearly they knew this was coming. i can't believe they didn't preannounce. i'm shocked and anticipate litigation of all kinds of class-action suits. sometimes you have to admit you're wrong and bring a new management team in. i don't think i'm speaking anything that's insane here. both of these companies need a new direction. return cash to share olders, slash, cut and burn and find new management. sorry. >> susan? >> underlying the comments of yahoo! is what is the strategy? what are you trying to do? who are you trying to be? hiring katie couric? where that's supposed to be going and fit into the larger strategy? i don't think that mayer articulated that clearly enough to get behind it. they seem like a private equity

company right now. >> herb, it raises the issue back to the markets and learned this week, again, the weakness of ibm, coca-cola and mcdonald's. being aggressive enough seeing the landscape moving around them? >> depends by what you mean by aggressive. are you trying to make the bottom line move higher or be aggressive because your business is doing better? speaking of aggressive, beat by a big margin. stock's up a little bit. interesting to watch and trying to come back from a very tough situation. again, it's going to be what is really in the numbers? this is a quarter and you always with these quarter vs to get the trend. that's why when michael said, yahoo! it's just a quarter. >> is that true for the ibm, coca-cola and mcdonald's of the year? >> no, no. no, no. a point on that one, you look at those. i have never in my career seen three major brands like that,

mature hit at once in the same quarter a. remarkable moment for this. >> michael? >> it is a reminder these companies are different stages of life cycles. ibm for years and years and years after jack welsh, they were masters of mastering the perfect quarter time and time again and then a couple of years ago, the wheels fell off and missing on the top line. never would have happened before that and now they're reinventing itself just like yahoo! after the various trials and tribulations. they're at a different stage right now than facebook and mobile. >> i'm a big believer of reinventing and i think ibm reinvented back then. it's not -- it's tried to move forward and the question is, does -- i've had this debate with stephanie link on the street on the question is could anyone have done better? she says somebody else would have and did this and that and i say i'm not sure anyone could

have done any better. that gets into the execution issue and how important is leadership. and you know -- yeah. >> that's a mr. o'leary, back to your point. strong words for ibm management here. >> i'm sorry. you know? i look at it this way. >> i'm sorry? >> i realize the existing ceo came in a year into it and missing by a catastrophic amount, you don't drop a bomb like that on the shareholders. >> because, kevin, kevin, five-year plans, what we have learned about this, they have a five-year plan. coca-cola has a vision 2020 which is a decade-long plan. the long-term plans are meant as marketing plans for invest tofrs. by the way, what happened to the ceo? created the plans. especially ibm. he is out and got out while the getting is good. >> you know who else -- >> we're agreeing together on this. >> we are not agreeing they should -- no. yes. they should change management and not buy back stock and

that's the future of these companies. ibm's last buyback at $192. how's that working out for them, kevin? if yahoo! did the same thing -- >> i don't believe in buying back stock. i believe in distributing cash to shareholders. i don't trust management. i want a cash flow from a company. it's disciplined. you don't have to deliver. making a promise, you don't have to do it. you're going to watch ibm probably stop -- >> why do i have to agree with again, kevin? this is a problem. >> we'll come back to the issue in a couple of minutes. kevin, broad thoughts here about the rally and the kind of october that we just had? >> all right. leaving ibm and these disasters that happened, looking at the s&p so far it's wonderful news, kelly. you have got 85% meet or beating but what i really like about this earnings period is i went to the top line, over 5% top line growth so far reported and

that's the engine of earnings for the rest of the year. are we going to get up around $117 to $120? yes. i'm going long. i was buying s&p last week. selling durations and bonds and buying equities. yes, i'm a believer. >> hey, kevin, one question and that is on those 5% gain in revenue, how much is coming from acquisitions and how much is organic growth? i wish somebody could tell me the organic growth of the companies is. >> does it matter? >> yes. i think it matters because if you make an acquisition and don't perform, you did a jumpstart. >> there's evidence here. the acquisitions are generally being acreedive and we're making 85% times earnings estimates. they're doing what they promised but no earnings growth, no top line growth and no sales growth, we would be in trouble. >> we don't disagree. >> we better end it before you -- this is all --

>> bro-mance. >> we agree on more than we disagree and genuinely remarkable. >> going to crate & barrel after this to buy some furniture. >> thank you very much for your thoughts this afternoon. three of the most famous brands in the world but as we mentioned all three have been taking hits with investors and consumers. what are they doing wrong and can they be fixed? talking about that coming up. here's a head scratcher. oil prices plunging. airfares taking off. will it spark a wave of consumer outrage that's all coming up. ♪

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because at scottrade, our passion is to power yours. lack back. new york fed president dudley calling out the big banks saying the financial industry lost public trust and needs to clean up its act. could this lead really truly to a break-up of the banks? we'll ask larry kudlow, the panel here with us, too. what did you make of these remarks? breaking up the banks? >> you know, i actually -- i might like the spirit of it. okay? because the banks are in violation of a lot of things but it's kind of a pity that the new york fed -- i have known bill dudley a long time so this is not personal. the own inspector general said you didn't audit jpmorgan london whale before that. a whistle-blower said you didn't audit goldman sachs. come on. who are we kidding here? the reason i don't want the government to break up the banks is cronyism.

i don't believe they'll do it. the whole law dodd-frank is written in such a way that the government will put it in receivership and keep the banks going. what i want is the end to too big to fail. let me get -- i want to see the banks in liquidation. if they go down, they go down. the fdic guarantees the depositive its and that's that. that's what they want from the fdic. he's right. too big to fail, end it. >> i don't disagree with you on the too big to fail. the banks and the culture problem, i think part of the problem is they don't understand the culture and the dynamics driving it. i have done research on bank culture specifically and two of the biggest, most prevalent mind-set is bias of complexity. meaning that people think that by making these more entry kate, sophisticated structures makes them look smarter and a strong motivator and making it more complex. on top of that, you have a

culture where they don't raise issues and red flags. hold on a second. if you look at the transcript of the london whale, you can see in the text messages, don't, don't, don't tell the boss yet. this is $2 billion into a bad trade and they think they shouldn't raise the issue with the boss so taking complexity and -- >> fair enough -- >> -- nobody can manage that situation. >> i think you're probably right. the risk is unmanageable. richard fisher of the dallas fed believes this very strongly and written op-ed pieces on it. dodd-frank is a failure supposed to solve the problems. volcker rule supposed to solve the problems. at the end of the day, thomas is right on another point and that is you probably should separate the investment bank completely out of the commercial bank. take wells fargo. america's greatest run bank. >> competing issues. if it's sheer size, that's a totally different --

>> it's complexity much more than size. >> no, no. look. see, you can't do both. that's what you're inferring. wells fargo is basically a large community bank that specializes in mortgages. nice and simple. virtually no investment banking. there's no broker dealer operation. citibank, on the other hand, rescued every five years, whether it needs it or not. should be put out of its pain long time ago. they do so many different things. that's where your complexity. >> yes. >> not to say the kids doing it aren't smart but the organization of the bureaucracy is not smart enough to manage it. >> what about the investors? >> no one can. >> taxpayer risk. >> here's the question. >> i was at treasury working on t.a.r.p. i know about that. >> if you don't want -- if we agree there's a problem and don't want the government to solve it. >> i do not. >> then how does it get involved? do you just ultimately make the

economics -- so uneconomical? >> it's bankruptcy. it's a new idea. >> what do you do about the size today as a problem? >> today, tomorrow, friday, whatever. it's called liquidation and bankruptcy. that's the way the things end up. >> wait for a crisis of citigroup. >> absolutely. down. gone. >> what if it doesn't happen for years? >> wait. if they're profitable, they're profitable. okay? >> you wouldn't have stepped in at all and no bailouts in 2008, just let it ride? >> you know what? i might have. i might have. in all seriousness, i might have. >> sitting in that seat and you see so many hundreds of of thousands of people about to lose their jobs, lose their houses, lose their cars. >> hundreds of thousands of people did. we had a bad recession. >> exactly. you want that on your head? >> the question is, the question is, why can't the fed exercise its function as lender of last resort? that would have covered the liquidity problem to which you refer. >> speaking of --

>> that's the fed's job. the treasury stepped in and that politicizes the whole thing and where in my opinion we went wrong and unfortunately mr. geithner at the new york fed and mr. bernanke at the federal reserve in washington were accomplices with paulson. these guys could have done it -- look. >> but even -- >> the liquidation of the world banking system, become to walter badgett, they're there to provide a cushion. they loan. that's what they do. could have done that ultimately by the way stemmed the crisis. the minute the fdic and the fed got together and guaranteed all of the liabilities of the banking system, the freeze ended. and then at that point, i would have brought in the fdic and said, closing down. citibank goes first. bank of america second. instead of having a buy all these little banks. >> that's an organized unwinding. >> unfortunately, we have do go

and only say to say as we go is that in a way it creates you and elizabeth warren as bedfellows. janet yellen's hearing, she said the reds lugss are ridiculous. this is not any kind of resolution. >> there's an interview in "wall street journal" with my friend jeb hensarling and he is a very conservative congressman from texas. and jim freeman with the interview said you sound like elizabeth warren and he said, yep. i do. you know? sometimes the socialists and the free market guys get it right because we hate free market guys. i hate cronyism, government bailouts and let nature take its course. >> let's focus on the right problem and the right resolution if i can use the phrase here. larry, susan, thank you. hopefully this shines a light on the problem as it still exists. dow soaring today regardless of this. did pretty well. blue chips, ibm, coca-cola and

mcdonald's hit hard. >> she's absolutely right. >> it's a great point. can anything be done to save those struggling iconic brands? that's coming up next. . then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪

being trouble for big brands. ibm, coke and mcdonald's, coke on pace for the worst day in years. look at that. down 6%. ibm down another 3.5. mcdonald's weaker after losses in the third quarter. for more on where the brands went wrong, joining the panel is michael kelly, the founder of unconventional partners and author of the book "all thumbs." i won't ask, michael, about the thumbs. what about the big brands, though? i kind of like the issue that herb raised here is the five-year plan a red herring for investors? >> well, when you start to reverse course it is for sure. i mean, you know, if you look at where coca-cola is, they are largely going to start refranchising their distribution and large measure added because they wanted to control the marketing. from my understanding. and so, now we're really reversing course on something and all part of a cost reduction

effort, all part of getting rid of a very low margin business. labor costs are huge in distributi distribution. issues that go on. and that will, you know, really be the focus in 2015 along with their cost cutting but, you know, they have got to focus on the products, as well. >> and the core issue here, i guess that you would argue, is actually that big brands themselves are becoming something of a liability in today's, i don't know, social media driven world? is that true? i mean, do you feel that's the case? >> well, absolutely. i mean, look at where we are. we have mobile, social and security on the scene in the last five years and really accelerate in the last two years and giant companies have got to have the nimbleness to respond. ibm's another one of a percentage perspective they had big gains in mobile, social and cloud computing. you have to hit the accelerator on these things. the growth is unprecedented. >> i see mcdonald's talking

about social strategy right now and i'm thinking to myself looking at it, which, by the way, mcdonald's talks about trying to become relevant again in the press conference. do you know what they're saying saying that? conceding they weren't relevant. >> admitting you have a problem is the first step. >> it is but i think in terms of looking at that saying is that too little, too late for them? where were they earlier? and i want to point one other thing and i mentioned the five-year plan for investors. i think they have to have plans and fluid and constantly reinventing themselves. a northwestern university professor with a new book out called "invent, re-invent and tloif" and goes through this as ibm of an example of reinventing itself back then and then facebook reinventing as a young company. >> michael? >> on mokd, you know, i think consumers don't know a five-year plan. we have been in a rough five years. they know a day-to-day decision

plan. the biggest marketers of mcdonald's are the franchisees and they won a big victory wanting for decades, i went to work for mcdonald's early in my career and they run that company. they wanted to be offering more local, regional products to compete with the onslaught of the chipotles and others that came on and they finally got that victory. they're finally going to offer local products and also the custom products. this is a huge difference in that. >> hold that thought for a moment. i'm sorry to interruptd. we have a market plash that might be relevant for this conversation with dominic chu. >> we have headlines crossing that daimler-benz, the german giant automaker is reducing and selling its shares or stake in tesla motors. it has a 4% stake in tesla. it is now selling that stake off. it does, though, however, say that it's retrustructuring the

agreement. both companies had been cooperating and collaborating on sourcing powertrains for the b-class electric drive cars and tesla working with diamler on that project. this continues to stay intact. the cooperation of the automotive projects is unaffected and maintain daimler-benz and tesla, the cooperation agreement of shaving technologies but diamler is selling off the 4% stake in tesla. those are the headlines. >> that's an interesting one. thank you. michael block, your reaction to that? >> look. i see daimler taking profits. a trade here. good for them. ringing did bell. i don't see anything changing there. they have a lot of challenges but i'm not going to bet against either of them. not saying i'd buy them. >> for both you don't take it a sign that tesla's -- not marking

a top in terms of daimler seeing prospects and not a point of diamler to say we should have doubled down opposed to exiting it? >> i have to look at the track record to tell you what kind of trader they are. >> michael kelley, before you go, a final word here. >> sure. yeah. i think it is interesting -- >> go ahead. >> i was going to go back to the mcdonald's and talk about this from a mobile perspective, which my book is on mobile marketing, "all thumbs," mcdonald's has to elevate the game in all their marketing and something that ibm needs to focus on and coca-cola. the millennials are there. all of the target market. the mcdonald's and the cola colas of the world and health on shouse. some of the consumers seeing doctors for the first time and told you have to watch your weight. and we're now starting to see i think some of that impact in --

is that millions of americans getting health insurance and seeing doctors and told, hey, you have to take care of yourself. >> okay. >> especially when 75% of people are overweight and we have to see healthier options. we have the see that push more from both those companies and i think we will see it. >> we have to leave it there. thank you for your unconventional views this afternoon. warren buffett's port foal low lost nearly a billion dollars. we'll see if it cracks the hot list coming back. also, airlines tend to raise prices and blame higher fuel costs. they're rising prices and oil is leading. can they get away with it or do they risk alien yating their customers? that's next. you need to catch t0 huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge.

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they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. welcome back. airline stocks up today on news of an airfare stuck. they have some wondering why ticket prices aren't dropping. here to help us out, rick sweenny and rick boyd. michael, why are fares sticking? >> well, right now, let's -- it's a supply and demand thing. 80 bucks a barrel isn't cheap, cheaper than it was, but, you know, what we have launched is very, very little increase in capacity but increases of load factors and talking about supply and demand and like any other

business last time i checked doug parker and richard anderson are not related to mother tee rhee is a. if they can get it, they'll raise it. >> rick, do you agree? >> yeah, no. airlines tend to raise prices or attempt to about every month. they're probing to see if consumers will pay those prices. just remember, when an airline lifts the price by $1, it ends up on page 30 of shopping results. so you don't do that lightly. southwest usually has to come along for the hikes to stick. >> say that one more time. what do you mean page 30? >> yeah. so if you're $1 more and you have 1,000 results on the shopping results, $1 more, you're on page 30. usually about 20 results per page and bookings go down and then you need if other airlines to match that one or two or hike. >> is this all above board? >> sure. >> i think it's -- >> michael block here, yeah. >> this is classic market. game theory 101.

everyone wants to see what they get away with and it works out really well. we were talking about collusion. maybe it is. everyone watching and signals each other. it's how the market works. it works really well until one of the smaller guys ruins it for everybody. >> until, herb, people are too concerned of ebola and can't take the price hikes and push back on the consumer level. sounds like neither one is happening. >> but it will happen. >> you're -- >> no ankle biters anymore. that's the problem. there are no ankle biters. you have four mega airlines now down from eight or nine five or six years ago. they basically carved up the country, not by geography but by city so if you're lucky, you have one competing airline in your city. >> susan? >> i think you have virgin america out there. i would say richard branson in the ankle biter territory in this regard and airline companies are like banks. they charge you for bags, food, extra room. so even if price paying initial

sticker price on page 1 or 30 isn't the amount to pay and some point consumers get frustrated. >> michael boyd -- >> i don't think so. they're paying. no, a're paying it. i thought an america of bag fee, they're dead. what did i know? people pay it. you have a good point of the ankle biter types that, you know, virgin america is -- you know, capacity is down. they're not going to go after anybody. the real issue is what's going to happen now that delta's putting in a bare bones fare to try to maybe get some of the people that the spirit's carrying and that's the thing to watch. >> also, am i wrong or does it seem like most of the competition and the increased players in the airline space jenrry seem to be the people aiming at the luxury market and not anybody looking to get the rock bottom fares. >> you've got spirit airlines and alley janet airlines and as he mentioned delta airlines of rock bottom pricing. that's a very small market.

virgin america with a handful of cities compared to the rest of the airlines so i mean -- >> didn't jetblue and southwest start the same way and they start out small and then all of a sudden they start to take over your market? >> in ancient times that was true. but not now. >> i live in the dallas area. virgin america just moved to love field airport. they only have two gates in dallas. how do they grow in dallas without adding capacity? at $80 a barrel oil, airlines can't continue to grow. in fact, in the sky today you see 12% fewer flights in the air than 6 years ago. nobody's growing at this point. they're all hanging in there and as noted before, capacity is small. >> more profitable even if it means leaving out a segment of the population that could once afford it. we have to leave it there. appreciate it. another big day for afterhours earnings and then riding the rails of csx ceo to

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another busy day after hours for earnings.

dominic chu, round it up for us. >> i'm going to take one big breath. we're going to start with yahoo, posted better than expected third quarter earnings. revenues also coming up a bit higher than forecast. also cree moving lower in the afterhours after reporting lower than expected first quarter results. its revenue guidance for the second quarter also below consensus views. a stock down by 12%. a different story for intuitive surgical. it posted better than expected third quarter results. irobot also moving higher after reporting better than expected third quarter results. it also raised its guidance for the year. shares up by 10%. and we're going to end with some fun and games. six flags also beating on the top and bottom lines. the company raising its quarterly dividends more than 10% to 52 cents a share. maybe not the roller coaster ride, but at least for now, a nice little assent for the shares of six flags. kelly, back over to you.

>> well-done. we heard yahoo earnings moments ago. no surprise it's burning up the hot list already. for more, let's check in with alan. >> hey, kelly. you're right. yahoo is the dominant story right now. people diving into the earnings report, checking out the numbers. ben berkowitz did his own little deep dive in the numbers, stripping out properties, securities, cash, how much value would yahoo stock actually have. it's a negative number. anyway, also in the earnings front, we have a feature on coke. our staff dug into those numbers trying to figure out why the stock didn't take even more of a pounding today than it did. and he's looking at some of the rumors affecting the stock as well. and then the fun story of the day, we have the billionaire bad boys slide show, put together for us by the former hedge fund trader. he took a look. he also hosts our filthy rich guide that airs on wednesdays on cnbc. you take the test, figure out who you are. i'm justin bieber. okay, that's my billionaire bad

boy. but there's others. somebody got colin farrell. >> i thought this was like a hedge fund list. and justin bieber was not the first thing that came to mind. now we know what we're doing in the next break. thank you, alan. good to see you. the earnings parade tomorrow on at&t. we're going to look ahead when we come right back. custom comms solutions, your business is more reliable, secure, and agile.

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welcome back. we'll talk about the bad boys of the market today. mcdonald's, coca-cola, ibm as well. we should mention time warner, another company. is your issue with the five-year plans? >> my issue is with any company that gives you a long-range plan for guidance because i think it's impossible to know what's going to happen in a year, let alone five years. so i think we've learned historically that you're forced to pull levers to get there. financial engineering, whatever it is. i don't think that's the right way to do it. i think you move ahead, if you perform, street should follow, if the street works the way it used to. >> what should the street be watching tomorrow? >> one name i would be watching is ryder systems. that's the truck company, because it gives a very good window as rentals decrease or increase into the economy as people decide they need extra capacity.

stock's been on fire. i'd be watching that one. >> susan? >> i'm definitely looking towards the weekend. we're going to get the results from those stress tests from the european banks. the ecb will be putting them out. i think there will be a couple trouble spots, but overall, i think we should probably be okay. >> i'm a macro guy, so i'm watching cpi at 8:30 tomorrow. that was negative last time. a bad number is going to be good. that's going to give the doves a lot of fuel. the other thing i'm watching is tomorrow evening, i'm watching the hsbc chinese flash pmi to see what we get out of that. >> how bad is deflation in terms of being a global problem right now? >> i'm not going to call it deflation. i'm going to call it disinflation. it has a risk of turning into deflation. obviously it's something that the central banks are going to address. it's a very dovish phenomenon. i do think that it can be managed pretty well here, but it's going to take a lot of cooperation, a lot of foresight and i think they're on the right track here. >> a lot of faith in policymakers, i guess. which we don't have much of

these days. got to get larry back here. a lot to get through. "fast money" coming up in just a few moments with melissa lee. >> we're going to have an interview. very rambunctious bunch. we've got an exclusive, remember that yesterday the stock was up at 20% on this deal that they have. it's up again today on news that its vaccines are being tested for ebola. so this is a big ebola stock that also has a solid pipeline of immuneo therapy treatment. >> without delay, over the you guys. >> "fast money" starts right now. i'm melissa lee. your traders tonight are ryan, karen, guy. yahoo shares popping after hours. the company beating earnings and revenue estimates. the conference call starting right now. we have got the latest in a big rally today. the s&p and nasdaq posting their best day of the year. the lonst