do about the target price, bring them down or defending to the something >> herb's ears must have been burning, i believe he is going to be talking on this subject on "closing bell", a very fine show about to start in ten seconds and tablet story, makers of presto tablets, restaurant ordering tablets, tomorrow, the ceo will talk us to. >> "closing bell", now. welcome to the "closing bell," i'm kelly evans here at the new york stock exchange. >> i'll simon hobs in for bill griffeth. markets struggling to get to sea level, hit the final hour of trading, also following these stories today. hasbro sinking, dream works soaring on word the toymaker is trying to buy the movie studio for a huge premium. why do hasbro shareholders hate the idea? we will take a closer look. >> and blackberry shares, many while, also sharply higher today. the company shifting gears from devices to providing enterprise platform for other smartphones,

inking a major deal with sam sunk and blackberry ceo john chem is here in a first on cnbc interview to tell us more in just a few minutes. >> the dow up 16 points, as you can see, the s & p relatively flat, slightly negative, the nasdaq also flat for the session overall. remember, we have five record highs and then two days now where we have been unable to do that after a massive rally over the last month. joining us in our "closing bell" exchange to talk about these markets, heather hughes of sun america funds, rob more gam from v 26789 v associates, meg green of meg green and associates and jim lowell from adviser investment and very own rick san tellism welcome to you all. welcome to the show. let me show a chart very quickly, meg, direct this at you, where we have come the last month in the s & p 500, an 8 1/2% rise, rallying from all the lows about concerns about ebola and the economy and now as you see, beginning.

>> isis. >> meg, are you still bullish on this market? >> i'm always bullish. i am very bullish. that doesn't mean we are not going to have dips, people have to get used to volatility, tough think about the market prices are not that out of valuation. i mean, i think it's pretty fairly val waited. if you start to look, lower oil prices are certainly going to help us in the u.s. with a lot of the consumer spending to the year end. and it's happy days are here again. a lot of people are very complacent, very quiet. they are looking for a yield, which is fine and a lot of good places to look for yield, but, yeah, i've been saying 18,000 on the dow for the longest time and we are this close. so. pick up to than crude point. rick santelli, i want to go to you on this. i think really important what's happening in the oil space now. we have a $3 selloff into the settle there we have crude settling below $75, gasoline futures below $2 for the first time since 2010.

deutsch out there talking about if we go to $60 crude could have a 15 to 30% default rate among some of the high-yield energy issuers, talking about volume in this market today that's by my calculations four to five times what's normal. what is going on? how serious could it potentially be as its commodity bubble unwinds here. >> i don't think it's serious. i actually think it's great news. now, i understand there's going to be creative destruction going on and there's going to be kind of things going on we might not mind. venezuela not have an easy time of t russia may not have an easy time of t as pointed out today, if you look at the week u.s. crude oil production, it topped nine million barrels, okay? we haven't topped nine million barrels in 28 1/2 years. so i think it's great news. i think that the yankee technology is now repricing the market. there's a lot of people upsides due to geopolitics and yes, it's going to get messy. i think the price structure we

are going to end up with is not going to be maybe super low relative to how low crude oil or brent goes but remain a lot lower than it was a year ago and i think that's wonderful news. >> heather, the energy sector is the big loser today, down 2 1/2%. i mean, do you agree with rick? >> here's what's important. every penny lower at the pump per gallon translates to $1 billion increase and consumption and consumers and consumer spending. as we know, that's two-thirds of gdp, that is crucial going into the fourth quarter in the season. however, as lower oil and crude prices on its own by itself enough to outweigh the necessities in the basket of goods that are rising, such as food costs, the price of goods at the grocery store and represents are astronomically high. so i hope that lower crude will translate to a stronger consume near the holiday season and kind of overpower or trump some of the other increases in costs. >> jim lowell, this is just my

point, i hope that is the case, but all i can tell you from seeing what happened, for example, with the housing market, when it rolled over could have made the argument it was good news, houses would be more affordable for people. by the way, there is a financial crisis. can you just talk a little bit about some of the risks as you see, as oil here, the activity for the last couple of -- it's been astonishing, put this into context for us. how concerned should we be? >> well, i don't know if happy days are here again i don't know if lower oil prices are here to say. i do know it is right to point to the consumer as driver of the economy, more cash in the pockets tends to be good. the u.s. consumer is in reasonably good shape. lower oil prices are net benefit, not just to consumers but to industry as well. so i don't think that i see profound risk. i do think that oil is a begin of the global economy is faltering a little bit. it's not as correlated, i think, as we like to believe it to be, we used to look to oil prices the way to basically tell us in

advance whether or not the global economy was grinding to a halt and at these price levels, would you have thought it would have ground to a halt, clearly hasn't done so yet, not here at home. tomorrow, we get a very key gdp -- third quarter gdp from germany, we know the eurozone is definitely on the cusp of recession, expect it to have a mild recession but that, too, ought to be net good for investors that can finally get into the eurozone with a reasonable level of optimism, one to three years down the road. >> rob morgan, let me just try one more time here and then i will let it go frankly this hour. but lone star capital, a hedge fund, is shutting down. 12% of its wages are energy, 32% roughly materials. i'm just asking, for those -- for the average investor out there, not that we don't understand why lower oil prices are a good thing, do we need to know about risks in the financial system, back to the commodity, frankly, bubble and bust that we are now witnessing? >> well, kelly, in tieing it in

with the earlier point about the housing market, when the housing market turned over and we had low prices there, keep in mind that that was collateral for a huge chunk of the bond market, a gigantic chunk. and yes, some of these companies like lone star feeling some pain from this? they absolutely are. but the magnitude is not -- is not nearly as much as we saw with the housing market, so i would say, yes, there is going to be some pain with that debt, but at the same time,s's so small relative to all the other good points for consumers, all the other guests have brought up, i think that, you know, i think it's not gonna be a crisis like we saw with the housing market. >> meg, just to pick up the point that kelly is making here, deutsche bank is warning that if we get to $6 a barrel, there could be some distress within the high yield sector, the same time, they do say the -- >> simon, isn't that a risk? isn't that a risk? people reads for yield and

bought what was called junk, they don't call it junk for no reason at all. a card laid a is card played, that's just too bad, they bet wrong, it isn't going to bring down the economy and it is nothing like the magnitude. >> meg, what say you? >> right. you have saudi arabia pumping like crazy and going to have a supply and demand issue and that's really what's the basis of this is. look at russia and what's happened to their currency, look at venezuela, brazil, there are a lot of things going on in the world but if we want to just look close at home, it happens to be a good thing. manufacturing, look what we are doing in manufacturing. i mean, that's pretty impressive, like second in the world in manufacturing. so, i don't see this as a negative. i think that any hedge fund that had too much in there is shutting down, that's negative, but i wouldn't have been there in the first place. keep the balance. >> that global slowdown, on the other end, you have all of the fracking, the hydraulic fracking shale gas formations, american energy establishments helping to

keep the praise of oil even lower and a big point on the table today is keystone. right now, it seems like that will be passed. the president may be forced to sign that into legislation and use his veto power for some of the immediate issues and that could also help. >> okay. so, another play -- another play is pipeline. you want to own the pipelines and then you're getting your cash flow, you don't really care hat price of oil is. if you play this whole thing properly, knowing that there's inflation, if you want to take a look at housing, you want to take a look at real estate, you are looking at 2,000 a if the here in florida. i understand the sky is blue and i understand there's no state tax, but we are talking about major inflation. >> coming down there, meg. >> come on. this is real. >> leave it there. the clock has beat us. meg green, heather hughes, rob morgan, jim lovell and rick san telly, thank you all great conversation. >> we have about 15 minutes to go here, tough point to the

resilience of the stock market, as i mentioned, even as oil's having another tough session, the dow up 39 points, the nasdaq is up about 4 1/2. the s & p slightly weaker. >> feel better now? >> i don't know if i feel better or worse. blackberry launching a new mobile platform that can be used on other phones, signs up samsung and helping to score a big pop in the stock today. blackberry ceo john chen is here in a first on cnbc interview next. >> hasbro in talks to buy dream works animation. the stock pros weigh in on how the maker of my little pony can mesh with the maker of shrek. so i can reach ally bank 24/7, but there are no branches?

24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

47 minutes to trade. dom chu has the movements. >> start off with what's happening with hasbro, the news of things, it is in advanced talks to buy dream works animation studios, dream works higher on the news, up there by 11%. one deal that did go through, berkshire hathaway is buying procter & gamble's dura celibatery business. berkshire will swap 4.7 billion equity stake in p & g for dura sell brand and 1.8 billion this

cash as well. shows shares to watch. walmart higher after postbetter-than-expected third quarter earnings and sales as well as comp sales above estimates. see the walmart shares up by 5%. four-year low in oil prices is affecting two sectors, airlines, which are moving higher, while energy stocks are headed in the opposite direction. end with blackberry, moving higher after the company unveiled the mobile device management platform and struck new partnerships aiming to win back customers, up 9 1/2% on the day. back to you. >> that's quite the move, dom. thank you. blackberry stock a great day after mapping out the ener prize strategy today in san francisco and signing up sales to provide its enterprise platform. also now, blackberry announcing it will debut a classic phone on december 17th. joining me now in a first on cnbc intervunt back of all this, blackberry chief executive officer, john chen. it is great to see you.

welcome. >> thank you, kelly. >> the phone, the device, kim kardashian will be excited. should she be equally excited about what you are doing on the enterprise services side here? >> i don't know. i haven't spoken to kim. i wouldn't know. >> let me ask you quite seriously though, your aannou e aannouncing a new device at the same time, basically saying becoming more devising a mostic. over time, how much of blackberry's revenue will be devising a mostic as opposed to reliant on the traditional phones? >> well, it is going to be a portfolio. i don't have a number in my head. but our software business today is very small, roughably 250 million a year, i'm hoping to get up to 500 million a year in the next fiscal year and then the grow will continue. so, see a little bit more significant. >> what is the fundamental case for this mobile management tool that you are announcing, is it security in the wake of the security concerns we have seen

on other phones, is it cost? is it availability? >> it's a little bit of combination of all, but the most important thing, like you said, security. we are very focused on security, productivity side of the equation. management, scale ability. this is a built form that is going too last us a very long time. we can build a lot of great, great technology on top of that, great partnership, you mentioned it a little bit earlier. samsu samsung. a lot of the carriers signed on to resell it, to host it. distributors around the world very excited about it. we have got something good going here. >> the samsung news raised eyebrows, people in the past talking about them being a suitor for blackberry during some of its struggles, by the way, the partnerships that they have had with google for years now, even on the enterprise side, how have you managed, full to elbow google out of that equation? should that tell us something about samsung's strength or

weakness today? >> oh, no, i don't think we should. we are focusing on the customer ultimately and i think samsung and blackberry has traditional strength in different areas. this is very complementary. and i'm very glad that we could put it together, but nothing to do whether we have done anything with or without google. you know, obviously, google is also a, you know, a great ecosystem partners and in the emm space, sorry for the mouthful of terms but hoping one day we could even build the ecosystem big with samsung and beyond. >> what might that look like? and is it -- is capital a barrier or what's biggest barrier to your growth at this point, simply demand, the message? >> no, i think it is about technology lining up together to

be complementary to each other and having a really good set of solutions for the customers. it's not really about capital. it's not really about anything else. that's the beauty of the software business. you can add value with very little barriers, all about innovation. >> your shares are up 50% or so just this year. obviously, market cap of 6 billion plus, that puts you in a very different position than it did before you came in. what does that mean though again for blackberry as an independent company and, you know, there's a group of west point cadets, i don't know if you can see behind me, leaving, just on the floor here, i turned to them before the interview and said how many of you use a black berry, not one hand. not one hand. >> you know, the company is financially very stable now. i mean, i still have to making money and breaking even and cash flow or generating cash from operations. all these milestones will

happen. i made the same, you know, beginning of my tenure here, i think we are making great progress toward it, those will happen. capital enough, always good for our shareholders and put us in a different position in terms -- we now be able to make some investment on our own and, you know, our cash position is very strong, over $3 billion right now. >> i'm thinking again back to the day when apple and ibm announced their partnership and your shares were down sharply on that news. is this tie-up with samsung an effort to kind of fight back on that front? obviously, it's part of your whole turn around strategy, but were you surprised, your share reaction that day when ibm and apple were talking about analyt analytics? >> no, no. you know, the whole partner program has always been a dream of ours from day one that i came in. okay? we know we have to expand our ecosystem. we know we need help from the carriers, the distributors, theism svs, like seam source.com

and, you know, the technology partnership like samsung. so, this is not a reaction to anything whatsoever. apple/ibm partnership, they serve a space, they might compete and overlap. i'm not worried about competing. >> what about competing when it comes to the enterprise software that you're announcing today and down the road, as a lot of these companies, ours included, a lot of people watching, will understand the concept here, but perhaps look for easier features, more functionality, more data, more analytics, more apps built on top of that certain from the device manager's point of view, what do you have in the pipeline or what do you have planned on that front? >> i could only tell that you we have plans. we have a lot of pipeline, both internal development of the technology. we might do some acquisition, like we did a couple of them in the last 12 months and we will partner quite a bit, especially in analytic space. so, i -- this you got to stay tuned but certainly on our road

map. >> understood. that's enough of a hint just there. let me pivot a little bit and talk about what will have many people excited next month, the launch of the classic phone. nice job capitalizing on the nostalgia factor, as you have said it you are calling it innovation it means improving an existing item even if he it is some extent just a return to the olden days. blackberry classic, what can you tell us about it? december 17th? >> yes, december 17th, three different places. gonna simultaneously, at least three on the same day, gonna announce it, singapore, frankfurt and new york city. i'm going to be in new york city myself. interesting thing is the reason why we call it innovation, the interface, both hardware and software, you use the word nostalgic it is something that i hear loud and clear, a lot of our customer wants, a lot of customers still have it, on wall street, in media, by the way,

and i'm sure you have colleagues that still uses -- held onto their blackberry keyboards, that's for the interface, but the -- but the -- but the guts of it and a lot of the software are very, very innovative. so, those are the combination, kind of the old and the new. it's important that i retain the memory muscles about loyal, die-hard fans. >> a lot of companies stopped supporting them what are you doing about that? >> this time around, i was fortunate to be able to lead it i have only been here a year. i think we have done a lot much the team has done a lot. this number one issue, gaining back, something we will have to do, one at a time, hopefully, good partners, bring us some

leff rance but still going to be hard work ahead. >> i would imagine potentially, quite labor intensive, i think about the sales forces some of your competitors have microsoft, ibm, jon fortt joked, wait around for something to do. does blackberry ultimately fight back by hiring a task forces of its own to get out there and help these companies re-sign? >> absolutely. we are hiring. we are definite any the hiring mode and we are building our enterprise sales force all around the world, for that matter. this makes our life busy, certainly, if a different phase now, a happier phase, the employees are much happier today. >> a couple of quick questions before we let you go, one on mobile payments, will you have deerfield communication technology in some of these phones allowing you like you now can with the new iphones to sort of zap and pay? >> yeah, i have nfc, the near field communication on every phone. actually, we had it before i

came, so i can't claim credit for it, but we have it in passport, we have it in classic, so, nfc is there already, so, i'm not, you know, i don't need to add to it. >> absolutely. and then a question on a major issue right now, just curious if you have a point of view on this. net neutrality, the president's moves here to regulate the internet in the u.s., like a public utility, do you support that? >> i think so i think, you know, for the better economy, i think net neutrality is a good thing. i know that it disrupt a lot of the current business case, especially for a lot of our partners, for that matter. you know, i don't really have a strong opinion, but if you are on net net, i think the net neutrality might not be a bad thing. >> interesting. a different perspective than we have heard from some people in silicon valley. so, john chen, again, on a big day for blackberry, frankly --

our congratulations so far on the turn around. you mentioned you're hiring and we hope to see you back here in new york when you do launch that device next month. >> thank you. >> thank you so much. >> nice to be here. >> john chen is the ceo of blackberry, shares up today in the range of 9% and we have gotten a eye on markets here into the close, only about 35 minutes to go now, still looking a at dow of 35 points, nasdaq up four. the s & p off by 2. >> got to admire the guy. thanksgiving is two weeks away, a retail investing pro spots this year's hottest black friday and signer monday trends. plus, stocks that could rise on those trends and how you can invest in them with him.

before larry instantly transferred money from his bank of america savings account to his merrill edge retirement account. before he opened his first hot chocolate stand calling winter an "underserved season". and before he quit his friend's leaf-raking business for "not offering a 401k." larry knew the importance of preparing for retirement. that's why when the time came he counted on merrill edge to streamline his investing and help him plan for the road ahead. that's the power of streamlined connections. that's merrill edge and bank of america.

for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

am job settling a deal. at long last. >> amazon announcing a multiyear deal for e-book and print book sales much the two companies aren't revealing the terms of the deal but say that hashet gets to set the price for e books, good news for writers but amazon is happy because herbet has incentives to deliver lower prices, implying it receives a bigger cut of sale it is it sets the prices lower. this ends a months long highly contested battle between hatchette and authors, one side, including james patterson and

the e-tailor in which amazon reduced discounts and certain delivery of hatchette books. both terms don't take place until early 2015. amazon has resumed its normal promotions and delivery times of hatchette books. kelly, to you. thank you very much, julia. the holidays are just around the corner, our next guest predicts record growth in retail sales? well, joining us now, in an exclusive, coat founder and ceo of motif investing. welcome. >> thanks for having us. so, we have -- it is expected, national retail federation says we are going to hit 4.1% growth, first time since 2011. it has gone over 4%. and we are being tracking it with our hot retail motif. this is a motif comp priced of 25 stocks consistently grown revenue, same-store sale, profits, while maintaining inventory and selling costs and it is weighed based on growth expectation. growth is not going to be distributed eventually. you have the apparel companies like nike and under armour doing

well. home furnishing company, tuesday morning, doing well, the discount retailers, tjx, walmart suffering. you lock at retail collectively, it is doing well. our traders are seeing conviction there. >> interesting. talk me through the major holdings that you have here, because you're basically stop picking up on behalf of people, do you not? >> we actually create indexes. >> right. >> of everything. we don't actually pick stocks, we pick methodologies and we have another motif, for example, that tries tap into the emerging market consumer and these are companies that have great exposure to the emerging market. the u.s. middle class expected to be cut in half as a share of total middle class, asia is going to double or trim, a motif index that gives you exposure to that. >> you talk, not talking demographics, inevitably worries me. there was a time when people spoke about apple and demographics around the world, then a hall a terrible time.

if i look at what your weightings of the emerging market consumer, it's 21% coca-cola, 17% colgate palmolive, the last 18 months, those have been terrible stock -- not terrible, they have massively underper formed the s & p 500s by a very large margin. why would you suddenly create that as being the vehicle to create the emerging market consumer? >> we don't think you can pick the winning stocks. >> coca-cola. >> coca-cola generate 65% of their revenues from the emerging market consumer class and colgate palmolive, for example -- come from this. it also includes the local companies, the e-commerce companies on a tear, the jd.com and in actuality, picking an individual stock is hard new york matter what sector you pick. so, what we have tried to do with these models is it's kind of like peter lynch meets jack vogel, you have a good concept, can't pick the stock, create an index around the idea an

these -- they have underperfo underperformed. >> buy products that tract index. >> so, in this case, you can buy the index, what is remarkable about this, this motif, emerging middle class motif has underperformed thesome and p, yet our traders our buy sell is 11:1, usually doesn't happenen something underperforming the s and p, and what we are seeing, it is 6:1 on the u.s. retail. a remarkable motif, we study trends, what's interesting is this is underperforming, traders are betting on it >> that does sound familiar lately. listen, i have a question as well, we just talk about this has been a sort of unofficial segment on the show for weeks now, the extent to which the s & p 500 outperforming active managers this year, any read you there from your business? i mean what is it about -- that people keep getting wrong? >> it is, the hardest thing. seeing this across the board, active management is struggling. one is costs are high. one of the secrets, our motifs are beating their etf

benchmarks, part of it is 'cause of the weighting methodologies, no one talks about weighting methodologies, these indexes, ours, smart beta models, the secret is we are compounding, zero cost etf-like product, competing against these marked indexes, you have to compound the cost equation. and when you go back to active management, those costs are pretty extensive. >> on the etf side, bigger, on the mutual fund side bigger, the hedge fund side, make all the difference. thank you for being here. >> thanks. >> hardeep walia the ce to. of motif. less than 30 minutes before the close. >> the dow -- put it up on the screen. i'm sitting at the exchange, i will tread off the wall. the dow is up 27 points. we are relatively flat on the other two major indices as you can see. >> here we go again, crude, prices are sliding below $75 a barrel now to hit a four-year low. we will go live to the oils for a check of what's dragging prices down here. dream works animation

surging on news that now it's in talks to be bought by hasbro. hasbro is sinking. we will speak with the pros about whether the deal makes sense for the toymaker. eson: 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. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it,

you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com this guy could take down your entire company.h? stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business.

welcome back. the dow up 45 points energy record territory, have to close above 17614. from tuesday. >> tuesday. >> that would be thes i. aka, tuesday. at 43 points again, the s & p since slightly weaker has to close higher to notch a record high for the broad index and the nasdaq adding a couple points for its part. we have 23 minutes still to trade. and you can see the dream works is higher on the session overall, soaring on news that it's being courted at least now by hasbro. hasbro shares heading the other direction. morgan brennan has that story that had the street buzzing all day. morgan? >> hi, simon. hasbro in talks to buy dream works animation in cash and stock, price not yet decided. hasbro's already been expanding the media footprint with blockbusters like the transformers and g.i. joe franchises and analysts note that toys tied to content outperform those that aren't. so the toymaker, which has g.i. joe, transformers and my little

pony is looking to bring movie production in-house, basically, replacing expensive licensing deal he is and giving the company more control over video content. but investors like hasbro and competitor mattel for their clash flow and their stability. acquiring a movie studio would fundamentally change the business model and the risks associated with the stock that's one reason hasbro shares are down 4% today. and you down for mattel as well. dream works on the other hand is up 11%, 11 1/2% and that's because despite "shrek" and "how to train your dragon" the studio has failed to successfully create franchise. talks with soft bank fell through a month ago. talks here could still fall through. but this sheds a light on the increasing interconnectiveness of these two industries, toys and content. guys, back to you. >> all right, morgan, thank you. we are going to explore whether this is the right deal for hasbro, first a news flash back

at headquarters with dominic chu. >> a very big deal if it does happen, breaking news, baker hughes shares, oil field services, baker hughes shares are halted, dow jones out with a report citing sources that haliburton could be in talks to buy baker hughes and what would combine two of the biggest players in the oil field services business. haliburton's currently a market cap of around $43 billion. baker hughes, about half that size. but if it does happen, this could be a mega, megadeal in the oil field services business. again, dow jones reports citing sources saying this hall burton is in talks to buy baker hughes. bring you more details as they become available to us here, hall burnt shares, you can see there, moving to the upside, baker hughes, kelly, sighen mo, halled for trading now. back to you. >> do come back on the show if you have further news. dom chu with that breaking news of haliburton and baker hughes. let's go back to hasbro. the question whether this potential deal with dream works is the right deal for hasbro. >> yes, indeed. we have the pros ready to brawl

it out. james, why so bearish? >> i am very bearish, and there's a reason. we have to talk about why it was investors like hasbro before this announcement to understand why they don't like it now and it's because they had very stable earning, revenue growth above the industry average and extremely high profit margins. introducing a business like the one that dwa conducts can bring a lot of volatility to their earnings and we saw stock trading off the 52-week highs before this announcement, a big leg lower today, breaking key support levels because investors

not happy about the possibility of that volatility in earnings. >> why do you like this? nch>> long term, the deal would have a positive impact on the margins. [ inaudible ] [ inaudible ] >> why, tuna, do you not agree with james? undmental afundamentally, he makes a good point there. >> [ inaudible ]

>> tuna and james, leave it right there tuna moby from standard and poor's and james ram melly. we want to draw your attention to what's happening on the floor right now, post six, baker hughes trading, probably heard some of the noise as we were doing that prior segment, there is a potential tie-up here between hall burton and baker hughes two huge players in the oil services space. still waiting to get those shares to reopen. >> yeah, the growths that we see trying to matches -- just changing, 57 to 60, so, trying to match orders at 57 to 60. you can see, i think we lost trading at 5313 from what i seen

the chart there >> talk about the count in this country dropping on the back of the oil price declines that we have seen. again, some opportunistic moves in the space that has seen significant declines in oil price and simon triggering more of these kinds of deals, we will keep an eye, as soon as we do get that reopened here, the range still 57 to 60 as we keep a eye on post six just behind us here at post nine. >> indeed, already seen -- i think we are about to open now, already seen this sort of [ inaudible ] drove the prices down. current quote, trying to match 57.60. >> activity remind people what typically happens on the floor here during a public offering, you get the range, tough wait for it to open, again, simon, people often talk about the floor of the new york stock exchange and what happens here. this is a little bit of a window into why these guys are here trying to figure out where to

reopen this stock. >> yes. times of crisis or heavy volume, they come into their own, saw that most notably with alibaba, which was -- they were able to match a phenomenal movement in trades, unlike the force folks, nasdaq faced. >> by way of background here this is the "wall street journal" reporting hall burton is in talks to buy baker hughes, citing people familiar with the matter, saying talks with moving quickly. the price discussed couldn't be learn but likely come at a premium to houston, baker hughes houston company market cap, 21.6 billion as of thursday compared to hall burt.'sroughly 45 billion it would be one of the largest energy deals in years. wither gonna take a quick break, come back with hopeful think open. we have got about 15 minutes to go here, down on the floor of the exchange. >> also ahead, what in the world sent crude oil to a four-year low is the basis for all this. jackie deangeles will give us answers next. they challenge us. they take us to worlds full of heroes and titans.

for respawn, building the best interactive entertainment begins with the cloud. this is "titanfall," the first multi-player game built and run on microsoft azure. empowering gamers around the world to interact in ways they never thought possible. this cloud turns data into excitement. this is the microsoft cloud. [annit's working forny. new york state.

already 41 companies are investing almost $80 million dollars, and creating 1750 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, and no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that is is right for your business. see if startup-ny can work for you. go to startup.ny.gov. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today.

just tuning in, hall burton is in talks to potentially acquire baker hughes. those negotiations are moving quite rapiddy.

the figures you can see there are $58 to $63 a share.

as we have been talking about all hour, crude oil price s especially into the close. >> jackie at the nymex. keep us up to date, if you would. >> good afternoon, guys, saw a near $3 drop today, four-year lows for wti, finishing at 74.21. three reasons for the selling here, let me recap for you, reports that mexico state-owned petroleum company bought put onnings in september and november to hedge oil prices at 76.40 a barrel. traders think that that is an indication these prices could go lower. also, eia data showing that u.s. production of crude was over 9 million barrels a day for the first time since 1986, very

significant. the third reason, opec not making any moves or any signs that it will cut production in its november meeting. the markets are looking at all these factors and saying oil is probably going lower from here. back to you. >> interesting. maybe not the oil services stocks in the wake of the breaking news. jackie thank you. up next, the closing countdown. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... 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. start building your confident retirement today. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets

and drive forward with broader possibilities. cme group: how the world advances.

the big news was the deal potentially, "the wall street journal" reporting between haliburton and baker hughes, shares reopened in time to close basically, closed just shy of that $59 mark. get to it with today's panel. herb greenberg is here. so is lee gallagher from fortune magazine and john najarian. dragged him into this, brian kelly joins the fray now as well. welcome one and all. herb, we are saying this deal came out of nowhere. >> out of left field. >> when you see something like this, you may, my goodness, everyone wants to know immediately, what happens next? who's next, if this one doesn't get challenged, even if it gets challenged, you have reignited, perhaps hysterical about the drop in oil prices, it has been an astonishing move since the summer here. we saw big pressure on those su

burnt deal potential. what happens now to the names across the space? >> there are so many people from noble energy. there are so many that have the potential. dry as well as deep-water rigs. what are you going to go for and shale plays? this can be a dramatic turn here financials that give the market a leg up. energy such a large component in the s & p 500. >> what is your perspective? >> i would look at the shale story, surprising stories of the past decade. i would keep an eye there, this

is just so -- sitting here today, sudden uproar, this never happens, a while since it has been a big deal in the energy sector. >> the guys on the floor staying feels like the good old days, others, like not quite. >> look at the oih. >> baker hughes, no unusual activity did i see ahead of this at all. noble energy and popping up and broadly, herb, to your point, folks betting on, well, 75 for crude oil, dos that mean 70s next and if so, which of the uso are going to react to that? >> let me ask brian kelly about this. this is the very point i find kind of fascinating now, with the speed and declaim of oil prices that we have seen, if i'm haliburton or somebody bidding on another name, why not wait a

little bit and see if you can catch more value. >> i'm not sure with this size you can wait somebody out, the smaller oil service companies, maybe some of the smaller even b companies, you can wait them out, maybe they get distressed, what i think is mentioned oih or etfs, anticipating some fundamental event here as oil has hit new lows, these etfs have not. there is an intrinsic value of stocks and interesting to see the difference between trading oil and hitting new lows and the stocks really not respond ing r this. >> we got into this last hour, questioning whether there is antitrust, any anti-trust here when you combine a company with a 45 billion and now probably 30-plus billion market cap in this space? >> boy, there are a lot of really wounded stocks in this

space, too. i saw a lot of stock that have come down so substantially here, you understand why, people have cut back on exploration as prices dropped, a natural thing, not a big surprise, now if you get some consolidation, again, one of those things that you'd expect when you've got the big selloffs that these stocks have had that the ones with the stronger balance sheets look at the weaker ones and say, you know what that fits nicely, in the case of this one, the international exposure here, i think it does fit very nicely, baker does. >> assuming, i haven't read any of the details on the deal, but assuming that baker hughes is saying this is a good deal, others not as friendly, start getting the aspect of the situation. >> and how many people, herb, really want to jump on a deal? granted the stock popped 20% on this news, just like that. how many people want to sell 20% off of a multiyear low?

in other words, this isn't a stock that at the highs, i believe baker was up over 74 this year. something like that. this deal car trying to 60, not exactly telling people we are long from 60 to 74, i'm not getting rewarded, not that everybody gets what they want, but usually, deals are somewhere in the 30, 35% premium, no the in the 15 to 20% premium, so i think there's a lot more room to the upside. >> also interesting that we can back out of this for a second, but the margins for baker hughes are weaker as i understand relative to a haliburton so again, there's -- you know, there -- there is a reason why they were trading where they were and yet perhaps it was too attractive to be passed up or maybe son sol days the name of the game across this space, i wonder, lee, going back to the issue, to the impact broadly, the production boom is having on this country, what happens now on the other side of this as prices are beginning now to decline in >> i don't know. that's the huge question you have already seen that start to impact, well, today, walmart,

airlines and consumers, it's great for son summers. there is this glut of natural gas supply, affected the industry, a big reason why the shares were depressed. >> we have our kate kelly joining us, knowing a thing or two about commodities, kate, what did you think when you heard this news? >> well, no, it's remark.and right on point with the theme i was gonna talk about, which is kind of what happens when we get to $60 per barrel oil, but it doesn't show any sign, the market that is of reliving the downward pressure on the come mod youity, not until we get production under control, the companies have to figure out what to do to adapt, probably very tempted to cut cap x, the other hand, already invested in infrastructure, keep the oil coming out of the ground, obviously, mergers and consolidations are going to be ways to cope with a lower price environment. the problem is we just don't have a sense of how long it's gonna last. nobody does, of course, harold ham calling the bottom in oil

last week, i was just in houston, i spent most of this week in houston, people there were saying no wake it's going to be another two to three years at these levels and all have to get ready for the new reality. >> right. right. >> kate, it's just fascinating, brought up harold ham, basically saying i'm all in, i think prices are going back to 85 to 90. i guess the question is even if that happen, might they go as low as $60 first and if they do, what happens? >> well, absolutely, and the reason deutsche bank report is stirring up concern today that prices that low in the domestic market could push a whole segment of companies into default, a stress test by analyst there is indicates for the country's highly levered producers, the high-yield segment, $60 oil could push the whole sector into distress, they say, implying a 30% default rate for the whole segment. to quote the report, a shock of that magnitude could be sufficient to trigger a broader high-yield market default cycle and, you know, that could be tough times ahead. of course the investment-grade sector is another story, but the report goes on to note that they

would very likely be affected, too, kelly, do you have to feel some echo of 2007, albeit in a different sector of the committee, leverage was an issue. >> that agencies actually it. would you draw any parallels, kate, we posed this question last hour, almost unanimously, people said don't even go there, this is not like the housing bubble, what would you say? >> i would say having written a book as you generously noted on commodity trading that captures the 2008 people, not have the move higher in prices that mortgages had in that run up to 2007 and '8. far from it the price of most commodities, oil included, peaked in 2008 and july, to be specific, literally, 147 to $40 by that december, which was an astonishing move and obviously, way higher than we were then. we have seen a lot of volatility, i think there's a telling in the u.s. that we are in the new normal in this sort of '70s dollar range, may go lower than that, but again, not going to see real price growth for a couple of years to come

and of course, the overseas market, the real question, what is going to happen with opec production, going into thanksgiving day. >> that's the point as well. i'm just curious, john, we talk about the potential, again, just the potential, but deutsch and others are exploring it, we should as well, for 60 oil, do you think that's priced into some of the names here? >> >> i think some of that fear is priced in, but $60 oil, unless talking $69 oil is $15 away from where we are. that's big drop, to price in a $15. so, none of us are pricing in $15 drop. could you be thinking about it if you were a bear, talking it up to get it to that level? yeah.

growth isn't as strong as it is going to be. add into that a strong dollar, certainly does not have helpmy of the commodities, coupled with all that, not very clear, but listen, $60 oil i don't think is a problem whatsoever. you can get there very easily, especially if the u.s. dollar goes by 90, impressive ter over it. >> hold that thought. the silver lining, supposed to be what it means for the u.s. consumer, the u.s. economy still powering the world this year, approaching the holiday season. nordstrom earnings, are we ready for that yet? >> we are ready, kelly. if you're ready, i'm ready.

hi there, kelly. we have a beat from in order drop, the top and bottom line. the company reporting earnings per share of 73 cents, beating wall street estimate buys two cents, revenue 3.14 billion, a beat same store sales for the third quarter. however, nordstrom did lower the full year eps to 3.70 to 3.75 previous guidance of 3.80 to 390. wall street at 386. below their guidance and below wall street consensus for the full year eps, margin in line, sga slightly higher, back to you. >> thank you very much. we are going to take a quick break, our appreciation to everybody for joining us to catch up on the news this hour, brian kelly, kate kelly as well, we will stay here, haliburton reportedly in those talks to acquire baker hughes, latest developments on the late-breaking story next, the

house and the senate set to vote on improving the keystone pipelinesome that about what's right for america and its economy or playing politics and that senate rate in will a l.a. coming up. we want to know what you think the motive for the vote is. weigh in now, cnbc.com/vote. we are back in two.

begin with dominic chu and haliburton acquiring baker hughes. it was just before the "closing bell" happened we got news from the dow jones headlines with regard to a possible deal between haliburton and baker hughes, look for the ripple affects, this has been getting a lot of attention as well, you take a look first at baker hughes, we know it closed up by 17, 18%, depending now on how the afterhours trade is working out. this is a company that was worth about $21 billion before this news came out and now worth about 25.5 billion. traders are trying to handicap what it is worth. look at hall burnt, reacted positively on this bit of news here as well, the two companies,

central focus point of investorses for right now, look beyond that to other competitors, peer group, oil field services, by far, the biggest player in this business is shum berger, those shares worth about 119 billion. it's by far a huge deal. those shares are lower, in the regular session, remember, these two companies combined, talking about a combination of two of the top five oil field services companies, they would not be as big as shah lumburger, but formidable force. shares down on the day. look at weatherford, $11 billion company, a smaller oil field services company that is now up higher and it did close higher on speculation that there could be other dells with an oil field services, different names to keep an eyen oetf and sect certainly one that people will watch tomorrow on the heels of

what's happening with all these companies today. back to you guys. >> that's for sure, dom. thank you for now. with us, more on the cnbc news line, ben schumann from drexel hamilton. great to hear from you. is this deal gonna happen? >> thanks for having me. i think the deal will happen. ing that's been speculated quite a bit. the past few year deals, the biggest deal since 2010 for around 11 billion. i think it will happen. >> what is the incentive here for haliburton, mentioned, baker hughes the weaker link, could be diluted to margins, perhaps to earnings, what's this all about? >> i think at least partially, maybe two things, one, this business is about scale, you guys mentioned that shah lumb g lumburger will be bigger, in terms of market cap n revenue this could be 30% larger than shah lum burger, base olden my

math here. second, opportunistically taking advantage of evaluations, since oil prices started to decline in late june, seen the stocks come way down, baker hughes around 70 bucks over the summer. natural gas popped up to 4 and change, 420 for a million btu, now folks will focus in on that

and one thing you don't have to worry about with the import from saudi and so forth that they can flood the market with crude oil. they can't flood the market with nat gas because even in an lng fashion, not enough to transport to dump it as saudi has done with crude oil. >> i want to go back to one thing here, people start talking about consolidation in the space, because that's immediately what they want to do on wall street whenever there's a deal, there something they should know? is it easy as that with the baker hughes deal for the others in the space or is -- are there some things that could block further consolidation certainly quickly, the way people would tend to expect or trade? >> i think baker and haliburton are fairly complementary, just in terms of end-market exposure and culture. i think the next one folks are going to be looking sat weather today because that is the next largest player in the space. >> is it a willing participant? is it a willing participant? >> i'm not sure anywhere close

to current valuation. and b, the company had a lot of execution issues, it isn't as clean of a tuck-in story as this one is. i think people will look there, but they are there are probably some complexities be overlooked in the near term while looking there. >> ben what would you assign, the percentage likelihood that oil goes 60 dollars next and what would that mean for your space? >> geez, i think, look, i think fairly low likelihood. tough to tell at this point. if it got to 60, i think that's point where a lot of folks are looking at the north american market really slowing down. the international energy agency has said that a large portion of the shale -- the shale oil becomes uneconomical at that level.

>> haliburton sees that. basically calling a bottom to oil prices, no? >> not the near-term bottom but the long view, absolutely. i think haliburton recognizes that marginal barrels of oil are becoming more expensive, i think you guys mentioned, you look at natural gas, the long-term outlook there, considering lng experts and transportation and everything else, electricity generation, coal plant retirement, i think both oil and natural gas, there's a case to be made for a long-term view and this is obviously a major strategic move here. it makes sense. >> good point. ben, thank you so much for calling in this afternoon on this moving story. appreciate it. that's ben sherman, drexel hamilton. we have a somewhat related news alert now on the divorce case with our sue herera. kelly, you know, a messy divorce case from the begin, not only remaining mess but may get a little bit more expensive. the ex-wife of the u.s. oil baron, harold hamm, is going to appeal her $1 billion divorce

settlement. she feels that it is not equitiable. she says that basically after their 26 years of marriage the continental resources shares of stock that mr. hamm owns has increased exponentially and the award she is getting which once again about $1 billion, is just a small fraction of the net worth and as a result of that, it gets interesting because if you own shares of the stock, you should know that although it is a $1 billion divorce settlement, mr. hamm has to come up with $322 million by december 31st. he has placed a lean on 20 million shares of continental stock, his stock, in order to secure that $322 million. and there's been a lot of speculation as to how he would raise the rest of the cash, people point out that's extremely wealthy, obviously, he could just liquidate some stock, would that put pressure on the stock as a result of that? getting a little bit more

complicated, but again, sue ann hamm is appealing a $1 billion divorce award saying it is inequitable. to be continued, kelly, needless to say. >> that's for sure, sue, thank you very much for the update this hour. and related, two keystone pipeline bills coming to a vote in congress and a senate election in louisiana may be at the center of it allsome this good for america's economy or just good for politics? a special report from washington is next. later, it's the edible selfie, james is bringing his food tech startup to the u.s. allowing americans to turn their favorite photos into marshmallowsome this just a gimmick or a real business here? james middleton joins us later on the "closing bell." she inspires you.

no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours.

if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. for tapping into a wealth of experience... for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more.

welcome back. get to dominic chu for a quick earnings alert. >> this time what happened with applied materials, moving terror 3% after the hours trade, company's fourth quarter earnings and sales matched wall street forecast, first quarter earnings guidance was just a bit shy of some estimates here, the stock down about 3%, you can see there, trading lower in the after hours session, again, applied materials stock, this is seen as a leading indicator by many in the tech business because they make the equipment, kelly that makes semiconductors. back to you. >> all right, thank you. the senate runoff race in louisiana could end up being about the keystone pipeline and democrats and republicans are doing their best to ensure their candidate gets credit for the

pipeline's approval. eamon javers has the latest from washington. >> they are calling this one the hail mary landrieu pass play, what is going on here, we saw this election result last week and now this week, democrats giving mary landrieu as to bring the pipeline to the senate floor because the keystone pipeline is popular in louisiana and mary landrieu is facing a runoff there, very tough runoff against her republican house opponent, so, on the senate floor, now scheduled for a vote on tuesday on the keystone pipeline, stuck in the congress a long time, mary lan drawen at floor doing the best she can to push this forward and take political credit, good for her back home into that runoff. listen to mary landrieu this afternoon. >> i am grateful that i was able yesterday in three hours to move the leadership of the democrats in the senate, the leadership of the republicans in the senate

the republican leadership in the house to get a vote on keystone on tuesday. that vote happening on tuesday but in the house, the republicans were in charge over there saw this play in the makings and decided to go first, having the vote tomorrow. that will be sponsored by bill cassidy, mary landrieu's opponent in that runoff in december. republicans will go first here and hopefully on their side, be able to give their guy political credit in louisiana going into the weekend. all is about that last remaining senate seat to be decided, again, as i say, in december. a lot of politics here at play but might see movement on the keystone pipeline issue which has been stuck here in washington for some time. will the president sign it once it passes the house and senate? >> the looming question, chuckling, our cynical audience sniffed out the politics involved, 76% in our poll now. >> that cynical?

>> cynical or just -- >> dr. realist, called him dr. doom. thank you for now. get more on this now with both sides taking action on the keystone pipeline after months of inactivity, motive behind the congressional votes is questionable. tell us if you think this is good for hemselves or the good of country. maybe themselves. ask the question of james and ari. welcome back to you both. >> it is good for the economy, create jobs, not create 10 million jobs but create jobs. not hurt the environment that is a win. the democrats with ant to save the seat that is tough. get that senate back in 2017, a lot easier if they don't lose this louisiana seat this year.

do what they can to save the seat almost the president sign it? if he doesn't have a reservoir of goodwill with environmental environmentalists on the left after the u.s. china deal. i think he will sign it. >> fair point. interesting to think about that reservoir. >> too little, too late is perfect. last guest talking about the economic vie bit of a shale oil, oil trading close to $78 a barrel, shale oil costs $85 to get out of the ground so you're talking about economically inviable oil and frankly, talking about politically inviable candidate in louisiana. look this isn't going to help mary landrieu.

never stood understand giving land to canadian company export oil overseas and according to bloomberg's reporting, raise oil flies the midwest. i don't get it. >> james? >> i like the idea of 40,000 construction jobs shall not 4 million. not going to change the entire direction of the economy, help the economy, nice moment of kind of bipartisanship, i hope this isn't the last deal we see coming out of congress. as far as the politics go, both sides think they can help their candidate. mitt cal motivation to do something, economic benefit, a win/win. >> he makes a case, ary. >> he makes a case, a diminimus number of permanent jobs. >> 40,000 blue collar good jobs. [ overlapping speakers ]

>> 40,000 blue collar, talking middle class wage stagnation, 40,000 blue collar good jobs your guys can make a good paycheck, not going to dismiss those [ overlapping speakers ] [ overlapping speakers [ overlapping speakers ]

[ overlapping speakers ] . >> it does nothing for our economy, any long term or real sense. bipartisanship for the sake of nothing is nothing, it is just a silly politiclight gambit that work for mary andrew, senate democrats and a total wash. >> we have to go james, do you think because of all the attention this has received that even if it is approved an even

if the president does sign it, that it will do that much to help mary landrieu? again, i often think when the headline's out there saying, well if this happen it is will help x that somehow becomes part of the psyche and doesn't necessarily deliver the goods? >> it's already sort of built into the price. out of an unpredictable election year. i won't say she can't win. >> i will say she can't win. >> i hope the dnc doesn't hear that. >> gonna leave it there, thank you both. keeping an eye on the poll, didn't move much, 72% of people think keystone pipeline for the good of the politicians themselves. are finally over,e elecs it's time to get to work fixing our long-term national debt

to help build a stronger economy. with a solid fiscal foundation, we can create more jobs, invest more in innovation and infrastructure, and make america more competitive, giving our kids a better future. a bipartisan solution to our long-term debt means more growth today, more opportunity tomorrow. and the time to start is now. [annit's working forny. new york state. already 41 companies are investing almost $80 million dollars, and creating 1750 jobs.

from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, and no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that is is right for your business. see if startup-ny can work for you. go to startup.ny.gov. i'm just looking over the company bills.up? is that what we pay for internet? yup. dsl is about 90 bucks a month.

that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business.

today, hubs up 4% on positive third quart other results. with us in an exclusive in the vary to you talk about that, hub spot ceo, brian hall began. good to see you. >> good to see you, kelly. >> applied materials report, a miss there chip space. what can you tell us about trends attack as you see them there? >> i don't see any headwinds. the economy feels good to us. our business, we help companies grow. we see a lot of the growth going on it is good. >> we have 12,500 customers now and 51% growth year-over-year. it is mostly small, medium sized businesses investing in a new type of marketing. >> this is herb greenberg. the newly public company, ask

the ceo this one question, why in the world are you giving guidance, forward guidance? you shall setting yourself up? do you not know that? >> yeah lot of discussion in the four walls of hub spot, q four guidance as opposed to giving 2015 guidance, only looking a quarter ahead, not years and years ahead, we feel fine about that. >> the herb seal of approval. >> basically telling us he knows what he is gonna do. in the future, my tip tour keep the guidance down. >> you can't encourage this game. >> you want the guidance, the guidance is the game. let the analysts do the work the way going.and other tech companies do it, then he doesn't sit there and have egg on his face, he doesn't get there the stock gets clobbered, damaged goods, does he really need that? >> lee what say you? >> i have a question a little out of left field and that is you wrote a back not too long

ago about marketing secrets that are from the grateful dead. i was wondering can you give us another one and if you had to write another one, ipo secrets from the grateful dead, what would you take there? >> okay. actually, kelly asked me that the last time i was on. the grateful dead did something brilliant when it comes to marketing, they gave away their content. and so knuckleheads like me would go to their shows and record the shows and go back to our dorm rooms, copy of the shows, play them at frat parties and whatnot, the way they spread the word about their music and used content to spread the word, the way i think marketers need to do it now, create content, blog content, e-book, webinars, videos, things like that and use their content and thought leadership to pull customers in. a lot to learn about marketing from the grateful dead. >> totally the opposite what we are seeing in the music space today by the way, where it is not content first it is sort of the whole content first snapster

share file with buddy kind of thing was their biggest foe not friend. companies are spending tremendous amounts of money advertizing on tv, the video, buying lists and trying to interrupt their way into people's lives and renting space on your tv show, on radio shows, on newsletters, on google. what i encourage people to do instead of renting space on google, renting space on your tv show, renting space, is create your own video roo show, a podcast, create your own news youtube, own newsletter and newspaper.

if you are in the it security space or in the video connection space, like it video cast, there's only four or five people you have to compete with and just have to create better content than them. you create good content, loo i can a magnet that pulls customers n >> i can't believe herb is asking the question. why you are shares are up, brian hall began, on that earnings result. congratulations. thank you again for being hereful. great to see you again. britain hall began is the ceo of hub spot. first, it was post offices, next could be local bank branches, so far they are i don't, some 2600 local bank branchs have been closed. as technology continues to make inroads and personal bank banking, a trend not abating any time soon and a story on fire on

cnbc.com, up next, see if it made the hot list and still to come, marshmallows getting the royal treatment from the brother of the duchess of cambridge, kate middleton. tell you about his sweet new business venture just ahead. stay tuned. 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. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation,

over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today. so i can reach ally bank 24/7, but there are24/7branches? it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. your local bank branch is it going the way of the horse and buggy?

alan is here with more. >> a lot of people worried about the bank story, put together by jeff cox for us. 1500, another 1500 closing this year, and just going down and down and down. you mentioned ebanking one reason, a lot of m & a in the industry and consolidation. that is one getting a lot of attention. another one, keystone pipeline, just finished talking about not too long ago, one cited economic of the keystone, prices going down, becoming questionable that one getting a lot of traction. and the third one, my favorite, mark cuban, started another little twitter firestorm today, tweeting out that net neutrality is right out of ayn rand. his point. you know what, just causing a whole lot of -- amazing people out there don't understand ayn rand and don't understand -- never read "atlas shrugged" and don't understand net neutrality either. fun to read. >> thank you very much. we have our homework assignment.

also back at headquarter, the words college loans at one time were seen as a salvation for a generation. whether or not that's still the case, we will have more when we come right back here on "the closing bell." matenance 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. ♪ for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

[annit's working forny. new york state. already 41 companies are investing almost $80 million dollars, and creating 1750 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, and no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that is is right for your business. see if startup-ny can work for you. go to startup.ny.gov.

i'm just looking over the company bills.up? is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business. may be on the brink of a

student loan bursting but there's glimmers of hope. >> reporter: hi, kelly pup got to look hard for the glimmers of hope. two reports. one from the college board. the other from an outfit called the institute for college access and success. first the bad news. we still have a crisis on our hands. more than two-thirds of college graduates in class of 2013 came out of school with debt. that debt averaging $28,400 and in six states the average debt tops $30,000 for the first time. >> the fact that six states have crossed the $30,000 line is just an indication that not only is borrowing becoming more common more people are borrowing more. >> reporter: now the good news or maybe we should say the less worse news. tuition is still going up more than overall inflation but that

2.9% to 3.7% range is a much lower rate of increase you've seen in the past and first time we've seen in-state tuition go below 3% increase since the '70s. average debt is up but only 2%. and overall borrowing is actually down 8% but a lot of that may have to do with the fact that economy sim proving so fewer people are in school and for those in school, that doesn't help. like this college freshman who is already $7,000 in debt. >> it stresses me out because it's like i came here to get an education and i'm like already in debt and i'm first year so it's kind of stressful. >> reporter: one more bit of glimmer of hope and that is that the job market for college grads is improving much more so than people without a college education. the experts still say, kelly, a college graduation is a good investment. >> scott, that's somewhat

reassuring with today's unemployment situation. thank you so much out of california. we have a news alert. a 4-year-old coal mining strategy with tyler mathisen. >> reporter: federal grand jury has indicted the former ceo of massy energy on thursday on charges that includes conspiracy to violate federal mine safety and health standards, conspiracy to impede federal mine safety, making false statements to the fec. this arose basically out of that tragedy that killed some 29 people in 2010 at the big branch mine in west virginia. so the former ceo, an outspoken player in the coal business, don blankenship indicted this afternoon. >> straight hide the marshmallow man is coming. brother of duchess of cambridge

and mixing memories and mar marshmallows. we'll tell you what that's all about when we come back. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are, tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 call 1-877-670-3357.

tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 your go-to for trading know-how. for tapping into a wealth of experience... for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more.

marshmallow tech never looked better. it's taking personalizing

marshmallows. the founder is duchess kate middleton's brother. welcome. so good to have you here. was this an accidental business. >> no. this was sort of a brain child of confectionary technology and boomf is what we came up with. >> gin involved >> no. mixing of different component, sugars and we ended up with them. >> has gweneth paltrow put it on her newsletter. look at that. those are our faces. well played. >> actually, you just gave is the whole essence behind the company. >> i just ordered a personalized

cell phone case. people really want this notion you can personalize anything. you can really kind of take any image you want and put it on things you wouldn't think. >> which could be an ordinary box of marshmallows and taking something unique to you and special to you. >> up don't want to eat them. >> that's not the issue. they will get out of date. you have a short window. >> what's the pricing on these things. marshmallow is a commodity. you made a commodity a noncommodity. how much does a box cost? >> $25. >> you have it personalized and free shipping anywhere in the world. that's the other thing. instagram, facebook is a global, worldwide so we want to share those photographs and memories anywhere. >> go ahead. >> no, please. >> no, no, the printing. how do you do the printing. it's funny you could have 3-d printed this entire thing.

>> almost. i spent a long time in foods, in the bakery industry and developed these printers over time, and it is conventional inject technology but with special food. >> you're not making the marshmallows you're just doing the printing. >> we outgrew ourselves so we used to make the marshmallos. >> you're here because this is the u.s. launch. how fast are you growing? >> well, in terms within our first year we turned over between $1 and $2 million. for first year start up in the tech world as well, we are one

in ten tech companies tend to fail in the first year. >> so you guys made it. >> we have to go. >> advice don't give guidance. >> and are you going to come back on the trip next month kate and the prince? >> it's news to me they were coming. i don't know their schedule. >> james middleton, we're so glad you're here. time for "fast money". over to melissa. >> i'll take it as a compliment. this is "fast money". i'm melissa lee. twitter just wrecked. one day after analysts say the details ahead of the massive fallout. sun power sending the sector lower. we talk to the ceo of sun power first later on. first to our top story. oil pric