>> it's a difficult question. do you disagree with the pope on this issue? >> no, i don't, as a matter of fact. i think the issue of climate change is real, i think it's something we need to pay attention to. we are paying attention to it in a variety of other ways. the abby, the ben dig stein abby at st. gregory's a making changes, we're making changes in our energy use. so i think it's something that we all need to pay attention to. >> all right. thank you very much for joining us. have a good weekend, sir. >> thank you. >> have a good weekend. "closing bell" starts right now. hi, everybody, and welcome to the "closing bell." i'm kelly evans. here is the new york stock exchange. >> i'm bill griffeth. what a busy news day. just as the opening bell was ringing here at the new york stock exchange this morning we had a shakeup in washington. house speaker john boehner announcing that he will resign

his position and leave congress at the end of the month -- end of next month. are concerns over a government shutdown over or not? we have reaction coming up from mark sanford, former south carolina governor, now he is a congressman from there, and a member of this freedom caucus that was founded earlier this year that is largely thought could have been a huge thorn in speaker boehner's side and responsible for his resignation this morning. we will hear from representative sanford shortly here. >> meantime what a day it's been in markets. the dow losing its early gains, still in the green. up 80 points at the moment. take a look at nike, still trounlsed earnings expectations, it's up 9% today after that report last night. we skulls it had here on the "closing bell." guess where some of its strongest sales came from, china. we will talk about other companies that could also see china this earning season. >> then there are the biotechs

therks seem to be what's dragging the rest of the market lower, nasdaq especially, s&p in negative territory and the ibb, the biotech exchange rated fund is now in bear market territory, it's down 5 1/3% today, that's it's worst one day decline since april of 2013. >> it's the story of the day arguably. also the new iphone is out and john ford is bringing his back here to the new york stock exchange to tell us if the it is worth the money. >> john boehner announcing he will reline at the end of october. eamon javers has the latest now. >> tensions have been building for months but nobody saw this dhomg morning. john boehner saying today that he went to sleep last night after visiting with the pope here in washington, he woke up this morning, he said his prayers and decided today was the day to announce his resignation. here is how he put it in a news

conference earlier this afternoon. >> it's become clear to me that this prolonged leadership turmoil would do irreparable harm to the institution. so this morning i informed my colleagues that i would sign from the speakership and resign from congress at the end of october. >> in the short term, kelly, it looks like this means good news for those who are worried about a government shutdown next week, it looks like boehner will now have the political freedom to make a deal with the president and democrats to keep the government open next week. the question is what happens after that. short term continuing resolution could keep the government open until december, at that point there will be new republican leadership, possibly kevin mccarthy, the current number two in the house of representatives, possibly someone else. whoever that leader is going to be under enormous pressure from conservatives not to cut any kind of deal with the president or with democrats. that's the frustration that led to boehner's ouster.

how they navigate that is going to be a very fraught question. >> joining us for his take on what unfolds next is congressman mark sanford from south carolina who voted back in january for boehner's return to the speakership but he is also a member of the freedom caucus which we understand helped to you push him out. congressman, did you back the speaker staying in his role or would you like to see somebody else now take the position? >> you know, i was a supporter of john boehner's. he has been incredibly kind to me since i returned to congress about two and a half years ago and i'm personally indebted for those kindnesses. that having been said this issue that was brewing and i think one that will frankly continue to brew is much bigger than john boehner. it was really about the complexion of the house and how it moves forward giving this spending conundrum that we have coming our way. you have a perfect storm in financial terms if you look at the debt ceiling, if you look at

the sequester i wish urks you look at the highway bill and look at some kind of short term fund nothing there, there's just a lot of squeeze right now with regard to how do we go forward and manage our nation's finances in a prudent way going forward. >> there have been some people that have left the house freedom caucus to protest basically the approach this group is taking and perhaps what happens next for those key events. why have you not done so? >> i have not done so because, again, i think we all as republicans agree on the larger strategy of limiting government. there has been much disagreement on the tactics by which we get here. what jim gordon and others have asked for is reasonable is that we go back to a thing called regular order. that's been the piece of the pie that's been missing of how do we go back to those yearly debates of each one of the different appropriation bills so that we have the vetting is that has has been largely absent over the past ten years as one body has

been held by the democrats and the other body held by the republicans. >> the two issues that wall street is most concerned about right now, the fate of the export/import bank and the possibility of a government shutdown. regarding the shutdown, we're guessing we get a resolution next week a short term resolution that's going to keep the goflt open at least through the end of this year but then it starts all over again. is the freedom caucus willing to allow the government to shut down in december or whenever if you don't get a bill that dee funds planned parenthood? >> bill, i wouldn't presume to speak for the freedom caucus as a caucus, we will take a vote and see what comes. >> would you be willing to allow a government shutdown if that doesn't happen? >> i think you have to see what's before us. it truly is going to be a huge financial hurricane, if you will, a perfect storm, if you will, of bad things for the taxpayer and ultimately, therefore, bad things for the stock market when you look at,

again, sequester, highway bills, debt ceiling all coming together. as part of that much, much, much bigger package, how planned parenthood does or doesn't fit in i think it's going to a relatively minor piece of the larger pie. >> let me ask you about the export-import bank. already some companies like general electric are exporting jobs overseas in anticipation that this bill is going to fail, a funding bill for the xm bank. are you in favor of the xm bank or would you allow it to go away? >> i'm wholly philosophically inconsistent. in philosophical terms i'm against an xm bank. i think the idea in a commercial marketplace picking one winner and loser over another is not the role of government. that having been said i represent charleston, south carolina, they make wide body commercial jets? two places in america, one in -- out west in seattle, the other

is in charleston, south carolina. it's very important to boeing, therefore, it's important to me and i said i would support it. >> finally, congressman, before we let you go, just to bring it back to the news of the day, what specifically did conservatives want from john boehner that he did not deliver for them? >> i think he's gotten a bad rap on that front. i think that he has become the symbol of everything that conservatives don't like with regard to the way that things work or don't work in washington, d.c., and in that regard in many ways it's been an unfair rap, but at times politics is the art of perception rather than reality. >> do you favor kevin mccarthy to succeed him or is there a more conservative member of congress who would be fitting the bill for you guys in the freedom caucus? >> freedom caucus is actually going to propose to interview candidates as early as monday when we come back into session and so i think i will be better able to answer that question after we've interviewed a variety of different candidates. >> you are not outright

endorsing kevin mccarthy, then? >> aim not. >> congressman, thank you for joining us. >> pleasure. thank you. >> that's congressman mark sanford. >> let's get to this fading market rally. the dow was up more than 200 points at one time today, now up just 16. in fact, the nasdaq and s&p have turned negative. let's get to our "closing bell" exchange. joining us eric wrist abin. kenny pocari and rick santelli is in chicago as well. kenny p., what about this failed rally? >> it's a failed rally on a couple of reasons. it didn't feel like it had a whole lot of legs this morning. >> was it a janet yellen rally? >> it was an early janet yellen rally but the cell has disappeared, the wait and see how anxious the buyers are going to back. 1950, test it had two or three times and failed and then you're taking the washington news, taking the boehner news, taking the debt crisis news and it gives buyers a reason to go, do

you know what, full stop no reason for me to be aggressive here and they back off so you get exactly what we have gotten. >> eric, just to point out to everybody the dow would be negative if it weren't for nike with a massively strong performance there. what do you do in this environment as we try to weigh all these different cross currents? >> if you look at it from a multi-asset investment perspective, you look at equities relative to bonds and wash, we think over the next year ex wits are going to outperform bonds and cash. the entry point will be hard to time, we will be range bound for a while particularly in light of the fact that we seem to be set up for a real debate about a debt ceiling raise or not in december, plus i think we are expecting a december fed raising of rates if not october. so we really think that volatility will be here but that volatility in our minds in general can s. a good opportunity for equities going forward in a longer horizon.

>> rick, as soon as the boehner news got out at least initially there was a sharp rise in short term yields on the treasury curve. i haven't checked to see if they held, but is there an anticipation that we are more or less likely to get a government shutdown no matter when it is as a result of john boehner stepping aside? >> you know, this week, bill, actually if you go back to thursday's fed meeting, and you look at the closing range of tens, seven basis points closing range the entire stretch from then to today, if you look at the intra day range it's 23 basis points. >> wow. >> so to answer your question directly, there's a lot of volatility that goes on, jim bianco has been sending out -- when you look at intra day players, for example, in the treasury futures, 55% of it happens with a server with two high frequency trading organizations that hardly have any humans in the office. i'm not saying anything wrong is

with any of that but it's an impossible question to answer. everybody wants it to be answered. i think john boehner gave us all the information we need to know when he resigned on tv. here is what he said, if i recall, he said i'm just an ordinary man in an extraordinary job and i think these are extraordinary times and i think he stepped away because they need a more extraordinary man to tackle the issues. >> bringing that back, actually, to what we're going to face now as we enter december, kenny, we have janet yellen who insists the feds are going to raise heights. these are not clouds you necessarily want to be gathering all at once. >> not all at once we leads you back to the same story. is janet yellen going to be able to pull the trigger when there is all this other turmoil that's bubbling up in the surface. so my sense is now that i don't think it's going to happen in 2015 at all, i think it's going to get pushed out, especially

now if we run into the funding problem and the government shutdown problem and the turmoil continuing turmoil in global markets. >> fair enough. thanks for now, everybody. wish we had more time but a lot happening today. eric, kenny and rick. now, that biotech index having one of its most extraordinary reversals in four years, up 1%, down 1% and taking the rest of the market with it. bertha is at the nasdaq with more. >> it has been an extraordinary day. walk the wall with me a little bit. part of the reason that we have seen today it's been biotechs and that drags the small caps down, we are near the lows of the session now but it's really when you take a look at the one week chart that it's kind of a little scary here. we are looking at biotechs having its worst one week decline since back in 20116789 just that alone for one week it's almost in bear market territory. a lot of it really coming from that outrage over the turing pharmaceutical price spike and

talking today with a chief medical officer for one of the insurers he was saying he was surprised this hasn't come sooner. if you take a look at some of the big caps that have been dragging this down, they have had horrible weeks, alnylam is down 14% for the week -- rather, 20% and b r bio marin losing nearly 20% for the week and as one pharmaceutical person -- or one medical officer told me, you know, you've got a lot of big drugs that are coming on the pipeline, he was surprised we didn't get this kind of outrage over pricing sooner. it's going to be something that's going to be on investors' minds moving forward here. back to you. >> thank you very much, bertha, for now. well, here we go. last 45 minutes of trading. anything is responsible. we know that. the dow now up just 38 points, you can thank nike for the move to the green there. the s&p has turned negative and look at the nasdaq, now down

1.5%. largely because of this huge selloff in biotech today. >> meantime, will house speaker john boehner's looming departure make it easier to avoid a government shutdown? jason fur man reacts in an exclusive interview coming up. >> first, though, our john ford has his hands on a brand-new iphone 6s. i'm holding it. he will join us next to explain whether it's worth upgrading to this new device coming up. ♪ [music] defiance is in our bones. new citracal pearls. delicious berries and cream. soft, chewable, calcium plus vitamin d. only from citracal.

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welcome back. it is a tale of three averages today, the dow is in the green thanks largely to nike's performance, the s&p is negative by 8 points and take a look at the nasdaq, it's down by 69 points. 1.5% as biotech has one of its worst weeks of the year. >> apple shares were higher but it has come to the selling in the market today. here now down more than a percent here despite the release of highly anticipated of the iphone 6s. many analysts are expecting this to be a record weekend for iphone sales as a matter of fact. >> but will they live up to all the hype and more importantly is the device worth the upgrade?

our own john fortt got one of his own and he joins us now. >> which line was long, the one to see the pope or iphone s? >> i'm not catholic so i was only in the iphone line and i had a reservation so i was -- >> you were able to walk right in and get this? >> at 8:00 a.m. i wanted to especially see the process for the iphone upgrade program. apple wants you to be able to get a new phone every year. monthly the payments for the phone plus apple care which is $129 are split up. >> it's not rose gold, john. >> no. i'm not a rose gold kind of guy. perhaps -- >> typical silver. so what do you think of it? >> the main feature that's going to determine whether people get that or not is called 3-d touch. i will reach over if i might. >> go ahead. >> so in messages there is an option rather than having to click to and serve for who you want to talk to you have an option to just go ahead right

into where you want to go inside that app. the effective speed and it gives you a click when you hit t artificial but real tactile feedback and my question was will this be intuitive enough? will people find that this is something useful? i talked to a couple people at the store this morning. these are your fans who bet that they would want t they had a reservation and they said, yeah, this exceeds my expectations. this is really cool. the camera is also better so there are a couple of other good features. the processor is going to be faster, but i think people might be underestimating the impact of this 3-d touch. >> and how is the oculus 360 video? wait. we can't do that yet on apple. >> i should hold up this as well, this is samsung's galaxy s 6 edge plus. sells quite well. samsung has this curved screen so you can get icons to appear on the screen, that's their bid to make it easier to do things

faster. you have extra screen to navigate. we will have to see which of these two wins out. >> what about battery life, real quick? >> it's about the same. a little better. about the same. >> we need more improvement. this will be a moon race for the 121st century. >> you need to keep your charging port with you at all times. >> or what is it called the mofie. >> get one of those, too. >> john fortt thank you so much. 40 minutes to go into the close, the dow still up 52 on the back of nike, nasdaq having a horrible session. >> when we come back we will break down the list of companies with the biggest exposure to china and whether that is a good or bad thing for their bottom line. right now nike one one ever those. >> the petro bus schedule continues to worsen. now bill gates is coming after the state owned energy company and we will tell you why up ahead on the "closing bell." at&t and directv are now one.

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nike -- first of all, let me tell you about the day. if you are just joining us have you missed a day on wall street. the dow was up more than 200 points, as you see it is well off those highs of 64, largely because of the gains for nike. s&p now down 5 points, the biotechs have taken the nasdaq down sharply today, but it is nike that is strong today, hitting an all time high, it's up almost 9% now. kelly and i were just look at a long-term chart of nike, it's

unbelievable how much this stock has done in the last ten years. the best performer in the dow after posting blow out earnings driven by a 30% sales increase in of all places china. >> and it looks like as tom rotuno points out it could close with a market cap of over a billion dollars today for the first times. our concerns of a china slow down fact or fiction. seema is breaking down the details. >> china has been a tough place to make money, caterpillar, deer, csx are some examples of industrial and commodity focused companies that are underperforming due in part to the slow down in the chinese economy, but some companies with china exposure are doing well. nike's blow out results from last night getting investors attention, sports retailers seeing a 30% rise in china sales, much higher than what wall street was expecting. oppenheimer says this is a great example of how china is a bifurcated story. you can make money in companies

that have exposure to the country, you just have to find the ones that are focused more on the consumer. if you're bet that go china will transition from an exports dependent economy to one that is consumption led, oppenheimer points to a few names that can win in china in addition to nike, analysts there say take a look at apple which makes 24% of its revenue there, intel, starbucks and yum. keep in mind, though, still a lot of uncertainty around how long the slow down in china's skme will last. another factor to consider is whether the central bank conditions tens to use currency devaluation as a way to prop up it's economy. that in general would not be good news for the mults nationals that do business in china. >> thank you. the president of china making an important economic vifsity toit white house today. let's get down to michelle crews co cabrera with the details snoot white house was able to announce some program for on a key issue cyber espionage.

putting out a joint statement saying neither government will conduct or support cyber espionage of trade secrets. pretty clear, though, that president obama isn't quite sure that the chinese are going to comply. >> i raised once again our very serious concerns about growing cyber threats to american companies and american citizens. i indicated that it has to stop. >> so just last week president obama was talking about the possibility of sanctions against chinese companies if indeed it doesn't stop. we are going to have to see how the coming months whether or not there is enough action on the bart of the chinese that this will actually not be such an issue. when we were in seattle earlier this week behind the scenes u.s. companies were telling us it's a huge, huge problem and they are worried that it's happening every day. back to you. >> and still will be. thank you, michelle caruso-cabrera at the white house. time for a cnbc news update let's go over to sue herrera.

>> here is what's happening this hour. the state department has received new e-mails from hillary clinton's private server that she did not originally turn over. that's according to the "associated press." the correspondence is with former general david petraeus starting before she entered office and continuing during her first days on the job. >> a u.s. college student who has been held in north korea for five months making another appearance before the media in pyongyang, he is a student at new york university, he admitted to entering north korea illegally in april. he told reporters he didn't know what his future was going to be. >> pope francis telling world leaders gathered at the united nations that the hunt for material gains and power has led to the destruction of the earth's natural resources. this at the expense of those living in deep poverty. the pope will hold a mass at madison square garden later this evening. the pope will spread his message of hope, grate and unity in the form of a pop rock album titled

"wake up" the vatican approved lp arrives november 27th. it can be pre ordered now on itunes. >> and that's the krng news update. what did you say, bill? >> does he sing? hello? >> i think he does sing or at least talks along with the lyrics. they haven't released it yet so we will see. but people are pointing to it -- >> after listening to him now speak to congress and to the u.n. this morning i could see him doing a rap album, couldn't snu. >> for sure. >> i think it's another -- >> he can do anything he wants. >> it's another example of how this pope breaks the mold in many different ways. >> yes. he does. >> i will pre o order it and we will see. >> thank you, sue. see you in an hour. >> we are sort of moving a little higher. i knew the bias was slightly to the sell side, not a whole lot i am told by some of the traders on the floor, but we are seeing a little more levitation now,

the dow up 87 points, the s&p is now down 3, but the nasdaq still hard hit today, down over 50 points right now. >> let's see if we can pull that s&p positive anyhow. much more still to come as you enter the most important half hour of the trading day. >> will the better than expected gdp report help convince the feds to raise rates this year? we have jason fur man joining us exclusive to stalk about that among other things when we come back on "closing bell." active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

all right. heading into that final last half hour of trading, the most critical time of the day. joining me steven gill foi, from deep value on the floor of the exchange. what a crazy volatile day capping off what has been a volatile week. today it's about the biotechs. >> right. >> what do you make of that selloff? >> it's broader than the biotechs. but it's not that broad. i mean, nine out of the ten sectors right now are pretty much all right or even higher. what we caught around redemptions and hedge funds they reached most lie li into the healthcare sector. that's why you saw that much damage in that space. we have the technical bounce we needed at spx 1921, we are not

as bad as you think. >> we are holding levels you are watching that on the s&p right now. >> precisely. we started the day with what we could call a janet yellen rally after her comments last night. you are among those who wants to see her raise rates not just talk about it. >> certainly. i mean, the fed has led us into the land of misinformation before. we would like to see action, not words. i don't care if you do it in the middle of the day when there is not a meeting, you have done it in the last 25 years or so i wouldn't mind something sooeg is that again. i do like she was hawkish. i'm skeptical that she brought out two hawks today to cement what she was saying last night, but i want action snoot talk something done now, you want to hear something about a -- >> we've been talking for eight years. >> i know you have. thanks. have a good weekend. >> a good weekend inn dweed. the republican race to the white house is heating up after wisconsin governor scott walker has dropped up. will that end up giving wunl time front runner jeb bush a

boost in the polls. john harwood sat down with him for the late nest his speak easy series. >> jeb bush says the way to achieve her goal of 4% economic growth is to reverse the tax policies of bill clinton and barack obama. i asked him why because bill clinton is the only recent president who has achieved 4% growth over a full term. >> we had 12 years of reagan and your dad, eight years of clinton, eight years of your brother and seven years of obama. >> the only president who oversaw 4% growth in every year of a term in the last generation was bill clinton in the second half of the 1990s after he had raised taxes which many republicans said was going to tank the economy. just as they said about obama. >> when you look at the committee no one is celebrating 2% growth except for the liberals. what the new normal -- bill clinton didn't reject the new normal, he signed trade agreements, he was not hostile

to capitalism. >> do you really think obama is hostile to capitalism? >> i do. i think he has a deep-seated belief that through government programs and government regulation you can improve the social condition. i think that's his default place. >> and of course i think if you look, guys, at the second quarter gdp statistics it suggests at least in that quarter obama has been doing a poor job of being hostile to capitalism. >> 3.9%. dually noted. >> thanks, john. as we all know house speaker boehner shocked capitol hill and the rest of us this morning with his announced resignation saying he would be leaving his post and congress at the end of next month. >> now all investors want to know what this means as we get closer to that looming threat of government r government shutdown as soon as next week. joining us is jason furman chair of the council of economic advisors. welcome to you, sir. >> thanks for having me.

>> are you concerned about the government shutting down next week with speaker boehner playing a key role in keeping it open? >> you have seen all the leaders make commitments that it's not going to happen and we would like to take them at their word because it certainly would be something that was completely unnecessary self-inflicted wound for the economy. >> you negotiating with him still even though he is leaving at the end of the month? he seemed to suggest that nothing was going to change until he actually leaves this office. is that true as far as your office is concerned? >> as far as we're concerned we have tremendous respect for speaker boehner and he is the speaker of the house of the representatives and that's the role he is playing and that's how we're treating him. >> let me ask you on the issue -- i know you are not going to second-guess the fed it's not your job, but janet yellen has told us last thursday it was clear that the fed did not raise rates because they were concerned about a slow down in the global economy and its impact on the u.s. economy. let me ask you your assessment

of the global economy and its impact on the u.s. economy right now. >> there's no doubt that the global economy is one of the head winds that we are facing over the last four quarters net exports have subtracted about a half a percentage point from our growth rate. the good news is that consumption has held up and investment excluding investment related to oil and gas, has actually picked up. so our domestic momentum has helped us overcome those head winds for the rest of the world but they're real and one of the issues that president obama was address wg president zee xi thi morning. >> the pace of new business formation has been disappointing and it's a measure of american business competitiveness have fallen during president obama's tenure. what do you think is going to be the solution to improving our productivity and how will you make it easier to start a new business? >> if you look at some of those

measures of business formation they've been falling for decades and that is an issue that's of importance to us. you previously are talking about capitalism and markets, president obama is a big believer in markets and that's why with the chinese today he was talking about a bilateral investment treaty, that trade and services, about protecting our intellectual property and, you know, going into next week where we are going to be continuing to negotiate the trans-pacific partnership. there is a whole range of ways in which we can use markets as long as we can level the playing field, as long as we can make sure that they are fair, that we can protect the strengths america has with intellectual property as one of the sprengs, we are going to really be able to suck sees. >> population growth is another strength, doesn't get talked about a lot. but the journal draws our attention to this again this week noting it's one of the things that sets ut apart in terms of our standard of living over time and prospects from western europe. from an economic point of view

do you support immigration? >> absolutely. in fact, almost every economist i know from across the political spectrum thinks that immigration would expand our economy and would expand our economy not just because of the population in labor force issues that you just described, but also immigrants bring with them new ideas, new innovation, start businesses. so they actually increase our productivity growth as well. >> let me ask you before we let you go another concern of the feds is inflation and the lack of the higher inflation expectations. they've set a target as you know of 2% but they don't expect us to reach that for quite some time. are you concerned about inflation or the lack of it in our economy and why do you think it is lagging these days? >> i think there is a lot of things going on in the inflation numbers, you have seen survey based inflation expectations actually tick down, i think one of the ones that people don't talk a lot about is there has been a big slow down in health

cost growth. it's been really remarkable. i think the affordable care act has contributed to it but happy to debate the causes with nichblt it is a fact that health costs are growing a lot slower than anyone thought and that's one of the things, there's many, but one of the things that i think is holding down the overall inflation rate. so these structural factors matter in addition to the normal supply and demand that we think about. >> but the strakt cal factors that jeb bush are citing are ones that he says come squarely back to the administration, whether it is elements of obamacare or other pieces of regulation that, for example, make it harder for independent truck companies to do business, what focus is there in the white house today on pulling back some of the red tape the businesses are complaining about? >> president obama put in place a rule that requires agencies to do a regulatory look back, look at the regulations they have done in the past, get rid of the ones that are outmoded. our office engages vigorously on

cost benefit to make sure what we are doing is net beneficial for our economy as a whole and then also things like you look at the way we did the fuel efficiency standards for cars and trucks, the idea there has to give a ramp forward, a stable consistent roadmap so that auto makers know how to make investments, how to do r & d so they know what's going to happen in the future. >> so jeb has got it all wrong? >> i think what we have tried to do is really consistently focus on cost benefit analysis and relooking at past regulations to make sure they make sense and that's a process -- that scrubbing process is one that's ongoing we're doing all the time. >> an approach you both seem to agree on, in fact. thank you for joining us this afternoon. jason furman chairman of the council of economic advisors. breaking news on square now with julia boorstin. >> square is reportedly planning to file it's s1 documents to go public as soon as the next two

weeks that's according to fortune magazine that says that goldman sachs will serve as lead underwriter for the implt po and morgan stanley will also participate. in the past i've reported that square is look to go public in the fourth quarter of this year, that's according to sources close to the situation, but my sources also tell me that square is very carefully watching the market conditions and too much volatility, any other negative potential situations more an ipo they would not want to take the company public. while they are hoping to go public before the end of the year they're carefully watching the market. square says they have no comment on this latest report about timing. this news about square planning to move forward with this ipo is particularly asking considering the back that the ceo is also temporary ceo of twitter and has been considered a lead contender for the permanent role as ceo of twitter. the problem is that twitter's board has said they are only interested in a full-time ceo and it would be rare though not

unheard of for dorsey to be ceo of two public companies, the one notable exception that always comes to mind here is steve jobs who ran apple as well as pixar at the same time. we will have to watch and see if there is any updates in twitter's ceo search or if the board changes its tune about its willingness to have dorsey in the role while also running square and we will also have to see what square investors think about dorsey also been at twitter. >> we weren't going to ask you but i do want to ask you a question. doesn't twitter risk sort of withering on the vine when they are just holding this out there waiting for dorsey to make up his mind or is it the board that has to make up their mind? this is damaging to the brand, don't you think? >> i think that it's certainly not a good thing for the ceo search to go on as long as it has. i think the issue is the board made it very clear in a public statement this summer that they only want ad permanent ceo. if they are going to go with dorsey they have to totally change their ceo and do a good

job explaining to investors and the public why it makes sense for them to have a ceo who is also running another company. dorsey made it really clear publicly he does want to own square -- he doesn't want to be ceo of square as the company goes public. he hasn't spoken that much publicly about his interest in keeping the twitter ceo role, but it seems like he would like to do both. we will have to see if the board changes their mind or if they find a different ceo. >> julia, thank you for now updating us on square. i'm chuckling because we want to go before the end of the year but we're watching market conditions. if janet yellen or is it square that we're talking about here? tells you why what's happening in the session every day is so important. we have 15 minutes to go, the dow is now up 123, the bulk of that is nike. the s&p positive territory just by a point, the nasdaq having a tough session with those buys owe techs down 43. >> oil higher today, much of t but are crude prices now officially stuck in a rather tight trading range?

we have that story coming newspaper a moment. >> and the petrobras scandal has two new names attached to it, bill and ma linda gates will testimony you how they are adding to the energy company's legal west coast later on the "closing bell." working 24/7 on mobile trader, rated #1 trading app in the app store. bell." o later on the "closing bell." e later on the "closing bell." s later on the "closing bell." and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. my name is watson. i'm helping doctors keep people healthy. take ted here. i'm pulling together data he shared from his wearables, health records and family history, so we can analyze it. he's doing everything right... for the most part. no pain, no gain.

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oil prices are higher again today post ago gain for the week actually, jackie deangelis has the details. >> i was surprised that we were higher today, as a matter of fact, we closed at $45.70 obviously tracking along with equities, it was a risk on day. having said that there were some bearish factors that traders shrugged off. the first would be the fact that iran is talking up its oil exports even before sanction right side lifted saying it's going to add 500,000 barrels per day in late november. traders definitely don't like that but again not giving it much weight. also yellen putting this rate hike back on the table this year that would strengthen the dollar it typically can be bearish for crude. the good momentum going into the weekend did help us close higher and over 45 is key. that trading range is tight 42 to 47 and volatile np between. >> thank you, jackie. ten minutes to go now, the dow

up 122, but, again, we've mentioned this, the s&p up only by about a point and the nasdaq down 40. so three very different pictures across these averages today. >> so many questions out there, what would a rate hike mean for the economy and markets, what would a government shutdown mean? chase chief economist anthony chen will weigh in with that when we come back after a minute. to folks out there whose diabetic nerve pain... shoots and burns its way into your day, i hear you. to everyone with this pain that makes ordinary tasks extraordinarily painful, i hear you. make sure your doctor hears you too! i hear you because i was there when my dad suffered with diabetic nerve pain. if you have diabetes and burning, shooting pain in your feet or hands, don't suffer in silence! step on up and ask your doctor about diabetic nerve pain. tell 'em cedric sent you.

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about 8 1/2 minutes -- 7 1/2 minutes left in the trading session. art cashin just stopped by. 500 million to buy. so the bias is to the upside. two big questions for our next guest, that would be chase chief economist anthony chan. the impact a government shutdown would have on the economy an and impact a rate increase by the fed by the end of this year. government shutdown. >> initially if you get a government shutdown the inclination is that you will see consumer spending weaker, government spending weaker, but the last time we had one the economy surged and you got strong growth in the fourth quarter of 2013. >> is that true cause and effect? >> no, i don't think it is but it certainly tells you that the impacts were pretty minor in nature. that i think this time it also is a function of whether that shut down is long or short and

the fact that boehner has resigned has raised suspicion that the odds for a government shutdown have come down dramatically. >> they might have come down for now but what if this f. this does push the ball to december and the fed would have to be moving to raise rates then. >> you could argue that that's the perfect storm and the federal reserve will take that into account, but given the fact that there is so much preparatory time between now and december you would hope that whoever comes in, whether it's kevin mccarthy or somebody else that somehow those wrinkles will be worked out. that certainly is a ris snook are you as concerned about china as the fed seems to be in not raising rates? is it having an impact on the u.s. economy with the slow down here? >> i think when you look at everything they've done, they're lowered interest rates five times, lowered reserve requirements four times, government spend nothing china is growing at 25% year over year, those things tell me that perhaps in the second half or even in the first half of next year we will start to see a

stabilization. after your initial question which i didn't answer before, what will the impact of the rate hike be, research that we have done finds if the federal reserve is raising rates in a world where the economy is getting better they are not doing it because inflation is flaring up, guess what, that's actually a positive for the equity market. i am actually cautiously optimistic that they are doing it for the right reasons. >> anthony, always good to hear from you. >> we will come back with the closing countdown and review this have week and sara eisen joins me as well, we will look at that nicki story. >> the petrobras scandal in brazil taking an american flavor when the bill and ma linda gates foundation sued the oil giant. we will tell you why coming up.

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apple scones smell about done. ahh, you're good. i like to bake. add new business services with at&t and get up to $500 in total savings. we're inside the two minute mark heading to the close. it's the count down for the friday. sara eisen is with me today. >> playing the role of bob pisani. >> she's playing bob, but we're glad you are here. >> thank you. >> a quick review of the dow, the s&p and the nasdaq. this week here they are, you know, the trending in this direction by far the nasdaq, the underperformer down almost 3% for this week. why? our next chart will tell you, that would be the biotech stocks which today especially the last

couple of days here we have seen a huge decline and for the today we are down almost 5%, we were down more than 5% earlier, down 4.5% in just the last month. this is the ibb nasdaq index. a positive in today's trading would be sneaky. blow out earnings, growth in china. the stock up 9%. 8.9% today. the thing i asked you is why wouldn't the currency translation hurt them. >> it does hurt them their sales were up 5%, without the currency impact it would be up 14%.

nike 9% pop was on top of 20% rise so far this year. it is now the best performing dow member up 30% and at one point the dow would have actually been negative if not for nike contributing 60 points on the dow alone. >> that's been on fire for five years now. it's just unbelievable how strong the stock has been. >> except for i mentioned earlier under armour has outperformed it for the year, it's up 50%. both of them winning stocks for 2015. >> thanks, sara. see you later. we're going out with gains. the dow up 114, but the s&p and the nasdaq lower thanks to thos >> thank you, bill. we will come to the "closing bell" on this friday afternoon, everybody, i'm kelly evans and here is how we're finishing the day, the dow turning in a gain of 111 points, the s&p 500 had a pretty blah session, down about a point on the close, nasdaq is difficult one, gave up 1%, nearly 50 points on a lot of weakness in biotech especially. we will talk more about that in

just a moment. joining today's panel we do have evan newmark and jim lacamp and "fast money" trader guy add amy. welcome one and all. >> if we put nike aside, let me actually rephrase that is correct should we put nike aside or does that tell us something ultimately about where expectations are and where we might have pockets of strength here? >> we should not put nike aside. the growth stocks have been substantially better than the rest of the market. the problem is janet yellen. she has not given us any clarity at auchlt i said last week when i was here the market had already parse this had in, the ten year treasury and two year treasury yields came way down after the nonaction, she gave us no clarity the other day when she spoke, the nasdaq has been down every day since they fed did nothing. if the markets don't like one thing it's uncertainty.

>> there were some evan that said she clarified things last night saying they still want to raise rates before year-end. >> that was a little bit of backtracking. we talked last week about how the fed that's a confidence game and she blew it. >> last night. >> last time. she had a bite at the apple. >> did it clarify things or no? >> i think it clarified them a litt little. if you come out and if she had said we're going to raise by 25 and, you know, there are some issues but things are generally moving in the right direction the market would have been happy and we wouldn't be talk being it right now. >> she said the same thing she said three months ago and that was we eventually would be raising rates this here. we only had one fed governor that voted to raise rates. i don't know what's going to change in the next three months where you have the majority of them all of a sudden decide to raise rates. >> today the house speaker john boehner stepping down at the end of next month now has a lot of washington folks we will talk to one in a second saying that could mean that a potential next

shut down fight might be combined with the debt ceiling falls in december which is exactly now when the only other press conference of the year remaining that they could use to raise rates would be. what do you think that means for fed policy and these markets? >> government shutdown does it increase the chances, does it decrease the chances? john harwood would probably be better to answer that question. i will say this, though, they specifically said that market volatility was one of the reasons they were reticent to make a move. guess what, kel, the market volatility is not going away anytime soon. if they are true to their word i don't think they are going to make a move. we can talk about markets all you want and you mentioned nike. nike is fantastic, for every, though, nike, apple and starbucks which is crushing it in china and would lead a lot of people believe that china is doing great, i can give you a report wind resorts made a new 52 week low today and caterpillar. there's clearly something going on. i would submit nike, apple,

starbucks all very aspirational but the real brick and mortar stuff is really breaking down in a significant way over there. >> it does suggest that the rotation is one that we've been talk being for some time, it's from the industrial led economy to a more consumer led one. would you tend to bet on that trade? nike making a long-term wager on the chinese consumer continuing to show up and pay. >> nike gives me reassurance in nike. nike is crushing it not only in china but north america where they supposedly are saturated you're still seeing tremendous growth here. i think nike is nike specific. i think, yeah, it's going to work in china but again i have said this to you before and i

will say it again, don't confuse the consumers want to spend with their ability to spend. it's completely two different things. the health of the consumer should not be measured by how much they're spending. >> fair enough. let's look at the flip side of the coin today in the markets that was the biotechs markets having one of its worst sessiones in four years, down 5% -- actually just under 5%, 4.9%. meg terrell joins us now. what are people saying is behind this drop? traders were scratching their heads especially around 2:00 p.m. when they went into free-fall. >> i've been talking with a lot of folks about whether there is anything specific driving this today and what i'm hearing is this is just a freak out, a continuation of the concerns that arose earlier this week on hillary clinton and the global outcry over drug prices. that's continuing to take its toll. some of the factoids, the nasdaq biotech index is entering bear market territory, down more than 22% from its july high. >> a lot of folks pretty nervous. here i talked with one of the "fast money" traders, also the

head of sales trading at cowan he tells me it's the highest flying names, stocks like bloomberg down so much today. he tells me this is absurd, it's setting up as one of the best buying opportunities into year-end and people will look back and say why didn't i take advantage of that. i'm sure biotech investors are hoping he's trying. >> evan. >> we've been talking about the biotech bubble for a month, in fact, i was on last march when the price of bio gen went up $10 billion on news of good alzheimer's news. >> that's one you have been in for years. >> that stock peaked at 480 in march, it's now trading about 280. >> wow. >> but by the way, you have not lost -- you've basically round tripped it this year on the biotech index t went up 25% and now it's gone down 25%. i think this is a good thing. it's a good thing because these pockets of stupidity which we've talked about are one by one

being deflated which means if you're look to go buy stocks maybe not right away but in the next couple of months you make the appeal to say valuation right side not stupid anymore. >> the journal yesterday or maybe the day before reminding people that the price to earnings multiple on the ibv which was hit today looks okay, it's about 28 times if you look up the index online but it doesn't include unprofitable companies. when you add those back in the multiple is about 130 times. so is this the wool falling from people's eyes. >> the push back i get a lot of times in terms of biotech is 75%, 80 prsz of the bike owe tech or companies that we call biotech names do not have any earnings to your point right now. the names that we talk about all the time, a.m. jen, celgene, gilead, they are not expensive, the most expensive is probably celgene and that probably trades at 20 times forward earnings. i will say this, though, the

biotech index i think what's going on is there are a lot of tourists in the space, people that don't necessarily understand it or traffic in it from a day to d basis they are just in it because they think they need to be in it. you have the etf in my opinion driving the individual stocks. in other words, people sell the etf by definition those individual names going to be bludgeoned. that coupled with the commentary over the last couple of months, hillary clinton's comments over the last couple of days doesn't hip. i think the ibb trades down to 285 before you buy it. >> meg, we will let you go, some around here say maybe they have done well in the biotechs, they're liquidating them, moving in -- you have to sell what works in this market to some extent, right? >> yes. absolutely the right. >> they are up two or three times in the last three years. people don't recognize, those things have had -- bio gen went from $40 to $480. >> if you look at the fed rates a lot of these triple digit

priced companies they have outstanding growth rates relative to the market, outstanding pe to growth rates relative to the market. i think we are setting up for opportunity in this space. >> thank you, again, meg. he appreciate it. and let's move on to the other big news of the day, john boehner announcing he will step down at the end of next month. what effects will it have on markets and the economy as we grapple over another government shutdown and get ceiling let's bring in andy la pair yar. andy, people are moving on talking about december whachlt do you think? what's your best guess as to what happens snou? >> right. well, i think obviously the odds of a shut down next week have gone way down. i think the odds of a shutdown are maybe one in three for december. it's not that high, but it's definitely a real issue. i think you are going to have a weaker less experienced leadership team with boehner out. if you think about the top two positions in the republican leadership in december they are going to be people who weren't in the leadership and weren't in those two positions a couple --

just 18 months ago, they have lost the speaker and majority leader last summer. it's been a big shift and are they going to be able to pull something together? i think that's the big question. >> the shutdown had gone from 40% overnight to under 10%. so how important is this next sfig to keep the government open and running while satisfying the conservative wing that apparently was behind boehner's ousting? >> it's a tricky situation, i think the vast majority of republicans are upset this happened and they support boehner and don't support the shutdown but you have the tail wagging the dog where you have 40 members which that's enough to deprive boehner or whoever is next, mccarthy probably, of getting majority with just republicans. so it's going to be not any easier. plus all we're doing now with funding the government is kicking the can down the road. this is just the cr to fund the government at current levels. the hard questions on the debt ceiling and what are the tradeouts that will be made, is

a sequester going to be broken, what about some of the riders republicans want to put on, those are still things that have to be resolved in december. >> jim. >> is there any chance he can get everybody else to resign with him in washington and quick kwit? no, the real question, a lot of republicans were upset about leadership because they promised tax reform, they cleaned the democrats clock in november but there has been no tax reform, no sweeping changes. moving past there government shutdown issue, do you see any tax reform, meaningful tax reforms being brought to the stable? >> well, i mean, not before the 2016 election. i mean, the president doesn't support doing anything on the individual side, there's very little agreement between republicans and democrats on the goals, the purposes of tax reform, revenue target for tax reform. there is not a lot of common ground. paul ryan has been trying to work on something how we treat income earned overseas, i'm skeptical that's going to happen. i'm looking for nothing that anyone would categorize as tax

reform i think is going to get done. >> andy, a second ago i said to some extent that he was ousted. is that true? i mean, if this was truly a personal decision, would he leave his party in a leadership void? >> i think that he probably would have survived. i think that it looked like enough democrats were either going to vote present or vote against the resolution that would -- to vacate the chair so i think that he -- there would not have been a majority to remove him as speaker, but he looked at a situation like that and you talk -- you heard him talk about the institution so that's just a bad precedent for the house to have votes on spray kagt the chair and then what? then you are the speaker where you have got -- you don't have that majority, there is a vote of no confidence. where does that leave you? it leaves you with not great options. i think he thought that this was the best thing for the house, best thing for republicans and best thing for the country. i do think he would have survived if he would have fought for it, but like you said, he

wanted to leave anyway, he came back this time because the cancer had lost. i think proebl blee did the right thing for himself. >> okay. before we go, guy adami your thoughts on how it does set up markets for the next couple of months. >> the volatility is going to remain. government shutdown, no government shutdown, the volatility we're seeing to date specifically, kelly, don't underestimate how volatile a day today was. six months ago, nine months ago the rally that we saw today would have carried itself into the close, we would have closed on the highs, today we had a complete reversal, the vix explode td to the upside. you typically don't see things like that happen on a friday which leads me to believe -- i'm not saying up or down, what i will say is volatility is here to stay for a long time, the fed talked about volatility being something sthal keep them from raising which if you believe them we are not going to see any rate hikes soon which leads to more uncertainties which leads to more volatility.

>> do you know what, guy talked about volatility. i will just remind viewers while there may be day to day volatility the market has basically had two phases, the s&p was trading at 2050 to 2100 for the first nine months of the year, currently it's hanging around 1950. hasn't really gone anywhere. >> one volatile reset and day to day there's volatility. >> guy, thank you very much. be sure to stick around and andy as well, appreciate your perspective from washington today. >> coming up "fast money" at 5:00 they will be talking about ratings for prime time fall premieres hit by netflix and amazon. rich greenfield will explain why the streaming wars are just heating up. yet another round of apple mainia today, the iphone bringing more lines outside apple stores. we will see if those long cues were worth it. the president of the china meeting at the white house today with talk of chinese cyber attacks front and center.

we will talk to a security expert who says sanctions against china are a waste of time. you're watching cnbc, first in business worldwide. i'm watson. and today hundreds of companies are putting me to work. i'm teaching watson to help your vet speak dog. you're a dog, right? i'm teaching watson to help you make healthy choices. i'm teaching watson to help design a vacation around your personality. don't judge. i'm teaching watson to answer endless questions. how big is infinity? where do babies come from? why can't i have chocolate for breakfast? i'm watson and i'm ready to work with you.

more iphone madness today. the latest version of the fichlt phone 6s hitting shelves this morning, josh lipton is at an apple store at palo alto with the details. were there any unexpected visitors this time, josh? >> no unexpected visitors, but, kelly, today isn't over yet. you're right, i'm here in downtown palo alto, california. this store opened at 8:00 a.m. local. fans have been filing in ever since and they are here to pick up one much these, the new 6s or 6s plus and i actually caught up with a customer who bought the first new iphone think location this morning and he told me the big selling point at least for him was the 3-d touch feature which creates that pressure sensitive display. >> it's bull about speed. i think the s on the phone has

never stood more for speed than with 3-d touch. everything you do, all the inter traction faster with less friction and i think all the apps we use we are going to start using them a lot faster and breezing through our navigation easier because of 3-d touch. >> you no now, in addition to 3-d touch these phones are faster thanks to that apple processor. users should be able to feel that change in speed when they unlock the phones or launch apps, touch ids, wifi two times faster than the 6. i've also talked to customers at the store who said they were upgrading to the 6s because they were excite btd camera, it's an improved cam ration new sensors with photos that promise to be more sharp, more accurate and more clear. the big question now for apple investors, how many new iphones does apple sell this first weekend? last year it was 10 million. apple has said preorders suggest they could beat that so we should find out soon. stay tuned. back to you, kelly. >> josh lipton, thank you very

much. let's talk to dan ives now who has been doing his own channel checks today outside the fifth avenue apple store in manhattan. and 14th street as well. there are glimpses of it. dan, first of all, this launch day you had the pope in town, how did that change dynamics at f. at all? >> the pope didn't come by for an iphone, either. i had avenue definitely say what josh is saying, we saw a lot of enthusiasm across the board in terms of customers looking to upgrade the 6s. a lot on the rose gold color. really 3-d touch was key as well as the 12 mega pixels. i think there is just huge green room opportunity in terms of what's happening for apple. >> what's green room opportunity? do you mean like a big rally? >> i mean because really at this point it's less than 30% of upgraded to iphone 6 and now you have 6s. we believe this is $100 billion opportunity in china and i think

when the iphone numbers come out monday morning you could have 2 to 3 million china and 12 million is that bogie that the street needs to see to see this greenfield ahead. >> jim. >> i used to call people who waited in line for the new product idiots, but i had a samsung and i bought an iphone 6 on the first day of release so you can put me in that crowd, too. my question to you is are these people you are seeing in line mostly upgrades from other apples or are they coming from samsung? don't they just feel samsung's thunder on these deals all the time? >> there's no doubt that that's a competitive thread. most of these are really upgrades on core apple customers from 5, 5 s, but you are seeing some 6s that are upgrading to 6s. we see about 20% that are going from samsung to apple based on our survey work today. i think what you're starting to see is the leasing program, too. the changes in contracts with the carriers.

that's unlocked about 20 to 25% of customers and i do believe here that apple is going to prove a lot of the skeptics wrong, i think a lot of seeing that the best growth is in the rearview mirror, the same ones that said lebron was done after the first championship and i think you're really going to see, i think, a renaissance of growth here and i think it starts monday morning with a strong initial weekend sales that they announce. >> dan, you can count me among the skeptics although i will note that my wife works for google so got to be careful about that. listen, dan, where are we on the kmod zags curve? i watched that is correct the high-fiv high-fives, listened to jim lacamp. i think this is all like can ball zags, marginal demand, i don't see the step function in terms of the product offering. convince me that this is a step function, convince me that google -- that apple depose from being worth $650 billion to $1

trillion on the back of the 3-d touch screen or whatever it is. >> force touch, dan. >> and i think you nailed it on the head right there. it's not necessarily about the hardware piece because they are going to continue to come out with releases and you are going to see this upgrade cycle. when you look out how you get that trillion dollar market cap now they starting to into different growth avenues, you start to see the software piece, the streaming, the cross selling into the ecosystem into the ipad, but the big thing here to remain focused is that less than 30% of upgrade, i think you have 70% that upgrade by 2016 and that incrementally is a massive opportunity here as we start to build some of these other growth front tears around streaming software down the road with an apple car. >> it's the car, evan. >> i knew that was your answer. >> no it's not. >> i asked dan, i didn't ask you because i knew the car -- >> i thought you were wait

listed for the car for 2019. >> we have very special status here. no. hard limit it's a tough business. thank you, dan ives on the iphone 6s. >> we have a new alert on oracle to get to. >> kelly, we are looking at the compensation of oracle's ceo starting with caths 2015 total combination $53.2 million versus $37.7 million in 2014. ceo mark hertz 2015 total compensation was $53.2 million versus $37.7 million in 2014. now, chairman of oracle lawrence ellison $63.6 million. that includes stock and options. that's for the fiscal year of 2015. if you take a look at the stock performance on shares of oracle, oracle down 20% year to date. kelly, back to you. >> and, seema, i'm glad you mentioned that. is this kind of pay fine for oracle at this point? >> i don't think so. the company is not growing very

well. a lot of these pay structures are set in years in advance and you can't really tie it to one particular year's growth, but i don't think people look at oracle as a growth company anymore, they are a good kper tries r price and good business. these kind of pay schedules, though, are supposed to be tied to growth. they are not supposed to be tied to maintaining a business and oracle feels like it's been maintaining a business for a long time. >> larry ellison has always paid himself boat loads of money. wall street works the same day, the guy at the top wants to get paid a lot of money, he pays himself a lot of money, the people under him has to get paid a lot of money. i'm not saying it's right or wrong, that is the way it's done. >> the goal between that and the stock performance even wider. scanned snool boat loads. >> yeah, exactly. scandal continues to playing one of the top energy kms in the emerging markets, we will tell you why the bill gates foundation is getting involved in the brazil petro brass fallout.

the petrobras scandal in brazil seems to escalate each day. bill and melinda gates foundation sued the company which has seen government officials investigated and company officials investigated. just how much further will this scandal reach?

carl meechum joins us with the panel. i know we have to be careful about what has actually been -- the companies that have been named, for example, but are you expecting to hear more american names involved as this investigation continues? >> of course you've seen a lot around the whole issue with petrobras, you have seen a lot of folks -- officials of petrobras, officials of the government, managers, seen years managers, but we are yet to see any connection with any american businesses involved in this. >> i am just referencing several reports referencing trans ocean stock got hit on that. as we know about w. these investigations they take a while and you start to uncover more wrongdoing. the question a lot of people have is this going to stay brazil specific or are a lot of big international companies that do business down there going to be drawn into it.

>> i think this is a difficult situation. up to now all of the companies that have been implicated for -- that have been brazilian companies have been implicated, but we are yet to see foreign companies being involved in this. of course that could still happen, but we have not seen anything specific. i think you alluded to one earlier, but we have not really seen sort of that become sort of a domino effect in seeing more implicated. >> certainly one aspect here, though, that is of interest today is bill and melinda gates foundation suing petrobras. do you think they have a case? >> well, they might. there is a lot of blame to go around, but in the bigger picture when people talk about brazil what we're seeing on the short term now is alarming and it is scary, but i'm looking at the figures here, 63% of the world's deep water oil discoveries between 2010 and 2014 nwere in brazil. you have the plots or the 13ered

round of the bidding process for plots for people doing more discoveries happening on october 7th, you have $3 billion that the chinese government has invested in petrobras. it's not like petrobras is going away regardless of these scandals. >> carl, it's jim lacamp. isn't causation going to be a big problem in any sort of lawsuit? we've seen oil stocks around the world get hammered not just petrobras. not only that you have emerging markets that have been in crisis for a long time. the strong dollar in many case has been to blame. so aren't there a lot of reasons that you could blame on a petrobras declined beyond any sort of corruption? >> sure you can, because of the close dependency that petrobras has had with the government and the government is not doing well in brazil. sure, you could do that, but i think that the fundamentals is there, the demand, the ability that they will have to supply demand is there. they are not going anywhere.

in the short term i think you are going to see them take a big hit, but i think in the midterm things are looking -- things aren't so bad. >> all right. carl, thank you. >> thanks. >> carl meechum. it's time for a cnbc news update. let's go over to sue herrera. >> here is what's happening this hour. california regulators restoring ambitious rules to cut transportation fuel emissions 10% within five years. the rules further strengthen the stateest toughest in the nation emissions standards but they worry it could drive up costs at the pump. pfr arriving in east harlem just about 20 minutes ago to an enthusiastic crowd obviously. he greeted the children who came out to meet him before visiting our lady queen of angels classroom and holding a service in the school's gym. later this evening he will hold a mass at madison square garden. kate middleton paying a visit to a high security women's prison in southeast england to learn more about a program that works to rehabilitate prisoners with addiction problems.

she spent more than 90 minutes at the prison which houses up to 282 inmates, many of whom are serving life sentences for murder. first lady michelle obama and china's first lady visiting the panda house in washington at the national zoo there. they announced the name of the new band da cub that was recently born, bebe which means precious treasure. they are so cute. that's the cnbc news update this hour. i was just is he te national zoo and they are adorable those pandas. >> bamboo eater is what the name band da names. wondering about the red panda because it is a small guy. >> it is still a band da, yes. >> thank you, sue. president obama meeting with the president of china today, internet security a tense issue between the two with the u.s. originally pushing for sanctions. up next we hear from a cyber security expert about why that won't work. you are watching cnbc, first in business worldwide.

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nike just did it today and that held the dow at 113 points to close out the week. now the s&p different story the broad index down about a point, the nasdaq really hit on biotech

specific concerns ending lower the whole thing, though, by 50 points. cyber security one of the big top picks of discussion in washington today between president obama and china's president xi jinping. it seems a mutual understanding was reached. >> we have agreed that neither the u.s. or the chinese government will conduct or support cyber enabled theft of intellectual property including trade secrets or other confidential business information for commercial advantage. >> this is certainly not a far reaching agreement and concerns about china and other nations do persist. for more now timothy eves joins us. welcome to you. what was your reaction to the new conference today? >> it's great to be here. it's fascinating. the cooperation is really important between government and private enterprise and even security companies to try and improve the security response to cyber attacks, but it's a first step and honestly i don't think you are going to see any real

change in this escalation of breaches. because what you have to do is look at your security approach a different way. so it's great they are incorporating, it's a great first step but you've got to look at security differently. so let's start with this but you are still going to see breaches escalate every year until you start looking at something differently. >> i have a question. what is the purpose, if you were the chinese government, you always read these stories about, you know, the chinese army with hacking or there was some cyber invasion. what is the objective, what is the purpose of the chinese army or the chinese government actually trying to steal -- tap into american software of any form? >> so it's a global threat. so it's not just one particular nation. the attacks come from all over the world and even americans attack american infrastructure. >> my question is if you are the chinese -- what are you trying

to achieve by doing this? what is your objective? >> the objectives on the cripple malls range in the old world it used to be glory where where they wanted their name up in lights then it went to money a decade ago now you are into cyber terrorism. so they want to disrupt and disarm and steal intellectual property and for their advantage. >> just for the disruption sake, tim? >> it can be -- once you walk through the network of a large enterprise for criminal behavior it is very easy for a terrorist to walk through that same network, use the same footprints in the snow if you like for terrorist activity. so you may start with that navigation, but it will escalate for sure. >> tim, one of my concerns and i think this is one of the biggest concerns for the economy, but one of my concerns is that the foxes always seem to be smarter than those who build the

henhouses, i know what your company does is build henhouses. how do we stay ahead of the curve not only as a nation and a government but how can we feel good good that any cyber security software that we buy is going to be ahead of the curve? >> you're absolutely right. it's obviously -- it's a battle. the -- it's a very interesting battle as well. i mean, the best offense is a strong defense. so what you have to do is you have to look at how you secure your assets in a different way. these things with things like the cloud your data is more distributed so you can't rely on these old products that people are buying. most of the public companies today were invented before the iphone. so you have to look at a new type of security protection because your data is so distributed. >> understood. tim, when attacks do happen, though, are sanctions appropriate? is retaliation appropriate or am i asking a question way above your pay grade? >> oh, no, i think sanctions are

appropriate, reaction. you know, it's very hard to find and identify the real attacker. if you're trying to -- if you are the cyber security chief at a large bank and relying on cyber security sanctions to feel safer at night then hope is not a strategy and trust that those sanction right side going to work isn't, either. so i would kind of think that they are relatively pointless if you are trying to protect your own business. >> all right. tim, thank you. tim eves is the ceo of the armor. >> joo house speaker john boehner announcing his resignation today. up next "meet the press" moderator chuck todd offering his insight on today's big story. it's the biggest music festival you have never heard of. tomorrow world in georgia takes place in weekend and costs $30 million to stage. we will head there live for more on why this festival is such a big deal.

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looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. welcome back. house speaker john boehner announcing his resignation from congress today. he will leave his role at the end of october. chuck todd has been following this story from washington and joins us now. chuck, what are they saying? >> well, look, this is john boehner taking one for the republican team here. he is -- obviously he himself admitted he didn't want to put his party through a leadership

fight, he was not prepared to use a shutdown to save his own position as speaker which is probably what it would have take ton save his position as speaker. there were enough conservatives to force a vote. he would have needed democrats to do this. this isn't the way he wanted to lead or go out. i think he decided the best way to avoid a government shut down, the best way to help the party going forward is to do what he did and i think he has done just that. we could still come december -- you are going to have -- the government is going to stay open, there will be a three-month extension and we will see if there are still kerv tiffs that want to fight three months from now. >> or we have the fed maybe raising rates and the holiday season approaching. leaving his party stronger, you know, we just were talking to other folks in washington saying this actually makes the next -- they expect the next lead for potentially be weaker than john boehner was in terms of the politics so why would he step down if it was a position that would ultimately weaken his party? >> well, no, because -- and i say stronger, it would have been worse to have this sort of

leadership fight and him having to save himself would have put the party in even more per laos place than it is right now. this fight inside the party, what we saw -- the movement that essentially forced boehner to make this decision torques decide to resign, is the same phenomenon we're watching on the presidential campaign trail. the difference is there are enough grass root conservatives that make up the majority of the elective that are upset with the direction of the party and that's why trump and fiorina and carson make their support collectively makes up more than 50%. inside the republican house conference there isn't a 50% majority among this conservative base but there are enough to disrupt john boehner's ability to basically make the chamber work and that's why he said, do you know what, i'm out, i have had enough of these fights and i have to say the most remarkable thing today was his press conference. first time i have seen a resignation press conference where the person residing seemed

ecstatic about leaving. >> he really did. >> he probably was not the only one that's ecstatic, chuck, about him leaving. when you -- you mentioned it, donald trump, carly fiorina, ben carson. i think america is telling washington that they are tired of this. all of these games and the way washington doesn't work and it doesn't work at all. one of the reasons the federal reserve board is doing so much is because fiscal policy is nonexistent. >> correct. >> my question to you is how does this play out on main street given that there's already a strong desire for outsiders? >> look, i think it doesn't -- i don't think it does anything other than center the fight back on the presidential campaign trail. if we had this protracted fight for boehner's job, for him to save his own job, it would have moved all this intensity to washington and frankly probably made it even look worse. i think what it does is it doesn't change the dynamics of the presidential race t just makes sure that washington stays out of it for now. that essentially the washington

republican players sort of stay on the sidelines rather than inserting themselves into this fight. >> that's a good point. i was just going a ask on sunday whether clinton and fiorina are going to be interviewed at the same time or one by one. >> back to back, but both on sunday. hillary clinton on set and then carly fiorina will be on right after her. so, no, it's -- they will not cross paths personally. one will be on set and i believe carly fiorina is going to be coming from iowa. >> thank you so much for your time this afternoon. that's chucked to, host of "meet the press" who will have hillary clinton and carly fiorina on his show sunday. president bill clinton will join becky quick here live monday live from the clinton global initiative. >> another development in the saga of kyle bass versus biotech kms. this time involving celgene, the ba tent office denying their request to dismiss bass'

challenge to some of its patents under cancer drugs. celgene took a different path, they're actually challenging whether his challenges are legitimate given his profit seeking nature. the patent office saying is that profit is at the heart of nearly every patent and nearly every review is not an economic motive does not raise abuse of process issues. they say we take no position on the merits of short selling as an investment strategy other than it is legal and regulated. you're seeing celgene having gone down 4.8%. analysts telling me this is probably not what's driving t looks like potential maybe small victory for bass. >> there was plenty that have weakness to go around today. thank you. forget the billion dollar idea, what about the 10 billion dollar one? up next we go behind the scenes of the silicon valley inn could you bait that are only bets on startups that look like big home runs. be sure to tune into "closing bell" monday.

i'm going to canton, ohio, one of international papers have you if a sills. along with the ceo of wendy's, one of their major customers. it all begins 3:00 p.m. eastern. we're back in two.

this week our designing disruption series looks at the

forces turning start ups into the disruptor 50 list. one, gusto named zen payroll until next week, maybe it is gusto, coming out of the world's most successful incubators, why julia boorstin looks at how they benefited from the ult mal incubator as poach. julia. >> thanks, kelly. gusto is not only trying to take on adp, it is moving into benefits such as health insurance and worker's compensation. i caught up with the ceo and the head of y come binator at the head of the annual demo day. >> twice a year they invest $120,000 into a new class of start-ups. 85 in the last round. coaching them over three months to prepare them for this -- demo day. >> we're looking for companies that can be 10 brls or bigger if they work. and one of the things that you need for that is a very large

market, or a market that is growing very quickly and another thing you need is a very determined visionary founder like josh. >> ebt present ear -- entrepreneur josh reefs wanted to make it easier to manage payroll from the cloud. >> this community gave us a chance to work with amazing folks through the process. >> you join this network of other start-ups that will advise you, help you buy your product and refer you to your investors and potential hires. the hardest thing about starting a company is it is incredibly lonely. you don't have peers as a founder. >> now over 1600 founders continues long after start-ups graduate. >> the alumni community aspect was the biggest value for me and demo day, the chance to engage in investors at a time when we're ready to raise capital. >> in the past decade, y commentator has funded nearly a

thousand start-ups. they say the combined value of the start-ups is over $30 billion. and kelly, i think it is gusto. >> thank you. gusto. said with gusto. and reporting with gusto. julia, thank you so much. bondar rue, laa palooza and other festivals. we're going to head to one of the biggest music events live next. and coming up later, if your wored about -- worried about apple, a trader has a way to protect shares for free. stay tuned.

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stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. usually the end of summer marks the end of music festival season but there is one in georgia you might not have heard of and it is banking tons of cash. morgan breanan is out there and has more on what to expect. >> this is tomorrow world, it is a $30.03-day party with like 160 attendees expected, all here to listen to this -- electronic dance music.

edm. it speaks to how wildly popular this genre of music has become in just a few short years. so according to the international music summit, this is a $6.9 billion global business. that is about 50% greater than it was in 2013. and according to nielson, electronic dance music tracks were the fourth most streams genre in 2014. they surpassed country music and represented 55% increase over 2013. so who is coming to the events? largely millennials. a highly valuable demographic and that is why here at tomorrow world you have sponsors like imbev and t-mobile going above and beyond to target the millennials. and they built a pool so people could hang out here and have access to this demographic. back over to you. >> well the guy running around in the green -- any way, morgan,

thank you so much. morgan brannan. >> that is where you are going. >> i'm not getting close to that. >> i love that set. >> i love the lyrics. >> you belong in tomorrow world. >> evan and jim, thank you so much. that does it for us on "closing bell." "fast money" is coming up. over to melissa lee and the gang. thanks, kelly. "fast money" starts right now. live from the nasdaq markets and time square, i'm melissa lee. traders are tim seymour, steve grasso, brian kelly and goid. tonight the best smartphone on the market for apple, the stock still closed lower. we'll tell you what that has investors so nervous. and xi jinping and president obama having a meeting in washington today. we have the four stocks that are telling the real story of what is going on in the chinese economy. but first to the story that could have serious implications for stocks. the biotech bear market. fallin