our guest earlier said he thinks brazil might be ready to invest in again. i'll leave you with good news. thank you for joining us. >> great interview, good stuff. in the fast lane. see you tonight on "fast money." >> thanks. >> "closing bell" starts right now. get it, in the fast lane. that was funeny. i'm michele caruso-cabrera in for kelly evans at the new york stock exchange. welcome. >> good to be here. yes, feel better kelly. >> i'm bill griffeth. stocks are lower. it's close right now. we have the dire market warning from billionaire investor carl icahn getting a lot of buzz. scott wapner spoke to icahn about his fears and scott will join us with the highlights in just a moment. that should be very interesting. >> for sure. he made a movie about it.

another big warning came from highland capital's mark ocata raised a red flag about china in mid-july on this show. since then the shanghai index down 22%. good call. >> yep. >> what's he worried about now, where is he finding opportunities? we will ask him in an interview. >> we'll welcome back mark. the biotech blood bath, getting a reprieve today, and we have one analyst who says maybe, maybe this beaten up sector may have hit a -- finally hit a bottom. we will see. >> frightening to call, isn't it? >> it is. to bes the first to step out there. we have an analyst that says maybe we're there. we'll see. >> this will be interesting. republican frontrunner donald trump may get mad about an interview we will do this afternoon with steve forbes who says trump's net worth is less than the $10 billion claimed. he will join us exclusively with the details. remember donald trump has sued other people for making those same kind of statements before.

>> look forward to talking to steve about that, i know. that and other billionaires in the united states. let's get you caught up on the market today. the dow, really hugging that flat line, but now down 24 points. and so that puts us back below 16,000 right now. the s&p is down about 4.5 and the nasdaq is down 31 points, once again the worst performer today, now at 4512. let's get to carl icahn's warning. scott wapner, scooping that story first thing this morning. >> hey, bill, thanks so much. so-called financial engineering, tax loopholes, stock buybacks and low interest rates causing bubbles in several asset classes drawing the ire of icahn in his video titled "danger ahead." >> the earnings that are being put out today, i think they're very suspect. when you have companies today, these are companies i short, selling at 30 times earnings, 28 times earnings, and have no net worth because they keep buying

back stock, and yet analysts look at it, quarter to quarter, if your earnings went up for the quarter your stock goes jumping up. >> not just corporate america, he's criticizing icahn also taking a big shot at congress, which he calls dysfunctional, unable to get anything done. >> we need government to get out of this gridlock, to get out of the dysfunctionen. a quintessential example repatriati repatriation. everybody agrees it should be done. it's having a food fight over it's almost funny, if it wasn't so sad, who is going to get the credit for it. is it going to be the republicans that are going to put their foot down and say we're not going to charge any tax and take it back or the democrats that want 15% to take ta money back. so the whole thing is absurd. >> okay. so what's icahn not worried about? his largest holding apple telling me in a phone interview he's sticking with that stock, revealing the size of the position is, quote, the same it's been. mr. icahn telling me he thinks

the stock is still undervalued but acknowledges a broader market slide could hurt shares in the near term and i asked why he's built such large stakes in the mine or shener energy which suffered mightily in the crash and he told me he bought freeport because he thinks copper prices will recover in a couple years, like's cheniere's contacts. in fact, last night he filed a new 13 d revealing a bigger stake in the lng exporter. he made it clear these are long-term plays and while he is more hedged than he has been in years he's still probably a little long than short. we did speak about china as well, with mr. icahn telling me china can take care of itself but things could be worse before they get better. guys? >> hey, i'm curious, i haven't heard why he did this very highly polished video and is this sort of a campaign video for somebody who wants to be treasure secretary some day? >> you know, first of all on the

treasury secretary thing, i asked him about that because i think donald trump has floated his name and icahn laughingly said that's great, i'm flattered but not going to washington. i think it was a matter of he's been warning on this topic of high yield and other bubbles in the market for several months, and as he raised many months ago, he thought more people should have spoken out in '08 about the perceived problems then and maybe we wouldn't have gotten into the financial crisis or the great recession. i think he looks at this as part of his duty as an investor and maybe as an elder statesman investor at that, and i think clearly he wants to warn people and he did it i think because he could. at the end of the day he wanted to and the fact of the matter is he could and he knows that we'd be talking about it. >> in light of the glencore situation, i thought it was interesting to see where he is willing to commit money within the energy sector because you have to be incredibly careful within that group because those

stocks are not the ones specifically he's talking about but in a commodity boom and bust cycle during the bust some of the guys can absolutely go away. you have to be careful but can you make a lot of money if you get it right. >> you can look at the pullback in any number of place and especially in energy and mining and the big stakes that he's built, and continues to build, right, i told you about the 13 d he filed and you look at that and say wow, why is he doing that? and i asked him before about the freeport position and said the stock is down 70% from its highs to where it is now, why did you do it? he said that's why i like it. that's why i like it. just like any investor, not going to get everything right but at least looks at the pullbacks and says maybe it's worth a shot and at least in freeport and cheneyre which he underscores are longer term plays now is the time or close to it. i don't think he thinks he can pick the bottom in the names any better than anybody else, he just hopes he's close. >> yeah. i mean it's easy to say, buy

low, sell high, when the moment comes to buy low, you think is this going to get worse. it's really hard to actually do, so all right. >> we'll see his -- scotty, good job. tune in tomorrow to "halftime report" where carl icahn will join scott and the group to talk about his views. >> that's always fun. >> should be a lot of fun. our "closing bell" exchange for this tuesday. we have jim lowell and steve grasso from stewart frankel and our own rick santelli. steve, i mean, pretty quiet day today, what's the catalyst here we're waiting for? lot of people are starting to sniff maybe a bottom in biotech, some have been setting up for a bottom in energy, is that the game we're playing right now? >> i don't know if you could talk about any bottoms anywhere. the overall macro market really needs to make a significant bottom before any of those players in the sectors are worth

investing in. 186 is the recent low in the s&p cash, flirted with it today, on the day's lows. the market has to show stability, which china closed the end of the week into next week you maybe get a reprieve. month end pension fund rebalancing, goldman put out a number of $27 billion that has to be invested or put back into equities because of their underperformance recently, so maybe you get a little bit of a bid, but you know where i've been, negative on the market. i think we go much lower from here, but it's not a one-day event. >> how about you, jim? are you as nervous? i look at this indecisiveness and wondering if everybody is waiting for the jobs report later this week? >> i think you're right, michele. it is the jobs report. we know from last week's speech at umass amherst here in massachusetts from fed chair janet yellen that inflation is not the issue or the trigger for the looming rate hike. it's going to be the health of our jobs market in particular. so i think the market chasing its own tail today as a direct

reflection of the fact that it knows tomorrow it gets adp private sector precursor to friday's broader based jobs report. no matter what happens inside those jobs numbers and no matter what happens in terms of speculating when the fed does or doesn't raise rates we wouldn't be surprised if the market continues to trend a little lower. i don't know how much lower based on fear alone, so far we really have seen no fundamental evidence that makes us think good active managers in this market aren't inevitably going to benefit from steep sell-offs. we take biotech that sector sold off basically on a clinton tweet and then a follow-up from democrats seeking a subpoena from valiant pharmaceuticals. that's years away from being a potential threat. >> did you step in and buy at that point? did you buy biotechs at that point? >> health care we like overall, we're overweighed. hartford health care has about 32% of assets in biotechnology names and feel comfortable with

the managers there and their ability to balance biotech risk and opportunity with broader-based slightly lower risk health care holdings. >> hey, rick, curious, your response to carl icahn's warnings that, you know, we're setting ourselves up for another bad one here with all the financial eng fearing, the accounting engineering and all that's gone on on wall street the last several years, are you as concerned and do you think the markets reflect that in any way? >> no, absolutely. i guess what i would say to carl is, welcome to the club, better late than never and i would say that it's all about timing. i think everything he said is absolutely true. it was true years ago when others said it. the real issue is timing. all of these things will come back to haunt us at some point. how they metastasize, which markets are affected the most will depend on global dynamics if we're the best economy in an average economic environment maybe when the rest of the globe feels some of the glide paths going lower and ours as well,

it's still united states may draw capital. it it's all about timing. hey, phil, when on an elevator and want to go to the 20th floor and on the 5th and it's going down, do you get on? >> i raise a question, steve grasso, when he says he wished more people had spoken out earlier during the last crisis, about what was about to happen or what they thought, i mean if ultimately a lot of people bought assets at at one price and everybody discovered oh, they were worth a lot less getting from here to the bottom, it had to happen, right? i mean if even if you knew the warning was coming, the sales had to go. how el are we going to do it? >> i mean, we all went to school during that financial crisis ob on this very floor no idea what was happening on a day-to-day basis, didn't know who was going out of business, what sector was going to survive, where to put your money. we all went to school there. the same thing never happens twice unfortunately, it will happen in a different way and it will knock your head off totally

unexpectedly. it's going to be a hairy couple of years, months to years . no one has any clue but the overarching message it's too early to be buying into this market. >> pretty bearish. >> happy thoughts. >> i know, right. happy thoughts. thank you. >> i mean -- >> see you later. >> if everybody sells because of the warning everybody sells and the market goes down it's painful. we all got there eventually, just sooner rather than later. >> you could say there's a bit of complacency there is a lot of selling. been through a prolonged period of buying on the dip. >> yes. that's been true for so long now. >> it has. it has. we've got a lot coming in the next couple hours. 45 minutes left in the trading session today, and the dow flirting with that 16,000 level. right now, is at 15,990, down 11 points. still watching more selling in the nasdaq today because of the biotechs. >> right. the biotech storm definitely

has, quote, definitely passed. that's according to a leading pharmaceutical trader. he will make his case and tell us what he's buying on the cheap coming up. >> also ahead, highland capital market mark okada at post fine waiting for us to talk about china's hard landing. the last time mark was with us on this program, he talked about watching for a big decline in the chinese markets. find out what he thinks now. is it time to get back in or more pain to come? that when we come back on "closing bell." stay tuned. this bale of hay cannot be controlled. when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks with chase for business.

and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it.

chase for business. i'm a senior field technician for pg&e here in san jose.

pg&e is using new technology to improve our system, replacing pipelines throughout the city of san jose, to provide safe and reliable services. raising a family here in the city of san jose has been a wonderful experience. my oldest son now works for pg&e. when i do get a chance, an opportunity to work with him, it's always a pleasure. i love my job and i care about the work i do. i know how hard our crews work for our customers. i want them to know that they do have a safe and reliable system. together, we're building a better california. welcome back. not a lot of selling today and i remember yesterday amid all the selling, one of the very few bright spots was johnson & johnson, positive on a big down day and today gaining ground after deutsch upgraded the stock to a buy from a hold. the firm saying that j&j's $34 billion in cash and marketable securities gives the company freedom to pursue mergers, acquisitions and licensing opportunities and you can see of the dow 30 stocks today, roughly

half are positive right now. >> that's a sign of a little bit of a scary market, when analysts start focusing on how much cash does a company have and what can they do with it, et cetera. >> don't you love when analysts tell companies what they can do with their cash. i know they love that. >> back in july mark okata warned us about china and his worries there. >> a lot of money is coming out of the chinese market for a good reason and i think it's because the economy is probably in a hard landing. >> well, he was spot on with that call for a china hard landing. what's he watching now? hey, let's ask him. mark is back with us at post nine at the new york stock exchange. good call, even though it's an unfortunate one, right. >> it's the reality. you have to call them as you see them, bill. >> is the contraction over at this point do you think over there? >> i think there is certainly a lot of policy moves that they can make. they have a command economy right, there are things that

they can do that we certainly can't do, but i think you have to watch their cursy markets a little bit. i mean this thing is setting up for them to be devalue the yuan. >> a lot more? >> yes. >> the yuan is very strong compared to the other -- >> wait. the chinese president said multiple times when he was here last week he's never going to do that. >> well, again, there's some pressure here. i think it would be a good move to really turn their economy around, but, you know, look this is something where we're kind of in unchartered territory with the chinese economy given the scale and size of it. i think it's something that people need to watch but as i said last time, you know, let's take some money off the table, hopefully investors listen, they raise some cash, because there are things to do now, but, you know, figuring out china will be a long time coming. >> so you're still concerned about equities and bonds here in this country as a result? >> signal. what's the signal now. if china is not the focus now

because hopefully it's priced in and you did something about it, what's the new signal? what the fed announcement told us and the markets have done since the fed announcement, is that good news is now good news and bad news is bad news. we were in this place where good news was bad news and vice versa because the fed was always there to bail you out. when something was bad coming out in the economy people felt they were going to have more bullets and renate again. >> right. >> what we've seen since that announcement right, stocks are down, a lot of things down, because they're coming on and saying we're focusing a lot of things, global growth and not getting inflation right. inflation numbers are going down again. so i think the market has to readjust to a mindset where good news is good news and bad fuse is bad news. from that standpoint i think the message is actually really positive. if you're an active trader, active manager, i think it's actually a great time to be in the markets. >> okay. what if you're that long-term

investor and don't want to lose too much? >> right. if you're a long term investor hopefully you've stayed defensive. i think lower for longer in this scenario is probably lower for longer not just for bonds but stocks too, so in that scenario you really stay defensive, that j&j thing you were talking about earlier that's a defensive stock. >> right. >> but -- >> utilities another example, that usually rear up on big down days. >> exactly. but where we're focused most is in credit. we're a big credit manager, a big part of our book. credit is different than equities fundamentally. you have a maturity, you have a coupon, you have security, if you're in bank debt. there are things that are going to support you to the extent that liquidity moves against you. certainly we've had a liquidity change in the marketplace. people are selling at a high yield, out of loans, creating opportunity for long-term investors, bill. if you're an investor this is the time where you sit here and look for those situations where

you should be averaging in. >> to read the imf just warning about lack of liquidity, every major institution in the world has warned about lack of liquidity in the bond market and acute in your world. >> that's right. >> high yields like having to call ten desks to try to buy and sell something. is it that simple? the price can change by the action of selling. what are the chances though, of some big systemic event because of it, the toe nalty that seems to be coming out? >> it's a perfect concern and i think that investors that aren't focused on it are going to be in a bad place. if you -- but we've been focused on this for the last year and a half. >> right. >> this is not something new for professional investors. so your risk management needs to be good in here, your liquidity management needs to be good but again, if you're talking about credit assets where you have a maturity and coupon in collateral and goes from being

at par to 80 cents on the dollar, it's like buying a luis veeton purse on the ground and 50% off, it has value to it and should make you excited. >> you haven't lost anything until you sell it if you hold it to maturity you get the principle as well. >> the right fundamental bet. we're entering into this market. >> it speaks to what we were talking about last segment, classic buy low, sell high. identifying low is very subjective. >> and scary. >> you don't know until it's over. >> right. >> most of the assets we deal with are marked to market assets, equities, currencies and even the treasury market because the dates are so long. >> you like an video investor have to mark the prices in your books every day, if i hold it at home it's down 20 cents. >> hang back again. >> i think the investor psychology of not being able to buy low matters when you're talking about a valuation asset class like equities or like

currencies or something where there isn't a fundamental reason why they need to go back up to the extent that sentiment is bad and continues to be bad stocks are going down but credit again can be a place where -- i want to be positive about these things, there are certainly opportunities popping up because of this marketplace and we want to be focused on those. we have dry powder to use it where we have good business plans, good things to buy. >> right. >> and then we'll see. over a long period of time those are great opportunities. you really build these 10, 15, 20% return opportunities in the portfolio but you got to know what you're doing. >> wait for the right pitch to get that home run. >> yeah or singles and doubles are good too. >> yeah. >> mark, always good to see you. >> great to see you. >> thank you. mark from highland capital management joining us at the new york stock exchange. >> we have 37 minutes before the bell. the dow jones industrial average they took away the screen over there. >> see it right there. >> it's flat.

all that stress down 43 points, lows of the session, s&p lower by 8, nasdaq lower by 48. >> coming up, our phil lebeau hits the road in a self-driving google car. >> really? >> yeah. taking his life into his own hands or somebody else's hands. plus tesla muscles into the high-end suv market. we'll have that story coming up. >> coming up next, biotech trader what he has been buying in the recent sell-off. so what's your news? i got a job! i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it!

(friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition!

dentist appointment when my teeth are ready? ♪ can it tell the doctor how long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver?

biotechs we are told are off their session highs right now but we know what's been going on in the biotech sector, etf, ibb, the symbol for that industry right now, taking a beating over the past few weeks here. >> but our next guest says the worst may be over, according to him, len from stock doc partners on right now, a fund manager, you think the worst is over in biotech why? >> well, i think that the mult pls have come down for the companies earning money from about 24 times next years earnings to about 17 to 18 times more in line with the s&p, more in line with major pharma and i

think there are several companies, so specifically where i think the prospects are much better than the analysts expect so i think on the significant price decline we can buy. >> you sound very rationale and lonlcle in the way you're describing this. would you say this sell-off has been rationale and logical in the way it's been carried out? >> no. one of the first things i learned many decades ago was that the stock market takes the escalator up but the elevator down and we've seen that and you guys on tv have talked very correctly about the influence of etfs which weren't around a decade ago and how that's incrementally exacerbated the decline as it also caused the rallies to be stronger. so i think you've seen a lot of confusion in the market, both amongst generalists, for be investors, as well as some of the people who focus on health care in this decline, trying to separate out what's real from a drug pricing standpoint versus

what probably isn't and i think that's left a lot of opportunities at the current level. >> in the early days of biotech they used to be the one trick ponies, right, and they were going to make it on one drug or not but a lot become big institutionalized almost like straight up pharma companies, where are you putting money right now? i mean if -- as an individual investor might thought would be in all this uncertainty go with the big guys who have certain revenue is my thought, but maybe that's not where the value lies. >> you're right. most of the companies called biotech, are really nascent drug companies that have far fewer drugs than a major pharmaceutical company has, and those major pharma companies 40 years ago only had one or two drugs. i look for areas of major unmet medical need which i think is help together, nephrology and

oncology are areas where certain drugs will do better than wall street analysts expect. >> i have to go. do you have one name? i have to go, but are you ready to name names yet? >> sure. i would love to. i think that the pcs k9 inhibitors used to lower cholesterol will do twice the revenues that analysts think in the year 2020, and -- >> who makes those? >> i'm favorable towards regeneron and amgen. i also like gilead and juno. >> all right. so some of the name brands with he know, we're familiar with. thank you for joining us. >> what they refer to in the notes as the fab four. >> yes. >> all right. >> for that reason. time for cnbc news update, here's sue with that. >> hi, bill. here's what's happening at this hour. president obama and cuban president raul castro discussing additional steps each of their governments could take to deepen cooperation. it happened during a rare meeting the two had on the sidelines of the united nations general assembly this morning.

edward snowden found a new megaphone in twitter. the former nsa worker who leaked classified documents about government surveillance started tweeting today. he has 185,000 followers just one hour after his first tweet which was, can you hear me now? shocking video shows drug smugglers transporting drugs on a spanish beach filled with tourists in broad daylight. it happened last saturday. the video shows some shocked tourists watching as the smugglers casually carried an estimated 4400 pounds of drugs from a boat on to the beach. youtube unveiling shopping adds so viewers can shop from the videos. they're watching. a google customer survey 1 in 5, 18 to 24-year-olds go to youtube to find out what's cool to purchase. that's the cnbc news update. back to you guys. >> up to half a million now. in four hours. >> i heard his first followers was the nsa.

i don't know if that's an urban legend. >> that's actually the only person that he is following or entity that he is following is the nsa. i love that. >> 29 minutes before the closing bell. the dow jones industrial average is lower by 38 points. the s&p 500 lower by 7 and the nasdaq lower by a full percent. >> down another 1% as whaeds to the close. two companies two visions for the future of automobiles. phil lebeau test driving as they say the google car, plus tesla jumps into the luxury suv market with its all electric model s coming up.

the driverless google car hitting the road today. >> and cnbc's phil lebeau had a front row seat or maybe a back seat, i don't know, joins us now with his take on what may be the future of driving, phil? >> hi, guys. thank you we're here on the google campus joined by chris the director of the google self-driving prototype car program here at google and as we're talking with you we will

roll video of the drive we've gone on in the google prototype. this ride today, this is all about giving people a little better perspective on where we are when it comes to self-driving cars. give us some sense of how far away we are from this becoming an everyday reality? >> it's been amazing to see how the technology has developed over the last few years. we don't really have a set timeline because the first and foremost this is about safety and we don't want to rush that. but our team's goal is that my 12-year-old son won't have to get his driver's license because he will get places in cars like this. >> when i was in the car, one thing that stood out, we couldn't show the front of this screen, basically the dashboard, it's not a dashboard. no steering wheel but a screen that tells you if there is somebody on a bike, or if there is a pedestrian or a car and the prototype automatically either maneuvers around it, slows down, whatever needs to happen happens. have you encountered those instances when for whatever

reason the person stops unexpectedly and the prototype says whoas this is unexpected? >> absolutely. seen lots of interesting stuff on the road. one of my favorite stories about this woman that was in a wheelchair chasing a duck and she's out in the road, the duck is running around, do a figure 8 in front of the car, something i would have never that the car would encounter, slowed down, stopped, let her get out of the road, the duck out of the road and carried on. all kinds of cool stuff. >> you've gop on the record as saying google is not in the auto making business. what is the end goal of the project? >> the end goal to get this technology out so everyone can use it and we think the right way to do that is in partnership with those folks, the car companies of the day who make the vehicles and do an amazing job doing it for 100 years. >> licensing it? >> we'll figure that out over time. >> chris, director of the google self-driving project on the google campus, i have to tell you when you see the video of me in the car you will see a smile because it's cool when you're in the car and it's maneuvering

around it's something when you experience it for the first time you will say i get it, i understand what it's all about now. back to you. >> i can't wait. >> there's no lack of you don't feel a loss of control? i mean i always -- i fell like i need to be controlling the situation, but you aren't, right? >> no. but understand this was a closed course. if i was on a road here in mountain view i meet feel differently, but on a closed course, they have a couple obstacles, somebody who rides a bike in front of the car, another car that goes in front of the prototype, i didn't feel any loss of control. i didn't feel at any point, hang on we're going to crash. it felt completely normal and that's what they're shooting for a normal experience of riding if a car. >> interesting. great stuff. >> i can't wait, phil. >> thanks, phil. see you later. >> i can't wait for driverless cars. they will not be called driverless cars. >> imagine a driverless car in the middle of new york city.

>> i can't wait. they used to call them horseless buggies and then we -- we have to come up with a new word for the driveless car. >> you do that. >> okay. >> tesla by the way could soon be driverless as well, but before that happens, it's entering the luxury suv market today. could the all-electric model s shake things up? we want to talk about that. >> joining us is ben, good to have you here. >> thanks for having me on no a crossover supposed to launch in 2013, is this going to move the needle when it comes to tesla? >> i think it will. so our recommendation has been to buy into the launch and i consider the launch taking place over the next weeks to months when we get the euphoria around the reviews and the awards that go along with a car like this being introduced. we think that they'll come out with a car that will be better than the model s and they'll take what they've learned from producing the model s over the past couple years and transport

that into the model x. >> what would be different then? what have they learned? what are you talking about? >> yeah. so i mean asthettic things like fit and finish. if you look back at the first couple thousand of the model ss produced, they weren't as good of a quality on a fit and finish perspective. . the battery, longer range on the newer model ss available. the interior, receives a lot of negative feedback in the early model s productions. they've actually stepped up the interior for, you know, to compete with the s class type mercedes or now a porsche type model out there. >> there was a time when there was a stigma attached to -- as far as i was concerned to electric cars. the performance wasn't there. the look wasn't there. and, you know, u.s. car makers were trying their hand at them in times. do you think it's tesla that's finally taken that removed that stigma and you know you can have

a performance car, you can have a cool looking car that's also all electric? >> yeah. i think that's one of the big things occurring here with tesla coming to the market, is the brand value, and i think the importance of the x it shows they're not a one trick pony in the development of a good looking car. if they can do it twice, then i think they get the attention of the big auto manufacturers even more so in a segment of the market that's growing very rapidly and very important to companies like porsche, companies like bmw. >> i look at the one year chart and the volatility intense over the last couple months. i mean is that over or somebody who invests in the stock knows on occasion they're going to have to white knuckle it? >> so the way that we look at it is that, you know, i think there's a couple opportunity sets open for tesla. they've identified so far publicly the automotive opportunity and the storage opportunity so, you know, we see

a lot of yoeof growth ahead. building a car company, you know, takes capital and it's not without execution hiccups that we have seen that create volatility in the past. i thinks the shares in this type of market have done very well on a relative basis and they outperform over the next couple months as it gets out into the marketplace. >> about $245. where do you think it goes to from here? >> we could see new highs over the next couple weeks all-time high of about 290, 291. i think we can break through that and go higher with the introduction of the x. >> that would be a big move. >> we will see. yeah. ben thanks. appreciate it. >> thanks for having me on. >> ben joining us today. 18 minutes left in the trading session here. they took the numbers away from us, didn't they. it's down 19 points on the industrial average right now, the s&p down 5 and the nasdaq kind of holding with that decline of 1%. >> the numbers are usually on a big screen over there but now it's a flag of some sort. >> we have a flag.

>> presidential hopeful donald trump declares continuously he is worth $10 billion. maybe not, says "forbes" magazine in its newest richest americans list. editor in chief steve forbes explaining the numbers he found later on the "closing bell." here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.

[ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from.

we love to travel - and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. explaining the numbers he found so i know how important that is.

explaining the numbers he found let's get to seema moody at headquarters for movers as we head into the close. >> good afternoon, michele. let's start off with mcdonald's, credit suisse upgrading the stock from outperform to neutral, increasing its price target from $112 to 100. reynolds american trading at new highs after the tobacco producer announced it will sell its natural american spirit business, japan tobacco group will pay $5 billion in cash for the brand. a number of macau casino stocks falling to fresh multiyear lows after one of the biggest junkets which facilit e facilitates loans for high rollers warns it mate have to wind down operations if gamers continue to decline. panera rated outperform a new coverage at tell zi advisory group pointing to optimism about changes in food, marketing and

restaurant design, shares up just about 0.8%. michele? >> thank you so much. >> we have about 14 minutes before the closing bell. the dow jones industrial average is lower by 13 points. well off the lows. the s&p lower by 5 and nasdaq lower by 46 points. nasdaq definitely taking it harder today because of the biotechs. >> i've been looking for art cashin to give me the imbalances but i haven't seen him yet. james lu from jpmorgan funds believes that the markets will react favorably when the fed finally does get around to raising interest rates but what happens in the meantime. we'll talk about it when we come back.

. ten minutes left in the trading session, the dow positive again. art cashin did stop by and said that there is no imbalance either way, buy or sell, flat, paired off as we head toward the close. >> makes sense. >> just felt like it all day today. with us now is jpmorgan funds executive director james lu. and we were talking about during the break feels like a calm before something else is going to happen.

what do you think that is? >> i think the cloud hanging over the market is the fed, unfortunately. i do think yesterday it's clearly different from today not just in market moves but yesterday due to stock and sector specific reactions. whereas today feels more like uncertainty. >> get the jobs report coming out on friday and clearly that will be the last one before the next fed meeting and also -- >> fed officials yesterday indicating they're probably going to raise rates this year. from a timing perspective it would be better if you did it in october. i do, in fact, think that markets would rally on the news of a fed liftoff finally, so we could see some nice little gains at the end of the year. >> why do you think that? we've gotten a hint of that, right. they didn't raise and the market didn't rally, went down instead, right. the market reacted negatively, almost asking for a rate raise in some ways, am i reading that right? >> i would agree with that. we're well past the point where zero interest rate policy makes sense. that's been debated to death. we're waiting for the fed get on

with it. it's understandable why they didn't because of china concerns, global concerns, but, you know, seems like there's a semblance of stability and the super confidence numbers that came out were positive. none of that changes. the u.s. story looks good. because of that i still like equities going through the end of the year. >> what do you think of carl icahn, he produced a video and says things look terrible setting ourselves up for a big disappointment? a brilliant investor, give him that. from a macro perspective i don't think earnings have been driven by buybacks. i do think that there are potential causes for concern with the zero interest policy we've had. the thr that's true. almost lazy to say there's an equity bubble because of that. when you look at earnings you would have to argue there's been a bubble or artificially inflatsds earnings because you look at the p/e ratios and they're not stretched at this point. >> one thing about carl icahn's videos. he sends out this danger signal.

if you're that worried you wouldn't be long anything, right? you would wait to get in on the stocks when they were even cheaper. kind of like bill ackman way back when long target and short on the mortgage insurers. if you thought the world was going to be that bad, why would you own anything at this point, right? >> he says he's hedged at this point our perspective is well balanced portfolios. the correlation between assets, equities and fixed income have broken down recently but it's hard to believe that the long-term correlation isn't still negative between the two. >> see any opportunities right now? >> we do, yeah. so the major are opportunities are still on a sector level for u.s. equities. it's true that health care has take an beating but look at other sectors like technology and consumer discretionary we think the long-term themes are intact. the fed will raise rates this year even though they have been so far but once they do the cyclical sectors should outperform. >> james, good to see you again. >> thanks for having me on no james lu, joining us at post nine. >> coming up next, we're going

right -- coming back with a closing countdown. >> see how we do on the bell there. after the bell a new media feud may be brewing between presidential hopeful donald trump and "forbes" magazine, the publication's editor in chief, mr. forbes will join us to offer what it says is trump's real personal wealth. you're watching cnbc first in business world wide. >> not as high as he says? opportunities aren't always obvious. sometimes they just drop in. 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. why pause to take a pill when a moment spontaneously turns romantic?

and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. 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 symptoms of an allergic reaction, stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com

when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

about three minutes left in the trading session. we head toward the close and the countdown, mary thompson joining me on the floor of the new york stock exchange. let's look at the dow. it's been a meandering kind of a day. look at this. dipping above and below the unchanged level and never straying far away in either direction and we are heading higher again almost back to the highs of the session. we're up 57 points. two of the catalysts recently let's see how they've done. first energy, wti crude and what it's done today. lately it was lower, today higher, a gain of 1.73% back above $45 on wti crude. the other one, the biotechs. we all know seven straight down days for the ibb in this particular case after the hillary clinton tweets recently, today it was higher, but then generally started slipping to

the downside and is down a fraction right now, mary, as we head to the close. but net net, a pretty quiet day really otherwise. >> quiet day. i think a couple interesting things. you pointed outs the wti was higher today. not so the case within the energy sector. the stocks were mixed i would say. we saw that reflected in the action in the energy group as well today. number of things that traders are talking about and what as you pointed out has been a quiet session what happens down the road. if we avert a government shutdown now are we going to get one in december? that's something that may keep investors on the sidelines or will this force the federal reserve to raise interest rates ahead of that government -- possible government shutdown in october? you had fed williams talking about it, rate hike needed about -- >> isn't it interesting, two days before the deadline for the government to come up with those spending bills and it's not even a topic of conversation right now. i mean we either expect it's going to happen or, you know, soon after that, it hasn't

affected the markets to any great degree here. >> both boehner's resignation also suggested it wouldn't happen. >> at least not yet. >> with a short-term spending bill would take us out to december perhaps when we have the next fed meeting. >> yes. >> wouldn't that be a thing of beauty. credit markets also very quiet right now as we get ready for the big jobs report on friday. >> yes. that's a focus and then, of course, after that we start go into the warning season before the earnings season comes so that's a number, that's what else investors are looking for and whether we will have this earnings recession a number of people have been talking about. i would say an interesting day in that you saw the brief rebound in biotech number of people were wondering if we saw capitulation yesterday, doesn't appear to be the case at least today. >> at least not yet. thanks, mary. see you later. so we're going out with a very, very poddest gain -- modest gain for the dow and s&p not so for

the nasdaq. steve forbes coming up how much donald trump may be worth and former labor secretary robert rice also joins us. he says there's never really been such a thing as a free market. all that plus more coming up on the second hour of the "closing bell." prime minister of the netherlands joining "closing bell." welcome to "closing bell." i'm michele caruso-cabrera in for kelly evans. here's how we're finishing the day on wall street. a highlight, pretty flat session. dow higher by 44 points, a gain of a quarter percent, s&p higher by 2 points, call it flat and the nasdaq lower by 26 points. that rallied into the close off the bottom because it had been lower by more than 1%. mike santoli from yahoo! finance is on the set. fast trader guy adomi, with today's market action or lack of action. guy, what was the problem.

indecisive trade because of the jobs report on friday? >> it's interesting. we basically closed unchanged but looking at the context of where we've been over the last few days, huge sell-off yesterday you would have thought the rally we saw this morning would have held its -- basically held on to the gains and built upon it and we didn't. one point today the s&p was down about 8 handles, closed to unchanged. not going to make a big deal out of it but six months ago today's rally would have continued and followed through. didn't happen. that continued strength in the bond market some of the high flyers, not necessarily high flyers but some of the stable stocks lost some momentum specifically, under armor and nike. lot of cross currents in what seems to be a flat day. >> and mike, we already had a fund manager on last hour who's searching for a bottom in biotech wondering if we're finding value. >> i would look for bottoms elsewhere. you have so many stocks shah that have been owe liberated

over a longer period of time. this is a gut check for growth leaders like bioteches. you've seen rolling bear markets through the material stocks, industrial stocks, and the idea that people are still fixated on the bioteches because the one thing working late that is an issue. i think that you really want to look for the entire market to show some stability and not to miss an opportunity to rally as guy said. you had a setup today, oversold market, pretty close to the lows from august, reached last night. you had the kind of tilting to the upside in the morning and didn't follow through and a billionaire with a doom's day call would have been the perfect day to go up in its face. >> guy adam my, what did you think of what carl icahn said in his warnings about the markets? >> a lot of things i think about some which i don't want to share on air but in terms of the warnings on the market a lot of some of the same things i've been saying a lot of people say now for quite some time. i'll just sort of synthesize it to this. the bond market has been trying to tell us all something i think for the last six months to nine

months and a commodities market are also trying to tell us something. you can't look past the fact that crude oil has gone from 110 to 45 in eight or nine months. to me it all points towards deflationary pressures, something the fed will try to combat, but something that they can't defeat. deflation cannot be defeed with the arsenal they perceive themselves to have it can't end particularly well. coupled with that the currency moves and volatility in markets overseas, the nikkei was down 4%. we don't talk about it anymore because it's become so commons place but if you think about it that's a significant move in one of the biggest markets on the planet. >> i think carl icahn is totally correct in fix ating on the high yield market but as guy suggests the high yield market topped over a year ago in terms of its strength, since may, has been kind of gapg out, stocks ignored it for a long time. i think it's been telling you financial conditions have been

tightening. >> a guest in a couple blocks ago if he's so worried, takes a position on things like cheniere and energy stocks, bottom fishing down there. >> thinks copper is coming back at some point. >> here's the thing if you're that worried about something apoc liptic coming those stocks will still go lower, right. seems contradictory to say that and be long on a bunch of other stuff. >> he's long the stuff that's already taken a lot of punishment. put it that way. he's a bottom fisher with the exception of apple which has been kind of like a bond equivalent to be honest how it's behaved since he's owned it. >> bring in another story we've been following, concerns about the health of commodities giant glencore. they have some on wall street comparing it to lehman brothers of 2008, but are things really that bad? cate kelly has the very latest developments on that story. kate? >> today was a big improvement for glencore actually from a share performance standpoint but the markets and banks are remaining on high alert. across wall street over the last two days, banks have held high-level meetings with the

risk managers about the health and future of glencore and what it would mean if the company faced a liquidity crisis. rumors helped fuel the stock's nose dive yesterday even though they appear at the moment to be totally unfounded. in a statement in mid afternoon lun dub trading glencore said it faced absolutely no solvency issues and well on its way to raising 10 billion in additional capital to help bring down its reported $30 billion in net debt. that's as of june 30th. it added it has strong lines of credit and access to funding thanks to its long standing relationship with banks. some of the banks stepped up and glencore's support today, citigroup a key lender and investment banker working on the planned sale of agriculture assets rating glencore a buy which is interesting. citigroup noted the market's reaction yesterday was overblown and a corporate privatization may prove to be a good exit route if things worsen for the company. still it's a developing story, bill and michele, and hopefully

we will get more color tomorrow because glencore managers are set to meet with some of their creditors in london. >> that's going to be one heck of a meeting. >> like to be in that one. >> going on behind closed doors. thank you. >> thanks, kate. >> thank you. with us now for more on glencore from london where the company is traded is gem ma, founder and ceo of mula systems. your thoughts on glencore? the stock specifically or what it says about the current market environment? >> well, what we've seen is a commodity story that's actually revealed a debt crisis because the reason why people are so concerned about glencore is the fact that they've got such high debt levels and when you have any uncertainty in markets, investors start to get concerned as to whether they can service these debts, which means that they're borrowing costs rise and a self-fulfilling prophecy. it means as an investor you have to be aware of the strength of the balance sheet of the companies you're investing in. it has far reaching consequences in terms of, you know, lessons

we should learn for building a portfolio. >> gem ma, mike santoli here, one of the key things for making comparisons to lehman or mf global is the composition of that debt, in other words that short-term funding that they may or may not be able to roll over. is glencore as dependent on those very whimscle markets or the very kind of volatile markets that maybe could shut them off from their funding sources? >> well they have $30 billion of net debt and $18 billion is short-term. which is why the risk is so high. if you think about it the worst time to try to raise money is when you need it. and if you have those short-term obligations, this whole -- the strategy out there that they could dispose of assets quickly when you're a distressed seller you can't always get what you want and the price you're looking for. that's what gives a lot of investors caution. putting this into context, though, the price has fallen by 90% since its ipo just four years ago. which means that absolutely some of these moves have been

overdone. as an investor, you to be able to invest longer term in companies you really feel will weather the storm and a lot more volatility. >> the structure of the company was supposed to be their strength, right if they were mining and they were trading, right, so they had different portfolios et cetera. during the last commodity bust, there was some canadian miners went tripple to single digits and could have bought them in the single digits but didn't have to worry about the fact they have this trading operation suddenly if somebody basically says we're not supplying you credit anymore you've lost your funds they have a -- funding they have a big exposure beyond the leverage issue? >> exactly. that's what's really interesting is the fact that their trading used to offset and reduce the volatility of their earnings overall. but because it was -- it's been so reliant on short-term funding, as soon as you start to see any wobble in any part of a company, these things come to light. it's like that saying, you know, you only see swimming naked when the tide goes out and when it

comes to crunch time that's when you reveal the balance sheet isn't as strong as you thought it was. so that's the concern. as an investor you have to look the at the balance sheet as a whole to see what they're reliant on, the composition is and be much more confident and go for a stronger balance sheet going forward. >> gem ma, good to see you, thank you for stepping in on the important story. see you later. we have breaking news on ferrari and kate kelly doing double duty. what do you have now? >> bill, while i'm talking to european investors i got details on the potential ferrari ipo which could come as early as friday. that's not the pricing, the so-called launch of the road show. could be as early as friday. the deal stimtsds to be about a billion in size implying an overall valuation for the company of $10 billion. pricing depends on how that road show goes, what investors'p appetite in terms of the share price based on the size of the offering and the metrics of the company.

if they're on that timeline and launch this road show friday the pricing of the deal could be as early as the week of october 12th. although i'm told it would be after the 13th based on a technical deadline. an interesting development here in the ipo world for a very well-known and loved brand. there's sure to be a lot of buzz around it. >> indeed for sure. kate, again thank you. maybe we'll see you again soon. guy, i know you -- >> yes, sir. >> i know you would buy the car. would you buy the stock? >> i would love to be able to buy the car. i don't know enough about the company to say i would buys the stock. i wouldn't buy the stock. let's quickly, i know we have to run, go back to glencore. a lot of things that gemma said. think about this, the reason we're not making a big deal out of it here in the united states most have never heard of glencore. i say that respectfully, they don't need to have heard of glencore. i will say this, a trading company domi soiled in natural resource company go back seven or eight years you had a huge trading operation at aig capital, domiciled within an

insurance company. i draw that comparison because sometimes a small group can take down an entire group. i think jim compared today to long-term capital, it's probably a pretty fair comparison. it's always these exogenous events nobody cease coming that marks the tops of markets. >> and i was thinking about it earlier today, the glencore stories has a lot of traders like guy playing the same game they played in 2008. okay, if this company is exposed who else might be. >> exactly. >> think about counterparty trades as well in terms of exposure too. >> and you have essentially forced liquidations by trapped parties in the market somewhere and that's at least a game and you at least want to sell before somebody might be forced to sell and that's been i think the round robin that's been at work for a while. i don't think it's as central systemically as any of these other examples we're talking about. it's really been a slow motion crash in commodities. wasn't as if three months ago we

thought everything was fine with commodities. maybe a bit of a saving grace and cushion. >> seen it coming to some extent. >> guy, good to see you. >> bill, always a joy. love being on with you and mcc. >> and it's mutual. >> oh, guy, i love you too. >> all that good stuff. stick around and catch guy and the rest of the "fast money" crew at 5:00 p.m. before that maybe ten minutes before, guy will be perri scoping at the nasdaq market site and hours away from the first delivery of tesla's model x. phil lebeau will be live at 5:00 p.m. eastern time from that event. look forward to that as well. >> that will be cool. could fears of a liquidity trap in the market be a major red flag for your etf investments? we'll debate that. >> talk about that right now. presidential candidate donald trump says he's worth at least $10 billion with a "b" dollars but "forbes" magazine says he's worth less than half of that. much to the chagrin of mr. trump. steve forbes will join us to break down those numbers. that ought to be very interesting.

hey you're watching cnbc first in business worldwide.

my name is chris hughes and i am a certified arborist for pg&e. i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. at pg&e wherever we work, we work hard to protect the environment. getting the job done safely so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. the environment is there for my kids and future generations. together, we're building a better california.

jo all right. breaking news on gap. courtney reagan has the details. >> that's right, michele. we have breaking news on both gap and ralph lauren. stay with me here. old navy global president steffen larson is going to be taking over as ceo of ralph lauren which means ralph lauren himself is stepping aside. so you got that? we've got the old navy global president to be taking over as ralph lauren ceo. gap is effectively looking for his replacement. larson's replacement. in the meantime it's evp of global product for old navy joel stanton will be taking over. that's some pretty big move there for both companies. steffen larson is largely credited with old navy's turnaround which we know has been the strongest brand of the gap inc company for some time.

larson has been at gap for three years. before that at h and m and now becomes ceo of ralph lauren. michele? >> and ralph lauren is no longer going to be the ceo of ralph lauren? >> it looks like ralph lauren is stepping aside as the ceo. >> that's big. >> he is -- >> still have a pretty big hand in the design. this is news just crossing so we'll have to do a little more information digging to get the full story there, but that is the headline. >> he is human, you know. he's not going to live forever. >> you know, for the founder to step down from such an iconic -- >> it's a big deal. >> incredibly successful fashion brand, because most fashion brands go bust because the minute you're ubiquitous nobody wants to wear you and your stock price declines. he's managed to retain that. >> diversifying the company. >> musical chairs in the retail sector there. >> thanks, courtney. >> see you later. >> etf assets have declined by more than 2% this year with a total of $149.2 billion flowing into equity funds and some saying a lack of liquidity in

the space is the next big worry for etfs. >> let's talk about that. joining us is matt hogan the ceo of etf.com. i mean, we just had a guest last hour talking about this fear that there's a lack of liquidity in the etf arena and that maybe some of what exacerbating the volatility we're seeing in the markets these days. do you buy that? what do you think of that? >> actually basically don't buy it. there is a lot of fear and concern, particularly about bond etfs. >> right. >> but right now trading very well, they're trading at high volume, they're trading at fair prices. there's a little concern about what happens in a crisis, but even there i think investors who don't panic will be protected and work out fine. >> the issue when they panic, thinking of the thousand point loss, that monday morning, where etfs were so badly mispriced. >> yeah. >> no relation to the underlying stocks in them, if you were unlucky and put in like a market sell order on friday and went to sleep and didn't know what was

going on you could have lost a ton of money. >> you could get walloped that's truthly true. so those investors who did have sleeping stop orders did get hurt. you can solve that never having market orders and not panicking at the bottom. you should on etfs and you should not panic and sell win they're at a discount. it's true. but it's absolutely true. they're complex instruments, traded that makes them cheaper more tax efficient. the cost that you pay is you have to be a little careful so you aren't one of those people who get hurt during mini flash crashes like on august 24th. >> and matt, just to turn, a little bit more on to -- into fixed income etfs you mentioned isn't the issue here at least the fear that the etfs themselves promised daily real-time liquidity any moment of the day whereas the

underlying markets might not be able to accommodate that exact type of liquidity minute to minute. is that a well founded concern? >> well, it is a concern in one sense. what you see in a crisis the etf will trade at a discount to its quote/unquote fair value. we can debate which is the true fair value but we saw it during the financial crisis, they dropped 5, 10% below their quote/unquote fair value. they tend to recover that over a couple periods, couple days. the converse though if you are in a mutual fund, you're actually subsidizing the shareholders who panic and sell at the bottom. the irony of the situation, etfs are a traded vehicle, great for long-term holders. mutual funds for buy hold investors could get hurt during the crisis points. again, the message to investors is don't panic at the bottom you will get hurt and don't have limit, don't have market orders. >> and that argument against bond mutual funds i've heard plenty of times from various

financial planners who say don't buy them, buy the bond itself. so let me ask you this, why not buy a corporate bond or a treasury instead of going with the etf? >> well, let's separate those two. individual investors can get a good market in treasury bonds, a completely viable path. god bless you if you want to do that. in the corporate bond space you're talking about 1% spreads just to get in and 1, 1.5% spreads to get out. would you rather do that and pay 2% getting in and out or penny widespreads in the etf and just know you have to be a little bit careful. it takes a little more sophistication, right, but in the end, you're saving 1, 2%, that's real money, just don't panic at the bottom and you will be okay. >> all right. we got to go. more breaking news. but matt thanks for your insights on etfs. appreciate it. >> any time. >> more breaking news on chesapeake energy. sue has the details. >> yeah. michele this has to do with the cratering in commodity prices that we have been seeing

recently, of course. chesapeake energy corporation is now saying that it is going to cut 15s% of its work force because of the drop in natural gas and commodity prices. it says it is going to be part of an overall plan to reduce its costs and better align its work force with the needs of the business given the current environment in the commodities market. that will be approximately 15% of its work force that will be getting pink slips. in addition to that because of those layoffs, the company estimates it will incur an aggregate of approximately $55.5 million in one-time charges in the 2015 third quarter. it relates to payroll taxes, and employees. they will all be paid in cash in the third quarter of 2015. so 15% work force reduction at chesapeake. back to you. >> thank you very much. michael, i'm seeing a trend here. >> yeah. >> and you can lump chesapeake with glencore in some ways. >> with the other north american

based energy companies more specifically and i think the answer to the question is exactly how much of a growth bump we got for the past several years because of easy credit in the back fracking boom. it's working in reverse. i don't think it's necessarily going to undermine the expansion but we don't know how to quantify. >> this year, how much do you have to know about the leverage and your debt to these companies. >> an enormous amount about the leverage position, exposure to cost of production. what's interesting six months ago the story hedge funds sprouting up with opportunistic pools of capital to buy in and haven't had ap easy time. >> this has to keep janet yellen up late at night, right? >> to some degree until it registers in the claims numbers, all those agate numbers haven't really turned. >> if you can get this right, this is a wonderful movement. >> as a trader. >> or a long-term buyer. something that's going to hold on through the worse. >> we talk about glencore stock

being down, 90% down stock down 80% and cut in half, so it's not easy. >> right. exactly. >> all right. we're going to move on here. donald trump may be on the offensive against "forbes" magazine because editor in chief steve forbes will join us exclusively to explain be why mr. trump is worth less than half $10 billion donald trump claims he's worth. >> a plan to double down on millennials help reverse the fortunes of casino stocks, later on the "closing bell."

for the 22nd straight year microsoft's bill gates ranks as the richest american. he tops "forbes" 400 list. the latest with $76 billion, rounding out the top three they will look familiar, number two is berkshire hathaway's warren buffet $62 billion an oracle's larry ellison worth $47.5 billion. we call them the usual suspects. >> right. exactly. these are the americans by the way. also on the list is donald trump, graces the cover of the magazine, ranked a mere 121 with $4.5 billion. >> wait, wait a minute. i thought he was worth more than that. >> that's what he says, worth $10 billion. that's what he claims all the time. joining us for an exclusive, steve forbes, chairman and editor and chief of "forbes."

>> welcome back, steve. >> good to be with you, thank you. >> only worth $4.5 billion. where does that are come from and exaggeration comes from besides his, of course, personality and ego? >> well, i think the biggest difference is in terms of how he values his brand. we don't use brand value in terms of our valuations because we figure if you have some brand value, you're going to find a way to monetize it. until you do we don't count it. he -- i thinks -- he brand values over $3 billion in his estimation. we have a piece in the issue where we consult brand experts about what they think his brand is worth and they range anywhere from 0 to $1.1 billion. so in terms of the real estate side we're lower than what he values it as but the big difference is the brand. he counts it, we don't until you monetize it. >> so you're literally marking him to market, which he's not doing, and what do you -- >> good way to put it. >> what do you think of his

empire right now? is it mostly real estate or, you know, where is his money coming from right now? >> a big part, of course, the bulk is real estate and the emphasis to our editors who spent hours with him and some of his key people the value of his certain properties. and one of our key editor was visiting with trump when the pope came by last week and stopped organ his parade underneath trump tower and truchl said you see this is a great location. you should value this building higher. and so he's a very charming man. very, very -- makes you want to believe. but he went you up a half a billion dollars from where he was last year, so he's not standing still. he's moving up even if you mark to market. >> i guess the spirit of what trump is always bragging about i made all this money therefore i'm justified to be president because i'm good at business. $4.5 billion isn't anything to

sneeze at all. >> not at all. it's a real achievement. >> steve, i would be interested actually of your thoughts about how his wealth pleased publicly with the electorate? in other words, this is an election cycle where a lot of people have been wanting to speak out against wall street or big business and he wants to inflate his wealth perhaps beyond what it is. why do you think he can play the populist? >> because people see him as the real thing. a romney, governor romney, when he ran came across as sort of ashamed of his wealth, got it in a which that really wasn't right. it's nonsense but he wasn't willing to defend it. trump put it out there and because people knew him from a show on nbc "the apprentice" and other tv appearances they knew donald trump, a great entre were you -- entrepreneur and liked him. when he ran for president it wasn't a new figure. people said he's a great success and people want somebody who will kick the political

establishment. trump has come across as a real outsider, can do guy, and he's perfectly fits the mood of the electorate right now. >> reminds me of another businessman who ran for president and self-funding at that time too. but anyway, i forget who that was. steve, does a good successful businessman make a good successful president? what do you think? >> well there are two different spheres but even politicians who have had real experience in politics don't always succeed in the office of the presidency. in fact, our worst president a guy named james buchanan our president before abraham lincoln and the country literally fell apart under him had more experience than anyone before or since. it's great leap. if you have executive experience whether it's governor or business person, i think people with looking for people who can achieve real things. >> i think the spirit of the question is to overuse that phrase during the interview, the

ceos think i run a -- they're dictators of their companies. what they say goes. when you're the president of the country, you're actually constrained by congress. you have to make deals all the time or the security, deals to make you feel zeevi but the way to get business done. it's a fundamentally different process from running a company. running the country is different than running a company. >> it is. that doesn't mean you can't do one and not do the other. the key thing is, in terms of getting things through congress, as ronald reagan demonstrated, an outsider even though he had some political experience, was the ability to persuade the public. if reagan hadn't persuaded the public and got the mandate for the 30% across-the-board income tax cut in his first term it never would have happened. what trump can persuade people, he can turn them off but also can persuade them. >> hey, we got to go but curious, have you heard from trump about the cover and the story? >> no, but i expect we will.

>> yes. i think you will. >> he's sued people in the past for saying he wasn't worth what he said. >> yeah. he's not shy about that. >> he's not. >> trump on line two for you. good to see you. thank you. >> thank you. >> steve forbs from forbes media. time for a news update with sue herera. >> hi, bill, michele, here's what's happening. senate majority leader mitch mcconnell says he and departing house speaker john boehner will begin negotiations with the white house on a two-year budget deal. if successful that deal would run through the 2017 fiscal year. a georgia woman is hours away from execution after the state's parole board denied her request for clemency. kelly was convicted of conspiring to kill her husband in 1997. pope francis' diplomatic representative to the u.s. sent a letter to the parole board on her behalf. a baltimore judge has set trial dates for the six officers charged in the death of freddie gray who died in police custody from a spinal injury.

that sparked that week of rioting in baltimore. up first is officer william porter, that's due on november 30th. and dutch prosecutors raiding uber's european headquarters in amsterdam part of an ongoing investigation over its share riding service. an uber spokesman said the company is cooperating with authorities. and that's the cnbc news update at this hour. back to you, mcc. >> all right. thank you so much, sue. google ceo's speaking publicly for the first time since taking the job. find out what he said and what new products he introduced at the company's event today. >> and later, president bill clinton's former labor secretary robert reich weighing in on the 2016 presidential race and outlines his plan to save capitalism coming up. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines

to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help.

at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

. welcome back. just joining us how the day finished on wall street. not too volatile. certainly not like we've seen lately. the dow up and down finished up about 47 points. the s&p was up 2. and the nasdaq continued to suffer, down more than 1% at the lows of the day but finishing down about half a percent or decline of 26 points. >> google launched several new

products today. investors got to hear about them from the ceo sundar pichai. josh lipton has all the highlights. >> michele, sundar pichai was on stage in san francisco introducing two new top-of-the-line smartphones to show off android's latest features. >> what we do every year is we try to push the state of the art and push the next generation of computing forward and to do that, we build hardware and the reason we build hardware is so that we can work together as we build the next version of the operating system, we build the hardware and ecosystem partners so we can guide the ecosystem forward. >> now the new nexus 5 x built by 5g, 2 inch display, better battery. the price $379. it's available for preorder on the google store in the u.s., the uk, japan and korea. there is also the nexus 6 p

built by waway, latest and powerful processor better camera the price on this $499. nextle us phones are not mass market hits in the way sam sung and apple phones are. for google it doesn't need them to be because its core business remains advertising instead the company's point here is to have a way to showcase the latest android software and google services. google has that with the 5 x and 6 p. bill, back to you. >> all right. josh good to see you. you look like you're in cnbc headquarters. good to see you. thanks. what do you think? >> i think wall street has to get used to the idea of looking at google's new products. it's not a company that wall street thinks of as having product cycles. it's a black box in the best of ways, when things were growing fast. i don't know that this is going to wow anybody. google stock has given back half of the $150 billion pop but own half. >> let's not forget this is not

going to be a true google phone. >> that's right. >> alphabet phone. right. this is the -- that other new xep that they're going to form here that goes with the whims of ser gay and larry. >> and even with that, the revenue and profit streams are not that clear to people how they come back from the android ecosystem. >> every time the google earnings report comes out i look at it and like, oh, right. this is all search. think about what we've done today. two stories about google, few products, the car, the driverless and ultimately the numbers come out, search. >> and that could change with the restructuring and the way they're going to recategorize things and give a window on the bottom line exactly what goes into it. >> all right. >> cool. >> we will see how well the -- what is it called the 6 p. 5 x and 6 p. >> can't remember. >> come on. >> right. >> forget roulette, games of

chance are not drawing millennials to casinos and they're working on strategies to appeal to younger people. jane wells reporting on what's working and what's not. she's in las vegas. >> but first, billionaire investor carl icahn taking a turn from buying stocks to addressing public policy listed growing inequality as one of his top concerns for both wall street and washington. in a recent paper coming up next, former labor secretary robert reich will weigh in. then tomorrow you can catch icahn himself at foon on the halftime report. don't miss it. i'm here at the td ameritrade trader offices.

ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

things we build and it'sit doesn't even fly.zing we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us.

we have a market alert on the oil inventories. sue has the deails. >> a surprise build in crude oil inventories taking crude lower in after hours trading. crude stocks rose last week. they rose by 4.6 million barrels in the week between september 25th the week of september 25th. the estimate was for a build of only 102,000 barrels. that is taking oil off its best levels of the trading session in afterhours trading. back to you guys. >> oh, boy? thank you so much. that will have an impact tomorrow. >> it will definitely. >> yep. >> income inequality remains a hot issue in america especially among the 2016 presidential candidates. our next guest is out with a new book focused on the disparity and what he thinks we must do to rebuild the country's economic

system. >> welcome back robert reich, professor of economics at university of california berkeley, cnbc contributor former labor secretary his book called "saving capitalism for the many not the few" it's available starting today. good to see you. welcome to new york city as a matter of fact. >> nice to be here. >> how do we save capitalism? >> simply, we make sure it's working for the majority and right now there's a lot of anger out there if you haven't noticed in the political culture because some of the -- so many americans feel we're working harder and not getting ahead. the first recovery in living memory in which median household income has dropped during the recovery. so people are -- feel like the game is rigged and they are hearing it not only from democrats but also from republicans, inequality is a big deal. >> is that the domain of monetary policy, fiscal policy or, you know, how do you do that? >> most people don't separate monetary and miss call. for most people they don't even separate economics and politics an the whole thing is the system and it's not working.

and i think that's why honestly, from the right, donald trump and from the left bernie sanders are surging and the establishment candidates are not doing well. >> with you worked for the clintons and you were labor secretary under bill clinton. are you shocked to see the poor performance of hillary in this? >> you know, as we were starting to talk about before, michele, if you had asked me a year ago who would be the two emerging leading candidates republican and democrat i would have said jeb bush and hillary clinton. hillary clinton still is the leading democrat but i would have thought the two of them would be shoo-ins. i think what's happened transcends hillary's particular issues on e-mails or jeb bush's flubs. i think it's really an anti-establishment backlash against what's perceived to be the ruling class. the people who have been in charge. now granted hillary has not been

president but in the public's mind the bushes and clintons have been in charge. >> a candidate trying to address the sense of unease out there, unfairness that public feels, but nobody's really getting at it in really in a specific way, so how should we think about inequality? how should we think about making capitalism work for the many? it's been presented as this is technology shift, globalism, these are these forces that can't be fought? >> mike, i don't think it's only technology and globalization because you look at germany and other countries where you have the same forces, globalization a bigger force in germany and the median wage keeps on going up an there's not nearly the degree of inequality, the top 1% is not carrying on as much of the national income so it can't just be technology and globalization. the third ingredient nobody wants to talk about here is politics. you have -- political system that is awash in money. the money particularly citizens united is coming mostly from the wealthy and people understand

that. >> but explain this to me. president obama has been in office now for how long, he was committed to reducing inequality, he had a great opportunities to put in place all his policies and got health care reform, got huge major changes in legislation, and still median income has gone down. >> yeah. the forces are undoubtedly driven in part by what we just talked about, that is, globalization and technology, but you also have in this country a huge political problem for obama. a recalcitrant republican party, unbelievable amounts of money in politics, the republican party may be going through a civil war right now but still you have big business and wall street, with all due respect, on one side and they are providing less to the democrats now than ever before, and then you have the tea partiers who are also very much

angry, both at obama and also -- >> obama got health care reform, got a change in the way education funding was going to be, much more generous, he got a huge stimulus bill, he got a lot of legislation that was right up all the policies he wanted to institute. >> we're talking about the structure of the economy, much more deep -- this is a deeper issue than simply a specific set of policies. i mean, again, go back to the united states between world war ii and 1980 and you saw about pun third of the labor force was unionized giving workers a huge amount of bargaining leverage. you had tremendous investments in education and infrastructure, you had a wall street that was boring. being in banking was boring. you had a tax system that was different from the tax system today. >> that's for sure. good to see you. >> good luck with the book. >> robert reich. the book called "saving capitalism for the many not the few" out just today as a matter of fact. >> games like slots roulette aren't enticing millennials into

casinos. we will head to vegas where industry professionals are brainstorming how to get younger people into betting. >> tomorrow do not miss an exclusive interview with imf managing director christine la guard at 11:00 a.m. on squawk alley. sara eisen has that coming up tomorrow. ded feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks with chase for business. and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it.

the global gaming casino expo kicks off in las vegas today. one of the issues industry pros are facing is getting casinos to appeal to younger audiences. so we sent our young reporter jane wells to vegas to look at what strategies they are trying out. jane? >> reporter: look, phil. young people are spending in vegas. but where and can you get them to spend more is the question. and casinos are doing all kind of things pre-recession. mgm is building a new arena with aig hoping for a new team by the end of year. this is for those that don't gamble a lick. tropicana has been bout out of bankruptcy which is spending millions to update nongaming areas. i guess that the cosmopolitan is

spending and making money, bulking up the gaming side. >> we took the approach that we could preverve all that was grate all about the cosmopolitan experience from the hospitality side and bring in the true gamer. >> but this is the question. millenals are not true gamers when this comes to the slots. they need a solution. so equipment makers are showing off new slots that combine chance like slots are with skill based gaming like video games, like two bets in one. this is just approved in nevada. i know my 21-year-old son would love it. and they want to get into the fantasy sports. and you'll hear from two

different ceos and spokespersons coming up. >> i thought you were in your 20s. >> my daughters out there. thank you, jane. and it occurs to me, for boomers the word gaming means something different than it does for millennials. new insight. >> she made an online empire out of a e-bay store. we are joined by our guest. long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? approaching medicare eligibility? you may think you can put off checking out your

medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients,

and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪

sofia ammar uso continues to grow ore online empire which began as a one woman venture on e-bay. >> and she has a book out called #girl boss. on the best seller list for 18 weeks. she joins us here in person. >> ann hathaway plays you about a successful young woman who creates this brand and online retail that fills a niche for your audience. >> i haven't seen the movie and she came and shadowed me. i seen the trailer and it looks like our office. she was super sweet.

>> and we don't have a lot of time but you've done something incredible at such a young age. how do you do? >> i started an e-bay store since i was 22 and it was a while since i started nasty gal. i wasn't calling myself a ceo when i bought e-bay. so i opened up my e-bay store. but it has been a wild ride. we raised $70 million in venture capital and i wrote a book and i designed a house and opened two stores. so it has been -- >> and you are the ceo of the company. >> it is something i thought about for a long time and it is about playing to your strengths and doing the things that you are best at. >> it is easier to be an entrepreneur than to continue to run the company. >> i had never been a manager before so there was no learning curve. it was straight up and down, like a vertical line. >> the point of the intern is ann hathaway is trying to decide

whether to run the company or get a ceo. >> you saw the movie. >> i was the only male in the audience. >> against the advice of my investors and others i chose not to do that. >> i wish we had more time. but thank you for joining us. tipped success in your book and career. >> read it. >> thank you, mike for joining us. "fast money" is up right now. melissa. >> thanks. "fast money" joins right now. overlooking time square, i'm melissa lee. pete najarian, steve, and guy adami are on the desk. tonight on "fast money." tesla's moment of truth. the first delivery of the model x is happening tonight and phil le beau is on the scene with the details. and google just announced something that could have other investors nervous. we'll tell what you that is later on. but first tonight's largest story. the largest stock in the s&p