>> you're still sticking by your claim that you have never seen "star wars"? >> my claim? it's true. i haven't. it's a fact. >> we're going to bing watch together. "closing bell" starts right now. and we welcome to you "closing bell" for this friday, i'm bill griffeth here at the new york stock exchange. hey, kelly. >> oh, hello, bill. i am kelly evans out here at carnegie mellon university in pittsburgh. i just wanted to let you know, bill, i'm making a new friend here, i think he might be a capable co-host even. had i, herb. >> hi, kelly. >> he is a home exploring robot butler, bill. he not only co-hosts i think he can bring me coffee from joe kernen to herb, you have been all over the map this week.

>> have we ever. there is a lot more coming up, though, here from carnegie melon. we have a couple of big interviews for you. earlier i spoke with a major donor to the school, hedge fund manager david tepper and asked him about the rumors he was in solar play sun edison yesterday. here is what he had to say. >> people probably smoke a lot of marijuana out in your viewing audience and people on twitter because i don't understand where stuff comes from. i have never talked about stocks on this program. we haven't had any big positions in my book for a year. i just was -- i mean, really truly there must be good gone cha coming into the country. >> we will have more on tepper's comments. >> was that a no? >> well, but he said he hasn't had a big position in it. he seems pretty dismissive. the comments i think we have to let stand for themselves. by the way, cmu board member ray lane who is a venture capital giant kliner perkins is coming

up in just a bit. >> we've enjoyed your many interviews from carnegie melon throughout the day on cnbc. on wall street the major averages are on pace to record their strongest gain in four years. is that unbelievable. and the fifth best gain for the dow since 1992. who knew? so are we setting ourselves up for a continued year-end rally? that's what we will look out ahead. one stock not participating in today's rally is valeant, the shares plunging again after the company cut ties with a controversial farm ri cyst butter that it had been accused of using to artificially raise sales and then you also heard about hedge fund manager bill ackman coming to valeant's defense today but it hasn't helped. we have the latest details on that coming up. >> plus we will also take the pulse of the etf industry and wherein investors are putting their money now we speak to jonathan steinberg in just a

bit. >> let's start with bill ackman's comments on vel yantd today. meg terrell has the latest for us. >> in a four-hour long call bill ackman spelled out the history of their investment in valeant saying he he believes in the company and ceo mike pearson but there are a couple of things he takes issue with. valeant could improve on their investor relations, public and government relations, trying to beef those up. also saying they should have disclose this had relationship with philidor saying they only learned about it with everybody else and then he did compare this instance of what they are going through with philidor and the lack of confidence so something that happened in the 1960s to a.m. meck, comparing the situation of warren buftd getting into that stock at that time. ackman thinking about himself as warren buffett and having the same return as buffet has seen with amex. worst case scenario valeanter

sells itself, however, he thinks the company does better as a stand-alone. there are several things challenging the company, it is dealing with several government inquiries into its drug pricing an patient access programs, but this morning as you mentioned it did end its relationship with that specialty pharmacy philidor so investors hoping that will maybe provide a bottom to the stock however it is down 18% perhaps because sit ron research that short seller that sparked so much of this says it has another report coming out on monday. >> i wanted to ask you about that. i don't know if there is an answer to this or whether we even know how -- if there is a timetable for these government investigations and for their own internal investigation. do we have any idea when we might hear results from any of that. >> the internal investigation it probably is continuing but they have concluded they are ending that relationship with philidor. earlier they said they would look into potentially biology philidor and bringing it in.

they are not doing that now. it will be interesting to know what they learned from their investigations and whether they learned some of the things that have caused so many questions about that business. as for the government investigations we don't really know. they have been subpoenaed by two attorneys general from massachusetts and new york, so presumably we will hear about that, but we don't know the time frame on that, either. all of this is still up in the air and that can't be good for valeant's stocks stok. >> to that point did bill ackman elaborate on how much he thought philidor might be contributing to valeant's earnings in recent period here? >> what we do is that philidor contributed 6% of valeant's revenue flow through valley yant year to date. what people have been questioning is how much growth was going to come from that channel in the future. ackman said they don't know that. that's a question everybody has is once valeant unwinds this partnership and the path it takes forward will we see the same growth rate as we would

have seen before. >> meg terrell with the latest on val yaent. joining our "closing bell" exchange for this friday we welcome injury required fitzpatrick, keith bliss from can a tone and company is with me at post 9 and rick santelli is in chicago. keith, we are back to levels before the market break in august where there were concerns about global growth, about the fed, all kinds of things. no worries now? >> none of those concerns have gone away, it's amazing how the market has turned and we have repaired all the damage technically that we got in the market from that late august sell off. we've reclaimed territory for the big cap indexes well above the trend lines going back to 2011 and 2009, back above their 50 day, 200 day moving average. the one thing that does give me pause for concern right here is the russell, the small caps have lagged, we have been bumping up against pretty stiff overhead resistance, this is the seventh attempt we have made and we're

failing again. until that gets going we have to question the credibility of the mega cap rallies. one thing to note we are go to en tr the strongest seasonal pattern for u.s. and global equities all year long, november is the third best month since 1957, december is the first best month since 1957. it's setting up to be interesting what happens, a lot of it is going to have to do with the dollar rally. if the dollar continues to rally then we should see monroe date into the small caps and that will give you the impetus to keep pushing until the end of the year. >> rick, i was asking gg to ask you about that. how much do stock gains depend on the direction of the u.s. dollar and crude and is it to the upside in both cases? >> i think the oil story plays into different correlation arguments but it really is the story in and of itself. i think when you look at all the other issues, listen, we can gate that now is the wrong time to raise rates, but we know they shouldn't be at zero, but those dynamics of pricing money cheap are still a huge part of the

equation. you know, you look at all the issues today, like ackman, you know, herbal life is up over 40% of the year, valeant down 35%, looks like ackman should have switched his cards around at the beginning of the year. >> gerard fitzpatrick, what is about in fixed income. we've seen yields creep up here recently, especially after the fed meeting, you think that's going to continue. why do you see yields a year from now? >> we do. in a year's time we see yields higher, we see the ten year treasury up around 2.5 to 2.8%. the reason why is looking at the fed. the fed is likely to kick that off. the rest of the market is looking at a 50/50 chance for a fed hike in december, we see a higher probability. we do believe that the fed will hike in december, never an ideal time but i believe they will want to, employment is getting better, inflation starting to rise. >> let me just ask you about this. so the closer we've gotten to this purported fed rate hike the lower the ten year has fallen if

you look at just the last three to four to five-year period. why is it that the closer we draw the less that rate seems to move up? >> well, there's still some concern always out there. the debate can go on both sides, we've obviously gone through a period where there's economic ro growth concerns, followed the financial crisis. the fed is in the position it wants to keep interest rates relatively low. if you look forward it's saying employment is pretty good shape, inflation likely to rise and now is a good time to start hike those rates, really trying to offset some easy money out there. increase the cost of financing, gives better control in the economy. >> keith, if we do get yields moving that much higher in the next year would, that start to crowd equities out or what do you think they would do? >> it hasn't so far. the ten year yield has moved up 7.5% this week from around 2 to 2.16 as we sit here right now and equities have been pretty resilient. i think the seasonal patterns

are overriding whatever is going on right here and i wouldn't be a seller of equities right here. you may not want to be pressing your longs too much but certainly don't get out of the way of equities right now. >> all right. gentlemen, good to see you all. thank you. have a good weekend. happy halloween as well. >> happy halloween. >> u.s. troops are heading to syria, eamon javers has the latest developments on this important developing story today for us. >> that's right, bill. the white house announcing earlier today that it is stepping up its campaign against isis inside syria, this time involving u.s. boots on the ground, officially acknowledged now about 50 u.s. special forces the white house says will be participating in advisory roles with moderate syrian forces and others, they won't say exactly hot united states will be fighting alongside in syria due to operational secrecy reasons. the exhaust also saying it's stepping up its campaign of air attacks inside syria against isis. we have a statement from john mccain up on capitol hill.

mccain saying unfortunately this limited action is yet another insufficient step in the obama administration's policy of gradual he is grags, such grudging incrementalism is woefully inadequate to the scale of the challenge we face, john mccain going on to cite increasing russian and iranian influence inside syria as well as across the middle east. the president had said as far back as 2013 that he would not put u.s. boots on the ground, obviously, bill, the situation here is changing on the ground and the white house now deciding that this is the direction the situates needs to go. >> all right. eamon javers in washington. thank you, eamon, we will see you later. >> reading to the close, 50 minutes -- kelly, you want me to do this or should herb do this? i was going to ask if you wanted to read the tease, herb. he's wearing a nice bow time for the occasion, too. >> i saw that. very dapper for a robot. >> there he is. >> slight down -- >> he has a little bit of a

learning curve. >> the dow down 32 points, s&p down 4 and the nasdaq is down 13 as we close trading out for the month of october. it's been a very good month, as a matter of fact. up next, wisdom tree's ceo jonathan steinberg joins us and will speak about the stunning gauges the major averages have seen this month and if he sees stocks hitting new highs by the end of the year. >> also ahead -- >> the ecb was very easy leaning, the chinese surprisingly lowered rates. you know, we were surprised, too. >> hedge fund billionaire david tepper speaking with me in an exclusive interview, find out what else he was surprised about when we come back. 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.

>> the ecb was very easy so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. >> the ecb was very easy

welcome back, earlier this morning i sat down with david tepper. here is what he had to say about the current state of the stock market. >> the ecb surprisingly was very easy leaning, the chinese surprisingly lowered rates. you know, we were surprised, too. and, you know, we were cautious before on the stock market

because of margins and all these other things and really those things haven't changed that much. >> what's the paradigm? that's what you did so much. >> paradigm? >> you identified the paradigm that we were in. you said, look, we are in a period where either the stock market is going to rally, if it doesn't the fed will get involved and that's going to boost the market, either way you win. that's what happened for many years going back to the post crisis period. what kind of paradigm are we did n. today? >> we don't have to be in a paradigm. listen, i think we are in just old fashioned investing here. you have to keep some cash on the sidelines, have a diversified portfolio, have some -- you know, i don't love the bond market right now, but i'm guessing we own some bonds if you're sitting out there. i don't think there is a magic formula. if there was a magic formula it would be china easing a lot and i consider them much too tight still and play too many games with their economy. if there was going to be a paradigm it would be china really easing not one quarter

but they could probably lower a couple hundred bips. >> in your portfolio it includes names like general motors, apple, healthcare as well -- >> i do own general motors. >> you do own general motors. >> i forgot about that one. >> it was surprising on a day when you had ferrari going public, the day that general motors reported earnings gm stock was up better, up 6% on those results, ford rock yer after it. why is general motors, is that leverage to the u.s. economy, people continuing to buy cars at a rapid pace. >> two things general motorsports, it is lenchtd to the u.s. economy has done very well, they're doing better than other folks like ford and china. not that i love to give, you know, i don't talk about management that much but mary is doing a really good job there. you know, so that's for you, mary. okay? she really s i'm a fan and we did a deal with them and, you know, which i think gave them a little leeway to not have other people bother them,

activist-type people bother them. i think it's really got its act together. to tell you the truth i don't think the market is recognizing it yet. >> when it comes to the hospital space because there are a lot of people trying to wrap their heads around this, has something changed? is it the payer mix? >> we have a big position which is filed in hca, we probably if we have done anything recently probably added to that and those stocks have gotten hit too hard. >> does that indicate that this economy is going to be okay? we're starting to hear people talk about recessions, talk about a slow down, talk about what's happening in the industrials -- >> the united states is great. it's that some people put in red on the other side of the world that's causing a problem. it's everything related there, but the pure united states is, you know, listen, we're pretty strong here. >> always candid. >> bill, there was more. oh, a thousand percent. when we were talking about

healthcare and hospitals he said the reason he thought that hca sold off so much is they cited one of their reasons in earnings for being higher labor costs. that's what led that to that question of me saying so is the u.s. economy fundamentally okay. he said, yes. that's not going to be great for corporate earnings but from a larger picture point of view you would rather see wage pressures than not at the moment. >> let's bring in our guest with me at post 9, he has been listening in jonathan steinberg founder and ceo of wisdom tree investments. david's point is that it doesn't have to be a paradigm right now. there are a lot of triggers confused about this period right now given the movement in monetary policy by other countries around the world and ours may be going in the opposite direction here. >> so there's no question from etf lows which do see markets centering very quickly that there has been a lot of uncertainty yes, money that is not been flowing as advisors and

money have been unsure what to do. you mentioned the ecb which is interesting because our currency hedged funds have had negative outflows the last few months sharply turned positive this week, so they are up about 650 million for the first four days this have week and those have really powered our earnings results for the last, you know, for the year to date numbers that we forwarded today. >> jonathan, hello, i'm glad you raised the european hedge etf. that's a product that a lot of people piled into back in the spring, it was heavily advertised, part yanis varoufakis you are smart bet at that portfolio but then f course it suffered heavily when the macro turned turned. >> when you say from an in flow standpoint all through the third quarter and this quarter positive inflows on that strategy but when the european

equities trade down the fund trades down. i know there has been a lot of noise been the etf industry but the etf industry is the safest place for investors to put their money. transparency, liquidity, tax efficiency and the transparency of fee is really what serves the investor best and because of that we've been seeing massive inflows as an industry for a decade and i don't see it stopping. >> this plays into your hand but, you know, morning star today there's the labor department rule changes that they want to enact with financial planners where they would become more transparent and the industry is fighting that, but morning star said, look, if these things pass you are going to see as much as a trillion dollar flow into index funds as people being dissatisfied with the managers that they are putting money with. i imagine would agree with that. >> it would be a tremendous boone to the etf industry if the fiduciary rule is enacted. no question about it. your adviser does a better job when they have full transparency, liquidity.

it's hard to justify going in another direction. >> backing out to the global macro picture and the comments that david tepper made, he basically said if china can come out with big easing in terms of monetary policy that that would be a plus not only for china and the nation's keyed directly to it maybe for commodities as well but also push the u.s. federal reserve to begin raising rates and begin the investment cycle we have been waiting for. what do you think -- and do you have the confidence that china actually can and will do something like that? >> one, i do not have the confidence one way or the other. what i will say, though, is the emerging markets, china, traded so terribly that there is some value base being created and you are seeing certainly from the outflows a true moderating end so you are starting to see some modest buying in emerging markets. so maybe others are seeing value being created there.

>> in addition to announcing earnings you just bought a couple of commodity funds, green haven funds. i'm curious on two fronts here. why not start your own, why buy them. and two, why commodities if everybody believes that the dollar is going to continue to strengthen? these two funds, one is a general commodity fund, the other is a coal fund, both have suffered this year because of that stronger dollar. >> the coal fund was just recently started but the broad based commodity fund we bought because it is in a trough, partly for diversification reasons, we just didn't have a broad commodity solution and why buy instead of start fresh is that they do have the longest track record, a very strong track record, within the commodities space so it's relative because obviously commodities have been trading very, very badly. >> on on that point, jonathan, we had goldman on recently who is getting into the etf business, finally anybody who has been a hold out sees the

trend that's taking place here. you guys benefited so much from being early and big in this space but especially as that push is cost down and there is a proliferation of products how do you stay number one and continue to be the place to go and to keep your margins intact during this transition period? >> so, you know, we've always had strong competition, we've always had i shares within our space and they are by far the most competitive organizationes in asset management and we compete with them. it's great to see more entrants into the market because it's expanding the pie. from a competitive standpoint those that are already in the industry, they are by far the most aggressive including a wisdom tree. we will continue to compete by being first to market. >> is that another reason to buy a fund rather than start your own, because of the competition and cost effective nature?

>> no. this was was a separate -- it was an efficient way to get into commodities with a solid active base, buying it when commodities are out of favor so it was a relatively attractive price and they have this long track record. so that's the reason we did that specific fund. >> that would be called buying low. >> we hope so. >> that's what that's all about. jonathan steinberg of wisdom tree, always good to see you. >> thank you so much. all right. heading to the close, 35 minutes left in the trading session here, the dow still down 39 points but really, i mean, we have had four down days this week but the market will finish higher this week and for the month the dow is up 9%, its fourth best month in four years. incredible. all right. coming up, kliner perkins ray lane is going to talk tech startups, find out what he is betting on and if he says valuations in the space heading out of control. also a heard our dominic chu and seema mody will tell us which stock markets around the globe managed to outperform wall

street this month. we have a lot to get to coming up. you're watching cnbc first in business worldwide.

the moment market nerds have been waiting for. we have the heat map, all ten sectors how they did inside the s&p 500 index during the month of october which by the way i mashed up a couple of statistics here, what october has been, it has been the best month for the market in four years. it has been the fifth best month since 1992, but here we go.

materials, its best performer for the month as you can see all of them were positive, all ten sectors. utilities the best performing sector in the third quarter, the underperformer in the month of october. kelly evans. >> wow. i can't take my eyes off that one, the major averages are closing in on their best monthly gains in years, dominic chu and seema mody join us with this special report on how wall street gains stack up to global markets. >> they're back together again. >> it's fantastic. we're getting the band back together. we thought we would kick it off with this particular look of what's happening in the october. it's been great for the united states market, all ten of those sectors in the green, with the dow, s&p and nasdaq anywhere from 8.5 to 10% gains just for this month alone. yes, a banner month and the best month for the dow since october of 2011, bill, like you said. now, as we talk about -- really for the rest of what's happening for the rest of the year, we

have had 12 monthly gains greater than 8% going all the way back to 1987. so this is one of just a handful of months and perhaps all of that turmoil that we saw in august and all of that uncertainty that we saw around the fed meeting in september has started to shake things out and people have stepped in to dip their toes in the markets and it's gotten us back to flat for the overall a period. for the s&p 500 and u.s. markets it's been a pretty darn scenario so far. >> a rally extending overseas, just take a look at asian markets, japan despite no action from the bank of japan overnight gaining 10% in month, chinese stocks after a very tough summer rebounding by 11%, even with those lingering growth concerns hong kong seeing its first positive month since may. europe joining in on the market, too. the ecb market coming up in september he is expect to go extend quantitative easing.

it's that prospect of further qe that is fueling the rally in europe, german stocks up 12%, france, u.k., spain all up better than 6%, germany seeing its best month since april of 2009, dom. >> so this is the interesting part. we want to break this down and put it again against each other of just to show what you the prospects could be. i'm going to try to make the case, at least give a bullish case for why you would be to be in the u.s. versus market. the u.s. still the place to be in terms of liquidity and it's the place you want to be for safety. you want growth but a little bit less of that volatility and of course the stable economic outlook. it's not growing gainingbusterst still growing. >> for the rest of the world the two reasons investing overseas, proactive central banks, the boj also expected to extend. that could potentially fuel markets. weaker currency, your owe, yen,

that's a big boost to those export oriented economies. kelly and bill. >> good to see you guys back together again. >> great stuff. >> let's get to sue herrera and time for a cnbc news update with sue. sue. >> hi, bill, here is what's happening at this hour. the white house says it expects to receive the budget deal that was passed by congress on monday when president obama will sign it. senators voted 64 to 35 earlier this morning in favor of that bill. the german foreign minister says there was no agreement at the syrian peace talks in vienna on what should happen with syrian president assad at the end of the political process. he added talks would resume within two weeks. the maker skippy peanut butter is recalling certain jars that may contain metal shavings. who are mel foods recalling 153 cases of skippy reduced fat creamy peanut butter spread with a best if used by date of december 14th of 2016. no injuries have been reported. and take a look at this.

great scott. halloween came early for drivers and pedestrians in arizona as a giant inflatable pumpkin emerged from a group of trees before bouncing through a busy intersection. it traveled about a quarter of a mile. officials say the great pumpkin broke free from a halloween display. that's your cnbc news update. >> i saw the headline that said run away pumpkin and i thought little tiny pumpkin. that's a big pumpkin. >> can you imagine that coming at your car. >> first the blimp, now a pumpkin. >> i bring you only the best stories, guys. run away military personnel, run away military stuff, run away big pumpkins, you name t we've got t look at the guy in the pack back, he's like, i'm out of here. >> like we're watching the syfy channel or something. >> see you in an hour. that didn't bother her, did it? is he okay? >> oh, no herb is okay. he thinks this makes his case all the stronger, bill.

he is strong, aluminum, titanium, metal parts here, he wouldn't go floating around. dow is down 50 points as we head toward the close, going into the last half hour of the trade here, minus signs right now, but big gains for the month adds we've established the major averages are look to go close out their best month in four years and a top trader will tell us what he's watching as these final minutes of the month wind upcoming up. kelly. and also ahead kleiner perkins ray lanes gives us his outline for tech startups and has it reached a peak. we'll ask him. stay tuned.

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we've got about 23 minutes left in the trading session as we again initial out what has been a strong month. i have gordon from rosenblat securities with me on the floor of the exchange. i don't think anybody predicted as strong a month for october as they got. some people are making the case that this could continue for seasonal reasons. >> you can't fight the tape. i'm a bit surprised with the lack of interest in the market so much this week.

i mean, you know, the last few days i would expect with all the earnings to sort of spark the market and we would see more volatility and volume and we didn't. >> is this a case of money managers and investors want to go play catch up at some point? >> i thought they would start to take them here into the end of the year. being forward looking, but again the tape has been sluggish and the earnings -- well, they haven't been disappointed, they have been unremarkable and it hasn't led to the kind of trading we thought we would be seeing. >> bank of japan, no decision today, maybe there is wiggle room there. europe, still dovish. >> right. >> i guess guys are starting to look past earnings and look at what the fed is going to do. it seems like europe is controlling that and until europe decides to make some sort of stand what can the u.s. do? if you can go to europe and get those kind of rates. >> exactly. we will keep an eye on that there. by the way, nice costume. >> what about the guys back

here. saturday halloween, bill, are you going to go to the parade? >> absolutely. i wouldn't miss it. kelly. >> he looks just like a stock trader, bill. love it. carnegie mellon which is where i am here doesn't just have a presence in pittsburgh, it also has a presence in silicon valley. that's something that attracts people like my next guest. ray lane, carnegie mellon chairman of the board of trustees and partner emeritus at kleiner perkins joins me now. >> thank you. >> welcome. >> good to be here. sorry i didn't hear a costume today. >> you're dressed at ray lane. >> thank you. >> you are so passionate about this place, we've talked a lot today about the transformation we've seen in pittsburgh, we've talked about what's unique here in the sense that carnegie mellon in a way embraces companies like microsoft, like google, like uber coming to campus and taking their technology off the shelf so to speak. is that going to keep happening and do you think that's ultimately what's going to set

apart both this university but also the companies which are leading the transformations we're constantly following in public and private markets right now? >> i think without a question it will keep happening. carnegie mellon built its advanced technology skills in the '50s, '60s, '70s largely working with dart ma and computer science, engineering and even in the arts but most of the science work was done with dart ma. now industry partners are replacing that. all those companies you mentioned including dozens more will continue to find their way to pittsburgh and it's not easy to get to pittsburgh from silicon valley. >> it shows they're committed. >> right. >> they have to get here. in the case of uber which was all over the headlines earlier this year, originally it was, hey, uber is coming, poaching car neg negy melon's at that ent l what's the real story? >> carnegie mellon has the best robotics institute in the world. don't take my world for it, it's out there to beat.

>> right. >> there's two other organizations within the carnegie mellon umbrella, one is called nrec, the national robotics engineering center and that does private research for companies and then there is a p & l, separate called card carnegie robotics which basically did robotics projects for whoever wanted to do them for a profit. nrec and carnegie robotics supplied most of the talent to uber when uber really did a lot of research to figure out where they could go for ought mouse vehicles. >> right. >> carnegie mellon has been in this field for 30-plus years. >> i got a chance to take a spin in one a few weeks ago bank. >> we have had ought mouse vehicles running around here for 30 years winning the dart ma challenge for 30 years, a long, long time. so they were smart, they came here, but the robotics institute where most of the research takes place and most of the academics are was untouched by uber. we have a great partnership with uber >> where is the auto industry

going? you have been over time invested in companies like if i say kerr saw the -- saw what was happening maybe with the electric scars cars, we have the self driving thing and companies like apple potentially getting in on the game. >> it's changing like most industries that make capital assets, those assets are changing because of computer zags. so they are going automated in many ways. your car today has probably over 50 sensors in it and computers in it. so it's already largely automated, but we just haven't taken the driver out. so airplanes, automobiles, you know, we will see all this -- trucks, long haul trucking, we will see the driver -- the car be less dependent on the driver. transportation will become safer. >> so i understand that we will be less exposed to human error but i'm also familiar with the blue screen and my iphone crashing and those things. we are putting perhaps the most important parts of our economy

into the hands of software, how can we trust it? >> that's why it will take longer than everybody is forecasting. if you listen to the forecasts some coming out of silicon valley or tech forecasts they are talk being when we can do it. when we are able to do it. more than when it would be regulatory, you know -- regulatorily safe or whether it would be acceptable to a consumer to actually take their hands off the wheel or get out of the car or out of the plane or out of the truck all together. so i think it will take longer, but the technology is there today. as you found out, there is no difficulty in having ought mouse vehicle, but we can say that we're 1/1000 of the accidents that happen with ought mouse vehicles, one computer causes an didn't and it sets it back 100 years. it has to be absolutely correct

before it's going to take o that's why i think we will see a lot of hands free operation before we see driverless operation or something like that. >> bill. >> hey, ray, bill griffeth here. nice to see you. thanks for joining us today. i think you would be uniquely qualified to answer this. i'm curious your thoughts as brand-new sec rule that will allow individuals to be part of crowd funding for small business. you know, that's become a big thing these days and now small companies are going to go after these individual investors, be able to crowd fund their business here. do you worry about that or is that a good development in the world of raising capital to get small businesses off the ground? >> well, i don't know that capital formation is a big problem in starting up companies today so i'm not sure why companies need to go out to crowd sourcing to get that fulfilled. you don't get -- we normally get venture capital you get help

that goes along with it. building a company is difficult. kelly mentioned earlier about all the union corns that are out there. there are a lot of them. you can't look at them as a group or a class, you have to look at them a company at a time and these companies take a lot of fortunate to build and the ceo or the founder just can't do it himself by raising capital with mail in checks. >> on that point, ray, when you look at the landscape today, what concerns do you have about -- you know, it's great for all the innovation that's happening, the flip side is all the investment money that's tied up in some of these companies that may not pan out. >> i think how many union acorns do we have now? over 100. >> 25 or something. >> you can't look at them as a class or group because they are all different companies. most are overvalued, a lot of them are undervalued. i would expect you will see a percentage of them, 10, 20% that will go much higher in value because they will build great businesses. remember, the last kind of boom

and bust we had in the late '90s we got google, ebay, amazon, we got some great companies out of that and that would have been called ooun corns today. we'll get them today and get great companies. >> your tenure you went from booth allen to oracle to hewlett-packard -- >> why you wouldn't at hue let. >> you are on the board at hewlett-packard. on this theme of software eating the world has hue let pack card finally adopted the right strategy for this environment and i'm interested on your thoughts on oracle as well. >> certainly software is critical to hue let pack card largely being a research or engineering company it's difficult. we have a large growing $5 billion software business but the software that's embedded in all the hardware. when we ship a server or a storage two problem duct or networking product or printer or pcs they are shipped with software. they may be someone else's

software or our own software so software is important everywhere. software now has become king. software will beat the world. you can move very, very fast so you can, you know, in the software world which i think is a very unique industry you can actually develop a product extremely fast, you can test it in the market either with enterprises or consumers and you get within a one-year cycle you get a pretty good report card on how you are going to do. there's no other business you can do that with. you get into, you know, green tech as we found out and you get into life sciences, it's going to take you five or seven years to find out t. out. >> i wish we had 15, 30, 45 more minutes, ray. we will have to come back and continue the conversation. ray lane here at carnegie mellon for that board meeting but also opening our eyes to a lot of what's transforming our economy. truth so much. really appreciate it. >> thanks very much. head to the close with 13 minutes left, the dow down just 15 points. kelly.

>> and the federal reserve making some big presentations today. the topic isn't rate hikes, it's new bank rules and we will get you those details next. cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

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capital rules for big banks. mary thompson at cnbc global headquarters has more on that story. >> the federal reserve actually voting to approve the recommendation on these rules today, the rules aimed at ending expectations that taxpayers will pay if a big panik fails. the proposal is part of a regulatory framework. the fed staff estimates that six of the eight big banks, goldman, morgan, bny melon and jpmorgan the staff estimates six of these banks are short $120 billion in long-term debt to meet its requirements under these rules. the fed declined to name the two bings that already had sufficient debt. nd the proposal a big bank's parent would hold an extra layer of long-term debt providing what david wright tells cnbc is a third line of defense after the capital liquidity in the event of a bank's fael lure. it provides cover for resolutions without disrupting

the industry. if the proposal is finalized the fed says the banks will likely meet the requirement a number of ways, issuing now long-term debt, expending their maturity profile on existing debt or through other plans sheet action. the fed estimates it will cost these banks anywhere between $680 million to $1.5 billion on an annual basis to finance the additional debt. so reduce contagion other banks would be discouraged from buying this debt as it would carry high capital requirements and the rules would also apply to the u.s. subs of big foreign banks. the proposal will be put out -- sorry about that, it's friday -- will be put out for public comment and the fey will vote to finalize on this proposal later. all aimed at ending concerns the government would be on the hook if a big bank fails. >> thanks very much. heading to the close art cash unget this, kelly, art cashin tells me $800 million to buy going into the close here to close out the month of october.

>> wow. all right. we'll watch those indexes. up next, find out why our next guest warning about volatility in the currency market. here at td ameritrade, they love innovating. and apparently, they also love stickers. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this.

all right. with me here at post 9 we are omar agular from charles schwab investment management. closing out a strong month for equities. can that continue, though, into the new month? >> one of the best months in the last four years. the momentum has regained, you know, from what we saw after the summer. a lot of that is going to have to do on how we continue to see earnings coming out. >> is the market anticipating better earnings and better economy or is it anticipating something from the fed? >> i think it's both. ng the fed, you know, came out with a strong statement, trying to be hawkish and the market seems to be taking that in the right way. the fed loved the momentum that we had going into the summer and evening now the market seems to be recovering that. >> interesting. now, the consumer seems to be the focal month for a lot of investors, do you agree with that? >> i totally agree. not only the consumer in the u.s. but the consumer overseas,

it also a big part what have we should expect to see more news from. >> omar, thank you. we will come back with the closing countdown to close things out for this month right after this. stay tuned. anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird.

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the s&p up 8.4%. who would have thunk it? we have talk more about what could come in the next month. right now party city is ringing the closing bell at the new york stock exchange. at the nasdaq it's the ceo of anavex life sciences. dan, can we keep the momentum coming in november. let's talk about it. kelly evans in pittsburgh, the rest of the gang at the new york stock exchange. the second hour of the "closing bell" coming up. have a good weekend. >> welcome to the "closing bell." i'm kelly evans. here at carnegie mellon in pittsburgh with wr we have more coming occupien the program. take a look of course at the dow, the s&p 500 and the nasdaq all down about half a perspective, the down closing down 92 points. still close to breaking even for the year while the s&p gives up 10 points, the nasdaq gives up

20 and we are still looking at an incredibly strong october in these markets. i am here at carnegie mellon and we will be showing you exciting innovations that have attracted interest in a number of companies in the private sector lately including boeing. more on that coming up in just a bit. there's a snake bought. i will tell but that. joining the panel we have sara eisen, evan knew mark and mike santoli. plus "fast money" trader david see better. mike, what did i miss? >> you missed a little bit of a late day sell off, it got heavy late in the day but overall obviously kind of a placid week, we were a little overbought after this furious rally, that fed reaction, but honestly i feel like this is a logical place to stop and flatten out for this market. >> yeah, it's pretty amazing to look at just how strong october has been, sara, for a lot of sectors. look at the materials leading the way with double digit gains,

energy snapping back. you have to wonder how sustainable some of this is. >> technology and energy the real standouts when it comes to strength. the s&p, the dow and nasdaq going out with pretty solid gains, the nasdaq the outperforming during the month of october and the s&p and dow having its best month since back in october 2011. we have been all talk being seasonal trends and we look back in october 2011 where the s&p was up more than 10% and it turns out in november and december rally amounted to 0.3%. so wraps, you know, the question today is are we taking away from in i santa claus end of year rally or can momentum keep going, central banks swooping back into the rescue of slower economic growth are still there, primarily european central bank and china, overnight bank of japan disappointed, not expa expanding or hinting, that's going to be the key question going into the final two months here. >> that's that i was going to ask you, mr. knew mark.

a strong october, i know you have been more cautious on the market, your energy plays worked out nicely. is this the beginning of a trend or a pause and counter move, do you think? >> i think that in order for the market to go up you're going to have to continue to see strength in energy and materials. i think the neck stocks have had such an unbelievable run, stocks like google, facebook, they are up 35% year to date, amazon still up over # 0% year to date. to go into the year-end you are going to need to see, i think, some real strength in the energy, the materials, the industrial sector. >> okay. >> i think it's been a great october, contrary to all your negativism from earlier in the month, kelly. >> wait a minute. >> you are inventing this negative -- you are the one who thought the market was going nowhere. >> the market has gone nowhere over the year. the s&p is up about 1% for the year. >> now you're changing your

tune. >> i'm not changing my tune. >> you know it was a strong october, but you're also correct t has largely speaking been flat on the year. i want to quickly look at big mover that was sun edison while we're keeping with this energy thing for a moment. in the solar space that had a lot to do with david tep, i interviewed him this morning. yesterday the stock was moving up on anticipation of an announcement that didn't come. >> it speaks to the authority you can have in the market when just knowing about your appearance sun edison yesterday was up 5%. there was some rumor you were going to come on and talk about it. you say it's a stock pickers market, would you pick a sun edison. >> people probably smoke a lot of marijuana out in your viewing audience and people on twitter because i don't understand where stuff comes from. i've never talked about stocks on this program. we haven't had any big positions in my book for a year. i just a -- i mean, really truly, you know, there must be

some good goncha coming into the country. >> putting that aside, david see better, what did you think about that whole move in sun edison, solar broadly today. >> you have to stick with the quality names and that's what we've learned this year. i look at sun edison and it is such a confusing story. i think their management has been so confusing to investors and in a tape like this you can't confuse investors. i think sune is the stock you stay away from in the near term, maybe for the longer term. the quality names, the ones that have no exposure or a little exposure to the residential side, like a first lower is a great stock, we saw them come in and beat earnings, those are names you want to stay with, stick with the quality not the ones that have exposure to the retail side. >> kelly, it's evan. i want to go to your -- to the point you raised earlier about interviewing david tepper and how it's a stock pickers market and all this. the great thing about october

among many things is that it once again has unmasked the myth of the great stock ticker you have to follow carl icon who was calling for the last month and a half for a total collapse of the market. you had to follow bill ackman who top picked valeant who is sitting on a $2 billion loss in his valeant position. >> evan, there is a difference -- there is a difference -- there is a difference between the masters of the universe so to speak in the hedge fund space and picking the right stocks in this environment. you wouldn't deny that we have seen huge moves on earnings that the winners are massively rallying, the losers are getting creamed and it's clear that there's differentiation taking place. >> and i would be curious to get david's take on this. it has been generally speaking second to recally based meaning all the tech stocks -- >> let me please finish. >> all the tech stocks that rely -- that have big earning

beats, linkedin, google -- >> we will see what happens with facebook, amazon, they have all performed might i will into the after earnings. i'm not saying it's universal, you have had some losing stocks like twitter but i never believed in twitter being a quality name to begin with. >> michael -- >> -- in tandem. >> you are overanticipating evan's point. >> as a matter of fact, it's a very large cap dominant stock in general in every sector that have led the way. the equal weighted version of the index has actually been pretty flat right now and if anything that's what people are quibbling with, that it's been a top-heavy rally. >> and also to the point of stock picking i would say we haven't talked about deals which have driven a lot of the action in an individual stock, whether pharmaceuticals or banks this week, so many different sectors that are -- i'm looking at the month end best performers that

were up 43%, they are all companies that were targets for npl discussions. >> i agree. you look at the market and you say -- we made a comment earlier when we started, we're flat, up small for the year, but there are stocks up 120% like netflix. i look at it and say people are going to continue to migrate toward the growth stories, the stories that are working that will continue to work, we are in a market of stocks, not a stock market. you have to pick the winners and it's growth expectation that is people are focused on. willing to pay a premium multiple for companies that are grow and can grow in two years, five years, you know, and so on. so i look at it and say the netflixes of the world, the facebooks, the amazons, all these names we have talked b money is going to keep flying in there and i think it will be a chase game at the end of the year because that's going to be where the concentrated money continues to go back into. we look at the large cap -- >> right. >> kelly, are you willing --

>> last word, evan. >> at the end of this year we will go back, we will review just how well all these active fund managers, how well all these hedge fund managers have done versus the basic indices and if they outperform it's going to be by fractions of a margin. >> the hedge fund managers have so many different strategies. >> please. >> they're guys who -- my point is if you look at a value guy, a stock picker which is an incredibly difficult job, there is still something to be saying for combing through here and over a period of time picking the stocks that are particularly winning as opposed to going and buy the ibb, itf is my point. >> you tell that to the person swear shareholders at the end of this year. >> i think you've got people taking your bet. everybody, thank you. saved see berg, appreciate you joining us. there's much more coming up with david and the rest of the "fast money" crew at 5:00. shake shack, tesla, wendy's and toyota are gearing up to report

earnings at the end of next week. there is one already showing signs of a major breakout. find out what that is tonight on fast. stocks were good for inve investors in october but can the good times continue? and the white house expected to deploy now a small number of special operations forces to syria. could this be the part start of a larger effort against the islamic state? you're watching cnbc first in business worldwide. we thought we'd be ready. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us.

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welcome back. october turning out to be quite a treat for the bulls on wall street. bob pisani is here to wrap up a strong month for stocks. >> it was a surprise. no one was expecting much in october, it was a month of a lot of heart breaks throughout the years and yet everyone was surprised. take a look at the major indices, the big three, this was the best month in four years of any month not october, any month in four years for the nasdaq, dow jones industrial average, s&p 500 even with the declines today still notching an 8.3% gain. what i want to emphasize is this was a global rally not just let's buy united states stocks, we moved across the globe, the nikkei up 9.7%.

germany up 12.5%. s&p up 8.3%. all the stocks nobody wanted in the second quarter and the third quarter rallied, duponts, chevrons, ge, caterpillar have had terrible quarters going into the final quarter of the year. all of them outperformed. everybody got caught short these stocks and had to scramble to go and buy them. so the stuff -- the sectors that were horrible in the prior quarter in the third quarter also were the ones because of these moves up that outperformed. materials, oil and gas and even the china etf, as you know china has had a difficult year, up about 12%. you could be cynical about this and say liquidity from central banks is again a major motif and i wouldn't dis a agree with that at all. overall the global economy still flattish, even though the u.s.

economy the consumer holding up relatively well. >> thank you. guys, i i want to pick back up. underlying this whole discussion and the market really is the kind of strategy that works for investors and, mike, i was going to offer that there is two things i feel like i've noticed that work for people over time, the one is you buy a cheap index fund, never look at it and check it in 30 years, the other is that you become a real professional doing real research on individual names, hold a small portfolio of them and over time that could work, it's tough but it can work and everything else you throw it out. what do you think? >> or you can and you outsource that exact work to somebody who does spend their entire life doing that. the threshold for being able to be an individual stock picker has gotten higher on over the years. there are advantages to being that individual investor where

you can take manage of that time horizon but otherwise i do think you are going to get hurt the least by keeping your costs low and being passive. >> because even the sectors where you can get into trouble if you try to play them, i'm thinking back so what we were talking about with wisdom tree, it has a smart bet at that product, buy europe without buying the euro. it's a great idea but if you were to buy the whole thing and time it wrong you're toast. >> i think, again, the more sophisticated, if you will, the etf is the more danger you will run into in terms of hedging currencies or having leveraged where it's very, very narrow sector specific. i do believe because i do -- i own some etfs, i do believe that you can as part of a broad diversified low cost index portfolio you can have etf and -- or mutual funds that focus on specific sectors and overweight them or underweight them, not so that half your portfolio is in gold or anything like that, but you can over and

under -- >> fair enough. >> that's why, you know, come -- over the summer when energy was doing very, very badly i started to increase my -- it's an energy mutual fund now i'm overweight energy. it's not overweight i.e. 40% is in energy, 10 or 11% is in energy, so it is overweight but it's not -- i'm not going to lose my shirt in it. >> i hear you. we've got to go, share ration all i know is that you shouldn't be trading currencies. >> it's a tough run. the dollar weakened a bit over the last month of october to today it's weakened substantially but everybody on the street a lot of strategist right side saying we are gearing up for another round of dollar buying, dollar strength after what the fed said this week by w. i it explicitly put december next meeting back on the table. whether they pull the trigger or not, i don't know if wall street believes it. we did get more numbers on

consumer spending which was weak, smallest gain in eight months, incomes barely rose. if december continues to be more of a base case the dollar will strengthen and we see what that's doing to profits. we also see stocks can rise in a strong dollar environment. >> that's the backdrop we have to look to november and december for. let's send it over to seema mody here. >> i want to draw your attention to share of corrections corp. just before the closing bell after hillary clinton tweeted, we need to end private prisons, protecting public safety should never be outsourced or left to unaccountable corporations. the tweet also sent shares of geo group lower, another prison stock closing down by 1.2%. kelly. >> thank you, seema. up next, why this snake bought being developed at carnegie mellon could be the future of everything from manufacturing to surgery to search and rescue. great stuff. i'm back in a moment.

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we heard you got a job as a developer!!!!! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is? hello, ken jennings. i haven't seen you since that tv quiz show.

hello, watson. you can see now? i can recognize people, analyze images and watch movies. well i wrote a few books, did a speaking tour, i... i've been helping people plan for retirement. and i help doctors identify cancer treatments. is that all? i recently learned japanese... yeah, i was being sarcastic. i haven't learned sarcasm yet. i can help with that. welcome back. we've been telling you all day about carnegie mellon's leadership in the robotics arena. in this edition of the spark we head into one of cmu's labs where we get an inside look at some incredible robotic reptiles. they have a ton of applications.

>> i'm looking around here, how howie, what is the snake bought and where did it come from into this lab is call the bio robotics labs and one of the robots we work on is the snake robot. it cape from professor hirose. >> so the idea of a snake robot is not new. what's new about the work you're doing now? >> we focus on the design of the robot, how to make it as strong, maneuverable, strong as possible. >> how many types of things can these robots do? >> some of the applications that this group works on including search and rescue, archeology, inspection of water sewer plants, anywhere you have to get into a tight space where conventional machinery can't access. manufacturing companies come to us to work on basic projects that will impact their

manufacturing systems. for example, one of the projects is where manufacturing large structures. when you build large structures like ships or airplanes, you have to lay down a lot of infrastructure in place. this infrastructure is so big they sometimes call them monuments. >> so you're building ships and airplanes out of here? >> yes. >> wow. >> we're working on larger snake robots to be manufacturing in confined spaces. our goal is to minimize the amount of infrastructure that you need in order to do manufacturing. >> and what would that mean to the manufacturing industry? >> this will allow small companies to enter manufacturing who otherwise couldn't and it also allows large companies to be more agile into could be a revolution in terms of american factories. >> i believe that some of the work we're doing here will give the united states a renaissance in manufacturing. >> so fascinating. joining me a suber is a refresh

who is president of carnegie mellon and andrew moore who is head of the cmu computer science department. great to have you both. great to explore some of what you're doing here. one thing that's jumped out at me is they are involved insomuch. they are not just pro frefrs or researchers, they are running startups, they are consulting, there are so many universities where that would seem to be a problem, where it seems like you are either a researcher or working for the private sector and there's something to almost apologize for in that regard. why is the carnegie mellon approach different and is this something that you intend to continue to support to set you apart. >> first of all, kelly, thank you for having us and good to see you again. carnegie mellon as a university encourages its faculty to push the boundaries of intellect, curiosity, human creativity, whether it has practical application or not. having said that, having a major

impact on economy, society and the region is one of the greatest satisfactions that an educator, any human being with "a curious mind" can also have. so remarkably from the time that andrew carnegie founded carnegie mellon the university has a dna that not only has produced 19 nobel prize winners it has also produced almost 40 tony award winners. >> right. >> people who do mathematics purely for the sake of the joy of mathematics also find industry applicationes in what they do, but the video segment that we just saw, the faculty produced very, very difficult technological solutions to very complex problems that happen to be at the cutting edge of what society needs. >> and corporate america sees

this, recognizes it, we were told last daughter that it was once the military that would push a lot of this research, now it the corporate america. you represented the dna of this university that uber was just talking b you were at google, you came back and are head of the computer science program but google came to pittsburgh to get access to the resources of carnegie mellon. do you feel that you can continue to produce the kind of work here that's going to continue to draw those companies to pittsburgh? >> yes, and at the moment the things are going very nicely as artificial intelligence and computer science is breaking across every industry we are finding that our computer science students that are graduating are the number one most sought after of every program in the country. the reason is not only are they happy about artificial intelligence and statistics and computer science, but also they are very broad. everyone here has to do minors in other disciplines and you see

all the students that come out know how to work in teams of people with different viewpoints. >> i was looking at your bio. you say you've work in areas of robot control, internet click through prediction, e-commerce, logistics for same day delivery. this is not just research happening in a lab, this is affecting the way that we're living our day to day lives. >> that's absolutely it. one of the reasons we're finding that so many people are coming to pittsburgh is when you want to have someone who lives and breathes computer science or networking or cyber security but also cares about the big problems of the world, those are the kind of people that are attract tacked here and live here and do other things around here. >> boeing is the latest example of a company coming here, working with your department to get access to analytics and that kind of thing. are these companies coming to you first or are you learning about this when one of your, you know, big professors or somebody

is saying, hey, i just got a great offer from name your top fortune 500 company? >> so usually faculty members do some really cutting edge research. industry and academia finds out about it and especially when they see the impact of this, there is usually some form of collaboration much of course, we have alumni network in most of these cutting edge industries as well. it's in both directions. sometimes it's a need-based access, sometimes it happens because a faculty member has done some wonderful research. i also want to go back to the point that you an drew just discussed. one of the unique things about carnegie mellon that feeds into the industry impact is if you look at the 21st century, what is going to have the greatest impact on humanity in the 21st century, it's the way in which machines and computers and computing will intersect human behavior, human psychology and

that intersection is an intersection where carnegie mellon is uniquely positioned, wlths robots, whether it's portable devices, continuous health monitoring and so forth. >> even a fit bit a great example. dual lingo another app that came out of carnegie mellon. i'm interested in terms of the reputation while in many cases corporate america looking for research is coming to you guys and you're tracting those companies and talent, reputation nael to be a stanford or mit or take the case of a stanford do you need to have a division one athletic facility? how do you make sure that carnegie mellon is part of the broader conversation that you're able to draw awareness to everything that's happening on campus or do you not even want to get involved in that realm of things? happy to have your quite good i would add division 3 program or are there going to be more changes that elevate you towards that type of fully top tiered institution? >> so carnegie mellon is a top tier.

if you take the area of computer science, for example, the computer science school of computer science that andrew leads -- >> in that regard of course, but i mean even on other avenues like athletics, some of those kinds of levers that people throw sometimes. >> so it just turns out that carnegie mellon has distinguished itself in one area that we have more division 3 athletes that have a 4.0 average than any other university. so obviously given the size and the scale what have we want to do we cannot do everything, so we have to pick and choose what we want to do. we don't have a medical school, we don't have a law school nor are we trying to acquire one anytime soon. >> exactly. >> so i think one of the reasons our computer science school has become world leading is because deliberate decision was made by one of my predecessors that this is an area of significant growth and we have an opportunity to be a world leader. >> and now we see all the funds

coming in of course on the business school side with david tepper who we talked to earlier has done. again, it's really incredible, hanging out with herb here and looking at the vanguard of where robotics and a lot of this is going, whether the neighboring bought, the drones, it's incredible stuff. subra suresh. only one of 19 americans to be elected to the academy of national sciences and medicine. >> andrew moore, thank you so much for joining me this afternoon. time for a cnbc news update let's get back over to sue herrera. >> here is what's happening at this hour. the world health organization issuing a statement clarifying its latest stance on processed meats and bacon in particular. it says it's not asking consumers to stop eating those foods, but that reducing consumption of them can reduce the risk of colorectal cancer. democratic presidential hopeful bernie sanders calling for expanded social security

benefits and legal iedsing the importer of prescription drugs. this came during a discussion with seniors in new hampshire. beverly hills is among four california cities where water utilities have been fined for not forcing residents to conserve enough water during california's record drought. the city was find $61,000 making it the only community not located in a desert to be singled out for those penalties. and fossil remains found in spain are shedding some light on the evolution of apes, the well preserved skull and skeleton of a creature that lived more than 11 million years ago was discovered in a dump in barcelona. scientists nicknaming it leah. and that is the cnbc news update this hour. have a great weekend. see you next week. all right. sue, thank you so much. our sue herrera. president obama sending a small amount of special operations force toss syria. will that be enough to defeat the islamic state in we'll talk about that next.

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the white house announcing special forces units will be deployed to syria as part of its strategy shift to fight the islamic state. joining us with more thoughts an reaction now is andrew tabler a

senior fellow at the washington institute for policy. a former resident of syria and author of the book "in the lion's den." andrew, welcome to you. >> thanks. >> generally speaking we heard from john mccain on this issue earlier and other hawkish congress men and people largely who are upset that this is too little too late out of the white house. is it? do you agree? >> it's a small move. it's sticking your toe in syria. it's going to improve some effectiveness probably of our forward air positioning and allowing us to hit better targets which we desperately need, but it's not even close to being necessary not only to fight isis but also really significantly affect the syrian war which is spilling outside of its borders like never before. >> and also i'm sure an dree risks a confrontation with russia even did accidentally.

what do you think about how close u.s. and russian troops are to each other? understandably they've drawn up documentation trying to delineate who is doing what in the territory. does this increase the risk of the conflicts. >> the troops are pretty far apart. the bigger problem is the posturing. i think you saw the statements yesterday by the russian against ministry calling into question the entire american intervention in syria. also the russians were quite firm with the u.s. when it announced the air strikes is month ago, to get out of syrian air space. most of all the russians are intervening on a massive scale. >> i want to bring in evan newmark here. evan. >> andrew, what's the purpose? what is the objective of obama's maneuver here? is this political cya or is there some definitive objective

to this action? >> yeah, it's a great question. so tactically it's so support an a rar tribe coalition associated with the kurds in northeastern syria to take over an area south of hassic a ka. it's designed to cut raqqah off of mosul and either places where isil is strong. that's tactically what it's supposed to do. overall it's supposed to be part of a larger effort for the united states in syria and it's a recognition that our strategy until now has not worked. not in terms of ending the war but in terms of seriously rolling back isis. >> san drew, just briefly, do you expect inevitably there will be more boots on the ground to follow? >> yes, i think usually a toe is followed by a foot. and a good leadership will keep us off of that slippery slope but we're intervening with a narrow faction, the kurds who are not eibel anti-assad, assad forces will be close to where these american forces are going.

the rest of the country is in flames and the russians are pounding the opposition that we covertly back in syria and that means we're fighting and talking at the same time, which is difficult. >> andrew, thank you so much for skroing us this afternoon. that's andrew tabler. >> we just wrapped up a big week for earnings but the parade does march on next week. we will get results from facebook, disney and des la. the key factors to watch for next. o all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you need. td ameritrade. you got this.

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welcome back. we begin with a news alert on fan duel. seema mody. >> pierre gar son washington redskins football player filing a lawsuit against fan duel that is seeking class action against the online fantasy football platform. he says he is bringing this lawsuit against fan duel for using his name, image and likeness in daily fantasy contests and through advertising on tv ads and infomercials. fan duel rival draft kings has a licensing deal with the nfl but it appears fan duel does not. a reminder that comcast parent company of nbc, cnbc and msnbc and nbc sports are among the investors in fan duel. that's the latest for now. back to you. wow. all right. seem marks thank you for now. we have big earnings coming up as well next week, facebook, disney, tesla. i don't even know which one to pick up with here. sara, what are you watching?

>> facebook is going to be an interesting one, we will get some consumer names, kell low coming out on tuesday, clorox on monday, weight watchers on thursday which is not a big and important one but a stock that's up 270% over the last three months alone because of the oprah investment. i actually am going to be watching the jobs report on friday. it is an important one after we've seen the pace of job creation slow down over the last two months and with the fed sort of tilting farther toward the december rate hike it's going to need to see an improvement in jobs. >> you know -- >> mike, go ahead. >> disney a fascinating situation right now. there was a violent shakeout in this stock a couple months ago, it really arguably kicked off that one down leg into the august lows because people panicked about the entire cable business model. that stock is back up toward $115, i don't think anybody saw you it roaring back the way it has. you had this real scare about what are the underlying

fundamentals of the cable eco system. i think we will get a glimpse of that and see if people have maybe let the panic pass too can quickly. there was a down side overreaction. we will see how much is justified right now. >> disney shares are showing they were down 1% today. there was that news about espn with regard to grant land. at what point does espn become a problem with disney investors that disney thinking maybe we are better off spin tg out. >> i think the noise about -- anybody who follows media gossip or scuttlebutt or anything in the media industry is going to overreact to this particular move. i'm regregt it myself that espn did this but in general as a brand and company and product i don't think espn has to worry so much about its image because it hasn't been great for a while. it's much more about what can they charge. people still have not cutting the cord because they don't like espn. that's for sure. that's not the reason they do it

i mean. >> evan, we have to go so we can talk about drones. the next generation drones. >> i knew i was going to be preempted by either a driverless car or drone, kelly. i knew that was coming. i know you are not sorry about it, either. robot snakes, also. >> no, i'm not.. i think you're actually going to like this. up next i will take you inside the land that is bringing these amazing devices to life. you are not going to want to miss what they're able to do. also don'ting tricked by running out of treats on halloween. the company that can deliver candy to your door in a matter of minutes. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world.

welcome back. from the carnegie mellon campus we've already seen autonomous cars and snake bots. now we have another edition of the spark with another faefrt, drones. get ready to meet professor singh whose team's work is flying high. this is amazing. we just saw him pick up off the ground and that monitoring is showing the rendering of the entire room. >> right. >> incredible. from sensors that are on that drone. >> on there is transparency, liquidity is a laser scanner that makes about 300,000

measurements per second and the trick is that every measurement is taken from a slightly different place. what we are able to do is able to register all these points and put together this three-dimensional reconstruction. >> what we're seeing is the flight path and the look that's being rendered around t what's so considering i'm guess something let's pretend that was a bridge or let's pretend we were in a nuclear plant or something this is giving us the ability to go inside. >> what this allows us to do is create an accurate flee dimensional model. often these plans don't exist anymore or you just want to know what the current state is of something, you might want to look at a vessel and see is it still structurally sound. >> other uses could you see if we are talking about a drone that can see the environment around it and has the computer equipment on board to be able to adapt to that environment? >> okay. so anyplace where you need to affect the infrastructure, this is a good thing. bridges, inside chemical plants,

nuclear plants, petroleum plants. >> you think this is help solve our nation's infrastructure problem? >> there is a lot of things that go unmeasured. we don't detect a failure until it happens or someone notices or the drones we're used to seeing but this isn't any old drone. >> what is special, it has all of the sensors and computing that you need to do this kind of work. that is what we specialize in. we are not building the drone, we are adding the intelligence on it. >> how much would something like this cost? >> it would run you i would say a few tens of thousands of dollars. >> what is the biggest challenge in developing this. >> the think the biggest challenge is to fly safely. >> i can't fly it. >> if i were to tell you to take this and stand here and go to the next building over and watch a screen or display and make sure it stays safe and it doesn't do anything that it will be -- will be bad for the drone, that is a harder problem. >> you want this drone flying

itself, basically. >> yes. we want it flying by itself. i don't know, evan, i'm pretty impressed. >> very impressed. i think they need an army of the drones to just gow there the lincoln and the holland tunnels all of the time. if you go through the tunnels, you know things are not good in there. >> that can stay aloft by the way for 15 minutes. and mike, one of the things i was thinking about is what advancements in battery technology would mean on the drone front and other things such as cars and personal devices. if tesla can get that right, that is a big deal. >> it seems it is this crucible of a lot of technology needs we have and all in the drone space. it is about the processing power and the camera quality and the battery life as you say. so it seems like the excitement surrounding this area and the commercial applications are driving it. >> and i wonder, kelly, if you have any thought on this because you have done work with it, is the regulation there? we look at walmart applying for

a permit to start testing drones. how far ahead of the technology is the regulation? >> this might be an area, sara, it is so interesting, if the regulation is going to be there at all because we are talking about aircraft, it might have to be as sophisticated as the device itself. i don't see how else can you make sure there aren't huge issues with all of this kind of technology. although maybe we should take the approach of europe and other places and say, hey, let's throw it open to the development first and then kind of come in after once we learn more about how far we need to go in terms of regulating it. >> it feels like we need our own faa for sure. >> the weird thing is so much of the infrastructure, in the cities like new york, you have unbelievable drones that are giving you all of this information but that -- there is a huge disconnect between that and the fact if there is a broken water pipe or a broken -- a broken steam pipe, they have to dig up the whole street.

it is like you have supertechnology and then 19th century technology and it won't help you. >> evan, it is easier to build the new economy than to fix the existing one. in pittsburgh, trying to get here from the airport last night, the major highways shut down and the bridges are being worked on. if that can fix this problem, i'm impressed. here is a scary thought for halloween, running out of candy. jane wells know you won't be tricked by rinning out of treats. is that for the droeb. >> may the gords be with us. it is hard being a storm trooper when it is 82 degrees outside. i'm not the only thing hot. a fast growing app from the bay area that will save you from having your house egged by teenagers if you run ott -- out of candy when "closing bell" returns.

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well, we lost jane's mic. i think the shot speaks for itself. sara what, do you think? >> she was able to get the microphone inside of the costume for the tease -- >> i hope she's not suffocating. >> i thought she was staying in character because they don't speak. >> i thought she was going to talk about candy. and i would make this point on candy and it is a serious stocky point because i followed hersheys this week and nestle and the companies are struggling with what the ceo of hershey actually said was weaker demand for candy at convenience stores and at different -- >> has america gone organic? >> no, it is true. >> and nestle, they are changing the ingredients in things like chocolate bars to hope to revive demand. it is a big shift. >> guys. ihs put out a note, it is a halloween candy note, which if i recall the numbers right,

thought we might see a -- a several percentage point price increase because of cocoa and sugar but because the demand isn't there, over all this halloween is flat from last year. but we had superstorm sandy and everything before that. >> and hershey cut its outlook for the year. halloween is a strong time. >> i think we have janes wells back. hang on. let's get out to jane. can you hear us, can we hear you. >> reporter: apparently the jedi got the better of me there for a moment. but the dark side of the force has returned. and if we could just show you the video real quick. there is an app out of san francisco, the east bay, called spoon rocket. and what they are promising, if you use their app tomorrow and run out of candy, they will deliver replenishments within 15 minutes. 40 ounce backs for $13. and it is not any lousy old

tootsie rolls, it is almond joys, kit kat and hershey bars and they have pound a thousand pounds of candy. and the regular business is meal delivery. they make their own meals and deliver them. this is as low as 6:00 dollars. started by two guys out of california. before you laugh, they've raised $13 million in funding. so this is a marketing ploy but the business appears to be real. >> not too shabby. now we know how to stay fully stocks. thank you, jane wells, out in the field there. and evan, in particular, herb, my robot co-host buddy heard us going back and forth on the market earlier and he has a message for you. >> you are not always right. >> i didn't know if you could hear that. >> it is good i couldn't hear it. >> he said, mark, you are not always right. >> think the snake is creepy. >> no offense. >> it is, sara.

it is. >> you don't take a snake bot with you. >> that is why i was squealing. it senses your arms and knows how to move. that does it for us on "closing bell." what a week it has been. thanks to everyone at carnegie mellon for having us here. "fast money" begins right now. thank you, kelly. and "fast money" does start right now for friday. live overlooking time square, i'm melissa lee. we have the panel. tonight a slew of erns from tesla, shake shack and facebook. for one there is a sign of a breakout and we'll tell you what it is. and valt breaking below $100 a share and there was a three-hour long investor call today. but very bizarre comments that were made that have people talking. we'll tell what you he said. but first, the incredible month of the ma.