people will get more comfortable with the value. >> thanks for your thoughts, appreciate it. more on facebook in the conference call. >> a big night on "fast money." we'll see you tonight. and thank you all for watching. "the closing bell" begins right now. hello, and welcome to "the closing bell." i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth. six words weighing on the market today. that would be december would be a live possibility. i feel like i'm on wheel of fortune. that's what janet yellen said during a congressional hearing as stocks moved lower on that news. the dollar strengthened, hitting a new high against the euro. and oil down more than 3% on the session so far today. >> checking out that dollar index. it's nearly 98. something to keep an eye on as we have another batch of

corporate earnings. drug price drama hitting capitol hill. taking a look at the rising cost for patients. we'll tell you which pharmaceutical companies are under fire. >> and who needs netflix? well, cbs is hinting at a new ad-free all-access streaming product. we're going to dig deeper into the real cost of cutting the cord. >> and then putting it all back together. >> we break news here and put it back together, too. >> facebook, whole foods, qualcomm all reporting facebook the only one in the green at the moment. we'll give you a preview over the next hour. >> let's begin, though, with tesla soaring today after last night's earnings that you reported. phil lebeau has details for us right now. >> we said yesterday it was going to be all about the guidance, and there were some people expecting tesla to perhaps say the fourth quarter might be a little bit light. instead, tesla said it expects to exceed what many people

expected. altogether, deliveries of all vehicles, and mainly it's going to be the model s. but there's some model x in there as well. between 17,000 and 19,000. that means for the full year, it will deliver at least 52 to 50,000. could be up to 52,000. they did talk about production of the model x and bringing some of the seat production in-house as one of the challenges they face. here's elon musk talking about his optimism as he sees the ramp-up of the model x come along. >> the main thing is getting up production. we're making progress with each passing week. actually, seven days a week, every day, i get an update on the manufacturing process. we see no fundamental issues. >> no fundamental issues. that's one reason why a number of analysts were out also this morning. fairly bullish comments.

we saw shares of tesla getting a nice pop, up more than 10% today. keep in mind that march of next year is really the next crucial data point, if you will. that's when they will be unveiling the model 3. the mass market tesla that they say is going to be priced somewhere in that 35 to $40,000 range. if they can do that, and they can be successful, that would be a big milestone. >> so, you know, the last -- seems to me, the last quarter earnings, and the sales figures, we talked about whether they could fit that very ambitious number for this year. what was it -- how many cars were they expecting? >> 50,000. >> but they're not going to make that this year. >> they say they will. that was the guidance. that they're going to deliver between 17,000 and 19,000. your skepticism, bill, is similar to what we heard from other people who said look at the first three quarters as they were preparing for the model x. 10,000, 10,000, 11,000, roughly speaking. came out to about 33,000.

they needed to get to 16,800. they say they're going to be there. there are more than a few people who have come out and said i'm not sure they can make it. but they were very clear in the conference call. they expect to make 17,000 to 19,000. >> the determination reminds us of volkswagen. their bid to become the number one automaker in the world. what's the latest as we now see brands like porsche pulled into this investigation? >> porsche and audi. both have put stop sale orders in for their dealers in north america. and that's a big deal regarding these diesel models that are impacted. we're talking about the v vw touareg. the significance, kelly and bill, of porsche and audi in here is when you look at all of these models together, this stop sale alone -- we're not even talking about the one in september. 16% of the volume in north america. and audi is having a great year. second fastest growing luxury

brand in north america. >> seeing them everywhere these days, the audis. we're pleased to welcome wilfred frost. over there in europe, vws are growth engines. >> absolutely right. volkswagen, huge automaker for europe as a whole. also, of course, for germany. i think it's interesting to bring in how this is affecting markets more broadly today. volkswagen down some 9%. autos as a sector as a whole at 600. all of europe, not just germany, down 2%. if we look at vw overnight, they

said could cost 2 billion. share price takes 9 billion off the market cap. we saw recently their export numbers have been slipping much like other countries. there was a real slowdown. now their biggest automaker has these issues. what happens to the german economy? are there signs it will be able to fund migrants, other social issues that germany has to deal with at the moment? >> i think the migrant issue is another matter. but you're right, this is terrible branding for germany as a whole. merkel has said made in germany, still stands. it's still a strong brand. saying look, you've got to reassess your complicated ownership structure.

clearly there's a negative undertone overall. but if we look at the dax itself, it more than took part in this global relief rally. in fact, it was up 12%, more than all of the u.s. indices. vw itself on a 30-day view, including today's decline, that's up 10%. so they all took part in this rally. part of that, the bounceback from the volkswagen because that came late september. >> part of that too is mario draghi. so we reflect on what he's saying, opening the door to do more quantitative easing. is that peppering over some of these problems? >> absolutely. i think that's what's moving forward, to actually see that action. it was an amazing six-day spread when we got a very dovish message from mario draghi late in october. the fed coming out hawkish. both in the last 24 hours have reiterated those messages, highlighted by the euro dollar's move. >> and your own uk bank, waiting to see what they do tomorrow. >> absolutely. less focus on that because it's unlikely we'll get such a clear message. but the way the euro dollar has

gone, from 114 three weeks ago, to just under that 108.5 today. that's 5% decline. we've got spreads between the ten-year german and u.s. bonds at highs not seen since the euros at 105. that's how much this is priced into the bonds, and that highlights why equities have rallied so much as well. >> happy to let the u.s. go first this time around. >> did you say we've gotten a clear message from our fed? >> well, i'm not sure. >> i don't know if we've got a clear message, but it's a clearly different message from mario draghi. >> that's true. wilfred, good to see you. >> my pleasure, guys. >> wilfred frost joining us here in new york. let's get some breaking news on kraft heinz. seema modi. >> kraft heinz announcing the closure of seven manufacturing facilities in north america. laying off about 10% of its total work force. their decision to consolidate manufacturing across the kraft

heinz north american network is a critical step in its plan to eliminate excess capacity and reduce operational redundancies. shares down about 1% on the day. >> we were waiting for some of this news to flow out of the company. cost is a way to boost those result. >> let's get to our closing bell exchange for this wednesday. joining us, jonathan is here with us at the new york stock exchange. rick santelli is in chicago, and you know we had janet yellen speaking to the financial services committee on the house today. said we could raise rates. and you did see that as a result in the treasury market. >> janet yellen's testimony trumped all else. look at what the energy market

did. even though it's a dollar dominated energy market. i think that congressman brad sherman, democrat from california, summed it up best. god wants janet yellen to wait. i found that somewhat humorous. also, janet yellen wasn't supposed to testify today. the head of supervision was supposed to testify. but it's a post that was supposed to find an appointeeing and the president has that role. five years we're waiting. five years. so i found that fascinating. as far as will janet yellen do it, you have six words. i have three. just do it! i'm sick of all the verbiage. either you do it or you don't do it. it's probably a bad time to raise rates. i don't think the economy is better now than it was before the september meeting. but rates aren't at the right place. so you have to wait. rates shouldn't be at zero, but it's the wrong time to raise them. janet, you're going to have to figure that one out on your own. >> it wasn't just gellen's team, by the way.

what do you do with energy here? >> with energy, you need to see the read-through. that's showing that global growth is slowing down. some of the other interesting data that came out today was european pmi numbers. they're growing at the fastest rate they have in six months, going back to the draghi conversation you had earlier. came in at 53.9. lending to further credence that europe is a great place to invest. so you talked about volkswagen earlier. that's just a small holding in the dax. and representative of germany. if you actually look at the real automotive names there, it's bmw. bmw beat and raised yesterday. dimeler is doing exceptionally well. the german economy is performing and you're getting these european economic numbers that are showing that strength. spain was actually the fastest growing economy over there. so what you need to do is actually see the global read-through. you're going to see china maybe slowing. they're not having their huge demand for oil as well as the emerging markets, but go to markets that are working and

that's europe. >> meanwhile, we've had two strong days to begin november. monday and tuesday. today we're kind of meandering here. what's going on on the market now? >> that's right. we finished october strong. it felt like we were coming into november. but today is kind of a pause. a little bit of a day off. this type of activity we have seen before ahead of jobs numbers. m&a activity. so we're getting this opportunity now for investors to really take a step back and evaluate where do you want to invest your money at. clearly, ms. yellen's comments today adds more to that conversation. more to that debate that we've had back and forth. when is this going to happen, if it's going to happen? as rick said before, do it now. it's never going to be the right time. i'll debate the right time is in june. someone could debate the right time is going to be in the second quarter of next year. let's just get this moving in the right direction. >> i don't understand how it's not the right time. the jobless number at 5.1%.

if you look at core cpi, you're at 1.9%. the fed says we're data dependent. we look at the pce, personal consumption indicator. that's at 1.5%. so if there is a time, the time is now. >> i'm wondering, they mentioned that both yellen and crude are moving lower. talking about rate hikes. the dollar index is up almost another point to 98. do we expect more of the same for both of those going forward? >> i think oil has its own fundamentals. it's going to be in the cluster of what's going on with the dollar. and there's no hiding from dollar's strength. whether janet yellen tightens now or i guess the possibility she won't tighten before we get into a recession, but let's assume that she has room, that there's enough of a runway for her to tighten. it's going to strengthen the dollar. there's no way out of that box. i would look for more

multi-national to be blaming the dollar index, but i usually don't hear apple blaming the dollar for what's going on at apple. i guess at the end of the day, we've forgotten. if all we compete on is the cheapest price, then the dollar index is going to be important. if you make good products, well, then again, you can add in enough to cover those, and i think that speaks volumes about the state of the global economy. >> all right. thank you, guys. i suspect if we had these three on the fomc, the fed would have raised rates long ago for you guys. thank you, guys. we'll see you later. appreciate it very much. 45 minutes to go into the close. the dow is down about 50 points. the s&p giving up eight. the victoria's secret is higher notably by almost a point. the nasdaq down only about five. >> and brace yourself, we have another huge wave of after the bell earnings tonight, including facebook, whole foods, and qualcomm. those are among the big names reporting less than an hour from now. we'll get you ready for those releases coming up in just a moment here. up next, capitol hill lawmakers circling the wagons on

out of control drug pricing. find out which companies are in the cross hairs.

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we have an update on glen corps. it is back on track. that bearish analyst note that put its financial status in doubt not too long ago. shareholders have been put in $2.5 billion. the stock up today 4.6%. >> some members of congress are calling out pharmaceutical companies for out of control drug price hikes. meg tirrell joins us now with more. >> the house democrats starting a traffic force on drug pricing. a press conference this morning in washington. actually putting up posters. saying that they're really trying to home in on these companies that are making acquisitions and raising the price of drugs. mike pearson there being highlighted. we also got to hear from some of the congress people on just what they're trying to accomplish

here. take a listen. >> it is time for us to look at the regulations around drug pricing. to get the information that we need. to have sensible rules that make access for ordinary consumers, ordinary taxpayers who are helping to develop these drugs, make those drugs available to them. >> now, industry organization bio coming out today saying in part it's disappointed that these politicians are focusing on the price of drugs and not the benefit they bring to society. this has been an ongoing saga here, and really trying to find out how drugs get priced is something that the senate said today they're going to start investigating as well. two senators sending letters to four companies. valiant, touring, the touring ceo's former company, and a fourth private company. just trying to get more information as to how they made pricing decision about acquiring drugs and raising their prices. this has been hitting the stocks

of valeant today. maybe people are so used to it's not causing stocks to fall, but definitely continuing its focus. >> one of the issues with a company like valeant, they zeroed in on a drug that as soon as the company acquired it, they raised the price by some thousand percent. when a company does that, and it's publicly available, does it make it that much harder for them to go back and say hey, we had to do this, or can they still make that case? >> valeant actually hasn't made the case that it had to do it. valeant says these were mispriced drugs, actually priced lower than the utility that they were bringing and they saw an opportunity in acquiring them and raising their prices. you have to think with the two drugs they acquired, the amount of revenue that they were bringing in by raising the prices is nothing compared to the amount of ire focused on valeant. then they ran into other problems. >> and they've become the poster child in all this. but you mentioned recently they are not even close to some of

the other drugs that are out there that have a much higher price. we put a list together of some of those that are out there. i don't hear a whole lot of talk about them. >> it's really interesting. there's this whole area. they're mostly rare disease drugs. these all cost more than $500,000 a year. this is a list provided to us by express scripps. fewer than a thousand patients have these diseases. they all cost half a million-dollmillion dollars a year. these don't get quite the same amount of scrutiny as these other, mostly older drugs where they've been acquired, and then the price has been raised. but some people are starting to wonder whether these rare disease drugs are going to come into focus as well. >> i just wonder where this all leads. is it the opening move in a gambit that comes with federal control, to an extent which we have not yet seen? >> bearing in mind how strong the drug lobby is at the same time, right? >> that's right. all these questions are swirling. what kind of price controls could we even have?

how could any of these things be accomplished? hillary clinton and bernie sanders have both said things like medicare should be able to negotiate the drug prices. they've said things like putting caps on the co-pays patients have or importing drugs from canada. it's yet to be seen if that would actually have impact on the price of drugs. other people have said that's not really possible with our system. it's really unclear where this goes. >> meg, thank you so much. meg tirrell there. hey, kelly, bill. the fed president says he agrees with janet yellen, he says the december meeting is a live possibility for a rate hike. he goes on to say that his take on the u.s. labor market is actually that there's a little more slack than suggested by the 5.1% unemployment rate and he would like to see a bit more in terms of wage inflation, but points out that wage inflation is well below objective.

so in agreement from one of the top fed officials with the fed chair today on this idea of december being a live meeting. >> maybe stanley fisher speaks in a little while, to be the guy who made it expolilicit. how much more do you think that might affect markets and how they interpret his remarks? >> i think it's important. there's a time where the fed gets to go out and speak its mind. there's a time when they begin to coalesce around the chair. they may be doing that on this idea of a december rate hike. i think that bill has, as you said, been a little more on the dovish side. but certainly not far to the dovish side. i think him moving back to the center saying, you know what? a quarter point hike would not be that far from where he's spoken already. >> one time janet yellen. you got that. two times with bill dudley, that's a coincidence. >> we're going to be glued to

our tvs watching fisher. i know kelly evans will. >> always, always. >> with the popcorn. >> steve, thank you. >> we have 37 minutes left in the trading session here. lackluster trading compared to the last couple of days but very interesting trends among individual stocks as the dow is down 51 points right now. >> a top media analyst will explain why you may want to think twice before cutting the cord with your cable provider. >> up next, snoopy and charlie brown in 3-d. good grief! the son of charles schultz talks up the new movie that he wrote, featuring the classic characters and 21st century movie technology keeping the cartoon current. that's coming up after this. kin yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to 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. whyour boss?ork for? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

welcome back. keeping an eye on markets. groupon sinking towards its record low. it's currently just below three bucks. the sales sparking a wave of analyst downgrades. rich williams replacing the co-founder, who will resume his role as chairman. >> finally something that happened before i was born, actually. it's been 65 years since the original comics strip was launched, and 15 years since it ended. and charlie brown and the gang are back. they return on friday. it's a new film called, what else, "the peanuts movie."

>> joining us is craig schultz, the son of the late peanuts creator charles schultz. >> glad to be here. >> welcome to the new york stock exchange. >> thank you. it's awesome. >> this is a movie that has meant so much to so many people. now there's a lot at stake. i just got the christmas stamps. the merchandise is everywhere. bill and i even peanut-ized ourselves. >> i saw that. >> how much are you going to continue to move forward with the peanuts as a brand and what's it say for you personally? >> it's keeping my dad's legacy alive. almost 18,000 comic streets. we thought it was time to bring him to the screen. we work every day to continue the peanuts legacy. >> you're using this modern technology, animation technology. do you worry that people have a certain picture in their mind of what charlie and lucy and everybody should look like? and they won't look exactly the same with this movie. >> absolutely we did.

when we first started the project, everybody tended to go to the dark side. and as our teasers came out, people started seeing it, i think we changed all their minds. i think when you see the movie, the look of it is just absolutely beyond beautiful. i feel they not only hit a home run, they hit a grand slam. i'm proud of the story we created. >> it's been a wobbly year, though, for the box office. and there's so much changing in terms of how we watch movies today and how we watch television shows. what are your reflections on that and where you take peanuts content going forward? >> i think the movie is cool because the movie is like where you can take your family. you sit them down in your room. they're not distracted by cell phones and ipads. you really have to focus. when i was growing up and charlie brown christmas came on, we ran to the tv set and you had to watch it then and only then. now everything's available all the time. you can back it up. the movie theater is the only place you can go and sit down,

you have to watch it. so i think it's an appropriate venue for the movie because of that. >> peanut's rights owned 80% by iconics brands. you've got the other 20%. how will that work going forward? have you been generating the content? how much input do you think you have going forward? >> for 50 years, my dad never owned the characters. he never had control over those. but we do. our 20%. our company in santa rosa. they're overseeing the quality control. every product is made around the world. if we have any tweaks, whether it's design or proper usage, dealing with the licensees and the business aspect of it. >> you apparently were the inspiration for pig pen?

>> i was a nerdy kid. he's cool, because he's the only one in the whole group that really has no problems with himself. he's happy being dirty. he's always in a good mood. charlie brown's got troubles. >> what's your secret? >> the secret is just to be easy going. i try to be easy going and remember the family. >> thank you so much. >> glad to be here. >> craig schultz. the peanut movie is out this friday, november 6th. time now for a cnbc news update. let's get to sue herera. >> can't wait to see that movie. here's what's happening at this hour. at least 18 people were killed and up to 150 trapped when a factory collapsed in eastern pakistan. officials say rescue workers digging for survivors have recovered 40 injured people so far. it's not yet clear what caused that collapse. chipotle isn't the only mexican chain with food safety issues. qdoba may have given some diners typhoid fever. health officials believe only three people were infected back

in august, but the report is coming out now because the infection can take a while to incubate. officials say there is no ongoing risk. donald trump becoming the first major republican presidential candidate to file for new hampshire's presidential primary. he was surrounded by reporters, supporters, and a few gawkers, as he made his way to sign the paper work and hand over his filing fee. and an extremely rare 1 12-carat blue diamond is expected to sell at auction for a record $35 million to $55 million. the gem is on display at sotheby's in geneva. it was discovered in january of 2014 as more than a 29-carat blue rough diamond at a mine in south africa. that is the cnbc news update this hour. back to you guys. >> thank you so much. the dow is still down about 60 points. not much movement on bill dudley's remarks. if you want to argue he was

putting himself pretty forcefully behind janet yellen's case. we're still seeing markets look roughly where they were top of the hour. the nasdaq down five. >> when we come back, we're going to talk with a leading media analyst. he'll explain why cutting the cord may not save you as much money as you might think. >> and don't forget, go to charitybuzz.com and bid on a chance to watch our show and join me and bill here on set and our favorite wall street bar. >> it's such a great charity. go to lululeofund.com. you can learn about it and learn about it in the charity buzz as well. now, you get to come to the set here. you get to watch us do the show. we'll have drinks after. but we're going to add a few other fun things. >> especially if we get to 10,000. maybe we'll peanut-ize the characters as well. we'll do something. >> there will be other fun things. >> maybe you can join bill for a little trader interview on the

floor. something like that. >> want to be on television? >> there are possibilities. >> it's endless. >> charitybuzz.com. we're back right after this. 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.

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welcome back. joining us now is alan valdez. are you allowed to have the word bear in your title here? thank you for joining us. how are we looking? >> it's been a quiet day. over 600 million. nothing special. a lot of chatter today. >> been focusing on this december rate hike for so long. i think that jobs number today, if it's near that, 185, in that range, i think you'll probably see it. >> what do you think is the dividing line? >> 185 north. you'll get a rate hike. if it's lower, it will be december. >> oil is under pressure again. maybe a dollar is higher. is that going to be a hurdle for the indexes now?

>> it definitely will be. dollar is getting stronger. every day it seems to be getting stronger. that definitely will be a hurdle going forward. we saw that number today. down a lot. >> and the trade deficit. >> exactly. >> the feds have backed themselves in a corner. i think they really want to raise rates. at the same time, no inflation, oil is down. >> they're already tightening conditions here. >> something to keep an eye on. we'll let you get back to it. over to you, bill. les moonves told analysts yesterday that his company could soon be launching an ad-free all access service for $10 a month to go with its current $5.99 a month offering. this coming as some tv executives are reportedly looking to keep a tighter grip on their own content rather than farming it out to the likes of a netflix or hulu. but when you add up the so-called over-the-top services like nbc all access or netflix

or hulu, are consumers really saving by streaming and cutting the cord? let's bring in dan rayburn, principal analyst at frost & sullivan. we've seen this revolution to mobility and people are not watching traditional television the way they used to. is convenience going to be trumped by cost when you consider how many of these prescription services are going to be out there? >> it's a great question. consumers have a lot of options. there's so many different places they can go for content. consumers are looking for alternatives. and all the operators are starting to become more flexible in terms of the packages that they offer. mobile is a big thing. tv everywhere is a term you hear a lot from the msos. there's no question that consumption happens for video are changing. the mso has the change as a

result. >> system operators. >> we can show, for example, what the cost is. netflix is about ten bucks a month. hbo, 15 bucks a month. hulu 8. cbs 6, or maybe 10 now if you want no ads. showtime, that's 11. you add this all up. it's pretty significant. until now, people have either just had netflix. they might have had one or two. what happens when you have to have ten different options that all cost ten bucks a month? >> i pay $15 a month for my fios package. 45 is for paid tv. the moment you add netflix or hulu, and let's say you rent one show a week from itunes, you're already at $30. if you do cut the cord and you only go with online services, you're missing tvr. you're missing live sports. you're missing live news. so you're missing a lot of content. and you're also missing it in the quality that you get out of

tv. compared to the internet, which as we know a lot of people have problems. >> we should point out very few people had actually cut the cord at this point. they're shaving it to some degree. this is a trend that we anticipate more than it's actually happened at this point. >> that's trabsolutely true. the rate is 0.6% basically this year. that rate of decline is growing. in previous years, it was .1 of a percent. it's somewhere around 100 million. and at no time has the market even lost 1% of that in any one year. >> and even as we sift through this and reconstruct bundles that might cater more towards one demographic versus another, it still seems like they're people who have something to gain and something to lose from that happening. who would you say has something to gain and who has the most to lose? >> that's a great question.

so those that really win are the ones that control how we get the content, how we get the information to our home. how we get it to our devices. even though somebody like comcast loses last quarter, i think it was about 48,000 subscribers. they gained over 300,000 internet users. so either way, the msos win because they're providing the internet access they need. the losers could also be the msos at the same time, because the biggest threat to their business is not streaming services. it's the fact that they raise rates, every year like clock work. and raise them by such a large percentage. they are their own worst enemy. >> we need to point out comcast is the parent company of nbc and cnbc. thank you for joining us. dan rayburn of frost and sullivan joining us. >> so interesting. see how this all pans out. >> about 18 minutes to go. a little less. the dow is now down about 66 points. the dix up more than a point. the nasdaq giving up ten points.

that's half a percent. the nasdaq is somewhat better. it's only down nine points. coming up, it may be the bell of the earnings ball. we'll preview what to expect after this.

welcome back. here's a look at michael kors. better than expected earnings and rising demand for accessible luxury goods overseas. the news overshadowing the handbag and clothing maker's cut to 2016 profit guidance because of currency headwinds. david iron horn recently revealed a stock that's had a tough stretch earlier. getting some momentum back. >> we have an eclectic collection of reports due up after the bell. julia boorstin will be covering facebook for us. jane wells on whole foods. and john fort with qualcomm, telling us what to expect. kick it off for us. >> facebook is so big, its growth is inevitably slowing. investors are sure to focus on its new sources of revenue, including instagram ads, video ads and plans to use messenger

and what's app. the company's revenue is expected to grow to $4.4 billion on 21% higher eps of 52 cents per share. we'll have to see what happens in that valuation when they report. >> the same with amazon after i checked it last. jane wells has whole foods for us. >> hi, kelly. we'll get guidance for 2016 today. rehow is it competing and what will that do for its margins? john mackey told "the new york times" 365 will be to regular whole foods stores what nordstrom is to nordstrom.

comp store sales are only expected to rise .6%. >> thank you, jane. to john on what to expect from qualcomm. >> we're expecting revenues around $5.2 billion, earnings per share of 86 cents. it's been a tough year for qualcomm as it closes out this fiscal year. troubles if china. troubles collecting on its patents. the smart phone market overall has been slowing down as well. attention is going to turn to its guidance for 2016. analysts looking for somewhere around $23.5 billion. down 5% from what we expect this year. again going to be in the cross hairs. especially as more share goes to

apple. there is hope that with the new 820 coming out, qualcomm will be able to regain some of that samsung business. >> all right, very good. thank you all three. we will see you shortly. meantime, some breaking news on isis. sue herera back with details on that. >> yes, indeed, bill. a u.s. official is telling nbc news, specifically jim miklaszewski that evidence indicates it was a bomb that brought down the russian airliner over the sinai over the weekend. investigations reportedly are focusing on the possibility that isis or isis sympathizers were directly involved. the investigation is focusing on whether or not ground crews or baggage handlers planted the bomb on the plane. u.s. officials telling nbc news, specifically jim miklaszewski, that evidence indicates it was a bomb that brought down the russian airliner over the sigh

now, and that they are focusing on the possible that isis operatives or sympathizers were responsible for that. we'll get back to you when we have more details. >> thank you, sue. we know the uk has already diverted flights from over that area. ten minutes to go to the close. the dow is down 65 points. the s&p about ten. the nasdaq lower by the same amount. >> art cashen signaled 400 million to sell into the close. we'll see what impact that may have. our next guest will tell us why he says it's difficult to see a bear market coming any time soon. that's coming up after the break.

about seven minutes left with the dow down 68 points. joining us now, paul dietrich. you're still holding to we're in a bull market. you're not concerned? >> no, i mean, one, i don't believe the fed is going to raise rates in december. they may after the first of the year. >> today's comments

notwithstanding. >> if you read the comments carefully, she talked about that they could if she saw strong economic growth. we saw the adp numbers today. we are in slow, mediocre expansion. which isn't bad, but it isn't great. normally, we actually raise rates when we want to tap down inflation. we have no inflation. >> what do you think happens if they raise in december? >> i think there would be a very short-term -- there would be a very short-term correction in the stock market before the end of the year. if we don't raise rates, i think we're going to have a good end of the year. i'm for raising rates, i just don't think it's going to happen until 2016. >> as the stock market rises, is it anticipating a better economy or not expecting the fed to raise rates any time soon? >> every analyst i know is

expecting exactly what we have now. very slow, mediocre, solid growth, solid expansion, and if you look at all the figures, we're going to do 2.6 gdp this year. 2.8 next year. solid, slow, mediocre. i'm not opposed to that. it's not bad. but it's not something they're going to raise rates. the world bank, the imf, the central european bank, they're all going to come out again like they did in september. it's going to give janet yellen cover. >> we'll hold you to that. we'll be back with the closing countdown. we'll review today in just a moment. >> after the bell, numbers you've been waiting for. whole foods, qualcomm, transocean. the big earnings reports of the day being facebook. we'll get all of those for you. keep it here. you're watching cnbc, first in business worldwide.

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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. let's review. they said we would have a selloff on the opener and then it would take off. today, a bit of a rally, and then a selloff. down 58 points for the dow. can you tell where janet yellen made her comment that they might raise rates in december? this is the two-year yield. yes.

the dollar index took off. hit a multi-week high against the eurorow. it's up .79% intraday today. oil wept the other direction. the earnings coming out tonight. that includes facebook, whole foods, and qualcomm. you're watching one of the energy stocks as well. >> devon had numbers that were better than expected, and the bottom line is they're spending less. but their production is still pretty high. the bottom line here is they're learning to do more with a lot less. so marathon is going to report after the bell. i'll bet you they'll have similar comments. the production levels aren't dropping much. but they're actually doing okay with bigger capital expenditures. that's a bit of a surprise. what's the threshold for them

raising rates? a lot of people believe the threshold is much lower than people think. and that's one of the reasons the market reacted the way you described. >> stay tuned. here come the earnings on the second hour of "the closing bell" with kelly evans and company. see you tomorrow. welcome to "the closing bell." i'm kelly evans. let's begin with where markets end the day on wall street. we heard from janet yellen, putting december in play to make it more clear in case it wasn't already amid all that. about a quarter of 1%. the nasdaq almost finished positive, only down about two points.

investors now ready for a trio of big earnings reports. julia boorstin is covering facebook for us. john fortt waiting on qualcomm. we have our own mike santoli and stephanie link. more on today's markets. so welcome one and all. and michael, just begin with you. is this a market digesting the fed or is something else going on here? >> i think it's digesting its own move more than anything else. we had a 12% month. really a gentle, tame pullback, if that's all this was. we're due to stallout here. i do think you would have had a more violent equity move if this came as any kind of news to the market. >> stephanie? >> i think the market felt a little tired. a little directionless today. we didn't have the same leaders

that we've had in terms of energy stocks or financial. they kind of took a breather. we didn't have a lot of earnings to digest. time warner was bad. kors was okay. >> what did you think about time warner? what are you watching here? >> cable numbers for both companies. not particularly great. my thing is do you really believe two quarters in a row that disney disappoints? my pushback would be probably not. i'd be interested to say what they're going to say. i think it's a pretty benign day. i think you can explain oil, most of which is the dollar move. i know inventory was part of it. not a lot stuck out to me in terms of movement. >> whether or not it's the dollar, if we have the prerve raising rates and the dollar index continues to do that and

that move continues, what does that mean for oil?dollar index that and that move continues, what does that mean for oil? >> this is one of the things i think -- and i could be 100% wrong. but i think one of the unintended consequences of our fed's actions, whether you like them or not, is they've allowed other central banks to act in kind. my sense is they probably didn't take that into consideration, and it's manifesting itself in potentially the dollar really ratcheting higher. you're on what could be the eve of a fed hike as the eve of maybe rate cuts in europe and more qe in europe and possibly japan, which means the dollar ratchets to the upside twice as fast almost. i don't know if they thought that through, but i think that's what we're on the brink of. >> what does that mean for earnings? >> you look at the numbers. huge downward revisions this quarter. the market is just stretched here. when you look at valuations, they're stretched based on that

pe number as well. >> let's get to facebook results. looks like an across the board earnings beat from facebook. 57 cents a share. five cents above the 52-cent estimate. shares are moving higher after hours. revenues also strong. four and a half billion relative to 4.37 billion estimate. about 58% of all ad revenue. and user metrics. importantly, also topped expectations. monthly active users, 1.55 billion. that's an increase. average revenue per user, $2.97. that was about eight cents above estimates. of course, with facebook, a lot of different metrics to digest. but which is the most telling to you? >> i think the revenue beat is probably the biggest thing. to be honest, i want to see if this after hours pop is going to stick. this stock was really priced for a big beat. it really did run up that way. in terms of the options flow and everything else. >> everybody loves it. we'll have more from a couple of analysts in a moment. the shares up nearly 5%.

and what to you is this all about? >> yeah, i mean. the growth. it's still very impressive for a company that's getting better and has delivered pretty consistently after stumbling out of the gate. i would say the one saving grace is that i don't think they're going to give guidance about expenses for next year. i think that's the one thing that people are a little bit nervous about. they're going to continue to spend a lot so that they can grow, which is a good thing for the long-term, but that that operating leverage is not what you would expect it to be or want to see. that might lead to this rally continuing. so i think mike's point, we'll be interested to see how the stock reacts. >> what do you think? >> i don't think the stock is trading at all. you have a company that's still putting up 37% year over year revenue growth numbers at this level. and there's so much externality

that is possible down the road. the instagram numbers were definitely better than expected. it was well above the wall street expectations this quarter. it's really those instagram numbers. when you look at the vr stuff that's coming and the personal assistant with messenger and what's app, this company is acting a lot more like google these days or alphabet. >> i will tell you we've been bullish on facebook. i think this is a great quarter. i don't think this is expensive stock. you have instagram, what's app, messenger. they have so many levers they can pull. this comes in the wake of what google said. you have a huge run-up in google. facebook followed. it had the commensurate selloff. you're not getting it now.

this stock is a name you want to continue to own. i absolutely believe going into next quarter. >> one year ago, it was all about team engagement and the narrative was all about we really need to see m and es. i do think you have to keep in mind the initial reaction is not necessarily the one that continues. >> it's already off the highs of the session. we'll come back to this in just a second. our john fortt has the results. >> they beat on the top and bottom line. the stock is down after hours. i'll tell you what happens one reason why revenue came in at 5.46 billion. qualcomm has stopped giving full year guidance as they have in the past, and they're only going to give certain quarterly guidance. one quarter ahead, instead of the full year ahead.

we mentioned you have a shrinking smart phone market. more uncertainty than in the past. it could be the reason why the stock is down. it's now down less than a percent. their fiscal q1 looks to be a range revenue wide to $6 billion on the top line. between 80 and 90 cents. all of that pretty much in line. but there's lack of visibility heading into 2016, perhaps waiting a bit on the stock. >> john, thank you. let's continue to get these results in. whole foods is now hitting the tape. jane wells has the numbers. >> looks like a miss. sales came in at $3.4 billion, and the street was looking for 3.47 billion. eps, the street was looking for 34 cents a share. the company guided to between 34 and 35.

what whole foods is saying diluted earnings per share were 16 cents and they include a non-cash asset impairment charge, which works out to eight cents a share, and a restructuring charge, which works out to about six cents a share. they're saying 16 cents a share. also, comp store sales. the street was looking for positive growth. very minimal. .6%. whole foods is saying comp stores sales decreased .2%. we're also getting our first outlook for fiscal year 2016 from the company sales growth of 3% to 5%. that is markedly slower than what we have seen. so continues to slow. approximately 30 new stores including three of the 365 stores. 365, smaller stores, maybe like trader joe's. a margin of approximately 8.5% in capital expenditures. so we're going to try and figure out, again, the eps is 16 cents a share.

which includes the non-cash impairment charge of eight cents a share and a restructuring charge of six cents a share in. the face of increasing competition, we are not standing still. we've made measurable progress on many of our strategic initiatives over the past year. we're going to get on the call at the top of the hour and see if we can figure out this earnings situation. >> and we look forward to it. billion-dollar share buyback program, and the stock is down 8%. what do you think? it's too early to have a buyback program. they have to get their business in order. they're clearly seeing negative impact. competition. wal-mart now. and target getting into the more fresh food organic. >> isn't this when a company almost feels, stephanie, like sort of the -- like it's not facebook. the revenue growth isn't there. isn't that when they might turn and pull the buyback lever? >> i think they have to figure out what they want to do in this environment. because the competition is so intense. look at kroger. look at albertson's. wal-mart. target.

everybody is gunning for them. and they're clearly not seeing the traffic. and they're not seeing the ticket. and it's just not a reason to go into the store when there's so many other places to go. i'm not paying that. >> they have been pushing the buyback lever. a couple quarters in a row. they artificially elevated that eps number. look at the stock. it's been straight down the last couple years. the problem here is not anything that whole foods actually has an ability to change. it's just the total addressable market issue. they've saturated the market with what this product is. and there's really nothing for them to do at this point. >> and it's been a long, very painful adjustment in valuation from this glamour growth stock to something more ordinary. but now, i don't know exactly when it turns, but it basically has kroger's valuation. >> it's not even down there yet. >> it's close. >> i'm saying they're about to cross, and it's because the comps are not showing a sign of

bottoming. >> i'd rather be kroger than whole foods at this point. at least i know what my business is. >> this is a stock that's trading. when growth stories end, valuation gets in the way. that happened at the end of 2013 and hasn't been a pretty picture since. the seemingly -- the cure-all has been buybacks for stocks. but it doesn't work. stephanie's right. they've got to figure out their business before they throw money at their own stock. with that said, if this thing gets down to 25 bucks, which it may do tomorrow on big volume, i think you've got to take a shot on this one, on what will be at that point i think pretty reasonable valuation. >> i just wonder if maybe an activist gets involved at this point, or maybe they think about an lvo or something. right now, being out in the public and the scrutiny of the public and not being able to deliver, he's totally right. you just don't know where the bottom is. >> before all that, be sure to

catch walter robb with jim cramer. that will all start at 6:00 p.m. want to check in on shares of facebook. this one delivering an earnings beat. we saw the shares pop 5% after hours, but then lose a little bit of that as people will look at the revenue growth. 3.5% to the upside, though. what do they have to do to maintain this rally on the news? >> look, at this multiple, they have to continue to put up above 32%, 33% year over year revenue growth. i think if they continue to do that, the eps numbers basically don't matter for the foreseeable future. and they've got a lot of different things coming. i think a lot of people are going to look at the rollout of vr. not necessarily as is this a business that they're executing on, but this is a big endeavor that they're going for. >> virtual reality. >> can they execute? and i think a lot of people want to see, can they execute on something that's not necessarily core to the business of an app that is social. this is a totally different thing. it has hardware involved. i think a lot of people are going to look at that. the same way they look at

tesla's automated car driving system. >> mike? >> the momentum is obviously there. if your stock goes up 15% a year, it's a $300 billion market value. before very long, you've compounded that rate. then you have to start to ask exactly how much of the world advertising market share the company can command. that question doesn't matter yet. >> it's so clear that google and facebook are winning, and that's where the ad dollars are going. just contrast with time warner today. and i understand that those stocks, the media stock traditional ones are very cheap. they've been beaten down. a couple might be interesting. the real momentum is going to these two companies and there's really nothing holding them back. >> full circle. we love it. got to leave it there. thank you so much. there's much more coming up on "fast money" with guy and the crew at 5:00 here. they will be talking to the two senators leading the charge against skyrocketing drug prices. up next, much more on facebook's earnings beat and whether the stock's big rally is

sustainable. and does whole foods have an organic problem on its hands? a top analyst will weigh in coming up on "the closing bell." you're watching cnbc, first in business worldwide.

more earnings. we begin with seema modi. >> we're taking a look at cyber security arm fire eye, reporting a narrower than expected loss on its bottom line. revenues coming in below expectations. investors seem to be focused on the revenue guidance coming in at 182 million to 190 million versus the $201 million estimate. you can see the stock is responding after hours, down better than 14.5% after hours. >> what do you think about this one? especially as it looked originally like investors were meeting it positively. >> people are worried about the product revenue growth. it's only growing 24%. a lot of companies would like to see that kind of a number, but it's decelerating from the 55% we have seen last quarter and fuels the concerns that maybe

you're seeing a little bit of a slowdown. i think this is one of the names you want to take a hard look at. i do believe this is where the dollars are going, into this particular part of technology. and with the stock down 45% from its highs, i think it might be worth a shot to let the dust settle, but i like it. >> there's eamon javers. he's got breaking news on transcanada for us now. what's happening? >> that's right, kelly. the state department told reporters in a briefing that it has sent official written notification to transcanada that the u.s. government is going to proceed with its review of the keystone xl pipeline deal. this after the company, transcanada, sent a letter to the united states government asking for the united states to hold off on its reviewed process, saying they wanted to wait for a decision in nebraska before moving ahead with the federal process. all of this, kelly, is about running out the clock on the end of the obama administration. the obama administration has signaled that it would like to make a decision, probably likely rejecting the keystone pipeline before the end of president obama's term.

the company obviously doesn't want that to happen and would like to delay this regulatory procedure until a new administration comes in in washington after the 2016 elections. >> all the same, eamon, even if this administration and the state department does move against it, couldn't they still then resubmit it under a new administration or no? >> that's an interesting question. whether or not they could reopen the process, presumably -- and i'm speculating. presumably they could. however, if you look at the amount of time and effort it's taken, this is a month and years process, not a days and weeks process. the amount of effort to get back into it could be prohibited. >> i was just going to say the canadian government might be supported. thank you, eamon. facebook beating expectation on its earnings results. let's get more reaction from cio kevin landis, and mark lehman. welcome to both. i'm chuckling because you were both so bullish going into it, and so much of the investment

community really was -- they managed to deliver. how much more do they have to deliver going forward now for you to remain bullish on the shares? >> well, i think they have to continue to be the go-to platform for advertising. this is where people are migrating, too. i think he said it earlier. it's basically google and facebook. that's where you go for next generation digital ad spin. as long as they're that, the rest of these numbers are going to follow. that's built on great execution, great technology. but also on hanging on to this huge audience, which is why snapchat numbers are so, so impressive. >> the snapchat numbers? >> i'm sorry. the instagram numbers. >> just making sure i hadn't missed a big story there. >> i almost said something i shouldn't say. >> mark, what about you? what's this quarter really all about? and how do you value the shares?

>> it's about the metrics that they hit. they hit the advertising revenue metric. they hit the engaging number. they hit the montization. i think this election season is going to be a perfect example. when you hear people like ben carson talk about having almost 5 million followers on facebook, it tells you the power of the platform and i think this is going to continue in the fourth quarter. they look like they're accelerating. 300 million instagram users, almost 400 million today. so that's 35% year over year. i like to say this. they have a billion people looking at their facebook a day. they got a world cup final every day on advertising. that's just so powerful. and that's accelerating right now. >> i wonder if you could address the emerging long-term concerns about facebook, which is perhaps a changing kind of engagement with less people sharing and passing along other things. maybe a more passive user base. was that something facebook has to stay on top of? does it concern you at all at least long-term?

>> well, i think this is why they're not just grabbing more users when they go for something like what's app, or instagram. but they're also playing around with different ways that they engage people. so, for example, occulus seemed like this funny technology, but when you talk to somebody who's really into v.r., that really puts its hooks into you. people who get engaged that way, they're hyperengaged. you can see facebook being a little bit intellectually available. but staying focused on engaging that group and staying flexible and figuring out how to sink their hooks into people. >> mark, it's stephanie. i'm just curious what your thoughts are about the margin profile of facebook, and just the level of expenses that they're taking on to grow the business, which for the long-term is very positive. but for the short-term, maybe you don't get as much upside to earnings next year. are you concerned about that at all?

>> that was a big topic of conversation a year ago and they decided to make that. i expect they're going to keep the pedal to the metal because they are gaining that much share. they are bringing some of that to the bottom line. i think the margins that they're getting, some of these profiles are that much better. i think the spend is justified. investors are speaking with their mouths. they're buying the stock. >> after the performance of alphabet, amazon, and apple, now we know that facebook is adding to the number of big tech companies that are managing to continue to post strong results. we'll leave it there. kevin landis and mark lehman this afternoon. we have more earnings to get to, so let's send it back to seema modi. >> we are focusing on rocket fuel. the company's earnings. the company also announcing it has named a new ceo. former saleforce.com and microsoft executive randy

wootton. he joined in march as chief revenue office and will replace the interim ceo since march. we're looking at shares of rocket feel down 2% after hours. bitcoin prices have been skyrocketing lately and there's no clear reason why. is the bitcoin boom back? that's coming up. first, is the subprime auto lending a sign the red hot market may be nearing a top? we're back in a moment.

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welcome back. breaking news on expedia. what's going on? >> homeaway says they have agreed to get bought by expedia. we're looking at an expedia basically flat after hours. but homeaway shares are halted. we'll continue to watch that stock and wait for it to resume trade. expedia buying homeaway for $3.9 billion. barry diller will be on "squawk box" tomorrow. >> thank you. we've got kind of a big deal today. >> decent size deal. strategic. i think homeaway has been viewed as a consolidation candidate for a while. this was a $48 stock a couple years ago. people were not really sure how the company was going to navigate with airbnb says they're different. >> i just like what expedia is doing. they continue to make

acquisitions. they're not just sitting back and waiting for this industry to consolidate on their own. it's actually going after some of these really targeted specific niche areas, so they are going to be very well positioned forward, both here and international. >> that's a point. >> more than a fair amount is driven by subprime lending. phil lebeau has the details now. >> the question is, is it a subprime lending bubble? we'll have the data in terms of how much those loans have grown. take a look at just how much growth we've seen since 2011. this data comes to us from expeterse experi experian. there you see the most recent data, up to just under a trillion dollars. here's the breakdown in terms of rope in the third quarter. who's borrowing, who's up.

super prime. the folks with the best credit, they have the most increase of 8.3%. even more than those who have non-prime. or even subprime. they were up just 7.8%. we always hear from people -- there's a bubble in subprime. that's the only reason auto sales are running at a record level. uh-uh. the data shows it is not a double. i talked to experian explicitly about this. the average loan, the interest rate, because it's down about 4.8%, that's what it was in the second quarter. it's allowing people to pay lower monthly payments for those new vehicles. and by the way, guys, we have talked about this at length. everyone wants to focus on the automakers because of this bull run in auto sales. take a look at the dealerships. over the last five years, if you were playing the dealership stocks, you had a nice return in terms of what your return was on your investment. that's the story, kelly. i know a lot of people want to say it's subprime, but at the end of the day, the data does not back it up.

>> are your nerves calmed, mike? >> i actually don't think i needed too much calming of nerves. mainly because of the difference in how you make an auto loan and a home loan, for example. people remember subprime. one of the big problems is people assume the appreciation of the underlying asset. nobody is making a car loan, assuming the car goes up in value. >> you leave the car lot, you lose 30% of the value. >> i think it's probably the most direct way it has filtered back. >> couldn't afford in terms of other spending or not necessarily being the most productive purchase. >> i hear that from a lot of people. we are all creatures of what the market is offering. the market is offering us six or seven year loans.

it's not a wise investment because you'll be under water for a longer length of time, but that's what the market is offering. if you can pay 450 and stretch it out and get yourself a bigger suv, it's human nature that consumers are going to do that. >> and you've got to get to work. cars are critical for so many people. phil, thank you. let's take a quick look at homeaway. it is surging after hours on news expedia is acquiring the company. a 25% premium. there you see it. home away popping almost that amount. maybe leaving just a little bit of wiggle room before the deal is finally complete. time now for a cnbc update. >> here's what's happening this hour. a u.s. official telling nbc news that evidence indicates a bomb planted by isis or isis supporters brought down the russian plane that killed all 224 people onboard in the sinai peninsula on saturday. investigators are focusing on baggage handlers and/or the ground crew as the source of the

bomb. two more jihadists were arrested for recruiting for isis in catalonia, spain. the two were detained in a morning raid just outside bars. the arrests come just a day after authorities broke up the terrorist cell that allegedly aimed to carry out an attack in madrid. the mexican supreme court has ruled in favor of personal marijuana use. it ruled that individuals should have the right to grow and distribute marijuana, and while the ruling does not strike down current drug laws, it does lay the ground work for a wave of legal actions that could ultimately rewrite those laws. and a long last disney cartoon was found by a researcher in london's british film institute. the animation called sleigh bells runs about six minutes and stars oswald the lucky rabbit. the character was created by walt disney in 1927. i love that stuff. that's the cnbc news update at this hour. back to you. >> love it. thank you so much. is it time to put whole

foods on the shelf after its earnings miss? that's coming up. later, don't miss jim cramer's exclusive interview with walter robb. they'll talk about that tonight at 6:00 p.m. 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.

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welcome back. we have breaking news on facebook. let's get to julia boorstin with more. hi, julia. >> i just spoke with facebook ceo sheryl sandberg about what drove that company's upside surprise this quarter. >> we make a lot of investments in our ads business and those are really paying off. our ad revenue is up 45% from last year. 57% on a currency basis. and that's why we think we have the best mobile ad product in the market. we're able to measure. we have broad scale. so we're delivering returns for businesses and helping them make the switch to mobile. >> sandberg also noted that user engagement has been really strong with 65% of users coming back every single day. it is clearly one force behind growing revenue. as are video ads. sandberg saying they offer the 45 million small to medium businesses with pages on

facebook, a way to easily and inexpensively launch ads. >> our goal is to be the best minute and best dollar anyone will ever spend. we believe we compare very favorably with any other advertising medium anyone can buy. we also ruled out trp buying to enable people to measure facebook ads the same way they measure tc. we think this is important because there's a market that's very well trained in how they buy and how they measure. given our reach, but also our much better. >> sandberg didn't provide any guidance, but said they're really pleased with the strength of advertiser demand across the board, and with their focus on measuring the return on investment for advertisers. >> so sheryl sandberg says our goal is to be the best minute and best dollar anybody spends. >> it's interesting. if you hear a lot of the talk, i

think she wants to emphasize, it sounds like a google kill. like small businesses. i mean, that's the other option for that kind of a business. >> stephanie? >> i thought she sounded really confident. which is not surprising. but she's just such a steady rock at that company. and she just brings maturity to the company. i think it's like -- it's kind of refreshing. but overall -- look, the numbers are the numbers. their investments are leading to better growth. and consistent growth. and that's why people are paying up that much for this company. >> we'll see how facebook shares stream tomorrow. whole foods still down after hours. off its lows, better than 6% decline at the moment. joining us with his reaction is andrew wolf, who has a hold rating on this stock. are you disappointed in the quarter? >> yeah, they invested a lot in price.

they're investing in price and it's not moving the needle in market shares. >> so what you're saying is they're basically trying to lower prices to fight the whole paycheck image. they're losing profit margin as a result and not gaining traction in terms of sales on that front? >> that's exactly what i'm saying. to be fair to the company, it usually takes about a year for that to gain traction. during the first six months or so, you're just giving your existing customers a price break. and after word of mouth, more people start coming in the store. so it's early yet. it's about six months off before we see if it actually works. >> what would you like to see them do? what do you think they need to do as the number one priority? >> i think they've got to stick with price, because when you've got a bad image on price, you start to lose your customers. and there's more competition from other players who are throwing a slightly better price offer.

getting price right doesn't mean you have to go rock bottom. just means you have to do it artfully and find out what your customers are really sensitive to and get right on those prices. >> what about capital allocation prices? at the same time, they're sticking with the store growth expansion. the new concept and everything like that. does it make sense to do both things? >> they get the balance sheet for it. the highlight of the year. they still have up cash flow. over 1.1 billion so they can afford it. we'll see. i mean, the stock is pretty cheap. i think it has a private market value that supports them buying the stock. >> i'm sorry, you said the stock is pretty cheap at 19 cents forward estimates? those estimates are coming down. how do you justify that?

>> i think an lpo firm will pay where it's at. it's not very expensive on a historical basis. we're not recommending the stock and not saying it's a cheap stock. i'm saying private mark basis. >> an drdreandrew, thank you. we're going to dig deeper into what's behind the recent rally in bitcoin and whether market participants should be paying attention. stick around for fast money. two senators leading the charge against skyrocketing drug prices. senator claire mccaskill and senator susan collins will be joining the crew on "fast." (patrick 1) what's it like to be the boss of you?

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welcome back. qualcomm shares still lower after its earnings report. let's get more on the numbers from john ford, who just spoke to the company's ceo. >> a couple of interesting things he focused on. one is the upside in their shipments. he said it came from mid and low tier phone sales at a large customer. i asked what does it say about the broader smart phone market? he and his deputies said they're seeing strength in the mid to low tier across many customers and across all geographies. they said they still feel good

about that. they do expect that to be choppy going forward, but they do still expect those license sign-ups to come in, and as far as suspending the annual guidance, they say it's not because of the overall smart phone market. but just to bring themselves closer in line with their competitors, they are still going to give more information than their competitors typically. >> greenberg will love it. shares are still down after hours. the currency price has more than doubled in the past six months. we'll tell you what's behind the major move when we come back. awe believe active management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive.

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to help you keep costs down. like paying zero dollars for a 90-day supply of tier 1 and 2 prescription drugs with home delivery. if you're eligible for medicare, remember... the open enrollment period ends december 7th. so call unitedhealthcare now. ♪ welcome back. we've got an earnings report this time on bo jangles. how did they do? >> strong beat on the top and bottom line. 23 cents adjusted from bojangles versus the 18 cent estimate. $124 million versus the estimate of $122 million. coms up 1.4% for the quarter. also raising its 2013 earnings guidance. the stock has been hovering,

currently up half a percent afterhours. now bitcoin is on its hair. up more than 50% in the last three months. joining us with what's behind this move is brian kelly, fast money trader and of the bit-coin bing bang. you've talked about how fundamental price and demand is behind bit-coin. but what about the recent pop. >> so listen, there are things going on. it is unclear why it moved so much. and the things we do know are this. there are a lot of transactions and volume coming from china. there is potentially a company in china called china triple m which is offering high rates of return if you deposit bit-coin with them. that could contribute to it. but the price of bit-coin is a function of how many transactions that are going on. and in the last three months, you you've seen an awful lot of transactions come into bit-coin.

so any asset that is up 50% in a month or so, or more, i am always skeptical of. as big of a fan i am. but nonetheless, in the long-term, i think we're fine. >> and there might be a reason why chinese want to get their money out and bit-coin is that way and with the media attention, what happens here. >> there were rules that squeezed people into using bit-coin instead of other currencies in china. and this high return sounds like a pyramid scheme of some sort. so the big question to me and, brian, maybe you can address this, the finity supply of bit-coin has always been true. it was true when it was trading below $250 for months this year. and why do we bestow the currency status on a price changing so radically like this.

>> first of all, agreed the volatility will not make it a reserve currency with this time of volatility. as we go on and it becomes more trading and more volume and it is only $7 billion market cap at this point in time. so i consider this an emerging market currency or a frontier market currency. but again i would go back to the block chain, which is the underlying technology behind bit-coin. that is what is revolutionary about it. not necessarily a price spike in the currency. >> and block chain, to your point, there are people working on applications in the financial world that could help settle bond trades immediately instead of taking two or three days to helping you transfer your legal documents, title searches, the kinds of things we pay an exorbitant amount of money for. but why can't we take the block chain technology and see what it does and have to accept that bit-coin somehow is something we

need to all, you know, get involved with. >> well, i think, if you think of bit-coin just like the internet back in the 90s and if you could buy a piece or a piece of property on the internet, would you want to buy it in 1994 and 1995? my answer is yes. so if bit-coin is the dominant block chain in the industry, if you buy one bit-coin, you now own a piece of property on what is now the new internet. so to me that is the fundamental, that is the story behind why you want to own it. >> and we have to go. but what would you say to people looking at this current level, back near $500, what would you tell or caution them. >> i would caution them that this is a price spike that will probably correct and when it does correct, you want to buy it. but i would not be buying it tomorrow or tonight. >> brian kelly. thank you so much for joining us. he wrote the book, after all. apple cutting a deal to settle a lawsuit. we'll tell you what that is next. and home way shares are skyrocketing after being acquired by expedia for

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apple and a former supplier has been resolved. josh lipton has the details now. hi, josh. >> it was a relationship that went badly and now coming to an official end n. a filing with the bankruptcy court in new hampshire, gt advanced technologies has reached an accord with apple. under the new agreement, by november 23rd, there is an auction of the company's sapphire furnaces, located at the facility in arizona. and the company will receive 50% of net proceeds of all furnaces sold with the remaining 50% going to apple. and importantly, this agreement is also going to extinguish the $439 million claim of apple against gt. it is the latest twist in this relationship between these two companies. remember, gt was going to supply apple with sapphire screens for the iphones but then the company had to file for bankruptcy in october of last year. so what happened? well the "wall street journal" notes that the two sides blame

each other. with gt saying it couldn't make a profit and apple's dictated pricing. apple counters that despite many delays the management could not get the job done. despite all of this, apple remains committed to the state of arizona, saying it is repurposing the facility there, investing in the state and hiring workers. gt did not respond to requests for comment from cnbc. kelly, back to you. >> josh, thank you. >> guys, does this leave you thinking any differently about apple. because it was strange when it was first -- gt was this big partner and then the whole thing blew up. >> i don't know about thinking differently. it shows they are demanding. and they are not going to accept a lesser product. and they gave this company a lifeline and they basically went through all of the motions to get it back. >> and it is a nice way to end an ugly situation. it doesn't change my view of apple at all. they weren't going to get the money so they should move on. >> which they have. and we'll move on as well.

earnings this hour, qualcomm, facebook notably, now more than a billion daily active users and in the green. the only one of the four. up 2.25%. fire eye struggling and down and whole foods down 7%. we heard the analyst who said they need six months, maybe a year for the new strategy to focus on lower pricing to play out. do they have that time. >> they probably have the time but they aren't going to see sales in the meantime. and i don't know if investors will be willing to go into the stock and pay that kind of a multiple for not knowing what you're going to get at the other side. so i still think they need to hunker down and figure out what they want to be. if they want to be a niche, that is fine, but in the meantime, i think it is dead money. >> and the same questions forever qualcomm. what about facebook here. >> i want to see how it trades tomorrow after the call because the nasdaq 100 names have been on a tear, led by facebook and others and i think it is good for a rally to come to a close.

>> thanks for joining me. stephanie link and mike sant olie with me today. on "fast money," melissa lee what is on tap. >> an investigation into the drug pricing and the two senators that are leading the investigation. >> straight over to you guys. >> "fast money" starts right now. live from the nasdaq market site overlooking time square, i'm melissa lee. your panel on the board. tonight on "fast," time warner shares tanking. could it spell a tragic kingdom for disney that reports tomorrow. and janet yellen shocking the market by hinting at a december liftoff and a trade that could make you money if the fed does or doesn't move in december. and biotech stocks falling offer a formal investigation into drug pricing at four big pharmaceutical companies. the senators leading that charm, republican suzanne collins of maine and democrat claire mccaskill of missouri will join us live from capitol hill. they will tell us just how far they intend to go. but first to the biggest