other. >> one of my shark tank companies taking a segment from airbnb. if you're going to a football game on the road, want to go to notre dame or indiana web rather than try to find a spot go to rent like a champion. >> a good idea for shark tank or power pitch is "power lunch" designed full body sweats. >> thanks for watching, everybody. "closing bell" starts right now. hi, and welcome to the "closing bell," everybody, i'm kelly evans down here at the new york stock exchange. >> and i'm bill griffeth here at cnbc headquarters today where i will be doing nightly business report on pbs tonight with sharon epperson. looking forward to that very much. hope you can join us later this evening. stocks modestly lower right now after that blow out october jobs report this morning increased the odds of a fed rate hike.

steve liesman will wrap up that report and tell us what chicago fed president and noted dove charlie evans had to say about the possibility of a december rate hike. >> commodities are getting crushed as part of the potential fed fallout and that dollar whipping, gold dropping falling 5% on the week, oil below $45 a barrel to settle near the lowest level in more than a week. >> valeant shares staging a bit of a come back even though shares are down 60% over the past two months and despite all the negative headlines we found a bull on this stock. she put out a buy earlier on and she's hanging in there with that buy rating. we will talk to her and a bear on valeant coming up in a little bit here. >> the battle for bonds is heating up, not the bond markets, talking james bond, the latest film in the multi-billion dollar franchise is released, studios are getting ready for a bidding frenzy to distribute the

next batch of films although surprisingly the series hasn't been that profitable for sony. >> everybody is excited about the "star wars" movie, i cannot wait for the james bond movie. already have my tickets for tomorrow night. it's assigned seating in i max theater. >> i got burned on the marshall not long ago. >> i'm there. can't wait to see inspector tomorrow night. let's start with the jobs report and whether it accelerates the fed's timetable on an interest rate increase. steve liesman stepping in. what do you think? >> this strong job report pretty much locked in that december rate hike. it would take a really weak november report to derail a december hike at this point but now the debate really begins which is how soon a second hike comes and for some like charlie evans, he would link it very much to performance on inflation. >> my continued preference for more delay or a shallower path

continues to be my uncertainty over the flat that inflation will get up to 2% objective within within a reasonable period of time. >> there are some like jpmorgan who write it is much too soon to say the fed is behind the curve but a few more reports like the one we've seen today would raise doubts about the forecast of a gradual pace of tightening. the unemployment rate will likely continue declining at a pace that will test the committee's patience. steven stanley had a similar take over at a.m. heart. he said i continued to believe that the it will be less gradual and the peak rate in the coming cycle will be considerably higher than what is currently priced in. those were a couple more on the hawkish side. we're probably going to get a rate hike in december and the new battle ground will be the one after that and the one after that. that is the path of rate hikes that many doves on the committee want to be shallow and gradual.

>> and that goes to the heart of the discussion we were having yesterday with gary cohn at goldman sachs as well. he thinks lower will be part of the fed's verbiage going forward. they will leave open the possibility after moving rates up they go back down again. i wonder how much this number in today's job report changes that and everybody's stance from being cautious to wondering how quickly and how steep might the fed move next year. >> i think you have to watch the data, kelly and i think the key is going to be if we start getting reports like these 250, 270, a lot of people said today was a snap back from two weak months the more likely trend is in that 180 to 190 range. that should bring down the unemployment rate but at some point the fed is going to get cold feet if it sees the unemployment rate go down to 4, 4.5%. >> one last thing. the first thing i thought this morning is what if we get a revision lower on this number

like we did for august after that bad september number. i mean, we still do have one more unemployment report to go before they meet in december. >> we do, but, bill, this was a pretty solid report throughout. when you have different sides, the u 6 came down, some of the hours worked measures were up, wages were up, pretty good diffusion when it came to job growth, that is across different industries, mining and manufacturing were two of the stand outs in terms of not gaining jobs, other places like retail 44,000, healthcare up big, even if it is revised a bit lower it's hard to imagine this being ever seen as a weak report, bill. >> that's for sure. >> and we will have more on this in just a moment. steve, thank you. our steve liesman. >> those jobs numbers are rimg through currency and commodity markets at the same time news that the keystone pipeline will not go forward. let's get to jackie deangelis wrapping up all the action for us today. >> to add to what steve said commodities participants telling

me if the fed was data dependent it now has the data that it needs for that december rate hike and that is why the dollar spiked. the dollar index over 99 today of course that was bearish for commodities pretty much across the board and that is why we saw oil prices dropping 2% on the day. wti finishing the session at $44.29. it was a near 5% drop on the week, but holding just under that $45 mark not really budging out of this range of the low 40s all the way up to 50 where we saw it you could see more volatility to come within that range because it's a pretty wide band. having said that gold prices take a hit today, about 15 bucks to the down side taking up under that critical 1100 level. traders are saying if this market momentum continues it was a dovish fed propping up the gold trade gold prices could go lower as well. there is this notion of buy the rumor and sell the fact. buying the dollar index and then selling it when it actually happened. that's something to think about as well. with respect to the rejection of the keystone pipeline trans

canada has issued a statement saying that it is committed to the project, it will evaluate its options and potentially reapply. so that's something to think about, about how long this process could continue to go on. if we may see a change or reversal of that rejection if we see a change in the white house come 2016. back to you. >> all right, jackie, thanks very much. let's get to our "closing bell" exchange on what has been actually a newsy day. peter costa who doesn't look a day over 58 even though that's precisely what is, kenny poll carry and we have rick santelli checking in from chicago. rick, as the yields continue to move higher i guess everybody is starting to price in that rate increase in december now, aren't they? >> absolutely. you know, jim bianco my buddy the great letter writer and of course economist if he is correct the markets underpin things in terms of what's built in is very important to the fed, it's all about the market and

now we're well into a percentage well over 50 that is going to potentially give us the best clue. you know, listening to all the talk i have a heard, especially steve and mr. evans, maybe mr. evans ought to get a transcript of the president's speech today the way he laid out the economy it just seems to me that raising rates isn't something where the stars were aligned now, they were aligned last year, the year before that and i continue to say, yes, it was a good jobs report, especially average hourly earnings, 2.5% year over year, but two problematic months gave rise to a surprise month. i didn't call t i was $100,000 off which brings the three month moving average to 187,000, year to date 206,000. still not nearly as powerful as last year's 260,000 and this was the highest number of nonfarm payrolls of the year. we had four months last year that were higher and one of the months was over 400.

>> yeah. >> yes, the market is prepared and i think that actually might be the linchpin in terms of what we need to see. now, one final point, u 6 has gone from 17.1 in 2009 to finally under 10% at 9.8 today and i will tell you what, if everybody shoots straight here that's probably the most accurate read on real unemployment in the united states. >> sure. that said, though, kenny polcari you're saying curb your enthusiasm. >> i think she needed this number for sure in order to give her an out in december because there is this whole credibility issue building, but i think that the number is so far out of line, it was so far off the radar. you look at how many of those jobs are temporary, 40 or 41,000 jobs were temporary nature. in january or early february those jobs are going to get wiped out. all those people will be once again off the payroll. it's a good number, it's solid, i get it but i don't think this one number in light of everything else that all the other macro data that we can all of a sudden put our hopes in

this one number and say this one number says it all. she needed this number in order to help her out in december there's no doubt about it. >> peter, threat me bring in dennis guard man who is joining us now as we hoped he would out of virginia there. and the impact of this morning's report and also the killing of the pipeline by the president today, the dollar is stronger, oil lower, all the commodities going lower here. what do you think happens from here? does this particular rally continue as we anticipate a rate hike next month? >> absolutely. no question. the dollar is going to continue to move a great good thiel higher. we're only in about the fourth or fifth inning of a nine inning baseball game as far as the dollar's strength is concerned. one thing about the employment numbers, people need to take a look at what the employment number that came out of canada today, the canadian is equivalent to nonforeign payrolls

is 9.5 times that of canada that's the rough equivalent of nonfarm payrolls being over 450,000, this is not a circumstance peculiar or particular to the united states, the economy is getting dramatically stronger. >> peter, why isn't the market if we have therefore priced in this move in december and it is predicated on the stronger economy why isn't the market rallying more behind this? >> what ends up happening is good news is bad news. i still think that the market, you know, looking at it right now we're not doing anything but i do think that we need to see another month of stronger numbers. i think the -- it's not so much the job growth it's got to be wage growth because job growth can go on forever. if the wage growth doesn't start following it and increasing inflation will never really be an issue. the fed already has their mandate for unemployment, they have it where they want it

pretty much and they have to get it to the point where inflation is -- starts to increase a little bit without the wage inflation you are never going to see that full normal inflation. i do have kwun point, though. i'd like rick santelli to explain this to me. how does something that we've been involved in where the rates have been basically flat to zero for the last ten years, how is that not normalization? that is normal. when we were speaking about it, talking about normalizing rates, the rates have been the same for the last ten years. why isn't that normal? >> rick? >> well, i think that normalization to me means the market deciding what's normal. my problem is, kenny, i'm not arguing with you, and i don't think we are going to see the kind of rates that used to exist when you and i first started trading are going to be coming back for a long time. but my lack of confidence in looking at boards and believing that cost the money which is decided by basically a little over a dozen people, that's the part i have an issue with. free market process put rates

exactly where they are, at least we'd know, but we don't know so that's the part that's missing and it's that confidence i think that the market needs and no fed policy is going to make regulation improve. to me what's keeping the animal spirits is regulation and how current fed policy changes dodd-frank is beyond me. >> we've got to go, guys, dennis, you made the effort so let me give you one last question here. does the death of the keystone pipeline put a floor under oil prices to some degree? >> i think it does. i think it was a bad decision on the president's part but he had to bow to the radical left. he made that decision but i do think it tends to put a bid under crude oil. >> are we near the lows here, though? i mean, we've been stuck in this range between 45 and 50 for a while here. >> i think the lows were made eight weeks ago when we traded down to 37. i don't think we're going to take those out. quite honestly this is the first time in a while i have been

modestly bullish of crude oil. i think the lows have been seen, the lows have held and we're starting to see some changes in the term structure that have me interested. i think the worst has been seen in the crude oil market, absolutely. >> i agree. >> everybody, thank you for making the effort this afternoon. dennis, rick, kenny and peter. 45 minutes to go in the session here, the dow holding on to a 7 point gain but the s&p negative by 5 points, better than a quarter of a percent significantly -- or the s&p i said, the nasdaq is up by 8. i'm sorry. >> we don't want to confuse the people on satellite a radio. shares of valeant partial constitute cal sitting at all time highs three months ago, now they are trying for recover from a two and a half year low. we debate the future of this stock coming up. lls coming up diana olick has a special report on how quickly mortgage rates could rise once the fed turns on the interest rate switch. stay with us.

excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need,

to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most.

shares of valeant hit a two and a half year low yesterday after activist investor bill ike man ex dressed doubts with ceo michael pearson in an article

but later in the day he expressed support of him. >> the stock rebounding slightly today. is this a good time to buy? let's burn in irena and peter. good to have you both with us. irena let's talk about why you think valeant is an attractive investment here. >> first of all, the stock is trading at a five times 2016 pe relative to its trade at 11 times, it's business is fundamentally strong, they have great assets that they acquired from salex and baush and home which are all, you know, acquisition hot targets in their hay day. so the second reason that we really like this stock is we already took down our numbers after the philidor blow up. we are at 6.8 billion in ebitda for next year relative to guidance of 7.5 billion, we have already done a catastrophic analysis which suggests that the stock should trade at $100 per

share under a worst-case scenario and finally we think this company has lots of optionality. they have a grade emerging markets business valued at $2 billion that they could seld off under, you know, a distress and they could use that to pay down their leverage, get to three and a half times leverage and then they can go from there. we think it's a strong business. >> peter, you know, her premise is that even in the worst case scene rethere's still value to be found here maybe in the drug pipeline or something but you still think this stock is radioactive and wouldn't touch it. why? >> this is coming from a lover, a former lover of valeant. i've been a holder for about two and a half years and i sold it last week immediately after the conference call just to give you some context. while the analysis is great and, you know, we've done that ourselves, i think we just need to wait a little bit more to get through all this what i would call rolling disclosure. you know, the company just

continues to leak bad news and until that gets to the bottom i think it's very difficult to put a value on the segments of the business. at this point it's almost like pitching a tent in the windstorm. it's just so difficult to get a sense of equilibrium. where is the ad hoc committee from the board of directors? if you remember on the conference call they said that they were forming a special committee to take care of a number of matters and so farther far more silent than their critics. >> on that note let's talk about management for a moment. the director that peter is asking about and mike pearson himself who bill ackman said in the "wall street journal" he said i don't know if this is the guy to testify before congress to come out with a strong defense, public defense of this company. would a management change in either of those positions benefit this company from here? >> we know investors really like pearson and he has the

confidence of the analyst community as well. is he warm and cuddly socially responsible person? he's more of a pure plate capitalist figure, if you will, but that said we think he's very credible, we think he could stand up to, you know, a discussion with congress, but it wouldn't be a disaster for the company if they put someone else from management on the board, for example, arie cowan and put pearson on the board instead. they've seen that at a lot of other pharma companies. >> truth. peter, last word. >> is there a price you would get in, peter? >> not yet, bill. let me just say one more thing. the sum of the parts analysis is quite popular now breaking up the company. that's a great way to approach it, however, have we thought about the strong that is alleged. if you buy one of those units that will travel with you. so i think it's quite toxic now.

i don't think anybody would be looking at the company to buy some of its divisions. maybe in the future if it's all vetted out. right now i think it's very difficult to find a buyer for any of the operations. >> all right. good arguments on both sides. thank you both for joining us today on a controversial valeant. all right. heading to the close about 40 minutes left in the trading session with the dow just up 7 points. i think we're finishing out a positive week. the s&p is down 5, nasdaq up 7. >> coming up, help wanted, our mary thompson is in a lockheed martin facility in colorado where they are looking to hire. >> up next now russia joins the list of countries suspending flights in and out of egypt. we will have the latest from cairo as the specter of terrorism looms over the sinai plane crash. we will speak to an airport security expert about what it means for u.s. carriers as well. stay tuned.

at ally bank no branches equals great rates. it's a fact. kind of like ordering wine equals pretending to know wine. pinot noir, which means peanut of the night.

nobody's hurt, but there will you totalstill be pain.new car. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. learn more by calling switch to liberty mutual and you can save up to $509. call for a free quote today. see car insurance in a whole new light. liberty mutual insurance.

as we said russia now joins the list of countries suspending all flights in and out of egypt on indications that the crash near sharm el sheikh was caused by a bomb. >> let's get to the latest developments from cairo. >> the russian government was among the latest to suspend flights. russia has taken it one step forward, suspending flights to the entire country, this as there are now new developments in that investigation.

egyptian civil aviation sources tell abc news that they are now able to analyze the flight voice recorder. that's an important development because at the beginning of this investigation they were able to retrieve both the cockpit voice recorder as well as the flight data recorder. the flight data recorder was fine, they were able to ak tract data from it and analyze it. there were some reports that the actual cockpit voice recorder was so severely damaged that it may have been unusable and was going to require the actual cockpit voice recorder to be transported out of the country for further analysis. it seems now they have been able to analyze and extract data from it. we are expecting the civil aviation authorities to present what they found from it at some point, though there are rumors that the press conference schedule for tomorrow may be actually delayed. meanwhile egyptian authorities in sharm el sheikh condition to try to get some of those parts stranded in sharm el sheikh out of the country. we know easy jet have been sending flights to egypt but we

understand there have been some logistical considerations that are impeding that operation as of now. we also know that anyone who is flying out on some of these carriers will be allowed only to carry hand luggage, they will not be allowed to check in bag annual and that has created more logistical challenges for the airport authorities on the ground in sharm el sheikh. >> the department of homeland security saying it's going to implement extra security measures including additional screening for items placed on planes for u.s. bound flights from service born airports. >> for what this means for us and for u.s. air travel we're joined by former new york state director of homeland security and founder of red line strategies michael balboni. welcome. >> thank you. >> just big picture what do you make of this -- i mean, there are so many elaborate theories already even before they finished the analysis of the data. what do you think is going on right now?

>> a series of pieces of information that i'm can a out about this, whether it was the prime minister of britain saying, yes, it's a device, obviously the president mentioning it could possibly be a device, the satellite imagery reports that we have but also things on the ground, for example, the manager of sharm el sheikh, the airport manager is no longer there, they've moved that out and the fact as your reporter told us they are only allowing hand-held luggage to come on the plane, obviously pointing to the problem in the cargo hold. what my sources are telling me now is that folks are looking at the personnel at the airport. why? because it's -- on the sinai peninsula, this is where al qaeda, the arabian peninsula have operated. they have a history of making bombs that can attack aviation targets. could they have gotten somebody to put something on the plane. >> the security measures might have been too laxed but is that going to get to the heart of

this issue? as the "wall street journal" and others have said effectively what's happening is the crowd sourcing of these attacks. you activate certain cells within parts of the world that are vulnerable. are we going to be able to target and tamp down security at every possible airport where something like this could happen? >> great question. the answer is obviously you can't so what you have to do is you have to prioritize and it's -- it's a design based threat. what is the threat against a particular airport if it's in a particular country. obviously here you had russia beginning the military campaign against isis, the sinai peninsula has a history of radicalism. there's an indication. what does it mean for u.s. airports? it means what i believe is long overdue is a refresh of our aviation security and that's particularly following the tsa testimony last week in congress that said they had another red teaming and got stuff through. >> but yet we keep being told that we have the most stringent

security in the world here in the united states compared to others. do we? >> well, we do from a lot of perspectives, in other words, first it's a compare and contrast. there's some countries that don't have anywhere near the background checks, don't have the multiple layers, remember, it's always defense in-depth, you try to avoid single points of failure. so it's not just the screening check points that we have at the airport, there's a lot of other things. having said that, are there gaps? can things happen? yes. and security is never a destination. it's a journey. it's an evolution. you have to change it up to get the bad guys, particularly al qaeda in the arabian peninsula has always been looking for ways to circumvent it. >> finally what is this going to mean for carriers as they consider what rounds they're going to carry around the world and what does it mean for the u.s. diplomats who will have to partner with people on the ground who may or may not always be friendly towards allowing them to do the security and

analysis necessary to make sure those airports are secure. >> following 9/11 and the creation of tsa then secretary of homeland security michael children nof had a huge mission of going across the world basically to try to get allies and other countries to adopt some of the similar security postures that we had in the united states. a lot of that effort did not -- was not successful. this is going to be now another attempt to try to have at least a baseline for security across the globe. >> michael, thank you for joining us. >> thank you, michael. >> former director of homeland security for the state of new york. time for a cnbc news update. let's get over to sharon epperson. >> here is what's happening at this hour. president obama rejecting the keystone crude oil pipeline citing the climate change risk. later the exhaust said building the pipeline from canada would have incurred so-called dirty oil with harmful environmental impacts. canadian prime minister justin trudeau voiced disappointment in the decision. negotiators for ford and the

united auto workers union reaching a two year deal. it is likely to be approved on monday and then proceed to a ratification vote by ford's uaw members. >> new jersey governor chris christie the latest republican to file for his candidacy in new hampshire's primary. in a lighter hearted moment he checked with his wife path before signing the necessary documents. and diet could be a contributing factor when it comes to acne. scientists at baylor university say goods high on the glie seem mic index could cause acne flare-ups. that's cnbc's news update at this hour. back to you, kelly. >> thank you, sharon. i feel like i'm in the middle of you two at this point. got to carry on with nightly business report tonight. 30 minutes to go and the dow is up 26 points, clear leaders are jpmorgan and goldman in that index, up better than 3% on hopes for the steeper yield curve, the insurers are having quite a session.

the s&p down 2 points. >> financials and energy are leading the way to the upside, utilities are in the red today. up next, a leading trader will tell us what he's watching in this final half hour as we close out this day and this week. and we will speak with a ceo of a growing business who has been on a hiring campaign for his take on today's employment report and what conditions are really like. for family. but it's hard to build a future if you can't see past today. that's why walmart is investing in the most important part of our company - our people. because a raise in pay, raises us all. ♪

welcome back less than half an hour to go in the trading session. joining me is gordon charlup. we're picking up a little steam here. what's happening? >> i'm glad you are here. sometimes jerry doesn't catch on to what i'm trying to say. >> he can still hear you. >> this has been an interesting market. obviously early in the day when the unemployment numbers the market reeked the way it did. what i'm seeing now is you start to look at a given year and you start to say what is this year and what can we expect the last two months as we close out the year. it really looks to me that, loo k, we had the august 24th breakdown, that was the correction, chart is telling us that we're picking up steam, we recovered everything and it looks like we're going to carry through thee and i think we are

going to see gains going to the end of the year. >> you think the fed raises rates and will continue to do so perhaps and the stock market will move up and the economy will be fine. >> that's the way it's shaping up. you don't fight the tape. this is the way it looks to me. it looks like they have interest -- when we look at our institutional and we are trying the flow on the floor and we look eastern at the end of the day, the way the indications are leaning, we're seeing the strength in the market and, you know, okay, maybe they are taking out some of the sectors that will be affected by a fed rate hike and putting them into the other ones, financials, et cetera, but it's not as if it's a blood bath on one side and loving them on this side. so it seems like we have to move to the upside. >> all right. stated for the record and we will let bill take a pot shot back at you when he returns. >> you don't have to wait just let gordon know that i used to have a tie just like that and then i got a job.

tell him to have a good weekend for me. >> i don't think he's got an ifb. >> i will relay that, he loves your tie, gordon. >> good-bye, gordon. >> on this jobs friday we look at jobs being added in manufacturing, better known as 3-d printing, that's the fast growing segment of manufacturing that needs workers with a different vision of what manufacturing can be. mary thompson joins us now from lockheed martin space systems in little ton, colorado for the latest installment of our series where the jobs are. mary. >> bill, thanks so much. 3-d printing has been around for decades but more manufacturers like lockheed martin are using it because it allows to save them time and money. they need nor workers. here is dennis little vice president of production for lockheed martin space systems. >> injecting about 120

production professionals needed here to fill our demand. >> 3-d printed parts like these tanks lockheed is testing can be made in half the time at half the cost, they also tend to be smaller and lighter allowing for bigger pay loads on lockheed's satellites. understanding how to work in 3-d requires a different way of thinking, one not centered on straight lines and right angles but more in line in how nature might create something. while lockheed is training workers in-house in how to work with 3-d it has partnered with a local college which is launching a four-year program this fall that's focused on advanced manufacturing with an additional focus on added manufacturing the 3-d printing. the pay off from the people who graduate from that program expected to be starting salaries of $60,000 a year. for more on that go to cnbc.com and read my story. >> mary thanks. joining us right now jeffrey

cleveland, chief economist at payton and tryingel and ceo who is on the front lines of hiring tony lamb of kona ice. you have been on a hiring jag lately, haven't you? tell us about that. >> our company is just growing by leaps and bounds, we've added 110 franchises this year, obviously which has probably a net employment of over 200 people throughout the country. we're very excited about, even at corporate offices here in northern kentucky we are -- we've added a couple of executives, several administrators this year, have a great paid internship program that we're running in our creative department. it's exciting out there. >> tony, how are those wages? we're adding jobs, we get that, but tell us about wage pressures. what are you seeing on that front? >> well, you know, i think it's an interesting question. here is what happened. when i started in 2008 from a dead stop of course perfect time to start a company in 2008 but we just did see a lot of people coming buying franchises that

were unemployed, displaced executives, displaced blue collar. what i've seen in the last year you see a lot of people coming to buy franchises that are looking for additional income. they have a job but not happy with the job that they have or they need more income. i think it's -- you know, reading mr. cleveland's reports i do think there's some wage stagnation out there, some desire for people to make more money and we are a beautiful option for that. low cost franchise that people can get involved in. >> okay. >> and create this income stream for themselves. >> jeff, i saw you nodding your head when kelly was asking the wage question. that has been a wage growth issue has been a fly in the pointment not only for many economists but for the fed themselves, even charlie evans alluded to it this morning during his interview on cnbc. >> that's right, bill. it's been the missing piece of the narrative, some people say, yeah, the unemployment rate is up 5%, still no wage growth. that's changing, we think. you see it in today's jobs

report, wages up 2.5% versus a year ago, we're seeing it in other indicators of wage activity like the atlanta fed's wage tracker which is up 3%. i think the old narrative was the point towards anemic wages and that's sort of out of touch with what's really happening in the labor market. >> how are you so sure? >> well, kelly, you can never be sure, you're absolutely right, but when you look at the unemployment rate and see it at 5%, see the longer term unemployed people coming down, see the broader -- the real -- some people call it the real unemployment rate now below 10%, kelly, there's fewer workers out there looking for jobs, i think employers are going to have to pay more to keep the labor on board and that will naturally push wages up. so i think we're there after many years of not seeing it it's about to turn. you see it in the data today. >> tony, there are some companies in your category that have been raising their wages for various wages.

if you could attract higher quality worker would you raise your wage at the same time? >> well, absolutely. we start at a higher wage to begin with, we have a very autonomous business model. when we put an employee involved in one of our units we need a higher skills than just the minimum wage person. so we start off a lot higher than minimum wage and we have seen great results because of that. >> all right. good enough. tony lamb ceo of kona ice we wish you well with that especially in the winters. >> thanks, bill. >> 15 minutes to go. people drink iced coffee all winter, bill. >> so i hear. i'm not one of them. >> dow up 23 points, again led by financials even within the insurance space property and casualty today but everybody excited about what they see as a steeper yield curve. the s&p down about 3 points, the nasdaq up 13. up next what today's positive jobs report could mean for mortgage rates.

>> nearly $10,000 that's what we are closing in on believe it or not on the charity bid to have drinks with kelly and me and come watch us anchor "closing bell" here at the new york stock exchange. let me just say thank you so much for those generous offers to this point. we are truly humbled by that. >> here, here. >> we know we can do better. this is not about kelly and me, this is about a very, have he worthy cause that's near and dear to our heart, right? >> get right over to that websi website, charitybuzz.com. we are back right after this. to our broker. ou how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab.

clearly today's jobs report has increased the bets that the fed will raise interest rates as early as next month. >> the rates are already moving on that. diana olick joins us with a look at how long it will take to filter through to mortgage rates. >> it's already filtering through and has been for the past week. the average rate on the popular 30-year fixed mortgage was at 3.83% on october 27th, just before the last fed meeting when the word from that meeting was that december could be back on the table for a rate hike. mortgage rates edged up slightly then took a bigger move when janet yellen told lawmakers on the hill that december was a

live possibility and now the employment report today pushed the odds considerably higher, mortgage rates are dictated by ponds that generally tack the yield on the ten year treasury, it's not exact but when the fed races rates the cost for banks goes up and they recoup that higher cost to borrowers in the form of higher rate. it's not that the 30 year fix automatically goes up a quarter point, there are other factors in play, movements in foreign economies and how the fed rate impacts the u.s. economy. the better news for housing is that despite rising rates we have more jobs and people who have jobs those are generally the ones who buy houses. kelly. >> diana, thank you so much. art cashin here. bill, indicating there's $200 million to buy on the close. thank you, sir. >> they have essentially been nonevents the last few days. we have 12 minutes left in the trading session with the dow up 27 points right now. >> and the world of stack and

balance. david darst is here and will be joined by larry mcdonald to talk about that dollar move today. we will get their take on the jobs report and a lot else after this. 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. ♪ ♪ (under loud music) this is the place. ♪ ♪ sustainable tea tree eir boil and kale...ade from you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing, you see what's coming next. you see opportunity. that's what a type e* does. and so it begins.

with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.

one of the clear winners this past week as a result of all that's gone on with monetary policy has been the dollar index, up 1.25%, today up 2.3% for the week. it takes us back to a high we last saw in august. joining us to talk about that among other things we have independent investment consultant david darst, happy friday. and larry mcdonald, cnbc contributor from sock jen. larry, there are those who feel that we are in for a longer finally prolonged gain for the dollar. they were talking about earlier this year then it stalled out. do you think we are going to resume this now? >> well, sara eisen just tweeted we have 11 currencies around the world, 11 of them, that have fallen more than 1% today. >> our currenty mavens, sara eisen, she knows. >> how many times does lucy have to pull the football away from charlie brown. >> you're saying the strong dollar will make the fed have to punt on raising rates.

>> it's what's happened the last four quarters. you get a strong dollar that leads to emerging market weakness that leads to commodity prices in decline and each time, remember, since lehman around the world $7 trillion of new debt, $7 trillion of new debt that's tied to commodities and to emerging markets one way or another and each time the markets starts to cringe if that dollar gets above 98. >> david, now the dollar is almost at -- it's over 99, it's ieng 100 how does that concern you? >> i think against the dollar index, telly, the sweed dish, the swiss frank, yen, euro, pound and canadian dollar. the dollar is up 30, 40% against many emerging market current currencies, you're talking and it's up 11, 12, 14% against the commodity producing countries, i'm talking canada, i'm talking

mexico, i'm talking -- i'm talking -- >> 30 basis point hit to its ebitda on the rest of the world assets because of the dollar. so is this something that is going to cause a dee cloo inn in financial markets toward our companies and ultimately keep the fed on hold. >> i think it's going to be hard for profits. one of the things that caused the market to stall out early this year was the oil being down and the dollar being up. so you want to watch oil, is oil going to come under pressure with the dollar strong which often happens. if it does not happen that's a good thing. to me the biggest levin is the way the market held in and stayed flat today basically, it didn't really sell off and it didn't take off. that having been said the bodyguards of the market remain the banks and the banks are doing well, that's nice, the bodyguards can ride around in their limo seen with the windows down, they don't have to have protection. >> goldman up nearly 4% today,

jpmorgan following suit. we will leave it right there, thanks. >> bye europe, bye japan. >> >> we are coming back with the closer count down in just a moment. bob and i will look at a few charts from this week. >> after the bell the keystone pipeline decision and investigation into exxon mobil has government, investors, the oil industry and environmentalists all pointing figures. we will get into all of these stories just ahead, you're watching cocaine, first in business worldwide. , first in b worldwide. n, first in business worldwide. b, first in business worldwide. c, first in business worldwide.

when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most.

welcome back. coming up on the two minute mark heading to the close. time for the countdown, bob pisani is joining me right now. when we look at the chart of the dow for the week the lion's share of the gains came early in the week, we had those two powerful rallies on monday and tuesday to kick off the first week of november and then we remand erred the rest of the week. the gains at the end of the week came in other asset classes after it became a little clearer that the economy was picking up pace and maybe the fed would start to have to race rates. the two year note hit a five year high up to .9% it's just off that right now and the dollar index continued its rally as we talked about hitting a high going back to august, bob pisani. one more, price of oil then continues lower. you might have imagined that the price of oil would have gone higher after the president canceled the keystone pipeline but, hey, bob, we have enough

oil in this country right now, oil production has changed a lot since they first started talking about keystone back in 2008. >> oil is moving on the dollar, dollar index highest level since going back to april, we saw copper down, copper is at the lowest level since 2009 and oil moved down in response to the strong dollar. i think what happened today, given the titanic jobs number the street was prepared for everything at the open except for what actually happened which was not an awful lot. we did see some volatility around the edges, utilities were quite who will tile today, banks were volatile in the other direction and the interest rate move in general was a lit volatile. i'm looking at volume, we will do about 4 billion shares at the nyse that's the total volume, good day we will do 3 1/2 to 4 so it's marginally heavy but not titan nickly heavy and the vix dropped today. traders were thinking we're

going to have a great day, i think a lot of people were assuming at this point that a lot of the bets were slowly made in the last -- the fed would be raising. >> thanks, bob. have a good weekend. ringing the bell at the big board the folks from air products and at the nasdaq today it's the folks from allegiance bank shares. that's the first hour of the "closing bell." here is number two now with kelly evans and company. kelly. thank you, bill. welcome to the "closing bell," everybody, i'm kelly evans. these indexes what a week they have had a lot to digest and that jobs report this morning surprised strongly to the upside and actually the dow going out on the close here managed to add 50 points when earlier it was roughly that the. that's what the closing up 17900 and gaining a quarter of a percent on the session today. the s&p largely unchanged, it is the weakest of the major three. almost got into the green closing just shy of 2100 a level

as mike santoli has been pointing out we've crossed above and below more than 50 times this year now, the nasdaq adding 19 points for its part. we will talk about the bank stocks, some other big movers on the back of this jobs report. let's get to the floor of the new york stock exchange with our bob pisani to wrap up this week. >> i think the fireworks came at the end of the week, we were fractionally in the up side going toward the end of the week. i think a lot of people were craving more in the way of fireworks. just to show you the major indices and what happened here, again, much of this seemed to happen right today, us russell 2000 up 3%, nasdaq another good week up 2.7%, the s&p 500 with a fractional gain and today didn't really contribute much, that was pretty much what we were going into it today, the transports up 1.3% and the dow industrials also with the same move. we did see a little bit of a volatility around some of the specific sectors, specifically the banks and the utilities,

there's three movers today, financials, particularly the regional banks on the up side, most of them up 3 to 4% today, utilities had quite a lot of volatility, some of them hitting 52-week lows, duke energy had a 52-week low, for example. energy overall on the week was on the upside, most of the energy names were a little bit on the down side today as oil was down, copper was down, the lowest level since 2009 in response to the dollar, the dollar index the highest levels since april. what we did not get today and there's your dollar index moving up here, that's the highest since april. what we did not get is volatility. we put up the vix you can see the volatility index, it actually lost it in the middle of the day to 14 and change, that's the lowest level in a while, essentially it levels back into the early summer. traders were expecting a lot of volatility and a lot of volume today given that titanic jobs number, it didn't happen and i think part of the issue here is a lot of the investment committees don't meet regularly, don't meet every morning, not

hedge fund traders, they will decide whether some change is warranted but in addition to that i think the key point is a lot of the street is already gradually positioned itself for the idea that the fed might be moving in december. kelly, have a good weekend. >> same to you. our bob pisani. joining today's panel we have cnbc contributor evan newmark along with kate kelly and "fast money" trader david sea brooke joins us as well. the markets are discounting mechanism no longer about whether they raise in december it's how much will they raise after that. how steep or gradual the pace will be. >> nobody knows. i think they will go in december, i think today's jobs number to paraphrase the late but great lou reed it's such a perfect day, you know, drink sangria in the park. the numbers were good, wage growth was good, the bonds did what they're supposed to do, the

30 year is now somewhere -- what did i right down, 309, the ten year is at 233, 232. it's good. it shows the committee is moving in the right direction. that's all good. >> janet yellen said a december hike was a live possibility and despite what's happening with the dove's number we are still well beneath the inflation target. is it a given? i know the market expects a race hike but is it a given? >> this is a great central question. we heard from fed president charlie evans earlier and he said the reason why he still remains cautious when it comes to the pace of fed hikes that is that he looks at the inflation rate. says show me we will get to 2%. he said i'm fine with 2.25, 2.50, we can overshoot a little on that. >> it makes me wonder how much more are they willing to allow the labor market to tighten in order for inflation to get back to where -- >> i think we talked about this before. it's not -- i know everyone

wants to say it's data dependent. it's not. what it really is psychology dependent and janet yellen -- >> you have to have the data in the baseline. >> at the end of the day you are never going to have one month of data that gives you everything you're looking for. it just doesn't work that way, it's going to be a matter of psychology and handling psychology at the fed. >> david, in a way this bales the fed out of the corner, everybody was saying as recently as yesterday they were painted into, you only have one meeting left for them to stick by their pledge of raising rates this year. now they have a lot more credibility in doing so don't they? >> i think they lost a lot of credibility by not doing so last time quite frankly. i was hoping they would do it, get it out of the way and move on. we're talking about a evening intoless amount, 25 basis point move. it isn't going to have the impact i think people believe it may have it's more psychological

than reality. >> tell that to the bank stocks today. >> i mean, think about it, they moved -- a lot of them with the market as well -- bank of america is a name when it got down to 15.5 the fed didn't make a move on rates we said buy that stock aggressively. we took a lot of heat for it but the reality was it wasn't a rate move it was the fundamentals of the company are steadily improving. when you combine that with the fact that there could be a little bit of a confidence booster from the standpoint of rates go higher people jump aboard that train. that could last a little while. >> that's a good point. there's two issues quickly that will also hang on this fed move and that's one is the rapid -- this huge pace of deal making this year the other is a lot of these companies that we know have huge private valuation potentially going public. is there a reason why the fed rate hike would slam the window shut on either one of those?

>> i don't think so. i don't think the fed rate which is 25 basis points, i don't think it's going to either open any doors or slam anything shut. i think, you know, the ipo market it's really -- that's really about valuation, you know, the square ipo which i think we will be talking about. >> in just a moment. >> that's about valuation. >> on a very generic basis i think if you start to see the steam come out of the equity markets and less enthusiasm for ipos a lot of people think we're getting to the tail end of the ipo cycle where we're seeing lower quality names. maybe it's the case underwriters are starting to become more selective about what they will take on the road. we've seen some pairing back or withdrawals, for example, i understand albertsons has gone pencils down even though i believe they're still technically filed, square moving money, it's an exciting story. >> on that note let's bring seema mody in for a look. as to what's happening with the ipo, the price range not helping

to to alleviate concerns about the ipo market. >> square pricing its ipo much lower than expected between 11 and $13. that gives it a valuation of $4.2 billion. a discount of 6 billion signed it was valued at in the private market. this comes after several newly listed companies had dipped below their offer price, a number of firms had scrapped their ipo plans all together some citing market volatility. the company is set to go public before thanksgiving at the new york stock exchange under the ticker symbol sq. china set to open its ipo market after regulators suspended chinese companies from going public a couple months back due to stock market turbulence a move that was criticized by many and seen as a desperate attempt by the government to protect companies from the ongoing volatility. now, today's announcement comes as the chinese stock market rebounds from the august lows, shanghai comp sieve officially in bull market territory. just in week the market gaining

about 6% potential sign that investor confidence is slowly coming back. the china security regulatory commission today approving 28 companies to go public, ten of those to launch after november 20th. kelly. >> so there's more competition for funds. thank you. what were you going to say, david? >> the square ipo i think it's an interesting scenario because, again, the valuation is coming down below the last money raise and i think what's really important here, this is a very public, very well known deal that's coming to the public. the private equity community, the bid out spread between private equity it's been a really widespread for quite some time, over the past year. i look at it and say people are really talking about it now, it's absolutely going to take the wind out of there and i think these guys -- >> so you think it's more -- let me paraphrase. it's more what's happening with square than with the fed necessarily that's the risk here for all the companies that still want and need to go public. >> right. i think the fed move and ipos i

generally agree with evan, they are sort of apples and oranges even though the fed creates an important economic backdrop and has an impact on stock market psychology but the square pricing, the modesty of it makes a l a lot of sense, take a look at ferrari, their price page was 420 to $52, they priced at $52 because they had investors who were willing to pay more. i reported that data was seriously considering $53. that stock is a tick above $52.20 they would probably see more of a down draft if they had priced higher or if people had it in their minds these people are getting greedy. >> everybody wants to think that there's all this smart money out there, you know, the unicorns, these people -- all the smart money guys, so smart, you know, people paid into square, so

smart, you know did sh. >> they might have been smart at the time. >> the rubber hits the road -- if you paid -- >> they're all still in. >> if you put in money 50 or $60 billion at uber, okay, you might look like a hero if the stock opens with $100 billion valuation, barring that -- >> when goldman raised debt according to the financial times for uber earlier this year they say if you don't go public within a year 18% discount of the ipo price, there are other things going on beneath the surface beyond the market cap we are discussing that will make a big difference to investors for the return they are potentially going to get. >> by the way, speaking of the smart money, the average hedge fund performance, 1.7% for october. that's compared to an s&p that was up more that will 8%. that is -- >> this is something we go back to all the time and it's very interesting that in the ipo market, you know, kkr trying to get out of first data, you have

all these private equity guys and hedge fund guys will look to get -- on the investment and you will see -- then it's going to matter what price you went in at. >> it's not just the smart money or horch chose, the biggest investors in private equity are pension funds, hedge funds, you have a lot of college undocuments, a lot of traditional -- i think it was the van guards and fidelities who invested in a lot of these startups so you might have exposure and not even realize it. it matters a great deal what these are valued at. >> where does that money now go? that money goes back into the equity market and the public side. i think there will be a shift and you will see that happen and it's starting to happen i believe right now. you are not seeing the pension funds put the money in those type of investments it's coming back into the public investments, we started to see that shift probably four or five months ago. >> real estate, too, that's a whole other story.

>> the more interesting shift is going to be what happens among the bond fund managers over the next couple of weeks, a lot of institutions. >> good thing you're coming back next week. >> when they realize that, oh, my god, how am i going to get a return now that bond yields have probably gone back the other way. >> we'll leave it right there. david see berg, thanks for joining us. there's much more coming up with david and the "fast money" crew at 5:00. is a december rate hike now very likely after the strong october jobs report? that's next. and president obama officially rejecting the keystone pipeline. a victory for climate change advocates and a loss -- a big loss for the big oil industry. something like that. anyway, we will debate it coming up. you're watching cnbc, first in business worldwide. the future belongs to the fast.

and to help you accelerate, we've created a new company... one totally focused on what's next for your business. the true partnership where people,technology and ideas push everyone forward. accelerating innovation. accelerating transformation. accelerating next. hewlett packard enterprise.

welcome back. seema mody and a quick market flash. >> i want to draw your attention to shares of weight watchers witnessing its second best day of the year up 35% after the company reported earnings that beat expectations yesterday after the bell. the weight management company also raising its four year guidance for 2015. get this, though, the stock is up 237% since oprah inn free announced she was taking a 10%

stake in the company. that represents about a $101 million gain for the media mogul. not bad. >> she needed the money so we're glad to hear it. more than tripling. variety the entertainment trade newspaper if they would write a headline they would say more jobs created than expected and will the ned hike rates in december or hold off. dorothy weaver is ceo of collins capital and former chair of the federal reserve of miami. great to have you with us. dorothy. is december now obvious, is there any reason why they wouldn't raise rates in december, do you think? >> i think december makes a lot of sense because they look for a window, i think there was concern that maybe the window had begun to close on them when they didn't go in in september, i think in september they were shocked by the reaction of the

market. i think they thought we're just going to tell everybody hold your breath, let's take a pause here with all the markets and instead taking a pause and holding their breath the markets started hyperventilating and that was not the intent. >> now, lindsay, this he have a chance to raise rates for the first time in over a decade next month. do you agree that they will do it? what would happen after that? >> it certainly was a stellar report but the weakness we saw in august and september you are still talking about a three month average of 187,000. the fed has been willing to -- even with modest gains but looking at 2004 we had an average space of 210,000 but inflation was well over 2%. so this time around even though you could argue that we are right around where the tightening cycle was in 2004, inflation remains nonexistent. so one half of the invasion, full employment arguably met but the other half of the equation

stable prices remains unachieved. i still think it will be difficult to justify a rate increase with nonexistent inflation. >> kate. >> i read your record today and thought you made interesting points especially talking about the inflation. do you think that fnrc members are looking at that or is it more about market psychology and the feeling that the backdrop is correct? the other thing i'm curious about is the rate of wage increases, is it high enough? >> i certainly don't think the fed is going to be -- i'm sorry. >> go ahead, lindsay. >> i think hourly wage increase is the thing they care most about and that is the real driver, oil prices will go up and down, food prices will go up and down. they can't get to the 2% but i think what they're paying much attention to and always have is the wage increase. they have to be en krjd courage, it's not a huge amount but the 2.5% it's the highest that we've been seeing, that at least gives

them something to hold on to. >> sure. do you agree, lindsay? >> it certainly was a step in the right direction, a nice monthly increase. look back to january, we saw .6% point increase and right back down to that 2% the following month. for the fed to be confident we need more than one month of data points, one month does not make a trend when you look at the core pce there isn't any price pressure coming down the pipeline. looking at the september meeting minutes committee members are increasingly concerned about the down side risk to inflation. i think that is a sticking point at the upcoming december meeting. >> the participation rate is not real encouraging. so it's not like we have a strong work force, everybody is back in. so there's a i didn't think and a yang to every one of these numbers -- >> dorothy, as a former member

of the fed i have a question for you regarding the fed's mind-set. when janet yellen or whoever, when they pull the trigger in december assuming they do, do they sit there and go, okay, i pulled the trigger on 25 basis points and my next guess is we raise it another 25 six months from now? or are they not thinking that far ahead? >> they are always thinking and the most important question is that second question. 25 basis points up or down in december it doesn't make any difference. the question really is how fast will they continue to raise and how high will they raise at the end. that's the actual real question and that's the question they have to wrestle with. this is all about the message right now it's not about the math. >> we have uncertainty on the next. thank you for now, we will leave it right there. the latest installment of the one of the biggest video

game franchises of all time hits stores today. up next call of duty black ops 3:00 will impact the company's bottom line. the latest james bond movie drops into theaters today but the real story is the massive bidding war over which studio will take over the franch sighs.

♪ there are no medals won for earning a living. it's just what you do for family. but it's hard to build a future if you can't see past today. that's why walmart is investing in the most important part of our company - our people. because a raise in pay, raises us all. ♪

our cosmetics line was a hit. the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that. another step on the journey. will you be ready when growth presents itself? realize your buying power at open.com video game publisher activision

blizzard holding its investment day at bliz con it draws 25,000 gamers. activision releasing the latest version of its call of duty series. julia boorstin just spoke with the ceo. >> i'm here at the hearth stone tavern at bliz con, it's based on the delivered game and the ceo is here to show him how devoted his fans are and that they will look to go produce original movies and tv shows as well as short form video content based on the brands starting with the sky landers tv show and call of duty movies. >> we have such rich intellectual property that it lends itself well to story telling and the meeting in los angeles we felt like we could tap into the incredible talent and resources that exist and we

are going to walk before we run, we will be much more development and production focused. we always feel like our intellectual property has so much value it would be hard to entrust it to anybody else. >> and he says that the potential for a studio is even bigger because of the acquisition of candy crush maker king which activision just announced this past tuesday. >> one of the things we realize we have these great direct relationships with our audience members, whether it's on console or pc or with king on mobile phones and it's an unusual relationship and the scale of it is something extraordinary. with king we will have over a half a billion people that we are directly connected to in 196 countries around the world. and we take that responsibility very seriously. >> we will have more from my interview with bobby kotick including his take on the

eastward franchise coming up in "fast money." our julia boorstin with the latest there. we have a new earnings report on berkshire hathaway. it's seema mody. >> berkshire hathaway reporting third quarter earnings and it's a beat, earnings up $2769 versus the $2.20 estimate. their equity have increased $8.1 billion and its book value per class a equivalent share was increased to $151,083 that's as of september 30th, 2015. we're still driging through the results but for now back to you. >> a very different order of magnitude than we're used to this hour. thank you. our seema mody. time for a cnbc newsup date over to sharon epperson. >> here is what's happening at this hour. the supreme court has decided to hear another challenge to the affordable care act. this one from religiously

affiliated nonprofit groups. they say providing free contraceptives violates their beliefs. a texas jury found a 23-year-old man guilty of capital murdering for killing four people when he plowed a crowd into people at the south by southwest festival last year. he faces a sentence of life in prison without parole. former nfl quarterback donovan mcnabb was sentenced to 18 days in jail in arizona stemming from a june arrest. he pleaded guilty to driving under the influence, he was arrested june 28th after he hit another car stopped at a red light. the world famous rockefeller center christmas tree arriving at rockefeller plaza on a flatbed truck. the tree comes from a home in upstate new york. it will be lit on december 2nd during a ceremony that airs on nbc. and that's cnbc's news update at this hour.

back to you. have you ever heard the story the fir tree? every time i see a christmas tree i think about the fir tree. i highly recommend it. >> thank you for that. i don't know about the 75 degrees outside. >> i know. >> it's a little weird. >> seems a little early. >> president obama's rejection of the keystone pipeline how that will impact the oil industry? when we come right back. ♪ ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] ♪ my mom makes hospitals you can hold in your hand.

♪ my mom can print amazing things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] ♪ my mom works at ge. ♪

welcome back. here is a look at how we finished out the day on wall street. a rally just at the close for the dow, ended almost 50 points higher above 17900, the s&p couldn't quite do it, closed about a point lower at 2099 and the nasdaq was up 19. after years of review president obama denying the keystone pipeline, jackie deangelis has the details. >> some saying in retrospect that this was no surprise, the obama administration was never really supportive of the project, also the fact that trans canada applied for a delay this week tipped many off that it expected a rejection allow the company denies that. politically speaking there is a month before a climate change gathering in paris and came on a day when we had a strong jobs number. that all set the stage for president obama to say that the pipeline actually won't create enough jobs to make a significant impact.

he also said it won't take gas prices down they have come down quite a bit and it doesn't impact national security. you can only imagine proponents of the pipeline are firing back saying that hundreds even several thousand jobs could be created and we need every job that we can get. gas prices, yes, they're low but they can always go lower, people can benefit from that and importing foreign oil especially from the middle east it is a significant national security issue. so the final word for right now is a rejection here, but analysts say they don't see the issue going away, trans canada can always reapply if we have a different president in office from a different party potentially you could see this approved down the line. for those who argue that keystone really isn't very relevant right now because oil prices are low trans canada reminded me that oil prices were roughly of the same when they arrived for this project seven years ago but this is about long-term energy infrastructure and if you see companies here producing a little bit less when all those cap ex cuts part start

to come into effect we may really need that canadian oil, kelly. >> as she said president obama did explain his reasons, made it clear this is a decision for the future when it comes to the pipeline. >> today the united states of america is leading on climate change with our investments in clean energy and energy efficiency. >> all right. with an eye towards america's future let's stus the impact of this decision. joining us is an energy analyst at raymond james and dan wise. >> pavul, immediate impact on the oil industry here? >> none. canada's new prime minister says the industry will if you are vief without keystone, i believe him and frankly the canadian oil has much bigger problems to worry about like having a couple million barrels of projects canceled or delayed because of low oil prices. if the oil stands were going gangbusters they probably would

need keystone eventually, now it's a sideshow. >> i think the first time a major project has been blocked specifically because of climate change, dan, what's your response to that? >> yeah, and that's very important. the keystone pipeline would have put as much pollution in the air as the equivalent of 6 million cars every year. so for the president to block this project primarily because of its impact on climate change is a game changer. he's showing the world that these are the kinds of actions we are going to have to take, we're going to have to rethink how we go about approving our infrastructure projects to make sure that they don't make the climate problem worse. this is the first time a world leader has really done that and it's very important change. >> pavel, though, this means that won't come through this country. does it mean that that oil won't be produced, that somebody else won't be buying it, it won't be burned somewhere else? and if so how important is this

as a symbolic move? >> well, look, keystone took on an almost mystical significance as this political hot potato, it's bizarre. there are pipelines being approved all the time, the difference is they don't of cross borders so they don't go up to the state department and the white house. as far as the oil stands as i mentioned lots of oil sands projects have been canceled or delayed because of the austerity with sub $50 oil. if the oil sands growth curve was on par with what it was a couple years ago, by the end of the decade the industry really would need this particular outlet to ship oil to the gulf coast but in actuality those projects are just going to -- they are not going to make it regardless of the pipeline. >> he's right in that canada had already proposed other pipelines to get the oil to market and the one to canada's west coast has

been opposed by british columbia and abandoned and the one to the east coast is controversial and has not been approved. canadians don't want tar sands oil pipelines going through their territory, either. i believe tar sands will not end up going to market at the volume that they would have had keystone been approved. >> dan, it's kate kelly from cnbc. a comment and a question. i think what you said about the impact on the environment and the carbon emissions is a good one only because -- well, partially because you're talking about heavy crude which would need a lot of extra refining capability in addition to being transported to far not gulf coast that exacerbates the impact does it not? >> yes, and also it takes a lot of energy to get the bi tuchlt umin out of the ground, it's not really a liquid substance it's more of a solid and takes lots of energy, steam and hot air in

order to meltd the tar sands enough to lift it from the ground. it's energy intensive and that's why it produces so much carbon pollution, it's the first or second most dirty oil in the world based on its production technique. >> this was also the day after the new york state attorney general announced it's investigating exxon mobil for suppressing information about climate change it says. increased pressure now on the department of justice to follow suit. pavel, what could be the fallout here? >> i think it's a sideshow. the reality is policymakers will be making decisions on how to regulate carbon, they will be doing that in washington, in the states, at the u.n. summit. saying that individual companies are responsible for climate research or suppressing climate research i think misses the point, this is a matter of political will that actually is momentum legitimate momentum now to regulating carbon emissions. what exxon has to say on the

matter is completely irrelevant. >> we've been talking about the political back dprops of things the whole show including the rate hike and whether that has more to do with sentiment or data. i think this is relevant here. the "washington post" has a thoughtful piece about the keystone rejection and why the white house likely did that partly for symbolic reasons as much as for environmental impact reasons maybe more so especially with the u.n. paris summit coming up on climate change. it's interesting, too, though, how the market dynamics are playing a role. obama gave the final permit to royal gut shell to drill in the arctic months ago which environmentalists considered a big defeat, at the same time shell pulled back because it was so cost intensive in this environment it doesn't make sense. >> the new york ag's office going after exxon and some of these companies. >> it's important to note that what they're looking at is exxon had data that showed the climate change was real and is caused by burning fossil fuels but yet

they spent millions of dollars and 20 years trying to convince the public otherwise just like tobacco spent millions of dollars trying to convince the public that there was still doubt about whether or not tobacco was linked to cancer. so it's the same sort of thing. in addition, you know -- >> but, dan, even though that's objectionable on moral grounds what is the legal violation here? i know that ag snyderman might be using the martin act which is a financial fraud law broadly speaking to see if they hide or misled public officials and so on. is that the kruks of it, though, legally? i'm not sure where the case is. >> congress people have written to the sec to ask them to investigate because they are concerned that exxon kept material risk information from their investors and the risk is if climate change is real, then they are going to have to either spend a lot of money to clean up their fossil fuels or they are going to have to leave some of it in the ground and that would

be a stranded asset. >> dan wise, pavel mocha through for joining us. let's get back to seema mody with a market flash. >> we were just talking about weight watchers and the price that we have seen in the stock today gaining 33%, according to a recent filing steve cohen's asset management reporting a 5.7% stake in the company and you are looking at shares of weight watchers up by around 1% after hours. i'm sure kate kelly has something to say about this. >> seema, it's interesting. obviously oprah winfrey's name brought a lot of juice to the stock but steve cohen legendary trader not known as sort of a long and hold investor but obviously his decisions here still carry a lot of weight. you have to wonder if this 5.7% position -- >> it goes up another 50% he will flip out of it and not tell people until the next quarter. he is not a long-term believer in weight watchers' future.

>> i hear you. >> your big concern is that he -- he's not going i will be amazed if he is in the stock by the end of next year. >> i'm saying information about what he does have move the market. >> everybody wants to be a leming. >> you have to think for yourself. >> follow steve cohen. i will be buying when he's selling it to me. >> the latest james bond film hitting theaters today. the rights to distribute it are hitting the auction block. we will see who is in the running to win that bid and if it's really worth it. stay tuned. r latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. comcast business. it's back t-mobile's most popular family plan.

get 4 lines with up to 10 gigs of 4g lte data, each. just $30 bucks a line thats 10 gigs each and no sharing need new phones for the family? get the samsung galaxy s6 for zero upfront, and just ten bucks a month. the samsung g s6 and 10 gigs for all get it today, from t-mobile

sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. bob dylan. to improve my language skills, i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do.

the new james bond movie "spectre" opens today expecting to be a box office smash for sony but that success could be bittersweet. sony's distribution deal with bond will be expiring and up for bid with the hollywood rivals preparing their offers. the franchise has done extremely well. take a look at the highest grossing bond films they have all been released by sony. but according to the wall treat journal sony only brought in $57 million from that sky fall movie despite it's $1.1 pll in box office growth. is bond worth fighting over. here at post 9, welcome, brent. >> thanks for having me. >> how much is somebody going to have to pay up to get this franchise and do you think it will be an investment they will be able to bank? >> it's not about writing a check, what they will have to do is they will have to basically

cut mgm which owns a large stake in the bond franchise in on some other projects and sweeten the deal in various ways and then they will have to convince them that they have the best distribution network, that they're going to be able to take bond to the next level. >> it makes me wonder if the only way in a sense to make a lot more money is to merchandise the whole thing. disney could do that pretty well. >> designee is not one of the studios that's expected to make a bid for bond at this point. right now it's going to be sony trying to keep this franchise in the tent. then you have warner brothers, paramount and fox and they are all expected to making a sieve binds. >> how difficult is it to manage the demands of the family that owns the ip when you're making and distributing the film is to expensive that it affects your return on investment. >> it's extremely expensive. this movie is one of the most expensive movies ever made, cost $250 million to make this film. it needs to do $650 million just

to break even. it's a hugely expensive enterprise and risky enterprise and there are a lot of stakeholders in the bond charge franchise so that causes a lot of headaches and heartache. >> i don't know if you saw the "wall street journal" article. >> i did. >> $57 million does that sound right now. >> i think "spectre" they are expecting it will -- if it's a success, if it performs sim larl to sky fall they will probably make less than $40 million on "spectre." >> does this prove that the movie business is a terrible business? >> well, no, not exactly. i mean, it's more of a halo effect from what i understand. you get to partner with a lot of luxury brands that are part of the bond enterprise, you can bring them into other projects. >> it's not like merchandising like dc comics or superheroes. how many expensive watches will you sell. it's a much harder thing to merchandise. >> bond is of great value to mgm

because of the things you're mentioning, it's a merchandising machine and you can use that film to spur interest, excitement around that brand. >> i think -- have so much here that they can keep for themselves, why is it that this is structured in a way that the theaters can't really profit off of? >> what do you mean in terms of the stake hold that they have? >> yeah. >> it's the fact that the property is opened by the broccolis and mgm and mgm is deciding who the distributor will be. with sony, sony gave mgm is stake in 21 jump street, a stake in the girl with the dragon tattoo, they had to offer up a lot of things to get them to the table. >> i think the theater owners still get their usual split, right, but the distributor, the film studio that actually oversees the production and partners with them, the issue is this is a great franchise and the kind of franchise you want in hollywood, however, it's so expensive and so complex to deal with so many parties to make the

movie that that's where you start to worry. >> i think if you look in terms of who is bidding here, it's probably going to be warner brothers, there is a great relationship between mgm chief gary barber and kevin and warner brothers is having a terrible year, they need something to be able to brag about and getting bond would be something to brag about. >> are you going to see the movie? >> i've already seen it. >> what do you think? >> 40 minutes so long. >> tom ross man the new chief is known for being a hard dealmaker, he is not going to give them everything. >> thanks for joining us. let's get more on berkshire's earnings with seema. >> berkshire hathaway standing behind its investment in ibm writing that unreal liesed losses of approximately $2 billion from its investment in the company but ibm continues to be profitable and generate significant cash flows, we currently have no intention of disposing of our investment in ibm common stock.

we expect that the fair value of our investment in ibm common stock will recover and ultimately exceed our costs. now, it has been a rough year for ibm, shares down about 14% year to date, kelly, it is they >> seema, thank you. >> evan, people have questions whether the warren buffett -- is losing his touch. you look at the other holdings, coca-cola, struggling in in economy. >> i don't know about losing his touch. i thinken vestors would be better off listening to what he says. if you are an investor out there, buy the s&p 500 than you are -- because when you buy a share of berkshire hathaway, you are paying above value. so you are paying for a huge premium for warren buffett. and if he is telling you to buy s&p 500, that is good vic. >> and here in new york. we've mentioned the new york a.g. going after ex on mobile.

they have released a statement. we unequivocally reject allegations that exxon-mobil suppressed climate change research contained in media reports that are inaccurate distortions of the mobile nearly 40 year history of climate research. so also there for the record. >> they are going after exxon. i can assure you they are very, as they say, lawyered up, as a company. >> the dow or the fortune 500 is not lawyered up. >> good point. >> just when you thought the earnings might slow down. next week brings us macy's and nordstrom and a whole lot more. we'll preview those numbers for you right after this.

we thought we'd be ready. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey.

will you be ready when growth presents itself. realize your buying power at open.com.

welcome back. it was another big week for earnings. next week we get numbers from the major retailers. courtney reagan has a preview now. hey, court. >> next week the true madness of the season begins. retail earnings before black friday. abnormally warm fall weather could mean disappointing sales for cold-weather merchandise. iconics fully reports on monday. and after the revelation of restating years of results and

extreme stock plunge. there is questions on the street. macy's reports on tuesday. last year was a blip, or the beginning of a new trend. analysts looking for earnings of 54 cents and for same-store sales to fall. and nordstrom reporting on thursday. same store sales are expected to grow 1.3 and 3.7% respectively. jcpenney reports under the new ceo. investors want to see progress of achieving the ebidta by 2017. >> thank you. courtney reagan. a lot to keep an eye on. the sixth strategy week of gains for the marks. will next week make it number seven. we'll talk about that. and on "fast money," the most obvious trade on wall street. we'll tell you what that is later in the hour.

when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. there are no medals won for earning a living. it's just what you do for family.

but it's hard to build a future if you can't see past today. that's why walmart is investing in the most important part of our company - our people. because a raise in pay, raises us all. ♪ ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. but it is not the device that is mobile, it is you.

real madrid have about 450 million fans. we're trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid. welcome back. a lot of earnings on tap next week. as mentioned, the retailers too. and now that we've seen a six week winning stretch, can we make it seven. >> yeah, i think it will really depend on two things. neither of which are the equity markets and definitely not retail earnings.

they have had a bad season or quarter for the last 30 years. you never heard this retailer is doing well. >> michael kors was doing well. >> that stock is down by half from last year. >> i'm just saying. >> the oil price and the bond market will be the tells for what the equity market will do. and that is what i'm looking at next week. >> kate? >> with the court report on retail earnings, i'm curious to know what they did in the last quarter but the outlook for the all important shopping season which is starting in a few weeks. >> the container ships have been struggling and this is the time of the year you expect merchandise but maersk is shutting down ships and laying off people for the first time since 2009. so go figure that. >> and at a time when fuel is incredibly cheap. so that seems -- >> but in the meantime, you know, the market cap of amazon this week went over $300 billion. >> just like facebook. >> just like facebook. those are big numbers. >> and there are a lot of shares

for them to be stealing. >> big numbers. >> we'll be watching all it. thank you for joining me this afternoon. that does it for us on "closing bell." again, with markets notching six straight weeks of gains, even after the big surprise on the jobs report this morning. "fast money" is up next. "fast money" starts right now. live from the nasdaq market site overlooking new york time square. i'm sara eisen in for melissa lee. tim, dave, steven and tim grasso. tonight on "fast," the raging bull. we are not talking about denero, we're talking about tom lee. he came on the show and said buy. the market is up since then. where does he see stocks going next. he joins us in just a moment. plus this man's word sent one company tanking and another soaring. we'll take you behind the famed short seller short call. plus how you can get in on the action right now. but first