management. we have to leave it there. thank you both very much. >> thank you. >> got a big show tonight, 5:00 sun edison. >> and also what happens with nfc and the canadian pacific and this mallinckrodt story. should be a fascinating close. >> faster than usual "fast money." >> exactly. thanks for watching, everybody. >> "closing bell" starts right now. welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. a lot of moving parts and pieces to this day. stocks are struggling, though, right now, the dow down 200 plus points, all the major averages down roughly 1%. much of this day on -- in part on fears that the fed probably will raise interest rates next month based on that strong jobs report. so is the recent rally now ancient history as investors turn their attention to the fed? we are going to talk about that in a moment. >> we will talk about whether the traditional portfolio 60%

stocks and 40% bonds is outdated and putting your retirement nest egg at risk. >> it's easier said than done, i guess. mean while, yahoo firing -- is hiring, i should say consulting firm mcinn zee. they're hired them them to help with the organization plan but isn't this what the ceo marissa meyer was hired to do three years ago. that stock is down otherwise today. >> oil and natural gas company apache rejecting an unsolicited take over offer. could this be the start of the energy deals so many investors have been waiting for. that's coming up. >> in the meantime let's start with a drug maker and railroad both making huge moves here just in the last 30 minutes or so. bob pisani, what's going on here? the important thing is we got a little m&a talk here that's moving and some stocks halted.

norfolk southern a big crowd just a short while ago, up 12% right now, bloomberg reporting that canadian pacific is considering a purchase of norfolk, we have not heard from the company, no confirmation on this at all. bear in mind the stock is up 12%, that's also up 7%. in fact, the whole railroad group moved on this, csx up 2%, union pacific up 3%. and why not? we have a lot of capacity overruns on some of these, cut costs, figure out a way to do m&a, cut costs overall not a bad idea, the question is whether it could go through. i want to bring you to mallinckrodt, this is another specialty pharmaceutical company. halted twice today, there was a tweet out by citron research which was the firm that had all those comments on valeant saying at these prices mallinckrodt has significantly more down side far worse offender of the reimbursement system, more to follow. valeant can't be living in a

vacuum here. so it was halted twice, once when it was down 5%, then opened up, stayed open for about a minute or two and then reopened down 16.9%. haven't heard anything from the company, we will get it to you as soon as we get any news on that. >> nor do we have the report from citron research which will actually detail what its claims are here. let's go back to the railroad deal. it would be the second largest ever in the railroad space. canadian pacific you can't think about without thinking about bill ackman. they i believe went after csx but that didn't go through and there have been questions about whether the railroad industry can further consolidate. oil prices have fallen now, the business is under a little more pressure. do you think this deal will go forward? >> i'm dead, my battery. >> we just lost bob there. all good questions and i would point out that even with the railroads moving higher today the transportation average still lower, just looking at some of the autos and others are trading

lower today. >> it's a risk off kind of session, only utilities are higher. consumer discretionary which was turning in nice earnings growth is the weakest sector today. >> be sure to tune in to see mallinckrodt tomorrow they will be speaking to this fellow an through left of citron research about his latest call. he has done the damage on valeant, now he is doing it to mallinckrodt, you will be hearing more about that report coming up. >> and we will be hearing more from bob pisani later on in the show. >> let's get to our "closing bell" exchange, though, today. we have with us eric stein, kenny polcari and rick santelli checks in from the cme in chicago as well. kenny -- i mean, i'm not sure i buy the notion that this market fears a fed rate increase after strong jobs report, let's not forget over the weekend that global economic growth rates were ratcheted down as well. i mean, there are a lot of things going on right now,

aren't there? >> there are a lot of things going on but not only did we have that great jobs report, then it came out the fed going to raise in december but then over the weekend people started to contemplate what if the fed is behind the curve and what does that mean for pace and timing and are rates going to go up faster than originally planned. now the speculation is we're behind the eight ball they will be faster and more severe. you are going to get this repricing across asset classes. i wouldn't necessarily be surprised if you see that happen at all as long as that story continues to be the one that's getting a lot of air time. >> rick, in the meantime we're talking about a huge amount of deal making this year. that might have something to do with the fed rate hike. does it? do people here that that little bitty increase or maybe more to come next year mean that now is the time to get all the deals done? >> well, i would think so. now, we could argue if the fed raised rates 25 basis points how that would impact these deals,

but i think the deals are a big psychology. buy backs and takeovers have fueled a lot less stocks available, they've made companies enter marriage for potentially very little benefit and that may change. consider this, we could say it's a lot of things, i haven't heard in my neck of the woods, bill, a lot of people enamored with the global economy for a long time. let's just gram it very simply. october 27th and 28th was the last fed meeting, on the 27th you had a five-year note at 136. it's up 41 basis points and nine trading days. that says it all. >> eric, you are head of global income group at eaton vance. is that the market getting ready for a if he had increase. >> the treasury market is rallying earlier in the year on weak data after the september fed meeting it was more do havish, but since the october meeting that was more hawkish

they put december on the table and with friday's payroll report pert than expected very likely they will go unless something really deteriorates, that's the treasury market pricing, not only a december hike but also what's the pace going to look like if the economy accelerates from here. >> at the same time you have the dollar index which has had a rapid move higher, oil still under pressure in some of those commodities and that three-year auction was a little bit soft. what did that auction tell you about what is happening in the market in terms of demand for treasuries? >> one word was pretty much in every write up on the three-year note auction, weird. it was weird. some parts of it were strong, certain parts were extremely weak. i think that makes sense. put yourself in the shoes of whether it's primary dealers who get the leftovers or people bidding, investors, institutions, central banks bidding, there is a lot of questions. it's like catching a falling knife. in terms of the path of the fed i disagree with our guest, i

think that was irk a. listen, i don't think the fed and company, charles evans, janet yellen are going to completely change their sites. they need to take control back for the market with the form of normalization, maybe they picked a horrible time for t i agree, but about what the path is beyond that, i can't even imagine they're going to get aggressive, especially watching the behavior of the market. >> right, but, rick, the point is -- and i would agree, i don't think anything is going to change, but it's the speculation that's in the chatter boxes, right, the analysts, strategists and all these people that are saying, oh, my god, we're going to be behind the eight ball -- >> there's certain markets that are like -- they have so much whipped up air in them we know what's going on here. >> irk a, you have to invest, though, in the meantime. there can be all kinds of chatter about the -- how fast they will want to normalize these rates, but in the meantime you have to put somebody to work

in a rising interest rate environment. where are you going to put that? >> certainly sometimes people should ignore the noise, but the high yield market, bank loan market, certain parts of the emerging markets, countries such as india are attractive. there's plenty of other places better than front end treasuries if you want to look to invest in the current market environment. >> the one issue is china and i wonder if we were to substitute for the fed china as a concern in this market where we saw that export number that was weaker than expected, imports weren't that great and this is the engine of global growth, neighbor ma explains the risk off dynamic we're seeing in the market. rick, what do you think? >> i think when you put two strong magnets together you get a stronger nmagnet. i think it's a little bit of both. >> kenny. >> i think it's the market and i think eric said it right. a lot of the day stuff is noise and i think you have to try to eliminate that, but i'm not going to be surprised if december is really on the table

and then there's speculation about the pace and timing. you've got to see the market back off for a little bit. they need to take some of the air out of the market. i don't think it's going to crash but don't be surprised if we back off. >> which we are doing. >> yeah. >> thanks, guys, good to see you. appreciate your thoughts. >> and we have about 50 minutes to go into the close. let's look at the dow, it's off 217 points right now, 17,693 is the level there, the s&p giving up 25, that's 1.25% and the nasdaq down a similar amount. 63 points. interestingly, again -- very high hitting all indexes the same amount. >> interest rates up but yet the utilities are leading in the equities sector. >> weird. >> i was going to say weird day. price line falling on this down beat fourth quarter profit forecast for the company. when we come back we will discuss the threat posed by peer to peer booking firmbnbairbnb.

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welcome back. we talked earlier about what was happening with the sectors when utilities were the only positive one, bill, now they're all in the red. while that's still the outperformer it's consumer discretionary down 1.5%, financials about the same amount, energy down, too, as oil is lower. >> the recent leaders for the upside are the leaders to the down side. everybody has been betting on the consumer lately. let's check other movers, plum creek timber is rising after agreeing to be acquired by warehouser for $8.4 billion that creates one of the world's largest timberland and forest products companies with more than 14 million acres of land. plum creek says the deal positions the company to capitalize on the housing market. hertz completed the reinstatement of second quarter results boosting earnings for those three months but did decrease overall profit for the

first six months of this year. kelly. >> now, online travel site price line reported strong earnings but it's weak outlook caused it to take a dive. today price line ceo is letting people know they can book nonhotel accommodations on price line's booking.com site just like airbnb. here is the ceo on cnbc earlier today. >> we have a wonderful product for those people looking for something really unusual to stay in, anywhere around the world, we have a great business and a differentiated product from airbnb. our product charges no fees to consumers, it's instantly verifiable, there is no back and forth and e-mail with the host and we hope to show americans who many may not know the brand booking.com. there's a fantastic offer that many have not discovered yet. >> joining us to talk about this now how about the alliances and strategies onner online travel. jason clampett is held of

content at gift. thanks for joining us today. >> thanks for having me. >> we are all talking about this because of the expedia deal to buy home away, which is a competitor in that category. sort of an airbnb for resorts. is this going to have a material impact on travel or is this on the fringes or what are we talking about here? it's probably on the fringes. i think you saw the expedia home away purchase really not so much as expedia responding to the airbnb threat but the price line and booking.com threat as the video you just showed. booking.com came out today and said, hey, we have got 21 million bookable rooms, 1.8 million of those are bookable vacation rental books and they say that so they can complete with what airbnb has out there. what differentiates home away from the booking.com vacation rental product is that on booking.com it's bookable instantly. as opposed to negotiation with the -- with the homeowner that

you would have on home away. >> i've used booking.com across, especially when traveling abroad, jason, because it is very straightforward, it's easy to use. that said i don't see at all the argument for comparing booking.com to airbnb. >> yeah, i don't think -- i think the -- to say we're still out here, it's not the hot young unicorn that you need to pay a extension to, we're bigger, public, everything we do is transparent. when you think about what expedia is doing, booking.com says you have to look at what we're doing as well. >> are we talking about a zero sum game or can everybody play in this and have a piece of this pie and still flourish. >> it's a case of having your pie and eating it, too, because the pie is being shared across multiple sites. if you talk to any vacation home central rental they have a listing on airbnb, flip key, booking.com and they aren't

exclusive to any one website. >> it's interesting to look at the evolution of airbnb and saying we're partnering with more hotels, in other words, it's not necessarily that that's just for, you know, hotel -- or -- >> private homes. >> private homes, exactly. it's almost like airbnb having gotten itself as an interesting app that especially young people are using is now going to be able to move into the more traditional hoet tell booking space. do you see it unfolding that way? >> it depends on what airbnb wants to do with it. a lot of analysts have argued it's a great distribution channel, we've look at it that way, we've looked at hotels that exclusively use airbnb as a marketing and payment and customer acquisition strategy and so there is a threat for directly the hotels and not just ota's when it comes to what airbnb has to offer. >> having said all this are there going to be clear winners and losers and if so who are they do you think? >> i don't think there are going to be clear winners and losers.

we have orbits -- i think you're seeing new competitors emerge, trip advisor is one of their big revalls and you will see google pushing further and further. they have a new instant book product as well. >> final he will a, jason, we're also starting to see deal making in the hotel space begin to pick up. how much of that is a reflection of this cycle having run its course in terms of revenue growth has increased but maybe there's not a lot more to go and how much of that is frankly the stay at industry bulking up to take on these new startups? >> i think it's really about a maturity of the industry. there have been mergers, new brands, everybody is trying a lifestyle brand or trying independent collection. some of it's natural evolution, some of it is probably boredom within the industry, let's do an acquisition, but really it's -- you know, they're building more and more rooms than they ever have after the 2008 financial

disaster, what we're seeing now is there is a level of maturity and there's going to be some swapping taking place. >> i do wonder -- i know we have to go but you look at price line shares down 9% today and the fact that airbnb takes a much lower cut for its bookings and maybe the hotel industry will look to airbnb and say you're cheaper and put us more in touch with the younger demo. >> home away announced last week they are going to switch to an airbnb type model where they charge the guest as well as the host. right now the booking.com product doesn't do that but i think they will be adding those fees as well to say competitive with airbnb. >> jason, thanks very much. >> thank you. >> jason clampett. you're going through booking.com, i just want to know how late you can get room service in the hotel. that's -- >> tell me you don't use a travel agent. >> no. you call them directly. nice jacket, by the way. >> yeah, you know. cream jacket for the 3:20 hour.

>> heading to the close with 40 minutes left in the trading session here. yes, we have a down day for whatever reason, we've had pretty good gains the last few weeks or so, maybe a pull back for that reason down 218 points on the dow right now. >> shopping procrastinatorors beware, hot items are already running out of stock. >> plus get your beards in, you can come to the new york stock exchange, catch us do "closing bell" live here at the new york stock exchange and join us for drinks at our favorite watering hole afterwards, it is all for a wonderful, wonderful charity, we have three days left on this auction and i am humbled, i know you are, too. >> oh, my gosh. >> by the generosity of people so far in making these bids, but it's not over yet and again it's not about us, it's about the charity. >> that's -- let's see if we can double that amount. three days to go, i think we are at $12,000 and running. $12,250. charity buzz.come, everybody.

stock market still down about 220 points on the industrial average, one of the high profile stocks lower today is alcoa, they've been downgraded to neutral from buy at nomura. citing an oversupply of aluminum that could last another two years. they are trying to figure out the pricing of the one commodity

that has made their name. >> and they're splitting up the company. >> and splitting up as a result. >> yahoo the ceo marissa meyer hiring mic inn zee. >> carol swisher reports reporting a couple key nuggets. yahoo has brown in mcinzie to see which pieces to spin off and which ones to keep. this of comes as mayer's -- turned in disappointing results last quarter and the so-called mavin strategy, mobile, native, advertising and social, the stuff that's supposed to be growing, that growing is slowly. that has investors looking at yahoo's alibaba and gentleman hoo japan's stakes as the bulk of the market stake. the alibaba is worth $31 billion on paper equal to yahoo's market

cap and the japan stake another $8 billion. it's not clear how much of that may get to the tax man before investors get it in their pockets. that doesn't body well for yahoo's ability to remain independent after the spin off unless something big changes, guys. >> thank you, jon, or jon fortt. >> let's ask him, brian. what do you make the latest executive departures and what happens in the three to five years that mayer would like to see the current group stay put. >> it would be amazing to see the current regime lasting for three to five years. right now what matters is of course getting alibaba out the door. i think after that happens -- all bets are off. if they figure out a novel way to grow the business maybe they

have got a chance but it's not clear that there's an understanding of how diarrhea hoo's business situation s the fact that google and facebook are hedge funds of the industry, you have air well which is a clear number three, twitter as a differentiated player. yahoo is a commodity to the core business and they haven't come up with a solution to that. >> now they bring mckinsey in, that to me means they're throwing up their hands and looking for help. why don't you give them free advice that mckin see is going to get paid for. they're trying to figure out which to sell and which to invest in for their future. >> my guest mic kinsy and the like comes in for many different reasons. management knows what the answer s you need someone to come in and validate it. hand in hand with identifying which executives are going to be part of any transition to whatever management already wants to make the company, it's

helpful to have someone who who has been going through the company to identify who is going to help and who won't. i don't know that it's as clear cut as mic kin see is going to come up with some big fluffy cloud solution, i think there's already an answer and they are going to validate it. >> what about project index, brian? if there is where yahoo is making its bets according to one article it's supposed to be a one stop mobile search and indispensable guide in the life of a consumer this as facebook is wrapping up with m, pinterest is going to let you search by pictures. is project index going to do it for yahoo if they get this right and pull it off. >> you would never want to rule out the possibility that a great product can turn around a company. i think the biggest problem is that there's misunderstanding between the notion of building for a consumer and going an advertising business. the question is what are they going to do to compete with scale.

i have not heard anything to suggest that. theoretically if they had had a plan for tumbler to build something out of it maybe that could have worked, bright role, for example, could have led to a bigger ad network business or brigger programatic business potentially but we have not heard anything on the strategy that plays on the needs for scale for digital advertising. >> no interview about yahoo would be complete without us asking can in marissa meyer survive this new phase of yahoo. >> one good product can go a long way if it's a really, really good product. i think it's safe to say that they have gotten very little time to demonstrate that turn around, alibaba wears off probably early next year. >> all right. brian, thank you. yahoo shares are down 1.7% today. >> time for a cnbc news update.

>> jordanian people say knicks people including two americans are dead. the incident occurred inside a cafeteria a at that site and local authorities are searching for a motive. 63 million people from texas to illinois could be in for rough weather in the days ahead. forecasters with the storm prediction center say several colliding air masses are expected to cause high winds and possibly spawn tornadoes. could eating stake on the grill increase your risk of cancer? a new study out today says eating meat cooked over an open flame or high heat may link to kidney cancer. they looked at the diets of over 600 cancer patients and to under they ate for meat than their healthier peers. a man on his honeymoon in south africa was cage diving when out of nowhere the great

wife lungs at him, luckily he wasn't injured. i'm sure he is terrified. i would have just fainted dead out right there. you are up to date, guys. >> i'm sure the great white has a broken nose, too, by the way. >> listen, this hamburger story, it's bad enough after last week's story -- >> the bacon. >> my wife won't let me have bacon or hotdogs anymore, now i can't eat hamburg. >> all the germans who are defending their bratwurst. >> absolutely. >> the 90 year olds in line at the market saying they're fine. >> that's right. it's a national dish, they are proud of it. >> from your homeland. >> it's moderation in all things, bill. go have a burger, it's fine. >> with bacon on it. >> an act of civil disobedience. >> we will not tell cindy. >> all right. thank you very much. 30 minutes to go, the dow down less than 200 points now but still a lot of red across these indexes today, all down better than 1%, the s&p down 22,

the nasdaq down 58. >> up next a leading trader tells us what he's watching as we head into the close for this big down monday. >> a top financial adviser runs through investment strategies that could drive up gains in your portfolio when we come back. you pay your car insurance

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welcome back. here is a look at the s&p 500, all 500 components for you, let's see, decliners outnumbering advancers by nearly 9 to 1 today, as you can see there. the session when pretty much every sector is in the red. >> indeed. let's talk about this. we have the critical last hour of trading on the floor of the exchange with alan valdez of silver bear capital. we've come back a little bit. the imbalances show a little to the buy side. >> maybe a little buying on the dip. what do you make of this sell

off? >> for most of the day it was one stock, ibm, that was dragging it. of course, you know, they all followed suit. you can't put much into this. okay, we had negative news with discretionary spending and looks like recession may spread around the world if there is one. it's all this data driven market that's moving this thing. volume really not that heavy so it's just data. >> what are you doing with this market? are you inn cloo end to want to buy something like this? >> we are from small caps stocks, the large multi-nationals were down 4.5% in the s&p 500 where the small caps were up over 10% so that's what we're following. >> okay. any levels on the s&p? i mean, we've broken through -- earlier in the day we broke through what was considered around the 2072, 2070, we are back to 2078 right now but we do bounce off these support levels. >> until the fed something does

one way or another we're going to trade in that small range. >> if treasury yields continue to rise does that start to crowd out the exit wit market. >> no question about it. >> wherever that save haven maybe. >> we'll find it. >> we'll follow you there. thanks, alan. kelly. >> thank you, both. with the start of the weak sell revolver that we're seeing the investment portfolios having 60% stocks and 40% ponds may team like the wrong mix. our next guest says this common portfolio mix is just what investors should be doing. let's bring in mark madsen. the question is does 60/40 make sense in today's world? >> look, if 60/40 is dead we need to get out the paddles and we need to do cpr is it still historically has done well. the average investor has only made 3.7%, it is dismal, they

are in and out of the market and market timing. the average six-income investor .75. the average investor out on their own is 2.5%, their money only doubles in 30 years. on the other hand if you had a simple 60/40 bother -- go ahead. >> let me just be clear. the question on the table. i understand what you're saying, investors make a ton of mistakes, but the "usa today" article is saying, look, at&t is giving you a better dividend yield than a return if you held the bond because we are in this low rate environment that continues to persist. so that they are recommending investors of all ages including those near retirement hold a much higher proportion of stocks than they used to. is there anything wrong with that in your point of view? >> let's look at the flip side of that. if you had 60% in just the s&p in over the past 30 years and 40 p. rs in fixed income you would have averaged 9%.

that means you doubled your money four times in the last 30 years. so, yes, the assumption that most investors need more equity i'm absolutely on board with that, but you can make it a better portfolio by investing in micro caps in the u.s. and then investing internationally. we have over 42 different countries, 42% of our money is internationally over the last six years since the crash sweden has been up small stocks have been up almost 299% and in france, for example, almost 400%. so it's not just as simple as owning more, you have to own the right proportion. >> but let's not forget the purpose of the fixed income portion of the portfolio, kind of a balance to take out some of the volatility, a safe haven if there is such a thing anymore. where do you put that safe haven money now is if you're not going to put it in fixed income? >> absolutely. that's why i gave the example of the 60/40, 40% in fixed income,

we have over 30% in fixed income, it's got to be short, high quality, because a lot of investors are cheating out on the yield curve. another mistake that people are making they're buying junk bonds to try to reduce that yield. they will get hammered in a bad economy. stay short, high quality. when equities drop you can rebalance with that fixed income. very critical. >> mark, just going back, again, to the traditional idea of 60/40, if somebody is watching this program and said, wait a minute, what is the levin for me? it's okay and i should increase my proportion of stocks in this portfolio or are you saying no way? >> here is the hardest part of my job, keeping people focused on the next 30 years instead of the next 30 minutes. they need to look at the short-term volatility of equities and learn to live with it. if they can live with it, sure, 60, 7 o 0 or even 80%, on average we have 64% of our clients are in equities, this he

need to be equities long-term, but they need to know that they can stay in there even when the market crashes and buy more. a lot of investors can't without good coaching. it's behavior modification not just having the right mix. >> that's an important point especially having been through the selloffs of the last decade or so. mark, thanks for joining us. >> my pleasure. >> here 60/40 strategies and buying whole strategy is dead. while the keyword is strategy. you've got to have a strategy and a lot of people don't have a strategy. work that one out. we are heading to the close, we have come back to some degree with 20 minutes left the dow is down 163 points right now. >> up next, the days of the 60/40 split for your portfolio are over, but we already explained why. >> we already talked about that. that is so d block. >> on both the high end with tag heuer and apple now on the low end how fit is its few sure. that's ahead.

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coals are lower in the retail sector after citi group cuts its earnings estimates and price targets on both those companies citing a sales slow down from warmer weather and an inventory gluten. always the weather. >> yes. holiday shopping some bad news for procrastinators, already some hot holiday items already out of stock. >> joining us from san francisco with more on that holiday cheer we welcome that elf courtney reagan. >> good afternoon. the national retail federation says 40% of shoppers have already started their holiday shopping before halloween. that means many items are already in short supply, "star wars" playing a big role already, jim silver says it's the collectible items like the die cast figures from the disney store or the black series light saber that are the early winners. now, silver also says legos are selling phenomenally not just one product, paw patrol, the

fisher price beat bow baby toy is back ordered until november 20th. the camera drone has spotty availability on several sites. it's not just toys, the second straight holiday season some styles of the iconic ll bean boots are back ordered until the end of february 2016. the fashion northeast is that on your list might be disappointed. shoppers be warned. one in four americans surveyed bid fusion ops say they would be willing to play dirty if that's what it takes to walk out of the store with the last hot holiday gift. the younger the shoppers are and younger their children are the dirtier they are willing to play. >> what does that mean? play dirty? >> that means they will fight each other for the last toy, throw tantrums, whatever it takes to be the one to get their

hands on that last top toy. >> keeping it classy. >> that's what the christmas spirit is all about. >> so drones already are sold out, huh? >> yeah, there are certain models of the drones that are sold out and the price point point on these are anywhere from $70 to $400, $500 depending on the camera itself and how high the drone flies and all the technological aspects of it but there is the one that we mentioned that is actually already hard to find on amazon and toys r us. some days it says it is in stock, some details it does it isn't. a lot of experts say if there's a certain item that you want, particularly in these hot categories, don't wait. you really want to get it now because like you said 40% of folks have already started shopping. i have only bought one item technically i guess i count as already starting to shop. >> if you get a drone you have to register it. >> is that right? >> if it's 9 ounces or larger they're making you register it. >> you ever to register. >> you do.

courtney, thank you. 13 minutes to go here, the dow is down about 150 points now off its lows, considerably, the s&p down 16, the nasdaq down 45. >> down day on the market. we will get a market pulse from td ameritrade's chief strategist. what are their customers doing with this market right now? ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

td ameritrade continues to take the pulse of main street investors finding their clients were net sellers of equities in october. >> we've got to ask him about this portfolio thing. with more insight on what this could mean for the markets let's bring in jjkinehan. it is interesting for years individual investors have largely sold this market, sold the rally, we were just talking about whether people need to actually hold more stocks than the 60/40 portfolio allocation would suggest. how do you get people into this market if you should? >> if you look at what they sold, a lot of what they sold they were already solding, ge, mcdonald's, yearly highs or 52-week highs, microsoft, intel just had a great run. so it's interesting that they were taking profits.

ge, for instance, it's still one of the largest held stocks by our clients, they are actually, i think, doing kind of what you want people to do, take some profits, bears and bulls make money things get slaughtered does apply here. it has been encouraging to see that those folks are doing that. >> and let's remind everybody what a good month for the bulls october was. >> that's up 7%. >> they were selling into strength at that point. anticipation of the fed, that part of it as well do you think? >> i think it was part of the uncertainty, you know, as we've seen going into that meeting there was about a 33% probability they would raise rates, now it's 70% probability. so i think there is some sort of uncertainty around that, but let's face t that's one of the reasons the market has been so skid i wish all year long, it's not only the professionals but tick particularly a lot of retail people have questions about what will happen. what i want to watch as we head to this december meeting do

mortgage head up. we are heading into the slow time of the year for housing and it would give them confidence as we head into that april, may selling. >> what do you think of the most interesting stocks? >> right now facebook is -- and apple are always two that are going to get a lot of attention. what we saw out of facebook was absolutely amazing. again, you know, what we also see is when those stocks pop people start to sell them a bit, too. so i do think that's encouraging and one twitter has been probably the hardest for everybody to figure out and you still continue to see people buy twitter as we go down and also the retail stocks. walmart, amazon and starbucks. starbucks always -- let's take that out for a second. if you look at walmart and amazon, the brick and mortar that said we may not make money for two years, the leader in online, almost seems like they are heading to a cage match over a couple years.

>> all right. jj, it's good to see you. >> thanks for hing me, guys. coming up next, is it time for the closing countdown already? >> then after the bell with a million dollar penalty at stake the president of the university of missouri resigned today after pressure and protest from the school's football team kiting issues of race. we will see if the missouri situation has new found at least to do so. you pay your car insurance

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all right. about three minutes left here in the trading session. bob pisani with me. here is -- we kind of reviewed the day in the closing countdown. we were selling off on the open this morning and it just continued. the question was then when europe closes will we see a different kind of a market, in other words, was the selling pressure coming from europe and then maybe we come back a bit. that's happened quite a bit in the past. didn't happen today. we held near the bottom of the sessions, down more than 200 points at the lows of the day but we're down 170 right now. a couple of stocks that were making news late this afternoon, norfolk southern, they had to halt it after word came out on a report that canadian pacific was looking at them as a possible acquisition target and up it went, up 11% right now as we go out at $88 and change, took some

of the other rail stocks with it as well to the upside. then mallinckrodt went the other direction when word got out via a tweet that the shorting research firm citron research was saying maybe it's the same deal with this pharmaceutical drug company as there is with valeant, that maybe some questions about their business practices, that stock is down 16% right now as it goes down to the close and the head of citron research will be on halftime report tomorrow to talk about all that. >> you're right, the railroads all moved up on that, but yet the transports were lower overall today. >> we had problems all day, fedex was lower, expediters were lower, airlines were generally lower. it's a good idea, heaven knows if it's real or will go through, commodity costs, commodity shipments are generally down for the railroad, particularly coal, m&a would help to consolidate some of that. the story makes some sense.

today of course we have two things going on, number one, the markets have had a great six-week run, we are up almost 10% for this quarter for most of the major indices and overbought and oversold. this interest rate hike thing is really getting very real, a big discussion today was the fact that yellen announced she is going to get a major policy address december 2nd at the economic club in d.c. major policy speech. two days before the next jobs report. i believe that's december 4th. that had all the tails wagging today, the wag tagging today. the important thing is everyone was talking about why would she give a major economic speech two days before the jobs report. in other words, the idea is she's really pushing this idea now. they're all behind it and you've heard some of the other fellows ahead of the san francisco fed over the weekend. >> it's getting very real now all of a sudden. >> very good, bob.

thanks very much. >> thank you very much. >> going out with a decline of about 180 points, a little less that that on the dow. drug corp. ringing the bell and first foundation over at the nasdaq. stayed tuned now for the second hour of the "closing bell" with kelly evans and company. i will see you tomorrow. thank you, bill, we will come to the "closing bell." i'm kelly evans here at the new york stock

we heard some remarks today out

of boston fed president who talked a lot about the possibility of moving in december, but being very gradual and the pace of rate hikes. i think even though that's unstated before as a matter of policy we're starting to see that as the compromise that yellen might be giving to some of the folks who would like to wait a little longer. they will say we will go even lower to make sure you are comfortable. >> we were seeing violent moves in interest rates. we will have more on this in just a moment. tim, in the meantime oil lower on the session again today, the dollar was weaker but it had a huge move on friday. what were the ramifications you see here? >> oil is only down, say, 2.5% over the last couple sessions which includes the payroll friday. i think oil is trading pretty well. you cannot underestimate the impact of the dollar here. correlations for oil are almost one to one with the dollar. so if you think the dollar has gonna lot higher, we all know

about the central bank differential, no matter what you think the close -- fed expectations we don't need to debate this on this show, everybody knows where we are, but the relationship to the dollar to emerging markets, emerging markets are 4% in the last session and a half. so it's clear that in the short run tactical you have to be very nervous of what the dollar is doing even though it didn't rally today, such a big rally and held on to that i think that's an important point. >> oil, again, the emphasis of that -- the impact of that i should say, mike, on the markets this year is huge especially when we saw the most violent moves lower. now that things are stabilizing is it still going to be a head wind? >> you see the energy stocks start to outperform crude oil in the last couple of weeks. there has been attempts where the equitier market has said maybe it is a more stable environment, but it's benefits and starts. obviously today we did have a little bit of give back in oil. >> on that point oil company apache reportedly rejecting a

takeover offer from an unidentified company leading to speculation we may start seeing mergers in this case. jackie deangelis has more. >> shares of apache really soaring on the news up 13% at this point in the after hours session. in a session where the broader equity market really struggled today. now, the company has declined to comment on these reports, but also this low price environment that we're dealing with, one that definitely spurs consolidation and companies try to figure out ways to operate a little bit more efficiently. now, some analysts are speculating that that unidentified company that's looking to come in here potential suitor could be exxon, could be bp, certainly companies with enough cash to facilitate a transaction like this, rex tiller son said not long ago in this downturn they would look for opportunities to pick up assets that seemed attractive. apache performing relatively well right now in this environment, just last week the company reported a much smaller than expected quarterly loss and

raised its four year production forecast. a couple broader take a ways from this news, the first would be that consolidation means that the major players out there do think these oil prices will probably stay lower for longer and that is why they're looking to come together like this. second, the environment creates a situation for those that have cash, it creates an environment of opportunity for them to pick up assets at good valuations. third and this is really more of a question that you asked, this going to start that wave of m&a deals that people were expecting when we heard about baker hues and halliburton a little while ago. that's the question. we didn't see that wave really come through and now we are going to have to look and see if other companies get in the game here. back to you. >> a lot here. er stewart glik man an oil analyst. welcome to you. for all the benefits a consolidation would generally do for the industry why do you think apache is so resistant to a takeover? >> it may be tactical on their

part, they perhaps are looking for a better offer than the initial one they received. i do think that apache has a lot of attractive assets, they are a north american centric company, they have dee risked their portfolio to a decent degree in the last several years and, you know, if trading below appears on a variety of metrics. there is a lot that points in favor of apache. >> i was going to ask you, stewart, what are the attributes of the company right now that looks like a good candidate to perhaps get some interest like this. you've ticked off a few of those things. who might be the buyers? what kinds of companies would you look to to start initiating the consolidation. >> keeping in mind this is a speculative exercise, i think a larger player, companies that perhaps have a lot of overseas exposure but don't have quite as much north american exposure. north america is really kind of leading the pack in the ability to generate production relatively quickly. it's much easier to expand in

north america on shore than it is to think about some sort of new deep water project that might take five, ten years before you're going to get the first production. >> bringing in tim see more here. what are your thoughts? >> i guess i kind of think jackie said that maybe this is a sign that the oil majors kind of are acknowledging that this is a top in oil prices, i feel like it's a time to be opportunistic. ultimately bp has every reason to try to reassert themselves in north america, they also have north sea interests which are very complimentary to apache. so this deal makes sense to me for someone that needs to be opportunistic and apache trades quite cheap to its peers. >> i think this space is crying out for consolidation. the upstream oil and gas space is chronically underfunded compared to its cash viability. it's constantly overspending cash flows even when oil was at $90 a barrel. this is drawing into sharp

relief that when times turn tough not every company out this there is going to be able to survive. i think you're going to see a lot of distress sales caused in the next 12 months and i think you are going to have other names like an apache that look attractive for all the assets that they bring to the table. >> stuart, if you recall to look at some of the smaller players in the energy space who you think would be doing all the acquiring, who do you think is relatively better positioned at this point? >> in terms of making acquisitions? >> who is more appealing to investors, the small players who have this potential bid on a takeover from one of the larger guys or is it one of the larger guys who is ultimately going to be doing the consolidating and emerge ing for this. >> i would rather be playing defense, i would rather be with a larger name, a company like an eog resources or exxon mobil that is yen rating positive free cash flow and has that latitude and lengths ri to be able to spend tunist clee on new assets.

>> stewart, thank you so much. this is only one area we are seeing a ton of thiel maker. the tale from this potential takeover that has been rebuffed, canadian pacific saying there is no imminent announcement but the financial times reporting they are looking at norfolk southern. >> interesting, too, even though canadian pacific said nothing to report here right now it's not really a denial that there might be interest. both stocks up today. that tells you the market crying out for some kind of horizontal consolidation in this area. also it shows you there is a little bit of a sense of urgency in board rooms, stocks are down in the industrial sector. who knows how long the debt window will be open. >> which comes back as well we're saying to the fed and whether when they raise rates if this is december is that going to upset markets for the time being? >> i think there really is right now a moment for janet yellen to

exert leadership here, this is her time to define what is a yellen fed going to be like and the base that they're having a which is the worst outcome? is it worse to wait and perhaps have to reverse course later on or is it worse to have to go very fast in terms of hiking rates. you heard her say that her preference is to go sooner so they don't have to hike quickly. what you're hearing from others saying the worst-case scenario is going to be to have to reverse course. >> tim, before we let you go just your take on this rail deal. if it does happen, more broadly about the pa is that we're seeing for deal making this year. >> i think the markets hold the answer because credit spreads are widening and the loan market is starting to widen out a little bit, too. the pressure is to get a deal done now in places with balance sheets that make sense is high. so the rail deal makes some sense in that we are seeing

pricing efficiency throughout the sector, guys lower costs. the operational leverage that goes into some of these guys happen at valuations that do look depressed. what's the pricing of the core -- whether it's coal or oil, that's the big issue fort rails right now. i think we've seen the worst i think for rails it's an interesting time. >> all right. tim, shoe. tim seymour joining us this afternoon. there's more coming up on "fast money" at 5:00. they will be talking to the analyst who had three big predictions for apple in 2016. conventional wisdom says the fed doesn't raise rates in december or ahead of a presidential election. well, we will tell you coming up next why that perception a far different from reality. will a brand-new $15 fitness tracker from china sign the death note forfeit bit?

welcome back. days fell off for anticipation for that soon to some fed rate hike. cnbc.com's editor has the data to prove it.

>> i think i know what that means. you know, the thinking here, kelly, is that december is normally a volatile month, it's normally low volume month for the markets so the fed doesn't like to raise rates in december, but history tells us something different. according to s&p capital iq the fed has raised rates five times in december since the end of world war ii. while we're at it as far as myth busting goes, the other thinking is that the fed doesn't like to raise rates in an election year. we have a presidential election year coming up. this, too, is not true. the fedder since world war ii has raised a rates a half a dozen times as recently as 2004. so there's really not a receipt sense there to bait their decisions on calendars. what could cause the fed to pause? volatility in the markets, the fed seems to be more focused on the markets than ever and if the market continues to show upset

over the possibility of the fed raising rates this seems to be the only thing that could stop them. interestingly enough, fed fund futures did not move today on the volatility, still pricing in the 70% chance for a december rate hike. >> that's true. are there any -- is there any talk about this around the corridors of the fed about, oh, we better be careful not to upset the apple cart this time of year? >> no. i agree with jeff on principle here that it's not december in itself that might keep the fed or moving or a presidential election cycle. this idea has been around for a long time. the point that it misses is that the fed does not create monetary policy in a vacuum. they create policy that responds to the economy and washington has an impact on the economy. what's embedded in this question of whether or not the fed will move in election years or not is looking at what type of environment, economic environment, are both republicans and democrats fostering with their fiscal policies and how is the fed responding to it. to answer this question you have to look at more than just the changes in the fed funds rate

because you have to really understand if the fed funds rate set at a level that's lower or higher than it otherwise would be in the corresponding economic environment. it's a really complicated question, a lot of states have tried to answer it. >> there is a wrinkle in the sense that they have to refund the government right around the time of this next meeting. >> that certainly complicates things. as much as we like to think about the fed not being a partisan body or not being attuned to what's happening in politics or not watching the financial markets, they really are all three. they have a whole lot of things to take into consideration, particularly when they are not getting any help on the fiscal side. there's actually a little bit of conspiracy theory in this. president obama has made many appointments to the federal reserve board, they have all been of the dovish variety, that fuels the speculation that they are not going to want to raise rates that might help throw the election to a republican. >> mike. >> i think even as recently as september there was a camp that said, you know, the fed is going to want to move in september

because for some reason december is liquid, they don't want to necessarily do this lift off move the first time in so many years while the bond market is back on its heels. i don't think that has ever held water but participants were saying that. i think that the comments that have made december seem more likely have been refreshing to the market because at least they don't have to worry about these ancillary concerns. it's going to be about how the economy performs. >> one thing to add. the fed has been its own worst enemy with the lack of clarity from policy and lack of clarity from their statements so it feeds this off the wall speculation. >> we will leave it there, jeff, but thank you. our jeff cox with the latest on the fed timing. we have breaking news on mallinckrodt to get to. >> shares of mallinckrodt dropping today on a bearish tweet from citron research. we now have a comment from a spokesperson for mallinckrodt. here it is. mallinckrodt generally does not respond to market speculation. that said, we are fully confident in our business model and remain focused on executing

on our long-term growth strategy. we very much look forward to reporting our fourth quarter earnings results on november 23rd followed by our scheduled investor briefing on december 7th. we did see the stock fall dramatically during the trade and right now we're not looking at it moving too much after hours for nower >> 17% is a big enough move for the time being. >> a $15 fitness tracker from china raised the blood pressure of fit bit investors. later while the futures of wall street may be taking a back seat to main street. we will explain when "closing bell" continues. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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gap reporting its monthly sales courtney reagan has the numbers. >> it looks like a disappointing october for gap, inc. so the company reporting october same store sales for the entire company down 3%. if you break out the brands the biggest weakness at banana republic, same store sales for the month of october town 15%, down 4% gap global maybe still continues to be the stand up up 2% same store sales for old navy through the month of october. their guidance for third quarter earnings is a bit below what wall street is expecting. looks like their inventory position guidance is a little better than they had previously given us. those shares down more than 6% for the gap. the report of their full earnings on november 19th. for the snapshot that we have now it is disappointing for

investors. mike, a big reaction in shares really not pleased with this disclosure. >> gap shares have been in free-fall but they have had this little bit of a lift last week. this seems like the kind of company that's going to do one of those we're going to stop reporting monthly sales, get off that treadmill, maybe it makes sense at this point. >> you're almost waiting for the next release and they say by the way going forward we won't be reporting this. there's the share price reaction down 6%. seems that there is a smart watch out there. smargt wednesday there is the $15 she will mimi bands and today we did see that launch of the $15,000 tag heuer can a rare ra connected, $1500 i should say. those are some of the offerings boasting fitness and wellness features and fit bit in the middle of the pack. are they getting backed out of their own sector. joining us is charlie anderson who initially had a buy rating on fit but down graded it to a neutral in you go a. david nelson who thinks apple has a leg up in this space.

welcome to you both. charlie, let me begin with you. which is the bigger blow to fit bit, is it the low end or the high end launch here today? >> i'm going to say neither, actually. just in the sense that we've seen products at the $15 level for well over a year and so far we really haven't seen any impact. on the, $500 i think that thing is so out of price with the normal fit bit that i don't think that one is going to matter as well. >> why do you have a hold on the shares? >> valuation. basically, kelly, from our standpoint it's well over 30 times earnings estimate, we prefer to pay a lower multiple. in terms of the core business itself i don't have any near term concerns from shall me or apple, et cetera. >> david, do you? >> i understand the bull case on this story. you look at some of the out years and you look at some of the estimates and it looks pretty attractive, looks like they have a lot of growth, but here is why i think some of those numbers are high. i think the low end is a real

challenge for them. when you start seeing product coming out at $15 that's going to be a problem. then there is the big can a uh-huh and huh-uh in a and that's apple. i'm wearing one right here, i wear it in the gym all the time. it may not be up to the standards of a fit bit in terms of monitoring health but it's just the beginning. you know it's going to get better and you are tapping into the eco system. so i just think these kind of valuation levels i think a lot of the growth in this name is already in the shares. >> mike. >> let me ask charlie isn't the real wild card how big the overall market gets. if we are at 10 or 15% penetration for fitness tracking wearables if that can double is there enough to go around for everybody? >> yeah, i would say the u.s. is fairly well penetrated, there is a lot of opportunity globally. if i look at europe, if i look at china, if i look at korea, et cetera, we don't see these as prevalent of a product. i think there's probably quite a bit of runway for the next year

or two and then i think we start to get into some of those product maturation questions. >> david. >> charlie, i'm with you on the downgrade of the shares especially with this valuation. i notice you hiked your numbers pretty substantially for this year, next year and the year after both top and bottom line. it's not the kind of thing i usually see associated with a downgrade. >> yeah. you know, from our perspective it's simply a valuation call. the numbers speak for themselves. i think the first two quarters that they have reported they have blown right through our expectations. we track the data on a weekly basis and it continues to hold up very well. i think the numbers are well supported by the fundamentals right now. >> we will see what the holidays bring. we have only 25% penetration on this panel. elon, you don't wear one, mike, you don't wear one. >> my question is as someone who hasn't tried this market yet

what is the difference, what am i not getting if i buy a $15 smart watch or fit bit, $15 me band versus buying the fit bit? what is the difference -- >> when i send you that tweet tomorrow morning you are not going to see it on your iphone that's probably the difference right there. >> charlie, anything you can add to that? >> the $15 -- i mean, they usually don't have a screen so you are not getting the caller i. did, can't see your steps. i would say they're very no frills, the battery life is generally a little worse, the software is a little worse, there is not the social bit of it. >> all right. thank you both for joining us. charlie anderson and david nelson. with the proliferation of smart devices be sure to check into "squawk on the street" on wednesday, singles day a bag day on china and alibaba ceo jack moss will be joining us on the network. time for a cnbc news update. let's get over to sue herrera. >> developing scandal could keep

some russian athletes from competing at next summer's rio olympics, the world anti-doping agencier said it has behind evidence of widespreader doping among the track and field athletes. the "associated press" reporting a video shows the father of a boy killed by police with his hands up when the two marshals begin shooting. the taern for the father tells the ap he saw the body camera video at today's bail hearing. both marshals are charged with murder. a late season storm is swirling in the atlantic, tropical storm kate making its way northwest towards the bahamas with maximum sustained winds of 45 miles per hour. forecasters expect it to strengthen over the next two days. >> and it is beginning to look a lot like -- you guessed t thanks giving. it's the annual test flight day for the balloons, macy's unveiled four new balloons for this year's thanksgiving day parade. volunteers also got a chance to

practice handling the massive characters. that's no easy thing to do. my favorite parade of all time. there's one of the new balloons, kelly. that's skrat. >> there's also an angry bird. >> do you go in person to the parade? >> i have only once, though, because it was so darn cold. >> exactly. i like watching it at home on the coach. >> yeah, with a pair of fuzzier slippers. >> you've got it. >> thank you, sue. the market getting hit hard today and it's been a rough year for stocks but is 2015 the year that main street overtakes wall street? that's next. also, did james bond blow away the box office this weekend or did it leave a inspector of disappointment over hollywood? that's coming up on the "closing bell."

welcome back. let's take a look at how we finished up today on wall street. off the lows of the session but declines of 1% pretty much across the board, the dow giving up 180 points nearly, the s&p 20, the nasdaq 52. there may be major headwinds facing the market but 2015 could be a turning point for the little guy. mike santoli's latest piece highlighting factors from the

job report ag it adds up to a case where main street outpacing wall street. could be news to a lot on wall street. >> i think you could make the case that this started happening about a year ago, november 2014 jobs report was a blockbuster, since then stock market is basically flat and you still have had 2.7 million new jobs, indicators like the jobs hard to get versus jobs easy to get on the surveys looking strong and all of these forward looking saying the recovery is reaching the average household. >> even going to the 2016 campaign there is a narrative that dis affection among low income people is leading to the popularity of some of the candidates on the further right and further left of the spectrum. the lower third on the income bracket are seeing their confidence levels higher now. >> exactly. when they're asked do you think your own financial conditions are going to improve or not in the next year you have seen a lift in the people on the lower end of the income spectrum

saying, yes, we think they are getting better. walmart and other retailers are not raising wages because they are generous, it's because the job market is demanding it and they feel like they need to do that. that suggests that there has been a little relief at that level. i think that that narrative of struggle is going to be enduring, it's not going to change quickly even if the data to. look, bill clinton won the election in 1992 with is the economy stupid, the recession was long over, the economy bottomed but didn't feel like it yet. >> i'm not sure that's why the retailers are raising wages, because the labor market is so tight i think it's because of a lot of pressure from protest groups and org niegsed labor, et cetera. i agree on principle. i think that the economy is broadening out, reaching more workers than it had before. comparing main street's recovery to wall street's recovery is a bit of a false equivalent. the recovery in main street is so small compared to the strong rallies that we have seen on wall street and the begin gains for people who are invested in

stocks, invested in a market. when you say that main street is getting better it's from a very low base. >> it's not about quantifying and saying now it's going to be made up. that gap is not going to be made up. it's about the sequencing of the recovery. initially most of the measures did go into the financial economy, corporator profits were strong, now where we are on the cycle that stuff sl starting to get tougher, profit margins already high, all the rest of it. the lagging indicators are the job market. >> the question has been will this hand off even take place. for the federal reserve as you know it's been largely great, stock market has doubled off its lows but most americans haven't been participating in that, the wages are going nowhere. if this is the case that this hand off is starting to happen that's when you would expect them to react and tighten policy. >> obviously we've talked a lot about raising when the markets are not prepared and it's not the market that keeps the fed from raising rates it's how that feeds back into the real economy. >> or effects the real economy. if there is a sell off in the

market which has been happening over the years because people suddenly go, wait a minute, is there nothing below, this actually all built -- a castle built on sand, you need those indicators that the fundamental economy of people of all brackets is doing well. >> that is true by almost any measure 5% unemployment is pretty far along to have 0% interest rates. by the time you get there the stock market has usually had most of its fun in that cycle. not to say both can't in gear for a little while. can benefit corporate profits and the real economy, but i do think that you are at this point where main street probably is not going to suffer quite as much. >> i was reading the other day as well going back to the 2016 elections that the incumbent party in the exhaust after two terms, maybe even after one faces a full percentage point hurdle because the american public does go back and forth and back and forth. if your popularity as the incumbent can overcome that 4

percentage point gap, for obama his popularity would have to be 54% a lot of that is predicated on how well the economy does. >> i think there is a reason why you can't seen the economy be quite the issue that it was in previous election cycles because it simply -- people aren't quite feeling as put a upon as they were in 2012 and you are seal some improvement in the markets. it's hard to say as a blanket statement things aren't going great. >> to go back and reflect on different recoveries pretty much the narrative is it's not real, it's not happening, it's not there until it is. >> which is exactly the response to this piece so far. >> okay. further evidence. all right. let's send it over to seema mody. >> rack space holdings, 26 cents on the bottom line versus the analyst expectation of 20 kebts, it's a beat on its bottom line, revenue coming in higher than expected at $509 million for the

third quarter, q4 guidance coming in strong, we're looking at the stock up better than 6% after hours. kelly. >> thank you, seema. the word at the box office is bond, james bond. up next we will tell you just how many zeros 007 did pull in this weekend. be sure to tune into "closing bell" tomorrow, robert kapito will join me to give his take on the markets. we'll ask him, main street, wall street. don't miss it.

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it was a box office battle between bond and brown, charlie brown, that is. who is the big winner? julia boorstin joins us now with the recap. >> peanuts performance was far from peanuts, but of course 007 came out guns blazing, "spectre" the latest james bond movie drew $73 million in north america, that's its second largest u.s. opening in history and worldwide the sony film brought in a record $300 million in less than two weeks. it boosts the value of the french ice. sony along with warner brothers and paramount are likely to bid on it. mgm is cashing in on the franc ice in china to offer the bond library via vod and subscription streaming. the peanuts movie revival of the franchise $45 million in north america helping the total box office rebound from two weeks of

box office bombs, bringing the box office year to date up nearly 5% from last year. now we will have to see how these films hold up in coming weeks, hunger games finale mocking jay part 2 is expected to be huge it opens a week from this friday. >> did you see any of them, julia? >> i didn't say either one of these. i have to say i do still really want to see the bond movie even though it didn't get as good reviews as the last bond which set a record in north america. >> and then took a billion dollars worth wide, right? it was a huge hit. but for now time will tell on this one. julia, thank you. let's send it over to seema mody for an earnings alert. >> we are looking at caesars entertainment. a disappointing set of numbers from the largest owner of casinos in the u.s. revenues up $1.14 billion that's down 48% on a reported basis from a year ago quarter. in terms of earnings a loss of

$5.44 per share versus a lot of $6.29 from a year ago quarter. as i said you can see the shares right now down about 9.8% after hours on this earnings report. we will continue to dig through the numbers. for now back to you. >> that's a pretty big move lower. mike, any thoughts? >> it's been a really busted stock. this story has obviously been trouble. it was a $27 stock not that long ago. clearly i don't know what was going on, trafficwise, resultswise, but it seems like the street is kind of throwing in the towel. >> tough one for see sars. up next, a threatened strike by the university of missouri football players helps spur the resignation of the school's president over racial tensions over campus. will that give college athletes more leverage on getting paid to play. is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up -

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welcome back. president of the university of missouri stepping down after football players announce a strike to protest a lack of response to racist incidents from the university. phil lebeau is in columbia, missouri with the latest details. >> reporter: a lot of events happening today here in central missouri, the most important of them being the resignation of the president of the university of missouri following the calls from first black students and

then the missouri football team and finally state politicians saying that it was time for tim wolfe to leave in order to start a new conversation about racial relations here in central missouri and at the university of missouri. here is the president of the university of missouri earlier today at his resignation. >> i take full responsibility for this frustration and i take full responsibility for the inaction that has occurred. i've asked everybody from students to faculty, staff, to my friends, everybody, use my resignation to heal and start talking again. >> reporter: so the university of missouri has been under fire for a couple of weeks and it's the big question now, not only in terms of college athletics but as well as with this university and really for a number of universities who have

been dealing with race relations what happens next. there have been student protests, this graduate student jonathan butler who was on a hunger strike has ended his hunger strike and the university leaders have said, yes, we will continue to talk with minority students here on campus. here is some reaction from students here at missouri. >> i think it was a long time overdue. i think there has been a lot of racial tensions and i'm glad that something has finally been done and i'm glad he actually took the is it ep to resign. >> it was a very exciting moment. >> it is amaze to go see the people, faculty, students of every a race here in solidarity with the movement and i think it's good that he resigned, it was a long time coming and needed to happen. >> what about the missouri football team which had been threatening to boycott a game this weekend against byu in kansas city? today the university said that the football team will return to practice tomorrow, the players plan to be on the field as scheduled this weekend, if

mizzou's football team had boycotted that team it would have cost the athletic department at least $1 million. no he be is saying that money played a factor in the decision for the president of the university to resign you had to figure this played some role in the discussions that took place earlier today. again, the university of missouri president tim wolfe resigning earlier today. back to you. >> thank you so much. our phil lebeau. as he said if the school didn't play this week it could have been forced to pay at least a million dollars for breaking its contract. if the football's team's threat entered into the resignation. college players may have found new leverage against schools for future disputes. joining us is cane coulter who attempted to unionize the school's football team last year. do you think this represents a new chapter in football teams recognizing the leverage they hold against their universities? >> yeah, i don't think this is any new leverage. i think the ability for players

could boycott games and practices has always been there, but this is one of the rare incidents where that leverage has actually been used and i hope that players all over the country realize how powerful a . take us inside the discussions you were having when you were coming together as a team to figure out whether to unionize and that sort of thing. how much desire is there and how much agreement is there on the biggest issues like this? >> i think it takes a lot of courage for players and athletes in gem to boycott or -- in general to boycott a game that they love for bigger issues. they definitely don't want to do it. but in cases like this, where there are issues important to those players, if they decide to take that route, it is very successful in bringing about change. so issues that are important to the athletes at this time, maybe they think about using measures such as this to get the change that they desire. >> well, cane, clearly one of the differences between this

missouri gesture by the team and also what you were trying to do is that it is one school, it was a particular set of issues that had come up on this one campus, not something that would require an ncaa wide change in terms of getting compensation for players. is there any sense that there is movement at work to do something more on that front? >> as far as nationwide boycotts an things like that, it is never something that we've promoted, i think there might be different measures. but i think athletes should definitely not put this idea away and realize that they do have a lot of leverage. and if they decided to use this to maybe change some ncaa nationwide rules, it could be successful. think they have to go through with miss games and prakts and -- practices and cause the

school and the ncaa to change things. >> this being one way in which people at the university thought was the only way to get the change they thought was so important. what happens if it is applies to a host of other types of grievances, which might be far more minor? >> i think definitely it completely depends on the situation at hand. i think -- i don't think you could use boycotting as a method to change frivolous matters. you can't get a coach fired because you don't agree with their uniform decisions. but in situations where coaches may be abusing players or other serious matters, this is definitely a method that players could use to get changes done and get them done very quickly because they are very valuable to the universities and colleges. >> cane, does this sort of say to you there is not a need to unionize because by organizing and coming together they could still make change happen and there isn't a broader system in order to make the change take

place? >> i mean, you don't need a union to strike, to boycott. and grambling and missouri have shown that. but a union could be very beneficial in other matters in actually getting to the table and negotiating and getting a lot of better protections for these athletes. so it could be beneficial, but there is also ways to get change around it, with striking and boycotting. >> thank you for joining us again. >> thanks for having me. >> cane colter there. now macy's, nordstrom and penny's report this week. should you be shopping ahead of results. and later gold is doing something it hasn't since 1998 and that has some traders down right giddy. we'll explain.

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it's a fact. kind of like playing the boss equals the boss wins. wow! let's get an earnings alert on lion's gate. seema has the earnings alert. hey, seema. >> shares down #% after hours. the company reporting earnings below expectations for the quarter. a 28 cents loss versus theest mass of 2 cents and revenue light at $477 million versus the street expect of $491 million.

so a big miss here from lions gate. you are looking at shares down better than 6% after hours. kelly. >> seema, thank you. a couple of big misses. lyons gate and we mentioned caesars, gap had the weak numbers sending shares tumbling 6% after hours. and we have results from macy's, nordstrom, kohl's and jcpenney. >> i think the clothing retailers have a lot to explain. it was down 2% today. you have a little bit of a rally in the physical retailers last week but it has come all the way back. so what they say going into holiday is a big deal. i think people are wondering if it is an end game. >> elon? >> we have a slew of fed speak coming up. deadly, bully and lack ard and fisher all on the same day. i'm looking forward to fed speeches coming up. >> you've been covering the fed for a while.

do you think they are more talkive than usual. >> think they have talkive periods. this is not unsimilar to ahead of the taper tantrum when there are voices out there. when you have a period in which you are explaining policy and thinking to a lot of people, you have a lot of speeches. >> and the blogger ben bernanke came out defending this with different voices saying it does serve a purpose to give people a window on the debate in the room. >> janet yellen put together the famous dot plots and she has to live and die by them now. >> and to circle back to retail for a second, we mentioned the sector was for pressure today, consumer discretionary. they are expecting to see earnings up 15% in the quarter. and you ask why. the sector includes amazon and netflix. but that is just two. and i asked lindsay bell over at s&p capital to send some of the other companies which are in some space.

it is a lot of restaurants and the automatics, ford and gm are in here. >> the media sectors. >> and the media sector. discovery, cbs and comcast. and you have colgate palmolive, and cvs health and general mills. it is a grab bag. >> those are staples. but amazon, home depot and auto zone today all-time highs once again. so you do have a handful of winners that are growing and it is slow. >> but when it comes to housing and autos and that is the sign for consumer. we'll leave it there. thank you. mike santoli and elon moy joining us. more earnings this week. we'll have that for you. coming up on "fast money," more on what is happening on gold as this dollar has been surging as of late. it is not just oil and the commodities getting hit, melissa lee, what is on tap. >> apple stock moving higher by

$55 in 12 months. >> we'll believe it when we hear it. >> thank you, kelly. "fast money" starts right now. live from the nasdaq market site. i'm melissa lee. your panel on the board. tonight on "fast," the man who took down valeant has his sights set on melon crot and it could have huge ripple effects for the biotech space. the names most at risk. and plus gold is doing something it hasn't done in 17 years. we'll tell you what that is and why it has got one major commodities player so excited and how you could profit of course. and later, apple could hit $1 trillion in market cap if it does three things says one top analyst. and he'll tell us what those are. and moments ago gap reporting third quarter results way below expectations and a serious decline in expectations. down 5.5%. and that is across the consumer retail trade.