a rate hike in december would be a good thing for the financials who make their money off of lending and trading. that's where we're seeing the strength right now. >> it's net interest margin. >> we look forward to fast money tonight as always. "closing bell" starts right now. welcome to "the closing bell," everybody. i'm kelly evans. >> and i'm bill griffeth. rally day again. apple among the dow components after that bullish note from goldman sachs this morning. apple up 2.7% today, and is the best performer among the dow components. and then the market moves even higher after fed minutes were released last hour, suggesting that december could be the time for a rate hike. i read this on the wires, kelly. all ten s&p sectors are now positive on the days you can see

there. >> even energy up nearly 1%. sprint is sitting out in this rally. that stock getting hit after the company announced it will cut your bill in half if you switch carriers to sprint. it's for a limited time. it's kind of a black friday type move. we'll discuss whether the telco giant can really afford this. >> with all that going on, wireless is going to be free. >> and close at the mall, too. meanwhile, square and match are expected to price their ipos after the bell tonight. can these two companies break the -- breathe life into a struggling ipo market? i was just thinking about match, as i tweeted out a little while. i learned that match owns a dating website called plenty o fish. >> that's not even the wackiest. >> really? >> oh yeah, we'll have more on all of that. we do begin this hour with new details from paris. our chief international correspondent michelle caruso-cabrera is on the scene for us there.

hi, michelle. >> caller: hi, kelly. hi, bill. we've learned a lot more details about the early morning raid in paris, particularly the tremendous round of gunfire that residents woke up to at about 4:30 in the morning. a french prosecutor -- a french prosecutor says that the swat team as it entered the second floor apartment on a building on the street fired 5,000 rounds in a gunfight that lasted an hour. said the suspects had barricaded themselves in, which gave them time to prepare their counterattack. hours went by. when all was said and done, aegt people were dead. seven men, one woman. if all the people arrested, added up with all of the suicide bombers on friday night, if they are all involved, you get a cell of at least 15 or 16 people.

two people died in this event. a woman wearing a suicide vest, or an explosive vest detonated it. she died. so did a man who was with her in the apartment. the french call those people kamikazes when they wear a suicide vest. who is the man that is dead? the prosecutor wouldn't say. we don't know if it was abdell sam, or if it's abaaoud, the suspected architect of the attacks on paris on friday night. the search in the building is still ongoing at this point. this neighborhood is just about a mile from the stade de france, where three suicide bombers died on friday night. it's a neighborhood with a heavy

concentration, a working class neighborhood, and people who were here overnight said it was just a terrifying morning to wake up to all of that gunfire. they thought there was another attack. they were relieved to find out that it was a police action. >> and meanwhile, so much of the continent on edge. we had them evacuate a stadium, cancel a football game. there have been other reports of flights that were going to paris stopped because of bomb threats. different places where they've had to close down and then reopen. it doesn't yet seem as though things are getting back to normal. >> reporter: no. the ripple effects can be felt everywhere, when it comes to that stadium closing in hannover, germany, yesterday. the whole world is on high alert. the interior minister said look, we got a lot of credible reports saying there was a threat, so they felt they had to do it. so people here, people all over the world. by the way, kelly, isis put out

a statement -- they saiding listen. people just using guns and suicide bombs have brought paris to its knees. they are so thrilled with the effect they achieved as a result of what they did on friday night. >> before we let you go, i was intrigued that the prosecutor there said this raid this morning prevented further attacks. did they have information that there were more planned in the near term here? >> reporter: they found ka lish that cfos, bomb-making material. they felt that they had enough to do something else. >> the dow up 190 points right now. it's our closing bell exchange today with kevin nicholson.

and we have rick santelli standing by in chicago as well. no new real information there from the fed. but it is clear that this market believes we're probably going to get a rate increase in december. why the rally? is the market really looking forward to that? i'm talking about equities here. >> the equity market is looking for some momentum. i think the fed gave us a little bit more information than we've seen in the past. there are more voting members leaning toward making a move in december, as opposed to not making a move. i think the market is happy to see that the percentages are going up, that this is actually going to happen in december. we're moving this a quarter point most likely.

i think investors are just happy that this is going to happen and we're finally getting that light at the end of the tunnel is getting much closer. >> where are you put things to work? >> we like europe and japan. we really enjoy the fact that we've been focusing on the exporters in europe. that's really where we've been focused for some time now. we like the consumer discretionary, the staples, industrials in europe. those are the places we're overweight in our portfolios. >> the dollar hit a seven-month high against the euro. flattening of the yield curve continued. do you think the market is setting itself up for a rate increase next month? i know you are. >> you could make a case that it is. i find it so fascinating that today we had the minutes from

the october 27th-28th minutes. that was six weeks after the september 16th-17th meeting, where international issues prohibited them, in their eyes, from tightening, or at least making a difference. i've never known international issues, to quote the fed, diminished risks from abroad all during a six-week period. to me, i don't know. it just doesn't hold water. we can talk about the chinese market, six weeks ago or eight weeks ago. but the fed is supposed to watch economies, not markets. that's really what's changed. i really expected you to ask me, hey, if tightening is such a bad thing, why are stocks up today? because compared, the dow was down a little bit. the market preparing for tightening. i have no idea if they're going to deliver or not. >> let me go back to what you

were saying. you make the case for buying europe. buying the exporters. even though we've seen some of those core german export numbers look weak. obviously now the additional complexity of the terrorism that we've seen. why is this attractive for you? >> we believe that the fed is going to raise rates. we believe that a lot of the money in europe is going to come to the u.s. because of the currencies consistently being depreciated through quantitative easing, it really gives us the opportunity to be able to take advantage of those exporters, and once those exporters, when they bring that money back, those dollars back to europe and turn them into euros, really you see wages going up for their employees, and they can spend that money out in the economy. that is really what is helping european earnings, and we see

that european earnings growth is going to outpace the u.s. again this year. we were seeing european earnings growth at about 11% to 12% year over year. >> versus potentially a contraction here. understood. >> before we go, john, it could be argued this week's rally is sort of a comeback from the declines we saw over seven consecutive down sessions in the market. today, some resistance. does that bring a further rally? >> i think we'll continue to see the mark move higher. look at all the negative headlines, and this market seems to bounce back and fort and come back. there's only so much time to put

it to work. next week, holiday week. short week. i think the money is feeling comfortable now to get back into this market. we're watching the dow. general motors we're also keeping an eye on. seeing record profits in a truck lineup. >> phil lebeau joins us now from the l.a. auto show with a special guest there from gm. phil? >> thank you, bill. you see anything slowing down in the foreseeable next five to six months? >> i think as we close out the year and begin the first quarter here, i think what we said is as an industry, we feel like it's running really high right now. over 18 here on a monthly basis. so that's good. i think it's fueled with low gas prices here. even here in california.

and i think the credit is still relatively cheap. and i think there's a lot of pent up demand. i think that will string out over next six months. >> is it running too hot as a market? because you are all increasing your incentives. i know you have the lowest percentage of incentives for asking price, but a lot of people are saying here we go again, repeating the same old mistakes. >> yeah, i read a little bit of that. i think there's some players in the industry that are much worse behavior, because they want to take advantage of the higher industry level. i think we're keeping that in check. that's the strength of our product right now. and the desirability of our product. and our dealers are doing a great job with actually selling the car. it's widely different against each manufacturer. you can see that in the percentage basis of the price. we feel good about where we are.

>> when you look at that demand, where is that -- is it coming from your competitors alone, or is it people saying i need to move beyond my suv and into a pickup truck? >> i think it's more coming out of competitors right now. we just got colorado's truck of the year. we've got a three-truck strategy here. our competition really has two. most of our competition doesn't have that mid-size truck. we also have the full-size lineup with eight speed transmissions, better fuel economy. it's a great truck. all the things that people want and use. plus some of the luxury trucks. they're great trucks. >> but do we see -- and you've heard the reports about china eventually building some buick mid-size suvs. do we see that in the next couple of years? >> i can't answer that. i can tell you as our global product development teams are concerned, the two liter is a

beautiful vehicle. it's selling like hot cakes in china. it would be a great fit here, but we've made no announcements on that and and we're not committing to that at this point. >> mark royce, head of product design. >> an elegant no comment on that last question. >> yes. >> thanks, phil. >> great stuff. and the buick lacrosse. how about that? >> beautiful car. >> 45 minutes to go. the dow is up 193 points. we're pretty much at session highs. the s&p adding 20 points. the nasdaq up 70. >> and we are just getting started. a round of after the bell earnings. keurig green mountain among the big ones to report. also coming up, square and match are pricing their ipos within the next two hours. dominic choo will join us and he'll have a look at the ipos

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welcome back. >> health care also leading the way. interesting. a defensive play along with a growth play there. >> and the weakest utilities and telecomm. those are the two which are lagging today. >> we have some other movers to tell you about. conagra is raising on plans to split the company. it's splitting off its business, which makes frozen potatoes and frozen appetizers. the remaining will change its name to conagra brands. 2.4 billion-dollar deal. shares up 8.5%.

>> match group expected to announce their offerings. dominic choo with a special report on companies that defined gravity when they went public earlier this year, but now they're falling back to earth. as we talk about ipos on the broader landscape for what's happened in 2015 so far. according to renaissance capital, a firm that manages ipo-related etfs, they tracked 163 ipos that have happened so far this year. a couple of the big ones coming down the pike. about 58%. so the majority are trading below their offer price. so again, a very mixed picture, but for right now, more of those ipos are trading below where those stocks were offered in the first place.

if you take a look at some of the standouts, you take a look at some of the downside. party city, for one, a very high profile ipo. it's now down about 33% from its original ipo price. blue buffalo premium pet foods down about 13 from the initial price. even ferrari, it raced off out of the gate there with its ipo. about 7% below where it priced its ipo. on the upside, though, there were three companies that have at least doubled in terms of ipo price. this is global blood therapeutics. i want to point out, many of these companies are still below where they have traded throughout the course of the year. take shake shack, for instance. remember, priced at about $21 a share. it got all the way up to around $96, $97, and has been on a down trend ever since. now it's $42 a share below the opening trade.

if you look at the overall market, versus the overall market, you can see here, the orange line, the s&p 500. the white line here, the ipo etf. you can see that diverging. the question becomes whether or not this is indicative of ipos going forward. the window is closing for 2015. but will it open again in 2016? that's going to be a huge question. bill, kelly, back over to you guys. >> thank you very much. i know i'm overdoing this, but i just love this dating website. people ask, how did you meet? we owe it all to plenty o fish. >> those stories are already being told. i think it's meant -- listen, there's the whole spectrum of these kinds of sites. from the ones people try to stay away from, from the ones that are a little bit more appealing. maybe some humble name like that helps draw the fish.

>> just can't get over how romantic it sounds. we've got 39 minutes left in the trading session here. the dow up an even 200 points heading to the close. >> how did you and your wife meet? >> it was a blind date, as a matter of fact. the good old fashioned way. friends set us up. >> my parents did as well. up next, whsigns point to a rat hike next month or next year? >> find out if sprint's price breaks will get users to switch carriers, coming up. good. very good. you see something moving off the shelves and your first thought is to investigate the company. you are type e*. yes, investment opportunities can be anywhere... or not.

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if-the-firm says the company's stock could raise 43% over the next year as investors shift their focus from the number of phones apple is selling to how many services apple is using. >> the apple universe. let's send it to jane wells. she has a quick market flash for us. jane? >> hey, guys. shares down, but not as much as

they were earlier today on news that a new resort has been big on will not open on time. that's the promotion for the $4 billion wynn cotai, but it won't be ready until june. steve wynn complained he doesn't know how many gaming tables he'll be able to have. gaming revenues are already down as much as 35% this year to around $30 billion, expected to fall to $25 billion next year. guys, back to you. >> that's quite a hit. all right, jane, thank you. the fed releasing minutes from its last just about an hour ago. let's get to steve liesman with the highlights. >> that coming minutes after the fed meeting. even more explicit. the fed is fast on its way to

that first interest rate hike in nine years at the upcoming december meeting. most thought economic conditions would be met in december. and they make clear the october statement was designed to send an expolilicit signal. the october minutes say the decision has been made, that a rate hike remains contingent on the economic data. but there are obviously some dovish members on the committee who remain worried about global weakness and the u.s. economic slowdown. but the center of the committee looks to believe that those risks have diminished and the economy is in pretty decent shape. that point was driven home by that recent strong october jobs report, which by the way came out after the meeting. all members of the committee agreed that once rate hikes start, they're likely to rise slowly or gradually. they seem to be telegraphing a rate hike in december that i think at this point, only very

weak economic data could derail. >> and that's an interesting question. what would it take for this not to happen in december? in your view, having spoken and being familiar beyond the minutes with the fed thinking as you are? >> you know, i think it would take a very weak jobs report, that would be the center one. some very, very sharp appreciation of a dollar. i think the one thing that could probably derail the fed is any explicit military action that involves the coalition of troops on the ground in syria or the middle east someplace. the fed would hold off in that case. it's not looking for gdp. job growth from around 100 to 200. that should be sufficient. unemployment rate that hovers around that 5%.

the fed is not going to be worried about it. i think they have a base case of a rate hike. >> i'm going to sound like a conspiracy theorist here, but i'm really not. i'm just curious, do the fed officials compare notes? it seems like we're now getting a change in the tone of the fed speak where they are maybe setting us up for a december rate increase. you know, the increased possibility. do they compare notes and say i'll say that if you'll say that? >> i think there's some note comparison. but i think largely they speak independently within their blocks. i think the doves have a certain way of speaking it. you've seen that a little bit. dudley, the fed president has been more dovish. he seems to come more towards the center. there are doves on the committee that are steadfast against it. but ultimately, what you listen to is the center of the committee. they tend to talk very civilly at that time. tomorrow morning on "squawk box"

with loretta mester, you'll want to tune in to that. >> you got it. very good. thank you very much. time now for a cnbc news update with sue herera. >> here's what's happening this hour. honduran authorities have detained five syrian nationals who were trying to reach the u.s. using stolen greek passports, but the police say there are no signs to any links to last week's attack in paris. ted cruz blasting president obama over his criticism regarding republican rhetoric on syrian refugees. calling the statements "utterly unbefitting a president." he also challenged the president to a debate on syrian refugees, telling reporters the president "should insult me to my face." cia director john brennan says isis is the most powerful and ruthless terror group ever.

he told the 1,300 government and private security experts that the u.s. is doing all it can to stop isis violence. nissan announcing the first injury linked to a takata airbag in japan. a nissan vehicle with a passenger side airbag was involved in an accident last month. the airbag exploded, causing injuries to a woman sitting in the passenger seat. and you're up to date. back to you guys. >> sue, thank you for now. 30 minutes to go here. keeping an eye on markets. nice across-the-board rally. we really have had a sharp move off the lows of last week, and a lot of these names are moving upwards. the dow is now up 210 points. the nasdaq up better than 1.5%. >> a couple of traders pointing out to me, i mentioned it earlier, that we have gone above some resistance levels there that mark newton was pointing out, and i think some of that has brought some of the buyers in as well. tell us what he's watching as the close.

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the rally continues. the dow up 217 points.

a target lower, though. retail has been spotty. target missed the company's third quarter forecast for its digital sales category. the retailer blaming warm weather and a double-digit decline in electronic sales. you can see target's shares down 4.5% right now. >> i'm on the floor here with gordon charlov. what a rally. what is going on here? >> a nice turnaround from last week when they looked like they bumped their heads. it really seems like the fed knows the catalyst. so what, price stands. >> it's just interesting, you have earnings per share, which are under pressure. the u.s. tlar is modollar is mo higher. this market keeps moving higher. >> you can look at it the other

way, which is countries are now getting together and are going to try to straighten this thing out. the price of oil has risen so dramatically. if anything, there may be demand around it. it may be more positive in that regard. a lot of these days, it depends how you want to look at them. including those countries. >> real quick. i wish we could cover so much more. but regard to square and match. square especially, because it's reported that it's coming in below the price range potentially. if we're talking about all these fundamental reasons for the market go higher, why isn't some of this money going into square and the others? >> you can say there's fundamental reasons. i've been around long enough to know there are other things in play. they're following the direction.

they're going to try to get the trends late in the year. >> keep an eye for all of that breaking after the bell. gordon charlop, bill. >> thank you, kelly. as we know, the bombings in syria continue. france, issue, the u.s. striking targets held by islamic state in response to the terror attacks last week in paris. if the west really wants to defeat isis, a lot of people asking what is the right strategy? dakota wood is senior research fellow for defense at the heritage foundation. he retired as a lieutenant colonel from the marine corps after 20 years of service, and we welcome you. thanks for joining us today. >> thanks for having me. >> you think the strategy needs to be boots on the ground. bombing is not going to be enough. why? >> the stated objection is the destruction of islamic state, the ends apparently is the destruction of the islamic state. the how we're going about doing

it isn't making any material difference on the ground at all. and so to destroy an enemy force, it takes ground action to seize and hold terrain and to destroy its combat power. if that's the goal, it's beginning to take ground force to do that. >> does that mean american ground forces? what about russian ground forces or french? >> right now, the united states is the only military power with the competent forces that can get there and actually conduct sustained operations over time over such a large area. none of the other regional players, whether it's turkey, jordan, saudi arabia, or iraq have the political will or even the competency in their militaries to undertake this. if the u.s. shows up, likely like desert storm in 1991, we'll have lots of help, but it's beginning to take the u.s. taking the lead on the ground to make this happen. >> the word most often used by critics of sending troops on the

ground is quagmire. especially after a, let's face it, unsatisfying campaigns in iraq and lately afghanistan. do we really have the political will to send boots on the ground in syria? >> we're kind of mixing things here. the political will has to be coordinated with the national interest and stakes. so if it's in the united states' interest to see the islamic state destroyed as opposed to remaining as it is, or heaven forbid gets worse, then you summon the political will to make a compelling argument and dedicate the appropriate resources. the quagmires we had in gn and iraq, the most criticism isly p off track. understanding the cultural context. what can be accomplished in a given period of time and what resources you're wanting to apply against it. you can take an entirely different approach.

>> our guest next hour, says putting significant hotroops on the ground. are you convinced this is the best way forward? >> the military piece is only one part of that. again, just destroying somebody else's military, and then withdrawing unilaterally without handling the day after. what is the theory of victory look like? it has to be a comprehensive approach. there's economic. there's cultural. there's diplomatic. there's arranging an alliance structure. i'm talking about the objective of destroying islamic state. it will take ground power to do that. if you're not willing to follow through and deal with the aftermath, then we pull back, see how the region unfolds. it will reorient itself with new power brokers, but i don't know that that's in the long-term u.s. interest. >> retired lieutenant colonel dakota wood there with the heritage foundation. thank you for joining us, sir. appreciate it. >> my pleasure. heading to the close.

we've got 20 minutes left in the trading session here. the dow hanging on to the lion's share of the gains today. up about 219 points right now. we've got a big wave of earnings right now, including salesforce, l brands and keurig gr green mountain. up next, sprint in the game, offering new incentives to get mobile users to switch. but are they too little, too late? we'll have john harwood with that story. 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. about 15 minutes to go. the dow is up 219 points. meanwhile, qualcomm is sinking to a four-year load. the trade commission accusing the chip maker of breaking competition laws. qualcomm says regulators are threatening fines and modifications in their business practices. >> sprint shares falling after the ceo announced new incentives to get mobile phone customers to switch customers.

jon fortt call joins us now. >> they do call me the black john harwood. this is a promotional offer. prices go up after that. sprint says this is simpler than the last cut your bill in half plan. the see you said the old method was hard to process because some customers have discounts from other carriers. if you have to break a contract to switch and you want sprint to pay that bill, you still have to turn in your phone then. there are many wrinkles. it doesn't apply to rollover minutes. suffice it to say, you have to

read the fine print. at least one of sprint's rivals is pointing that out on twitter. >> can they afford to do this much longer? >> i think the question is, how much of a differentiate oris price anymore? at&t and verizon are trading on their lte networks, and how much of the country those cover. so it's not necessarily just price. sometimes it takes more to get people to switch. especially if you already switched off of sprint for one of these other carriers because your service wasn't as good. >> that's a great point. i believe it is sprint which has had to pull back on its investment in some of these networks, trying to shore up cash flow. if they're doing that, how can they support long-term the kind of, you know, support that customers are going to look for? >> it's a chess game. they've got to beef up their coverage in areas where they think they can gain customers.

then in some cases, they've got to cut prices to try to get customers into the bar once they've built the bar with all these specials in effect on a wireless basis. >> the stock down 8.75%. >> perhaps the investors are misreading this. i think in some ways, they're actually going to make more money by revamping this plan. >> depending on how many people switch. >> they already were cutting bills in half. now they're not cutting as many bills in half as they were. >> that's true. 13 minutes to go here into the close. markets rallying nicely across the board, led many some ways by financials. health care also having a nice session. >> getting stronger as we head toward the close. bank of america says a big surprise is coming for the market. he'll tell all next, when we

come back.

the stuff you ask me sometimes. welcome back. ten minutes left in the trading session. chris heisey from bank of america wealth management joins us. let me point out, we see 200 member to buy. probably won't have much of an impact on an already positive day. what do you make of this rally here? >> a little surprised at this, it seems to me that some of those big surprises that we've been waiting for, which is simply stability in the economic cyclical recovery.

if you go august all the way through november, the big worry is the fed hike. are they too soon? it happens to be lower than when qe1, 2, and 3 were going. all you needed was some potential data that suggests that's not going to happen. >> what is the big surprise coming to this market? >> surprise, surprise. it's government spending. government spending. the state and local governments are flushed can tax. the federal government is not a drag anymore. given the latest fiscal conditions that they put in place. that's coming next year. going to look a lot better than people expect. the strong dollar negative effects are starting to fade. all you needed was the strong dollar's acceleration to start the slowdown. you didn't necessarily need it to be weaker. just slow down. and that's what's happening. >> what do you think the market

will do with a rate increase? >> i think the market is telling you they're okay with it. the gap between the dots and the actual fed futures in terms of market participants where they thought the interest rate increase would be, it's gotten a lot narrower. the surprise in the market isn't a fed hike. the surprise is the acceleration of future hikes. >> and they're certainly telegraphing it's going to be a slow assent. >> i -- ascent. >> i'm just wondering how much growth they're going to see. >> it's usually the equity number you should use. you really can't expect multiple expansion in this marketplace. trying to expect multiple expansion with where it is today and elevated fed hikes is not a potential game you want to go into. keep it at fair value, 5% to 6% earnings growth. a couple percent in dividends. 6% to 8% returns next year.

>> seems to easy. >> it's not that easy. >> chris heisey joining us. >> coming back with the closing countdown. >> key earnings for you after the bell. plus, square and match will price their ipos. you're watching cnbc, first in business worldwide.

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three minutes left. the rally continues. here's the dow. we have a decent rally going anyway. here's where the fed minutes come out. the classic stutter-step occurred. we're going out with a gain of about 1.5%. also the ten-year, the flattening of the yield curve continues as they expect a rate increase next month. the dollar index continued higher. the dollar at a seven-month

high. taken some profits on the dollar index itself, but the dollar itself against the euro hit a seven-month high. wti crude briefly was below $40 a barrel today. came back a little bit. we're right at that $40 range. now we get earnings after the bell tonight. that would include sales force, keurig green mountain, and l brands, the parent of victoria's secret. all of those are higher today, bob pisani, and there's a couple of ipos testing the water. >> i took a little poll, saying what the heck happened, guys? why do you think we moved? as near as i could tell, a lot of talk about if they move now, the path upward of interest rates will be much shallower. the word shallow is great. that's going to freak everybody

out. in my poll, that was the thing that people cited the most. we've got some very important ipos. nobody -- they have maintained the prices on this. they're going to close the books. closing the books right now. everybody believes these deals are going. they're very important for silicon valley. >> not the strongest price, though. >> that's going to be the issue. everyone in the last two months demanding a price cut. everybody generally likes square. everybody is saying guys, the whole market is getting haircuts. we want lower prices. the big issue is whether they're going to have to lower the prices. >> wouldn't they love to come to market on a day like today? >> that would be fabulous. that could be a bit of a help. we're up 3%.

>> see you later, bob, thanks very much. >> ringing the closing bell at the new york stock exchange, ihs corporation. a lot of earnings, and the critical ipos coming up on the second hour of the program with kelly evans. see you tomorrow. thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans. what a session on wall street. dow going out at the highs of the session, up nearly 250 points. the s&p adding about 33. it was up 1.6%. that nasdaq adding nearly 89 points. about 25 points shy of the 100 level. it rallied 1.8% today. the weakest were the sensitive areas of the market.

those fed minutes came out two hours ago. we've got a trio of big earnings coming your way. josh lipton is watching salesforce for us. sara eisen is covering green mountain. seema modi covering l brands. also with us on today's market action, "fast money" trader guy adami. welcome, everybody. kick us off with some thoughts. this is an incredibly strong rally. >> a little bit of a buying panic. the minutes were a little bit of an accelerant here, but it didn't really change the story. i've been saying the stock market is kind of making its peace with the rate hike, but the other aspect is the dollar, the treasury curve. it tells me people who felt underinvested in stocks, in fact this is going to be a little bit of a year-end rally. i'm a little skeptical.

>> the chase is on? >> i think the market is. i think the accelerant here potentially, kelly, is the likelihood of continued m&a. the fed potentially could raise, but that raise is going to be slow. it's going to be shallow. and that means the availability of capital to do m&a deals remains high. i see that as the catalyst that potentially could push the market higher for next year. past that, i don't have a lot of visibility and confidence, but i think that is something that the market could be looking to right now. >> guy, what would you say to that? >> to me, i don't think the fed missed. nothing really changed in terms of the language. maybe people interpreted it as the rate will raise in december and we'll see it december 2016. so the path in which they will continue to raise will be slower and sort of longer in duration. that's the only thing i can glean from this. because as carol and mike just

said, nothing really new came out of these minutes to me. so i think the markets want to go higher, clearly. every piece of bad news continues to get discounted. the only fly in the ointment continues to be the energy sector, which i still think there's another leg lower. with that said, for the s&p, it's all systems go here. >> mike? >> i mean, i definitely agree. it's a sentiment driven thing right now. if people feel underinvested, whether they are or not, it's kind of interesting. the energy stocks were interesting today, too. the equity related to energy continues to outperform the actual commodity. >> this was as oil dipped below $40 a barrel. >> that's exactly it. you've got oil on the down trend a little bit here. you have the rules. you're getting this very bullish feeling, that they need to jump in here. it's a little bit surprising from my perspective. >> i want to go back to what you said about the path of the fed rate hike. this is going to become the next big argument, the big source of

debate, if and when they even do go in december. sit one and done? i've heard people say that's going to be it. i've heard others say nope, look at those wages, look at inflation. they're going to have to go more quickly. >> i think the data suggests they should go at a quicker pace. i think they're reticent to do so. barring some unforeseen circumstances, which they effectively said, they have to do something in december. but after that, they don't have to do anything. i think that's what the market took today as sort of out of those minutes, that yeah, we'll move in december, but it might be a long time. that's really my interpretation of it. >> that might be what the market is trying to glean here, but the meeting happened before this big payroll number. i think the fed is saying don't worry about it, because they want the market to be prepared. they don't want the market to extrapolate from there. >> i would just say it's not a

foregone conclusion. i know that everybody is on the bandwagon that this is going to happen. they still have a lot out there, a lot of language, a lot of data dependent language that isn't quite as rosy. i've heard people come out and say the economy is really strong, but things aren't that great. we are in this period of sluggish growth. a tremendous number of outs. i don't think it's a foregone conclusion. and i think if they do happen to go, it probably will be very slowly. >> they are doing this pretty aggressive offer to try and get new people to sign up. it's a special period of time. one current analyst on the stock said we are expecting an announcement, but this is the one we're really hoping for. >> exactly. nobody who wants the corporate values wants to see this kind of action.

the industry wanted one fewer player. this isn't the way they wanted to get there. i'm not saying it's over for sprint. but obviously the rate is in the bottom and the winner doesn't really win. >> that's an interesting way to put it. >> if you think about the consumer you want to attract, it's not the one looking for a new deal every time a new deal comes to bear. i think this is an industry that's ripe for a little bit of consolidation. >> guy, a final word? >> i think sprint down 10%. obviously that's a big story. but at&t has been in this 33-37 seemingly for the last four or five years. to me it's on the lower end of the spectrum. to me, out of all the names we can talk about, that's probably the safest out of the bunch. >> all right. now we're starting to get these earnings. you can see shares topping almost 15% after hours. >> 85 cents per share.

the street was looking for like 70 cents per share. when it comes to revenues, 1.04 billion. the estimate was 1.03 billion. a slight beat there. breaking it down, there are two key categories. there's the portion packs, or the k cups, which is the bulk of their business really. those came out stronger. 861 million versus the 836 expected. so that's really what drove the strength in the quarter. but there's also brewers and accessories, and that was a miss at 123 million. that's 32% less than last year. perhaps one of the reasons you're seeing the big spike after hours, up 16% right now, is this stock has been beaten down. it's the third worst performer on the s&p 500 in 2015, down 70% ahead of this report. it's had to lower guidance several times going into this quarter. we do have some new numbers from keurig green mountain. this is the first time they're

giving guidance there. they're expecting next year to be flat to low single digit revenue growth. that's pretty much in line with what analysts were looking for. they're getting a range of 325 to 345. so widely expected. the big key here is going to be how is the new cold system doing? it launched very slowly during the month of september. and what's the outlook on hot that's had struggles selling hot with a lot of hot machines piling up at stores. there is a sense that things are starting to turn around and go their way, but the commentary on the calls is going to be very important. one last announcement i want to leave with you. keurig green mountain increasing its dividends 13%. this is a company that has been buying back shares as well as the stock has been, as i mentioned, beaten up pretty badly so far this year, after being one of the hottest stocks of 2014 and 2013. >> right. it's like it's been hot and cold. thank you. what do you think?

>> i think this is a potential buyout candidate. if you look at the prospect, this is not going to be the high-flying gross company that perhaps some thought that it would be. but perhaps it makes sense. they've got a dividend that they're paying out in cash. they're trading at a very low multiple. to me, this is something you may want to look at as a potential buyout. >> guy, a quick comment on that? >> let's talk about the stocks real quick. it's not an expensive stock. this quarter was a revenue beat and an epf beat. the guidance for 2016 was not disastrous. it wasn't great. it wasn't that bad. lack at those free cash flow numbers for next year. those were surprisingly good. what's interesting, though, kelly is we're going to have greenberg on the 5:00 show to discuss just that. in the business, we call that a tease, by the way. >> that is an excellent one. that's going to be great.

shares moving higher. josh? >> salesforce just reporting. 21 cents on $1.71 billion. analysts were looking for 19 cents on $1.7 billion. deferred revenue pop 28% to 2.85 billion. company also raising its revenue guide 6.64 to 6.65 billion. mark benioff saying they are on track to deliver their first $8 billion per year during fiscal year 2017. that conference call, some more about guidance. also traction. 5:00 p.m. eastern, we'll be on it. kelly, back to you. >> thank you, josh. what are your thoughts? >> not an inexpensive stock. a potentially expensive one. and also one where the m&a doesn't go away. we had these reported talks.

i don't think that's the story here. the story is a stock can stay expensive if people continue to like it, as long as those top line numbers keep coming through. obviously people love the space. i think the skeptics -- i mean, i've been one at times as well. people ignore the stock-based compensation. as long as they have tail winds of that top line growth and they're getting share, i don't know if the story changes. >> yeah, i think they have a little bit of the amazon halo effect here. same thing for sales force. it is incredibly expensive. if you think about the cloud, the competitors that they have, they're not even anywhere near the fastest growing cloud player. to argue that they really deserve that kind of a multiple i think is a challenging one to make. maybe this is one that you just kind of sit on for a little bit. >> a brief last word, guy? >> i'm an ibm barber. i've been right to be. so you look at ibm since march 2012, i think they brought over 200 million shares of their own

stock back. probably spent close to $40 billion-ish. think about what they could have done if they had just made an acquisition along the lines of salesforce.com. i get the point that this is an expensive stock. it's been ridiculously expensive for quite some time. but they're great operators and you can't get in the way of this name right now. >> thank you. appreciate it, mr. guy. french police launching a massive raid in the hunt for the mastermind of the paris terror attacks, resulting in two dead and eight arrested overnight. michelle caruso-cabrera has the latest now from paris. >> reporter: kelly, there is one major outstanding question about this raid. what is the identity of the dead male suspect who was killed by police, or by a suicide bomb during this raid today? is it abaaoud? the alleged mastermind of friday's attacks in paris that left 129 dead?

prosecutors were very clear the reason they sought out this location, the reason they did this raid was they thought he might be there. we know they did not arrest him. he did not come out alive. there is a dead male suspect we know about. is it him? no answers at this point from the prosecutors. in the meantime, experts are telling nbc news that the costs of friday night's tack, probably less than $10,000. compare that to the september 11 attacks in the united states, which cost an estimated half a million dollars. that's because what was used for the attacks, bombs, guns, not as expensive. the most expensive purchase was lukely ak-47s on the black market.ikely ak-47s on the blac market. france announced late in the day that they are going to ban two massive marches that had been planned for the coming conference at the end of the month. there are concerns about large numbers of people being in the same place at the same time. there were supposed to be 10,000

activists in those march. critics are calling it a contradiction. there's been a lot of talk about not letting terrorists run your life, and to not do this march, they're saying is a contradiction to that. we're going to try to end tonight on a happier note. the eiffel tower once again lit up tonight in the colors of france, blue, white, and red. >> michelle, thank you so much. super long day for you. we greatly appreciate it. michelle caruso-cabrera in paris for us. last hour, i asked michelle -- or i commented it sounds like things aren't getting back to normal quite yet. i wonder if a better remark would be perhaps this is the new normal, and if so, what does that mean? >> i certainly hope that it's not the new normal. but any time we have a situation like this, i think people tend to have that panic reaction, as michelle was saying, canceling marches that were going on.

i think the best thing we can do is to embrace freedom and live the lives we should be living. i refuse to call anybody involved with that a mastermind. these people are purveyors of evil and they're dimwits and we shouldn't be giving them that kind of glory. >> also, we'll talk about how the u.s. and its allies can win the war against isis. we're keeping an eye against square's ipo. we'll find out if the results can force other start-ups to change their plan. you're watching cnbc.

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together, we're building a better california. welcome back. here are shares of keurig green mountain. they're up nearly 20% after their earnings. this has been a volatile and beaten down name. we've also got an earnings alert on l brands to get to. >> l brands, 55 cents adjusted versus the estimate of 52 cents. revenue ever so light. versus the expectation of 2.49

billion. guidance a bit light here coming in below expectations. we are looking at the stocks higher. keep in mind, this is a company that has been -- shares have been steadily rising. now about 13%. just last week, jp morgan downgrading the stock, citing valuation. there has been talk about whether the growth they're seeing in the lingerie market is already priced in, something to keep in mind here. up now 2% after hours. >> seema, thank you for now. seema modi. investors will get a strong reading on the health of the ipo market. it could happen any moment now. kayla tausche is here with what we're expecting. >> investors aren't exactly willing to put risk back on. sources telling me earlier today, advisers have been suggesting a price for the ipo below the $11 to $13 per share

range stated in square's most recent filing. that range itself was a conservative value. they were meant to bring those lucrative investors to the table to buy this stock. i'm hearing this as investors to feel comfortable with the deal. part of that is square specific. the ceo had the second job, and has a lot of competition. another part of that is just the fact that investors have not been rewarded for buying ipos this year, even the high profile one. about half of the ipos that have gone out, a third of the deals even priced below the range. the company, when it's on a call with its advisers could still decide it wants to price higher. that happens sometimes. back in 2011, executives were hell bent on a deal, but advisers had to talk them down to $29 a share because that was where the big investors wanted

to buy the deal. if square pushes back, i would be worried about what happens when stock trades tomorrow. it all depends on what the headline price is after the bell. >> and we're waiting for it. it's a great point. and we had a discussion a day or two ago, where one of our guests said the problem with square is that when it's not an exciting, high-flying stock, it still becomes part of the problem. investors all start to go wait a minute, if this isn't exciting, why am i getting it at all? >> twitter had a better third quarter than there would have been a little bit less of an overhang. he has two companies right now that have their own unique issues. >> we want to ask whether the results of square's ipo will have other tech start-ups rethinking their plans of going public. it's been a slow year compared to last year. by this time in 2014, we had already seen 252 ipos. we're up to just 150 so far. let's get the full report with rich peterson.

welcome to you. >> great to be here. >> so what's happened? what's changed? what's the biggest problem for the ipo market? >> the deals stink. its deals are showing more winners than losers. you look at many of the health care deals, which are the most active sector for ipos. probably two dozen or so, off by 20% or more. the market is not dead. about a dozen companies. tech ipos. the last tech ipo that priced under water, was priced back in may. so the deals have them better. >> is this all it's come down to? >> it seems like there's a sense that these are not must-have companies. i think the whole assembly line of ipos is humming.

>> you can see some of these companies are making a company like brewers slated to go public, and decided to do and m&a transaction, instead of dipping its toe into the market. the market really doesn't have the appetite. even for some of the well-growing companies. >> the private market is the early stage that an ipo might have once represented. maybe by the time they come public, you kind of know a lot of that -- >> the irony is now the ipo is described as a follow-on transaction. normally you only do a follow-on if the stock is higher than it was when it went public. it's sort of perverse to even call it that. one of the curious things is that investors who want to benefit from square's growth have a different way to play this. some firms are telling me they would prefer to lend money through square capital, which is going straight to square merchants to earn that return on the debt rather than to invest

in the stock itself. >> i think the problem we're seeing now is many of these so-called uniforms are being -- the values are being cut. we saw fidelity do that with snapchat. and many others. we look at fan duel and draft kings. i'm sure given what the new york attorney general has done, those will come lower. >> the problem is you're realizing there's not a there there. with fan duel and draft kings, if we decide these aren't going to be viable, that's the big problem for them. is this the case where we're getting the last dying gasp, if you will, some of these companies which really wanted to come and take the market? >> sounds a handful. i'll be curious to see if companies like uber and lift, airbnb, will take the plunge.

>> i guess if you have a property that's considered unique, maybe there's going to be a better reception. >> the match deal is unique also, in the fact that it's still going to be fully owned by iac. it's more of a way for iacs to account for the properties that it now considers its core properties. that is a highly coveted stock and we're waiting for that after the bell. >> and there's another one, too. potentially could be the dark horse because it's not getting the attention. >> got to leave it there. please update us as soon as this pricing happens. love your perspective. thank you, sir. let's get to seema modi with the market flash. >> here's an update to that story. one of the outperformers on a rumor that it got the interest of blackstone. reuters now reporting saying blackstone is not looking to invest in the debt of sun edison, so we are seeing shares moving lower. erasing the gains that it

initially saw in today's market session. back to you, kelly. >> yeah. under three bucks a share. the ama wants to put an end to prescription drug commercials on television. could their wish become a reality? now mercedes sales are red-hot, outpacing the rest of the auto market. the ceo of mercedes-benz usa joins us next.

mercedes has become king of

the u.s. luxury car market with sales topping 300,000 units this year. phil lebeau is out of the l.a. auto show. he's got the ceo of mercedes-benz usa, now in a first on cnbc interview. hi, phil. >> hi, kelly. i'm joined by the head of mercedes north america. i said, are we near the top of the market? and you're like, i don't know if we're near the top of the market, but this feels different than in the past. how is it different? >> markets were at a level we haven't seen since 2006. we're now coming into november, december. those are our two strongest months of the year. this will be a record year for us. we expect '16 to be even better than '15. this feels like we're not reaching a peak. >> not crunching to make these purchases. >> no, we're not. i've got lots of data that says we're doing this the right way. we're not doing 60-month leases. this is a normal 36-month lease. our portfolio actually dropped this year. these are people stepping up to great purchases, and there's still a lot of bent up demand in

the marketplace. >> let's talk about that as bob takes a look at what you just introduced. ironically, the luxury car market, not vehicle market, but car market, it's shrinking a little bit, isn't it? >> the general marketing because of suvs. >> right. if you look at where the growth is coming from, it's coming from trucks. truck portfolio is up 18% year over year. >> you've got a car here that will sell anywhere between 85 and 105, somewhere in that range, depending on the option. does that feel like rarefied air like it used to for some consumers, or do you say people can achieve that now and they're comfortable paying that? >> anything at a $100,000 price point is rarefied air.

our roadster is a fun car. that is not a car that you need to have, but for a clientele that wants that car, there's always going to be a segment for that. that doesn't mean they hang out in rarefied air. really open up our brand and make it affordable for many more people. >> steve cannon, you heard it there. i said to him, does this seem like we're popping up sales? he said oh no, that's not what we're seeing. >> and we heard that loud and clear. really appreciate it. time now for a cnbc news update. let's get over to sue herera. >> here's what's happening at this hour. a teacher at a jewish school in marseilles, france, was stabbed by three people professing support for the islamic state. he was stabbed in his arm and leg, but the injuries are not life-threatening. just moments ago, the u.s.

offering a $5 million reward for information on the location of ie the isis leader who has helped recruit for isis in turkey. john kerry speaking at the 30th annual overseas security briefing, proclaiming the u.s. can't be intimidated and the paris attacks will serve as a rallying point for the world. he also defended president obama's strategy against isis in syria and iraq. gop presidential candidate jeb bush calling for american troops on the ground in the middle east to destroy isis. he outlined his national security ideas at the citadel in south carolina. he did not specifically, however, say how many troops would be needed. 24-year-old raymond carter pleading guilty for setting fire to a cvs star during the baltimore riots back in april. he was sentenced to four years in prison and ordered to pay $500,000 in restitution. that's the news update. back to you. >> thank you, sue. up next, a top military expert

says it's simplistic thinking. square's ipo could price any moment now. we'll bring you all the breaking news as it happens. we're back in two. at the grocery store, even before they got 3% back on gas, all with no hoops to jump through, daniel, vandi, and sarah decided to use their bank americard cash rewards credit card to sweeten the holiday season. that's the spirit of rewarding connections. apply online or at a bank of america near you.

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here's a look at how we finished the day on wall street. 1.6% gain on the s&p 500, adding 33 points. the nasdaq was up 89 points. we had financials and health care doing quite well. telecomms, utilities lagged. france still on high alert after the terror attacks there last friday. france bombing isis again overnight. lieutenant colonel anthony shaffer. senior fellow at the london center for policy research. it includes undercover intelligence work in afghanistan. thank you so much for joining us. >> thanks for having me. >> you had a guest last hour who was making the case for sending more soldiers to syria. as i understand it, you think that's simplistic thinking. why? >> it's two-dimensional. we've seen the movie. we send folks in, we win a batting, it goes to chaos again. it's time we work with a regional allies for them to

invest in long-term security. all the republican candidates seem to jump on the bandwagon. let's put the band back together and go kick butt. we can do that. but what next? one of my close friends and mentors used to get asked by president clinton, can you do this military action? he was saying central command would say we can do that, but what next? it's always a what next. >> there's a strong case to be made that if those regional partners were going to do anything, they would have started to step up and do something. >> i disagree. we did not organize him to do that. we have not actually laid the ground work and shown the leadership to put together a confidence building to bring them in. jordan, egypt, saudi arabia all have militaries which we could draw from to put together the sport. the question now becomes the

trust. a lot of these nations don't trust. president obama has not shown the leadership he should in the current circumstance. we don't need 100,000 troops. we need 20,000 with good leadership. mostly arab that can go in and do the job. isis is 60,000 troops. should we choose to do it in a way that enables and empowers the arab allies rather than allows us to push them along. we need to be there side by side. we need to have some military forces there. but this could be done through an arab nato, which is what we put forth as a solution. >> thank you for your service. i did want to ask you about the role of special forces and maybe black ops to infiltrate isis and get them from the inside-out. is that the type of strategy that you're advocating bringing coalition in. it has to be one of the first things we do. to defeat a terrorist network, you must penetrate the terrorist network. you do that through covert

operations, penetrations, as well as grabbing people and interrogating them. and then to be totally blunt, to go kill the leadership with impunity. special operations really do that. the bin laden raid is an example of what we can do. we do a lot of these things, we never talk about it. every one you see, probably three or four others we don't talk about. we take away the ability to create financial centers of gravity, which they've been doing. >> let me ask you about something that was mentioned by i think chris matthews, but i'm sure it's come up before. he said if we want people understanding what's taking place, the very people who are trying to flee, the syrians themselves, what about some larger scale effort to turn those would-be refugees into these ground troops? >> we want to. i've actually met with yazidi leaders, with the syrian leaders, and many of the kurds who are already fighting. we have people who have been misplaced who want to go back. i met with several members of the congress to include john

mccain and ed royce on the house. they want to retake their land. this is akin to the free french going back into france after world war ii. we need to look at how we won wars rather than how we've lost wars. this is one of the ways we should step up and do that very thing. >> before we let you go, just to be clear, what you're saying isn't necessarily that putting troops in is a bad idea. you're saying it sounds like it's a good idea, just depends on who those troops are. >> exactly, absolutely. >> does that mean that you're saying a purely air strike approach is one that you don't think will work? >> air strikes by themselves will not work. it has not worked for the past year. a combination of boots on the ground. a combination of coalition boots on the ground is the way to go forward. as lindsey graham said, put 100,000 forces in there. it doesn't work. the moment we show up, we become the targets. we have to avoid it this time and again, have them, the arabs invested in their own long-term security in an arab nato.

>> lieutenant colonel anthony, thank you for your perspective on this. we'll bring you square's ipo results as soon as as it happens. could the days of prescription drug ads coming to an end? that's next. vo: know you have a dedicated advisor and team who understand where you come from. we didn't really have anything, you know. but, we made do. vo: know you can craft an investment plan as strong as your values. al, how you doing. hey, mr. hamilton. vo: know that together you can establish a meaningful legacy. with the guidance and support of your dedicated pnc wealth management team. today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care,

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every commercial break. there might have been one now, i don't know. that could soon come to an end if the american medical association has its way. >> the ama is calling for a ban on direct-to-consumer drug ads. there is some doubt as to whether this will actually go anywhere and these calls for bans have existed before. but this is all part of this continuing drive to try to bring down the cost of pharmaceuticals. so what the ama is saying is this encourages patients to ask for more expensive drugs if they didn't have these ads. basically, instead of having less costly alternatives, they ask for these branded drugs. the drug industry spends about $4.5 billion every year on these direct to consumer ads and the u.s. and new zealand are really the only kind of countries that allow this kind of advertising. so the industry is saying these things are good for consumers. it can educate them about different conditions that they

may have. it encourages more of a dialogue with their doctors. hillary clinton has also weighed in on this in her platform to bring down the cost of drugs, saying she would home in on drug advertising as well. people i'm speaking with don't expect anything to change. >> what's the evidence for either the marketing spending increase, or the asking people are doing for the brand names? >> i think if you want to be very cold-blooded economist about it, you say these are profit-seeking companies. they would not spend $4.5 billion on advertising if it did not in some way filter back into sales. the question is, how does it do this? does it enlarge the population for people being treated for certain conditions? this is the push-pull on that. kind of interesting. isn't it the doctor's job to say you don't actually need that brand name drug? >> you would hope your doctor would be aware of the best possible treatment for you. so the argument that this is telling patients about something

they might not have heard of, some people take issue with that. >> but i think we want people to be advocates for their own health and we want to get them as much information as possible. >> let me throw this out there. viagra and cialis, it's almost like a fan duel and draft kings thing. sit really just who can get the most attention share? >> and how much are you really retaining from a commercial like that? are they really telling you about the differences between the drug scientifically? >> you have the discussion with your doctor. you do research online about it. it's awareness, just like anything else. why is the ama, why is the government, why is everyone else getting in the middle of this? we're supposed to live in a free country with a free market economy. mind your own business. >> free pharma speech, carol? >> yes. >> the catalyst does seem to be concern over drug prices. so this is a really interesting fallout from that.

it goes back to the central question, will it actually do anything about that? >> that's a great question. and people have wondered whether hillary clinton's proposals, including this and other things will actually do anything about the cost of pharmaceuticals. the ama also advocates for just an awareness campaign, cheaper alternative, i think. >> marketing! >> they're advocating for marketing instead of marketing. >> the other part of it too is we get confused a little bit sometimes with the discussion about prices versus how much is spent. so if you're consuming more of something, if there are more people getting treated, whether it's correctly or not, that increases the total spend on medicine. >> it's not like these companies are going to take the marketing dollars and do something else. i would rather have them educate the consumer than conflict the doctors to be pushing one versus the other. i'd rather the consumer have the information. >> we have to go, but that's also a $4.5 billion hole potentially. is there any reason that could be a problem for advertisers? if that suddenly goes away?

>> if it went away, it absolutely could. >> think about the liquor ban, which was a collective agreement kind of thing. it wasn't a government thing. you can't advertise on liquor on television, it was just one of these things. >> something else will come along and fill the hole. for now, meg, thank you. we appreciate it. could retailers be shopping for rivals this off-season? some are trading at such low levels, we're starting to wonder. gap will report earnings, and we'll get you instant analysis of those numbers. questions here. sk look for risks there. and search for opportunity everywhere. global markets may be uncertain. but you can feel confident in our investment experience... ... around the world. call a t. rowe price investment specialist, or your advisor... ...and see how we can help you find global opportunity. t. rowe price. invest with confidence.

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welcome back. breaking news out of the treasury department. what is happening? >> hi, kelly. we have a report from the "wall street journal" within the past couple of minutes. it is not confirmed by cnbc. but i want to give you what they are reporting right now. the treasury department plans a tax inversion rule later this week. the u.s. treasury department will release targeted guidance dined to re-designed to reduce those companies that move tax addresses overseas. jacob lew informed lawmakers in a letter on wednesday. the letter of the journal provides no details on what the department will do but the government said it was examining

earnings stripping, a practice by which companies load up u.s. operations with deductions and effectively push profits to low tax countries. and's know, kelly, this is an ongoing dispute in corporate america and here in washington of what the government should do, if anything, about the corporate tax inversions in which companies buy smaller enti entities in tax havens and invert that on paper any way, the headquarters of the company is in a tax avoidance company or a low tax country rather than here in the united states. and i'm just being told in my ear that the treasury is confirming this report in the "wall street journal" as of right now. back to you. >> thank you. and let's look at allergan, just as an example of a company moving on this. the treasury has tried this before. this is another step further. it appears if there are tax rules outlawing this, that is a quite different step than what we've seen thus far. >> i'm not sure what country we live in any more. >> not ireland. >> certainly not.

and i think the idea, and we're hearing this from a lot of the candidates, that there are a number of people trying to make the united states more friendly place to do business. if you want to continue to grow the economy, it seems that would be logical, find ways to get the cash repatriated from overseas and get more companies based here instead of trying to do this. i just don't like this as a tactic. >> the reason why allergan is moving is because pfizer has made a bid for -- to move the domestic, or the address, to overseas. >> allergan is domiciled in ireland for legal purposes. >> and if these rules come out, what happens. and that is why the shares are moving. >> allergan had some premium in there because it was attractive for somebody to try and do this. i think tax inversions were basically a work-around. you had minimum standards that a company had to meet in order to redomicile overseas or capture

overseas profits. the reason you have people storing overseas is because of the corporate rate tax deferential. and all of it is related to the fact that our taxes are higher than everywhere else. >> we tried this in congress. trying to do a one-time tax holiday. but that wouldn't solve it. but it talks about the territorial tax system. and different moves the g-20 has looked at. but the treasury keeping a big step. we'll keep you posted. don't go anywhere. we could get ipo pricing right after the break. and on "fast money," peter schiff will explain why he thinks the fed will not raise rates in december. orking togeth 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.

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welcome back. let's check on l brands for you. the stock trading slightly higher after reporting third quarter earnings. target got hit hard on the heels of its results. the shares were sent lower because of slower growth in online sales and margin pressures to the tune of 4.5%. elsewhere in the retail space, many names have been beaten down this year. look at macy's, gap and kohl's. down 30 to 40%. and could we see more megainfluence across this state. is this finally the moment. >> you would think so.

in the past when companies were down to these valuations, four or five times cash flow or ten times earnings, you would see private equities sniffing around. retailers have been enticing for lbo buyouts because they have real estate and you think you could improve margins. but this time around, people are too concerned, he think about the -- i think about the structural retail and it is down. >> and you make the point about gap going private. what good would it do. >> they have a big founding family and they have three concepts, banana republic, gap and old navy. they have to be in shrink mode. that is better done in private hands without the pressures of meeting the numbers. also it could be finance, you would think in this environment, it still has strong cash flow. >> retailers make a very good lbo candidate, particularly the ones that have no debt. some of them have higher dividends. and as you said, many are

trading at five, six times cash flow. and the kind of financing in today's market is pretty substantial. i'll throw another name into your list. dsw is another name. they are a specific private equity firm that focus on the space and that is part of the issue. you either love it or hate it as an investor. >> what is the benefit of taking any one of these private as opposed to drum up megaconsolidation across the space. >> i don't think wall street wants to see a big department store saying we want to build a bigger empire. they don't have the financials to do it. >> they take it and flip it back down. >> and that is what the bio firms do. and you could check out more on cnbc. and better than expected earnings, sales force talking to jim cramer after the quarter. also had choice words for unicorns everywhere. >> the unicorn companies, jim, they staying private way too

long. and i have friends of mine that consider ceos and i will tell you the same thing i tell them, get out into the public markets. this is the opportunity to rationalize your valuation. let the market decide your valuation. instead of maximizing your valuation, let the market decide. >> on that note, no prices yet from square. but more on the interview tonight on "mad money." straight over to "fast money." "fast money" starts right now. live from the nasdaq market site overlooking time square. i'm moyle. your traders are pete, steve, brian kelly and guy adami. tonight on "fast," big earnings and big moves. green mountain soaring. we've monitoring conference call and bring you the headlines as they break. and we are awaiting the pricing of two high-profile ipos. match group and square. and they could set the tone and tenor for tomorrow. and later, apple could the