fund investor. great check. great to have you with us. thank you for watching "power lunch". >> closing bell starts right now. hi, everybody welcome to the closing bell. i'm kelly evans at the new york stock exchange. >> i'll bill griffith. we'll look at whether the momentum can continue into fourth quarter which performs typically pretty well historically speaking and then it has the move october included in it. >> what's different today versus yesterday. those concerns about deutsche bank. the stock rebounding on hopes and rumors the department of justice won't push for a $14 billion settlement. we'll give the facts on what's

happening. >> best performance today for deutsche bank since 2011. best in five years. meanwhile hijacking security cameras and other so-called smart devices. we got the details on several internet attacks own the fallout for the internet of things, one of the hottest trends in technology right now. but it may have a very bad achilles heel which we'll discuss. >> nutanix can become a household name. could it be the best performing ipo of the year. it's up 124% adding almost $20 to trade above $35 as we head into the close and see if this paves the way for more ipos to come. >> somebody left an awful lot of money on the table with that ipo. let's start with this rally. bob pisani has that story. >> i'm in a good mood because the quarter is ending on a decent note overall. take a look at the s&p 500. s&p is up 3.5%.

we had a rally after brexit after a couple days of drops. the only drop we saw was the comments a few weeks ago where he thought it was a good typical to raise rates. we bounced back after that here. big tech was the big winner. look at the sector winners. semiconductor. all those stocks up double digits. steel stocks had a good quarter. expiration production, oil and garks e and p companies had good quarter. even banks did despite concerns about continuing low interest rates. who was the loser? gold miners after being winners all throughout the year sold off late in the quarter. traders loved the fourth quarter. why do they? historically the numbers are good. we're heading into another strong period of the year. so s&p is up 81% of the time in the fourth quarter. since 1990. look at the s&p 500 up 4.5% on

average, consumer staples and health care all doing well. finally what will move the markets in q4. two big volatility triggers. first the election and particularly the possibility of a trump victory. right now the markets seem fixed on the idea that clinton wins and house remains republican but if trump wins that will certainly be more volatility. the other is that december fomc meeting. remember we were positioned for volatility from the fomc meeting this september and that didn't happen either. so a lot of betts on volatility have not paid off so far this year. guys, back to you. deutsche bank uncertainty weighing on investors. american depository receipts rebounding from yesterday's all time lows. they are up 15%. >> wilfred frost has what's been driving that move and michelle caruso-cabrera looks at whether deutsche bank could be the next lehman brothers. that was the fear yesterday. >> so what has driven that rebound? first and foremost because

overnight many analysts highlighted how strong deutsche's liquidity position is. they have much more cash to meet any short term calls. the conversation this morning thus moved on forks cussed on the true reason shares are down so sharply this year and that's capital concerns. and today we've had a story of potential major relief in that area, rumors that the doj is ready to settle its outstanding fine with deutsche soon and at a lower number than fear. now every single source i've tried to confirm this with at the bank, at the doj, in the financial world has not been able to confirm it. so it is just a rumor. but what i will say is this. the stress that deutsche bank has caused globally in the last month, week and few days, and the way the market has bought

the rumor today of a settlement will only increase the pressure on both deutsche bank and doj to find a quick settlement. so i conclude like this. $5.4 billion itself is not the number but the timeline for settlement is shorter than it was a few days ago. >> stay there. we'll talk about it more in just a moment. more on those liquidity concerns that had some wondering whether deutsche bank could be the next lehman brothers. michelle caruso-cabrera, there are plenty of people who feel those fears were unwarranted. >> absolutely right. deutsche bank is no lehman brothers. it's a much bigger bank. and it is a much more diversified bank. there are two key things about it. it's got a lot more cash than lehman or bear ever did and it also has the backing of the central bank, the ecb, and lehman did not have those. so just like will said at the top, liquidity, worrying about funding, would it survive through night. you don't have to worry about that with deutsche bank because

it has a backstop and they have two months worth of funding. remember back during lehman and bear we were talk about one night's worth of funding. so that's significantly different. instead we're waiting to see just how much capital deutsche bank might have to raise and that all depends on the size of the fine that the doj is going to bring. if it's a very big fine it raises the chance that they will have to raise more capital sooner. that could hurt shareholders a lot or a little depending on what size it is. if it's really huge, you know, the numbers are unknowable at this point but still when you do an analysis of the balance sheet it's not considered to be something that's going to lead to a full collapse of the bank by any stretch of the imagination. even using all these words a lot analysts would say it's just absolutely crazy. this is nowhere near comparable

to what a lehman or a bear was. >> would you compare to it a monte depache. >> no that was small and not systemic. deutsche bank is systemic. monte has similar issues but we don't spend day in and day out about it and won't move the u.s. markets very much. deutsche bank is systemic and that's why we talk so much more about it. >> we were talking yesterday how the deutsche bank story is not one of liquidity it's one of profitability and they struggled at that bank. they are truly a bank that's suffering from the monetary policy that we've seen globally because of the lack of an interest rate spread here. >> absolutely, bill. i think today's share price move of 15% needs to be put into perspective. this is a rebound after 6% fall yesterday and a 15% fall year-to-date. we're not by any means saying this bank is back to rip roaring profitability. just perhaps the capital, the need for capital won't be quite

as bad as predicted. low interest rate absolutely the real killer for that profitability this year. but also that aspect of slightly slipping market share. that's not a big issue for the prime brokerage business as we feared yesterday but in the crucial area of their prime brokerage the fixed interest part their market share has slipped 12% to 10.5% roughly over the last six months. that's something to watch going forward over the next six to 12 months but not something to fear. >> what about a ratings downgrade? the kinds of things at that time whether it's hedge funds pulling capital or deutsche having a lower rating and having to post more margin those things could exacerbate its liquidity, right? >> it could. clearly they have suffered some of those areas over the last 12 to 18 months anyway. i think all of this does add for an impetus to get a deal with the doj, and we don't know what

the doj is thinking, but one can only presume that they don't want to be reason to bring down a major nation's bank and that will add on them and the deutsche side to get to a deal quite soon. i do think it's interesting that the market has moved on. we're very much focused on capital today the issue that's making the bank rally is potential improvement on that capital situation. yesterday's issue was something about liquidity. and the market has moved on from that concern. >> michele i was going ask you what you thought. how this will affect the negotiations with the doj as they try to couple with a number. whether it's that $14 billion or something much lower, bearing in mind the fragile condition or at least the perceived fragile condition that deutsche bank seems to be in right now. >> so a couple of things to consider. a lot of people remember the negotiation with bp. that was related to violating sanctions. that's a different set of

circumstances right. a lot of people, a lot of banks were involved in the mortgage situation let's call it and while you may want to make being stupid, you know, illegal it's not at this point. a lot of banks did it so there's probably leeway to say it can come down. additionally does the u.s. government want to be the one that does something to a german bank as long as it is and cause havoc in the european economy? unlikely. they will work on some kind of number that would be smaller. maybe they are trying to calculate how much can we punish them for this without causing so much stress in the rest of the world. >> all right. thanks, folks. see you guys later. thank you. let's get our closing bell exchange for the last trading day of the quarte

so, john, let's see the dow going into the day up 5.25%. s&p up 6.25%. same thing for the nasdaq. not too bad of a quarter. >> not too bad. people should be happy with the results. this is a conversation we've had over time what market participants do at the end of the month and quarter. we knew there would be window dressing coming into this week. the deutsche bank headlines threw things off a little bit. once we get through this week, next week we got a pretty good economic calendar that's there. the jobs numbers come back into play and then just going punt right down the road. next thing is election and then fomc. i think getting into this last quarter historically october has been a rocky month and it may be rocky but i think the bigger headlines that are out there will help support this market and continue to move higher. another week or so we start earning season and that will help.

>> how are you guys seeing this deutsche bank issue play out? >> you know the weakest part of europe has been the financials. they are down about 12% year-to-date. european equity markets have been flat in 2016. but in the third quarter, european stocks are actually up 7%. european small caps up 10%. we see a little bit of a turning of the corner in europe. they are getting faster gdp growth in the eurozone than we're getting in the united states right now. we're starting to see a pick up in earnings per share growth among european small caps. to us that's very encouraging. big investors should look outside of the united states as they think about rebalancing back at the end of the year. >> rick, another quarter, still no rate increase by the fed in this time. long yields down. the dollar index down 3.25%. in that time what your guys talking about as we head into the final quarter of the year? >> well, i think they are continuing to look towards the markets to reflect some of the

positives that are associated with the easy money that continues. most traders on this floor think the only impediment to a solid performance by the stock market would be the potential for the fed to enter into the game. they've talked quite extensively about something confusing them. that is look at the federal reserve. what was one of the reasons why they didn't raise in july? it was brexit, was it not, bill? >> that would be one of the reasons. >> so you have the department of justice throwing a fine that eats up most of the capitalization of deutsche bank not even considering the implications of the globe there. so it seems rather illogical along with the other big conversation. let's face it, deutsche bank was big this week. the notion that just because they are not going to be going belly up, just because they have, you know, the 12.5% set aside versus 7.25 of lehman everything is fine they can make it for how many months.

what's really changed? okay. do they have a profitable outlook on the future? will they grow business or are p.m. going to continue to look at the risks on the customer side, on the prime brokerage side. this is what happens every time we have an issue. real reform? no. we're sweeping it under the rug. bit the big picture whether it's italy, post-uk, post-brexit uk this is what traders are looking at. it's a tough business for them because they are not trading what they are worried about. they are basically trading other things and it shows the constant list of incongrew endcies that seem to follow the mark. >> bringing it back home you mentioned you think investors should look outside of this country. what sectors see most interest. >> sounds counter intuitive i like japan. japan is starting to turn the corner in the third quarter. i think to make any kind of call

on emerging markets you have to know when the election is. i think trump victory would be bad in the short term for em but the key next year is what happens on fiscal policy. what does paul ryan pass and what can he pass. >> 2174 on the s&p. what kind of parameters are you looking at? >> we're stuck back at these levels that we were back in the summer time. 2150 on the bottom, 2185 on the top. every time we step outside of that it seems to come right back in. i continue to look at that. once we get to the upside we feed some conviction to stay outside of 2185. >> gentlemen, thank you. have a good weekend. appreciate your thoughts. >> 45 minutes to go. we're seeing a broad base rally, rebound is more appropriate. mirror image of what we saw yesterday. 200 point down. s&p is up 23 naends is up 55. >> main street gut check. two investors tell us if

european bank worries and the presidential election are keeping them away from these markets. that's coming up in just a moment. >> up next an army of cameras and dvrs, digital video recorders have been hacked to launch internet attacks. what you can do to protect yourself. you're watching cnbc first in business word wide. upgrade your phone system and learn how you could save at vonage.com/business narrator:kubo: est place come on, this way.e... narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones

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a rally day for be the markets to finish up the third quarter as we head towards the fourth quarter. look at the dow, the heat map. all 30 stocks in the dow are in the green today. walmart among the gainers. i saw it at the top of the group. guggenheim securities. guggenheim believes in walmart's fulfillment centers. key bank says walmart store experience and e commerce expenditures will help drive sustainable market share gains. >> the nasdaq is getting ready to lock in a solid quarter itself. bertha coombs has a look at some of the stand outs. >> just tremendous three months

of gains here for the nasdaq. september sensational up 2% while the s&p and the dow are flat for the month. and it's really been powered by technology. the nasdaq right now son pace to have its best quarter gains since 2013. 2013. and it's really been led by big cap tech in particular the chip sector. take a look at the chip index ending the month here on a new high, a 16 year high with four straight quarters of gains, a lot of that coming because of chatter about consolidation in this space. qualcomm wants to pay about $30 billion might pay more as it hit a new high today. then, of course, the really big mega caps. apple's resurgence this quarter that has really helped propel

things and while a couple of years ago we talked about than, it's amazon, apple, facebook, microsoft those four led to major gains here in the nasdaq this quarter and they are all firing on all systems with facebook and amazon putting in historic highs this quarter and all of them up double digits for the quarter. so it's really been quite a powerful technology rally here. back to you. >> okay, bertha, thanks. so here's something else to help you sleep well at night. as if e-mail hacking wasn't scary enough now hackers are infiltrating everything from security cameras to dvrs all of those internet of things things. a record breaking distributed denial of service or ddos hit was delivered by more than 145,000 cameras, essentially the attackers flooded the bandwidth

of the targeted system and several websites including cyber security blog went dark as a result. >> pulls into question the vulnerability of internet like smart home gadgets. joining us now president of computer and network security company. welcome. >> thanks for having me. >> what was your reaction to this news? did you know that dvrs were so readily hackable? >> yeah. absolutely. these internet of things device, dvrs, cameras, phones, refrigerator, toasters, all these type of internet type devices are actually computers. unlike traditional computers these things are developed and produced for pocket change. so there's really a limited amount of security functionality that comes with them. >> why aren't they more secure? >> well as i said, they are really being produced for pocket

change. >> i understand. if they are so readily accessible to hackers why aren't they more secure. >> at the foundation it's because people don't think of them and corporations don't think of these devices as computer systems when, in fact, they are. so frequently -- >> hackers are thinking of them that way. >> absolutely. that's why we're seeing events as we've seen this week unfold where really it's an opening of pandora's box where the devices in your physical environment can be used to generate attacks into your technology environment. by the way it works vice versa. people can use computers from far away systems to attack your internet of things device. the locks on your doors. your hbc and air conditioning system. your refrigeration systems. can do all sorts of scary things in this new world. >> this is just dandy. so what do i do? i put some tape over the computer camera.

i guess you're supposed to do that nowadays. do i unplug the dvr and throw it out the window and don't buy anything that's ever connected to anything. >> what we shouldn't do is panic. we need to take a much more mature approach and think about the risk of what we're actually doing. if you think about the internet of devices infrastructure, as computer systems, what you have to do is apply the same type of discipline to it. you have to be able to provide for the identity and authentication of these devices. limit the access and the control that they have into your environment. and you also want to monitor them differently. so our organizations and others are developing technologies with next generation monitoring capability to look not only at your traditional environment but also at what's happening in the internest things environments as those two worlds emerge. >> just to put this in plain speak you're telling me that there will soon be a way with your technology or somebody's

that i can do what, open an app and see if anybody is hacking my dvr? >> right. you're opening an app and make being sure your dvr only has access to what in your computing environment you want it to have access to and then behaving as you expect a dvr to behave and not attacking somebody else's website or stealing information from your own computer systems. >> didn't even think about the roomba until i saw it there. >> be suspicious. >> thank you. you're joining us today. by the way cyber security will be foin cuss at our upcoming cambridge cyber summit in partnership with m.i.t. and the aspen institute. we'll talk to top names in government, academia and others.

>> this is so troubling. defensele defenseless. >> we are. we are. let's sleep well tonight. >> all right. >> 35 minutes left in the trading session here. pretty good rally. come back from yesterday's sell off a gain of 214 points for the dow as we close out the third quarter. >> up next cloud executing unicorn making a run at the coveted title of best ipo of the year. we'll get a report. >> also ahead two main street investors like you folks will tell us how worried they are about election b-fed b-europe's banking woes and all those things we're adding to the goes of the day and whether they are planning to sit out in the final quarter in the markets. coming up after this. [child speaking indistinctly]

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. the culture of start ups, the culture of technology, the culture of entrepreneurship and innovation and venture capital spreading worldwide and can you now go beyond the ground and probably 30 or 40 cities around the world and see a very interesting dynamic. start ups including a friend of mine has spent quite a bit of time in tehran with the sanctions coming off and he's been over there quite a bit. actually it turns out a thriving hi-tech entrepreneur scene in tehran. and they are all fired up and can't wait for the embargo and trade restrictions to be lifted so they can expand. >> those of you listening on

satellite radio that was marc andreessen talking about this trend towards saturday ups. very interesting what's going on in tehran. >> the question is scaleability. access to capital longer term. there's going to be an initial rush where people say listen they have one of the biggest populations middle class income. but it's still unclear how they can do business in the global banking system. but challenges that maybe those entrepreneurs can help them overcome. >> more evidence that kelly evans is cutting eej. marc andreessen cut the cord with facebook. >> he feels 50 pounds lighter. that's how it feels. >> you didn't need to lose that. de. cloud executing company nuvanix soaring on its first day of trading on the nasdaq. what does it mean for the tech ipo pipeline.

>> let's ask josh lipton who joins us from san francisco with more. >> kelly a lot of investors might be thinking what tech ipo pipeline? so far this year there have been just been five venture backed ipos for u.s. tech companies, appti oh, everbridge, the trade desk, twili and now nu the afternoon nix. $59 billion was committed last year alone. start ups could have delayed their ipos because companies that did go public last year like fit bit, first data and lending club disappointed investors. >> one of the sayings we like to use if you run a fruit stand on the side of the road and everybody for two years go home and the fruit goes bad you don't sell a lot of fruit. so a lot of the ipo buyers tended to buy larger names like facebook, apple, google where

they could make money with less risk. >> but vcs now expect more tech start ups to take that public market plunge. more recent ipos like twilio and nutanix received such warm welcome. coupa seven-day forecast ware sells a cloud base system that helps business manage their spending. matthew howard of northwest venture partners say more start ups are preparing for a public debut. in every board meeting he tells me buzz words are operating leverage. late stage start ups are creating better business models. and can hopefully please those public market investors. guys, back to you. >> we'll take operating leverage over financial leverage any day of the week. time now for cnbc news

update. >> here's what's happening. the french military says its jets carried out their first operation against isis from the charles de gaulle aircraft carrier. first since the ship's latest deployment. declined to give any further details. the britain based syrian observatory for human rights said a year of russian air strikes in syria have killed 9,000 people, displaced tens of thousands of others and caused widespread destruction. the dead include 3800 civilian, among them 900 children. american airlines making a big technology change this weekend and hoping they pull it off so well passengers won't notice. the airline is switching to a single flight operating system instead of running three separate systems. keep your fingers crossed. amazon is hoping some universities start getting chatty with alexa. they are offing an award for college students who develop

technology to make it more natural talking to with alexa. the goal is to built a social bot on alexa that will converse with people on popular topics and news events. kelly yesterday when you were talking about will robots replace us? >> again. >> there we go. >> who is generating the content for alexa. >> there's a point. they want this social bot to carry on a coherent conversation for 20 minutes with somebody. i don't know any humans can do that. >> my father can have a 0 minute conversation with anybody, maybe 30. >> see you in an hour. >> look at this, 26 minutes. left in the quarter. the dow up a healthy 209 points. leading trader will tell us what he's watching in the close on this final session of the month. >> could a slow down in auto sales be blamed for today's weak consumer spending number.

phil lebeau will shed some light on this one coming up.

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director of institutional sales. big bounce back today almost the mirror image of what we saw yesterday as we close out the quarter. what does that tell you >> flip side of yesterday. it was deutsche bank. when we were on set yesterday at the 4:00 show your show we were talking about it, if they are playing that game of chicken where they want to negotiate a lower fine from the doj it could last a little bit longer, just to see if they can get a better number from the doj. as far as i know there's nothing carved in stone but a hell of a lot less than 14 billion. so ultimately they won't get bailed out. >> what do you mean bailed out not literally. >> not literally but this drop does have a conclusion. >> is it over? >> i don't think it's over. it will always be hanging out there in some way, shape or form. >> what else? it was interesting how well tech did. four of the five worst performing sectors were the yielding ones. should people start looking back

at those trades now? >> if you look what's performing today and what's not you see the financials for obvious reasons pup see energy is there as well. i think what next would be, we're still going take our lead from crude. whichever way crude goes that's the way the market will go. still be perceived as global growth even if it's wrong. global growth has been sluggish. i don't think it's there. it's anemic. >> and atlanta fed marking down it's own gdp forecast. >> 2170 in the s&p cash watch that for your month level. we're closing out the month, closing out the quarter we're right there. >> thank you, sir. 2170 writing that number down. thank you. let's head to the close with 20 minutes left. dow up 204 points. s&p up 22. now at 2173. up next with this being the end of the month it's closing bell's time to take the pulse of the main street investor like you folks. our retail investor roundtable

is coming up next and watch out warren buffett. janet yellen may be replacing you as the 800 pound investor. fed chair opening up the possibility of the u.s. central bank using funds to invest in the stock market. look at the possibility of such a move coming up. narrator: the best place to find adventure... kubo: come on, this way. narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you.

welcome back. we have a rally today. the flip side, the dow dropped 200. now up 214. a lot has to do with the trading of deutsche bank which has reversed from its losses yesterday to surge to 15% today. other factors too. there was consumer sentiment which inched up. pretty strong. that comes on the back of the strong consumer confidence data. consumer spending wasn't so firm. fed's preferred inflation gauge 1.7%. so some other factors moving markets. >> all things we're talking about here at the end of the month, end of the quarter. time to check in on main street investors in this month's edition of our retail investor round table. we want to ask if they are concerned about the current market environment especially deutsche bank's impact on their investment decisions.

joining are wayne smauls an engineer at the health and human services department along with jackie cumming, a sales executive at a global data company. welcome to you both wayne. you worried about deutsche bank? you trading. >> it no i'm not worried about deutsche bank. i'm not trading it. i tend to keep a long term perspective on stocks that i buy and for any other retail investor to take advantage of any big pullbacks in the market because of this. because in the end that doesn't really impact your stock if you are well versed in what your company does and you just stick around for the long term. >> jackie, what about you? do you invest in any of the banks? does any of this bother you? do you have memories of 2008 and what could happen? is that all part of your thinking right now? >> well, certainly this does bring back 2008 and i think since about 2008 i really have been kind of turned off by the

big banks, what's happening with deutsche bank is quite interesting, and really interesting day today. but i'm not doing anything different. i really don't have a lot of exposure to the financials and big banks. so i'm not doing anything different just being patient. sometimes there's a little bit of exaggerated response from the market from things like this and i would just try to take advantage of it. >> we have some of your positions here. they include berkshire hathaway b shares, apple and fax said. apple is an interesting one. now been on a winning streak. is that a long term holding for you? >> oh, absolutely. i have owned apple probably since about 2007 and it has performed very well. very strong well run company. and i love the fact they started paying a dividend a few years ago. dividends are important to me in terms of -- it's just so indicative of other strengths of

the company. so i watched it very closely over the years and they are so innovative. you know most people aren't really concerned about the cost of apple products they just know they are like the best innovator in that space and i don't see them slowing down any time soon. so they are one of my top holdings. >> wayne, in your previous appearances we talked about you investing in apple. you have an interest in the internet of thing. we were talking about that and how hackers are taking advantage of some of the devices in our homes for hacking purposes remotely. does that give you pause to invest in that sector >> that's a big factor to take into consideration. the hackers can definitely pose a security risk in homes or in cars or in airplanes and as well as can also have your personal identity compromised by that. but i think that a gradual slow roll out of this, there will be bumps along the way but in the end that risk will decrease as

more advanced security analysis, technology becomes integrated. >> wayne, what are some of your other ideas here as we head into the fourth quarter. >> excuse me, i didn't hear you. >> what are some of your other ideas or positions here that you like as we head into the fourth quarter? >> i think that looking at the internet of things and buying stocks in companies like mxpi, apple, are a smart way to go. for the long run. i've own nxpi for the last four or five months. also it was at that leverage buy so you can imagine my delike right now with the last 24 hours as i've seen an uptick and increase 15% on that buy alone. >> did you buy that expecting something to happen or just like the fundamentals? >> i like fundamentals. i bought it before several years ago when it was around $15 a share. i bought it again because i knew

sooner or later somebody would look to ackwiert. when i looked at the closing price yesterday i started dancing. >> how much leverage are you using now relative to the past? >> i maxed out on leverage on nxpi. >> what's the kind of leverage you're putting on when you're trading? >> i have 30% cash and the rest of it is all leveraged or margin loans. so bulk of the buy is margin loan. >> jackie, are you using leverage too with your investments here? >> no, not at all. i do not use leverage when i invest. the bulk of my investments are with my cho401(k) but i love my portfolio with individual stocks. there's no leverage. i just don't invest with borrowed money. >> there you go. >> two different philosophies.

>> good to see you again. about 12 minutes, 11 minutes to go as we head into the close. dow super199 points. nasdaq 21. >> and we get market acronym of the week and it involves europe, the u.s. and gold. how nice. after this. you know what, guys? there's a lot of tree branches and dry brush over here. we should probably move the bonfire over there.

[smokey whistling a tune] i'm guessing smokey liked that idea.

>> hello there. we got eight minutes left in the trading session with a gain of 208 points on the dow jones industrial average. joining us our friend, independent investment consultant. we're closing out a quarter. dow up 5%, 6%, same thing for the nasdaq and s&p. >> i want to wish everybody a happy new year. it's 5777 in the jewish calendar. and this tie you've seen the purple ties the last few weeks. this is from kinkade school in western texas where my grand daughter and grandson go to school. the ryder cup has started today

end chasska, minnesota. ryder might be a good thing to bring together. number one is rebounding oil. oil is up 8% for the week. 7% for month. and 29% for the year. so that meeting in algeria we talked about for weeks on end has had some effect. >> why? >> why is yellen agreeable? not accommodating but agreeable. she would even entertain new things such as buying stocks and etfs. >> you think that's a good thing? i don't want to derail you. >> i'm not crazy about it. all of this has not really done what it should be. we need structural reform. d is the dollar is to the soft side with expectation of

interest rates staying low. that helps earnings and exports and helps the oil price. e is two things. e is earnings and earns seem to want to pick up in the fourth quarter. if that's the case that will give a little bit of on theic and moxy to the market. the other e is election outcome. the market could swing as the polls swing between now and november the 8th, tuesday, november the 8th. and the r, the r is risk-off in europe. i was very heart skrend to see there was a rebound today in some of the banks here. so that you don't have people worrying about a threat. it is very important that the regulators and politicians take care of the banking system over there. but the risk-off for a lot of this week, the fact that the

risk-off that was off helped the market. morgan stanley's global investment committee we still like japan, we like u.s., especially small cap and we like japanese stocks. not so much the european stocks. >> thank you. >> happy new year, everybody. >> take a quick break with the dow up 200 points. we have the close countdown. >> we will give you a live report from germany on how folks in the fatherland are handling the troubles of deutsche bank. you might be surprised by their responses. you're watching cnbc, first in business worldwide. if you have medicare

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and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. okay. two minutes to go. did you say no boards? so for, as we close out the month and started to see selling, bob pisani joining me here for the closing bell and we're seeing a little selling. for what has been not a bad quarter for the major average snoops radiate quarter. 3.5% up. tech is the leader. tremendous move in semiconductors. almost all the sectors on the upside. real loser is gold and gold stocks. >> they had a tough time. wti, crude up 30% in the

quarter. >> that's why energy is doing very well overall. we saw, got a couple of new highs in energy stocks. eogs had new highs. >> yields went lower. vix down 29% on the quarter. just the last few weeks not with standing. we were rueing the lack of volatility in this market. >> everybody was making a bet september would have two big volatility events. first the clinton-trump debate and second fomc meeting. >> looking ahead this new nutanix ipo bodes well? >> what do you do when -- price is 13 to 15. opens at 16. excuse me prices at 16. opens at 26.5. now up 130%. it's a green light to other potential unkorns out, there

billion dollar tech valuations private to say start to consider the possibility of going public. >> thanks, bob. saw some weakness in the close. very good day with the dow up. 163 points. este lauder commemorating breast cancer awareness. stay tuned for the second hour of closeing bell with kelly evans. welcome to close bell, everybody. i'm kelly evans. we lost a little bit here on the bell. let's look how we finished on the dow. finished at 160 settling just above 18,300 to close out the third quarter. a gain of nearly .. 9%. doesn't undo the losses we saw yesterday. s&p 500 up to 2168.

nasdaq up to 5312. we'll have more on the performance this quarter. some interesting changes beneath the surface. tech powering the way while better yielding sectors were the worst performers over the last couple of months. meanwhile janet yellen hint fegd might be looking to buy stocks to boost the economy in the event of a downturn. coming up market watchers will weigh in if that's a good idea. on the panel today for the hour joining me is cnbc contribut contributor. guy adami will join us in just a moment. danny, what do you think of this market and this quarter >> this quarter has been pretty stellar. i'm cautiously optimistic looking toward the end of the year. we had a nice uptick on third quarter gdp which i think might bode well for fourth quarter. we're in an election year. i think all signs point to it being a good quarter. i also like the backdrop of the fact that gas prices are still

down. tech prices have been great. we've seen a lot of great m and a activity as well. i'm looking positively at the quarter. >> we got some data. goes back to the most important things, the a is important for the economy in general. spending and income wasn't great last month but inflation index for personal consumption expenditures up 1.7%. it's the highest since september 2014 when the dollar started strengthening and knocked us back a little bit. this could be a significant inflection point. >> the market has been flat since mid-july. weak for most of august and up until the last couple of days. it hasn't bean stellar robust market. >> what about tech. 12% on the quarter. >> the good news is that the price of oil has been going higher. for to you believe that stock prices will go higher by the end of the year you need a few things to happen. number one you need to see hillary clinton win the

presidency. i do believe that the stock market wants her to win. i can't point to any fact but i believe that's the case. i think you have to see this opec come to something. i think you need the ecb to signal they are done with qe or finish up with qe and -- >> that was huge. deutsche bank trading up. that gave people kind of a little bit of a sigh of relief. we don't know what's around the concern but there were whispers could this be the next lehman. that's put that to rest a bit. >> unless you see the financials and the energy sector go up you won't have a market higher at the end of the year. that's my best guess. >> energy was still lagging last quarter. the strongest sectors were industrials, financials at least and materials for the period that was just close. pretty good one for the bulls. bob pisani is here to wrap it up and kooms standing by for the big moirchs the tech space.

we'll start with you, bertha. >> it has been a tech led quarter. who would have thought three months ago after that brexit vote that we would see this kind of risk-on appetite for the last three months over the summer and it really has put the nasdaq firmly into record territory here, taking out those old highs from last year. it was led by tech. tech up 10% in the quarter overall the big cap tech's but biotech rebounding although biotech down by 10%. 13% bounce back. chips were the stand out. biotech was i wanting given the fact that this was such a controversial quarter for biotech because of all the problems with mylan and the pricing concerns and the candidates talk about that. mylan was one of the underperformers here at the nasdaq, one of the biggest losers in the quarter and down

now for three straight quarters. overall the sector was able to overcome that. the real rebound in apple was part of the big story for nasdaq. apple up 18% this quarter. its best quarter since 2014. one of the things interesting coming in to the quarter a lot of the big institutional funds were under invested in apple. so that might have helped fuel some of the gains and some of the leap we saw in apple trading. finally small caps, although not necessarily the huge outstanding performers in the third quarter are leaving this year. small caps have been under pressure for some time. the russell 2000 already here through the first three quarters of year on pace for double digit gains in 2016. back to you. >> wow. all right. we'll see if they can hold that. bob pisani what were your

takeaways >> end of a great quarter, 3.5% is much better than you usually get after, in the third quarter for the s&p 500. so put that up. really we rallied right after brexit. we had a two day drop in brexit and then it moved up. not only did we go down we moved up to new highs. 2168 is where we ended right now. on lay little drop little bit later on sort of concerns with rosenberg making comments. sectors in the third quarter overall here. bertha mentioned biotech but steel stocks were strong, expiration of stocks were strong. bank stocks were strong. gold stocks were down 2.5%. s&p 500 we hit a number of new highs. rockwell automation, eog one of the big expiration production companies as oil moved up. proctor and gamble new high. caterpillar which was a laggard coming on strong.

there's the old hewlett-packard, personal systems and printing, hit a new 52 week high. any laggards? yeah. wells fargo today a new 52 week low. worries sort of continue for that company. there it is at the lows. guys, back to you. >> see how it rolled over there. our bob pisani on the floor. you mentioned for the market overall financials and energy have to do well. >> it's been trading in a range for two years. the market has not gone anywhere for two years. >> having done well in energy, where do you go now? >> i believe, again, that if -- the market is not going to go much higher i don't believe on the back of apples and amazon. those stocks are very highly valued. it's possible to go a little bit higher. if we get a break out a leg higher you need the areas that have been weak over the last few years and those are financials in the energy sector.

>> what do you like? >> we're overweight financials and energy. those are the two sectors that have to lift us up. i actually have been pretty happy how energy has done over this last quarter. i think we've seen some foundational trading and some big names like british petroleum. a lot of those names they are paying you a dividend, paying you to wait. it takes the bite out of something like wells fargo falling off where we've been buying more of that stock believing that will eventually turn itself around. but i do think that bottom line is an economy grows when you invest in real productive assets and we're seeing a lot of buy backs. i think once we see more investment in america and i think that might happen when we have the next president -- >> the point too the way coerce investing in their workers right now. it can be a kind of an okay hand off if that's what's happening. >> i'm all for raising wages. the more you see wage growth the more you see income growth and

could get some productivity growth i think then you can see the economy that breaks out of this 1.5% to 2% rate. i think that's looking what could go well. i think that a trump presidency and i know i'm going come back to this, i think do you have the big danger you have is the protectionist tendencies which are not justin united states but in europe as well and a little bit in asia and that to me is the big danger if you see the wholesale shift towards protectionist sentiment across the globe. that could be very bad for stocks and trade. >> the point about wages, low-income consumers very optimistic about the future. as i mentioned the consumer sentiment and consumer confidence surveys have been doing well and out pormg. names like pepsi beating and raising. mccormick. some things going right on the consumer side. . is that a place where you want to invest? >> in some cases yes. gap is a good example.

it's fallen out of bed. came down to i think lower than $20. another company that pays a nice dividend. has it turned around? no. but ate story for consumers looking for value because they have the old navy brand. i also think that just going back to, you know, companies investing in their productivity, you know 401(k)s is a big area where companies can do better n-vest in their workers and we're not seeing a lot of that. that could lend itself to bolt investing in the market. >> i don't like the staples. i'm kind of relieved they didn't do that well. >> because of their sensitivity to higher rates. >> the valuations got crazy in that area. it's not like they are terrible. but when you see stocks out perform for a year and half, two years which is what they've done eventually it comes -- >> we this ipo of nutanix today. more than doubled --

>> that is a good sign for the markets. hate a stock like that now. it's up. you can't get any of the stock when they did it. but it's usually a good sign for the market but i still think you have a fundamental problem which is that there's so much capital out there that the traditional ipo market i don't think you'll see it come back. >> that's right. and it will never because you have to be so much bigger to go public. private equity markets are where it's at really and frankly, you know, seeing the window open like that in the sense of ipos happening and doing well is a great thing for the market. m and a is that story too. i think that will continue or i hope it will. >> if you want to hear guy adami's thoughts you have to tune in next hour. "fast money" you can hear from the whole crew fed has made massive treasury bond purchases

but janet yellen said the fed could start buying equities during a future market meltdown. we'll discuss the future pros and cons of that. >> drop in auto sales. should auto investors be worried? you're watching cnbc first in business worldwide.

>> welcome back. fed chair janet yellen suggesting yesterday the fed could buy equities during a future market downturn and it's not the first time she's said that lately. steve liesman has the details. >> janet yellen increasingly sounding like a fed chair who wants to play the stock market or have the ability to do so if the economy needs it. on august 26th in jackson hole she had this oblique line. future policymakers may wish to explore the possibility of purchasing a broader range of assets. most saw that as a reference of equities but in the context of a discussion on what the fed would do the next time economy turned down. this week she made a poichbt telling congress unlike the european central bank and bank of japan the fed is not allowed to buy equities and congress might want to consider a change in the law. yesterday addressing a minority bankers forum in kansas city she seemed to go a step further.

>> it could be useful to be able to intervene directly and assets where the prices have more direct link to spending decisions. >> now she went on to say the fed doesn't need that ability now and there are costs and benefits but seems like the fed chair wants to start a process of adding equities to its arsenal. >> all right. stay right there. we'll bring in president of bianco research as well as helped of allocation for blackrock to discuss this. jim, to you first, what do you make of it? >> you know, there's a couple of levels on it. one as was pointed out by steve fed cannot do this unless congress pass as law lough them to do it. and in this environment i just can't see how any kind of law would be passed any time soon to allow the home buy equities.

on a technical level i would be very uncomfortable if the fed buys equities. so when a controversial ceo pay or mergers or some other kind of deal that comes up with a company wants input from its ownership there's the fed making a critical decision on the management of a company. by voting or not voting a proxy and that's not good. >> what are you thinking here? >> i would agree. there are a lot of problems with this. it's more about efficacy. clearly the fed is trying to convince investors they are not out of bullets. i get that. there's concern what will happen when we get another recession, rates where they are. if the fed starts to buy stocks what's the mechanism by which that will help the real economy. we already have a situation where they've taken the wealth effect probably as far as it can go. we've seen household wealth in the u.s. at $89 trillion relative to disposable income.

it's not clear to me that pushing it higher will have the effect on the real economy. >> kelly -- >> i have a question for steve. do the people at the fed look at the experience of japan and go oh, great we want to be just like japan in doing that. they can't look at what's going on in europe or japan and say it's worked well. if anything it's been ineffective at best. >> there's a central bank jealousy going on. they look at the abilities of the central bank of japan and europe to do this. i want to throw something else on the table here which is that this whole discussion bothers me. forget the idea of whether or not they ought to do it. what troubles me about this discussion is we already have an issue as to whether or not the central bank has a put on the market. is it undermining the market, underwriting equities. the idea that when things go south the fed may step up and

say we're going to buy equities. that to me has a potential real effect right now and that potential effect is to perhaps create higher valuations than warranted because of the sense there's a fed put out there even more than exists right now. >> steve, i agree with you. i think we crossed that rubicon a long time ago. does anyone believe that the s&p 500 would be trading at 20 1/2 times trailing earnings with growth where it is, with political risk where it is if it weren't -- >> if i might it does that -- i'm sorry. extent of the fed owns equity, buys equities, keeping interest rates low. it's an indirect effect right now on the equity market. >> part of the reason we're trading where we are today and i agree with you steve if you go further you'll keep inflating that. >> how about the buy backs that the corporations have been doing over the past five years?

downtown think that that's had the same type of effect in the equities market with these companies actually propping up their company stock? it's almost like a pile on. >> they are allowed. >> they are loud. absolutely. >> they are allowed. they are allowed. fast forward to the future. this could be something that trips up the market itself when they pull back on that lever what could happen. . >> interesting, jim, to think about a world in which you have huge move into passive investing and then the fed kind of underpinning everything. is there ever be a stock market sell off again to allow just to create some new level -- if a guy like charlie munger buys wells fargo at the bottom, will there ever be that kind of opportunity? >> you know, that's a good point because -- capitalism works best when you give known good ideas and take it away from bad ideas. between passive investing and the fed what you need to do is

get your company in an index. the worst decisions you want, as long as you're in the index you get bought. make the best decisions when people want to leave the market you'll get sold. that's not good in the long term for markets. >> if it's seen as a social good to have some buyer, some governmentesque buyer of equities increase why not create a sovereign fund for the u.s.. you want to buy stores buy bonds, buy whatever, why does it have to be the fed? >> because of all the reasons jim laid out. you know the answer to that question, kelly, it's not good for the market. not good for the economy ultimately. look, i remember the days, kelly, when the fed didn't talk about the stock market. then we passed this rubicon where all of a sudden the stock market became in the middle of a crisis the, a focal point of fed policy. and it may be that it guess russ

made this point there's no going back. that said i think there can and should be limits here and i think it's enough that the market can have in its head the possibility of equity purchases when there's a crisis. i just think it's wrong for the fed to go further here and try to lay the ground work for a possible congressional decision or something so explicit about it. >> remember when volcker came in and created unemployment, but he said i'll -- would anybody let the collapse of asset price of the stock market happen now? it's an interesting question. guys we have to go. thank you all for joining us. it wasn't long ago auto sales were revving at full speed. is it a temporary decline or a red flag. >> investors have been very worried about the future deutsche bank but you may be

very surprised how germans are reacting. we have a live report from berlin coming up later on the close bell. now that fedex has helped us simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce. oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades

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>> welcome back. consumer spending came in at the weakest pace largely because of auto sales. phil lebeau has morn the weakness and if it's temporary. >> too soon to say it's a lasting one. what you're looking at is august consumer spending. it was flat. first month it had not increased in five or six months.

the problem is that when you look at auto sales and that's what most people blame the flat result in, when you look at auto sales in the month of august the pace was 16.98 million. one of the few months it's been under 17 million. keep in mind labor day which is the biggest weekend of the year or one of the biggest for auto sales was not in august and that's why the pace of sales came in under 17 million. tinting thing when you take a look at automakers and their vehicle assembly production plans they haven't changed relative to the third and fourth quarter. what they are hearing back from their dealers as well as when they look at consumer confidence continued strong demand. may not be as strong as last year but still expecting to see a sales pace of about 17.3 or 17.4 million for september. that's why when you take a look at the annual auto sales. last year was a record. it's unlikely we'll see a record this year. but it's going pretty darn close.

probably 17.3, 17.4 million. that's the pace. we get these september seams numbers on monday relative to how the auto industry did last month. i want to quickly tloup a cha l chart of tesla. next week we'll get third quarter delivery numbers from tesla. this will give us an indication of what they have left in the fourth quarter in order of making the target of delivering 80,000 vehicles this year. >> i have a question for you. >> yes. >> is the u.s. auto industry right size for a plaing to in terms of the annual production and annual demand. >> yes. >> are they still oversized. >> they are not oversides. >> they are not oversized right now. >> there's a little bit of capacity out there in case they need to increase it but there's a lot of overtime being worked at these assembly plants. but they are right size in terms

of the labor force here in the u.s. >> so explain to me why the share price of all the automakers have done so poorly with the exception of tesla. ford and gm have been in the basement for years. >> you're absolutely right. record profitability. there's no reason for that when you look at the profits they are racking up globally and specifically here in the united states. almost every person that i talk with who has been tracking this industry over a number of years, believes it comes down to one thing. wall street has no confidence that the automakers can with stand a recession. they've never done in their history never shown that ability. now we'll see what happens the day a recession comes along. we know one will come at some point. can they with stand that? they certainly have the balance sheets in place to with stand a slow down in demand and they have the capital structure right sized to with stand that. now it's a matter of proving they can do that when the recession comes along.

>> phil real quick. one sort of little thing that might tie this together. i thought i saw incentives are at their highest level since the last peak in auto sales. if so doesn't that portend more weakness. >> while incentives in terms of a dollar amount are at their highest is in 2007, 2008. the percentage of incentives relative to transaction price is still about so.5, 11%. that's relatively in pretty good shape. we've seen an increase in the transaction prices for these vehicles. back in 2007 and 2008 i think people were paying 28,000, 27,000, something like that per vehicle. now they are paying an average of $33 per vehicle. you have to keep that in perspective. it's the percentage of the transaction price that's really indicative of the health of the automotive. >> i notice many of these names

are yielding over 5%. to sit around in a year like this year where the s&p is returning 6% and we're in the third quarter and got a little bit of a volatile year and ford has done nothing just in terms -- the stock fell off and done nothing. it's a little bit -- there's more out there. >> so it shows you it might be time buy. >> i think so. there's some shares of the automakers today. tesla the biggest mover. thank you, phil. we'll have those auto sales figures soon enough. time for a cnbc news update. >> california governor jerry brown signing a bill requiring mandatory jail time for anyone convicted of assaulting an unconscious victim. this is in response to former stanford university swimmer brock turner who received a short six month jail term for assaulting a woman passed out near a trash bin. hillary clinton campaigning in florida, launching her new campaign, called the national service reserve.

it allows civilians to volunteer during national disasters but on their own time. donald trump campaigning in michigan make an unexpected stop at the gerald ford presidential museum. he laid a bouquet of flowers at the outdoor grave side of president and mrs. ford. president obama and former president bill clinton departing israel after attending the funeral of shimon peres. you just saw the president, obama, impatiently yelling for president clinton to hurry on up. when he finally does come on up take a look what happens here. wait for it. there you go. they each got on air force one. that's the news update at this hour. kelly, back to you. have a great weekend. >> i bet they could talk for 20 minutes to alexa too. >> about many things. >> have a great weekend. up next we'll head live to germany to find out how americans are reacting to

deutsche bank's financial health. it may not be what you expect. later your don't need go away to school to get a degree in hi-tech. the new trade schools. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create,

not just wealth, but things that matter. morgan stanley keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing,

the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california.

welcome back. we had a rebound on wall street today but didn't quite' race yesterday's declines. it was up 164 today to close out the quarter. the s&p was up 17. nasdaq up 42. and for the quarter overall looks like the s&p was up 2.5%. technology up nearly 12%. let's send it over for a market flash. >> some movement in the health care space. u.s. court ruling in favor of depomed. shares of depomed were up 3% after hours. it rallied as much as 4.5% on the patent win before it was halt sod a total gain of 7.5% on this news. >> shares of deutsche bank's adrs, american depository receipts having their best day since 2011 on rumors they have a

settlement with the justice department that's below $14 billion. >> let's summarize share price move and what's driven it. ending the day yesterday after that big decline there was one fear above all others. are we going to have a bear stearns style crisis. the answer this morning was no. goldman sachs writing in a note late last night that liquidity was stable, and that they had a 223 billion euros of cash or cash equestion valence. that accounted for eradicating most of yesterday's 5% to 56% decline. but this morning that further big jump focus on the far more fundamental issue of deutsche of capital plenty of some reprieve there. it comes in the form of rumors the doj is ready to settle it's outstanding fine with deutsche soon and a number lower than

feared. we tried to confirm that with all sorts of sourks no such luck so it's just a rumor. feels there's a sense of urgency to reach a settlement quickly the timeline which is shorter than it was this time last week but the exact tate and amount still unsure. >> there's some german rule in the books where if this was happening they would have to disclose it? >> the market abuse directive came into this whole saga a few weeks ago. the reason we know about the $14 billion initial ask from the doj is because deutsche bank had to come out and confirm that. that's law in germany. now we've asked is this 5.4 billion figure what could be settled next week and they can say no comment. that makes us think it's not 5.4, but the market move does say something. says something loud and clear that there's confidence of some

form of settlement coming early next week. certainly sooner than we were expecting beforehand. we don't know the number and when it might come. >> you're going straight home to bed friday night. >> that's exactly right. >> we thought so. here in the u.s. investors have been focused on deutsche bank's impact on the global economy. our team in frankfurt, germany asked locals for their take. >> i think they are too big to fail, but it is a concerning issue. i don't think it's an issue but a serious one. >> i did hear it but i don't know the background and so, sorry but i have no opinion. >> i think they will not have to pay the 14 billion, so might be half or 5 billion, so i'm not afraid. >> no, i'm not. i'm not concerned about it.

>> it was just a matter of time that the deutsche bank is in trouble. >> that's interesting. let's head out to berlin where our cnbc reporter joins us by phone. he says many germans don't care that much. is that right? >> yes. thanks for having me. not only do they not care that much, a lot of germans i spoke with don't even seem to know anything about deutsche bank's problem. around town i was hard pressed to find anyone who was aware that the bank was going through any problems. i asked them about it and thought maybe it had something to do with brexit or something about investors filing lawsuits. but, obviously, they were not kept abreast of today's subject. >> i have a couple of questions four. first, can you just tell me what the roughly speaking what the average equity holdings are of your average german and my guess is they don't hold equities in

germany that much. there's not a big retail investor base so whether or not the share price is down something like 80% the last few years is not something that's affected your average german on the street. did i get that about right. >> yes that's definitely true certainly here in berlin which is not a very financially minded city. i asked them about deutsche bank and going down in equities a lot of people pointed to atms and said it looks fine to me. so, yeah. it's not top of mind here on main street. >> but i think that sounds reasonable because most of the time you don't have, you know, the man or woman on the street kind kmofg first what's going on. it's usually the hedge fund that has deutsche bank as their president barack obama broker or an institution that's primarily being lent toby deutsche bank. trickle down effect takes some time as we know with lehman and bear stearns. what time would that take do you

think in germany? are they very savvy when it comes to these kinds of things or does it take a long time? >> two things. it's very interesting to germans here on the street. they have a ton of confidence in the german finance ministry. i asked people about deutsche bank. i heard a lot of people say oh, we trust in the finance minister to lead our economy and we're doing better than ever. we have all these trade surpluses. and the media here has not been sounding any alarm bells. the main sort of financial paper isn't leading any a ing with an about deutsche bank. so it's unlikely to trickle down in days. >> fascinating. thank you for joining us and for giving us a little taste on

what's happening on the treat there. >> thank you very much. now the chip card is at one year. we're talk about how long it takes process. it seems that long at times. it's the switch from plain old credit cards. 600 million chip cards in use. we'll look at winners and users. hi-tech trade schools are offering everything from virtual reality to gaming. and students never have to leave home. it's the subject of today's spark next.

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or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. welcome back. trade schools traditionally teach krafts like car pen try or electric cal repair. with the growing presence of technology in the workplace many are seeking tech boot camps. to discuss this trend in today's edition of the spark we're joined by a tech trade school that offers a self-driving nanodegree program. >> are you enrolled >> i want to be. guys thank you. sebastian how much does it run for yourself-driving car course? >> about nine months and you pay $2400 and hopefully you find a great job in silicone valley.

>> i can take it online >> yes. you can take it online. apply now. we have 500 slots open right now. we have about 7100 applicants. so it's been popular. >> what am i learning? are you teaching the programming skill by a sexier name? >> look self-driving cars seems to be the hottest thing on the market in the news and there's a huge number of companies, automotive manufacturers, tech companies, companies like uber and others who are desperately looking for talent of people who can build self-driving cars. we teach you the programming skills you need to know. >>ry card jobs what about you? what's involved in order for me to be a virtual reality certificate holder if that's what is it. >> the main courses we off certificate where we have students come in with no

knowledge of virtual reality development. after six weeks or 40 hours of working with us they walk away being able to create an app or experience in virtual reality. >> what's the cost? >> the cost that we try to keep it really low. the cost of our introductory course is $1,000. >> you tell us a little bit who these people are. do they need financial aid? are they young. do they come from jobs? have they been unemployed. what's your typical profile? >> we get a variety of people. you would be surprised. we get all kind of people. our most success are professionals in a similar industry and they have technical background and they just really learned something new that they can apply right away. >> sebastian. >> we gets lots of life long players. people who shift careers. mothers who raise children. people who want a new career. what we do is we work with companies like google and many, many famous companies, facebook,

to give them the type of skills that make them directly employable here in silicon and by proxy all across the country. >> i love that you said you have some whom just had children. i'm wonder if you're mixing up the market here and can you give us some statistics on how many women and minorities are actually becoming students here. is it easier for them and are you keeping track of that. >> sebastian. >> sadly because we're a tech field and seems to be more male dominated than female. we have tens of thousands of women come to us. they enjoy they can learn at their own pace. so if they have other obligations that's fine. they have a sense of privacy which you don't get in a tech classroom. lots of women interested in the jobs. >> ricardo >> we're seeing more women join our course. in our current course we have, 40% woman which is very unusual.

virtual reality is a great opportunity for women to really come in to a new industry and i know there are many women that are interested. . >> finally sebastian we have to go. who is teaching these courses and are you paying them? >> we draw instructors from industry. we learned virtual reality so we got instructors from google and facebook and other companies. we bring them in to be instructors on our platform because they know what industry wants to hire people. our goal is to give our students fantastic well paying jobs. >> are these professors doing it pro bono or do they get paid by you guys. >> you would smile. in most cases companies pay us for these employees to teach. and the reason is, they are desperate to find good talent. we're one of the hottest fields. self-driving cars i can fine you 10,000 vr jobs in the valley. every company with mixed media has to gear up and there's no good schools.

>> yeah. they are paying you for the opportunity. okay. he is bass anthony, ricardo, thank you for joining us. >> what they call a bubble. the vr bubble. self-driving car bubble. >> i don'tyet. for more on this partnership, check out cnbc.com/thespark. at some point, that's writes headed. up next, we're talking chips. not potato chips or the computer or motorcycle cops show. we're talking about credit cards that are supposed to make our transactions so secure. have they lived up to the billing? stay with us.

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welcome back. it's been one year since those

stupid chip cards were introduced. retailers are still under pressure to upgrade their terminals or shoulder the responsibility for counterfeit cards. contessa brewer is here with more on the rollout and the fallout. >> there is a lot of fallout and people who feel just like you. the credit card industry says half the cards now do have that emv chip technology, that's short for euro pay master card visa, in case you're wondering. i may need it in a trivia game. the 600 million cards impossible to copy at the point of sale. great news for the retailers now using emv. fraud is down by half for them. >> we're close to 2 million merchant locations that have already upgraded to chip card readers. by the time we get to almost full penetration, we'll see, i think, almost across the board disappearance of counterfeit card fraud. >> but until then, thieves are targeting the dwindling number of magnetic stripe cards.

in fact, a record of $4 billion in card fraud this year. oh, yeah. and there has been a lot of griping on social media about all of the time wasted waiting at the cash register for the chip cards. but come on, people. it's only about 14 seconds of your life. and a nerd wallet survey shows four in five americans actually view the emv cards positively. but 40% admit, they do get confused. do i dip the chip, do i swipe the stripe? and that is where the annoyance comes in. >> but i like your point about how this has helped fraud drop by half. here's -- then i read the fact these chip cards still have the magnetic strip, means they're still vulnerable to fraud. they shouldn't have that stripe at all. people haven't al upgraded their systems. >> and why do we still require signatures that could be ignored or copy and we should all be punching in a pin for every transaction the way they do in a lot of places in europe. >> big fight in walmart over this. >> my 7-year-old scribbles, because she gets a thrill and they look and smile and nobody

cares what you're signing. >> i used to sign for my parents all of the tichlt contessa, thanks for joining us. we hope they smooth out the rollout of these. >> my mother is not going to be happy for you. >> why, for signing? >> no, you used the "stupid" word. >> i apologize. that's true. adam curry is credited as one of the co founders in 2004. a dozen years later, there are more than a quarter million of them in existence, and i'm talking about podcasts. in honor of the international podcast day, we'll get our panel's favorite ones, right after this. so what else is new? how's your mother?

umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

announcer: get caught buzzed driving, and you could do some hard time. woman: craig. knock it off! sorry, mom. announcer: it could cost you around $10,000 in fines, legal fees, and increased insurance rates, and that could set you back a few years. buzzed, busted, and broke because buzzed driving is drunk driving.

. welcome back. today we celebrate over 250,000 unique podcasts that are delivered in more than 100 languages with over 1 billion subscriptions. it's international podcast day. we wanted to ask the panel to share some of everybody's favorites. here's mine. one of my favorites. it's the investor's podcast. i like to listen to them. by the way, there are some good sports ones. i love runners connect. pti is a great podcast. the vertical does great stuff. and in keeping with the genre,

econ talk i also enjoy. >> you spend a lot of time on podcasts, apparently. >> they're good for running on the treadmill indoors and when the weather is bad and subway rides. >> i'm not a huge podcast guy. comedy bang bang, introduced to me by my daughter. if you're into comedy, this is the one to go with. scott ackerman, an l.a. comedian. very funny people like nick kroll and paul f tompkins. maria ban fer is my favorite new comedian. by the way, this is much more millennial. >> i don't know anything. >> you're doing billionaire podcasts. come on. >> i'm going totally the other direction. medieval archives. i'm so into that stage of history. >> what do they do? are they reading old archives? >> kind of reenacting some things here and there. telling you about some or secure things that happened. >> they do all the battle --

>> crusades. when these little kids went on crusades, just groups of them. >> this is why podcasts are great. there is something that specific for everybody. truly. i love them. i encourage everybody out there, just -- do them. start them. do one of your own. guys, thank you so much. danny hughes, evan newmark on "closing bell." see you after the weekend. "fast money" begins now. deutsche smeuche surrounding the german banks subside. the dow was up more than 200 points, to close up 164 points and retrace most of yesterday's losses. the s&p closing up three quarters of a percent, much like rocky balboa, nothing can take this market down. the sa s&p basically flat on the month. europe's largest bank. can anything derail this rally, or is your best move just a bet on "rocky"? start with the guy taking a beating from rocky, our own bk