statement is $5 billion. if it turns out to be correct and deutsche bank stock is up another 2% today one of the greatest exclusives of the year for that wire service. >> biggest short squeeze higher. thanks for watching "power lunch". >> closing bell begins right now. a good short squeeze, don't you think? welcome to the close bell. i'm michelle caruso-cabrera in for kelly evans at the new york stock exchange. >> i'm bill griffeth. stocks under a little bit of pressure today as the dollar rallies. dollar moving on gold as well. first on the dollar against the british pound. you see $1.27. not since 1985 have we seen the dollar that strong against the british pound. gold on track to have its worst day since 2013. we have more on what it all means for the broader market coming up. we have an official

englishman in the house to discuss it. google unveiling a new smartphone called the pixel. a number of other hardware products. we got someone who says today's announcement shows google is finally ready to take on apple. he'll explain why. >> who comes up with those names? pixel. >> reminds me of the movie. >> pictures from facebook, guns, sex, drugs, and facebook. >> is that what you do at night >> we told you yesterday about facebook -- is this what it's going to be like for two hours. facebook's new marketplace was launched yesterday to take on the likes of e-bay and craigslist. people are already selling some illicit items on the facebook site. we'll tell you how the social network is responding today as we show you more and more of these photos here. >> and for the first time medical device maker is warning consumers about a cyber bug in one of its products. johnson & johnson said one of its insulin pumps is vulnerable

to hacking. we got details. and the guy able to hack the device. this is no longer just an episode of homeland. this is really. >> absolutely fascinating. i had no idea an insulin pump could be hacked. wait until you find out why he hacked it. that's coming up. let's begin with google's big hardware reveal. josh lipton is outside of the google event in san francisco with some of the details for us. hey, josh. >> reporter: well, bill google ceo clearly getting very serious about hardware. that was one takeaway from this event. the star of the show was the new smartphone. it's called a pixel. i just spoke to google's head of hardware in terms of what he thinks makes this phone different. it comes ready and able with google assistant, the company's digital assistant, answer to apple's siri. making the case moving from a

mobile first to a.i. first world. he think google has the advantage given all the data google does have about us after the months and years we've been using google search. the price is $649. now that is tricky because that premium part of the smartphone market is under pressure. google clearly believes it has the product to bring to market right now. another way the smartphone is different than the competition it comes day dream ready. remember google day dream is that vr platform. google's bet is that future vr is mobile vr. it doesn't think future is pc enabled or console enabled. it wants to make one more accessible, more affordable. said it will sell that for $9. more details about google home. remember that's google's answer to amazon echo. amazon has first mover

advantage. google clearly believes it has a competitive product. certainly competitive on price. google saying today google home will sell for $129. amazon echo retails for $180. for investors what does this mean for some of google's partner. google telling you they will start getting into the premium smartphone base, into the vr head phone space. what does that mean for partners like samsung. seems an already complicated relationship that much more complicated. >> all good questions. joining us for more is bob peck from suntrust. he has a buy rating. also with us is lance. lance, i'll start with you. i carry an iphone. when i get a new iphone i download google maps and google search. seems like they would like to get the hardware in on the

business because that's where they could make money. they tried it before. will they be successful this time around >> they've never done anything quite like this. they never developed, designed and mafrd the hardware. they've always tried to influence their partners, teen first google phone was built by htc. there was no secret about it. nobody is talking about a partner building this thing. google wanted control because they never got things exactly right. fact that it's only coming out, the pixel is only coming out on verizon is telling. i tell you when you get the pixel phone it won't have any of that verizon bloat wear. going back to the days of apple they had to squeeze at&t this is the way you'll make our phone. this is an apple play from google. >> bob, what do you think of all this? given the track record that google has had with hardware and i think of the google glass that lance wore a couple of years ago

and brought on the set here. but, anyway, what do you make of today's introductions? >> as far as the financials it has no impact. talk being over $80 billion of revenue and hardware is around a billion or so, billion and a half. however why are they doing this? we think there's two reasons. one is the point of control. you go back to the pc era, pc creators, they controlled who got pre-installed. who was the default search engines, et cetera. as we went mobile, apple, samsung, the others controlled those points of control. we think google want as seat at that table not to be marginalized or at least participate. the other part two is data. they can use the data for a.i., omni device available they can use that data to fine tune you better for better higher advertising targeting and roi, drives their core business. those are the main reasons. >> i get all the why, bob but

the earnings report comes out every quarter. we talk about the self-driving car and spaghetti they are throwing against the wall. then you see the numbers, oh, yeah google search. they make money from search. is this enough to change the revenue stream for them and does it make it more of a buy, less of a buy? >> we don't think it's hugely incremental. as i mentioned 1% or so impact so far. however where they can monetize it, improving of the roi and more and more ad dollars they can get because of that. >> i just want to say if you think about in the whole presentation google made one mistake they mentioned a.i. and machine learning up front which consumers their eyes closed they don't care. what they are focusing on and what's important about this is google assistant. notice how they talk so much about google search. they talk about google assistant ties it all together which is backed by google search, machine learning, a.i. and this is a

consistent thread that will go across pixel phone, mobile phone and every hardware product that google brings to the forefront from this point forward will be about google assistant. >> understood. so much is made of the apple eco system, right? what they are trying to do here, i guess -- you mentioned all the apps and software that you download from google but now the hardware is trying to complete that eco system. lance, do you think that people will want to buy the hardware just because they use the software and the apps that google makes? >> it's a tremendous risk. i just don't know. in toward get information buy this hardware they have to see something truly compelling. the pixel phone is good looking device. in addition to the google services they put something extra. free storage for your photos and video at full resolution. that actually is very important to people. but it is such a big question

mark. there's so much competition. i don't know if google can beat apple. >> where do you think the stock goes? >> we like it. it's a buy $99 target. for us much more pretty indicated on the core and how that's performing. our checks with advertisers show very strong fundamentals here. improving rois, this to us would be incremental to that. >> would you sell april signal >> we don't cover apple. >> there you are. bob peck, lance, good to see you both. appreciate it. let's get to your closing bell machines. dow down 120 pointing right now. steve, art used the word trap door to describe this sell off we've had. what's going on? >> if you look at the market you

and i discussed this on the floor yesterday. right around roughly this time. we had on friday we had quarter month end. what's the real catalyst to get in or out of this market right n now? i don't see much. i do see people letting it go sideways. opec is basically the new fed. everyone is keying in on that. i think people are leaving rates until the november discussion. but if you look at the market as a whole, industrial production, retail sales, ism numbers, these are things that people want to hold and bite into as far as fundamental reasons why the market can go higher. we had a better ism number. next week we get retail sales. that's what originally caused a lot of the selloff. >> rick santelli, i was speaking to mike santoli, no relation of yours. we talked about the quick rise in interest rates, the two year yield to its recent top of the range, the ten year yield last i saw was once again threatening.

is part of today's selloff because we're sealing horizon on interest rates despite what the fed will do. >> yes. yes. you win the kewpie doll. i don't think the rate rise has anything much to do with the fundamentals of economics. steve is right. we had better data before the most. let's all be frank here. if i had to draw a line over the last ten quarters that described the data it would be pretty darn flat. yes it has some bumps. but we'll average about 2% or less even if we get spectacular third and fourth quarter gdp so the answer is yes. i know we shouldn't talk about the next thing but has there been any compass needle fluctuation and mario draghi and the ecb and quantitative easing and the notion about buying corporates i can't tell you there is. i don't have a good source that can whisper in my ear there is. it seems though. many of my compadres talk about

that. when you look at ten year note yields we see that we have left in the wake really for august and part of september huge amounts of heavy concentrated tightly packed price activity and interest rates. mostly below where we are. as we move away from these prices think about all those positions that are in that consolidation and what their next move is. i've been saying for days i'm not looking for a big rate increase and i don't think it's a positive necessarily. >> how much pressure does deutsche bank bring on mario draghi and the ecb right now? how much is that affecting what we're seeing in rates? >> you know, i think that deutsche bank is a perfect institution to reflect the knuckle headness of the policies

that are being implemented to fix something because i guarantee you mario draghi's negative rates is negative lending rate none of this is going to make deutsche bank better. i assume they get over the recent mogul. there might be something to that smoke which is leading to the conversation traders are having. >> before we go mike, we talked about this yesterday seeming migration on wall street away from the defensive issues more towards cyclical and indeed today the rates are going up. do you sense the market is getting itself ready for a time when the economy will start to go a little faster? maybe? sort of. >> you're seeing some uncertainty and some volatility as we've gotten through the end of the quarter. people are still looking at the elections. they are listening to the central banks. they got one eye on deutsche bank. india eased for the first time out of that central bank with the new central bankers there. we're seeing additional

quantitative easing or lowering of monetary policy around the world. yeah, you're seeing a shift out of those yield stocks that have done well, the riits and telecoms. it's the consumer staples as well. look for companies that haven't done as well with good solid balance sheets. they will be the places to invest and live as you get to year end. >> we got to go. thank you all for your thoughts on today's market. appreciate it. we got 46 minutes left in the trading session. here you saw the dow was down 130ish. we're getting close to that right now. heading to the lows of the session once again. >> coming up next drugs, guns, hedge hogs all on the set. just a few of the illicit items that made their way on to facebook's new marketplace site. the company is issuing m

memea mea culpas. >> don't miss our vice presidential debate before the debate. we'll discuss what tim kaine and mike pence need to accomplish to sway voters their way in what's still a very close race. you're watching cnbc, first in business worldwide. unlesesyou're a barista. cdw implemented dell poweredge servers withntel xeon unlespres to allowrista. people to work from ywhere, soucky me. so nobody wants coffee?! hey,an i get a couple coes? hanced mility by dell. i.t. orchestration by cdw.

43 minutes left in the trading session with the dow down 120 points. couple of other movers. dr. pepper snapple lower after that stock was downgraded from told buy. dr. pepper's potential sale of buy brands and loves distribution could affect earnings per share between 20 and 25 cents and that stock today down more than 4%. dollar tree is in the red as well with cleveland research downgrading it from neutral to buy. facebook's move into e-bay's territory not going so well. its new marketplace service launched yesterday and people

started selling illicit goods such as drugs, guns, animals. >> reporter: facebook apologizing for the illicit items said a technical problem prevented them from looking. they said we're working to fix the problem and will be closely monitoring our systems to ensure we are properly identifying and removing violations before giving more people access to marketplace. facebook saying 450 million people already visit, buy and sell groups on facebook every month. now if this tool takes off facebook poses big competition to e-bay and etsy and consideration late. they've drawn criticism they don't have a secure payment system or star ratings. and it doesn't facilitate delivery which could lead to in

person meetings with unvetted sellers. >> we were talking earlier today about some of the missteps that facebook seems to have made this year. the trending issue and various other things that have happened that they've had to take back or do quick course corrections. are they trying to do too much right now? >> reporter: it's interesting. i asked that very question to one of the analysts who covers facebook earlier today. he said in a way it's inevitable when you're a company this big and you try things this big there are missteps. facebook's strategy on these things is very different from apple's. apple doesn't launch things until they are totally done and perfected. facebook's strategy has been to get things out there teen iterate and fix them once they are already in beta testing or rolled out to the public. i don't think it's that unusual for facebook with that strategy to get things out there and have to make tweaks later. >> i think about the biggest hurdle they face the whole issue

can they monetize mobile and there was so much data and they managed to do that. >> big time. >> reporter: that was the big question from several years ago. they proved facebook can be a mobile first company. the vast majority of its revenues from mobile. they don't need to generate a ton of revenue. but they should be looking at these different ways to make sure people can stay within the facebook eco system instead of having to go outside to e-bay, et cetera to do different things. be inning to see how it pans out. >> thanks very much. polls show a majority of voters find both presidential candidates pretty unlikable. that's news? hillary clinton's unfavorable rating is 56%, donald trump at 61%. when the vice presidential candidate meet tonight to debate the issues can they make either ticket seem nicer? >> joining us now ricketyler a

political analyst for msnbc and cruz for president national spokesperson and jimmy williams is the host of decode d.c. and former senior economic adviser to dick durbin. good to see you both. thanks for joining us today. rick, nobody has ever changed their mind or voted based on what they heard from the vice presidential candidates. what's the point of tonight's debate? what's the goal for both sides here? >> i think it's kind of tradition. look the goal here is really not to make news. donald trump has lost momentum. hillary clinton has some momentum. so with catim kaine he has an easier path. he wants pence to own trump's missteps and by contrast pence wants tim kaine to disagree with hillary or take responsibility for some of her ethical missteps. but i don't think there will be

anybody swinging from the fences. they will be going for base hits and doubles. >>y my, i assume you will watch the vice presidential debate. you want to see if these people are ready to assume the presidency. in this election some people hope that maybe they assume the presidency or on the ticket at the top instead of where they are at this point. what can either one of them do to convince the public that they are the right attorney step in if needed? >> what is the great slogan, keep calm and stay cool. i think rick is exactly right they can't screw it up and just have to be -- come across as thoughtful, as smart, as presidential. and you can't say crazy stuff that's going alienate suburban voters, women voters and i think that's where they are going to have to do somewhat of a little bit of a jumping trick. both of them will have to do this. most people don't have a clue who either of these two men are outside of their home states

except for indiana and virginians. i don't think that hillary clinton will win indiana and i do think that she's going to win virginia. so what's the big deal? the big deal here i think the moderators have to figure out a way to draw them outside of their comfort zones by actually making their policies disagree with the presidential candidates policies. that will be the real clincher. >> jimmy i guess that means you wouldn't see them attacking each other the way trump and hillary clinton might do? >> honestly i think pence will not go on the attack mode. i can see tim kaine doing that. he needs to be a bit more forceful. both will play it safe. if i were advising them i would say play it safe and be presentable. >> rick, what's going on behind you. is there a protest? >> i'm in front of -- this is longwood. people are getting national attention both on msnbc and nbc and all the other networks and they are having a ball here. they are loving -- they are

showing off their school. >> you played donald trump in the mock debates with ted cruz, correct >> not as good as alec baldwin. >> i was just going to ask. did you see that? >> it was remarkable. he really just nailed it. yeah. >> there's a reason he's the most favorite guest host on "saturday night live". >> what does mike pence have to do to improve people's view of donald trump, for example? >> i think mike pence's goal is to say look he could be president. you know he could be qualified to be president if donald trump wins in four or eight years. but i think you're going to get more policy out of this debate than certainly you saw the other ones. i think some policy questions. but i think jimmy is right there will be some hard questions. a hard question would be, mike pence do you think hillary clinton is a bigot because that's exactly what donald trump

called hillary clinton. that would be putting him on-the-spot. that would be making him a little uncomfortable. that would certainly make news. >> jimmy, i see you nodding your head. don't you think mike pence is used to those questions at this point. >> he does. his responses have been doggone good. he said i'm not into name calling. i don't want to go down that path. that's a smart thing to do. at the same time if i'm the moderator i'm going to want to distinguish between what pence's policies and tim kaine's policies are versus their bosses, their running mates. that's important. you want to draw that distinction so you can see that this a difference between hillary clinton and tim kaine and conversely donald trump and mike pence. this is the second most powerful person in the country if they become the vice president of the united states only by a heart beat. so they have to be qualified and ready and actually credible on that stump. >> all right. got to go at this point.

jimmy williams, good to see you. go longwood. >> remember what they said at delivering alpha. we were hoping they would both get indicted and start all over again. >> let's just vote tomorrow. >> 340r minutes before the closing bell. the dow jones industrials are off. the s&p is lower by is 12. nasdaq is lower by 15. >> johnson & johnson warning patients of a cyber security bug in one of its insulin pumps of all things. we'll have details and speak to the man who actually hacked into that device and caused the warning. coming up.

time now for cnbc news update. >> here's what's happening at this hour. florida residents are being told to prepare for the worst as hurricane matthew looks more likely to hit there directly. >> protecting life is our number one priority. if matthew directly impacts florida there will be massive destruction that we haven't seen in years. this is a deadly storm approaching our coast. i cannot stress that enough. >> all of florida is under a state of emergency and hurricane warning is in effect for much of the state's east coast. sticking with florida, miami-dade officials say a new

pool of mosquitos have temporarily tested positive for the zika virus. the european union has endorsed a landmark international climate change agreement. the deal which is already backed by 200 nations including the u.s. seeks to limit global warming. friend and family and fellow golfers pay tribute today to arnold palmer. he was remembered today at a memorial that included speeches from jack nicklaus. palmer died last month at the age of 87 and that's the cnbc news update. back tougher. bill, michele, i'm wearing arnie's army pin because he had an impact on my life growing up as a golfer. >> raising my hand too. thank you. good stuff. heading in to the last half hour of trading with the dow coming down. we're down 85 points. down 103 at the lows. leading trader will tell us what he's watching. >> also coming up the high end

real estate market in manhattan. it may be succumbing to gravity. we'll discuss whether the slow down is a bad sign for the rest of the country. retiringeted tires. and i never get tired oft. are you entirely prepared to retire? plan your never tiri retiringrt with e*trad i'in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vest si up at etrade.com and get up to six hundred dollars.

. stocks are making a come

back. the dow down just 78 points. we've seen some volatility in some commodities. crude oil, brent still around $50 a barrel level. down eight cents. wti was down 20 cents. gold having its worse day since about 2013. we're going to talk about this later. down 3%. half an hour to go in the trading session. what's going on today. let's talk to peter costa. we started out well and then market doesn't seem to like a strong dollar. >> to when doesn't and that's not unusual. any time we've seen the dollar rally we see market turn around. there's a lot of other things going on as well. one of the things you have to put in place the volume is very light. we're seeing movement, light volume. doesn't really pretend to be anything. but you still have to trade in

this thf this environment. most stocks were on the buy side. we might have a little rally going into the close. financials are doing okay. >> there's a creep in interest rates that everybody gets hopeful about. >> absolutely. you have a fed governor that think there's going to be some sort of movement in november which to me is the most ludicrous thing i've ever heard. truthfully i can't imagine any kind of rate hike or anything in november. december, maybe. >> peter, good to see you. peter costa empire executions and a cnbc contributor. as we mentioned earlier the british pound getting slammed today, plummeting to a post-brexit low. it hit a 31 year low against the dollar today. this on the heels of uk prime minister theresa may's comments over the weekend that she intends to begin the formal process of leaving the european union by march of 2017. joining us now, so pleased to welcome our long time colleague

jeff cutmore from london. first time you've been to the new york stock exchange. >> absolutely the first time. >> what's that about? what took you so long? >> no one of invited me. we have our own issues in the uk as far as brexit. >> let's talk about that. you know, are we going to see a full version of brexit? there's talk about brexit-light depending on the kind of communication that may still exist between great britain and the european union. what's the feeling right now? >> theresa may the british prime minister has made it clear that she's looking at the harder rather than the soft option. immigration was a big issue when it came to the referendum and i think that she feels to keep, you know, the populist support behind her she will need to insist upon that. sooits red line as far as this british government is concerned.

so i think it means that brexit will be negotiated on those terms. obviously the market is drawing its own conclusions and saying hey brussels is saying if you insist on restricting the free movement of people in europe then we are not going to give you full market access to the european market. i think people are drawing their own conclusion. bill this, process will take over two years. it's the slowest divorce in history, i think. >> last time jeff and i saw each other was that night. we spent that night together on the set. we watched. >> don't tell my wife. although she knew where i was. >> we were shocked to see the pound start plummeting that night. but that night we thought they would trigger out of 50 by december. they said we're going to do it right away. march looks quite far way relative to what people were expecting. >> so many surprises in what's happened here because originally as you recall suddenly we got

all these messages from brussels, okay, if you guys want to leave get on with it. >> do it now. >> let's start. now that she's given a timetable i think the french and germans are looking at their electoral process in 2017 and saying hey, maybe this is not such a smart idea. the other thing that they will be grappling with at the moment the pound falling as it is because all of a sudden this is a free swing at the bat because the pound feels like it's find agnew range. the industrial production numbers and the manufacturing numbers are gradually improving for the uk here. and if you are looking for a trade, i mean we've seen what's happened to the ftse. if you're looking for a trade, anybody that's making big foreign earnings, they are doing great. >> how about all of that incentivize people in france and italy. it must terrify the eu to see

how they are benefiting. >> the political leaders are, frankly, quite nervous. they see far right parties in their own countries that are gaining support by pointing to the challenges with immigration, the way that the whole migrant issue has been poorly handled by europe. the mechanism very slow to respond to the challenge of that flow of migrants coming in from the middle east and frankly they are nervous. i tell the bigger problem is really one of reform and you hear this constantly from mario draghi at the ecb, and others who want to see a more capitalist european economy. the biggest challenge for these guys is they need to get on with reforming labor laws, they need to focus on bankruptcy procedures. >> it's been ten years. >> we could be here all afternoon just talk about this. >> it's been like this since 2009. >> we'll let them solve the problems. we'll just identify them.

wonderful to see you. >> thanks so much. >> don't make it 22 years the next time. >> okay. >> come back again. >> so glad to have me in. >> jeff cutmore joining us here. nine minutes before the bell. dow jones industrials average is lower by 73 points. s&p is lower by nine. the nasdaq is lower by nine. up next a slow down at the high end of manhattan real estate a harbinger of things to come in the rest of the country? our robert frank has some answers on that. also coming up we'll speak to a cyber security specialist who hacked into this johnson & johnson insulin pump. it's not an episode of "homeland" any more. it's real. >> crazy.

♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide.

it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need

to help you keep rolling with confidence. go long™. ♪ it has been said that there is no investment quite like manhattan real estate. >> but that belief may be challenged due in large part to market changes that not even the land of bright lights and tall buildings is immune to. robert frank joins us with more. >> i was unaware. i thought there was a law prices couldn't go down in manhattan. >> seems to be. the law is being tested. not violated but tested. real estate sales in manhattan falling 20% in the third quarter compared to a year ago as wealthy buyers are pulling back their spending and new luxury

condo towers are piling up unsold throughout the city. there were 3,000 sales in manhattan. down from 3600 last year. according to a new report today. the number of properties for sale were also increasing, the time it took to sell a property that went up. and there's now a six month supply of inventory. bidding wars are fading and discounts are more common. discount as relative term in the city where sale prices is $2,032,000. the biggest declines at the top especially those trophy apartments and brand new condo towers. inventory of jumped 20%. growing two and a half times faster than the inventory of resale apartments. and it's likely to get worse. the third quarter results were artificially inflated of new apartments that went to contract in not good times of 2013 and 2014 but only closing now

because the buildings are being finished. the most expensive sale in the quarter was $88 million for a penthouse at 432 park. 8300-square-foot apartment. the highest residence ever sold in manhattan. on the 85th floor and that apartment went to contract in 2013. the buyer was a saudi real estate magnet. not too many saudi magnets looking for apartment. little high for me. >> come with an oxygen mask. >> what does this tell us about the national real estate market? >> we've seen a surprising slow down in the last quarter in all of the high end markets. hamptons, palm beach, greenwich, beverly hills. all these markets are down 20%, 30%, 40% in terms of sales. prices are still there. what you're seeing there's this big standoff where prices aren't moving but you're getting a huge

pile of inventory. >> that may be the crackdown on corruption in china, saudi oil situation. >> yeah. >> et cetera, et cetera. >> i call at any time great inversion. for years the top was strong and middle and bottom was weak. now it's reversed. the top is weakest. higher you go weaker the market. >> 83rd floor pretty high. >> very high. >> robert frank thank you. >> heading to the close, 13 minutes left in the trading session with the dow down 84 points. why emerging markets could be ready for a break out.

♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

ten minutes left in the trading session with the dow down 88. art cashin is back. he had a hairline fracture in his foot. the market on closed orders shows an imbalance of $300 million to the buy side. rear seeing the impact of that. joining us on the floor of the new york stock exchange jeff from renaissance macro research. you're here to make the case for transportation stocks out there? >> transportation, air freight

logistics and machinery names look good. one area that's starting to percolate. >> meat and potato kind of companies. >> basically. caterpillar. one reason we think is you got from a longer term perspective this turn in emerging markets on a relative basis versus the developed markets. the developed includes all of europe, the u.s. which is the stand out. a lot of these things have floundered fedex cup look at emerging markets, they look fwoirts >> you're talking about the emerging market economies not necessarily the emerging market stock. >> talking specifically about the stocks not the economies. i'm much more interested about the stocks. >> caterpillar does better when those emerging market economies buy more stuff to dig more mines and build things, right? what the stock price is maybe reflective of that but maybe not. maybe interest rates rise. >> historically right. we think the long term trend in

rates is still down believe it or not. even if the fed raises rates we think it will put pressure on the curve compress and we still think there's that downward pressure in rates. haven't done anything to break those trends. anything that gets us above 170 on the ten year we absolutely think is a buy. >> that's so interesting. we talked rising rates. no, no. long end of the curve and if they raise rates that doesn't necessarily -- >> exactly. >> causes a slow down in the economy. >> in fact, since world war ii every time the fed raised rates except for the last time the ten year yield has gone up. we think it's a very good indication that things are different this time if we see the contraction in the ten year yield. >> who else besides cap? >> fedex, u.p.s.. some of these defense names, general dynamic as an example look pretty good. those are those areas of industrials. if you look at energy we started

to see a little bit more improvement in energy. the one area that's not influenced by the fed, this correlation is essentially zero between the fed anticipated rate hikes and the sector is technology. so if you don't want to call on rates, still look at tech. we think that's pretty interesting. >> what about emerging markets, buy an index or stocks. >> buy an index. the core em look better than the frontier. if people want to buy the frontier that's where the value is. we look at it and say the performance of the ems so bad versus the frontier names look better to us. >> russia, india, china. >> exactly. >> good stuff. that was interesting. jeff, thanks very much. we will take a break here with the tow down about 88 points. closing countdown in just a moment. and it's a fight to be second. we'll go live to farmsville, virginia to preview the vice

presidential debate between tim kaine and his counterpart mike pence. you're watching cnbc because first in business worldwi we're first in business worldwide.

this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. about three and a half minutes left with the dow down 91 points. bob pisani joining me for the closing countdown. it's safe to say one of the things people were talking about

today was the british pound. >> yeah. >> down to $1.27, 31 year low against the dollar. >> why may came out yesterday and said that they were going to have a hard date for the brexit when they haven't negotiated anything i don't know but put pressure on the pound. dollar is up. >> england is on sale for sure. >> this had pressure on a number of other groups. gold, for example. >> are you looking at my notes. >> 25 years we've been together. >> chances are something is going lower. in that case it's gold today down to a three year low here. worst day in three years. i saw 1230. it's 1270. >> gold is at the lowest level in many, many months. it's a post-brexit low, essentially. >> oil hanging in there, though. in fact, we will get -- we think

we'll get the api inventory data in 30 minutes. we'll see what that does because we are still seeing some build in inventory and that could put some pressure on that even though brent is still at $50. you see what wti is doing at 48.62. finally what did i do with the stock market today? we had as art cashin put it and so great to have him back the last trap door that was sprung at midday and we were down about 130 points at one time. >> there was some reports out in the middle of the day that the ecb was considering tapering its bond program before concluding qe. it put a little pressure on bond yields. i want to point out moving up on yields recently. banks had a good day which would be beneficial of high rates. >> 1.68 on the ten year. >> key, suntrust, citigroup.

i've been highlighting this all day. look at utilities, at the lowest level. riits lowest level since may. telecom will close at the lowest level since june. i mentioned the dollar strength. you were talking about that as well. and you see what's going on not just with gold but gold miners. we're seeing five, six, seven, eight percent. all double digit declines. we made a big thing in the middle of the year about low volatility stocks versus high volatility stores low volatility stocks tending to be names like yoimts, consumer staplndp utilities, consumer staples. it's those higher beta names that have been doing better in

the last couple of weeks. interesting little reversal going on. >> thanks, bob. see you later. going out with a decline of almost 100 points on the dow. hart is ringing the closing bell and paraten. welcome to the closing bell. i'm michelle caruso-cabrera in for kelly evans. this is how we're finishing the day. dow jones industrials average and nasdaq finishing in the red. industrials lower by 84 points. 18,169. s&p at 2150 with a decline of 10.23 and nasdaq 5289. google announcing a new sweet of hardware from new phone to virtual reality head set. home assistant. we'll look at whether or not the technology giant can compete with apple, amazon.

johnson & johnson warning consumers that one of its insulin pumps is hackable and the company is working on security issues. coming up we'll talk to the hacker who reported the vulnerabilities. he's the guy that did it. join us as mike santoli joins us. and we're join by kim forest. and "fast money" trader tim seymour. mike santoli, let me start with you. starting to see a little creep in the rise in interest rates ain't rates sensitive sectors selling off all this week. >> they've been on the defensive for several weeks. today this mini rate panic a reminder what happened several weeks ago. we got up to 1.7 on the ten year yield and that makes the bottom fallout of the ration educational for owning the pure yield. other influences were going on today too outside of equities really. the dollar rally i think you have people, another turn of the

screws saying central banks maybe are looking for a way to exit some of these policies. not a dramatic way. not a way that necessarily means you have to really panic but i think the stock market is sniffing these things out all at once. you saw a reversal in emerging markets. >> with this rate rise, strong there are, lower gold, what's the market trying to tell us right now? what is it setting itself up for, do you think? >> i think the comments from the fed over the last two days remind me of where we were three weeks ago when we had people were put on high alert this wasn't just about one or two but maybe even a cycle. that wasn't said in the last 24 hours. but i think you got the message loud and clear that november is possibly in play. i think higher rates is, are the reality that equities have to deal with. i think in the case of gold, you had a case where probably too much was expected of gold too fast. i get the all weather kind of, you know, approach to investing

in gold but this is something you have to be careful about. >> kim, same question to you. what do you think is the message of the markets here? >> i think the markets are reacting to the fed just like the fed wants them to react. you know, i think they -- i don't know if it's trial balloon so much as they would like to get the discussion that they have in their meetings out there in the world to let us know the variables that they pay attention to and maybe that the markets will relax and understand the thinking behind these moves. so it might be november, might be in december, might be in the middle of 2017. we don't know. but, you know, i guess the markets are reacting. and everybody gets to see that. that being said, we are entering earning season and i'm super excited because that's going to actually tell us a whole lot of information about winners and losers and where companies and people are really spending their money. >> yeah. i think there's an interesting point. almost every professional

investor likes when we get around to having corporate news not just about macro. maybe we're entering one of those phases. i do think there's a shot the third quarter, almost break even in terms of year-over-year corporate earnings s&p 500 was supposed to be down by 2%. but then there's a general sense that 2017 numbers are way too high. so i don't know where that shakes out in term of the market field position. >> absolutely tim seymour we were whoepg it comes to earnings season we were getting out of that trough movement, finally move inphotos negative year-over-year comparisons. >> pick your sector. if you're in health care you're in good shape. in the industrial sector you're in good shape because expectations are solo. you're coming off a low base or expectations of a low base. look how ford and gm have trade after poor auto sale numbers. look how airlines are trading in the face of some concerns about the economy. i think it's about where valuations are and where

expectation are. so stay in industrials that's the place to be. >> kim forest, you're excited about earnings. who are you most excited about. >> oh, golly. i guess two fold. i love tech and i love retail. they don't seem to go together. but we in the last year have found a lot of value there. what i would really like to see is companies continuing to spend and that would be in tech and we're going to think that people that serve the cloud are probably the winners in this quarter. that's what i want to see the microsofts reporting that more people are going to azure than they anticipated. >> when you say you found value there what kind of metrics are talking about you see both in retail and technology? >> well there were some unloved names earlier this year that looked good. one was urban. you know they've had misses. they bought a pizza chain.

it was a real head scratcher. we think they are great. merchants and i don't care what the trends are, you have to pick a retailer that knows how to pick trends and we think over the long haul it's urban outfitters. one that is down and unloved is vf corp. they have a track record through many, many cycles of fashion being able to outperform. >> sell sweaters, deep dish, sell it all. >> certainly. >> actually, the news about the pizza acquisition was the low in the stock. it was so ridiculed they bought it. >> pizza is an experience. we have breaking news. >> those earnings from micron. you've been waiting for earnings. dominic chu how did they do? >> we have shares down by a percent on 365,000 shares worth of after hours volume this after micron comes out and reports a

loss per share of five cents. that beats the average analyst estimate of a loss of 12 cents per share. revenue coming in better. 3.22 billion. average were looking for 3.1 a. ceo of the company saying they are seeing improved market conditions in terms of slowing supply growth and improving demand as well. both sides working out in their favor. they say dynamic random access memory is a type of semiconductor, sales volumes are up 20%. prices are down 6%. and sales volumes up about 12% as prices are unchanged as well. a little more color from sales mix over at micron. they are a leading producer for many of mess semiconductor, smartphones and tablets. keep digging through this. we should note also that the shares are down 2% now on 392,000 shares worth of volume. shares were on a dwreer date basis up 26% and up 12% over the

last 12 months. back to you. moving lower. down over 2%. kim forest i know you like intel. you own it. what about micron? you have to keep an eye on all those guys. >> absolutely. i'll tell you those super strong numbers are just great for anybody in that complex. the pc vendors but also the chip vendors. i think those were very, very strong results. >> tim seymour, what do you think? >> micron we have a positive announcement in september which was the beginning of a turn in this cycle for them. drand supply is slowing. again it's a company that has had a lot of good news into the stocks. stock is up 90% off the lows. i'm not sure how far to do a lot with anonymous. the transition for these guys in that space is getting better and better. >> up 90% until five months ago. this is a stock that has these ridiculous streaks from $5 a share up to 35 down 9 up to 18.

so this is people thinking that they already got ahead of a better part of the cycle. sales beat is what you want to hear. >> like buying a commodity producer. >> is literally what is it. >> gold miners, copper miners. >> kim forest why do you like intel over micron, for example? >> i just like their higher margin business. and it's a little bit more diversified. we really think that they are not just the pc company that everybody kind of paints them as. they serve a lot of kind of weird end markets. but i look for growth of servers to continue, you know -- i'll be dead before servers start slowing the growth. it's just a matter of computing today. they execute really, really well. >> all right. we have a market flash i'm told and therefore we go back once again to dominic chu.

>> so it was just a little bit before the close of regular trading, michele, bill but i want to call your attention to what's happening to team health holdings. the ticket is tmh. it's up fractionally but just before the close bell the shares closed up 16% on about 2.1 million shares worth of volume. that very much higher than its average trading volume over the past three months. this coming on the heels of dow jones headlines saying team health is exploring a possible sale of it self. this is a company that does outsource health care solutions. the company is in talks with private equity firms according to source familiar with the matter. we want to call your attention to that particular stock because it did make a sharp move higher just before the close bell. we'll bring you more details as we know more. that's the reason why those tmh shares guys are moving. back to you. any thoughts on that one? >> no, except it's been an active area.

community health adopted poison pill because it's gotten some interest. not too much of a surprise. >> i can see micron again? did i see that it turned positive? it was down 2% after knew chdomu announced. yeah. it's gone positive here, tim. did you buy it or something. what happened? >> sleight of hand. what can i tell you. heavy short interest. that's part of the story. i think it gets back to the pc market is stabilizing at least. supply drand sunday control. people want to see this stock go higher. >> it has. that volatility that you were referring to before. >> yeah. >> it's not going to bore you. >> buckle up. kim forest good see you. tim seymour see you next hour. tim and the rest of the crew coming up on "fast money," tony dwyer thinks stocks are set to

break out in the next two weeks. he'll explain why and how you can profit from that. >> as the internet of things expands hackers are finding new targets and could affect your health. your life. st. jude medical recently refuted claims that its pace maker was vulnerable to a cyber take. johnson & johnson is warning one of its insulin pumps has a cyber bug. we'll talk to the man who hacked into it. google announcing google home but after amazon's echo are they too late? how the device stacks up against its competitors coming up. you're watching cnbc, first in business worldwide. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you ed in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated

range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. we've just been hearing you're a digital company, yet here you are building a jet engine. well, ge is digital and industrial. like peanut butter and jelly. yeah. ham and cheese. cops and robrs. yeah. nachos and karate. ahh. not that one so much. the rest were really good. socks and shoes. ok, ricky...

narrator: it wasn't that long ago. years of devastating cutbacks to our schools. 30,000 teachers laid off. class sizes increased. art and music programs cut. we can't ever go back. ryan ruelas: so vote yes on proposition 55. reagan duncan: prop 55 prevents 4 billion in new cuts to our schools. letty muñoz-gonzalez: simply by maintaining the current tax rate on the wealthiest californians. ryan ruelas: no new education cuts, and no new taxes. reagan duncan: vote yes on 55. sarah morgan: to help our children thrive.

illinois treasurer announced yesterday the state is suspending investment activity with wells fargo in the wake of the bank's fake accounts scandal. he told us on this program how much revenue he thinks wells fargo could stand to lose due to the suspension. >> well it's sort of like we, they are the best bid. it's like if you were putting a new roof on your house and you took the best bid out there, you know how much you paid to the roofer but you don't know how much they actually make off of

that. we think they make millions of dollars off of those transactions. >> wells fargo emailed cnbc, us as a matter of fact after that interview with this statement. respectfully, the actual amount in lost revenue for the company from business conducted with the illinois treasurer's office is approximately $50,000 per year. that statement from wells fargo. today's news broke louisiana senator david vitter sent a letter to wells fargo saying thousands of small businesses were also affected by the bank's practices. reuters is reporting 10,000 small business accounts were affected as a matter of fact. >> i gave the treasurer a hard time yesterday as you recall. >> i recall. >> you asked what i would rather have them do. >> would you not take punitive action against wells fargo for what they did. >> here's what i wish they would stop doing. i wish they would all stop pretending they care so much about me and us.

>> the treasurers and politicians. >> all of them. i gave the illinois treasurer a hard time but one of many who have been willing to just dump on this bank which there's no defenses from what wells fargo did, right? i'm not making that point. but to have all these politicians tell us about how they are protecting us. how they are standing up for us. they are standing up for themselves. they do this only because they think it helps them get elected. both those news items the illinois, the actual number plus david vitter's number it fits with this entire story which is really financially trivial for wells fargo but just not going away in terms of public outrage and response. those two things that's what wells fargo will be dealing with for a while. >> 2 million accounts. returned to investors, more than a buck an account. not defensible. >> representing the fees that were charged to those people. still indefensible. >> just know if you're a treasurer out there thinking of

doing this she wants to talk to you. >> you want your pound of flesh. johnson & johnson revealing some disturbing news today regarding cyber security of one of its medical device. meg terrell has the details. >> we heard maybe pace maker could be hacked into. that was one of the plots on "homeland". today johnson & johnson wrote a letter to more than 100,000 patients that use their insulin pumps warning about its one touch ping insulin pump. outside research an expert in cyber security identified potential of hack risk here. no patients have been harmed here. this is a story originally reported by reuters this morning. the way this works the pump has a remote control. so it uses an unencrypted radiofrequency. this could be hacked into by somebody wanting to cause someone harm and giving them a dangerous level of insulin. i want says the probability of unauthorized access to the one

touch ping system is extremely low. i learned from talking with j and j somebody has to be within 25 feet of somebody wearing this insulin pump, having strong skills and hack into this system and want to harm somebody. these kind of cyber security issues have come in to focus a lot with muddy waters teaming up with company medsec shorting st. jude stock over the security of their heart devices. fda is investigating this. st. jude has refute this and suing both of those parties. this is an ongoing situation. fda in terms of the johnson & johnson situation said this is the kind of proactive behavior that the fda has been looking for from the research community and demonstrates the collaborative manner in which vulnerabilities can be addressed in a way that best protects patients. the guy that did this did the

research on himself. while he's not using this any more it's not because of this risk. >> let's talk to him. stay right there. we're going need your help. let's bring in the man who was able to hack the insulin pump. jay radcliff. you are a diabetic. j and j is painting this as it's highly unlikely, difficult, logistics don't make sense. how easy or difficult in your view since you've done it is it to hack this insulin pump? >> sure. you know it's actually quite difficult. i agree with the assessment that johnson & johnson has made that there's that extremely low risk to the patient. the patient should stay on their medical treatment and continue to use their insulin devices so that way they can stay healthy. >> are you worried you scared everybody as a result of doing this? what's the framework for thinking about this? >> i think the framework around it is for people to be able to make good decision around the

risks they take. so, you know, the example i gave is when you go out driving some people don't like to drive when it's raining or snowy because it's too risky. in this case we need to give users and patients the information so that way they can determine if it's too risky for them or not. >> as a result of this, johnson & johnson reaching out in its letter giving a few things people can do if they are concerned about this. turning off the radiofrequency. do you think these kind of mitigation strategies is enough to keep this pump safe for folks? >> absolutely. johnson & johnson and rapid seven worked very hard at testing out these mitigation strategies and testing out these solutions we've published and they especially turning off the radiofrequency portion works 100% at eliminating the risk. >> did you just do this on your own or you wanted them to -- worked in collaboration with them in advance. >> i did not work with them in collaboration in advance. this is independent research.

it was my personal device that i did the research on. this is just out of my own personal curiosity how these devices work. >> meg mentioned it's unencrypted. should it be encrypted. >> these devices were designed quite some time ago. in this case in particular this device is often years old in its design. newer devices because these devices take some time to get through the regulatory process and engineering new devices are going to have encryption. as we study them and do the independent research i want to validate that. >> for the average person right now the conclusion i would draw is if i have one of these i got to have a really, really smart person nearby me who hates me, right? >> that would be the high-risk scenario, correct. like if you were a nation state leader or like the president of

a country that that would be the scenario that i would consider. for the nch every day user they need to take care of their diabetes and their health. >> some days that's my job description. >> i know we're almost out of time but i want to ask you with this idea these devices are mean to last years inside the body but we think about a 5-year-old cell phone and it would be ridiculous for a person use that. is that a problem with medical devices. they are supposed to last so long but the rest of the world advances as you're wearing your five-year-old pace maker. >> as we go forward and see these new devices coming out manufacturers will adapt to that. they will have the ability to update. they see the threats and research we're doing and reacting to them appropriately like johnson & johnson has. >> jay, good stuff. very nice to meet you. very enlightening. appreciate it. jay radcliff.

>> that's so cool. he told me when he was little he was so curious he went around taking the door knobs off the doors to see how they work. >> very good. that sound like my brother. but he didn't go on to do that. cnbc is partnering with the aspen institute and m.i.t. for the cambridge cyber summit which is tomorrow. this one day conference will bring together leaders in security, technology, defense and business to discuss how we can better secure america's future from cyber threats. for more information and if you still want to register go to cnbc.com/cybersummit. google is looking to fix its lack of hardware with a new feerngs virtual reality system and also a physical home assistant aptly named google home. will it be enough to compete with the likes of apple and amazon? mr. wonderful kevin o'leary will weigh in next. we're less than five hours away from the vice presidential debate coming up tonight and

we'll headline to farmville, virginia for the latest and what each candidate needs to do to stand out during that debate this evening. we'll be right back after this. . with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today.

liberty stands with you™. liberty mutual insurance. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line.

what's in your wallet? google captivating san francisco today with the launch of a new hardware line from the new google brand pixel smartphone. smart home hub that's supposed to rival amazon's echo. >> we'll talk about that in a moment. despite the hoopla google may seem a bit behind in the

hardware tech game leading us to ask the question is it becoming a follower and not a leader in tech land. let's bring in our friend kevin o'leary along with dan ackerman. dan ackerman, what do you think? you go down the line here. a new smartphone. we've seen that already. we got the google home. we've seen that in the amazon echo. on and on. they are just playing catch up? >> in the hardware sense. they've never bean hardware company. they are not going to be a hardware company. they outsourced the design and production of these devices to other companies. with the pixel phone and the home assistant they are trojan horses for getting google services because they are a software and services company into your house and having you use them across a whole family of devices. >> what do you make of this move, kevin? >> i don't get the phone move at all. it seems dumb. bringing another commodity toaster slab into the market which is what a new phone is makes no sense because android

itself is the trojan horse. it's on over 80% of the phones that are bought this last year around the world. you don't need to compete with your own trojan horse. if i were samsung -- >> apple makes all their money on that phone. they want to grab a piece of that. can they? >> but they don't need to. their operating system is y ubiquitous. what's interesting is google home. if you want to make money on home and the big negative on google, it's between white elephant on the stock forever. they've never been able to diversify out of that. they've spent billions of dollars on all kinds of crap like glasses and internet from space and initiatives they shouldn't have wasted on and focus on things that do work. google home. you walk in and say i want to sent flowers to my aunt. i want to fly to san francisco.

>> you have an coke? >> sorry. >> do you have an amazon echo. >> i don't yet. listen. it's really early. but the point is if you think of a company the three that will play for this, amazon, definitely apple, i expect microsoft at some point. if google can get involved in that all the services you can sell to the family that is just sitting there listening to them that to me as an investor that's interesting. the phone is crap. >> to me it reminds me of the old days of microsoft, right? with the dominant franchise you're sitting there and your company business throws off so much cash. here google sits, alphabet sits with 65% gross margins and can try whatever they want to. microsoft initial foray into game consoles and other hardware. eventually you might learn what your spot is in those areas. i just wonder if that's analogous to how google thinks about these things. >> dan your skeptical?

you open up google's numbers every quarter and you think about all the stuff, other stuff they do and you look oh, yeah this is a search company. this is what they do. can they ever be anything but a search company, dan? >> they want to be universal company. that's why whenever there's a new area of interest they want to at least get in it and try it out. sometimes when we talk about g-mail dominant force of e-mail on the planet now. when they started everyone said no one will want an online e-mail server. that's crazy. google officers. google docs. so some of these moonshots work. some don't. they want to -- every time we talk to the google home you're giving google data what you want and what you're doing and how are you different devices and your family works with them. that's valuable stuff besides selling you a plastic box. >> i would stream taylor swift not steely dan. >> i'm a steely dan fan.

i have to vote for that. >> the fact that none of this will move the needle that much on a behemoth. are we making much about very little right here >> well i have two beeves with the stock and i don't own it. one it never returns capital. i watch it waste it on these moonshots. if i were a shareholder i would be unhappy. for the first time i've seen something with google home that intrigues me as a shareholder potentially. >> you like that? >> i can think of diversification on services. i can think of 3%, 6% every year that can sell on a device that's going into the home. at some point that company heads to some adult supervision to say stop wasting money. is this negative of dual voting shares. i tell all my classes that. never buy a stock that you don't have the same representation. that's how we founded the country, remember?

no taxation, no representation. same thing with dual voting class share. >> tell that to the people in washington, d.c. >> i digress. the shareholders are okay with the stock going from 300 to 800. >> it's today's purchase you have to bother. you can always talk about the past but the new incremental dollar going in. >> ken always good to see you. dan too. >> you never know what he's thinking. time for a cnbc news update with dominic chu. >> hurricane matthew is pounding the island of haiti where there's severe flooding and wind damage already from the category 4 storm. meanwhile southern u.s. states are in preparation mode. florida has issued a state of emergency and south carolina's governor is ordering an evacuation of coastal counties starting tomorrow afternoon. staying on the eastern seaboard firefighters in baltimore are on the scene of a massive three' harm factory fire which broke out after 1:00 p.m. today.

not known what started the blaze. one fireman has been taken to the hospital for possible heat exhawks. secretary of state john kerry says russia is turning a blind eye to syrian's use of chemical weapons by giving the military support. that comes one day after suspended talks with russia. how about this, guys? want a new apple mac computer but can't afford it. try this candle. the company that makes it says it smells like one of those pricey computers brand new but only cost $24. i like new car smell but i'm not sure about the candle. >> what does a new computer smell? >> that's the news update. >> smells like inside a factory in china when you open up the box. >> there you go. well done. dom, thank you. gold falling more than 3% today. its worse day in nearly three

years and hitting its lowest levels since the brexit vote. between political uncertainty in the eu and u.s. presidential election is gold your best safety play or is there more room to fall? we'll try to answer that question with somebody who should know when we come back after this. to

>> this is the api american petroleum, the organization that represent oil companies. they say for the week we saw oil vince actually take a draw down, again crude inventories fell by 7.6 million barrels in the week ending september 30th. that compares with analysts expectations for around an increase of 2.6 million barrels. also pointing out now as well that gasoline stockpiles rose by 2.9 million barrels compared with analysts expectations of 072,000 barrel gain. so that's the reason why we saw oil prices move about $48.65 or theres about before the number around $49.25 after the number. we'll keep it on crowd oil because of those api inventory numbers.

>> if expectations were for a decline that's 10 million barrel spread. thanks for joining us. what do you make of this? >> very constructive for crude. the expectation was a build with the api numbers. that's another constructive factor. >> we're pushing up against 50. >> we've already touched it on brent. will we reach 50 on wti. there are some headwinds for crude once you get above 50. producer hedging. the api numbers only help coming on the back often peck story. >> we talked about this the last time you were here, you got the u.s. producers who will want to get back in if the market takes the price high enough? >> i think what's important so peck is not aiming for 7080. they are aiming for 50 to 60.

i think they believe that brings the permean back on. so they are looking for a price that allows them to meet their fiscal needs for saudi arabia to get that ipo off the ground but they don't want to bring back all u.s. production. >> we have a lot of confidence that saudi can stick -- opec nek to the landing. >> i think it will be saudi going to ua ercuae, to qatar let this done. >> i'll sound so smart the next cocktail party guy to we talk oil. i'll say i think it brings permean back in but leaves bachon on the sidelines. >> there was a time when oil going up was very good for the stock market. is that still true?

>> in sectors. not necessarily linked that tightly because i do think when you were near the lows for oil, you needed it to go up to rescue the high yield market and basically have the sense it wouldn't be this really chaotic liquidation of assets. i don't think it's necessarily going to take the market higher if we go to $55. but helping airlines and industrials are moving with crude oil. >> gold got hammered. down 3%. what's going on? is that a buying opportunity? >> we think it's a little bit overconstructive on gold. we just don't think there's a lot of consumer demand for gold. not a lot of central bank buying, not a lot of jewelry buying. what drove gold higher was the investor rally. if there's some other big risk event that will help gold. >> somebody was saying that in an election year that's when gold usually bottoms out. >> we have to see the result of the election.

that could be interesting depending who wins it. that could be the risk off opportune. >> thanks. >> good to see you. >> the old adage in politics nobody votes for the vice president. but this could be the first election that it turns on its ear given the unpopularity of hillary clinton and donald trump. we'll preview tonight's running mate debate. >> facebook and google could be causing problems for bay area restaurants. wait until you hear what's going on out there. it's coming up in just a moment. ♪ bottle of white ♪ a bottle of red ♪ perhaps --

upgrade your phone system and learn how you could save at vonage.com/business [ that's a good thing, eligible for medicare? but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs.

call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra.

the cash rewards credit card from bank of america. more cash back for the things you buy most. one candidate has been called the step dad next door. the other has the secret service code name hoosier. >> both democratic vice presidential nominee tim kaine and his counterpart mike pence are veteran political hands in their state houses and also on capitol hill. both have a job to do tonight. john harwood is in farmville, virginia the site of night's vice presidential debate. he joins us what both men hope to accomplish. john? >> reporter: well, michele, to answer the question you posed before the break, i don't think very many people are going voting one way or the other based on the vice presidential nominees because let's face it as you said tim kaine and mike pence are bolt extent politicians but don't suffer an

excess of pizzazz. they are not like joe biden and sarah palin who in 2008 held the most widely watched vice presidential debate in history. we'll see what numbers they get tonight. donald trump said today he's going to try to help that out. he sent a tweet a short while ago saying he's going to be life tweeting the vice presidential debate. in the end as both candidates try to prosecute the case against hillary clinton in the case of pence or against donald trump in the case ever kaine they are going to be playing against the backdrop of these huge personalities and figures at the top of the ticket and let's take a look at where they stand. the nbc survey monkey poll just out today we have hillary clinton with a six percentage point lead in a four way race over donald trump. she also has an advantage if you look at the real clear politic averages in those battleground states, 14 battleground states,

hillary clinton leads in 11 of those states for a total if the election were held today based on those polls 322 electoral votes. donald trump has got work to do between now and election day, between now and sunday when he has the second debate with hillary clinton and he hopes to get a little bit of a boost from pen pennsylvania perhaps prosecuting the case on trust, e-mail, honesty against hillary clinton that donald trump didn't do so well with in the first presidential debate, guys. >> and, mike santoli and i were talking about this earlier. we believe they set the sights for the various debates before we knew who the nominees were going to be because clearly this becomes a home game for tim kaine tonight. >> reporter: it is a home game for tim kaine. the debate commission is pretty good about not having an audience that is stacked for one side or the other. you know, they discourage applause and that sort of thing. these tickets go out to supporters of the debate commission, some to the

campaigns. but there aren't a whole lot of rooting sections at these debates and republicans would have grounds to complain if that's something that develops tonight but i don't expect it. >> any potential market impact, mike santoli from this? >> i don't know. i guess the question is doe it have the potential to reorient the prevailing conversation at all on policy lines, on anything else or make it seem like a tighter race. fit seems like a tighter race then it has market implications yes because i don't think the market is assuming it will be. >> what are the chances of that. how often does a vice presidential debate make anything change in the presidential race. >> reporter: rarely. what campaigns look at the vice presidential debate as is an opportunity to clean up if the presidential debate didn't go your way. four years ago for example you had joe biden trying to stop the bleeding for president obama after he lost that debate to

mitt romney. the same thing happened in 2008. you had or excuse me in 2004 when george w. bush was beaten by john kerry in the first debate and dick cheney came out with a strong performance against john edwards in the vice presidential debate. >> thanks, john. >> thanks very much. >> you bet. bay area bistros are losing their top talent to tech companies. what are they doing to fight back? fun story when we come back. about it 'cause everything isoy unlimited. i need data and i need it now. it's the end of data limits for your business. get unlimited 4g lte data as low as $30 bucks per line. switch your business to t-mobile @work.

the housing market is not the only casualty of the big tech companies crowding silicon valley. restaurants are now facing stiff competition to hold on to their

workers as they leave for the kitchens and dining rooms at the likes of google and facebook. >> aditi roy has the details. aditi. >> reporter: hi, guys. yes, i'm here at the cafe in san francisco, and it's a brand new restaurant, and it's just down the street from twitter. and the program here tells me that one of the big problems is actually companies like facebook or twitter or google coming in and squeezing them out. they're having a tough time staying in business. a lot of restaurants are. the owner has four restaurants across town. and in the last three years, he's actually lost four cooks to companies like facebook and google that have signing options for the employees, enticing staff silicon valley restaurants. he's not alone. we talked to a lot of restaurant owners across the valley feeling the squeeze from tech companies. in palo alto, 70,000 square feet of restaurant and retail space was lost to office space between

2008 to 2015. he says he started treating his company like a startup to fight back and offering employees perks from gym memberships and classes, but it's still hard to compete. >> if you're interested in food, you could work for sprint or blue apron for twitter. there's a lot of options where you don't have to work nights, weekends. you get holidays, vacation. you get comparable pay. it's a tradeoff for people so interested in culinary but want to go that route. that didn't exist five years ago. >> reporter: and he says that those perks are keeping his staff around a bit longer, but the root of the problem still exists. and guys, this really speaks to the latest iteration of that fundamental divide between the tech haves and have nots that's taken so many forms here in the valley. back to you. >> well put, aditi. what do you think when you see stories like this.

meh, meh, market peak! >> it's a distorted micro economy there. they're going to have to resort to sort of importing labor. >> in this case, though, i understand that one tech company crying foul and another tech company poaching employees. but a restaurant, there are people behind lined up for the restaurant, you would think, right? >> i understand the restaurant not being able -- a higher-end restaurant not being able to maintain experienced staff when you have the company over there offering you benefits and stock options. >> absolutely. >> and you don't have to work nights or weekends. >> everyday kitchen staff and things like that. >> but the stories about the buses, the stories -- all of these stories are so reminiscent of 1999, the traffic. you can't get -- enjoy it while it lasts. and i hope it lasts a long time. >> yes, you do. developing story on microsoft. dominic chu has that story. >> it's about technology, but

tied to the story we brought you earlier about reports from reuters that yahoo! may have been engaging in e-mail scanning for users accounts on behalf of the u.s. government. those are all reports citing sources familiar with the matter. now we at cnbc reached out to microsoft to ask if they did anything of the sort. microsoft spokesperson did respond to cnbc by saying, quote, we have never engaged in the secret scanning of e-mail traffic like what has been reported today about yahoo!. and, again, that's according to a microsoft spokesperson. also worth pointing out, we reached out to verizon for a comment, in the process of buying yahoo!. they have declined to comment on the situation as of now, guys. back over to you. >> that's two strikes now, right? on yahoo!. dom, thank you very much. first the credit card -- >> yeah, the hacking. >> the hacking. the e-mail accounts. and now this. >> of course, all these companies were under a bunch of

pressure. >> i see the purchase price going down and down. >> we'll see. this is less something that necessarily -- who knows. it does seem like something not necessarily -- >> don't forget turning in the dissident in china. google announcing reality hardware today. mark cuban weighs in on the reality. that's next. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪

one, two, - wait, wait. wait - where's tina? doing the hand thing? yep! we are all in for our customers. ally. do it right. we are all in for our customers. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away.

with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. it begins from the the second we're born.er. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen.

there's virtual reality and augmented reality which i'm an active user. people think pokemon just sets the stage. but really i think the grand slam is going to come from deep learning, machine learning. i've got a lot of investments in machine vision and deep learning. because as we create more data through our own use, through apps, through bots, sensors, that data can be processed now in ways that we weren't able to process before. >> that, of course, was billionaire mark cuban on the next big thing in tech. catch jim's interview in its entirety tonight on "mad money" at 6:00 p.m., eastern time. final thoughts. >> mark cuban is always a great interview. says whatever he wants. >> he stays pretty excited. still very scared. but you can play it both ways in terms of the data we're going to be accumulating about us. >> too much sometimes. i get very worried.

>> i'm not personally worried because i don't think i'll participate. >> i'm not worried at all. we'll be back tomorrow. somebody else with out at that time. we'll find out who it is at that time. that's it for "closing bell." "fast money" begins right now. >> enjoy. . "fast money" starts right now. live from the nasdaq market site overlooking new york's time square. pete najarian, tim seymour, tim nathan and guy adami. of google launches a new of new gadgets, but can they compete against the likes of apple and amazon. a top strategist who called the summer rallies stocks are gearing up for a move higher in the next two weeks. what's he looking at? he'll be here to explain. and later, there's one beaten down name that's got guy adami pounding the table. what it is and why he's excited. first we start off with the market. the action wasn't in the stock market, though. check out the yield and