there was no electricity. we are watching the storm. it looks like it will be a mammoth one when it hits the eastern coast of florida sometime overnight. stay tuned. if you are in that storm zone get out. >> thank you for watching power lunch. "closing bell" picking up coverage right now. and welcome to "closing bell." >> hurricane matthew is a cat 4 storm heading for florida. dire warnings from governor rick scott telling residents in evacuation zones this storm will kill you. we are live in daytona beach with the latest details. >> thousands of flights have been cancelled. we have institutional investors to tell us the impact this storm could have on some of the big carriers. in other news, facebook's mark zuckerburg doubling down on

the company's commitment to virtual reality announcing a new occuls head set. the ceo will join us in an exclusive coming up here on "closing bell." >> and an ugly day for twitter. shares plummeting on reports that alphabet, disney, apple, none of them interested in buying the company. we will talk to a shareholder. more on hurricane matthew as it barrels towards the southeastsoutheas southeast. morgan bren has the baitest. >> the winds are certainly starting to pick up. we have president obama signing that emergency declaration for the state of florida a short while ago and florida's governor rick scott just really stressing the gravity of this situation. million and a half people are expected or being urged to evacuate along coastal areas in

florida. more than 2 million people throughout the region. i want to show you this. this is daytona beach. as you can see this is really turning into a ghost town very quickly along the beach. we have all of these businesses here boarded up. we have sand bags. if you go back blocks off the beach you see a similar situation. there is a big restaurant on the peer. this is going to be these types of pier businesses something to keep an eye on as the category 4 storm rips through here. governor scott really stressing the gravity of this situation. one thing he talked about was the fact that millions of people are going to lose power. saying you are going to lose power. expect to lose power. we are already seeing that happen south of here in south florida in parts of palm beach, miami dade county. we have thousands of people reporting power losses. florida power and light which is the third largest electric

utility in the country is saying that they're expecting 2.5 million people to be without power out of their 10 million customer network. they are saying some customers should expect to be without power for a long time as they rebuild parts of the network. they have 10,000 workers on stand by and ready to go after the storm pulls through. in terms of economic impact of this we don't know what the damage is going to be. we know this is very severe. it is the most severe storm we have seen in more than a decade here in florida. with a million people as of yesterday evacuating that with just a million people moving out of the area and businesses closing down and people not going to work that alone contributes to more than $100 million in economic losses a day. as i mentioned, it is really starting to quiet down here. this scenario is an evacuation zone. that goes into effect at sunset. >> we have a number of very

knowledgeable guests on speaking to the path of the storm and population density is so high that considering the strength of it it will easily make a top ten storm because there is so much infrastructure in the path of it. >> that's exactly right. i have been hearing the same thing on the ground here. some saying this could be in the top five storms. just to put that into perspective, data from the insurance information institute, sandy was $50 billion in insured losses. we have had a number of others including -- i meant katrina, sorry. sandy was about $19 billion in losses. this is being compared to some of those mega storms we have seen over the years. >> morgan, thank you. stay safe you and your team. we'll be checking back next hour. >> the mayor of west palm beach, florida, will tell us what her

town is doing to stay safe. market stories today, the big one today west texas crude oil topping $50 a barrel. >> we haven't seen these levels since june. we broke the level today. no surprise and we held for the close. it was about a 1.25% move. we just talked about hurricane matthew. that will have an impact. not in the gulf coast. that is not what is moving crude higher. it is euphoria off of the opec deal and the inventory number yesterday. this idea that demand may be picking up and that is certainly a positive thing for crude prices. the majority of people that i have spoken to say they don't believe this is going to be long lived. they question whether opec will execute that deal at the end of november and they say that

higher oil prices will incent vise nonopec producers to continue to pump oil. also we have jobs report tomorrow. we have seen strength in the dollar ahead of that. it seems like dollar strength and oil have decoupled here. a trader says it all matters or doesn't matter until it does. when the dollar kicks into crude we could see it lower. we have opec deal. we have inventories down, demand going up and technicals and momentum will drive us higher. the bears are saying nonopec production is a problem. u.s. dollar strength is a problem and the resistance level around $51. you have two strong cases watching to see which one plays out. >> we will. thanks very much. let's get to "closing bell" exchange for thursday with the dow down seven points. it has been a bit of a volatile day for the stock market.

a familiar face with a new name. >> congratulations. >> thank you. >> next to her is jonathan korpina. >> name didn't change. >> and rick santelli joins us from chicago where he can't decide if he is more excited about tomorrow's job report or first playoff game. john, the dow down over 100 points a couple of times then we came back. what is pulling the market? >> we have seen volatility. i hate to sound like a broken record. last week i was talking about how the market has been stuck in such a tight range. all week long we have been back and forth. i think investors are looking at a bunch of different things out there. clearly we had chatter that was out there that fell through. we have oil trading above $50. we have jobs numbers tomorrow. i think all this kind of pulls the market in different directions. it is miraculous how we always

come back to the same range looking down the road we have the presidential election coming up. investors are somewhat forced into waiting this out. we are in the first week of the new month, first week of the new quarter. there is no urgency just yet to do anything. >> when i look at today's trade i think this is exactly what happens the day before a pivotal monthly jobs report where everybody is waiting to see what happens because they know that is driving the fed. >> what is going to change between now and september and the fed has not hiked and december. there aren't a lot of major economic data points. i understand tomorrow we are looking at to give us clarity. not the number whether 170 or 180. i don't think that is as important as wage growth or revisions. i think that is more important than jobs data itself. as jonathan said aside from the elections between now and december there aren't many different economic indicators

that would make the fed change their tune. >> you said earlier this week you thought we were higher for longer yields. have we seen the highs now? are we destined to be stuck in this trading range where we have been as the stock market has? >> you have the pieces of the puzzle brought up by all the guests. this is not unusual to see somewhat extremes in various markets as you go into a jobs report, not because all the jobs we have created have helped or increased productivity but because it play effect the short termism that we call fed normalization. i think that is an important piece. to answer your question directly i think we are going to blow through some of these tops but a very, very weak report tomorrow might buy us more time. consider this. after the low yield, the forever low yield that 136 was established i believe july 8, the highest yield close we had

since then was 173 on the 13th of september. brexit high yield closed before we found out the results of the vote was 174. these are crucial levels because we spent literally six weeks trading in the 150s and those positions are getting uprooted. the other thing that we need to mention is the dollar strength. the dollar strength makes sense when you look at interest rates and whether you look at what is going on in our country or europe or the uk. to see the index moving up there are tremors going on and they are showing up in very strange relationships. >> both the dollar -- you are looking at dollar strength prices and wages. they have prices are going down. you are seeing deflation and not inflation. it is negatively correlated to unemployment which unemployment

has been going up. that's another negative situation for the fed to be in right now when you have unemployment wages and prices due to dollar strength negatively correlated right now. >> thank you. good to have you. >> thank you. we have 50 minutes left in the trading session. this market now looks like it is waiting for a big moment as you were suggesting with the jobs report tomorrow thmpt dow down just 13 points. >> up next, two potential big name bidders for twitter reportedly out on the running sending twitter into a tail spin. the third one didn't look so good either. twitter shareholder tells us whether he will cut losses soon. >> big change in the last 24 hours. the ceo of ocullus will speak with us on the sidelines of his company's developer conference. we will discuss facebook's big bet on virtual reality.

as a supervisor at pg&e, it's my job to protect public safety, keeping the power lines clear, 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 with the dow down 18 points those are all 30

dow components. american express is among the laggers. downgraded stock to reduce from neutral and trimmed price target to $56 a share from 62. you can see trading just below 62 now. the firm says it expects amexbillings to lose market share for a fourth consecutive year as revenue comes in softer than expected and expenses higher than expected. never a good combination. >> news alert on the parent to snap chat called snap inc. josh lipton has the story. >> you might soon be able to buy a stake in snap. so the company is working on an ipo that could value it at $25 billion or more according to the wall street journal which says the ipo could take place as early as next march. snap inc. is on track to do more

than 350 million in revenue. it last had valuation of 18 billion in may. the company declined to comment on this report. still tech investors are looking forward to companies like snap chat actually deciding to take that public market plunge next year. cooper software was one of six that did ipo in 2016. nobody else is publically even on file. some vcs do believe brighter days are ahead. they point to recent success stories like trilio. for many big consumer facing companies they through might not be much pressure to ipo. uber and air bnb have no trouble raising billions of private dollars. a few on the ipo radar. guys, back to you.

>> thank you very much. josh lipton on the new ipo coming our way. >> twitter shares on track for the worst day since april of last year. reported that google and disney will not be make ag bid for the company although it did come off lows this morning when our own david favor reported there is no deadline for bids for twitter and there are still other potential bidders. that one is still up in the air. >> what do shareholders do? joining us now is twitter shareholder robert luna from sure invest. >> the good thing about being a shareholder is the pain that we have endured has left us numb to days like this sdplmpt with we asked on the air, there was a lot of skepticism about whether or not there was really a lot of buyers out there. you can take the money and run right now. you have this big bang, more than a billion increase market

capital. do you wish you had sold it? >> i would be lying if i said i didn't. down 20% today is a bit of pain. when you are looking at twitter you have to look at a company that has $3.5 billion in cash. it is a $15 billion multiple. i get the news but the fact that google is completely left the building i don't know that i buy that completely. you talked about sales force. sales force is a company looking to help their customer make very informed accurate decisions about their clientele and those clients are on twitter talking about things that they are buying. the information that is there on twitter is very valuable and i don't see this company going for anywhere less than 20 billion. >> i don't have great insight other than when i heard that disney frrks example, especially had decided not to make a bid. that said maybe thought got a look at the books and didn't like what they saw. >> maybe the price is too high and they just walked away.

>> how much could be the reluctance to sell the company? >> this stock came ipo at 26. we are 30% lower than that. the optics probably isn't great for his ego, as well. i don't know how much of that has to do with it. you have to look at where the stock is at today. maybe we get to 18, 19 on the low end. there is 25, $26 i think in the stock in the next month. >> if it goes to 18 do you throw in the towel? >> i would have to look at the news and why did it go to 18? is it a year from now and haven't found a way to monetize? >> is that twitter's problem? >> it is. >> that's the very bottom line. my thesis for the company was what we are looking at right now was i thought they would get revenue further along. so now i'm looking for someone

to take them over today. you need a bigger company like google to unlock that potential. >> do you have a favorite? >> i'm a google shareholder. >> does it matter? >> if you are just a twitter shareholder no. i think google has had issues, too. it would be a great acquisition for google. >> good luck. >> thanks a lot. >> we have about 40 minutes before the closing bell. the dow jones industrial lower by 19.5 points and s&p is lower -- higher than a little more than one. >> there you are. now you can see. >> barely flat. that's what we call a mixed market. >> what is the outlook for airline stocks as crude oil prices creep higher? we will get answers from the number one analyst cov rring the airline industry. julia boorstin does a virtual reality check with the leader in the industry. that is why she has those cool things on her face.

>> aren't these awesome. i just got a demo of the newest virtual reality experience. we have an exclusive interview coming up after the break. they may want the latest products and services, but they demand the best shopping experiences.

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shares of tesla lower after goldman sachs downgrade from neutral to buy. citing cash flow concerns among the combination with solar city which has been so controversial. >> you think? >> meantime, virtual reality is in the spot light at the occulus connect three developer's conference. mark zuckerburg expressed the importance of this technology. >> we're here to make virtual reality the next major computing platform. and at facebook this is something we are really committed to. that is why today i am proud to announce that we have already invested more than $250 million into this community to fund the development of all kinds of content from games to media and more. so we are very proud of that and excited to announce that we are

committing another $250 million to fund even more content development from folks in this community. >> that's a lot of money. >> thanks so much. brennan thanks for talking to us about the announcement today. you unveiled a bunch of social components to allow people to interact in virtual worlds. in a day and age where people can do google hangouts who is spending to have those experiences? >> there are a lot of vr enthusiaenthus enthusia enthusiasts. we have seen a huge amount of adoption of vr. this is a dream so many people have had that one day we would finally step into that virtual reality world. now it is a reality. now it is possible. >> your high end head set is over $1,000. how many people do you expect to buy it in the next year?

>> it will start small. year over year it will continue to grow and continue to double into something incredible. we have multiple versions of vr. we have the rift on the pc. you can get a pc plus rift for around $1,000 now which has come down a lot. you can get into vr for just $99 on the gear vr with your galaxy phone. we have seen millions of people jump into the gear vr. >> want to jump in here? >> i sure do. don't think this the wrong way. i'm curious, convince us that vr is not a fad. >> so vr we are starting really early. this is the very beginning. if you think of it like the apple two days this is going to continue to grow. it is going to continue to mature and the technology will get a lot better. we are right at the beginning where it is good enough for

enthusiast audiences to jump in and enjoy the product. it's not ready for the mass market for hundreds of millions of people. it will be in the future and that is what we are determined to deliver. >> what is vr in the future? right now we have people standing around with the glasses on doing the thing with the head. ten years from now is this in the operating room? what are the potentials here we should be thinking about? >> so think about just 20 or 30 years ago none of us were walking around with cell phones glued to our hands. think of how much time you spend staring at your screen. we did not live in that world a few decades ago. the glasses of the future can actually deliver the interface in a much more natural way than having to hold this phone. imagine that information just beamed into your eyes and you

can get information on anything, on people, on places, your contacts, messages. there is just this incredible world ahead that we are looking to deliver. >> i just got a demo of a new vr head set. it's an untethered head set. it was very realistic. i was afraid i would fall off the edge of a building even though i was just in a room right here. will it be lower cost? and how big of a deal will this be for the bottom line? >> we continue to try to push the industry forward in terms of the innovation, content, platform and what you saw is called our santa cruz prototype. this is a future prototype that shows inside out tracking. it looked a lot like a rift. we modified it and added a full computer plus inside out tracking system so you can walk around, look around and it tracks your position. that's not available on mobile today.

that's only available on rift. with the new mobile product you get that kind of quality, lower fidelity but rich quality in an all in one product. >> do you feel pressure to introduce this in a lower price point on the heels of google introducing the lower cost option? >> what google introduced is in line with the gear vr. they have a phone drop in. i don't think there are electronics in the head set. it is a simple device. that is in line with what the gear vr is. gear vr i believe delivers a better experience. the santa cruz prototype has an entire computer built into it. it is all in one vr device. this is not a product right now. this is just a prototype. a glimpse of the future. those future glasses that we want to wear that will be an all in one device much like the

stand alone. we look forward to seeing them. >> bill and michelle back to you guys. >> thank you very much. by the way, virtual reality is expected to grow into an $80 billion industry by 2025. you can check out the virtual reality index. it's lower today but it has been rising over 20% since the summer time. 15 companies make up the vr index. the top five by weight are go pro, advance microdevices, 3 d systems. here is how they rank by performance. go pro thunderstois the winner y amd, 3 d systems.

>> it was barbara ela. >> time for cnbc news update with sue herrera. >> here is what is happening. president obama declare ag state of emergency in florida as hurricane matthew barrels towards that state packing 140 miles per hour winds. white house spokesman josh earnest said the storm is poised to cause significant damage. >> people need to be making preparations and following orders today. the storm is likely to begin being felt this evening and throughout the course of the day those of us who don't live in potentially affected areas will be sending prayers. >> the united nations formally approved former portuguese prime minister antonio guiterres as next secretary general. summer infant is recalling about

86,000 infant bath tubs due to risk of impact injury and drowning. the tubs were sold at toys r us, babies r us from october 2012 to october of 2013. that's the news update. i'll see you in an hour. >> thank you very much. as we head to the close we are going to the last half hour of trading with dow down just 21 points. a leading trader will tell us what he is watching. we will speak with newly named number one airline analyst on wall street for his top picks. you both have a perfect driving record. until one of you clips a food truck. then your rates go through the roof. perfect. ♪ for drivers with accident forgiveness, liberty mutual won't raise

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smith and wesson trading lower. downgraded from hold to buy the firm cut the gun maker's price target to 29 from $36 a share and it is trading at 25 right now. >> less than a half an hour to go in trade. steve grasso joins us, cnbc contributor. i know we were down this morning. the way we are trading into the close feels how it is supposed to be the day before the jobs

report. we going to see the number at 8:30. >> if you are looking at this you have to look at it through the prism of being interested in the fed. the fed has been the best catalyst for this market to go up and down whether rising rate cycle. so that has really led this market. having said that i think opec has taken over. opec was the catalyst for the risk on trade. still coming out of high yielding names. >> at least until november. so we get a reprieve from that. it's a risk on market. the market is jittery. if oil still performs the market still performs. >> thank you, michelle. institutional investor out with

the 45th annual all america research team. it is ranking of analysts. the airline sector saw a change at the top this year, hunter kay from wolf research named number one analyst for airline industry on wall street. hunter joins us to talk about his research and what he likes right now. congratulations. thanks for joining us. >> thanks, bill. >> do you like the group overall right now? >> we love it. i think that prazm is probably bottomed. incremental margins are now negative. fuel prices are flattening out. you will see a lot of marginal capacity that the airline has added come out. and when they do that you will have a supply and demand dynamic much more balanced and see gradual improvement in pricing. multiples dictate the vast majority of how they trade. >> let me push back on fuel

component of that. we are going back to multi month highs. wouldn't that be a problem for them? >> the opposite is true, my friend. oil prices can't go up fast enough. we have been talking about high oil prices being good now for a decade roughly. it's true. >> why? i don't understand. if it cost more to put jet fuel in the jet -- >> you're thinking about it too simplistically. multiples drive about 70% of movement in stock prices. pricing power is dictated by capacity control. excess capacity drives pricing down. earnings up 82% for airlines last year. it is not about profits. it is about how they make the profits and about pricing power. capacity, discipline and fundamental behavior is far more important than the amount of money they earn. it is nothing to do with

estimates or margins or how much money you make, it is about how make it. >> you like alaska. i have the list here. alaska air which everybody loves. i don't know anybody who doesn't like -- you like the whole group practically here. >> we like them a lot. probably i think united and american are two that jump out the most. american probably a little more near term. when you get into next year and beyond i think united has a lot of juice behind it. overhaul the board. there is revenue and cost story developing. i think you will see good momentum behind them as they close the margin gap as we move through '17 into '18. >> if you think jet fuel doesn't matter in terms of pricing the storm doesn't either. any impact from the hurricane? >> i don't care about the storm. i don't track it. it doesn't matter.

>> hunter kaey is very blunt. i like it. >> i knew you would. >> how tall are you? >> 6'1". >> so an interruption in service like this for you on a quarterly basis in the scheme of things it doesn't mean a lot to earnings down the road. on a quarterly basis you don't think they will take a hit? >> no. don't care irrelevant. superstorm sandy that is relevant. >> why was sandy more relevant than matthew. matthew is huge and will go through a huge swath of florida and will cause a lot of damage. >> new york is an important business market for more and far more damage in new york. new york is the single largest aviation market in the world. la guardia was under water. it is more important than a few

vacations being ruined in florida. i'm not trying to trivialize the damage. >> the number one airline analyst on wall street. >> 19 minutes before the bell. last time we checked the s&p was higher than one point. wal-mart shares falling on news of the company slowing store openings. more on what is behind that decision next. major changes at controversial consumer health tech firm changes that will cost hundreds of jobs. we have details on that still to come. stay with us.

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shares of whole foods rising from four-year lows it hit yesterday amid rumors of potential takeover by kroger. kroger shares up by almost 2%. whole foods expect today report earnings on november 2. wal-mart shares are down as the retail giant holds its investor day to lay out plans for next year and beyond.

>> courtney reagan joins us now with more. >> the big focus was on growing its digital business. wal-mart ceo says wall administer is the second most traffic site but 90% of sales are in store. the current store strength and cash flow will be plowed into e commerce efforts as wal-mart builds fewer stores. the jet.com acquisition, investors heard a bit from him. he half joked he assumed the role of more his body guard. >> one of my responsibilities in this relationship is to try and protect mark and jet from the wal-mart bureiocracy that exists so they can continue to move with speed and continue to innovate. >> wal-mart's online sales have fallen short of aggressive 20%

to 30% growth target. executives reiterated it is aimed to hit the goal and the next two years. moody's analyst says even if the low end of that 20% growth range could be hit it is impressive and that would sufficiently justify the increased investment in the online channel. >> i heard an analyst ringing hands over the fact that costs have been going up because of investment. i think that is a smart move for the long term. >> wal-mart says they can be more efficient with their sga costs and able to be a little more flexible and plow more money into e commerce strategy. interesting because wal-mart gave some long term targets but not a ton of detail in between on purpose saying we need flexibility to make changes. we don't want to tell you we are doing a, b and c and then change it up?

>> you said it was second most trafficked site. >> i e-mailed and said i want to get clarification on this. they haven't answered me back. i think it is safe to assume that it is amazon. it is probably just world wide. he said it in the presentation today. second most trafficked site thanks to efforts of neil ash who was running the commerce and now he stepped aside. >> thanks. >> we have 13 minutes before the closing bell. dow jones industrial average lower by 13.5 points. >> our next guest has small cap blue chips that he feels could bring big returns. we'll talk about that when we come back.

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. he 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 oof that looks aren't everything.

thank yo 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.

. about ten minutes left in the trading session with the dow down just 18 points getting ready for that jobs report tomorrow morning. joining us on the floor of the new york stock exchange, lamar, how much do you think the market cares about the jobs number? do you care? >> we do not. we're bottoms up stock pickers. we look at individual names. macro data points are not where we're spending our time. >> so when do you the bottoms up

analysis, where are you ending up? >> we're struggling, but we only have to find 20 to 25 stocks. but generally in the smaller cap stocks, looking for up discovered gems. >> and there is one from the past i saw on yours list, taser. >> we do. >> used to be very controversial. >> used to be controversial and it's controversial again. the growth now, it's not from -- the controversy before, will they buy the nonlethal weapons and they did. and the controversy how is the body worn cameras. that is where the growth is coming from. so we think that is an area where we'll see a lot of growth. >> and they're hoping for annuity stream off of that, right, to run off of a cloud based service to load up the video. do we understand that? so not just a hardware company, it's a whole solutions if they get it right. >> that's right. the cameras themselves are a commodity. that was our first question, why not just buy a gopro. if you have 1,000 officers taping 8 hours of video every

day and you have to keep it for five year, you need help with that. so their evidence.com service is basically a cloud offering. so we think that it will be a long term very profitable business. >> and there is sois another na. >> yes, online education company. usually you position it's a little cheaper. but they partner with name brand universities like yale, north we were northwestern, schools like that, and people pay full price and they get the full degree, but they do it on their own time. >> i know you're a bottoms up kind of guy, but we've been focused on this rotation out of intra sensitive stock like the utilities, people worried about the long end of the curve rising. that has to drip down in some way to your analysis in terms of what you think about stocks? >> it does, but being smaller cap, we don't really have as much of those dividend paying

stocks. so while it hurt you -- >> about what do you do for earnings? >> it is an important question and we're having a tough time finding great value. but we're able to find here and there some interesting opportunities. >> steris, you call it a boring company but i love boring companies. >> right. it's focused on prevention of infections and stuff like that. so if you go into a hospital, if you check in as to a hospital [, there is a one in 20 chance that you will get sicker than when you went in. it costs the u.s. economy $45 billion these health care providers. so steris got beat up after the brooeks vote even though they're not really a uk company. but 80% about of the revenues in the u.s. so a great cash flowing business and they're growing and they pay a 1.6% dividend. but generally speaking we're more focused on growth.

>> thanks, lamar. we have 7 minutes left, 10 points. we'll be back with the closing countdown in a moment. and also the mayor of west palm beach will join us about how her city is preparing for this huge storm. don't move. what's the value of capital? 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

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about 3 1/2 minutes left in the trading session here. bob pisani joining me. sure feels like a market getting ready for a big report. the jobs number tomorrow morning. >> yes. but as we've been pointing out, there is rotation going on, so remember, in with energy, in with banks, in with technology. those are the market leaders. >> out with utility. >> utilities and telecom. volatility this morning, we were down 118 at the low and then suddenly back almost in neutral again. >> some talk over in europe that they was concern about them tapering, and i think that kind of moved the market just after the european close. $50 a barrel now for wti. brent is around $52. but the climb continues as they get ready for the opec meeting to decide officially what they will do about production here. but the market is buying it literally. >> psychologically $50, that is a very important number overall

and energy stocks have been moving up ahead of all of that for the last couple of weeks. he we even had new highs. eog, some of the small e and b companies. >> what also is climbing, long yields. ten year got to 174 last i saw. in fact it may -- yeah, still holding there at 1.about74, whi rick santelli pointed out is a significant number. that's what we got up to around the time of the brexit vote before we collapsed again. so we'll see what the jobs number does. what is the expectation? >> 172 i think right around there. but again, another rope why the banks have been doing well and interest rate sensitive stocks competewhy the banks have been doing well and interest rate sensitive stocks compete ing against the yield have not been doing well. >> so now why not? we get that number tomorrow morning. >> get the number and we'll see how we're doing. >> we've gone through this rodeo so many times here. >> remember the ism services number that we had in week, the best percentage move up i think in its history. we had some good economic numbers recently.

depending on the jobs report, may really -- now the question is about with the bulls what they're really worried about is obviously the fed is the biggest mover of volatility of anybody. nothing else comes close to that. the debate now is we have a good move in tech, but good moves in banks, those are big sector. are those sufficient. i have doubts about that but certainly the market is holding up right now and at least where the fedded may raise. >> but we all acknowledge we've been stuck in this trading range. we're back in the upper end of that trading range. but not only for stocks, but for yields on the treasury yield curve. so if we get a breakout tomorrow, we'll see if the jobs number can -- >> the ipo market, keeping it hopping again. >> here we go again. >> we had a garbage collection, advanced disposal services.

strong today. and desalination up 23%. and we'll talk more ipos tomorrow. a camping company tomorrow. >> thanks, bob. we'll see you later. down ten points on the closing. advanced disposal ringing the closing bell today at the new york stock exchange. stay tuned now for the second hour of the closing bell. welcome to the closing bell. i'm michelle caruso-cabrera. here's how we're finishing the day. dow jones lower by a little more than 11 points. the s&p finishing higher by one point, nasdaq lower by nine points. we're keeping close watch on hurricane matthew as it approaches florida. coming up, we'll hear from a florida insurer about the potential costs of the storm. mayor of west paul beach will join us, tell us how she's preparing and what residents should be doing ahead of the category 4 hurricane. joining us on the panel today

here at the desk, mark santoli, jim bianco, who has been talking about the cubs since he sat down, and for more on today's market action, guy adami. mike santoli, the overall numbers. kind of flat, but a lot going on underneath. trends that we've seen all week. >> first of all, down more than 100 points on the dow at the open. and we did come back from that. i do think that below the surface you've had this continued maneuvering away from the pure yield sectors and into more cyclical stocks. today the big banks within the financials did pretty well as though yields edge up. i think the markets are methodically pricing in slightly higher chances of a fed move. but it's not decisive. tomorrow's number matter as lot. and the market always pulls itself into a neutral spot. >> and you had to be happy with the results of the last night's

game cubs/giants, what do you think? >> you're right, you saw me on twitter last night. i'll say it right now, i i'm no melt fan. i loath the mets. but i respect their fan base and their organization. and i got to tell you something, thor pitched his you know what out. bumgarner was going to pitch in the 15th if it went that far. nobody was beating him last night. so who do i like cubs/giants? cubs. team mu team of destiny. they're stacked. >> and i couldn't agree with you more. the cubs have it. we haven't had the could you bes in the world series since the invention of television. this is a big deal. >> tell me there is a correlation to the stock market then. >> it was 1929, 1945 and the market doesn't do well when the cubs invade the world series. >> what did the market do in 1908? >> we had a panic. usually the world is having a

big problem every time the cubs make the world series. but they haven't made it very much lately. >> iron man, 8:30 tomorrow morning, what are you going to do when the jobs number comes out? >> probably going to hide under the covers to be honest but. becau with you. i think if you even told me what the number was going to be and you saidbut. with you. i think if you even told me what the number was going to be and you saidut. with you. i think if you even told me what the number was going to be and you saidt. with you. i think if you even told me what the number was going to be and you said. with you. i think if you even told me what the number was going to be and you saidwith you. i think if you even told me what the number was going to be and you saidwith you. i think if you even told me what the number was going to be and you said with you. i think if you even told me what the number was going to be and you said -- i'll get it wrong. when you think a number looks great for the market, the market sls off and vice versa. so i got to tell you something, i have not a clue how the market is going to react, but i got to tell you one thing. volatility is way too low it for the environment that we're about to find ourselves in. so i don't know what will happen, but i wouldn't fade whatever direction that market starts to move post-number, don't fade it, because it will continue on the direction it is headed. and i wish i can could tell you which way that is. >> what do you make of the rotation that we've seen going on hoibehind the scenes? >> i think the big driver has

been central banks. i'll use a phrase i would when i'm with santelli in the morning, not santoli in the afternoon, is that all central banks is if you thinkle. doesn't matter who does it as long as somebody does it. and in the last year, it's been the bank of japan and ecb that have been stimulating balance sheets have expanded fastest since the post-crisis era. now we're wondering if it's ended. and the days we think it's going to end, everybody runs away from intra sensitive, on days like today when we think that maybe it won't as kalt trocatastrophi think, we run back to the banks. so we move in concert with each other. >> what do we make of the word that twitter had that the bidders have dropped out of the race? >> it seems as if about half of the takeover premium that had been built into twitter if there was perhaps an auction going on has been bled out of the stock. we had a guest analyst talking about how alphabet was the obvious buyer. to me that is the biggest

takeaway. if in fact goiogle is not interested and there is a 5 company that could buy twitter without a hiccup, i think it's back to maybe more of a strich in terms of how you get that valuation. but i think this is a process and i don't think the process is over in terms of inviting over interest. at price, it does go. >> guy, the twitter trade? >> listen, i understand that the sell for twitter, i understand the run-up into all these rumorses but i think where there is smoke, there is fire. it never made sense to me sales force. i think they were just chatting it up. disney sort of made sense to me, a lot of people shot that down. now all of a sudden i see ibm which makes no sense to me other than the fact that maybe they need something. but i do think twitter will go, i don't know who will do it, but if i had to guess the price it's north of 25 and south of 27. >> jim, what do you think? >> there is value with twitter. whenever you've got hundreds of millions of users that use it as

much as they do every day, whether google wants to buy them or not, there is a value there and somebody will try to take a stab at it at some point. >> just seemed to me and i was saying this to robert luna who is a shareholder and he's under water right now, it would seem if disney was a serious bidder you can maybe they got a look at the books and they didn't like what they saw. >> i think when it comes to disney, it's about do we really see this as a major strategic savior in terms of distribution of media. because that's really what it would have to be. and you have this this other story that sales force sees it mosls mostly as a sales of data. so i think you have to have a little bit of a stretch in terms of what you're getting with twitter. it can't just be affair ovn ovep option. >> do i want to have to try to fix twitter?

twitter is a problem, right? >> it's a problem if you need to very soon pull out financial results from it, yes. if it's just about a too many th tool -- i did look at the number. advertising market share last year twitter was about 12.5%man tool -- i did look at the number. advertising market share last year twitter was about 12.5% of total revenue of facebook. next year projected to be about 7.5. so twitter is becoming less relevant to advertisers. >> new topic, earlier today sara eisen spoke with the ceo and here's what he said about deutsche bank and the overall state of the european industry. listen. >> i would look at a sin krat ti syncretic situation as being a good prospect for the banking industry. as a matter of fact capital positions and being increased by 7, 8 times in the last few years. european banks are suffering because of the macro economic

conditions of europe, lack of growth. there is also a huge overcapacity in the european system. so that is the problem. but i wouldn't call it something that people should be concerned in terms of 125ib9 of stability financial system. >> they won't make very much money ever it seems like. >> with rates where they are and growth where it is, yes. i do think that eat the takeaway from here. although he wants to say it's not systemic, don't extrapolate from doifrp bank to everybody else's capital position. and that a might be. but jim, you've been talking about how the banks are begging around the world for some kind of relief. >> i think what they're finding with the banks is when they went to negative interest rates, it's just killed them in funding and i think behind the scenes they're begging their central banks to stop with the negative interest rates. deutsche bank is probably the

wo worst right now. the whole european banking sector is down a lot. not as bad as deutsche bank, but they're heading in that direction. >> a big steep in the yield curve. we don't know what is going on behind us. they're cheering. >> a party over there. first of all, that was a great interview. sara eisen is made for those types of interviews. but he's not going to say it's systemic. all i know is european banks have been going down for a long time now, so there is something going on. crude oil has gone from 25 to 50. i thought crude was behind the move in deutsche bank. clearlies's more so. it's much more than that. >> my question is if these guys finally figure out, wow, we real blew it and we'll work to steepen the yield curve, we'll do all our crazy manipulations like they like do, which would

be great for the banks, it could be the turning point for the financials. >> if you believe that they have the ability do that, if they are such great alchemists that they could stop on a dime, yeah, maybe a great catalyst for the bank. i would push back that i think central banks around the world have sort of lost control a little bit and as much as they want to think they can control rates and yield curves, i don't think they can at all. once the market figures that out, it will be messy. >> you've been nodding on that one. >> yeah, i agree with guy. stev steepen the yield curve is code for higher interest rates. and the problem with hire intere mier interest rates is you already have weak economies in europe. it might help the banks. we have have a populist movement in this country and europe. if you tell them that they need to suffer under higher rate so is we can help the struggling

banks, i don't think that is an argument that will go over very well in the euro countries right now. >> guy, good to see you, thank you. >> do we have time for a public service announcement? you hate me, i know. you asked hunter, how tall are if you what was his answer? do you remember? >> 6 and 3/4. >> exactly. if you're over 6-feet, you don't speak in half or quarter inches. unless you're in the nfl draft, lose the half inch. >> wall street went to decimals years ago. >> doesn't mean we should. >> i agree. guy, as always, a great pleasure. >> very insightful. >> see you later. you can catch guy and the crew on "fast money" next hour. bank of america head of equities says this market is terrifying. she'll explain what is making her so nervous next hour on "fast money."

what is she nervous about? >> we'll find threatening florida and the rest of the southeast. the mayor of palm beach will tell us how she's preparing her city for the storm and whether residents are listening for calls to evacuations. also late this afternoon, snapchat reportedly nearing an ich ipo. is this stock the next facebook, twitter? that's coming up next on "closing bell." across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. let us help grow your company's tomorrow- today at business.ny.gov

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president obama glarie i de state of emergency over hurricane matthew. >> reporter: and as hurricane matthew begins to barrel in on the coast of florida, we have more than a million and a half people just in this state alone that have been urged to evacuate. just a short while ago, florida governor rick scott stressing the severity of this situation. >> protecting lives remains our number one priority and that is why i continue to activate more troops for important life-saving missions. but stop and think about this. we should not be putting lives at risk because you made the foolish decision not to

evacuate. >> reporter: bill kashs warns that confidence is increasing that we will be comparing matthew's damage to past historic storms like sabdy, katrina, retake and andrew when this is over. and he is not alone in that sentiment. a number of experts saying the same thing. just to put that in perspective, these are thecostly disasters in history. 2005 katrina at the $50 billion, andrew at $26 billion, the two most expensive disasters natural or otherwise in u.s. history. so one of the bigs concerns is the high population density. core logic is estimating that in florida alone, storm surge and risk, properties at risk of storm surge could be more than 950,000. if this is a category four storm, you're be looking at a total reconstruction value of

$198 billion in florida alone. if you factor in georgia and south carolina, total reconstruction cost tops $287 billion. but right now the focus is to get to safety as the governor and so many others have urged. guys, back to you. >> thanks, morgan. let's go now to the mayor of west palm beach, florida. thanks for joining us. what are you doing to prepare, are you seeing your residents actually evacuate about if they're being told to do so? >> yes, they are being told do so. there is a section of our city that is under a mandatory evacuation. some people have evacuated, certainly not all. and of course we're concerned for those people who have decided to stay in their homes. >> west palm is a wealthy area,

but it extends to could yskew a older. are you helping them to move? >> we have a younger population that is living in the downtown which is part of the evacuation zone and i think the young people are taking us for granted a bit because they don't have a history of hurricane and hurricane damage. we do have folks taking calls from all the people who may need medical help. there is a shelter specifically designed for special needs that people with medical needs can go to. and we are answering those calls. >> it's an unseemly turn to talk financially at this point, but have you done an assessment based on the housing value that you have that is in the path of the storm what the potential damage could be to the city and the county? >> we have not, no. we will be out probably on saturday morning doing a damage assessment, seeing what the results of matthew are and what

he's left behind. and we have a lot of new construction in our city because we're going through a very big building boom. and we have some partially built buildings, we have cranes in our downtown. so we're concerned about all of that. >> have you been through a storm like this before, mayor, and what are you planning to do tonight as it comes your way? >> well, we lived here when francis and gene came through in 2004. and wilma in 2005. i'm at our emergency operations center managing and monitoring everything that is going on in the area. my issues ho my husband is home with the dog and he has the shutters on and everything. but i'm at the emergency operations center. >> mayor, thanks so much. we really appreciate it. please stay safe. we wish the best to your resident. >> thank you.

appreciate it. we have a news alert on gap. susan li with details on that. >> september same store sales, they were down 3% which is actually worse than what they saw in the september 2015 when we saw a decrease of 1%. so it looks like business is not going in the right direction for gap. in terms of the breakdown of the individual brands, gab global down 10%, banana republic down 9%, but some good news with old navy up 4%. but in the back to school time, you would think if you're at gap, you would be hoping for some positive numbers. back to you. >> suusan, thank you. retailers, you go nuts trying to figure out the group. >> absolutely. people i think still puzzle over why gap reports monthly same store sales anymore because it doesn't seem to help necessarily. banana republic is comping

negative on vastly negative comps forever. so that ishrinking as part of the mix. it's cheap for a reason an maybe it's private equity, but that window might have closed. >> any thoughts on the retailers that can't get out of their own way? >> i agree they're cheap for a reason. that reason might have to do with online retail and we're in the midst of an epic change in the way we buy stuff. >> there are too many retailers out there. >> yes. and are we buying less stuff? how many khakis do you need after a while? we went through the whole period where chinese manufacturing made clothing so cheap and then you get to the point where how much can you put in the closet. >> the one hope is that people are actually rotating back to wearing denim and khaki. but who know if that is a benefit. >> the decline of athleisure.

>> business casual, exactly. >> and all we have left is jim harbaugh at the university of michigan wearing khakis right now. >> all right. we'll take a break. much more on the hurricane still to come. we'll speak to the ceo of a florida property insurance company about how much he thinks this storm could end up costing in damages. and major changes, company closing its blood testing labs laying off 40% of its workers to focus on developing new products instead. what will elizabeth holmes be annual to find anybody willing to invest? that's next. your insurance company

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elizabeth holmes announcing a dramatic change in the company's strategy. meg tirrell has the details. >> that's right. in an open letter last night, she said they have assessed their strengths and weaknesses and they have decided to close their clinical labs as well as their wellness testing centers. so as part of this, they will cut about 40% of the workforce, about 340 people. and they will focus on their mini lab p machine. this is the thing that they unveiled back in august at the aacc meeting in philadelphia where a lot of folks are hoping to hear about edison, the machine that we had heard that they were using before. essentially what they will be doing is instead of being a customer-facing business and having the open testing sites, they will be developing the testing technology to

potentially sell to doctor's office, hospitals, things like that. and of course at this meeting back in august, they had said that they were going to develop a zika test and ebola test that they will going to go through the fda with and we learned a couple weeks ago that they had not developed that in the right way, they hadn't an bon bided b safety proceed ctocols so they withdraw the application. so what impact does it have on the cms sanctions? they wanted to sanction holmes from operating in the clinical testing business for two years. so does this mean that is off the table. we don't know. the company not saying anything further than what was in the open letter. >> the question about this letter, is elizabeth holmes who thinks so far outside the box that doesn't meet regulatory approval by the fda or whoever else is regulating that industry or are they pulling the wool over everybody's eyes?

we don't have an answer for that, do we. >> we don't and it's a criticism i hear a lot. folks wanting to disrucisrupt t and maybe don't play by the rules so much. it's great to think outside 9 b the box, but you have to play by the rule and go all the steps to make sure everything is safe.9 e box, but you have to play by the rule and go all the steps to make sure everything is safe. t box, but you have to play by the rule and go all the steps to make sure everything is safe. >> are there still people who have faith in her and this company? >> i'm sure there are. i don't know them personally. but the company is still going. they are focused on this sfraenlg. we'll have strategy. we'll have to see do they have enough money to get through the fda process. the "wall street journal" reporter was on power lunch earlier and he said they have about a year of cash left. i haven't been able to verify that. he's a pretty good reporter. whether that will be enough to get them through or whether they can raise more money is an open

question. >> you say who is still backing them. the venture capital firms that are there have at least nominally been backing them he. but the big question is even beyond the regulatory side, the science of it.he. but the big question is even beyond the regulatory side, the science of it.e. but the big question is even beyond the regulatory side, the science of it.. but the big question is even beyond the regulatory side, the science of it. have they come up with something better in terms of -- >> does it work. >> that's right. and in the health care world, science and regulatory often go together. the regulatory side makes sure the science works. what they said was the old stuff that they were talking about, this ability do a number of tests just using one finger brick wor prick worth of blood, they are not doing that anymore and they warrant are still aim doing just one finer prick, but we haven't seen that it can work. >> with this change, what product have they had that was a success? sounds like they're back to square one. they're a company that hasn't

produced everything. they have some wideas. >> they have nothing that they can sell. before they had a partnership walgreen's so they were out there. but right now they're still in a development stage company, you're right. >> thanks, meg. >> a lot of change. time for a cnbc news update. sue. >> thanks very much. here is what is happening this hour. peter cook says 4500 national guard troops have now been mobilized and ready to assist in whatever help is needed in response to hurricane matthew. defense secretary ash carry tte approving up to $11 million to help those in haiti. and a new jersey train that crashed in to hoboken's term until was going dwigtwice the s

limit and the train engineer hit the emergency brake less than one second before the crash. donald trump says many of his controversial comments about women were done for the purpose of entertainment. he made that comment during an interview in las vegas. and mattel has unveiled its lady gaga inspired doll. she's in the likeness of a familiar lady gaga per sona. >> is she going back to being the old lady gaga? she did the duet thing with tony bennett for a while. >> she still is. >> and now she's back to being lady gaga again. >> her gothic. >> she still do the tony bennett gig every once in a while, but for marketing purpose just before the holidays, perhaps the

goth version might sell -- >> should always be gaga. >> i don't know that i would give that to a little girl. i don't know if it's -- >> she went to sacred heart apparently. thanks, sue. >> you're welcome, i think. list of potential bidders for twitter shrinking and the stock closed down 20% 2k5id. coming up, we'll look at who is still in the running. is anybody left? and how much could a deal be worth if it ever happens? and you know those big bed bath & beyond coupons that arrive in the mail like every day? well, you better use them while you can. why bed bath & beyond may be moving krobeyond coupons coming. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

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let's see how the market finished the day on wall street ahead of the jobs report coming up first thing tomorrow morning. the dow finished up -- no, down 12 1/2 points. s&p up a point. nasdaq down nine points. we mentioned gap. they had their same store sales numbers. they didn't look so good, but look at the stock. up 5.5% right now. go figure. >> go figure.

i'm not sure if there is anything much in the report be sides the actual same store sales number. >> i guess it wasn't as bad as anticipated. >> it's a crowded short. it's been trading forever between 19 and 27 or something like that. >> dwtwitter closing down 20% o the heels that disney and alphabet will no longer pursue a bid for the company. this now means disney and google are out, apple unlikely to bid, as well. >> and let's talk about this more. a lot of water cooler talk about this today bringing in right now collin sebastien from rw barrett who has a neutral rating on twitter stock. do you hold out hope that there could be another bidder out there? where do we stand? >> i don't think it should be a surprise that twitter's board is exploring strategic options. the company clearly has struggled to capture accelerated user growth and quite frankly, finding its identity or position in the social media landscape.

and so in that respect, i think they do have a for sale sign hanging from twitter and that will attract some interest. >> how much though? did you ever believe that disney, google or apple could be potential buyers? >> well, from our perspective, google would be one natural acquirer given the potential integration of all the data that twitter captures around users, events and trends and integrate that into search. obviously alphabet has indicated that they won't be making a bit. but there are other companies attempting to build internet data platforms to scale including microsoft, verizon, i have no information if they're interested, but google is not the only large scale internet platform will that could benefit from twitter's data. >> would one of those bigger buyers that you mentioned there be able to do anything with twitter's business, with its user base, with the information

than twitter could do independently? >> it's a great question and i think the answer is that a large scale platform company like those that i mentioned would have a lot more resources to give to twitter. there is a very rapid change -- pace of change in technology currently with machine learning, artificial intelligence, big data, and it's hard for a company the size of twitter to keep up. so more resources, perhaps a bigger platform to layer twitter on top of. and we do think there is potential there for more success. >> collin, have they rossed the ruby c rubicon, do they have to be sold, could they go to alone as an independent company? >> well, they could. i do think in that scenario that twitter would have to i think reframe its mission in some respects. they have at least to investors positioned or compared themselves to facebook in the past. the fact of the matter is today

twitter is a much smaller broadcast platform and i think the positioning at least from an investor are's perspective would have to change in that scenario. >> head me bring up another topic here today.are's perspect have to change in that scenario. >> head me bring up another topic here today. w we learned snap thinking about an ipo. so the question we were asking earlier, is snapchat the in your view the next facebook or the next twitter if you know what i mean? >> well, yeah. from what we know, the growth is much faster than what twitter is showing. snapchat may already also be a larger skcale platform than twitter. so just as the monetization wheel starts to move at snapchat, probably a good time for them to think about going

public. >> all right. that's the big question. probably is a good time for snapchat to think about going public. a question of whether, you know, the $25 billion -- attached to a certain valuation. facebook was wedded to the $100 billion valuation the year before it came out. >> thanks, collin. >> no problem. >> collin sebastien from san francisco. bed bath and beyond is working to cut back on coupons. i've got some here. anybody want one? >> that is just one. you have like eight of them. do they arrive every day? >> they all came at the same tile. they're launching a loyalty program we're told aimed at improving margins and generating revenue. but will customers pay up for the perks? those details are coming up next. hurricane matthew is heading toward florida as a category 4 storm. coming up, we'll talk to the ceo of one property insurer about how he's prepare to go handle t prepare to go handle the cost of the damage. and take a look at the bahamas.

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away. it's beta testing beyond plus to a limited number of customers including several cnbc employees. so members can get 20% off and free shipping, but it will cost you $29 a year. an analyst says it's designed to build stickiness and over time possibly lead to full membership program launch that could result in fewer coupons being issued. we don't know that yet. not surprisingly ubs says coupons have compressed bed bath & beyond's margins for the past 15 quarters. the built-in coupon feature will make many items at bed bath beyond cheaper than amazon. at the need to regain share after being slow to build out a competitive e-commerce platform. a number are offering heb member shim programs. barnes and noble annual program has been around for many years. shim programs.

barnes and noble annual program has been around for many years. shim programs. barnes and noble annual program has been around for many years. shim programs. barnes and noble annual program has been around for many years. shim programs. barnes and noble annual program has been around for many years. they say our members are the most profitable customers. and restoration hardware's annual fee confused shoppers at first thinking it was actually a credit card. in september, the ceo called early trends murky. and land's end has been mum on early results of its circle membership, but the ceo who put that in place is now out of a job. >> customer stickiness is a big trend. a smart idea, but does this accomplish that? that's the big question, right? >> yeah, possibly. go ahead, michelle. >> so why i find amazon sticky, yes, i pay the fee, because their delivery is great. because it arrives when it's in stock -- >> and you're in front of the store for hours a day. >> that's right. and the shipping cost almost nothing. how is their e-commerce platform? because a lot of stuff that you

buy is big. >> it's not as fast as amazon. few retailers are. but i guess this this will be free for the beta test. there is a component where you could have it shipped to store, maybe that is better if that's easier for you. but i think that is all part of the beta test and they will try to figure out how many people are willing to use this. how much are they purchasing. and then can we offset some of that 20% coupon with that $29 am fee. >> so the break-even is if you spend $150 a year, it makes sense to play the $29 fee. i don't know if a lot of people will do that math. me personally, i cannot remember using a coupon and never will. so paying the annual fee to me is a little more attractive. >> it's easier. the thing will amazon being sticky, you can bae almost anything at amazon, but bed bath

& beyond, the product line is limited. >> you can get more on its website than what they offer in store and they are expanding beyond the basic bed bath & beyond sort of items. so there is more that you can buy now. but, yes, it's not nearly as expansive as amazon. remember they have the third party fulfillment and third party offers which is 49% of what you can get on there. so it will be very hard to meet that. but i don't think everybody has to beat amazon. you can exist in this world and not beat amazon. i think there is room for others. >> not a zero sum game. are you a coupon clipper? >> no, i'm not. and i am struggling as we talked about this, is this an amazon showroom oig? i know you said we can company exist, but isn't that the problem that they are just an amazon showroom oand they're trying something different? >> in other words people walk into look at it and then order it on amazon. >> right. especially as you said stuff that you don't need right away. i don't need bedding in the next two hours.

i don't need new towels in the next two hours. i can go home and order those online. >> best buy has had that problem. bar barnes & noble has had that problem. >> there is the opposite, too, there is the web rooming which we topts talk about as much. but where maybe do you your research online and then go into the store as is the case with maybe sheets or towels. you can't feel how soft they are online, so then you go in the store and make the decision. that actually is happening more often than i think that we really talk about on the air. >> this is why they pay the xi t ceo the big bucks, try something and see if it will stick. thanks, court any.xi ceo the big bucks, try something and see if it will stick. thanks, court any.i ceo the big bucks, try something and see if it will stick. thanks, court any. ceo the big bucks, try something and see if it will stick. thanks, court any. as we know, florida residents are battening down the hatches or vak agt. when we come back, we'll talk to the chief executive about a property insurer in florida about the potential costs of this storm. coming up. at boll an

hurricane matthew hurricane havoc on the bahamas. it is expected to hit the coast of florida later tonight. people in florida are stocking up and hunkering down. among those bracing are the insurers who will have to deal with the expected destruction. >> bruce lucas is chairman and ceo of heritage insurance. thanks for joining us. you have almost 225,000 policies in florida. tell us, what is your assessment of the possible damage a storm of this size and impact could inflict? >> michelle, thank you for having me today. we're running cantastrophe modes for the past 72 hours.

losses could range from 15 to $22 billion. we ran loss runs that put our potential loss at just under $1 billion. we are the second or third largest homeowners' insurer in the state of florida. as we've seen the track of hurricane matthew shift slightly to the east, we've seen the loss projection estimates drop by about 50 heterosexuali%. a south deviation on its south to north track of 30 miles east or west could have a billion-dollar impact on losses just for us. so as it stands right now, i think we feel pretty good that our loss on the current trajectory is about $500 million. we have $1.9 billion insurance, so we feel good about our ability to cover these losses. >> how much does fema account for what you factor into this?

they're usually on the scene as quickly as you guys are, handing out what they need to rebuild. how much does that become a factor in your calculations? >> it's huge, it's in the billions. flood losses will be multiple billions. there's no doubt about it that if you look at the national flood insurance program, for example, they dominate the flood market. there's not a lot of private flood here in florida. that's starting to change. it's really a federal program. those losses will be extremely high, 5 plus billion easily. >> do you expect the industry can absorb that expected range of losses that you're talking about? and what does it mean for premiums down the road? it used to be that when storms were approaching, insurance stocks would almost get a lift at times because people thought that would be a firmer pricing environment down the road. >> that's absolutely correct. i think think the industry will easily absorb these losses. as we're looking at the loss

sets that we're running right now, this really is not a huge event in terms of the current track for us. and i know the other florida carriers feel the same way. i've been on the phone with at least seven or eight of the florida ceos over the past 24 hours. we do feel like the loss is very containable. there is a tremendous amount of alternative capital right now in the reinsurance industry. there is a lot of ils bonds, heritage, for example, has about $700 million of ils bond capacity. those alternate forms of capital come in, and they do a really good job of keeping price inflation in check. i would think an event like this, maybe a single digit rate increase. >> some people in the reinsurance business, so they got out because all this alternative capital was willing to pay a lot less, willing to accept premiums that were far lower for the risk associated

historically. i'm wondering if we'll see hedge funds, private equity firms really take hits because they did underwriting at a price level that normal people, quote unquote, wouldn't have. >> sure. everyone has their own risk assessment and their own return on what they're willing to put out there in the reinsurance market. i can tell you that reinsurance pricing, when you look at it on a risk adjusted basis, it was definitely at its lowest in at least ten years, this past treaty. so prices are very low right now. but i know there is a lot of capital on the sidelines willing to come in at even the 5 to 10% rate increase. you will see definitely some losses in the reinsurance industry. but the current track right now, i don't think this is going to be nearly as bad as we thought it was going to be 24 hours ago. >> let's hope so. bruce lucas, good to see you, thank you. we appreciate your thoughts. >> another impact from the low interest rates. >> unintended consequences. >> right, all these reinsurers,

the reinsurance market being flooded with alternative capital i have thes. >> it's a very different market than it was during katrina or even during sandy a couple of years ago, the way the market has remade itself. >> it wouldn't be an issue if the rates were going up at this point. >> exactly. >> uncorrelate ass correlatcorrr reason. >> oil breaking above $50 today. low commodity prices and political corruption have taken their toll on brazil's economy. up next, central bank of brazil, the president there lays out his plan for recovery.

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there is a huge void between our infrastructure and the public. earlier today i spoke with brazil's central bank president. here is what he said about the economy and the possibility of currency intervention. >> we believe the currency float gives us the right signals. when fees aren't good, the currency depreciated. this year when confidence is bad, we're seeing the currency appreciating. i think this is the right way to deal with the currency. of course has in any emerging

markets, when we feel there is an opportunity or when we feel there is bubbles and things like that, we will intervene. >> the real has appreciated 20% year to date. it's been a huge move because of the change in the government there, and people having so much more confidence that there are going to be more orthodox in their macroeconomic policies. >> equity market's come back too. it's been pretty strong. it seems like the tools are there for what they need to do. >> they have an inflation problem, which is charming and quaint. >> some countries would aspire to that. >> right. brazil either goes straight up and everything is great, then they host the olympics and it goes down, they quick out the president. i hope they break from that cycle soon. >> you know the old saying about brazil, it's the country of the future and it always will be. >> exactly. >> let's hope that eventually turns out not to be correct. >> jim bianco, a pleasure to

have you, thanks for joining us. >> thank you. >> a lot of fun as always. once again, mike and i will be back tomorrow. we'll see who's anchoring with us on that day. that's it for "closing bell." thanks for joining us. "fast money," the gaining is feisty tonight. >> right now. it's crazy. "fast money" starts right now. live in the nasdaq markets, i'm melissa lee. tonight on "fast," stocks are near all time highs. why is bank of america's head of equity calling this market terrifying? she's here to explain what has her so nervous. tech giants are bailing from the bidding war. how much time does jack dorsey have left and would the company have been worth more if private? with hurricane matthew approaching, we'll take you to the ground and tell what you it could mean for the