there. i think it got a bounce from the storm, which didn't hit the gulf, so i see oil coming back down below 50. >> and back to bby. >> best buy, i own it. but also keeping an eye on barracuda because in that same sort of networking and -- >> guys, been a pleasure. have a great weekend. hope the hurricane isn't as bad as people thought. that does it for "halftime report." "power lunch" begins right now. >> welcome, everybody. i'm brian sullivan. here's what on your friday power menu. monster storm matthew moving up the coast, still a very dangerous storm. now the attention all on georgia and south carolina. the damage, the power outages and the storm's path straight ahead. is the worst over for oil? the little nugget in today's jobs number that may, just may point to an oil bottom. and are you ready for some football? apparently not. why some advertisers are throwing a penalty flag on the nfl's ratings so far this season. we will explain as "power lunch"

kicks off right now. and welcome to "power lunch." i'm melissa lee. three hours left in the trading week. and after the jobs report that came in a smidge below consensus, stocks are settling in. down across the board. the dow now is down by 80 points. s&p down by 12. nasdaq down by 32. we saw some big moves in the ten-year yield, highs since june of this year, and a big move lower in honeywell and that's prurg t pressuring the industrials, the index today. >> thank you very much. welcome, everybody, to "power lunch." glad you're with us. tyler mathisen here. we have a great guest with us the entire show, marcus lemonis, good to see you. it is a big day for marcus and camping world. the company went public today. his team ringing the opening bell on wall street today. that usually is the sign for video to roll and there it is.

all of that in a moment. congratulations, mark. >> thank you. >> big day. >> let's start with your top story at this hour, hurricane matthew, pummeling the coast with wind and rain this is new video from the national oceanic and atmospheric administration. hurricane hunters, planes, you'll see captain tim gallagher and co-pilot getting bounced around as they fly towards the eye of a hurricane. that is one of the strongest in decades. necn chief meteorologist matt noyse joins with the forecast. >> amazing to watch that video. it is a nasty one, still a category 3 storm, still a major hurricane. you can see it showing up well on the satellite imagery. the category 3 storm, 120-mile-an-hour winds but consolidated around the eye, the center of the storm. lashed with the outer bands of the eye, not the 120-mile-an-hour winds but have

been seeing gusts over 100 along the eastern florida coastline. that resulted in power outages, radar shows you the bands of heavy rain. a little concerned about some embedded tornados that may take place from jacksonville north and east. also, this has resulted in wind damage, even inland. florida, marion county, sheriff's department grabbed this shot, right down on top of a home, a car. this is in central florida. gives you an idea for some of the damage going on near the coast. storm surge is starting to take the real issue here. storm surge, you get the water pushed up against the coastline. what it does is it forces the ocean level higher and higher. storm surge threat will continue to the order of perhaps six or eight feet above a normal high tide along the northern coast of florida, the coast of georgia, the coast of south carolina, and southern parts of north carolina all the way to the afternoon where at a high tide cycle now, we'll do it 12 hours from now. that's what we're following right now. the storm continues to very slowly move up the coast, it will be a problem all the way through tomorrow. >> thank you, matt.

matt noyse. over 600,000 people are without power at this hour. storm surge flooding and heavy rain batter florida's east coast. morgan brennan is live with the latest. morgan? >> melissa, so speaking of power, we have actually lost power here at this hotel on daytona beach. right now, the outer eyewall of the storm is on us. you can hear the wind howling behind me. you can add us and this property to a ballooning list of power outages that is now more than 875,000 for the state of florida. coming into the storm, one thing reported yesterday was the fact that there were shortages of gasoline at some gas stations along the coast. this is going to be one of the biggest issues in terms of what could potentially be short-term shortages of gasoline coming out of the storm, the fact we don't have power. you need electricity to get that gasoline out of those tanks. here, along the beach, in daytona, you see behind me, the storm is still very much in full force. we have a lot of flooding here

outside of the hotel. we had storm surge coming up the beach and over the railing, knocking out parts of the railing here on to this beach promenade. what was behind me, what was a volleyball court is now just a massive pool of water. at the front of this hotel, just tons of debris littering the streets and just littering the streets and, again, we just had a lot of water coming in. you can see it down here towards the lower floors of the hotel. so it is still going on here. and we will continue to bring you the latest as this unfolds. again, we don't have power. back over to you. >> morgan brennan, stay safe. we'll hear from you in a bit. joining us on the cnbc news line, nancy shaver. thank you for joining us. we have seen some rather upsetting footage of water coming over the seawall in st. augustine and water rushing through streets near hotels. what is the status of your city?

>> it is not pretty as you see. we're not even close to what we're going to see. we expect the eye to pass parallel to us at around 5:00. we expect storm surges of 5 to 8 feet. it is very, very dangerous situation, very dangerous circumstances. >> what are you hearing about more to come? the seawall has been breached. we're watching the video of water rushing through the downtown area. one of our guests, marcus lemonis, has a home there. what are they telling you about how high the water may continue to rise? >> what we're looking at is a five to eight foot storm surge, over and above what the tide is at the time right now. what we're looking at, and i'm sure you're seeing the same footage i am, high tide is at about 130. what we're seeing is the tidal effects of hurricane matthew. we'll see much more of that. we expect that we will have

flooding and for some period of time. we ask folks to evacuate. we know by inspection something close to half of our residents chose not to do so. so what we're basically asking them to do is hunker down. we're losing power. >> mayor, this is marcus lemonis. i know that area well. so has water already gotten into the square in downtown as well? >> as far as i know, and i'm at the emergency operations center, what we're focused on is health and safety, not necessarily, you know, how many feet of water we have in our streets because we know we'll have a lot. my expectation is the -- looking at the seawall, and the square is also flooded. we would expect areas of davis shores, which is the bridges as i'm sure you know are closed. but those are on the barrier islands. we expect high flooding there. we expect at storm surge there. and throughout the city.

>> i've gotten word already, i have a home in ponte vedra and power is out and while the tide is low, things are not looking good from pictures i've seen. are gas stations, power is out, gas is out, water is on in the grocery stores? food is around? what is happening with the publix? >> as far as i know, at this point, many of the grocery stores are not open. >> shouldn't be. >> exactly. we closed water down at 8:00 last night. we know we lost -- last time we checked lost about a quarter of the customers did not have power throughout the city. there is, i'm sure, no power. but our concern now is really health and safety of the folks who are here and -- >> to that point, mayor, if i might, you said that about half of the residents under the evacuation order complied with it. is that a good compliance rate

from where you stand or bad compliance rate and have you seen any injuries, not just to humans, not just to property, obviously, damage to property. >> the focus is on human lives. we did everything we could to encourage people to evacuate as did the governor. and it didn't happen. obviously at the rate anyone would like to see. i think part of it is we haven't had a storm like this in over half a century. many of the people who now live in florida have come from elsewhere and have never experienced something like this. so you've got human nature at work. and then people who might think, oh, this is a grand adventure and there are lots of reasons people don't evacuate. some people don't have enough money to evacuate. but it is not a good situation and right now we are not aware of any injuries that have

occurred. but our difficulty is we have, as you can see, no way to get to people at this point. >> how about hospitals? are they open in your area? >> i'm sorry? >> hospitals? are they open? >> some of them are operating, some are not. i don't have that list in is a that changes from -- i wouldn't say minute to minute, but hour to hour. >> the mayor of st. augustine, florida. our thoughts are you and your city. stay safe. >> thank you. >> you have a house there and we're looking on maps and there are so many inlets and little river areas, what do you believe being a resident there, what is going to happen to the water ways and rivers and small lakes? >> i don't think there will be a difference between the inlets and the ocean. the house i have is on the beach. what i'm hearing from neighbors via text, which i don't know how

they have it anymore, is that it is not good. water, pretty much everywhere. you can't really see the difference between the coast and the street. >> you go back to that area, to that town, do you expect that there are going to be businesses that just won't survive an event like this? >> i do. jacksonville is one of those towns that doesn't get a hurricane because of the angle of it. never really makes it there. i lived through hurricane andrew in miami. and it was devastating. i have a store in st. augustine, jacksonville, st. pete's, an old historic building, i think the thing i'm scared about is the business might not make it either. >> what do you do as a businessman with locations in the path of a hurricane? how do you prepare your employees, your physical structures? >> we don't really spend a lot of time. it happens fast. we get the inventory moved out as fast as we can. we get our employees out of there 24 to 48 hours before the storm. they need to go home, they need to pack their families up and need to get out of there. in some cases we even give some

of our employees vehicles to get out of dodge. >> your point about hurricanes, records were kept starting around 1850, 1851. never been a hurricane directly strike northern florida in that time, ever, above category 4. this could be an historic first. >> still not a direct hit. it is skimming the coast. >> thank god. my question is on insurance. do you have any idea what the business owners make? you're probably required to have commercial flood or hurricane insurance. given the fact it doesn't happen -- >> it doesn't happen. you to have that insurance. there is some possibility, even all the way as west as ocala, all the way up to gainsville. you're going to have to have it for a town like jacksonville, this, if it hits to the extent they're talking about, it would be devastating. >> marcus, thank you. he'll be with us all two hours here. breaking news from the energy patch. hard to do on a day like today.

the weekly rig counts are out, and they're up for the 14th time. baker hughes, three new oil drilling rigs put into place this week. oil lower right now, however, quite a run, crude oil up 9% over the past 30 days. we're continuing to track the path of hurricane matthew as it makes its way up the florida coast. more on the storm surge and the relief efforts coming up. marcus lemonis, the profit, all over cnbc today. we'll tell you about his big day at the new york stock exchange straight ahead. 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?

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try them for 30 nights and get $50 off your first set at bollandbranch.com, promo code: tv. that big september jobs report is out. nonfarm payrolls weaker than analysts expected as unemployment ticked up slightly for reasons that steve liesman will explain now. >> i'm going to explain how the jobs report is likely a bit better than the headline makes it appear. the reason is because the miss came almost entirely because government jobs fell on unexpected 11,000. private sector growth higher in september compared to august. and americans flooded back into the workforce, compared to a year ago, 3 million more americans count themselves as available and ready for work. this validates the few on the fed that the job market may have more room to run as it starts to generate any inflationary concerns. here is the data that we're talking about. up 156. looking for 170,000.

average hourly wages, many expectations, up .2. labor force participation, 62.9. fed vice chair stan fisher said the report was pretty close to a goldie locks scenario. but in a cnbc etta mester says she thinks it is about as good as it is going to get. >> that's a good number. income is going up. you have solid, you know, hours work. so, again, i think this is very consistent with what we expected to see. certainly with my forecast. >> mester who dissented was plain in saying she wants to hike again, but the futures market sees a less than 10% chance of that happening and almost, by the way, up higher now, a 60% chance for that december hike. you're shaking your head like

you've seen the market trade that way. >> just a couple of weeks ago was 20 something percent for december. markets almost -- >> the data is behaving. you got a running cnbc rapid update. third quarter rebound. jobs -- get used to 150. the entire viewership by the lapel and say it is not 200. 150 is a very good run rate for an economy where the working age population is growing by just 75. >> i love having marcus here. how many people work at any camping world store on average? >> 50 to 100. >> 50 to 100. multiply that by all your stores. are your store managers saying they're having difficulty hiring? >> no, but having difficulty finding certain particular skilled labor, mechanic or technician, somebody that has a propensity to do a job, yes. but it is interesting to hear mester talk about how she thinks

this is as good as it is going to get from ohio. >> the data keeps showing that the doves are right on this. i don't know if in the back they have my chart that shows the unemployment rate stagnant but we keep doing better on jobs. 200,000 a month. and unemployment, that tells you there is a pool of workers who are on the sideline and can or are being brought back into the workforce. >> contract labor is becoming a bigger phenomenon than it ever has, particularly with millennials. they're taking jobs, doing projects, advertising orpharmac >> what we do. >> i don't know how it gets factored into all of that. we have to learn if that information is factored in because it is a 1099. >> a lot of people permanent temps. >> and they like it. >> yes and no. >> they're showing it. >> they are. if you work -- i don't want to get into the particulars, but if you worked and you're called for

the survey and you say you work, you're a job. >> assuming they have your cell phone number because most people that are contract labor don't have home phones. >> a hyundai dealership near my house -- >> marcus wants to get me started on how to improve the dwr data because we haven't upgraded, let's have a conversation after this meeting. >> we talked about this for years. a hyundai dealership near my house, advertising for a mechanic for -- >> that's why you're here. keep me in line. we have a brand-new ticker to show you on "power lunch" today. cwh. marcus lemonis' camping world trading higher by 3%. it isn't the only recent ipo to get a bounce. the market has gone from flat to fairly frothy seemingly overnight.

bob pisani joins us from the stock exchange. >> a down day, but the ipo market rolls on. you should be happy, pricing at 22. still holding up 2270. good volume, 10 million shares, almost the total float in the first half of the trading day. are we getting frothy? look at so far some of the returns on the recent ipos we have seen, cupa, nutanix and atheo. people are saying, wow this is frothy. is it? my sense is no, not yet. nutanix and coupa, we're not in the green stages, we're not pricing high, they're just trading up because the demand is there. to me, that's not the greed stage yet. still, look what is powering the ipo market. the markets are holding up. the most important thing. existing ipos have done well, particularly the ones in last couple of weeks. green light to people who are waiting and finally remember the window to go public is closing

fairly quickly here because we're going to have the presidential elections, a lot of people won't be around, pricing ipos during that time and thanksgiving after that. very small windows coming up. back to you. >> thank you very much, bob pisani. we showed a screen of the recent ipos and all were technology companies. elf cosmetics went public, valvoline industrials. was it a tough choice to say i'm going to go out? >> they haven't been doing well in the market and maybe not in the results but our results were really, really good. we are not a retailer. we're a data mining company that uses the retail business to collect data and cross sell products. it was a long ten days on the road show. the demand was solid. but at the end of the day, pricing it right from the beginning really matters and it was a very hard decision when you thought about pricing.

very hard. >> what do the bankers tell you during the process? >> they're wonderful people. >> that's nice. >> we'll leave it at that. >> do you feel like you priced it right? the market would suggest you did. >> i do not feel like we priced it right. >> could have priced it -- >> i know what the company is worth, but i'm -- >> higher or lower? >> i'm not selling any shares, so for me it didn't matter. i stopped fighting about it. i think at the end of the day, you believe your company is worth more and we had a very difficult time comping against things because there is nobody else like us out there. >> who is closest? >> car max is what we were told. they have no reoccurring revenue. we have a dividend. >> you must have liked the cabela's deal that just happened. bass pro shops. >> johnny morris is a dear friend of mine, one of the smartest men i've known. if you study that deal, you'll see how smart he is. capital one is involved in that deal. >> can we ask you how much money

you made today in. >> because it is public information, i own 38 million shares. >> do the math. >> but i'm not selling them. at the end of the day going forward, no cash compensation, zero, not a penny, not a restricted share, not an option, not anything. my theory is that if i'm going to be a partner with somebody that buys a share, we're going to make money together or we're not. and i want to put my money where my mouth is. it is a bit of a change. >> so $866 million. >> what the shares are worth. >> what the shares -- >> your shares are worth. can you -- we got to tease this. later on i'll ask you that that feels like. we all dream about that. >> i can answer right now. it doesn't feel any different. i have a responsibility that feels much bigger than me right now. >> oh. >> it is intimidating. coming up, we're hitting the good, right here, the bad and the ugly. and the downright horrible. the linsane thing that happened

to jeremy lin last night. the full video when "power lunch" returns.

welcome back to "power lunch." gap, clearly trading higher by 14% after reporting better than expected same store sales for the month of september. on to the bad, this is an interesting one. fxcm, taking a hit.

some concerns that last night's -- british pound will create some of the same problems. its systems and operations function well still. it is down by 2.3%. and on to the ugly, plain old ugly. clovis, a new data set on ovarian cancer drug. the shares are down by 14.5% right now. >> from ugly to downright hideous. check out what happened to basketball player jeremy lin in his first game with the nets. he goes for the wide open layup and there you go, wide open layup, little shimmy. >> could have been the bun. >> absolute air ball for jeremy lin. remember linsanity with the knicks, yeah, i think you're right, i think we're at peak man bun. >> maybe trying to pass it to somebody for an alley-oop. nobody there. >> it's early. >> he's a good player. working off the summer rest.

>> he can still take all of us. >> you can bet on that. hurricane matthew heading towards georgia now and south carolina. and we'll tell you how residents are preparing for the storm when "power lunch" returns in two minutes.

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hi, everybody. i'm sue herera. here is your cnbc news update. the u.s. navy ship mesa verde is heading towards haiti to support hurricane matthew relief efforts. local authorities say 842 people have been killed in haiti. and that number could rise. the storm hit the country's western peninsula on tuesday, with 145-mile-per-hour winds. a possible computer breach may have exposed the personal information of more than 6700 doctors, nurses and other informed public health workers. it is under investigation now by the health and human services department. the potential victims are overseen by the surgeon general. donald trump meeting in new york city today with leaders of a border patrol group that has endorsed him. the republican presidential candidate wants to strengthen border enforcement. and fema's unofficial storm

index going red today after 25 waffle houses were closed in florida. waffle house restaurants are seen as a barometer for disaster specialists. we're not making this up. because they're known for staying open during major storms. the company announcing the latest closures on its twitter feed. now you know. that's the news update this hour. i'll send it back to you guys. >> waffle house known for its good food, scattered, smothered, covered and chopped. >> i've been there. >> melissa is like what is that? >> i've been to two waffle houses. >> drove right by them. the attention on hurricane matthew. look at that. the national guard, brave men and women, out in force as is our scott cohen live in savannah, georgia. what is the preparation going, like? >> well, they're hunkering down

now, brian. i should emphasize the worst of the storm, the center of it is still a good 12 hours away from savannah. we're getting the outer bands here. first had our first tornado warning in this area. so the effects already being felt. behind me is the -- i don't know if you see it, the port of savannah bills itself as the largest container port. it is shut down, tight as a drum now, off shore and on shore. no operations there. that's just the start of it. out that way is tybee island. and they have just told us that a couple dozen people are out there, it is more or less a barrier island on the atlantic ocean. some people chose to ride it out. not a good idea. governor nathan deal a short time ago said the only thing that is certain about this storm is that it is dangerous. >> there comes a point and you heard some timelines that have already been stated, there comes

a point where we cannot jeopardize the lives of our first responders any further. and at that point, we will all just have to hunker down and wait for the hurricane to pass. >> and we have pretty well reached that point now. there was a cutoff here in savannah of 12:00 noon. we're well past that. buses were taking evacuees out of town. there is a dusk to dawn curfew set up and troops in the streets here tone for enforce it, along local police. hunkering down is the operative word. >> thank you very much, scott. and scott, of course, remembering hurricane katrina, where you did such memorable work down there. we'll see you later. thank you, again. employment growth slows a bit for a third straight month in september, while the unemployment rate ticks up to 5% now. how much of an impact will jobs have on the election as we get ready for the second debate between clinton and trump on sunday? let's bring in national urban

league ceo mark morial, the former mayor of new orleans, and our friend ron christie, founder of christie strategies and former special assistant to president george w. bush. excuse me. i want to begin, though, with your recollections of katrina, former mayor of new orleans, you certainly know the pain and trouble and heartache that comes from a storm like this. >> this is a dangerous monster storm. what i've seen is the governors, local elected officials have done the right thing. they have placed big emphasis on evacuation, on people getting out of the way of the storm because of the danger from both flooding and wind and the loss of power. but i hesitate that anyone should at this point say, well, we dodged a bullet, we got through it, because the worst may be yet to come. and then i notice most of the tracks, if you look at it, have the storm hooking back out to sea, which means it could gain strength for another hit. we haven't seen much in terms of what the predictions are, so i

think the steps that have been taken have been good, but i think there is going to be a significant amount of property damage, i hope there is no loss of life or very limited loss of life. >> sometimes as i recall in the case of katrina, the early reports can be a little deceiving. and then you find out you go deeper and you find out -- >> and katrina was unusual in that broken levees in new orleans caused most of the damage. i remember hurricane georges, going to directly hit new orleans in 1998 and turned at the last minute and batted the coast of mississippi. but it is going to take time. the storm has to completely pass before it is even safe to go in and assess the damage. >> let's switch back to the reason that both you and ron are here. >> jobs, jobs, jobs. >> ron, jump in here, big debate on sunday night. one more jobs report before americans vote in early november. is this report in any way a

political tool for either of the candidates? >> actually, i think it is a political tool for both of them. you're going to hear the former secretary of state say we had sustained job growth and that things look like they're on the up and up and i suspect you're going to hear mr. trump say, well, we have still the lowest workforce participation rate that we had since the 1970s. still a lot of people who have given up looking for work. we still don't really is that much by way of wage growth increasing. so both candidates, it is going to be the goldilocks economic report on sunday. they're both going to point to data in this report that they both like and they're going to ignore the data points they don't like. >> couple of fact check here, and that is number one, in 2015, you did have for first time and a long time a growth in wages. it is not significant enough, it is still one of the most important problems facing the future of the american economy. but then i notice that the labor force participation rates are up, and the number of jobless

claims are at their lowest in over 40 years. so i think what this points to, i hope with the discussion and the debate is framed by what are the next steps we have to do. i think it is all about addressing wage stagnation, it is about priming and building an economy for the future. getting more money in the pockets of americans. >> marcus, jump in. >> a question or a thought. >> both, actually. i think the concern i have is i'm a big believer in having wage growth as well. i want people to perform for it. i don't want to just give it to them. my business is i have a minimum wage, a floor on it. i'm more concerned about the people that aren't working, than getting the people that are working and giving them more. you and i -- >> i would say this, and i think this is another important data point, wages have in the kept pace with worker productivity. if you look at those two things and you look at the trend lines, truth of the matter is that for most americans, their wages have not kept pace with their productivity. the american worker is highly

productive. and the individual can do more with -- more on their own than ever before. has a lot to do with technology. and i'm also concerned about the large number of jobs where we need more people with college degrees, more people with certifications, more people with the education, higher paying jobs. >> i want the business owner to make the determination that the productivity and the wage aren't commensurate. >> that's exactly right. >> i want to make sure that the facts also -- and the information, which is that productivity is increasing wages have not on an overall basis are in front of the business owners and the politicians in america, so that decisions are made with the best facts. >> let me give ron an extended last word. ron, thank you for indulging us here. >> i appreciate that. one thing i look at is if you look at last year, the average number of jobs we created every month was 229,000. this year we're averaging 178

and i was listening to the cleveland fed chief say well this looks like it is as good as it is going to get. if you are going down, we're going in the wrong direction, we need to reform our tax code, we need to allow small business owners across this country to make the important decisions they need to hire people and keep people employed like i try to do. let's reform our tax code, let's have a good debate on sunday, and have an honest discussion on the issues so the best way to drive america forward from an economic perspective. >> companies have a finite amount of dollars for compensation. it is either going to get spread across more people, or the same people. but there is a finite amount of available dollars for compensation. certain amount of sales, certain amount of gross profit, certain amount for -- >> i would add this, this is important, the driver of the american economy is consumer spending. it is one of the drivers, not the only driver. when people have more wages, more earnings, when they spend it -- >> double the pay. >> they spend it, then it is also going to create more

economic growth. business investments, exports are a driver. no doubt. consumer spending is about 70% of our economy. >> mayor morial, thank you very much. >> thank you. >> ron, thank you again. really appreciate it. great to be with you. >> speaking of, make sure you tune in to cnbc's coverage of the second presidential debate. it will take place at washington university in st. louis, missouri, starts at 9:00 p.m. eastern time on sunday night. town hall format, going to be a big one. >> could this man be the newest headache for the nfl? who is he? there he is. we'll explain next.

the nfl speaking out to ease concerns about the surprising ratings decline for the beginning of the 2016 season. julia boorstin is live in los angeles with that story. julia? >> melissa, through week four of the nfl season, the ratings for nfl games and all the networks where they air are down an average of 11% among total

viewers. the nfl explaining these declines in a memo to its broadcast partners saying it is a result of a conflict of events, pointing to unprecedented interest in the presidential election, with monday night football suffering from competition with the first presidential debate, dragging down average monday night ratings by 17%. the nfl also notes tough comparisons with high ratings over the prior two years, but says it sees no evidence of ratings impact from player protests and the national anthem. so what does this mean for broadcasters? most nfl ad deals are guaranteed, which means to make up for the decline, networks will owe additional ad time to advertisers, according to adam swartz. but according to the nfl, the network partners say the decline, quote, has not had any impact on advertising and the nfl continues to be the best place for brands and advertisers. as for the biggest game of the year, the super bowl, swartz says he doesn't expect to see any ratings -- any impact on the super bowl, which airs on fox

this year. or on the super bowl's ability to draw some massive ad dollars. back to you. >> thanks, julia. another factor that could cut into this sunday's nfl ratings, tiger woods. yeah. he's going to be back on the green at this weekend's safe way open. it is tiger's first p&g appearance in more than a year. the safe way open airing on nbc and the golf channel. that's next week. i'm so excited for it, i just out of the calendar. let's talk more about the nfl ratings stumble. jack brewer is here. jack, i put out a twitter poll saying nfl ratings are down because election, games are boring, too many penalties, no superstars, whatever. what do you think? >> first off, the trump effect. >> the election. >> majority election. the election turned into a reality show. and everyone wants to watch it. i know i watch debates now like i never have. and i'm an avid football fan and i think i -- i actually paid more attention to politics over

the past two or three months than i have football. >> sunday night football is our property at nbc and you hate to say it, but it is going to have trouble finding an audience, wou wouldn't you expect this sunday night? trying to be -- >> trying to not get fired? >> that's it. >> it is unique. the one thing the nfl has, i think you got to keep in mind, is fantasy football. i think fantasy football has reinvigorated the fan experience. i think women -- >> you think it peaked? >> no, i don't. i think more people are taking a part in fantasy football. i think people understand it more. i think they'll be able to interact with more and more fans. >> is there any part of you you're taking a polly annaish view of the situation. if you look at the core audience, for espn, the ratings are down 24%. could this be a broader issue here? this is what we're seeing happen across the television spectrum, not just sports.

but it is happening very sharply with sports. >> if we see this through december, i'll be concerned. once the election is over, i think the numbers will come in a bit. >> unless trump wins. >> unless trump wins. that's true. he'll continue to draw attention. but keep in mind as well, internationally, the game is expanding. there has been more and more fans, china, i was in china last year with the nfl, and i've been in europe and you see what they're doing in the uk. there are opportunities to expand. >> i think there are three problems with the product. number one, the games are too delayed. there is no flow of play anymore. everything is interrupted. there are penalties all the time. there are booth reviews of everything. that's number one. number two, i think the concussion thing had some dampening effect. and number three, i think they diluted their product by overexposing it. there are too many games on too many nights. and then they go to london, there is a game on at 9:00 a.m. on sunday morning and then one at 11:00 and then one at 4:00 and one at 9:00. i think they have --

>> supply and demand curve is broken. >> the nfl network may be backfiring to that point, just because now the nfl is actually trying to push more games on to their own network. and you see that. there is talk of the season expanding from 16 to 18, which i think will be a huge mistake. >> players association won't do it. >> player safety. the collective bargaining agreement it coming up. i think they're trying to renegotiate that. a lot of things going on with the national football league. at the end of the day, still the number one sports brand in the country and i don't think that will change. >> let's talk about haiti where you have some interest in charitable organizations, orphanages there. i hear you have some photographs that have come back from there. i can't think of a country that needed what just happened to it less. >> terrible situation. i've been in constant communication and real time. our firm has really put our work on hold as we try to help with relief efforts on the ground. over 360,000 people displaced so far and estimated about 500

have lost their lives. you see by the pictures, haiti is a place where the infrastructure is already so bad and not proper drainage and things, deforestiation is a hug issue. it is hard to get to the emthat need it the most in the country due to the fact that the bridges have been washed away. there is a number of drops taking place now with helicopter ands a and different things. we love the people there. we try to help the poorest people in the world. >> great people. >> they need it right now. >> jack brewer, pleasure to have you on. >> thank you for your time. >> let us know how we can help and people at home as well. thank you very much. we'll be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. great, that's what i said. so your business can get back to business. sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. time for street talk. first stock, lamb research, in focus at credit suisse after its deal was terminated over antitrust concerns. credit suisse pointing out positives from the management call. they promised, they meaning the management, promised to address capital redistribution of the november 16th analyst day and potential for up to $2 billion in buybacks.

the company indicated it would be more disciplined on operating expenses. credit suisse outperform rating $108 price target but does note that because arbs are unwinding, that could cause the stock to pull back to 90 or so. >> a lot of arbitragers got burned as they say on the street. stock number two, sun run, goldman sachs upgrading to a buy from a neutral. bumped the targ to the 10 from 7. think the solar company will benefit from growth in the residential market in the states. they say it offers above market growth potential, thinks the company will benefit from lower installation costs. latest positive call on run. the ticker last month started with an outperform. a lot of upsides seen by goldman on sun run. >> interesting, a lost the sot solar stocks demolished. as oil prices have started to come back, seen a little bit of a comeback in the solar -- >> need to become positive? >> he upgraded some names. biggest bear on the street.

but they have gone up in response to rising price of oil, even though there is no correlation between oil, not used to power electricity. third stock, jack-in-the-box, challenges show comp sales in line with what was expected, 1.5%. upside through increased buybacks and also refranchising opportunities. jack has been an outperformer of 23%. why do you shake your head? >> i feel like jack-in-the-box gets no love. >> if you pull it back -- >> mcdonald's is like we're going to go healthy, we have a grilled chicken -- jack-in-the-box, 6 pound burger with mayonnaise and taco on the side for $3. >> they also, speaking of tacos, they have qdoba. beneficiary from -- >> chipotle as well. go jack. next up, smaller cap call of the day, allegiant travel. you know it as allegiant airlines. imperial capital likes the

stock. outperform at $164 target, say it has strong growth prospects from its differentiated low cost business model. also huge drop in the stock for the highs of 236 a share last year. ouch. they note that despite upcoming challenges from moving to single airplane type, they're going from all kinds of planes to one type, the stock should do well. it has a nice runway. the price target imemploys a 15% upside on algt -- did you see this? their revenue, passenger ref revenue increased. some of that is new routes. that's really good. allegiant, small cap call of the day. one more big stock mover to tell you about. honeywell, taking a leg down. we'll tell you why honeywell is dropping. "power lunch" back in two. ♪

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there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious wheu trade. delity's active trader pro can help you find smarter entry anexit points and can help protect your potential profits. fidelity -- where smarter investors will always be. i'm melissa lee. here's what's on the "power lunch" this hour. downgraded, but don't let your guard down. hurricane matthew slamming florida with wild winds and rain. we're tracking the action.

snapchat worth $25 billion? a big ipo may be ahead, but will snapchat have the appeal of a facebook or end up like twitter? and honeywell shares tanking right now. what the latest outlook is saying about the global economy and the industrial space. the second hour of "power lunch" begins right now. welcome, everybody. i'm tyler mathisen. a check on the markets with two hours until the closing bell. stocks cutting much of their losses, down by the smallest of margins as you see right there. the industrials off about 16. ditto the nasdaq and 6s are wild at the nasdaq. on pace for first weekly loss in four. financials one of the biggest winners. thanks to goldman sachs. that stock, brian, up more than 1% right now. >> thanks, tyler. here is what we know about hurricane matthew this hour. the now category 3 storm thrashing florida's coastline with fierce wind and rain.

the big concern now, the area north of jacksonville. officials in haiti say the death toll from matthew not more than 800 people. for a look at where the storm is headed now, necn chief meteorologist matt noyse joins us. >> hello to you. here is the latest on the storm. this thing is maintained itself throughout the day. we get a little during the overnight, but all day since sun up talking about a category 3 storm, 120-mile-an-hour winds. good reason it is maintaining itself. still sitting over the eastern waters, just east of florida and this is where the waters are warm. warm enough for the tropical system to continue to hold its strength. it is not moved over land. that he that's good. this shows the bands of rain as they're wrapping around the very well defined eye, that eye north of daytona beach and indeed it is about to move east of jacksonville, about three hours from now. you're going to notice your wind go from the northeast to the north. that does introduce new direction. you may get new wind damage done

as a result of that. a lot of reports, gusts going to 80, 85. earlier gusts went over 100. here is the forecast track, it will parallel the coastline. things get much worse in georgia, in south carolina, and by the time we get later in the day tomorrow, you're experiencing some of the worst around north carolina and wilmington. for georgia to south carolina, follow all evacuation orders. we have folks who chose not to follow those orders in florida. calling for help, but first responders weren't able to get out there, grounded because the storm was coming through. something to consider here as we go through and storm surge becomes a big issue. we think the storm surge on the order of 6 to 8 feet. 6 to 9 feet. i'll be back again with more in a little while. >> matt, thank you very much. now to florida, morgan brennan live in daytona beach. we're on the conference call network wide this morning. as you were talking, you said, there goes a piece of the roof, blowing off the row tell where you are at.

what is the condition of where you are and how high is the water where you are? >> it is a good question. we have seen a lot more pieces fly off this building and the other buildings around us. the first thing to note is that we are still without power here and in general, in the state of florida, we're quickly closing in on a million power outages. about 930,000, maybe a little more power outages being reported in this state. but take a look, we have the wind whipping. if you look at the surf, we have some very big waves that have been crashing into this pier that is behind me, where we have a joe's crab shack. that is largely still in tact. what we're hearing from staffers in this hotel is that another pier, further down the beach, with another seafood restaurant, has apparently been swept away. a little earlier today, we saw a dock that was down here on the beach, detached t was thrashed around in the surf before being carried all the way over to getting ensnarled in the pier

out here. we have all kinds of debris that is strewn about on both sides all around this hotel and the neighboring buildings. stuff that is just coming off the building. to the right of me, the historic campbell clock tower. we have multiple clock faces that are cracked and pushed in. so that's just the inside. we're -- outside, excuse me. we're also seeing damage on the inside of this building as well. so you've got water that is pouring through light fixtures, lobbies that are just covered in soaked towels and if you walk on the carpets, including on these upper floors, your feet squish with some of the water that has come in. some of the staffers here are telling me based on eyeball assessments of the damage we have seen so far to this hotel, that they think that this could be closed for a while after this storm passes. i'll also just note, you got hotel staffers and families not to mention us and power company workers that are staying in this property. those hotel workers and staffers are staying in an interior

ballroom to stay safe. so this storm is still very much going on and the damage is continuing to rack up. >> morgan, you think -- this is marcus, you think about the amount of water you're talking about in the building and on the streets, i want to make sure that people understand who have never been through a hurricane, that isn't from the rain. that's from the ocean and the surge, is it not? >> yes. it is -- my understanding, i can't speak to what is pouring through the light fixtures from upper floors, but in terms of what is squishing, in terms of the water in the lobbies, this is all from the surf. we have seen a lot of storm surge coming up here over the last couple of hours. i don't know if you see it behind me, but this whole back part of this hotel is just covered in water. there was a volleyball court here. that is just completely flooded. we have seen the surge take out parts of this railway here on the seawall. so just, yes, it is a lot of this is from the -- >> one last piece what a lot of

people don't know, this area is not typically getting hit by hurricanes. so when you start in cape canaveral and work your way all the way up to daytona, these are towns that are reliant on tourism, a lot of small businesses, restaurants or not, and not only do people not come there, but when the sun comes back out, the businesses are gone, so the devastation that happens in towns like cape canaveral, daytona, st. augustine is far more pronounced than it is in big metropolitan cities because these businesses aren't really built for this. >> yeah. i'm glad you brought that up because one of the things coming into the storm, there were a lost people coming out to take pictures of the ocean before the evacuation took hold at sunset and so many people who have moved down here in recent years said they never actually have been through a hurricane of this magnitude before, this was their first time. when this was a category four, the expectation was as this came into the area, it would be the biggest hurricane this area had

ever seen. you're right, this -- we have not seen the same level of severe hurricanes at least in recent years here as we have in some other parts of florida. >> morgan, thank you. stay dry. morgan brennan. >> turning to big stock mover of the day, shares of honeywell on pace for its worst day since 2008 since it cut its sales forecast. dean dray. great to have you with us. the shares are really taking it on the chin because this is so uncharacteristic of honeywell in terms of what they have said about their businesses, what would concern you the most? >> right now, a shock effect going on with the preannouncement by honeywell. the biggest concern i think is right now on the macro. dave cody made the point that a slow growth macro, they have been operating in, just got slower. and then beyond that there is some familiar head winds they

have been going through, in aerospace and short cycle business. a macro worry, a surprise factor they weren't expected to negatively preannounce and some -- >> and that message about the weakening in september, that was echoed by the warning that we got from kpg. two sort of cyclical companies raising concerns about global macro. in terms of the read through to the rest of your coverage universe, s&p industrials are down by more than 1%. look at a broad swath of the industrials and all taking it on the chin. bald, techtron, utx, crane. what is being thrown out with the bath water? >> you're right. it is when one of the bellwethers, safety stocks like honeywell, when they feel the pressure on a macro side, and confess and negatively preannounce, the read across is pretty broad, not surprised to see that. you should expect to see some of the aerospace weakness and then some of these other companies

that you listed off. so we're still early in the preannouncement season. but it is putting investors on edge here. >> what is the next bellwether you're watching for to say honeywell is an outlier or honeywell is the trend? >> the one i would point out that we're positive on is ge. we have talked about ge being very much a stock that will do better and a risk off environment, what we have here. the appeal here for ge, they have got at least ten quarters of revenues in backlog, so they're really not as dependent on their short cycle business. so that will be a bellwether they report in a couple of weeks. >> what is also unusual for the honeywell situation, dean, is that dave cody is approaching the end of his tenure here and had the failed bid for utx and this rare miss. how do you think this affects his legacy? >> so, it is interesting. at this stage of any ceo's career, dave cody had a long and

fabulous run. i don't think a quarter is going to jeopardize that legacy, but it is reassuring for investors to know he's at the helm, they have a plan in place, and that certainly was the message here. right now the market is recalibrating what lower earnings look like and who else that can impact. >> dean, thanks for joining us, appreciate it. dean, outperform rating on shares of honeywell. shares of deutsche bank having a pretty volatile day. the stock has come back after reuters shot down a report that the investment firm for the nation of qatar would cut its stake in the company. now, earlier, jim cramer sat down with bank of america ceo brian moynihan and asked for his advice on what to do about the german bank and its problems. >> i this i if you think about the american banks, because the impatience of investors like you, we're forced to get the capital up very early. standards in 2019. get to the place you have to go, because we're going to ask you about how you get there.

>> you can see the rest of that interview tonight 6:00 eastern time on "mad money". stocks cutting their losses a bit, but the major averages could have their first down week in a month. and we're also following the path of the hurricane. imagi as it heads up the east coast. "power lunch" continues after this. or. or. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very impoant to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.m d get up to six hundred dollars. what's going on here? i'm val, the orange money retireme squirrel from voya. we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? more of a spokes metaphor.

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if we have a goldilocks economy, why are interest rates near zero?

so, you know, i think it is a recognition that things are actually doing fine as mike and jamie said. could do better. but it is certainly not an economy that reflects a distressed rate environment, which is no zero rates. >> morgan stanley's ceo speaking at a conference in washington today. and checking the markets, the dow has just, i'm told, turned positive by a little bit. and now just a little bit lower by 0.1%. so what? let's bring in nancy tangler, chief investment officer -- >> don't say so what to me. >> so what matters now. >> so what matters. our contributor ron insana. let's talk about -- >> nice way to start. >> so what. it is positive. it is negative. what is the bond market telling us? >> rates have not come down that much. given what miss mester had to say, we're in an environment where rates could go higher, it seemed like the bond market at

least initially was suggesting -- as much as i'm again somewhat philosophically opposed to it, by december, rates may go up a quarter point. >> you see it that way, nancy? >> i do. look at libor. i think we have to be -- i don't think it is a big deal, though. i'll say so what. >> okay. >> might be philosophically -- >> take the day off. >> that's it. it's a wrap. >> how do i make money in an environment where rates may go up, where the bond rate is now 1.75 basically. how do i make money? >> in bonds. >> either? >> i think stocks are more attractive here. i say that with a little trepidation. i think growth is terrible. i'm really eager to see what earnings look like. but i do think that you can -- you have opportunities with valuation. i talked about this repeatedly, health ware care is an area whe we're interested and strong dividends and strong dividend growth and attractive

valuations. and i understand the political risk. >> the bond market still is in a terrible place to be if the company is properly leveraged. do you think it still is? >> we're playing it through a number of different vehicles that are, like, preferred stocks, we do own a fair amount of closed end bond funds. but those have played out pretty nicely. we own the stone ridge funds, which invest in catastrophic bonds so that's not -- >> pay $72 billion market right now, actually. >> little controversy to this. i think the fed raised rates and they didn't do it, but the bond vigilantes have -- >> i agree. ten-year, up 30 basis points. one third of a percent in 90 days. shorter end moved up as well. we're all looking for that headline -- dollar stronger. gold is getting crushed. i feel like the bond vigilantes have been quiet for year and just taking back control of the market from the fed. agree or not? >> i agree with the premise that

financial market conditions have tightened because bond market interest rates have gone up. i don't think this is really that much changed from history. the bond market is always one step ahead of the fed. in my observations over time. the fed is usually playing catch up. if the bond market suss out something, or figures out that the fed is intent on raising as maybe stanley fisher indicated today -- >> my point, nancy, would be -- >> so you're just going to jump -- >> back to nancy now. >> i'm going right over here. no, no, vagaries of time. not just the bond market, also to melissa's point, the dollar and, ron, you mentioned gold as well. if the fed raises rates, will we get a big move or is this the move? >> who knows? i think i'm more inclined to agree with you. here's the worry. this is a shoutout to nancy la czar. she published a great piece today. you've got unemployment at 5%.

you've got historically that coincides with earnings growth year over year. we're at 2.2. and you have corporate revenue growth of 2%. it is normally 8%. margins are getting squeezed. i think we're at a peak in earnings growth. and i think that's going to put pressure -- i'm sorry, on hiring. that's going to put pressure on the fed to moderate. >> i was going to say, with respect to -- five quarters in a row now of declining profits year over year. this may be the sixth. i'm not that in love with stocks. i wouldn't that be in love with treasury bonds. i think you might have a couple of months that could get more turbulent than what we have seen. >> what does honeywell tell us about the economy? you're a shareholder of honeywell. >> we sold it. it is one of the great opportunities where i talk about a win. we hit our valuation levels in the summer. so we have been slowly moving into utx. it tells us what the global economic environment is telling us, it is flat out there, folks. it is flat in the u.s.

and we're the best house in a bad neighborhood. i think we're -- i agree with ron, i think there is going to be a lot of choppiness, depends, all this can go off the table with the election. >> or can just come right back on the table. >> did you blow up the whole segment, nancy? >> i said so what. >> respect to the election, i think that's incalculable. i'm working on a thesis that if donald trump were to win and run contrary to what people might think i would say. >> it is that kind of segment. >> how would you say to make money right here? >> i would be short the short end of the curve more than the long end of the curve. i think the curve would flatten if the fed indicated it was going to go more than once in december. and, listen, stock market is going to chop around. it has been doing this,

grinding. we have to get through the election just to get calm and that's still four weeks away. >> hasn't been a bad year. >> no. up single digits. >> it is exhausting. >> it is exhausting. >> nancy, thanks. ron, appreciate it. speaking of the bond market, to the bond market, a guy who has forgotten about it than we already knew. rick santelli. what is the santelli take on whether or not the traders, bond traders, gold, dollar, whatever, they're moving ahead of the fed. they're saying something you fed and we'll do what we want to do anyway. >> i totally agree. i don't know if i would frame it as moving ahead of the fed. i think they're moving ahead of all central bankers lack of benefit to current policy. i think it is showing up in various ways. i agree with melissa lee. there is too many balls that are being juggled that all have a certain form of symmetry, the way the bound dropped and the

gilt moved high, how the curve moved with regard to higher rates on a middlings job report. all the sovereigns moving together. this is a big deal going on here. even if we don't punch through, i'll get to the charts quickly, if we look at 6-1 start, two years, 2s and 5s comping back the first day of june. fairly similar on 10s. 14 basis points on the week as it stands. june 1st chart. the brexit vote day, the yield around 174.5. on the 13th of september, 173. this is a huge significant level and, of course, we're making it difficult. if we close through it, there would be a whole lot more selling. if you don't close through it today, doesn't mean it is not going to happen. i think it will. the gilt, over a 4% move in the currency and you see what is happening to gilts based on brexit day. and finally, quickly, the pound, the pound is important.

if it keeps moving down, that will be part of the catalyst in pushing the rates higher and all arm and arm. back to you. >> i'll take it, rick, thank you. how much would you pay for muhammad ali's mansion? coming up, all the details and the asking price. all over the markets. dow slashing losses, was down triple digits. earlier in the session, just about flat now. goldman, travelers, chevron leading the comeback. your insurance company

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hello, everybody. i'm sue herera. here is your cnbc news update at

this hour. hurricane matthew heading towards georgia and now south carolina. more than 800,000 people have lost power in northeastern florida. the big concern now from the category 3 hurricane is the storm surge north of jacksonville. that area is seeing sustained winds of 115 miles per hour. new jersey transit planning to resume partial train service at the hoboken terminal on monday. the tracks have been closed since last week's deadly commuter train crash. it killed a woman on the platform and injured more than 100 others. the cause has not yet been determined. the ceo of back page.com arriving in a dallas court today for an extradition hearing. carl ferreira was arrested yesterday and charged with pimping. he's also accused of engaging in money laundering. the nfl finding pittsburgh steelers wide receiver antonio brown about $24,000, flagged for unsportsman-like conduct after his raunchy dance in the end

zone. he was fined for twerking earlier in the season. back to you, melissa. >> thank you, sue. fined for twerking. >> i think that may be -- we talked about the ratings problem. it is stupidity like that. you got kids watching. families watching this. i understand celebration, but that's -- i don't know. i'm not done with that. >> we watched the game last night. there was an ad for -- >> a game last night. >> a video game. for a video game that was as violent and disturbing -- and 9:00, kids watching. not good. >> not good. >> the oil market here closing for the day. jackie deangelis at the nymex. big week for oil. >> a big week, that's right. interesting close on this friday as well. yesterday we hit some resistance just under the $51 mark. today, we drop under $50 and we close there. this isn't really a surprising reversal. we usually test the levels and

traders said they didn't think that crude had a lot more steam past that $50 mark. even with the opec deal in play. now, speaking of that deal, next week there say world energy congress in istanbul. more producers are going to meet on the sidelines. this is going to be opec players and nonopec players, namely russia. not necessarily likely to get on board here. remember, when the news broke from algiers, one of the headlines was that opec seeks cooperation with the nonopec producers. that could be the caveat that takes this deal off the table. if we don't hear at the end of november or anything out of this congress next week about the deal, we could see prices potentially go much lower from here. it comes to the supply and demand situation, still not that much has changed. remember, rig counts went up today because the prices are higher. back to you. >> jackie, thank you very much. and we're two days away from the second presidential debate. different format. john harwood joins us from washington. the format is going to be one of

the telltales. who manages it better, right, john? >> it will be a challenge. the talk show format, the town hall format is more informal, engaging directly with voters. hillary clinton has had more practice with that than donald trump has. and there is a lot of pressure on donald trump, he's behind in the race, he got a breather from mike pence with that solid performance on tuesday night, but donald trump needs to turn things around. so his aides sent him to new hampshire for a town hall last night, which mimics the forum he's going to have. it wasn't entirely the same. and he went off script a little bit, went after yours truly and others who had reported things he didn't like. but donald trump has got to find a way to change the momentum of this race. look at these poll numbers from before the first debate on the 26th of september, he was down just a couple of points to hillary clinton in the real clear politics averages. but now, after the first debate, after the difficult time he's

had since then, that lead is almost double to 4.3 percentage points and donald trump is behind in nearly all the big battleground states. he's got to figure out a way to stop the bleeding, turn things around this is one of the two big chances he'll have left this debate on the 9th in st. louis, sunday night and then one on the 19th in las vegas. not much time left for him to turn things around. >> john harwood, thank you very much. who will be there but john harwood, cnbc too will have full coverage of sunday night's debate. it begins at 9:00 p.m. eastern time. camping world going public today. so marcus, you went public. were you -- did you totally embrace the idea of going public? and how will you run your company differently now that it is a public company? still have a controlling stake. >> yeah. let's start with the second question. i think the fundamental challenge that a business has to really face when it is thinking about going public or not is are you going to change the way you

think about the business and your philosophy and are you going to change the way you run the business? typically you run it on the balance sheet and run it on earnings. most importantly on the backs of people and make sure they're taking care of and they're running strong. i notice that when i went on the road show, to sell the stock, there is a lot of questions about will you change this and change that. my answer was, you know, no. i won't change it. so in our structure there is a golden chair i have which gives me 52% of the vote. i primarily thought that was important because the philosophy of the business and the results of the business are really tied together. if you change the philosophy, you change the way you think about earnings, change the way you think about revenue, by definition the results have a high likelihood of changing. better, worse, i don't know. but i'm not willing to -- >> we interview ceos all the time. i'm sure you had ceos, they have done it to me, i say something about the stock and the ceos, like, we don't -- my job is not to look at the stock price or we

don't look at the stock price that much. i'm thinking my initials, right? bs, because that's the report card for how the market is viewing your success. how much will you be looking at that cwh ticker? >> probably more than i should. >> it is a real world measure of how people view camping world. >> yeah. it is the real world measure of how the investment community -- we cannot take our eye off of making changes that change the customer experience or change the employee experience. that is probably more important than the customer experience. but i'd be lying to you. i'm going to look at it. i have a lot of net worth in the business. if i see it go up or down, it is going to be a roller coaster ride. an adjustment for me, for sure. >> what is your growth strategy? do you expand your footprint? organic organically, do you buy other companies? >> the strategy has been build and small acquisitions during the really good time and slow

down the build and make massive acquisitions during the slowdown. we're a database company. it is really dumping as much as we can into the database. because use a capital structure that requires me to keep my debt low, keep my cash rich and buy as much as i can for no multiples. multiples are very low. >> you said that twice in this show. what do you mean by that? >> our whole business, and the two brands, are predicated on the rv lifestyle, not a transaction. so at the center of our business is the actual database, the number of consumers that transact with us. our goal is to sell them lots of different products and services. sometimes a magazine, sometimes a consumer show, sometimes service or parts. we think about it because cross selling those products to a database that makes sense is what we do now. >> i'll push back, though. you get a lot of ceos who come on and they're with whatever industry you think they are. they say we're a data company,

they collect valuable data. isn't that data just a tool for you to sell more things? therefore, you are effectively still a retailer. not a data -- you're using the data to help sell, right? >> but i sell products other than rvs. we sell warranty and insurance, roadside assistance, clubs. >> but still selling. >> we sell them in different channels. >> not selling the data. >> we never sell the data, never rent the data. >> you're using the data to sell more products. >> we use the data to sell more products, to change people's experiences to see trends, but we're a data company because we do not make decisions to buy or open stores as our primary strategy. the annuity section of our business, the $80 million of ebitda is the most important $80 million of like $280 million because in a dip, it stays solid. so we have all of our employees thinking about not just collecting e-mail addresses and phone numbers, transacting with people so that people that are

hand raisers, not any different than a funnel, right? if you're grabbing people at the funnel, how do you take them down through the funnel? that's how we think about it. >> who do you admire? what company or executive do you admire? >> private, public -- >> any -- >> private, public? i tell you, i really learned a lot -- >> i prefer public. now you're public. when you have a child, there is no parenting class, you learn as you go. you're now a public company, learning as you go. >> there is one gentleman who is not a public company, but i learned a lot from, very stern adviser, johnny morris, who owns bass pro shops. he understands data, understands the customer experience. is not just a commodity seller. he's been a really phenomenal in terms of mentoring. >> you talked a lot, melissa's question, also, about cross selling. and good businesses do cross sell. but apparently wells fargo crossed the line in its cross

selling. and they were selling products to people who didn't know they were getting sold those products. how do you hit the right spot in your culture that says we want to cross sell. we're all about cross selling. but not cross over into beha behaviors that are wrong? >> the first is developing a suite of products that you know are truly additive to the consumer. not alouing your managers and your department heads to develop products that on the fringes look good, but you know have high margin, low return for the customer. that's number one. number two, it is creating a culture that is driven by pay plans and correlating pay plans and performance, but never really setting up the employee to make a decision that is so self-serving. selling somebody something is important. but retaining them and getting them to be recurring is more important. and so we build our compensation models on reoccurring revenue.

>> you don't incentivize them to just -- >> we pay the commission to sell, but they get paid a higher commission to retain. which means the customer saw value in what we were selling them, had a good experience, and so the dropoff rate, right, the attrition of the product, will tell you if the customer thought it had value. >> i'll tell you, as an rv owner, you need a good customer relationship because those things are complicated. >> you have some of the products i saw, right? >> yours doesn't work, does it? >> i have two rvs, one i got taken badly on. a guy told me one that didn't work. i had to buy a different rv and it has -- one has 18 batteries. and so much complexity. if you don't have a relationship with the customer, they'll get frustrated because they're hard -- like buying a home with wheels but everything -- it is fun. >> a lot of moving parts. >> a lot of moving parts. relationships still matter. >> it is the only thing that matters. >> leave it there.

marcus, thanks. >> you're welcome to borrow the one that works anytime. to seema mody for a market flash. >> let's look at shares of canadian online gambling company amaya spiking on a report it received strong interest from strategic players and private equity firms, some of the bidders acording to the report, william hill, a british bookmaker and a sporting bet company. looking at shares up about 3% off its highs. it was up about 8% on this report. >> seema, thank you very much. if you had to choose one investment right now, american stocks, or emerging markets, what should and what would it be? may not be as clear cut as you think. our traders weigh in next. send in bids for my broken down busted up rv. all bids will be looked at. they may want the latest products and services, but they demand the best shopping experiences. they're your customers.

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let's look at emerging markets right now on trading nation. so far this year the emerging markets etf, biggest one, there is many, but the eem is up 17%. that is almost three times the amount of the lowly s&p 500 etf

which is up about 6%. david seeburg and max wolf. so, david, simple question, do you keep buying eem because it has done well or because it has been done well it is time to sell? >> i don't think you just buy anything because it does well or has done well. you have to see what the risks are. i think in general, i think there are risks going to the end of the year. i trade to the end of the year. longer term, i think it is set up to continue to outpace the s&p. just given the fundamental backdrop of growth in a lot of these emidteerging markets, commodities into next year are going to continue to do well. and obviously very tied to commodities. i think emerging markets is a better bet for a longer term player, near term i would be trading than just based on different levels. we break 3680. 3680 is an important level. one of our technicians here, chris, pointed that out. if we break 3680, could be a

full drop down. we break some pretty important trend lines there. so keep an eye on that level. >> max wolf, your view on the emerging markets, the eem, very heavily skewed to asia and china, by the way. do you like it? still a good value? >> we like it. but you buy the eem, you're buying a lot of exposure to chinese tech, including chinese internet stocks, partly looking so strong year to date because they really underperformed most of the other benchmarkable type of ideas you could do in the same space. chinese tech looks frothy but less. long-term we like the eem space. we think there will be much more risk, factor in the markets going forward. we had a rerun of '99, money is flooding to the u.s. as a safe harbor, relative safety play, and going to u.s. tax. some of the other tech companies were cheap, what wear seeing with eem is people crowding into that. the larger growth rate is going to be from the emerging market

space. you can get in there even cheaper in the future because the return of risk will always hit hard on markets that not only fair -- but generated with a different risk level. we're seeing rotation because people are trying to get out of parts of europe and the uk and that's going to force them to push into china and the u.s. more. >> british bank, buy a chinese internet company, makes perfect sense. max and david, thank you very much. a look at the eem, which has done pretty dog gone well. for more, go to our website. snapchat's $25 billion valuation. is the company worth that much? will the stock be the next facebook or the next twitter? >> the latest from trading nation.cnbc.com and a word from our sponsor. >> over bought and oversold indicators are generally used differently depending if the stock is wage bound or trending.

look to buy when an oscillator like the rsi falls into oversold territory and moves back above it. look to sell when the oscillator rises into overbought territory and then drops below it.

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welcome back. let's talk snap chat or rather snap as the company is preparing to go public. that's a similar valueuation to all state, marriott and kellogg. the company now known as snap. >> snapchat has only been around for about five years. here are numbers behind that valuation. active users that drives revenue, snap chat passing 150 million users daily. that is more than twitter according to some estimates. twitter only publishes monthly active users number. instagram has 500 million monthly users before brand new stories feature its ceo told buzz feed that daily active viewers has hit 100 million. not too far behind. for ad revenue snapchat is

projected to generate 1 billion in 2017, less than half generated last year. facebook hasn't disclosed numbers about instagram's ad revenue but could be $3.2 billion this year. the volume could be indicative of a huge growth opportunity if it can gain more users. if it doesn't it could end up in twitter's position. >> thank you. let's dig deeper. joining us now is founder and editor and chief of information. i think a lot of people out there who are ipo watchers are very excited about thas because they think perhaps this opens the gates for more to go public. it could do that or postpone the debut for others because there is not enough oxygen in the room. you don't want to go to another unicorn because money deployed

to that one. >> absolutely. this is driven by the shifts we are seeing in silicon valley with the late stage private markets drying up a bit. with the hedge funds and mutual funds not paying big valuations in late stage rounds companies are looking to public markets again and snap chat in part because just doesn't buy the religion that you should stay private forever sflmpt kw you get a valuation. then you can extrapolate it. based on the $25 billion reported valuation can you decide or assess that some companies either under value or overvalue? >> it is very tough to say. this is very early. we had the information reported earlier in september that snap chat was preparing to go public but they haven't hired banks. it is still early. you have your target price but

the market will really decide so it's tough. the comps are tough. facebook and google not necessarily great comps. snap chat as the numbers earlier showed is still pretty early on the business side. i do think it can hit a billion in revenue. we are seeing a lot of momentum but it is still going to be a growth play and you have to believe there is a lot of upside. >> it feels to me like a company that is having trouble finding money up front in the private market and wants to get a sense of what the market's response is going to be. >> if you are saying that the companies are having a hard time giving them late stage multiples at the levels they used to be at why not try something else? >> they had a flat round this year. a very large 16 billion

valuation private round. the book case would really be that snap proved it is one of the new platforms. it is going to be a place where video ad dollars are going to flow, and there aren't many others like that right now. that's the case they will be trying to sell investors on. >> you know there is always something new. i guess i'm feeling old because i remember the new stuff that was new at one time. is there any talk that these platforms will go to a subscription model and say scrap the ads and just charge 20 bucks a year? >> it's not the model that the internet companies love out here. i do think snap is a little bit different. they are focussing on users in developed market. we have reported they are not interested in places like india right now which makes them the exception if you look at the big internet tech companies. so they are focussing more on user modernization but still

advertising. >> thanks for joining us. >> check please is next as we wrap it up here for friday. 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. now that fedex has helped us we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything.

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welcome back. marcus has been with us for the past two hours. premiere episodes of the profit

here on cnbc. >> check please. we call this segment check please. your chance to get whatever you would like. >> does it mean it is over? >> it means it is almost over and you are paying. thanks. appreciate that. for me what is not over is i think there is still room in the labor market. i don't believe that all of a sudden that this is the new normal. >> what does deceleration tell you in payroll gains? >> it tells me that companies are starting to get a little skirmish and not sure what to do. you'll see that maybe change as they do their 2017-2018 forecast. right now we are in budgeting season. people are just holding and waiting to see is my manager going to allow me to hire certain people? what is happening with this budget? >> they are all seasonally adjusted. you would think they start to see the impact of seasonal

hires. >> you may see that but i still am going to fall back to the contract labor piece. i believe more people are working as contractors. you look at the technology space. really strong. >> great to be with you on a nice debut. >> thanks for watching power lunch. >> "closing bell" begins right now. > . >> honeywell surprised the market by cutting its guidance. down 7.5%. we wonder if this is a sign of what is to come. >> and jamie dimon speaking out on brexit, the u.s. economy and what he says could be his campaign slogan.