secondly, pete talked about airlines before. hawaiian air, that goes, ha, symbol goes above 50. >> the dollar, watching that? >> the dollar oil. >> rates, oil, everything. >> all right, there is a look at the major averages. 151 point decline for the dow. "power lunch" picks up that story and much more right now. >> welcome to "power lunch." here's what on your menu now. stocks are tumbling. dow taking a triple digit nose-dive. we are digging in on this move lower straight ahead. the billionaire calling donald trump a, quote, clown, and his rise and evil miracle. those remarkable headlines and who said them coming up. and your disaster du jour in need of serious tlc today. a stock losing investors a ton of money. "power lunch" starts right now. >> welcome to "power lunch." i'm melissa lee.

let's look at that stock, nose-dive here. we're deep in the red. triple digit losses as brian mentioned on the dow jones industrial average, down by 165 points. the s&p 500, off the session lows by four points or two, 22 points the loss. nasdaq feeling it down, down 1.3%. apple, a bright spot on the nasdaq, helping that index. biotech down big time. it is down by 3.5%. and, again, as we mentioned, apple is holding up. we should note too that telecom in terms of s&p sectors, the only one in the green. >> thank you very much, melissa. good afternoon, everyone. welcome. i'm tyler mathisen. here is what else is happening at this hour. the supreme court hearing the arguments in the long running patent dispute between apple, which had won at the lower court level and sam susung. small business optimism taking a dip ahead of the election. we'll have more on that in the next hour. and tropical storm nicole

expected to strengthen over the next few days, could become a hurricane by tomorrow. meantime, we begin with a little hurricane on wall street. maybe just a squaw. >> and the important thing, tyler, is down across the board. let's look at our sector leaders. remember what has been up recently. tech, energy, banks, and health care. and those are the groups that are down the most. materials down because of that disappointing guidance from alcoa. what is moving the markets, a confluence of things moving things today. a stronger dollar near the highest level since march. higher rates particularly the ten year. we have some weaker guidance from alcoa there that is weighing on the termaterials an industrials. and let's look at some secretariers thsecretar sectors that are down right now. there is a possibility that the house could go democratic. i think that's a small possibility, but we could see effects on pharmaceutica stocks. to the extent that clinton is in favor of more regulation of

drugs, banks and oil companies, that could be an issue. look at big pharma. abbott, merck, johns johnson & johnson, all down 2% to 4%. banks, clinton in favor of more regulation of banks. see banks at 52-week highs. even yesterday, all of them down today. finally, energy stocks also in favor of more regulation of that sector and you see that. i'm not saying this is the primary factor that we're down, but this is becoming an issue. i think the election is clearly starting to influence some sentiment on wall street. back to you. >> bob, thank you very much. verizon communications ceo lowell mcadam weighing in on the samsung phone crisis on cnbc monday. take a listen to what he told our julia boorstin. >> this is by far the biggest concern i've seen in cell phones during my tenure. i do expect samsung will get back on their feet. they have got a lot of high quality engineers. they got a good customer focus.

this is clearly a black eye for them, though. but at the end of the day, they'll recover. >> how can samsung recover from this if they can? paul argenti, professor of communications at dartmouth. but we begin with josh lipton with the latest on samsung's crisis from san francisco. josh? >> well, tyler, talked to tech analysts and they will tell you that this is simply unprecedented. yes, consumer electronics companies do stuff, recalls, always have, always will. but it is very unusual for a replacement product to be just as defective as the original. samsung has responded, the company saying for the benefit of consumer safety, we stopped sales and exchanges of the galaxy note 7 and have consequently decided to stop production. investors are responding. stock dropped 8%. its worst day there since 2008. and samsung's pain could be apple's gain. drexel's brian white thinks apple now has the chance to add

at least 8 million incremental units this year. some are wondering what the real cause of this samsung issue is. remember, the initial explanation was at the note 7 problem was because of the faulty batteries but analysts say if replacement batteries had the same flaw, then that smacks of serious disorganization at the company, or the problem actually involves more than just that battery. it might not be all bad news for samsung, the team at nomura saying the negative impact will be offset in their opinion by the company's semiconductor and display divisions. they rate samsung a buy. >> josh, thank you very much. how can samsung recover from this? let's bring in paul argenti, professor at dartmouth's tuck school of business. welcome, paul. good to have you with us. do you think samsung can come back from this? there are examples long throughout history of companies that have recovered. gm survived the core there.

ford survived the pinto. and there are others that have not survived. >> yeah, i mean, i think there is a difference between the company and maybe the product that we need to distinguish. and that's a question that i haven't really figured out yet. but, yes, of course they can survive. i think the formula for success boils down to the same things no matter what companies we're talking about. admit you made a mistake, tell us what that mistake is, if you know what the mistake is, tell us, you know, why it happened, how it happened and tell us how the future is going to be different. the problem here is that engineers and particularly korean engineers want to be very sure before they answer questions like that. and korea is a high context culture. they like to know the answers and take their time and we're not used to that in our culture. i think those two things are colliding right now. they're taking their time to figure out what is wrong and we're trying to figure out, give us an answer as quickly as you can. consumer products company would do that, apple would do that. samsung is not going to do that. >> that's because they're built differently effectively. >> i think they are.

i think, you know, what a high context culture means is that people want to understand what the problem is, they have an implicit communications style, they're different in the way they approach things and in some sense it is a better approach, just not what we're used to in the west. in korea, this would be a no brainer the way they're handling it would be well thought out. samsung is a company with a lot of moving parts. i'm not worried about the company surviving, but the product is another story. that's the real question. can this product survive, the answer is probably no. can another product from this company make it? the answer is yes. >> how long is the consumer memory? >> well, in the united states, consumers have pretty weak memories, i would say. doesn't take much to turn things around, gm, wendy's, a whole host of companies, or chipotle. you can turn it around fairly quickly and the thing is, you know, get this product out of the hands of consumers as quickly as you can, give them something else, very fast, and

then come out with a killer product that doesn't burn up in airplanes and in your car and i think that will probably be good. sometime in the 6 to 12 month range is my guess. >> is that the missing piece? what struck me about the samsung response, we'll replace your phone and eventually we will, you know, we'll halt production. but there wasn't any monetary, you know, effort to reimburse consumers for the inconvenience of not having a phone for a while. even t-mobile issued a $25 credit for samsung galaxy note 7, but you didn't hear anything like that from samsung. >> i think that's a big problem. compared to audi, for instance, i have a tdi myself, and i'm getting something from a company which is certainly better than what most companies would do, and i think it makes you want to buy the next product or hold the next product. them just saying we'll give you another phone, i would rather have another phone i know isn't going to explode. so that is a problem. but, again, i think it is part of the culture, the other phones are fine. why should we give you money too? we're going to give you a

perfectly working phone. the logic makes sense but they're not getting the au inti emotional part of this. >> this note 7 is clearly to the, literally and figuratively. but you -- >> burnt toast. >> and i own a samsung phone, which i've been -- i'm telling you, it does get warm for when i'm running video on it. it gets hot. it makes me wonder -- >> your phone calls, no doubt. >> my phone calls are hot. you know, it makes me wonder whether people will accept other phones from samsung or whether this is just a huge opportunity for the htcs, the lgs, motorola is basically out of it, but apple. >> so it is an opportunity for them in the short run. but, you know, the brand of samsung overall, i actually just saw a study last week from the reputation institute about the samsung brand and its

reputation, how strong it is. and the underlying factors that make this company a great company. in some ways stronger than apple because of the number of moving parts. i would say kill the product, disappear for a while, come back with something else, maybe with a different brand name, this company would come back and americans have short memories and long interest in good products. you give them a good product, they'll take it, that's my guess. >> i think you ask people what the best television set in the world is. i bet you a large amount would say samsung. >> i have one. and i wouldn't buy anything else right now, so for sure, yeah. >> all right. >> i wonder how many people -- paul, thank you very much. i wonder how many people are so trapped, though in the ecosystem of android that it is not going to be an apple benefit, it will be probably be a google pixel benefit. >> or lg or -- >> they'll stay with android because all their apps and everything they may have purchased, may not be the hardware samsung. >> josh mentioned that brian white at drexel estimated 8 million benefit to apple. i wonder what percentage of the

total recalled units that would represent, what assumptions there are in terms of how many people actually make that switch as opposed to as you say switch to another android provider. >> we know it is uncomfortably hot in tyler's pocket. >> it is. not right now. >> don't put it in your pocket is what i would say. >> i'm a dual threat kind of guy. iphones and -- >> you're a modern day gunslinger wyatt earp android on one hand, iphone on the other. >> it has been a different picture for apple. while samsung was dealing with visuals of exploding batteries and jeeps on fire, apple debuted the beautiful pictures taken with the iphone 7 of nfl opening weekend and since that weekend, visual of the two stocks couldn't be more different either. apple stock up 13% since then and is that a year to date high? it is a bright spot here on the nasdaq 100. news flash, jeff bezos is building an empire. amazon's latest venture is coming to a neighborhood near you. where won't the retail giant go?

that is still ahead. first, a new report out taking a closer look at the candidates' tax plans. we have that one coming up. ake . with directv and at&t, watch all your live channels, on your devices, data-free switch to directv and lock in your price for 2 years, offer starting at $50 a month. [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection. 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.

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learn more about the safeguards at yeson64.org. welcome back. a new report out taking a closer look at the candidates' tax plans. steve liesman is here with the details. steve? >> everybody is talking about the tax plans out there. tax policy center joint venture of the urban institute and

brookings out there with a new report and other things when it comes to the effects of both clinton and the trump tax plans. and they're being described as mirror images. graphic created by our graphics department. they are indeed -- about the only thing the same is they're both smiling on both sides. but now take a look. according to the clinton would decrease the deficit by $1.6 trillion over ten years. trump's plan would increase it by $6.2 trillion. clinton would soak the rich, big taxes on the highest income americans. and put higher taxes on capital. they estimate they haven't done an estimate of growth yet. they had problem with the software on that. short-term negative for clinton and longer term, neutral to slightly positive. trump would increase deficit by $6.2 trillion, coddle the rich, opposite of soak the rich, slash the taxes on capital, bringing the tax rate down to 15% on many corporations out there. growth seen as short-term positive, but perhaps long-term negative because of the effect

of the deficit spending. the idea in the press conference with reporters, the analysts are skeptical that trump can cut government spending as much, since he's taken military and entitlements off the table. and just real quick, we can put it into people's pocketbooks. here is the effects, folks, on the quinntile. this is the clinton plan. you can see would go up for everybody but the top. when it comes to the top, their incomes would decline by double digits. here is the trump one. notice all the quinntiles do a little better under trump than clinton and except for when you get to the top there, the top does much better, 6.6% and they would see also double digit increases in their after tax income because of the way things go across there. that's the analysis and we have a story online and that will send you to the link. so you folks at home can find out exactly what it means for your budget. >> the point of yesterday's

exercise in digging into who the top taxpayers were was not to say the plans won't work. i have no idea. it is just that we hear a lot of, well, we're going to do this and charge the 1%. we're going to do that and we're going to charge the 1%. as we pointed out yesterday, 80% of the rich make under 500. so those are working wealthy. they're well off, but they're not bill gates. i wonder if there is enough money to take from the group that would fund some of these things. i don't know. >> well, i mean, that's -- >> it is a relative -- if you dig into -- >> the bigger question is the effects on growth. they say there would be increased labor productivity, perhaps increased hiring, but we don't know what the effects would be on the deficit and then you have higher interest rates potentially. so there is this offset in there. >> why under the trump plan do incomes at all different quinntiles of the income go up as much as they do? is it because they're the rate, the marginal rates are lower? >> goes down for everybody. three brackets, there is -- >> what he's doing with exemptions and deductions. >> and a variety of very

complicated tax things that are going on. i should point out the estimate is that clinton's tax plan would dramatically increase complexity of the tax system. trump's would make it much less complex on most levels. but, yeah, trump would lower taxes across the board for everybody. >> rates. >> rates across the board for everybody. clinton would lower them for most, but not the top -- >> i want to jump in with the market alert. the dow is down 200 points. we're just off the session lows now. but we did notice this slight leg lower in the past 15 minutes or so. s&p is down by 1.25%. we're seeing the weakness, financials, just dropped by .2%. technology is weak. semis are particularly weak and health care kin continues their slide today. biotech the culprit within health care that is hurting that sector. >> all right. steve, stick around. we're now just 16 trading days away from the big event. no, not the election.

it is the fed decision. it is 22 real days away. 16 trading days away. we're talking about the next fed decision and not to take anything away from the drama, but has the market already done the fed's work and shifted as if a rate hike has happened? consider this. bond yields higher across the board. the dollar stronger. gold tanking. and financial stocks largely outperforming. something that we said would happen when the fed raises rates. let's bring in joe lavorna, joe, you know, again, not to take anything away from our coverage, a big day, but is the market saying a rate hike is coming and we are moving regardless? >> i calculated the probability of a november 2nd hike at 10%. however, if you go out to the december meetings, which is when i believe the fed will move, it has been my view since the beginning of the year, the probability is closer to 70. yes, the market has priced in one hike or moat of ost of one yes. i agree with that. >> i wonder, if you're the

market and you're seeing a 60 or 70% chance of a rate hike, you know, they're not going to wait, are they, until the fed does it. they're going to move ahead of it. >> they are. and that's why the front end, the two-year note has moved up so much since the beginning of the year. but, brian, to me, what is happening in equity markets and more broadly speaking financial markets is a real concern that growth is unlikely to meaningfully recover. i'll give you the for instance. the atlanta fed last month, i should say in august, thought gdp for the third quarter would be 38. my view 13. they have come down to 21. what is happening in markets is there is a reflection there is not much confidence left in the central banks. that's an indictment of the fed, but also central banks globally. >> you pair that with what the stock market is telling us in terms of the data points we have

gotten recently. we had the honeywell warning, we had alcoa coming out saying that growth in china hasn't really materialized yet. we have got a dollar that is actually strengthened significantly in the past month, 2.4%. you enter earnings -- >> there is no doubt it is baked in. be a little careful because you don't know exactly why people are positioned once the news event happened. you can have an outsider reaction. i think that's the fed's goal, to go with maximum flexibility and hike without a big market reaction. i think it is worth talking about, a piece that is out there from goldman sachs, this connection between the election and the rate hike. and the idea being that the more it seems like hillary clinton will get elected, the more certain the market gets about a rate hike and that's because there is some fear out there that a trump victory has some sort of economic shock value to it that could upset markets and could cause the fed less likely to increase rates, but the more increased probability of a clinton victory gives the fed

more confidence and the market more confidence that the fed will hike in december. >> trump could be an event for which they want to sort of -- >> we heard anecdotal just because not to say anything negative, but his plans, as we have been through by the way, went through the tax plan, and it is not unrelated to this discussion, that is a major, major change to the tax system. in addition, the potential to the trading system. and all that stuff that creates economic uncertainty and so therefore the fed could potentially hold off until the fiscal plans of a new trump administration were more clear. >> all i know is it will be a hell of a seven days when the fed decision -- >> most certainly. >> probably, brian, going to effectively precommit to a december hike, just so they did in october of 15. >> i'm precommitting to taking some vacation time from november 3rd to november 9th. >> no, you're not, brian. i believe all vacations have been canceled here at cnbc. >> no vacation. >> until -- >> unless you're not seen as essential personnel, which i think you are. >> i'm not. i'm just tall and loud.

>> you're essential to me. >> nicest thing that you -- what a day for me. let's get to the bond market. rick santelli tracking all the action. a lot of supply on the market, rick. >> absolutely. your previous discussion, i just keep thinking the affordable care act. all the soothe sayers and thoughts on how it would impact the budget and deficits, how did that turn out? the static models are just that, static. it comes to rates, they're not static. look at intraday of 10s, we touch 178, break out material. but we're down 200 points in the dow. that's the governor of the equation. stocks definitely know what happens when rates firm up. look at the intraday of 10s. open it up to 610. see the two tops? giving them a run for the money now. 175 or higher is the breakout. let's look at boons. boons are big. 09 the next level. they have broken out. guilds broken out over 90. the dollar index now up .75 of a cent. from july 20th to the first two

days of march. back to you. >> thank you, rick santelli. meat, metal and a big miss. that's the good, the bad and the ugly and that's on deck. ♪ ♪ ♪

♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. time for the good, the bad and the ugly. to the good, tyson foods is

going vegan. kind of. it is taking a 5% stake in beyond meat. that's a startup focusing on vegan foods. the bad, alcoa shares, they're down, the company reported lower than expected earnings growth. and an ugly day for rent a center, a dreadful first quarter. sales down 12%. the dow could be one of the bads or the uglies, down nearly 190 points. >> percentage point at this point, brian. still ahead, yum brands trimming the fat, spin-off near? we'll speak with yum china ceo when "power lunch" returns.

our entrepreneurs of the week come from some very remote places. they have traveled to sell their handmade home products to the american market and are killing it. what do they know about our marketplace that even many of us who live here don't? find out their secrets when you watch "your business" on msnbc on sunday morning.

hi, everybody. i'm sue herera. here is your cnbc news update for this hour. a federal appeals court ruling that the structure of the consumer financial protection bureau is unconstitutional because it gives too much power to a single agency director. the court said it violates the constitution's separation of powers because it limits the president's ability to remove that agency's director. a major power outage in southern california is causing a flaring event at the old exxon refinery in torrence. when power is cut, the refinery

shuts down and flaring occurs to burn off any product to relieve pressure. an iowa dough company is recalling the cookie dough it sold to blue bell creameries and other companies because it may be contaminated with listeria bacteria. in response, blue bell is recalling all flooproducts madeh cookie dough supplied by aspen hills. and british rock singer rod stewart was knighted by prince william at buckingham palace. he was joined by his wife and two sons for the ceremony. the 71-year-old rock star will now be able to call himself sir roderick david stewart. congratulations to him. that's the cnbc news update this hour. melissa, back to you. >> thank you, sue. let's check the markets and where we are. the s&p right now, this note just coming in from art cashin saying watch the s&p carefully as we did break a key 2140 level. now at 2138, down by 1.2%. helping to fuel this decline here, the rise in the dlachl

indi dollar index, just off the session highs, higher by .7%. the pound versus the u.s. dollar, the pound reaching session lows here, down by 1.9% against the u.s. dollar. let's head over to dom chu for a market flash. >> let's carry on the dollar conversation because the emerging markets etf, eem, is down more than 2% on very heavy volume. the etf is tracking for its worst day in almost a month due to among other things the strong dollar weighing on emerging market currencies. keep in mind, etf is up more than 15% so far this year. s&p is up by 5%. so it has been a relative outperformer, tyler. still, that dollar trade very much factoring in and, tyler, the worst performing stock in the etf, samsung. go figure. back over to you. >> yeah, no figure there. thanks, dom, very much. yum brands annual investor conference taking place today in new york city. and the focus for many at the event is how yum brands and yum

china will operate as separate entities after october 31st when the two officially split. joining us from the yum investor conference is our own sue lee with yum china ceo parent micky pant. susan? >> a new era for a company that had a long history in the world, the second largest economy, china. joining us now, micky pant joining us. good to see you. welcome to new york. so let's talk about china. you are separating and listing as your own entity at a time when same source sales came off a negative quarter. how do you convince investors to buy in? >> it was one quarter. at the last five quarters we had four positive quarters starting from the middle of last year. if you take the general sweep of things over the last 25 years, yum china has been one of the most successful companies in china. i think the last quarter was a

blip. >> i'm wondering with these protests and boycotts from the ruling, how can you be so sure that it is just a one quarter event? >> we looked at -- we researched it when the protest started. and there was no impact on our brand at all. this was just something unrelated to kfc or pizza hut because -- >> also in your conference call, you said that the first few weeks since september, the 4th quarter, sales are down. >> the event happened in the middle of july. we concluded a very successful golden week as you know in october, the big holiday, second biggest, chinese new year. we had a strong promotion. so i fully expect that that was a temporary event? >> you're convinced sa same store sales is your top priority now? >> it is. the restaurant business, no better indicator than same store sales. once you get same store sales, everything else follows. we're building units in china all the time. that will continue.

>> you're targeting 500 stores each and every year. >> this year, at least 500, probably more than that in the future because you probably know we have 7,000 restaurants in china at the moment. by the end of this year, we announced this morning we'll have 7,500 restaurants, three times the next competitor. >> and targeting 20,000. >> i think so. we have got almost more than 15,000 restaurants in the united states. that's yum brands. and so there is no reason why china, which is as you said, the second biggest economy, will become the world's biggest economy in the years to come, shouldn't have more than that. we haven't launched taco bell yet. >> taco bell coming to china at the end of this year. possibly beginning of next year. >> yeah. i think end of this year, beginning of next year. chinese new year is the big season, february next year. that's when it will be fully open and ready for business. >> some people, they're not sure that the chinese will fall for taco bell or go to taco bell. >> china has -- >> different tastes. >> millennials in china are like anywhere else in the world. there is no just -- absolutely

no more dynamic economy than china right now. >> right. >> there is no group of people that are more digitally savvy. i think it is time to offer them the opportunity to live mas. >> china is going through an economic slowdown. you said casual dining is sensitive to macro economic events. with the slowdown taking place, how can you be so sure people want to spend to eat out? >> people spend to eat out all over the world. even now, pizza hut has been improving steadily. i think we opened 280 pizza huts the last year. 280 in one year. so we crossed the 1,500 mark. and the brand is well loved and respected. pizza in china has products you don't get here. lobster and pasta and escargot. you can buy steak, fish, the whole range. >> and one more quick question for you. pricing. you're letting the market dictate this by the when issue, trading structure. are you comfortable with that? >> i think so. it is a big stock. >> do you think you'll get a

fair -- >> i'm sure we will. >> company splits midnight october 31, november 1 trading starts on yum c. please by yum c. yum china. but the when issue is ten trading days prior, the 17th of october. should allow price discovery. it is a large stock, it will be one of the biggest splits on the nyse. should be able to find a price pretty well. >> micky, thank you for sharing your time today. yum china is the ceo, back to you. >> thank you, susan lee, our thanks to micky pant as well. shares of this company plunging more than 25% today. our disaster du jour is straight ahead. ony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat?

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you can see the heat map there. hotter than the phone in tyler's pocket. the dow is down 200 --

>> that's hot. >> that's hot. >> hawt. the dow is down. but your specific disaster du jour name is alumina. the company trimming third quarter projections, the stock is down 25.5%. let's bring in meg tirrell. what happened? >> so it is the biggest maker of genome sequencing equipment. they warned about their third quarter. that's where analysts were looking around 628 million for the quarter. they attribute this to a higher than expected year over year decline in sales of sequencing machines. people are worried this means people are doing less genome sequencing, less research. what analysts are saying today is that maybe there is a problem that they have introduced some new products recently, a lot of folks bought these new machines that have very high powered and fast sequencing speeds. and essentially companies just

don't need to buy as many right now. you can see here these are some of their sequencing machines, these are very expensive machines. they can cost millions of dollars and these are academic labs often, often companies buying these. and really a miss by $25 million, $20 million. that could be a couple of machines here. folks trying to digest this. this isn't the first time that illumina missed guidance to this extent. this happened back in april. you can see other sequencing companies, mo fisher and pacific bioscienc biosciences. >> no specific reason as to why there is a lowdown? >> folks trying to parse that out. the company held a short conference call last night. i missed it just doing the news on air. on a couple of minutes long. >> would i be correct in assuming that because this is not the biggest market in the world, we're talking about some really big expensive machines, so if you lose one order, it is a big deal. >> how much do they cost?

>> $10 million. for their -- i was talking with -- >> how big are they? >> desktop machines, slightly bigger. we have footage showing of them than -- they have different offerings, but their high seek x 10, new machine, one of the newest and most expensive. >> $10 million for a desktop type machine? >> sequencing -- >> the genome. that seems cheap. >> does it overheat and catch fire? >> why does this machine -- >> i'm not sure the $10 million one is a desktop machine. i'll have to check on the specs for you. >> tyler is not in the market. >> he's waiting for an app for that. >> let's turn to the other big story. theranos, a lawsuit now. >> this is one of their investors who invested $96 million partner fund management, in a letter that we obtained essentially claiming that theranos engaged in securities fraud by lying about whether their technology worked and how close they were to getting

approvals there. this is a sizable chunk of how much money theranos raised, you know, less than a billion dollars, giving them $9 billion valuation. and investing back in february of 2014, theranos coming back and saying that this doesn't make any sense, they're saying that the hedge fund has filed a civil suit against the company, they say the assertions are baseless, the plaintiff is engaging in revisionist history. >> interesting to see if others come out of the wood work at this point to theranos adding to their woes. >> this isn't the only legal woe. the department of justice, the s.e.c., so a lot of things going on for them. >> stick around. our next guest has a track record of ringing the alarm on pharma companies before their problems blow up. he slapped a sell rating on valia valiant. he also flagged mylan's epipen price hike in june. let's bring in david maris. always good to see you. do you have a list in your office of the next targets that congress could take on? >> no, i'm afraid there is a

list in company offices with my face on it, but, no. there are two or three things. the targets that have been targeted i think are still ripe for people to look into. things probably aren't over there. remember the fine that was recently paid by one of the companies, the epipen company that got in a little bit of trouble. that only dealt with one piece of it. didn't really deal with what is going on with consumer pricing. so that's another whole part of the argument. the other piece just emerging now and started with mylan bringing it up is what is going on with the chain, what is the rest of the supply chain doing? and really turning the attention on pbms. >> so pbms could feel the pressure. in terms of mylan, quick to point out, interesting with the street reaction, very diverse, you had on one side, raymond james upgrading the stock seeing a major overhang now gone. but then people like you saying, this is great, this eliminates an overhang, but we still don't know what is going to happen in 2017. we have no clarity whatsoever on

the impact on mylan's results from the generic pricing. >> the company did something i haven't seen in a long time, if ever. they put out a press release that said, by the way, we have to pay this, and we're bringing down our earnings numbers. but if you look at the s.e.c. filing, filed on the same day, it said, by the way, we have an s.e.c. investigation going on. i've never seen that. usually you put them both together, you tell investors what is going on. >> so almost like they're trying to bury that part of it. >> i'm not at company, so i don't know why they did that. but, again, i don't recall another time where especially under so much scrutiny that you come out and say, this is what's going on. >> what about valeant? >> i don't think that's over yet. i think it is a target rich environment. it is like they do have a new captain, but the boat is still leaky. look at prescription trends, they still look bad, looks like there has been no change. so i wouldn't be there, i think you're going to be able to buy it under $20. >> how much would investing thesis should be -- maybe i can't analyze all the fundamentals, your job, but you look at it and go, man, these

companies are in the target of regulators. and possibly the president of the united states in hillary clinton, therefore i just can't recommend that. regardless of how the fundamental change looks, is there that political overhang that would come into your analysis? >> a lot of questions lately of, hey, listen, this political overhang, when will it turn and won't there be a rally in the group afterward? that's the case. that will happen at a certain time. especially since this is a midcap group, more or less. and so a little bit of money flowing into it can really move the stocks. but i think then you have to separate the ones, which ones do you want to buy because they have been down with the group and no good reason for them to be down and which ones do you want to just, well, maybe, wait to see how to problems get resolved? >> that's a question i have is that is the specialty pharma model just broken? this idea that a lot of companies raise prices on their drugs, they probably won't be able to do that anymore, though as you pointed out, valeant has taken 9.9% price increases on a couple of the products, even since all this happened, should

anybody invest in any specialty companies. >> if your goal is to invest in a growth company, and the company is all they're doing, the value they're adding is taking money from their balance sheet and buying someone else's problems, then absolutely not. i do think the pricing model of raising and buying something and raising the price a lot is over. that's really, you know, too much scrutiny by pbms, by managed care firms and scrutiny by the consumer and by government. >> are there companies in your world that you would say, i have no such worries about? >> no such worries, probably none that have no such worries. >> none. >> i have to really think about that. four weeks ago, people were calling wells fargo the unquestioned best of breed in the banking world. eight weeks ago. whatever it was. so you don't know -- >> i work for a lot of banks. the best bank i ever worked for. >> right, okay. it shows you how quickly things you don't know about can come up and bite you.

>> that's why i go by the idea, you need a margin of safety, some sort of caution. now, for example, mylan, we have a neutral or market perform on mylan. i think the stock is worth a little bit more than where it is now. but in order to upgrade it, you need something more than that, more than a 10% move. you have to be convinced that the problems are behind it, but also that the numbers go higher, not lower. >> so if -- i don't know what analogy to pick. in terms of things getting worse for a valeant or mylan, how much worse can they get? you alluded to sub 20 for valeant. is that your base case? what do you think could happen here in terms of the investigations? >> on valeant, they have a lot of things. for example, one is a shareholder insider trading lawsuit. so what happens if a company loses an insider trading lawsuit? especially if that insider trading lawsuit is against not only the company, but also its largest investor. and if it is larger investor loses an insider trading lawsuit, what happens to all the funds that are invested in that, in that fund.

so there can be a domino effect too. could valeant face a lot of significant problems? for example, some mutual funds are suing them. what is the damages when you think you've been lied to, and the stock goes down by tens of billions of dollars. >> i don't know if you're prepared to talk about this. we talked about the opioid epidemic in america. every week reading stories of parents dying, their kids are trying to wake them up. it is a national crisis. mallonkroft is a major maker of oxy coden. what is your view on that as a stock. a major headline risk here? a lot of short sellers, by the way, left who came out and said mal be malloncroft -- >> i think it is a serious, very serious, not overblown -- >> a national crisis of nearly unprecedented proportion. >> they sell opioids. that part of their business is not the focus of investors. it was down 16%, the park that

it is in this last quarter. they're not doing well. they did raise price there a lot a couple of years ago but haven't raised price at all. are they exposed? yes, a lot of companies are. you have a cash flow yield, it is a cheap company with a lot of controversy, that's one i think will do really well right after the wind blows. there is another company called amphistar, if you overdose on opioid, the ems comes in and gives you an injection of naloxone and brings you back to life. they rised the price on it. they didn't go from -- >> a lot. aren't they accused of jacking the price up? >> that's where everybody is completely wrong on it. >> you told me this when i reported on it. >> you go from $12 to $24, and you to build a whole new fact y factory, a new -- >> there is a reason. >> there is a reason behind it. no one is going broke on naloxone because of $12 to $24. very different than someone going from $300 for an epipen

to -- >> emph is the ticker, right? >> david, great to see you. thanks, meg tirrell. coming up, the four stocks that we think melissa and i think you need to know about today, including a big call on a billionaire. yeah. jpmorgan says investing with this guy is probably going to make you a lot of money. we'll tell you who it is, the company he runs coming up.

what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water.

[ clock titime. ]. you only have so much. that's why we wanna make sure you won't have to wait on hold. and you won't have to guess when we'll turn up. because after all...

we should fit into your life. [ laughing ] not the other way around. [ clock ticking ] welcome back to "power lunch." the dow is hitting session lows, down by 1.2%. not a dow component, but some of the names leading to the downside include the building supply companies, check out fastenal, shares down by more than 5%. the company is a big distributor of nuts, bolts, hand tools, other construction supplies. pointing to a slow down in the construction side of things for that earnings miss. hd supply holdings also lower by around 2% as well. session lows right now for stocks and fastenal not helping matters much. >> thank you, dom chu. time for street talk, our daily dive into the key wall street calls of the day that we think

you should know about. first stock, twitter. ever core upgrading to a hold. that puts the stock in line with that $17 target. also, the analyst suspects third quarter guidance could be conservative, given the big potential events for twitter, debates, olympics, nfl streaming not factored in. >> and a lot of people don't want to hear that. second stock also on the web space, iac interactive, jpmorgan starting with an overweight, 25% upside, folks. this is driven by home adviser, the leading online services market. match.com, attractive valuation, and the track record of creating shareholder value. they created seven public companies and get this, the chairman barry diller when he took control, delivered more than two times the s&p return. diller makes you rich.

>> by the way, julia boorstin interviewed -- a great interview, more on that later on "power lunch." third stock, nike, initiated at susquehanna with a positive rating on $63 price target. the analyst says now is the time to buy the stock given the pullback this year. the slowdown in futures orders is near term noise and while competition with adidas and under armour is real, it has been in nike's dna to respond ski skillfully and forcefully. >> adidas, a big competer to puma. small cap call of the day, core site realty. they say they want to be buying the stock now because the stock is down 16% in three months. the analyst met with industry contacts and said the data center business remains strong. devaluation is good. so core site, cor is your small cap call of the day. price target 80 bucks. pretty fat upside to the current price. >> and nice pop on the stock

given the downcline -- decline. >> love it. >> our career is in a downcline. the latest venture coming to a neighborhood where you. where won't amazon go? that discussion coming up. so what else is new? how's your mother? umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

. a check on the markets. we're in sell-off mode. the dow jones industrial average is down by 1.25%. 227 points is the loss. the s&p 500 just off of session lows. 2 2132. art cashin e-mailing us a half an hour ago saying that break below 2140 was key and here we are holding well below that level as we progress into the final couple of hours of trading here on the nasdaq, down by 1.7%. health care in particular, biotech, is really weighing down that index along with semiconduct semiconductors. apple manages to stay positive, though. >> the breadth of the market is terrible. there are 14 s&p 500 stocks. >> counting earlier. incredible. >> 14. >> haven't seen that kind of

breadth in a long, long time. >> breaking news here, new poll out, taken after sunday night's presidential debate. john harwood joins us with those results. >> what we have got is the full sample of the nbc wall street journal poll that included both the weekend, which the weekend numbers we reported yesterday, and the post debate numbers which we gathered from interviews last knight. what we see is yesterday we reported that hillary clinton had an 11 point lead in the four-way race against donald trump, 14-point lead in the two-way race. donald trump recovered in interviews last night among republicans. that's a consequence of his debate performance. he rallied his republican base and so you had republican support for trump in the 60s, which is very low for a normal situation, moved up to the 80s, and now what we see in the overall poll is donald trump down by nine points, 46-37, in

the four-way race with hillary clinton, down by ten points in the two-way race. the question will be, does donald trump maintain and build further on that republican support which recovered at the debate in the wake of what is going on with paul ryan and twitter war and the turmoil within the party, to be watchin the next several days. >> donald trump talking about that twitter war between mr. trump and republican speaker paul ryan. mr. trump saying he was happy to be free from what he called republican party shackles. with a widening split, will it help or hurt the party in other races? eamon javers reports from washington. >> that's right. donald trump today tweeting insults or criticism at paul ryan and john mccain and what he

calls disloyal ars around the country. trump traveling the country denoud denouncing those republicans who stepped away from him, harming them in their own senate and house elections. that's the real political agony here for mitch mcconnell and paul ryan inside washington as they try to maintain those house and senate majorities. take a look at the balance of power in the senate, these are the senatorial battleground states, remember, democrats need to pick up four or five depending on who wins the presidency in order to take the senate from republicans. cook report has seven battleground states that are tossups as of right now. republicans lead in most of those as of right now. but in each of those cases, republican candidates are having a very difficult time figuring out what they should do about this donald trump situation and this unfolding political warfare in the republican party. a couple of different strategies, already today we saw marco rubio come out, and say

that ultimately he's going to stand by donald trump, he says i disagree with him on many things, but i disagree with his opponent that is hillary clinton on virtually everything. so marco rubio standing by trump in florida. in pennsylvania, senator pat toomey tried to take a very nuanced approach to this, denounced the trump comments, said i am not endorsing donald trump, he calls himself unpersuaded by trump, but also declined to say if he would still vote for donald trump, so a mixed message there from toomey. and kelly ayotte in new hampshire also an endangered republican senator, she said that she won't support trump, she says she'll be writing in governor pence for president on election day. so tyler, there you can see the variety of responses here from republican elected leaders and candidates out there on the stump who are trying to figure out how this helps or hurts them, mostly hurts them, particularly because the republican party base, the hard core trump voters are people,

all of those republican candidates will need to win election in november. >> at the risk of being too sort of hypothetical, let's spin the tape forward and say mr. trump does prevail in the election. what does this do to his ability to get things done in what might well be a republican controlled congress? >> well, it will be difficult. i think it would have been difficult even absent this recent tape. but clearly you've got now near open warfare between donald trump and the republican speaker of the house. if you had a president trump, and a speaker paul ryan, just the bad blood between them personally would be challenging to deal with. paul ryan has been out there on the campaign trail, though, saying that he supports the agenda items that trump supports, so presumably they would find a way to kind of swallow hard and get over it, and move forward on an agenda of some kind. but it would be a political minefield to say the least.

>> thank you very much. here is what else is in your headlines at this hour. the structure of the consumer financial protection bureau is unconstitutional because it gives too much power to the director of the agency because it limits the president's power to remove the director. elsewhere, three train tankers carrying oil from new jersey derailed, thankfully there was no spill. and gunmen attacking a shrine in kabul, afghanistan, killing and wounding others. we'll bring you more details as we get them in. let's check the markets. stocks having one of the worst days in the past month or so. the dow industrials down 240 points. s&p off 31. brian pointed out, basically under 20 s&p 500 stocks in the green today. health care and materials, worst performing sectors. illumina, alcoa, both very much to the downside right now. different businesses.

>> results raising concerns about how the rest of earnings season will pan out. bob pisani is at the new york stock exchange. not just ail could lcoa. >> this is supposed to be the quarter when we turn around. look at the situation right now. it was supposed to be the end of the earnings recession, five consecutive quarters of negative growth. eps for the third quarter down 0.7%. that will probably go positive over the next couple of weeks. fourth quarter positive and revenues, most importantly, revenues up 2.4% and 5.3% in q-4. that's the big thing that will turn things around. what do we get? as you heard there from melissa, aerospace concerns coming from alcoa and honeywell. alcoa lowered their fath eed th quarter revenue guidance. honeywell talked about aerospace being slower here. you see both of them, alcoa is down, honeywell is down on friday, down again today. so is this a big problem across

the board. right now, the street is saying they are quite happy with the situation, with the other sector. so energy, we're seeing oil over $50 a barrel. that's helping earnings ultimately. tech, super cycle and semis, that's helping tech stocks. health care very good earnings with pharmaceutical and services and financials. higher interest rates, expected to help banks in the fourth quarter. the hope is this will prevail over the problems with industrials. and look at these estimates for the fourth quarter. i'm talking the fourth quarter, not the third quarter, that's how the street is trading right now. we're expecting much higher earnings numbers from financials, health care, consumer discretionary, tech, believe it or not, even energy is finally expected to turn positive on the higher oil numbers, and the fact that the comparisons are a little easier compared to a year ago. the hope here, guys, is that this is just a hiccup and particular end product in industrials with aerospace and a couple of other end product markets like agriculture that is slow. let's see if that spreads or that concern spreads to other

sectors. back to you. >> bob, thank you very much. amazon wants it all and wants it now. the latest move, convenience stores. look out 7/eleven. will that work? mcdonald's is doing anything but sending in the clowns. we'll explain when "power lunch" returns. ay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels so customers can effortlessly invest, borrow, lend, transact-wherever-whenever they choose. and we're digitizing the way banks run,

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keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california. welcome back. all of the sectors are currently in the red. telecom, yield heavy sector,

down the least, about .1%. health care materials and technology are your worst performers. certainly there is a lot going on. why don't we do this? let's take a step back. let's get to our quiet place. and focus on making the most of your investing dollars right now. joining us now, dubrovko, i say that to avoid the day to day swings of the market. health care, the worst performing sector today. but you recently upgraded the sector. why are you optimistic on health care long-term? >> so one reason, main reason is basically growth. we see superior growth in health care. on one hand. on other hand, growth with attractive valuations. so in a marketplace that i think has been quite dislocated so far this year, we generally have seen fairly sharp fall in bond yields that have significantly benefited a lot of these bond proxy type sectors. >> is it that simple. is it that simple where you can

literally think the fed is going to raise rates or ten-year moves and so we dump the reits, the telecoms and go to more riskier -- >> there is a lot of volatility on an intramonth, intraquarter basis, but generally, yes, i would say yields have been at the forefront of equities when you think about sector positioning and think about market positioning. not just here today, but more broadly last two or three years. >> at what point does the dollar's rise concern you? it is up 2.5% in just one month. it being the dollar index. that's a huge move. >> yes, it has. the dollar reached its highs, i want to say, earlier this year in january. mid-january. since that, it has come down a bit. last few months -- i would typically look at the dollar month so on a 12 month, 18 month. >> because the comparisons are still okay? >> the last 12 to 18 months, it takes time for a lot of the effects to play in. >> a lot of individual investors have loaded up on bonds.

what should they do? >> bond funds. that's -- bond valuation is very, very high for various reasons. we have seen contagion into the equity space. and you have seen a lot of the bond proxies. i think at this point diversification, if you can get it, is probably, you know -- >> what does that look like, diversification? >> it was a game between bonds and equities. today, i think one of the hidden risks we face is if yields creep higher and we start to creep higher for nongrowth reasons, central bank related, you see bonds getting deflated and equities getting pressurized, which means cash -- that's why i say diversification, if you can get it. >> i'm glad i asked. >> we have seen a rotation out of the bond proxies, particularly in utilities. i wonder how you think about the impact of these low value etfs that piled into these particular types of stocks and bonds as

well. how much that rise of that particular etf, that kind of etf will exacerbate the downside. >> so based on our research, it is primarily retail money that has entered that particular product. there is a lot of other products out there that are heavily influenced by institutions. i think it is institutional money driving it, that sticky n. but could you see a trade? >> i wonder how much -- you may not be the right guest for this, so i apologize. i wonder how much etfs have screwed up traditional stock analysis. you have a company and it stinks. valuations are bad for good reason. but it is an etf that is hot. so the stock goes up. have you done any work on that? seems like, you know, like a lot of bad boats can get lifted with a good tide. >> generally, look, etfs, proliferation of etfs, what that resulted in is -- that's

aspersion -- stocks have a higher degree of co-movement between them. stock selection process or being a stock picker has become a little more of a challenge. >> for that reason, isn't investing in health care dangerous at this point? we have seen mylan come out with a bad headline and the correlation is very high, drags the whole thing down, drags health care down. >> certain sectors are more macro driven. other areas are more idiosyncratic driven. there is a lot of differentiation of the industry level. just like there is within consumer discretion. >> thank you very much. really interesting discussion. >> thank you. up next, mcdonald's, they're in the clowning around when it comes to the creepy clowns terrorizing america. we'll explain why ronald mcdonald is a good guy next.

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ronald mcdonald keeping a lower profile these days. not being specific about how low, but it said it is being thoughtful in respect to participation in community events in part due to the current climate surrounding clown sightings. i think mcdonald's doesn't want ronald mcdonald to be beat up. >> is he any creepier than the king? the burger king king is creepy. >> no thing more terrifying than the jack in the box -- if they got together, i just had a spectacular idea that i'm going to keep to myself. i'll see you on halloween, tyler. >> okay. >> all right. is amazon -- >> you're invited. >> taking over the world, jeff bezos may not be on par with dr. evil, but when you consider any industry in retail, amazon has got its hands in it.

now reporting that the e-commerce giant is pushing deeper into the grocery business with plans to introduce convenience stores and curb side locations. >> did you let bezos off the hook on comparing him to dr. evil? >> dr. evil. why, you think he's dr. evil? >> i think he's taken over the world if that makes him -- >> there you go. there's the wall graphic. >> look at the things they're into. this latest push is a curious one. we heard in the past quarter how everybody and their brother, talking the regular grocery chains, whole foods of the world, targets of the world, they're all having problems with grocery. >> called walmart. walmart is doing a much better job in grocery. just down at walmart last week and i saw their new drive through pickup in their store. it really works well. it is dramatically lifted the business in that store. and they're rolling it out, so

amazon is at least behind walmart in that case. but, yes, we're going to see grocery ordered online, going to see it picked up at the curb, going to see it picked up in the store and we're still going to see people doing business in the store, of course, like we always have. but grocery is one ofp underpenetrated areas. could it be 20? it could be 20. and we're going to see a big push into that. and amazon is going to have to do some catching up but fully intend to. >> there are certain parts that are totally xhod tiesed, and other parts where i like to go in and see what i'm buying. >> but when i was -- >> i want a steak i want. don't want them to pick a steak for me. i don't want them to puck my t lettuce. >> people are buying on fresh direct. people are willing to say, okay, if they say five stars on the produce, it is five stars. they're willing to buy meat on

it. we're crossing that boundary already. we'll have that kind of resistance. but a whole lot of people are going to sign up and say i'm willing to -- >> you've run retailers. is amazon getting a little cocky here? how similar is running an online retailer versus running a traditional brick and mortar retailer? do you think amazon has the skill set to do the latter? >> no, but they have plenty of cattle to adopt the skill set. and do i think walmart has -- >> how different are they? >> very different. >> that's my point. >> they're very different. that doesn't mean they can't do it. they have been very successful penetrating anything they want to do. everybody is going to have to be a seamless retailer. everybody has to be online. >> the point i'm trying to make is, my wife worked in this industry for years, a lot of people in the retail industry get mad at amazon. they're too cocky. they think they can come and do what we have done for 50 or 100 years successfully it a totally different skill set, just because you're a good punter,

doesn't mean you're going to be able to hit a home run. >> video, for instance, how can you do that? >> they're a bookseller. >> they're an online distributor. online distributor. now they got to manage retail, physical locations, depreciation. >> they're just logistics companies and both really good, logistics companies. so, yes, do i think they can do it and every time somebody says to me some category is not amazonable, i go, yeah, right. every time i heard that, that category moved online and more moves online every year than the year before. >> take a bezos with cheese and a milk shake. in the fast food -- >> nair nthey're not just going groceries. other locations. i think they're going to have 400 locations that aren't grocery that are sort of coffee shops with bookstores with cool things you can pick up, help you

can get. i think they're going both ways. so, yes, article today in the wall street journal talked about grocery, not just grocery. >> they have a superstore format? >> no, i think it is going to be more of a showroom format. but i think that they're looking at as many as 400 of those. so, yes, they're trying to take over -- >> smaller footprint stores. >> yes, smaller footprint than big stores, but with the ability to order in the store, to bring back to the store, to touch and feel some of the stuff in the store, still -- >> how genius is urban out fitters decision to buy -- when they did that, i was, like, what are they doing? i went into an urban outfitters, mobbed. >> the pizza area? >> yeah, the whole store, just -- you were talking about food -- >> the reason is not the food. it is denim. we have been talking about denim. urban out fitters. >> they have denim. >> and it is bohemian.

>> tyler and brian love boho tops. >> i think everybody needs -- everybody needs a starbucks in their story, everybody needs a pizza, everybody needs things that will -- >> they do need to do that. >> jan, thank you. good to see you. >> next time the boho top. the dow near fresh session lows. and let's get to dom chu for serious market flash. >> the dow just down 255 points a moment ago here. we're talking about nearly 1.4% on pace for its worst daily performance. that was the day it fell, 1.4%. the biggest drag on the dow so far today, united health, goldman, good for about 20 dow points to the downside. other lagers like ibm, johnson & johnson weighing as well. apple, by the way, up about .2% now and drifting lower all day. we'll see if apple can keep positive today. back over to you. >> thank you very much, dom.

big billionaire blasting donald. who is it was and what he said. and oil prices pulling back after hitting a one-year high yesterday. we'll go live to the nymex for the closing trades next on "power lunch." th new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured.

a u.s. army air crew distributing food and supplies to communities in haiti devastated by hurricane matthew. the state department and u.s. aid agencies are coordinating that effort. matthew killed more than 500 people in haiti. syrian activists releasing drone footage reportedly showing widespread destruction of an eastern neighborhood in aleppo. blocks of urban landscape reduced to skeletal structures and bombed out buildings. a 93-year-old bridge in arkansas that was deemed structurely deficient apparently isn't. demolition crews triggered explosives designed to bring down the broadway bridge in little rock, but structure's arch and bridge deck remained upright. a spokesman says now they have to find mechanical means to complete the job. and a blue diamond ring set to go to auction with an

estimated price of between 15 and $25 million. so sotheby's says the ring holds a blue stone named the sky blue diamond. goes on sale on november 16th. beautiful. that's the cnbc news update this hour. back to you guys. >> love that bridge that stood up. it can take a licking and keep on ticking. >> the taxpayers were kind of perturbed because they're going to have to pay to bring it down. >> twice. >> let's watch again. >> there we go. oh, man. and a crowd came to see it go down and it didn't. >> it didn't go down. >> one more time. >> does that mean it gets to live now? they don't tear it down? >> no, they're going to get a crane -- float a crane underneath it and pull it down. >> oh. >> i think. i don't know. >> who is going to lift the crane from the bottom of the river? >> exactly. >> when it sinks from the weight of the bridge. >> keeps going and going and going. >> sue, thank you. check the markets now, 11

sectors are down. the dow off 250. oil also down a percent as the final trades cross for the day. let's check in with jackie deangelis. >> good afternoon. crude oil price is under pressure after hitting the on one-year high. we came off the session loews, but closing under $51 a barrel. more comments coming out of the world energy congress in istanbul indicating the appropriate parties are getting on the same page to potentially approve and put together a framework for that production cut that we're expecting to hear about at the opec meeting. but the skeptics remain out there in the field. we heard this so many times, like lucy and the football. goldman sachs out with a note saying there say higher probability of a cut but low odds of overall success. could be a classic case of buy the rumor, sell the fact, but holding over $50 a barrel. and that stronger dollar, the spike we saw today, having an

impact now on crude prices. the inventory data will be delayed until thursday, so no api tonight. we'll hear from them tomorrow and the department of energy on thursday morning. back to you. >> jackie, thank you very much. our next guest has seen this song and dance before and believes that opec is manipulating the markets. let's bring in bob mcnall y. bob, welcome. what do you think oil prices are going to do between now and that meeting on november 30th? >> i think a range around here, like last year, opec has been extraordinarily successful at manipulating sentiment, not supply. despite having increased production by over 800, almost 900,000 barrels a day, since they started talking about a freeze in february, they have been very successful at getting the market to believe they're going to act. so that is strong, the longs are coming in, shorts are scared. i think we're going to range here and then going into the meeting, i think there is going

to be some pressure on opec to perform, to do a little better than just the algiers target that was announced just recently. so for now, i think we range around, but my guess would be that like the last two sort of rebalancing rallies we have seen since 2014, they were premature and this one won't end well and will go down again. >> and so what do you expect to see coming out -- they have manipulated sentiment over the past couple of weeks for sure. when the rubber meets the road, what do you expect they will do. will they cut the output or not? and then what happens to price? >> i think most likely they're going to double down on the algiers target. so they'll issue a 32.5 to 33 million a barrel a day target, through the first six months of next year, with an option to continue. iran, venezuela, libya, given an exemption. saudi arabia will go back down to the level about 10.2 million barrels a day, where it was in february when it first opened to

cap. they'll call this a freeze because they're cherry picking august surge level, but that is smoke and mirrors. what will happen is saturday going back to a normal operating level, about 102, 101 and will stay through the spring and hope that the market starts to show signs of rebalancing on its own. >> do you think that saudi arabia is of a move to -- of a mood to give iran the kind of pass that you describe? >> they show that in algiers. they gave iran an exemption. i don't think they thought iran could get up from 29 to 36, 37 over the next three months. now that iran proved it could, they conceded that to them. they said they would agree to talk about individual country quotas. saudis resisted that. that's a way of shaming saudi arabia into trying to get them to give back the market share they have taken from other opec companies. i was a little surprised they made that concession too. it is all for verbal

intervention, not for supply management. i think the saudis will go down to 102. >> starting to hear about energy independence again in some of the debates. every president, literally, since nixon, had said we are going to be oil and energy independent and we're going to not need opec and not -- all that has happened for the most part is that our imports have gone up. is there any sign we're going to become energy and/or oil independent under the next administration, whoever it may be, and however it may rain? >> no, not if you talk about independence meaning imports. don't tell anybody, but when i worked in the white house and saw a speech with the president saying president bush saying independen independents i would strike it out and karl rove put it back in. there are a few things that get a louder applause line. we import a quarter of our oil, we peeked at two-thirds, if we don't let shale grow, our imports will go back up. bottom line, the american public doesn't care about independence if it comes to imports.

our imports roofed during the 1990s. we didn't care. what we care about is the price of gasoline, not the share of imports. so mrs. clinton, i think was in error when she said we are independent. if she meant we're import free. most of the oil comes from safe places like canada and mexico. but we still get a good deal of our imports from opec countries. >> bob, thank you very much. >> thank you. why right now might be a request time to rent that big fancy luxury apartment you have always coveted. we'll explain why. and look at stocks as we inch closer to the close. apple right now the only dow stock in the green, up by a measly .3%. but everything else is down. merck is down 3%. intel down nearly that much. back with more coverage of the market sell-off when "power lunch" returns.

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if you've been drooling over all those luxury rental apartments going up in your city, take heart, because they may be falling into your price range very soon. diana olick has that story. >> look, if you live in a big city, you noticed your skyline littered with cranes in the last few years. that is certainly the case here

in d.c. construction of new mostly luxury apartments has quad ruppled since 2012. the sheer glut of them is pulling rents back down. the average rent nationally in the third quarter was $1,289 a month. a 3% annual gain, but compare that to over 5% rent growth a year ago. it is all the cooling on the luxury end. rent growth has been this richirich i shrinking each quarter for a year. not only are rents pulling back, but investors have been pulling out of reits in general. why? they were a low yield play because they offer high dividends. the fed hasn't moved in a year, but just the talk of raising rates now freaks investors out. and they dump the sector. rising bond yields don't help either. equity residential, the largest

residential reit dropped since mid-september with others like avalon bay and udr. the reit pullout may be an overreaction, given that apartment demand is strong, especially if you look outside of that luxury sector. but unfortunately developers are not bulli building cheaper apar stock, they can't afford to. there is more of this online. >> diana, thank you. it is time for trading nation. because trader do trade better together. let us dive and trade into this broad market slide. jonathan krinski and boris schlossberg. jonathan, i'll begin with you. we're still up year to date, about 5% on the s&p 500 today. not a good day. does today change the technical trajectory of the stock market at all? >> from our perspective, it doesn't change the big picture. it doesn't feel good today, not many places to hide, we have 90%

down day, 90% of all volume is in declining stocks. that is a distributive pattern. it is one day. let's take a step back and look at the big picture here. s&p 500, testing that up trend line from the february lows through the -- if we break that to the downside, you're probably looking at a test of 2120. that's the september lows as well as that big resistance area we broke out of in july. so prior resistance, we think it probably acts as decent support. couple of other things to think about, seasonally we're approaching the end of the season, a weak pattern. it becomes a tailwind. we are in an election year, which tends to be a little weaker, if you go back to 2012, the last election year we saw the market sell off into mid-november. seasonally we could see more weakness. and then the other thing to realize is that it is a market of stocks. you are to look at different sectors, over the last three months, the s&p is about flat. but some of the names like technology, industrials and

energy and financials have done very well. and the high dividend sectors, the reits, telecom utilities, down double digits. we think the overall market continues to find its footing here. but a sector in stock story at this point. >> let's talk about something you're primarily familiar with, the dollar. how much of the dollar's recent strength, if at all, is responsible for the stock market slide. >> dollar recent strength is having an impact. the real story here, obviously yields having an impact, that's creating a little bit of profit taking in the stocks. i think 2100 beckons on the s&p, maybe 2,000 if you get very serious. the other unknown here is geopolitical stress. what is happening in my market now is the british pound is completely imploding today. again, based upon brexit fears. i think the market now, investors are looking at the landscape, the election, though it looks like it is tilting towards hillary clinton is uncertain. donald trump is the single most volatile uncertain candidate we had in years.

i think investors may be thinking i'll take my ball, go home until this thing is over. and come back. thinking lock in the 5% for the year and walk away until the volatility goes away. that may be happening. so i think the worst may not be over yet. especially if we see trump begin to bounce in the polls. investors are fearful of the agenda he brings to the table. >> where do you see the dollar index trading? some say it will be capped. i'm wondering how much of a rise given that we have seen it move a percent this week alone and it is only tuesday. >> it is not by any means the end of the rally in a dollar index. the market is starting to understand the fed is on a path to hike rates. we have a divergence in monetary policy. that's going to push the dollar even further higher as we go forward, especially against everybody else who seems to be either stationary or trying to -- >> what level by when? >> i think we have probably another maybe 2% or 3% by the

end of the year in a dollar index easily. depends which currencies we're talking about. as far as dollar yen goes, for example, i think it is reasonable for us to see 107, 108 dollar yen before the end of the year. >> boris and jonathan, thank you very much. >> thank you. >> see you in a bit. we'll be taping two other segments after this show. we do it every day. you can see it at trading nation. barry diller is calling donald trump a bad clown and an evil miracle. we'll hear what small business owners think of both presidential candidates coming up on "power lunch." biotech stocks can be quite volatile. so when trading this group, it is important to explore and consider a company's pipeline of drugs as well as their schedule for research and development. those results can often have a dramatic effect on price action.

election day is four weeks from today, and the issues that matter to small business owners may be different than what other voters are thinking about. kate rogers joins us with new data on those business owners. >> with momentum across the country, building for a higher

federal minimum wage and ballot initiatives in four states to bring wages at or above $12 an hour, higher pay is on the minds of main street businesses. in boulder, colorado, manufacturers water bottles and pays workers $12 an hour. she says it has been good for business and wants a federal increase. >> we found that all of a sudden people could get their car fixed when it broke down. they could get to work better. they could get daycare when their kid was sick. we had employees who were a lot more productive. and our turnover pretty much disappeared. >> but others like sherry say it would be damaging. she pays between $14 and $15 an hour but says a federal hike would put more pressure on her 90-person company. >> we are middle america. anything you try to bring to the

midwest we have to scale up. >> both business owners express uncertainty. that is something we see month after month. this month found political uncertainty at 35%. that is somewhat lower than last month. the second most common reason for not expanding right now behind the economy. business owners are definitely concerned about the minimum wage, health care reform, regulations and taxes. those are always top issues and they want more details. >> and now to what someone who runs a much larger business thinks of the election. billionaire barry diller making explosive comments about donald trump. julia boorstin joins us now with that. what an interview. >> barry diller is fascinating. here at the internet association conference diller says he can't wait for the presidential election to be over. he said the fact that trump got

the nomination is a, quote, evil miracle. >> i think he is going to win. this is the thing that just astounds me is the idea that that clown, bad clown could actually be president of the united states. it's so insulting to all of us. so she will win. >> diller also weighed in on the transformation of the television in media industry illustrated by surprising drop in nfl ratings. >> once you break the chain which was originally broken by the three and then four networks, by cable, once which had the ability to put lots of programming but not ultimately huge numbers of programming

through it. now the internet has broken that. once you break that there is no connecting it back together again. >> i asked diller who he thinks should buy twitter. he said it doesn't make sense for anyone to buy it. if someone does that could be its death now. >> it is good advertising business. i don't think it connects to much else. yes, it has been data and you can use the data. all of this noise of buying something not for what it does but for what you think it can connect to i think is mostly hogwash. >> as for the potential merger of cbs and viacom. you can find more from my interview with barry diller. >> so do i assume from what he said that he sees twitter as a kind of orphaned company? >> he said twitter is very good at what it does but it doesn't

necessarily make sense for another company to buy it and try to integrate it. he did see great value in what twitter is right now. the issue, of course, for shareholders is the fact that its growth seems to be limited for its core business. so he did note that it is interesting to see twitter experiment with things like streaming video. when it comes to logged in user experience he is not sure it makes sense for someone else to buy it. >> if you are betting on someone being able to do something different with them you might be playing a losing bet. we are talking comedians and clowns. power is back in two.

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good to be prepared. could you cut the bread? we have a sell off on our hands. you are commenting on how few stocks are in the green. >> 16 in the green. >> out of the s&p 500 heat map. one in the green is apple. and this has been holding up relatively strong throughout the entire session. it has been a confluence of positive events for apple. not only the iphone 7. with the samsung galaxy note 7 being halted in production that is seen as an upside. that has been a top performing

stock over the past month. on the nasdaq 100 it would help a lot except we have bio tech stocks sinking and being a wait on technology in general. my check please is about the naked mole rat. it is probably the most disgusting looking creature on the planet may hold the key to pain management. scientists found it is immune to pain from heat. so in other words eit has a special genetic change to a molecule that basically makes it immune from a lot of types of pain related to heat, hot temperatures. the naked mole rat can go without oxygen for 30 minutes at a time. kind of a gross creature but a real story. pain management is a major issue in america. perhaps maybe the naked mole rat does hold the key to helping manage pain.

>> so many questions. it is a naked mole rat. and then the heat meaning like if you put it on a stove it wouldn't feel pain or high temperatures? >> i wouldn't go that far. the journal said and there is a story if you cut your finger and put hot water on the cut it makes the cut hurt more. the naked mole rat would be like bring it on. >> how would it tell you? >> they are good at nonverbal communication. >> they sign. let's talk about the creepy clowns which i dismissed when i started hearing about it in my town. they have taken a toll on one of america's most iconic clowns. ronald mcdonald has been taken to an undisclosed location. mcdonald's not being specific about how low the profile will be. this is file footage of mr.

mcdonald. they are going to down play his participation in community events. we jest because we care. it's an important story in my town, the creepy clowns. the schoolboard is sending out notifications about them. no clowns on halloween. >> "closing bell" starts right now. welcome to the "closing bell." i'm kelly evans. >> and i'm bill griffith. october is here but some of us are dressed like it is april. >> i did get a flu shot, by the way. >> now you are covered so i'm covered. thank you. stocks are selling off today. the dow on track to have its biggest intraday decline in nearly a month. traders saying there are just a few factors at work here today. oils decline, a rise in