the gym. there is the pool. laying like this and you are looking out over new york. seven bridges. all the rivers. look at that sauna. >> i will come visit you. >> you are going to correct me. >> "closing bell" coming up. ♪ >> i love it. i cannot wait for his acceptance speech for the nobel prize. i hope he sings it just like that. he will need a translator. >> i don't want to talk over this. i feel like it is wrong. >> brilliant move by the nobel committee this year. >> awarding the prize to bob

dylan for his contributions to song writing. welcome to "closing bell." i'm kelly evans. >> i'm bill griffith. put a smile on your face, the dow rallying off of 184 point deficit earlier today. stocks originally under pressure over concerns about weak export data from china. we will have more on what is behind the comeback. how does it feel? to be on your own? >> i'm like are we actually singing? i got you. i think. new ceo of wells fargo. chief operating officer tim sloane getting elevated to the top spot. do critics want to see more changes. we have the president and ceo of the independent community bankers of america joining us throughout the hour. the power of amazon, go pro shares getting hit on news that

the action camera maker is having issues regarding pricing practices. >> a battle between donald trump and the "new york times." the paper says it won't retract the article citing groping allegations against trump. he says the claims aren't true. let's start with the sell off or what use today be a sell off. the dow is down just 20 points. bob pisani, a fellow of bob dylan following. bertha coombs at the nasdaq. >> i am a happy man with the dylan prize. we have the one heck of a turn around. the s&p 500 we were down 25 points at 10:30 and then oil inventories around 11:00 seem to turn things around when traders realized it is not as bad as it looked. solo defensive names, utilities and telecom are up. old market leaders like banks, tech and energy on the down

side. almost turn positive throughout the day. we have a lot of issues to deal with the markets. bill is mentioning slower china. we are dealing with higher rates and then the earnings season you think earnings don't matter, delta carried a report. look at the move into a whole airline group. the other side of the transports. the truckers we had a small company. look at this. the other sector is down. that's why the transports are essentially break even. the airlines are all up. the transports are all down. it means that earnings are already moving the market. big day tomorrow when the banks report jp morgan among the leaders. >> the times they are changing. >> i'm still trying to wake up. it feels good. the tech sector is under performing today. bertha coombs has more from the nasdaq. >> i would love to say the

answer is blowing in the wind. the small caps you can see the russell 2,000 not come back as much as other major indexes. apple has been near flat line much of the day or come back after being up seven straight days. if it ends higher today will make the longest winning streak since 2015. the biggest coming from the likes of amazon and facebook. it's really the chip sector where the problem is. the chip index which led the way this year up better than 25%. we are looking at a fifth straight day of losses for the chip sector falling below technical support level. no profit taking when it comes to ulta. the makeup retailer raised the third quarter earnings outlook. ceo will be on fast moneyy this afternoon with jim cramer.

bucking the trend some transports here. american airlines getting a lift. csx another big winner. and mylan seeing a lift as bio techs get a break following a two day slide. >> thank you. see you later. let's get to our closing bell exchange. joining us rob morgan. the tambourine man from post nine. i have no idea what it means. rick santelli joins us from chicago. when you just consider financials down, utilities up today what is the message of the market? >> it is risk off. you and i have discussed this that opec really took the lead over from the fed but if we go way back it was china. china was always at the forefront of all the markets' troubles. it led the market. it actually led chair yellen to

decide on interest rate policy or that was one of the things that would be the catalyst of the market or the rates issue. now you get a chance to duck and cover and get cover for that for herself to not raise rates. if you are not going to raise rates that was the tail wind for financials. if you are not going to see higher rates of the pressure that was put recently on utilities and those interest payers, those yielders is going to lift. >> rates are going up. they are not going up. they are not. it is like picking up the daffodil leaves. saying he loves me, he loves me not. >> they haven't backed up that much. i think as we have been discussing a lot about the path of rates from here depends on how the equity markets act. today they recovered but that was probably a give and take between rates coming down a bit and investors looking at the slight pullback and stepping up rather aggressively for the 30 year bond option today.

the longest maturity did find above average interest. when it comes to higher rates based on fed or market it is all very important. the lesson from china today isn't about how the markets look past it. if you take a big view what we see on the export side from china paints a picture. those fundamentals aren't quick changing fundamentals. i think that is another big head wind that said the breeze isn't blowing gale winds that it did in january. it is an important lesson also. tomorrow's october 14. not only is it friday but friday that finds us with new money market regulations. i think that even though the run up to this is probably the biggest impact in the market is prime money funds seeing mass exodus the government money market will be the winner, sometimes whenever anything gets special treatment under the heading of government maybe

there will be future problems. at least at the moment i want everybody to pay attention even though it might be the buy low and sell fat or current volatility built into the lead up for tomorrow. >> the markets have been wrestling whether it should go cyclical or defensive. we have been going back and forth. you pick a third food group. you like the small caps in this environment, don't you? >> i do. i think that eventually rates will go up. i don't think the fed will raise rates until december at the earliest. that will hurt the u.s. multinational stocks. so i like the small cap space here. that's one of my favorite picks here. >> what else? how concerned are you about interest rates? >> i think that there is not going to be a rapid rise in rates. and we may not see the next hike

until 2017. rising rates and the rising dollar will hurt u.s. investors invested overseas. under weight international. as far as getting into the weeds with the s&p sectors i like materials and technology. i have a mixed bag between cyclical and defense. >> where are you putting money to work right now? >> rob likes telecom. if you look over the last couple of months not only has energy ran and that seems like the knee jerk reaction. telecom did really well and money went into both technology, telecom as well as a third group, energy. energy took the limelight. i think telecom performed in both markets. that seems interesting to me. >> i'm done. >> i'm done, too. >> see you later. have a good day. >> we have about 50 minutes to go. dow down about 150 points. >> 184 to be exact.

>> at the lows of the session down 15. s&p down 2. transports are higher. vix off the hiez. the nasdaq down 13. >> utilities are higher, as well. >> maybe it all comes back to rates. john stumpf is out at wells fargo and tim sloane is replacing him as ceo. california treasurer and new york city controller joins us next. and should more banks follow wells fargo lead by splitting roles of chair and ceo? the head of independent community bankers of america weighs in on that among other topics coming up on "closing bell." stay tuned. from long island to buffalo, from rochester to e hudson valley, from alby to utica, creative business incentives,

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47 minutes. if you are just joining us. the dow at one time down 184 points. it looks like we are going to turn positive here any moment.

it looked like we were going to be below 18,000. >> shares are lower after settling a dispute with tesco. it had pulled the products from the shelves after demanded a price increase because of decline in the british pound. the currency has plunged 17% since the brexit vote on june 23. >> i wonder how they settled it. wells fargo retiring effectively immediately, john stumf. >> the analyst community taking the changes both in terms of new ceo and the changes at the board pretty well. but there is one group of people that are still ambivalent at best of the latest update we have had and that is, of course, lawmakers. the reason being mr. stumf

leaves wells fargo a rich man. the bulk of that we know, 110 million comes from his 2.4 million shares. that, of course, has been built up over his 34-year career at the bank. not all of it even a wards. senator elizabeth warren describes that money as ill-gotten gains. in an interview with me yesterday the new ceo confirmed that both houses of congress are still after more from the bank in terms of information but he hopes that if he is to face hearings himself that the performance will go better than mr. stumpf's did. >> we were disappointed that the hearings turned into a situation in which there were more speeches given than questions asked. we felt like there was more answers we could have provided. those hearings are over with and

we are moving on. >> one wonders whether that particular comment might anger lawmakers further. either way mr. sloan will be hoping that comments this is the beginning of the end of the crisis. wells reports tomorrow 8:00 a.m. eastern time. >> it was no secret that tim sloan would succeed john stumpf. the only question was whether he would get both chair and ceo roles. of course, he did not get that. >> i'd say the speed of this was a big surprise. he became president and ceo and more recently was freed from his role as head of wholesale banking. all he had was overseeing role.

when those changes were announced on monday or tuesday he said he was looking forward to reporting earnings. this was a big surprise. the chairman change is significant. some analysts reporting more than the ceo change. now the bank has independent chairman and independent vice chairman. the only one of ten biggest banks to be in that position. >> good stuff for us in front of wells fargo bank branch in new york city. with a new ceo at the helm does this satisfy government officials? joining us now scott stringer, his office advises on municipal pension funds which includes over 10,000 shares of wells fargo. california state treasurer john chang is back with us. california suspended investment activity with wells fargo two weeks ago. treasurer chang, are you okay

with the change in leadership of wells fargo? what do you make of that? >> i'm going to keep close track. i want to make sure that wells fargo comes out strong out of the gate. they haven't made clear in the describing their systems that they are going to put into place that we have a culture change that they go back to original mission and serve customers. if we have more of the same it is not acceptable they have to own the tactions that they took. we want to make sure we are beyond the point of tweaking. we want to see fundamental reform of wells fargo before we make a decision. >> i was going to ask because i wonder if you can broadly estimate in dollar volume wells' loss severing the relationship with the bank. >> there is direct and indirect. one of the things you don't get a full measure is they are the

lead under writer multiple times last year as first year as state treasurer. all others bring business to them and identify who the purchasers of the debt are. as you turnover they can make further money. it will be in the millions. the impact is that we are the largest municipal issuer. there is huge prestige when you say you do business with the biggest municipal issuer. we are not trying to create harm for them. we want them to fix the problems. >> you sent a letter to wells fargo urging them to do a clawback of pay from senior executives. i want to read a portion of your letter to them. you say the bank's long term shareholders face mounting costs from these compliance failures. the senior executives who are ultimately responsible and benefitted financially appear to be walking away unscathed.

first, do you want a complete clawback? what do you think would be equitable? >> that is to be determined. i think today was welcome news. it was time for him to go. sloan separator the chair and the ceo as something we support. at the end of the day fired 5,300 front line employees and left untouched the managers who were part of this destruction, if you will. and we want more accountability. i want to see that independent report that the board commissioned because it is important to not just think that changing the player in mid season will win the game or get to the playoffs. they have a lot more work they have to do. >> the other question i have, you refer to them as compliance failures which might be a polite way of referring to fraud. do you think there should be criminal charges filed against somebody. >> it is for prosecutors to take

a look at. congressional hearings i would caution mr. sloan to be respectful. you should be a little more respectful. we want wells fargo to do well as a share owner. my job is to make sure we get the returns to protect firefighters, teachers and police officers. -- >> with mayor de blasio said if -- will you go the way of california here? is that still on the table in terms of severing your relationship with wells? >> i have great respect for treasurer and i think the work he is doing here is very important for other banks to take notice. the mayor and i are very much on

the same page as it relates to whether or not we continue to do business with them. we need to see results. we need to see transparency and we need to send a strong message that we are watching. if you do not do what we expect you to do we could pull out. >> before we let you go have you been in touch with anybody at wells fargo? i can imagine your office. have you spoke wn tim sloane to voice your concerns? are you getting a sense that they are really trying to change things there? >> i have not spoken to the new ceo mr. sloan. as you indicated my staff interacted with them when we suspended activity with them a couple weeks ago. we are happy to have that conversation. i want to make sure that mr. sloan had a change of mind. the comments he made a few months ago defending the practices as they were engaged in a few years ago is not acceptable. i hope he makes sure they bring

the whole culture along. >> state treasurer of california. scott stringer, thanks for joining us today. >> let's send it to dominic chu for a market flash. >> we are watching shares of yahoo because they are down just off of their lows of the day. they have been gyrating as you can see in the mid afternoon trade because there is some interpretation of comments that verizon general council spoke to reporters in washington, d.c. today. during the comments he was quoted as saying i think we have a reasonable basis to believe that the impact meaning the yahoo revelations of the hacking could allow verizon to withdraw from the deal. i think they have a reasonable basis to believe that the impact is material and are looking to yahoo to demonstrate the full impact. if they believe that it's not material then they will need to show us that. they also went on -- declined to comment on whether or not talks are underway to possibly

renegotiate the purchase price. no comment there. we reached out to verizon to ask whether or not there was any kind of comment on whether this deal would go forward to which a verizon spokesperson responded by saying we were not to read that into it. the statement stands on its own. the interpretation of some of those comments is what caused that movement in mid afternoon trade for yahoo trades. that pending deal scheduled to close in the first part of 2017. >> it comes right after laughing at the story. this suggests there might be something that they might be trying to look into some aspect of it. >> 35 minutes to go here. dow is down 15. s&p down 2. the nasdaq down 15. >> delta posting better than expected profits. revenue a little light.

we will hear from delta ceo on why the revenue has not found a bottom yet. >> gopro halting shipments to amazon. we'll tell you what is behind the move.

delta reported third quarter earnings this morning and phil lebeau spoke about the results and a lot more. he is with us now. >> reporter: even though delta beat the street by a nickel

coming in at $1.70 per share there is focus for investors and wall street on what is happening with the revenue picture not only for delta but all airlines. what we are talking about revenue we are talking about passenger revenue per available seat mile down 6.8% in the third quarter. that is because of lower fares coming in, over capacity coming into the industry. the outlook for the fourth quarter down another 3% to 5%. there is delta's ceo in terms of what they need to see. >> we have been looking for the bottom for some time. when you look at what the drivers are in terms of challenges the capacity, environment and growth in excess of demand is a challenge. we are announcing we are reducing growth rate to 1% and keeping it throughout 2017. >> and so often we talk about passenger revenue being pressured in the u.s. it is pressured globally.

delta announcing cutting capacity in december by 3% to 4%. the low cost carriers coming out of europe. they are certainly hurting delta on the revenue side. it is not just delta but all airlines. the key for whether or not these stocks turn around and delta down about 16% in the last year, the key will be when they finally hit the bottom on passenger revenue and starting upward trajectory. many thought it would happen by now. >> thank you. phil lebeau there with the latest on delta. donald trump fighting back against new allegations he sexually assaulted several women. eamon javers joins us with the latest. >> on the campaign trail donald trump issuing a forceful denial of those allegations that came out last night that he had been involved in groping and inappropriate sexual touching of a number of women. here is what donald trump said a little while ago. >> these vicious claims about me

of inappropriate conduct with women are totally and absolutely false. and the clintons know it and they know it very well. >> meanwhile the "new york times" spaupding to donald trump's attorneys threats of lawsuit over their story on one set of allegations. the "new york times" sending a letter saying the essence of a liable claim is the protection of one's reputation. mr. trump has bragged. nothing in our article has slightest effect on the reputation that mr. trump through his own words and actions has already created for himself. and in a separate development today i can tell you the committee to protect journalists issued its statement about donald trump and his campaign and his relationship with the press. they say a trump presidency represents a threat to press

freedom unknown in modern history. on the campaign trail i can tell you that donald trump continues to criticize the press. he says -- back over to you guys. >> knowing that hillary clinton was reluctant -- the claim about trump being dangerous that he would cut off access to news organizations? >> it is more than that. it is a lengthy statement and it is mostly about his vilification of members. and out on the campaign trail you hear anecdotes from colleagues who are covering trump events about people coming up shouting and screaming at them, somebody with a megaphone blaring in their face. that is the kind of thing of concern and they talk about his cutting off access to certain publications that he feels have been inaccurate or unfair in a way that wouldn't be befitting a

president of the united states. >> eamon javers with the latest. >> here is what is happening. the man accused of last month's bombings in new york and new jersey which injured dozens of people pleaded not guilty to charges of attempted murder. first lady michelle obama campaigning in new hampshire slammed donald trump for bragging about sexually afaulting women in an emotional speech she said to dismiss it as locker room talk is an insult to decent people everywhere. north carolina's governor pat mccrory continues to tour flood ravaged parts of the state. the governor said more flooding is coming as early as friday. and in what many people consider to be the best story of

the day, singer song writer bob dylan has won the 2016 nobel prize for literature. it is the first time the swedish academy has bestowed the award to a musician. he is the first american to win the prize since novelist tony morrison in 1993. it is the best story of the day. >> i laughed out loud when i got up this morning and saw that story. i thought it was terrific. >> what is your favorite song? mine is forever young? >> i love -- does it make me a bad person, does it? >> it does not. >> the tambourine man, all of them are classics and great poetry at the same time. >> the president tweeted that he loved it and deserved it. there you go. >> see you in an hour. >> 27 minutes in the trading session. the dow is down 35 points well off the lows of the session

here. >> wells fargo ceo retiring. the bank is separating chairman and ceo roles. is that something more banks need to do. we will ask independent community bankers of america -- >> and so is representative maloany certified that new wells fargo ceo tim sloan with right the ship. she will join us later on "closing bell." alpha seems more elusive today. is it because so many go after it the same way? chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way, attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential

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about 24 minutes left in the trading session. we have unusual volume today. joining us here look at the s&p 500. volatilities back here. what do you see there? are we destined to break out of a trading range? >> i think we have done that in the last few days. if you look at the daily chart and going back a couple of interesting things. we go right down to september lows. this is 2119. this level almost lasted the entire year. it hit in june and back in november of this year. almost a year ago. we have a small range here that lasted almost three weeks. that was really the first

negative we saw volatility expand. of course, we are in the bearish month of october. we saw health care move to new lows. we saw materials fall, the dollar rising. the combination of those we are starting to see more sectors move to the down side. yields in the dollar have risen lately. >> what is that level? >> this is 2119. this is the level investors want to concentrate on. getting below that which i think can happen will get us down to 2070 and a maximum low of 2050 which would be about a third of what we have done since february to the august high. if you look at 38.2 percent it gets us to about the 25th of october. i'm a big buyer on weakness. i think there is a little more to come. >> see what happens. >> thank you, guys. back to the other big story.

wells fargo ceo john stumpf is out and tim sloan is taking over the role. the bank is splitting the role of chairman and ceo. both roles were previously served. let's bring in ken fine, a trade group representing thousands of community banks. is it common for your banks to have this more split governance model? are you satisfied with the steps being taken here? >> most community banks do have a split model, chairman and ceo. those two positions are split in most community banks. we feel strongly that at the very largest banks you should split the chairman and ceo positions because we think it makes for a stronger governance system within the organizations. if you looked at the hearings stumpf had a hard time

separating his role as ceo from his role as chairman who he talked about chairman is was almost like he was separate and apart from the very board that he was chairman of and it infuriated the house members and the senate members. >> you have said that you don't believe that the kind of activity that went on in wells fargo, the phantom accounts that were created there, that couldn't happen at community banks. why not? >> two reasons. one, community banks are relationship lenders. and they know every customer and every customer knows every employee in those banks so something like that if some employee tried that it would be shut down very rapidly. the second reason is the examiners would come in and pick and up and the ceo, officers and

board and not walking away with $135. >> when you consider even though we consider wells fargo and jp morgue skpn citi bank when it comes down to it it is about relationships between the local bankers who know their customers. don't you think the same thing that went on in wells fargo could happen elsewhere because regulators weren't keeping an eye on that, as well. it is very rare in a community bank where the very mega banks have branches community banks have their roots. it makes a big difference when you have generational bankers in a community rather than a branch manager who is trying to get promoted to the head office. there is a huge psychological difference in the philosophy and approach to banking between a community bank and a mega bank. >> now that wells is trying to

right the ship do you think this is -- what is needed? there is a shake up up top. there has already been some forfeiting of john stumpf's paid or do you think there is more that needs to be done? >> i think tim sloan will do his best to put this behind him as rapidly as he can. to regain trust of the general public and your customers and overall all the investigations that are coming would be a very, very difficult task. i don't think we have heard the last of it. wells is not out of the woods yet. >> thanks for joining us. >> thank you for having me. >> the independent community bankers association. let's go back to dominic chu with another market flash. >> this time in the oil and gas segment cabot oil and gas volatility in the down side for those cog shares. they did move down sharply at

around 3:14 p.m. amid a flurry of bearish option bets being placed. those shares moved. we have a call out with regard to any comment on the trading action so far. as we have no comment we want to call your attention to what is happening. it is something that they are watching. it focuses most business on the south texas shale and the marcellus shale in pennsylvania. we are still waiting to find out. just want to call your attention to what is happening. >> very good. 17 minutes left in the trading session. the dow was in comeback mode holding steady with the decline of 23 points. go pro's drone cameras may be flying high but not so much its stock price. a rift between the action camera maker and amazon is to blame. we'll tell you what caused all that. >> a new survey showing where teenagers spend their money. is it video games, digital

social media? we'll have the answers. stay tuned for that coming up. s so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

shares of go pro down 4% as the company temporarily has stopped shipping to amazon.

>> josh lipton has details on that story right now. >> that's right. so go pro builds its new hero five camera as the best ever. the company holding back on shipping the camera to amazon.com in the u.s. at least for now. and the reason what looks to be a dispute about pricing. remember go pro does set pricing guidelines for its products. it looks like amazon broke the guidelines for older models specifically on the hero 4 black and hero 4 silver. amazon did not respond to requests for comment. the news sending go pro shares sliding since amazon does represent estimated 10% of sales. piper murphy says this is a disruption of a key partner that she says was not considered in guidance. others note it is just

temporary. that ahead of the busy holiday sales season. jp morgan's paul costar called the pullback a buy opportunity most likely he says more sales are going through gopro.com which does command higher margins. we will find out if that is the right call. go pro reporting results on 3rd. >> thank you, josh. online shopping these days. we will take a break with 12 minutes left. the dow down 28 points. >> i think you jinxed it. >> looked like we were going to be positive on the close after being down 184 points and you're right. i jinxed it. >> we have 12 minutes to go. our next guest says have no fear about the early sell off. find out why he thinks we can see a rebound. >> tonight on mad money don't miss the exclusive interview

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just about 8 1/2 minutes left in the trading session.

the dow down 46. we continue a little lit longer. joining us our friend scott. you are just back not telling tales out of cool from an advisory board meeting with the new york fed. are they feeling any pressure to raise rates here? >> i think they are concerned about going at a pace that won't derail the economy. they are trying to do a balancing act which will allow inflation to rise slowly while they continue to drive down unemployment. it's to be honest with you they have done a fairly good job so far. the real outcome is that they have done a good job or not we will find out. i think they are focussed on the measured pace. >> i think they are concerned about the outcome of the election because if there is a strong fiscal stimulus package that could cause them to raise rates faster.

>> we see that being priced in with the odds of hillary clinton winning. i wanted to ask if money markets came up in the meeting. there is concern about deadlines moving. offering liquidity. >> i think they do want to understand what is going on in the money markets. i think that they feel that it's under control at least that would be my impression. but -- >> we talk about raising rates, that's where rates are -- >> my opinion on it is that we do have to adjust for the fact that things like three month is going higher than the fed funds rate. >> i see one saying it can be 3.16%. >> i think that would be a little bit aggressive. i do think that this spread between the overnight rate which they are currently targeting to

be between a quarter and half a percent and three month which is approaching one percent at this point, that is a big gap. that is going to have an impact on the real economy and will cause the fed not to have to raise rates. >> meanwhile, 180 this week and rick santelli thinks it could hit two and change before too long here. i get back to my first question. >> i think the market is trying to price in a more consistent and more rapid increase in rates than i think they anticipate. >> is that a correct anticipation? >> i think there will be probably one rate hike this year, two rate hikes next year, three rate hikes the year after and the market is not priced for that right now. i think we have to get prices adjusted. if you look at rick's opinion the technicals, there is not

support until you get to around 2% tlmpt is a long term downturn in rates. >> good to see you. thanks for stopping by. >> we'll take a break with the dow down 48. >> and then after the bell more on wells fargo fallout. we talk with congress woman maloney. we will ask her what she wants of tim sloan. you're watching cnbc, first in business world wide. something new has arrived. uniquely designed for the driven. introducing the first-ever infiniti qx30 crossover. visit your local infiniti retailer today. infiniti. empower the drive.

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"closing bell" is sponsored by e trade. don't see see opportunity, seize it. >> coming up in the last two minutes of trade. ask bob pisani how his day went. here for the closing count down. looked bleak this morning. the dow was down 184 points on the open this morning but what a comeback. >> i'm thinking at 10:30 the story will be maybe the start of a correction. s&p was at the lowest level since july 8 this morning and then we sort of come back. it tells me there is an underlying dig to the market of some kind. it is amazing. we should have been down. bank stocks never recovered. >> i was predicting this would go the other direction. >> i will show that. the ten year which as we

mentioned knocked on 180 just before the auction this week. that has come back. we are now at 174. look no further. these sectors, the financials, the xlf down today. then the other direction the utilities were up today. so the lower yields. >> so the real estate investment trust, everything inverted. i think the most interesting thing whether or not we are in some kind of correction or side ways situation will be the banks. so remember how well they have all been doing. if you take a stock like citi group, the second half of the year has been fabulous for them. some dropped seven, eight, nine, ten percent. we have to hear about growth.

what about citi group. bank of america is up 11% or 12%. they need to have comments on growth. >> thanks. see you later. dow down 45 or thereabouts on the close here. new york taste coming. stay tuned as we get ready for big bank earnings. second hour of "closing bell" with kelly evans right now. see you tomorrow. >> thank you, bill. welcome to "closing bell." i'm kelly evans. stocks sinking today. the dow dropping 42 points compared to low of about 180. that is good enough to close just above 18,100. the s&p 500 down 6.5 points. broad index. the nasdaq composite sinking half a percent dropping to 5,213. wells fargo trading lower as john stumf is out and tim sloan

takes on ceo role. we will talk to the reporter who broke the story about the bank's misconduct. joins us live here at the stock exchange with her take on the leadership change coming up. joining me is cnbc senior markets commentator michael santoli. welcome everybody. a lot of damage this morning cht what accounts for the change? >> i don't know if there was a particular thing. i don't think the morning selloff was mostly about the china data overnight. i feel like the market softened up. it was sliding as it had lost momentum in recent weeks and i feel like we got that story line about china. i think the comeback was impressive without being decisive. i think if we need some kind of real pullback low that will

sling shot us higher with a little bit of panic i'm not sure we got it today but i think those defensive groups stepped in and utilities and that kind of stemmed a little damage. >> it is hard to know how much to read into this. just as we are talking about narrative of rate hike are we supposed to back off of that now? >> i don't think we are going to back off. it may have taken market as little time to chew over what we had. to whatever extent markets were pricing in the possibility might have been that the fed would wait until next year. i think that has been stamped out now. it looks like december is definitely a go. it might have taken a little bit of time to work on that. in terms of china it didn't look good. the story out of china for most of the year has been one of relief after the intense turmoil to start the year. >> i wonder if anything has been solved. you read about the stuff happening in the property market. i think the fact that i read that like 25% of mortgage credit

was lent in the past year. >> a big spite in corporate debt. >> they are going to do defaults. so i guess the question is and the juan has been weakening but just very slowly. so is all of this happening in a way in which it is kind of going to continue -- is it just telling us about a weak global economy? >> so the answer to your question is no. nothing has been solved. what we have seen is it is likely to be a managed slow down as i think most economists had hoped. what we didn't know was whether or not the chinese government would pull it off. it looks like we might be heading towards big calamity. >> and you can wonder if they push people out do they push them into the stock market. we should ask you about what happened with the unfortunate death with the king of thailand

you can never rule out turmoil. >> there is a handful of places where you have political crisis. thailand is a very unfortunate situation. south africa has political issues. back to china people care about china when they want to care about china. this week we have the when it takes the elevator up people should be concerned and it is usually with market volatility. politics have been switched into high gear. you have the dollar which has been way too strong relative to fundamentals. so you get numbers like export numbers which are right down the middle of the fairway from what they have done which means not so good but not terrible y. don't think deteriorating. at the risk of sounding like a huge china bull i think the chinese consumer is in much better shape than can be more liquid than u.s. consumer f. you

look at e commerce plays and consumption plays in china you made a lot of money this year. >> on earnings i don't know do we call it a little bit of improvement here? csx and delta did beat on the bottom line. >> the market rewarded them for it. it seems these were two groups that had been recovering and people were expecting something of a firming picture. you got it. airlines update just across the border. i think you can put a little bit of stock. i don't think that when i say you maybe need a little more of a purge before we have a real big comeback in the market, i don't think it means there is trouble brewing. it is one of those things that the market needs to reassess. have we been correct? and i think until you get the evidence it could be a little bit kind of day to day. >> and another factor as we are learning wti and brent crude on pace for fourth consecutive week of gains. why are we talking about oil

doing well and natural gas is up? >> i think in terms of oil it is being driven by the opec story. that is still a lot of risk that that will fall apart. you have the kind of natural relief barrier with the fracers who are still the marginal price setters. in terms of the dollar that is tougher to say. it is only where it was at the start of the year when everybody was freaking out. i think it is just a case of global growth. >> get back there without everybody freaking out. >> for different reasons. especially the story the last week has been largely driven by a lot of what is happening in europe in particular with the pound. raising fears that brexit might be a tougher situation. >> other politics news, news on the race to the white house. two new polls out of north carolina and ohio key swing states where voters play a big role in deciding the presidential election. according to the polls, donald trump holds one point lead over

clinton in ohio among likely voters in a four way race. 42-41, 9% for johnson, 4% for stein. the candidates are polling to 45% in the two-way race. in north carolina clinton has a four-point advantage over trump with 45% to johnson's 9% and it is worth noting that these polls that we're talking about here have a wide range and have been moving up and down just over 3.5%. >> obviously there is a greater sense that the lead has been widening. i feel like that has the market if it sweeps congress in a democratic direction. i think we are still kind of bracing for yet another kind of bombshell day to day from either side. i think you have the leaks on

one side and trump revelations on the other and they are fighting each other out there. >> how are you playing it, tim? >> i think when you have your election rally i argue that the s&p at 2190 gives you probably about as moch as you are going to get. some surprise which i'm motsure what that is. mike has laid out a scenario where markets are starting to grapple with the certainty that you know is possibly worse than you expected. the trump presidency i think is a disaster. you get to a place where people probably have seen the best of the market for this year. i think volatility with the fed into the fall and where earnings have to go to take us higher. for investors there are opportunities. the airlines. i think the rails, they are starting to see higher pricing power. there are places where you have sectors that are priced for a market that is going side ways. industrials for sure, cyclicles.

>> what about the politics? i know they are moving all over the place. because people are wondering and starting to sell off on the idea of a sweep does the fact that he is ahead in ohio back that out? >> keeping their professional cool here. it's over. people wouldn't let this guy near their kids much less pull the lever for him. it is time to start contemplating what the clinton policy would look like. she has much lower taxes on people with high incomes. that is what it is. in terms of marc stan point it is pretty negligible. >> still leading in ohio within margin of error. john stumpf retiring yesterday. a public outcry and

congressional hearings. tim sloan take over as ceo from stumpf. joining us is scott record who originally broke the story about the fake accounts in 2013. he is now a freelance journalist. welcome to you. what is running through your head now? is this too late? did it take longer for all this to play out than you thought or was it bigger than you expected? >> both. it took a lot longer than i thought. i thought it would have an impact when we reported the story. i didn't think it would take three years. i also didn't think that john stumpf would wind up resigning as a result of it. >> go back to how you broke the story if you would take us back to 2013 and how you learned of it and the reporting that ensued. >> i think the antennas were up. we had done stories in the past about the perils of extreme sales pressure at financial institutions. when i got a funny call from a

whistle blower i tuned into it. it was a guy who had been fired. he said a lot of people in the l.a. area had been fired because they set up these phony accounts. they forged signatures and found ways to mess around with customer satisfaction surveys. he said that a branch manager had been coaching the employees, the bankers on how to gain the system. and then they had all been fired when complaints came in. it was a weird sort of story and after all they had been fired. wells fargo had got ahold of them. it resonated with me so we did a small story in early october inside the business section. that story went viral among wells fargo bankers nationwide. so we spent the better part of three months pinning down that this was a national problem and ran a very large page one investigation in late december

of that year. >> scott, it's cardiff garcia. i have a question about the wells fargo culture. at first a lot of people thought this was just a problem of high pressure sales environment going too far. since then it seems like it was a lot more grotesque than that. a lot of punitive measures being taken against employees. i guess i wonder how long do you think that something like that can be changed under new management, if at all? >> i think it is going to be very tough because this permeated the system. i'm glad you brought up the employees. as i have fought over this thing the thing i keep coming back to is how many stories were very similar. these people were terrorized. they were afraid they would get fired from these jobs. they didn't know where else to go. they thought they were going to step into a world of american

success and be bankers. and it turned out frequently to be something like a boiler room, a punitive kind of place. that's a culture that really needs to change and i think it is going to take a long time to really turn that around including perhaps cleaning out an awful lot of managerial ranks that put that pressure down on these folks. >> more than we have seen? >> i don't know. we don't really know what we have seen. we know that john stumpf said they fired branch managers and the managers and managers of the managers of the branch managers. but he also said there were nine or ten layers between the branch managers and himself. >> thanks for joining us this afternoon. three years after you originally broke the story. >> you're very welcome sgrmpt had scott record. a parting thought as we prepare. >> anytime you make a reference

to the movie boiler room it is telling a story of a culture that is not one you want to embody. the big issue is they were treated and traded and earnings seem to be at a better quality. you is to ask that question. i think tomorrow's banks led by jp morgan, surprise better equity capital markets business. i think these numbers in a bad environment, these banks certainly are most interesting in terms of valuation. >> thank you for joining us here kicking things off on "closing bell." much more coming up next hour on "closing bell" with gregory meeks revealing whether congress will take aim at tim sloan. we're continuing to follow the wells story. other financials falling. what to expect when banks report earnings tomorrow and during john stumpf's testimony member

maloney questioned him about his stock sales in 2013. she joined us here at the new york stock exchange with her take on him stepping down later. you are watching cnbc, first in business world wide.

beyond the wells fargo ceo shake up investors are looking to big bank earnings. joining us now you invest in a number of these companies. welcome to post nine. they had a pretty rough day today. what are you expecting? >> i think the quarters will be fine. capital markets picked up in september. i think there is a number of issuances, trading activity picked up. i think a move will help most banks. >> the fact that libor rates have been moving up will help them? >> it will help margins. >> it went on for a while. it remains to be seen what happens. it really pushed it up and the anticipation of the fed doing something. >> who is your favorite of the bunch? >> my favorite is bank of america. they are interest rate sensitive. the higher rates are good for

them. through merrill lynch they have a strong capital markets. i think they will post a good number and cleaned up the way they report some earnings. >> one thing i find funny is that so many people seem to be looking to financials for the jour perform. >> libor is giving you a lot of help that fed hike was supposed to give them. >> i guess i'm wondering as an investment in wells fargo i look at how to trade it down it still trades at a premium. it seems to be stuck in the middle there between the highest quality and then the highest quality of the new york banks. is it not yet an opportunity? >> i think i'm going to be patient on this one because i think it is open season on them for the regulators from politicians. it's -- they're a punching bag.

if you recall how long it took -- that has dragged on for years. the day you know wells fargo is a buy is a day a horrible announcement comes. >> broader question. it seems like the last few years banks have had the ongoing struggle within their balance sheets of whether or not when the yield curve is flat they can't make money on interest margins. when it is steeper they can't make money on mortgages. where do you come down on that for tomorrow? >> the higher margin will help. the mortgage quarter should be good. treasuries have moved up so this quarter could lag some. i think wells fargo will be future guidance. it really does depend on the banks balance sheet. capital markets versus a more traditional banking top of model. wells is less capital markets. >> you look at smaller banks. i'm wondering about the opportunity created by wells fargo. everybody is talking about how

the banks are marketing against wells fargo. >> i think you right. the opportunity is not only for marketing perspective but a people perspective. i think they will be trying to go after top wells fargo producers. >> are there names that come out? >> wells fargo is so spread out through the u.s. that i think the entire community banking space will benefit from it. they will benefit from the antibig bank sentiment that is out there. >> we have heard people say they are buying regional banks as preferred trade. does that make sense to you? >> it has for a long time. one reason is about 5% of the banking industry sells every year. not only do you have a chance of faster growth and consolidation and premiums paid on transactions holding some of these companies. >> thanks for joining us. >> my pleasure. rest up because it will be a busy morning. >> the holiday season is fast approaching. that means an uptick in travel.

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a new survey is out showing where teenagers are spending money these days and the majority is not on fashion or video games. >> that's right.

piper jeffrey has been tracking teenage consumption habits for 16 years. they do it twice a year. the new survey is out right now. the group teenagers are spending less money. 2.6% less than this time last year but one thing is for sure. they really like to eat. food is actually the number one thing that the teens are spending their money on. this is for both upper and average income teens across the country spending 21% of the wallet on food out pacing clothing. accessories, personal care and beauty comes in three but that is at an all-time high. food is definitely first. the teens aren't crazy about the whole go to a restaurant and sit down and have a waiter come to you. they like the limited service restaurants with two-thirds of the spending going there leaving just one third to the full service. that's hat highest level of this trend that this survey has seen so far.

starbucks remains the number one restaurant and second is chick-fil-a. chipotle rounding out the top three. teenagers are a very social group. it's not surprising that food is so important to them. they like to go together. we know most are not cooking for themselves. >> i feel like this is my own preferences here. i am surprised that chipotle is doing as well as it is. chipotle still number three? that has to be a big deal for chipotle? >> exactly. chipotle usually does pretty well on this survey that piper jeffrey looks at twice a year. starbucks has been number one for many, many years. chipotle does usually creep in there. i'm not saying that the teenagers don't hear about what is going on with chipotle but perhaps they are just not as deterred as some of the more grown ups. i won't say entirely grown ups because we like to -- i think it is an interesting trend. >> what do you guys say?

>> i'm not surprised as somebody who has a focus group of one tween. starbucks is an after school stop. but also it is interesting that it sort of goes in line with the experiences idea. also chick-fil-a a lot of people wish they could invest in it because it punches above its weight. >> productivity gains in electronics and computers have gotten so incredible that at this point it is hard to measure this stuff because you can get so much stuff for free. it goes to food. parents putting off having children until later in life is a trend going on for a while. kids entering teen years when parents are in prime earnings years. they may have more disposable income. >> penetrating analysis. >> fascinating stuff. >> you know how we talk about how much online spending is growing and that is where the growth rate is. these teens still like to go to

the mall. they like shopping at the specialty stores and they do look online but the survey indicates that about 90% of them prefer that in store experience. >> 90%? wow. >> amazon is still the number one site when they do look online but it's specialty stores so specialty comes ahead of department stores. we see nordstrum creep in as a preference. it is social, too. remember? shopping online is not very social necessarily. this is a group that wants to be together and spend time together. that is a place where they can go. mall rats potentially still out there. >> thank you so much. the latest on teen habits. time for a news update. >> here is what is happening. the suspect who police say shot two boston police officers last night has been identified as

33-year-old kirk figuora. he was shot and killed after he shot two officers who were responding to a call on a domestic incident. the officers remain in critical condition. hurricane nicole striking bermuda. take a look at amateur video showing high winds battering the island. power outages reported throughout the island. american and air canada among several carriers that cancelaled flights. >> a russian bound plane evacuated. a man presented himself and indicated that a bomb was on board a jet. the aircraft was evacuated. here is a strong statement about the state of american politics in the united states. titled the debasing of american politics. and if you look closely it is silhouetted with the profile of

donald trump. you can kind of see the hair line there. >> shocking. >> there you go. it does remind me of old things where is it a vase or profile of two people. >> fun. >> you got it. >> we have a news alert on zika. >> florida saying there is a new area of active transmission of zika virus. this comes after we know there is active transmission in miami beach. this is a new area where they identified five cases of local transmission of the zika virus in florida. we know that they have wrapped up the cases in the area of win wood. that being the first area of active transmission. concerning to see that a new area has been identified. however small with just five people. florida using this as an opportunity to call for more federal funding and assistance

for fighting zika. expected that the cdc will issue the same guidance in terms of pregnant women and travel to the area that it has to other areas. concerning news continuing. >> wells fargo lower today after john stumpf stepped down from ceo role. we are joined with the take on the changes and whether a new chief executive is enough to satisfy politicians. how lemonade plans not just to provide property insurance but to do good, too. those details coming up.

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welcome back. quick reminder we finish lower on wall street. the dow dropping 45 points which was much better than lows when it looked like it would drop. the s&p down six. john stumpf out at wells fargo in the wake of the bank's massive fraudulent account scandal. tim sloan has been appointed the new ceo. our next guest is representative carolyn maloney.

she pressed him on why he sold wells stock after the scandal erupted. >> did you dump the stock after you found out about the fraudulent accounts because it seems that the timing is very, very suspicious and it raises serious questions. >> i did not sell shares at the time because of anything related to hadf-i hold four times as many as i required. >> it seems very suspicious that your largest sale was right after your $1.8 trillion bacwas turned into a school for scoundrels.

>>. >> welcome. >> the bank is out. tim sloan will replace him. does that play kate your concerns about wells fargo? >> i think it took a long time. i know there are three investigations taking place now, the occ and three different states investigations taking place in new york, north carolina and san francisco. >> so the interesting thing is tim sloan will be ceo. is that something that quells these concerns about why they didn't do more as this was all going on? >> well, i think clearly there needs to be change at wells fargo. his resignation was a step in the right direction but still have vowed they will make every customer who was defrauded whole. we need to see what steps they will take to compensate their

customers that were defrauded. there were many employees bringing suit because they claim they were fired because they refuse to do illegal activities or did illegal activities that they were being forced to do. so the chapter goes on. we will see. hopefully it will be a step in the right direction and more confidence will be restored. it is hard to have confidence in a company that opened up 2 million fraudulent accounts, fired 5,000 employees and claimed they didn't know anything about it. they were suits that were settled in 2009 that went back to 2007. they still haven't said they recognize fraud happening even when there have been court cases that were settled where they actually acknowledged that this type of fraudulent activity was taking place.

for so many years it was shocking to me, almost unbelievable, particularly on the heels of the financial crisis of 2008 where we thought reforms were ipplace and that there was new honesty and sensitivity. it doesn't build confidence in this particular bank and this activity against their own customers stealing from your own customers, ruining credit scores. how do you compensate someone for a credit score that ended up in a higher rate for 30-year mortgage tlmpt are a lot of questions out there. how they are going to resolve it. i'm sure there will be many suits probably in every state in the country. already there are several attorney generals that brought suit. the story unfolds. it is a shocking story. >> is there any extension of the scrutiny that the committee is doing to other institutions, in other words, trying to figure out if there was anything like industry practice involved at

wells? >> i know that the cfpb and occ are reviewing all banks to see if the activity took place. that is their responsibility as regulat regulators. i do feel that the actors by the regulators strengthen their role that they were able to uncover this scandal and take steps to really find and move in the right direction for making adjustments and hopefully stopping this type of culture and this type of activity in the future. >> we spoke earlier about the culture at wells fargo with a reporter who broke the story. he said a lot of lower level employees were terrorized by this culture. my question is how do you strike the balance between making sure that something like this doesn't happen again. the appropriateness of regulators determining decisions and how a company does its business. >> certainly regulators are

trying to stop illegal, unethical behavior. no one condones the activity that was taking place. it is almost unbelievable that a bank would open up illegal accounts, fine their customers, give them products they didn't want and then send collection agencies after them to gather in more fees. they created a profit machine that they then blamed on their employees and then reaped incredible profits for the management. so it's really a terrible story, one you don't want to believe happened. if you would like to think that there is honesty in your bankers and standard of ethical behavior. this behavior when i read about it it is almost unbelievable. i certainly don't think anyone condones this type of activity and certainly i would say that

the regulators that found it and stopped it show they are doing their job. and you wonder why didn't the bank stop it? this went on for years. the first court case was back in 2009. and yet the activity continued and the employees said that they were forced to do it. that they say they were terrorized not by the regulators but by the bank. >> thank you for joining us. >> thank you. >> for now that's the latest on wells fargo. lemonade is not just for drinking in the summer. it is a peer to peer insurance company app with more on their plans next. you have seen the likes of billy idol, samuel l. jackson. are credit card programs great? we will have the answers coming up. d aflac pays cash. aflac! isn't major medical enough?

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welcome back. we have a news alrtd on hp. >> hosting analyst day. giving us its fiscal 2017 financial outlook. the company estimating eps for fiscal 2017 of $1.55 to $1.65. the street was at $1.61. estimates free cash flow of 2.3 to $2.6 billion. as for capital return increasing

the map by 7% and announcing additional share repurchase authorization of $3 billion. company says expects to return up to 75% of fiscal 2017 free cash flow back to shareholders. more restructuring news, the company saying it expects between 3,000 and 4,000 employees to exit between fiscal 2017 and fiscal 2019. this company isn't challenging markets. the company would by the first to acknowledge that. told us pc shipments fell about 4%. companies answer has been it is targeting more profitable areas of some of these markets like premium tier, the consumer pc market. stock looks like it is slipping on the after hours. before the news it was at about 30% year to date. switching gears that isn't it. we have other tech news. a new partnership being announced between amazon and

vien wear. it looks like what this partnership will give is customers the ability to really use and run that software not just on their own servers but in the crowd, as well, specifically on aws. those customers wouldn't have to choose between on premise and the cloud. they could take advantage of the cloud's cost, efficientancy and flexibility. it would mean more customers and data and more fire power and fight in the cloud infrastructure market where it has about 31% share. estimated to generate about $12 billion in revenue. >> any thoughts on hpq news? >> it was a soft lowering of guidance up from 9 and change from february lows. the whole story here is capital return, cash flow levels, how much they are able to hand back to shareholders. just an incremental kind of tweaking of that. >> and the shares are down about

2.25% after hours. lemonade trying to take on traditional insurance companies with peer to peer model. users signed up for policies for renters and homeowners insurance respectively. it take as 20% cut and whatever is left over after a year is donated to charities of the user's choice. joining us in today's edition of the spark is danieltia rieber. you guys have made a lot of interesting news that has attracted attention as soon as you opened in new york. you had people signing up for policies. just explain if you could how big you think lemonade could get. >> well, insurance has been largely unchanged for almost 100 years. this is one of the first attempts to rethink building blocks and to use machines instead of paperwork.

this is an attempt to rethink things from the ground up and we think it could be substantial. >> we have been given cause to scrutinize financial models. it just seems like in a lot of cases the mispricing of risk has been a real problem. what are you going to do to prevent that sort of thing at your company and what do you think is the appropriate regulatory architecture for your kind of business model? >> our business model is unique and differentiated from lending clubs of this world. we are inverting the way insurance companies treat premiums. we take a 20% equipment to management fee. if there is money leftover we will return it to consumers. this isn't about peer to peer investors investing. this is about consumers coming together and treating those premiums as their money rather

than ours. you talked about peer to peer lending, so much in the financial markets today is built on a conflict of interest between consumers and financial institution. we say leftover money goes to charity and we take a fee. we are not conflicted with customers and turn it on its head. >> it is not that 20% that you take more than insurance company would make on pure under writing piece of the business? >> insurance companies make around 35% or spend about 35% of your premiums on themselves on the salaries and bonuses and everything else. this is a dramatic reduction and translates into big savings for consumers. this could translate into 50, 60, 70 or 80% savings. this is pretty dramatic. >> what about under writing discipline especially because there is this idea of returning

money to people that is going unspent. what about the under writing piece? >> you're absolutely right. we have hired some of the best people in the industry. our chief under writing officer underwriting officer and chief product officer at liberty mutual. so we've got deep in-house expertise. lemonade is an insurance company licensed by the state of new york. the state of new york is stringent on these matters as well. we're backed by reinsurance providers like lloyd's of london. we've been rated "a" exception by financial rating institutions. >> daniel, are you in early indications taking business more from the like of geico or all state? >> in the past 48 hours we're seeing a lot of consumers shifting their business from the existing incumbents. we're seeing 22% coming from all

state, 18% from geico. that's reflective of the state that all state and state farm and others have a larger market share in homeowners insurance than geico. it's more a reflection of market share rather than us poaching one group of customers rather than another. >> thanks for joining us, the ceo of lemonade and co-founder. the chase for miles. it's a quest that millions undertake every day, to qualify for free flights, hotels, and car rentals. which programs are the best? right after this. across new york state, from long isla to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state

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celebrity spokesmen and promises of double and triple rewards are part of the formula to lure you to credit rewards programs. kate has the winners and losers. >> wallet hub released its best cards since consumers tend to rely so heavily on credit card debt during this time of year. much of that debt will actually be used for holiday travel. the best finish bonus goes to chase sapphire reserve card for giving users $1500 in travel for spending $4,000 in the first three months. they charge a $450 annual fee. the best all around travel rewards goes to barclay card arrival plus, which gives users a 525 travel statement credit if they spend $3,000 in the first three months and 2.1% cash back on all purchases when you redeem for travel. no annual fee for the first year

and $89 each year after. the best airline rewards card is frontier, which gives users two round trim domestic tickets for spending $500 in the first 90 days. then customers get 2 miles for every $1 spent on flyfrontier.com. there's also a $69 annual fee. finally, the best hotel rewards is club carlson premier, which gives 50,000 bonus points after first purchase and 30,000 points for spending $2500 within 90 days of the account opening, redeemable for up to nine free nights. you'll get 40,000 bonus points on the account on anniversary. there's a $75 annual fee. this is all according to wallet hub, kelly. >> club carlson, haven't even heard of it. >> i know. i have united rewards, i like that one. >> i don't even want to get into it, i don't have any of them. appreciate you joining us, kate rogers with the latest. shares of honeywell falling,

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i think we're the best positioned industrial company out there when it comes to understanding not just digital but physical. that will be the internet of things, how do you match digital with physical? >> david cotte sat down for an interview with jim cramer, catch it tonight on "mad money." the market is fixated on an explosion of aerospace. it seems like they have to downgrade near term earnings expectations. >> importing disinflationary pressures from abroad, tough for everybody. >> a lot of the other industrial companies have had a tough streak. >> it seems like it's about the end market. >> exactly. much more of that interview coming up on "mad money."

you're living to hang out with the angora rabbits, i have to see this. >> maybe 10th century technology. >> thanks for joining us this afternoon, much appreciate it. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq markets overlooking new york city's times square, i'm melissa lee. tonight on "fast," despite today's reversal, top technicians say the s&p is, quote unquote, broken and you need to take profits right now. plus u.s. representative gregory meeks called john stumpf a criminal on capitol hill. tim sloan will be here to explain. dan niles says there's one stock every investor needs to own now. he'll tell us what that is. first, we start off with the market come back.