exxon mobil, royal dutch shale. great to have you here. active, pennsylvaniaive, all the moves in the market. a big day tomorrow. it's been an interesting week. just wondering what you guys make of the conversation we've heard. mostly cautious about where we are in the stock mark. >> i'm cautious as well. but like everybody else that's come on, they say they don't buy markets. they buy situations. the it's what i've always said. >> our thanks to rich for joining us today. that does it for us. don't forget our big day tomorrow. "power lunch" starts now. welcome to "power lunch." here's what's on the menu. the debates are done. did clinton or trump do enough to change people's minds? to the stock market. getting clipped. airline profits are under pressure. we'll check in with the ceo of american airlines and guess who's getting into the smart

phone game? kodak. kodak, yes. say what? "power lunch" starts right now. welcome to "power lunch." i'm melissa lee. stocks are turning south, posting their first losses in three sessions. the shift wiping out nearly all of the weekly gains for the three major averages. pretty much hugging the flat line with the nasdaq and s&p 500 in the red. telecom, energy, worst sectors. utilities and health care holding out. mobile eye, getting a nice pop on the back of the tesla autonomous drive news. that was the mysterious tweet elon musk sent out yesterday. >> thank you. here's what else is happening at this hour. new data shows investors pulling $28 billion from hedge funds in the third quarter. that puts the hedge fund industry on track for its first annual outflow since the financial crisis. the dollar hitting a seven-month high after the european central

bank left rates unchanged. we'll get more on that, but let's forget bad hombre and all the other memorable moments from last night because one comment from trump trumping all the other ones. it has to do with the exceptions of the election outcome. let's go straight to john harwood. >> that comment about not being willing to accept the results of a democratic election has dominated the post debate coverage, but only one of many moments in the debates and he came in with some opportunities. he prosecuted her for a while effectively on being this washington in 30 years and used those wikileaks e-mails that have been released from her campaign chairman to make the case that she was saying one thing differently for example on trade in private than she was saying in public. she surned that around by talk uing about how the e-mails were

hacked by russian intelligence in view of united states intelligence officials and -- by refusing to accept the verdict of u.s. intelligence officials. take a listen. >> i am not quoting myself. i am quoting 17 -- >> you have no idea. >> you doubt 17 -- >> our country has no idea. >> agency, well, he'd rather believe putin than the military and civilian intelligence professionals who were sworn to protect us. i find this just absolutely -- >> putin has outsmarted her every step of the way. >> now, hillary clinton baited donald trump on putin, saying he would be putin's puppet. baited him on having what she said was choked in a meeting with the mexican president for

using undocumented work ers and foreign steel in his buildings and finally, when hillary clinton -- him on not paying taxes, he had that outburst. >> i am on record as saying that we need to put more money into social security trust fund. that's part of my commitment to raise taxes on the wealthy. my social security payroll contribution will go up as will domd's, assuming he can't figure out how to get out of it. but what we want to do is -- >> such a nasty woman. >> now, that is no help at all to a candidate who's behind by 20 percentage points and the poll among women voerts, but the issue that transcends all specific policy questions is the issue of accepting election results. he refused on questions from chris wallace and hillary clinton to say he would accept them and just a few moments ago in a rally today, even as republican officials are are urging him to accept that, he doubled down with this.

>> i would like to promise and pledge to all of my voters and supporters and to all of the people of the united states. that i will totally accept the results of this great and historic presidential election if i win. >> now, that is a moment that defines nonpresidential, it is a tradition throughout the history of this country, that losers accept the result. he is now trying to discredit them ahead of the election. he trails by seven points in the average of polls and this puts a lot of pressure on down ballot republicans who are going to be asked to affirm the validity of the election and that tretens to

expand the wedge within the republican party. >> all right, that was a great run down. thanks so much. for good or bad, one of the tradition around the debate is the spin room. go to spin the story. that's where john harwood and i were last night for our cnbc live show. pin room starts to get davos like. who's who in the political world, sports and media celebrities. mark cuban was there. besieged by reporters. he sat down with me for a few minutes bf the debate and i tried to ask him questions he hadn't heard during his many, many interviews. why do you come to all these. >> i got invited. it's history. it's like being invited to the super bowl. you're going to go. it's phenomenal. >> if you were drown, would you save him? >> yeah ofrk. >> i don't believe you. >> of course. i think it would be a horrible president. i think he could start a world war, but that doesn't mean i wouldn't save his life.

i mean, maybe if if his team were on fire, i'd let it sin rnlgs but that would be it. >> governor mike pence was there as well. >> we're going don't call on people across this tri country to respectfully participate in the electoral process, to ensure we can be confident. if the vote is fair, i'm confident. >> i think it was a rough and tumble debate up there. i understand some of the tough language that came from both podiums. the stakes are just that high. >> that was in response to questions about the nasty woman comment. secretary clints's communications director also responded to the comment. >> i don't think we need to have a reaction to that. i think it speaks for itself and what he says about her, her concern -- >> we have breaking news here. pharmaceutical company ariat, a

steep decline. >> these tweets are becoming too familiar in the bio tech world. they're down more than 5% from its intraday high after bernie sanders tweeted out a link to a letter that he and elijah cummings sent them over the price of its leukemia drug. they started looking into the increases of this drug. we can show you here, some of the increases over time. it was approved in 2012. about $115,000 per year, reaching up to $199,000 per year after a series of price increases. you can see them escalating from 2015 on ward. the senator and congressman in their letter asking for more information about the pricing and rnd that have gone into this drug. these outrageous sale s taxes indicate their more concerned with profits. pointed out not only the price crease, but the fact the company

removed some doses from the market, making it potentially many more expensive to pay for lower doses more frequently. the company on friday responded by saying the pricing reflects the significant investment in rnd. and the associated risk with research and development, but this having an ongoing impact on the stock, which declined on this and is down more today, melissa. >> the background as you were telling me before was that this stock had declined down to two bucks a share because of safety scares over this very same drug. they had to retool it and then also concurrently, the patient population got smaller and so therefore, some of the price increases have been around those times. can the most recent ones be justified by saying our populations have gotten smaller and smaller and therefore, we have to raise the price of the drug in order to make it. >> it's an important question. this was an interesting situation because the drug was

for a broader patient population. then safety issues arose. it was pulled from the market. he is now a chairman of the company. this drug was then moved back on to the market aftreaching agreet with the fda and the patient population got smaller after that, the price did increase. it sounds like it's going to be under more focus. they are asking for -- by november 4. >> this company developed this drug. didn't acquire this. >> that's right. part of the argument for spendinging a lot. >> thank you. back to politics. that's a great segway, actually, for a political discussion between what we heard on the debate stage and in the spin room, is it going change voter's minds? let's bring in jennifer granholm, clinton surrogate. larry kudlow and adviser to the trump campaign. larry, the consensus is morning

is that donald trump didn't do it last night. >> well, he did some things very well. i thought it was a pretty good debate. he called her out on the e-mails. on the pay for play on the cash favors on the corruption. he had her op her heels. okay. he also made it clear he's the tax cutter and she's the tax hiker. so i thought that was pretty good. i think he made some big mistax including this is about the election results and the outcome, which they're trying to clean up right now. unfortunately, that's become the headline story. >> donald trump is now saying that if he would accept a clear outcome, the speech in delaware, and said he reserves the right to be able to file suit. probably echoing the al gore argument they were making last night. >> we were talking about american history in the 19th century. we've had contested elections, but i wouldn't vbts it the way he said it. ik this was a mistake. i felt that his attack on obama

care was really very good, but i don't think and we'll get back to this, economics an jobs and wages are the number one issue. pocketbook issues. all the polls show that. he got his message out about lower taxes. i don't think he made the sale. i don't think he explained it properly. i don't think he got into detail on all the benefits. >> i agree with everything you said, but governor granholm, i wonder if i'm getting to the point where i wonner if it doesn't matter what he says when he lets the attacks and trolling or whatever it is by clinton, get to him and he says these thing where clearly, she's under his skin, does it do away with any of the policy or the debate quote wins that mr. trump might have? >> yeah, i mean, he's not presidential. he doesn't prepare in the right way for these.

the contrast between the two of them in terms of preparation and the ability to be presidential and to not take the bait or to attack even in a way that with a stil stilletto. yesterday, i think this trio of debates, this trilogy, was for all of us, an historic trilogy. i think the debate professors are going to use this series of debates and i think last night was the best of the three to be able to coach people on how to and how not to debate and on how to and not to act presidential. >> all those points taken, but we've got a business audience. we had meg talk about more government intervention in to a drug company and when people look at hillary clinton, investors look at hillary clinton, regardless of how prepared she is, what they see is a lot more regulation, a lot more intravengs, a lot more of that, bound to come and to her investing and likely her the

economy. i mean, she is what makes him possible. >> no, i completely disagree and i would encourage people to go look at her economic policies. between -- >> which ones? >> i'm talkinging about the ones that are in her policies that are online. that says what she's going to do to help cut regulation for example for small business. so help to make sure that we've got the right kind a mix of investments to make sure we are not losing advanced manufacturing jobs, but grow in them. make sure we have trade, yu, bethat it is fair trade. when moody's did the annalysis, they said her proposals are going to create jobs and his would lose jobs, in fact, put us into recession. if you look at the way the stock market has reacted after these debates, it seems like many of the investors believe she'll be

a more stable, predictable and stafr president for business and everyone. >> hillary's laundry list from the debate, job train iing, minimum wages. we're going to invest in individuals. i don't know what that means. free college tuition for public schools. this is an obama three type list. this doesn't go to the heart of the problem in america. we are not growing. trump has a good plan. even though i don't think he got it out. he's saying if i were he, i would say -- she must have talked five times about her hikes. corporations, rich people, everything. five times. trump should have said there grow again. you're taking money out of people's pockets. i'm going to put money in. my business tax cuts are going to provide incentives to bring money home, invest in the united states.

i just want to say this is a line i wish mr. trump used. marichal tax rate reduction u, which was used by bill clinton as he cut the capital gains tax, was used successfully by john f. kennedy and reagan with 5% growth rates. trump should put that on the table. >> you've got to make the sale because pocketbook issues are going to be fwhurnl. the one thing that, one of the growth, toipt get this in because i hear a lot of things and as a father of young children, i hope college is free, believe me. because it's expensive. >> never free. >> what i hear from clinton is she says we're going to do this and this, but keeps coming back to the same pool of money. taxes on the rich. we've seen 80% the rich make

less than $500,000 a year. even if you jacked taxes up on them, there's not enough money. >> look at her plans. >> this is a key point. when voters hear this, you are so right. when they hear tax the rich, they know you can't raise the money up there. the only way you can raise the money is by dipping into middle class tax hikes. that's the flaw in her program. >> you can put that out there, larry, but she has said over and over o again in every plan she has, she will not raise taxes on the middle class. on anybody earning $250,000 or less. >> how do you not do that when the majority of people make under 500. there's only 16,000 filer who is make over $10 million a year. where does it, is there enough people? >> she's got, every single thing in her plan is paid for. and none of it is paid for by

taxes on the middle class. you can look at it. look at the moody's report. the analysis of the tax foundation. she is not increasing debt and she is raising revenue, but not on the middle class. >> governor, the tax foundation fund says she will basically cause a recession. >> they're saying that trump will. they're saying he will increase the deficit by $16 trillion. >> dynamic impacts of these tax hikes. can't just raise taxes without damaging the economy. what she said last night on social security i think it was very important. we'll hear more. i'm going to raise the payroll tax or other ways. >> on people over 250. >> or other ways. if you're going to spend, you spepd. >> for another day. thank you. good to have you here. >> all right. your next guest says that earnings, corporate earnings, yes, they still matter. will make a big comeback next

year. how and why? that's straight ahead. upgrade your phone system and learn how you could save at vonage.com/business

if you have a following stocks this year and we asked you to guess how the stock market was doing, assuming stocks must be down. there's chaos everywhere. but it's turning out to be b a decent year for equities. dow up 4.75 this year and adding

in the average yield of 2.75%. you've got a year to date return of 7.5%. not great. joining us now, senior portfolio manager at morgan stanley. it's kind of amazing with all the stuff going on. how and why? >> because in politics, people ç overextrapolate politics. you don't have to be a math whiz to figure out earnings will turn up next year because of areas of the market that were weak year over year positive next year. and the fourth quarter it's always a very good quarter because the market tarts looking to next year. i think we're going to have 13, 14% earnings growth next year. >> what? >> is that because oil and energy is going to come back? because that's kind of a false headline. that's a false headline because it's like you're going from a d minus to a d.

you've improved by 10%. >> but the s&p earnings up 6, 8% this year if it weren't for the fact the energy sector is going to earn $4 a share. that's because through the first half of the year, oil was down 20% year over year, but by the end of the year, it will be up 20%. so, just to put it in context, $40 a share of energy sector earnings two years ago, it's $4 this year. okay, it's going to $16, so the point of all tiz is we're all focused on the politics, but once we get through this and say wait a minute, we're going to have $133 of earnings next year. >> are you saying the earning pour is going to make the pe look better in because right now, pe we can argue in some areas of the energy market are overvalued. exxon mobil, you want to pay 34 pe? for mobile? >> the swres interesting thing is energy stocks don't move on forward pes because you never buy them when they look like

they have low keys. that's what every analysts thinks ois going to p $3-a barrel. you buy them when they have high pes. >> so, you're saying when i identify a high price to earnings, current price to earnings in the energy sector rigts now, that means better buy. going to get better. >> that's exactly. what you have to understand is how much did that company earn, what can they earn and normalize oil price. looking backwards is a more forwad. estimates tend to move with the oil price. >> where else besides energy and oil? >> i think the big pitch out there, because the market hasn't done much until recent ly, everyone's overpaying for dividend as safety and no one paying for a return upside. that could be in technology,

also. >> seen the days in the third quarter technology. >> more to go. i think that these areas, looking, if the people start focusing oh, my gosh, the s&p could go up a lot. they want energy. they want technology. and i thidemand. >> what about financial sns. >> we've been negative on financials. underweight. we're changing that was i think we're getting to a point where the questions of is low interest rates really helping the economy you're starting to hear that more and more. i think and the fed raising rates could be good. >> peening though it's not helping so interest rates will go up. >>ç exactly. that will help the earnings number more. >> 4 to 16. still terrible. >> exactly. >> thank you very much. all right. american airlines reporting a drop in profit and revenue. but last quarter still beat earnings estimates.

to your point. parker will stop by live. his thoughts on earnings and the new air travel rules proposed by the white house and how they're enforcing the flight ban on samsung's exploding phones. coming up. recently, a 1954 mercedes-benz grand prix race car made history when it sold for a record price of just under $30 million. and now, another mercedes-benz makes history selling at just over $30,000. and to think this one actually has a surround-sound stereo. the 2016 cla. lease the cla250 for $299 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

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.8%. yield to 1.2. keep wondering, ever going to get to 1.8? 30 year at this point. 2.5%. that's your bond report. >> all right, shares of american airlines are trading lower today. overcapacity to blame for the loss in profit revenue, but the company still managed to beat expectations. phil lebeau has more with the ceo. >> i'm joined by doug parker, chairman and ceo of american airlines. beat street on top of the bottom line for third quarter, but it's your profit emergencien outlook that has a lot of people talking now. ared because of a slowdown? >> happy with the results. we're seeing revenues while they're down year over year, less for us than for others and they're down less than ore quarters. as to the fourth quarter, we see that continue. guidance for revenues in the

fourth quarter, it's aç cost issue. it's up in the fourth quarter. but those are -- we've invested primarily, those are expenses. that i thinks like profit sharing, higher increases in pay. those are behind us and that's great. you'll start to see this margins approach with regard to the new contract, not just for you, but there's a concern that these are some fairly hefty salary bumps or pay bumps for the different unio unions. how much is that going to slow down the profit bability for your airline over the next two, three years? >> it's critical. getting the airline where we need it to be. our people have been through so much. and we need to get them to where they're excited about taking care of customers. exciting about being an american. we're doing that, but the right way to do it as we are returning the profit industries,

fundamentally changed, we need to take care of our team and they'll take care of customers.ç if we don't, we're not going to get the industry to where it needs to be. >> let's start with jet fuel prices. as they move higher, we've noticed shars have rebounded. there's more demand in the market. the economy is healthy and strong. how much further can you see prices go before you get concerned about the increases? >> not sure that airline stocks -- >> usually, they don't. >> they shouldn't. but there are other things going op. >> the reason you've seen fairs decline over the years, when that happen, osupply comes in, pritss fall. i think that's going on now is as prices are increasing, you see capacity go down. there's more ability le fares.

it's what happened in real industries and companies. when your cost of production increase, you're able to pass that along. >> the d.o.t. comesç out with w rules regarding fare, advertising and their sense the we need greater transparency for more competition within the industry. i know the airlines for america, the trade association has said, what are you talking about? air feiairs are down 6% this ye. what do you think about those rules in terms of how you should be pricing your protect? >> first off, i look forward to the day they think they don't need to take care of customers because we're doing it. which we feel like we are. today's world, we're working so hard to take care of customer, but we have our government seems to believe that at times, they need the to protect our own passengers and one day, we'll

hopefully get past that. in this case, most provisions are fine because also want to make sure we're talking care of our customers. this issue is an odd one there's no set ofç prices more transparent their airline fares. this one we're a bit concerned it might be more about the distribution systems. in fact, the older, the gdss who are trying to force you know, their systems on to customers, which isn't good for customers. they're concern of course is we need to be transparent. it's good for conservatives to have transparency. this one need to be shared. isn't just -- we'll make sure. >> you mentioned that more

capacity coming out of or people pulling out of capacity as fuel prices rise. it means that we might see a slowdown in the number of really low fares out there. do you think we've seen the bottom in terms of a fair war, but there have been some really cheap air fares being thrown out in the third and fourth quarterç when i said fares increase, it's mar marichal. wasn't using a great value. will continue to be, but as indeed, as fuel prices go up. >> battle for business strategy. you guys are at the heart of that, especially on the trans continental flights. is there enough demand in terms of the seat, those premium products on these trans con flights? >> our a321 is just fantastic and customers love it, but what happens in our business when someone like americans put a

product out like that, others need to replicate it and they're trying. is there enough demand? probably not. but that's okay. those are the most important customers and we have a product out there we'll continue to have a best product out there for those customers because they're really important to american airlines. >> last question. less than three week frs the u]%q!juáháhg you're see ng terms of rhetoric between donald trump, hillary clinton and the election overall. >> i don't know. gotten where it doesn't feel like it's good for business on all the fronts. we in business you know, talk about things like free markets. because they're important o to us. we also talk about being socially progressive because that's important to us because of all the people who work for us, because of our customers and no one seems to be talking

about -- gravitated polls that aren't good for business. this is concerning. i think we as a business community need to get to work on this because there's nothing that looks, there's nothing out there that feels like it's going the right direction. >> chairman ceo of american airlines. joining us on a day with they beat the street on the top of bottom line. >> airline stocks taking off this year. the airlines index up ç12%. let's bring the in chris kelly. janice is a top shareholder of united airlines with more more than 10 million shares. great to have you with us. how much more needs to come out of the system in general? >> to be honest, it doesn't sound like a lot more than what's been guide d for 2017 already. and the reason i say that is is the guidance today of to

capacity growth on a on sol dated bases for 2017 and that's what domestic being flat. with ta data point, they also suggested that the unit revenues which is cut for pricing is essentially going to go flat to slightly positive. you adjust for the calendar shifted at the epd of the year and you look at the adjust the quarter from maybe november to january. so that suggests the trajectory of pricing is on the upswing. so, capacity's probably looking okay at this point. >> how much, fuel prices i would imagine could threaten thatç scenario, so what price do you start getting concerned and there's a couple on why fuel prices are increasing. do you believe it's because economic growth is is around, that's great for airlines because people want to buy tickets. they want to travel. but if you believe that simply fuel prices are going up because of supply demand issues, that's not a great scenario for the airlines.

>> it's not. an ideal scenario, but i don't think the correlation is a negative one between the two. roughly 10% of the revenue comes out of houston. if oil comes back, activity comes back, then u.s. shale in particular, that's going tb a great tail wind and internationally, most of the routes have fuel charges on them. so fuel goes back up. a lot of o the international air ticket prices will back up so it's not ideal. be our view on oil, which joind your show ever and tam[ed about prices being higher, it's not going to decimate the industry. >> out of time. sorry. got to jump in. do you own any other airline stocks besides united in america sm nauler cap names you've been give sboog? >> not on a domestic basis.

>> so, it's really just those two individual stories not the airline sector you like. >> i think the sector, the domestic u.s. sector is in great shape. those are our favorites now. >> great to have you with us. thanks for joining us. >> thank you. >> "power lunch" is back in two. more of a spokes metaphor. get organized at voya.com.

i'm sue herera, here is your cnbc news update. iraqi forces making progress taking back mosul and the areas surrounding it from isis t. senior commander says special forces have driven islamic state militants out of the town east of the city. in just a past three days, more than 5500 people have been displaced by the fighting. meanwhile, britain's defense secretary says the british military is launching cyber attacks against isis in order to aid iraqi forces. it's the latest admission by a military official that hacking is being used on the battlefield. apple is going after count fitters on amazon. the iphone maker says it's been buying apple chargers and b

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live pictures from miami, florida, where president obama is expected to make a speech shortly outlining possible fixes to the affordable care act. he's also in florida to help hillary clinton n her bid for the presidency. we're going to be monitoring this event.

melissa. >> the stocks you need to know about. first stock here. american express even with the -- stronger than ek pechted results. credit swooes is reiterated its underperformed rating. it says theç company indicated rewards could rise. also, it does not believe that axp -- guidance of 2017 while it's still growing the business. >> i don't know how they can go up because you have 40,000 members rewards points, you get like a toaster. >> you tried it. >> by the way, this is a $93 stock a year and a half ago. wow. >> stock number two, expedia. upgrades esp to an overweight since the company has pulled multiple levers. to support growth. they did some checks on the home away property. came away positive.

>>. >> it's interesting they pointeded tout home -- as we would think the air bnb could be a threat. all right, the stock here, five below. says the massive pullback since late july is a buying opportunity. the stock is down almost 30% since then, but the piece hasn't changed. weaknessç in stock can be attributed to a couple of factors. the pokemon go phase. it's about broader merchandising improvement. also, hasbro. >> whatever happened to pokemon? >> i know. it was the hottest thing for five seconds. >> like when nirvana came out with never mind. died in a week. heavy metal died in one week. finally, small cap call of the day. oasis petroleum.

upgrade ting from a buy to a ho. tph likes the deal. analysts adds they may sell more in north dakota. they call oasis a beat and raised story. by the way, second upin two days. pretty positive comments. it's $11.5ç stock. >> major players in technology, business and politics, not to mention hollywood, they're all meeting at the "vanity fair" summit in san francisco right now. including sarah jessica parker and she's going to stop by "power lunch" to talk tv, business and more. that's coming up next. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore.

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vani"vanity fair'sfair" sum continues today. we've heard from some major players, but seems like even some hollywood heavy weights are making an appearance. let's get over to andrew where he's sitting down the sarah jessica parker, star of divorce.

>> i am with sarah jessica parker. just finished the third episode of divorce. only the first two are out for the public, but -- >> just bragging. >> great to have you here. >> thank you. >> i also think of you as an entrepreneur. i want to talk about divorce and where this idea came from. i had no idea that you had such a dark sense of humor. >> well, about four years ago, i went to my producing partner. i have a little company on hbo. i said, i have been thinking a a lot about marriages. i was looking around at my friendships and people who had been in long-term commitments and sort of variety of places that people findç themselves. i was like, i just thought it would been a interesting area to explore. hbo was very enthusiastic. we were set up with sharon

morgan, hired her and thus, this complicated, amusing, raw, honest story of this marriage emerged. >> i watched it by myself because i'm out here in california. am i supposed to watch this with my partner? >> i think it can be whatever experience is most comfortablem? what's the difference. 52%, 50, whatever. men and it is now exactly 50-50. which is very unusual for a shoç that is sort of talking about intimate relationships. >> how do you think about your career now? actress, producer, entrepreneur? i don't know if we can show the shoes. >> this is the rambling. >> how do you think about all the different projects? >> i'm not good at conpartmentalize l except in conversation and specificity of you know -- >> you want to make a shoe line,

for example. >> the shoe line has grown enormously. >> to other things. do you look at other actresses and actors who go out and thinking of people like gwyneth paltrow who started goop. >> we look at all of it, b obviously. it's there and there are story of success, cautious nair tales. i've been a business person a really long time and i think we need to tell our own story. we're prudent and thoughtful object how fast we grow. we just announced we're going to do sjp, little black dresses, allç produced in the united states of america. a bag collection only produced in the u.s. with leather goods from italy. our shoes are made in italy because there's a long and storied history of shoes made in tuss kai any. it's interesting, necessary, but we're really thoughtful about the ways that are meaningful and connect to the origins of the brand. >> i know you were involved

briefly. >> two days. >> with promoting the epipen. >> my son has a severe life threatening peanut allergy. >> then you heard what happened and you pulled your support. walk pricing, what some might call gouging. that w happening. i was disappointed. i was saddened this was the approach and philosophy that there was any way to rationalize that decision and i think because i have a child who is, that the autoç injector is necessary for his safety every single day. this is a huge and the element for our plan for safety, i can't imagine what it's like for anybody americans who have siblings, children, parents, husbands, to be reliant upon this particular item and not be able to afford it. i think it was incumbent upon this particular company and the

pharmaceutical industry in general, to be mindful and to be never mind considerate, but to understand the role that they play. in ways you can be benevolent, heroic and still, we all know, make a really nice profit for the xaep. >> real quick because we are in -- here it is. you're off twitter now. is this true? instagram all the time? >> it's true. had a brief court ship with twitter. >> what happened? >> i don't have the concentration for it. >> can't get donald's tweets. >> somehow, they find us. i don't have the constitution forç twitter. i'm not made it turns out, i'm not tough enough, frankly, and i like different kind of colors on my conversation. >> fair enough. thank you so much. >> thank you so much. >> back to you. >> thanks for bringing that to

us, andrew. snoopy got fired from met life. first though, the economy taking center stage last night at the debate. but surprise, surprise, not everything said was 100% true. really? separate fact from fiction, next. there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all, the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $369 a month at your local mercedes-benz dealer.

this hour, the final debate. did either hillary clinton or donald trump do anything to improve their image and what do -- think about the election. we'll talk to who supports tr p trump, another who backs clinton. plus, too much other stuff to do and watch, the second hour of "power lunch" begins right now. >> here's a check on the markets. look at that chart. either way, the dow is up b about 30 points now. the overall markets helped a lot. a couple big movers inside that. american express, we talked about that, up 9%. travelers are down 5%. two movers on the dow there. again, your big story. michelle. >> all right, in the headlines

hour, u.s. attorney speaking at the new york fed about the$c@r(c culture of big banks, saying the bosses need to make clear to earn at the company they care about integrity. the united states says the government this the philippines is not asked and security or economic ties. that's the country's president says he wants to align with china and separate from the u.s. university of louisville men's basketball team hit with four violations. coach hit with failure to monitor. he said he knew nothing parties are strippers were paid to have sex with players. last night, it was about branding, image and trust. two of the best image people around. suzy welch and lynn kai kaplan. adviser on hillary clinton's 2008 presidential run, a judge on the apprentice. looking at the poll, trump's spoth with women is waning. listen to this.

>> i am on record as saying that we need to put more money into social2security trust fund. that's part of my commitment to reyes raise taxes on the wealthy. my social squurt payroll contribution will go up as will donald's, assuming he can't figure out how to get out of it. >> such a nasty woman. >> you both laughing. you thought it was funny. >> it was a pretty nasty no-no. >> why are you laughing? >> because i've heard it b about 8,000 times now. >> i laughed the first time because i went, okay, just lost half the population. >> i didn't laugh. i was horrified. did he just say she's such a nasty women? you sit there stunned. >> that's what bad hombres do. >> can i just change the conversation for a second?

can we talk about her outfit? that was a shonda rimes special. >> that's the first no-no. when it comes to women, all you 1:want to focus on, it's a doub standard. never talk about men's clothing. >> i thought he looked, his suit was very handsome. >> our clothes look exactly the same. >> criticism, i heard this all for years, right. why do you always focus on the way a woman looks. or what she's wearing. >> i think her whole persona was sunny and positive and hopeful. i thought it was fantastic, the way she carries herself. >> image does that. that's what we're talking about today. his facial expressions matter. women have their clothing as part of that. no surprises. were you surprised when she walked out? the only thing that surprised you is what color it's going to be. this keeps with the theme.

i am predictable. not going flame out. not say something that makes you clutch your chest. he's unfit. never going to make you laugh. >> i looked at the 2008 campaign, she is very,ç very funny. >> you have an amazing anecdote, again, it doesn't play well from a personality perspective. you talked to her about asthma and she rattled off some obscure connecticut health law. >> it was a lot of people in the advertising industry. she memorized everybody's name. people were asking her very in the weeds questions. somebody had a daughter or son who had asthma. she rattled off all the insurance, what the policies were. how you do anything is how you do everything. i was just blown away. oh, my goodness. >> am i wrong, i think that

donald trump's power, he's a far better speaker than mrs. clinton as far as just natural order, but at this point in the election cycle, i think people want more details and trump says big things like it's going to be a disaster, it's going to be great. but there's no real i'm going to go this the 2-% do that, 12%. >> don't you think ribt now, it's a fightç for the unedecid. last night, i think he lost them with that she's a nasty woman. and then also the he wouldn't, the election result, maybe not honoring them. give me something. i think those were the two things he gave them. where she was out there, she's rehearsed, practiced, -- people who know her say she's got a lot of humanity, just don't see it as a regular observer of watch ing her. >> yes, she has come out and said i'm not a natch rl or rater, but i'm a policy wonk. i care very much. i've heard many stories about people in the senate, she worked

across the isles really well. she was the one when everybody would go home, she would be taking a stack of notebooks to go over every bill, line, every single thing. you want somebody who's obsessed with the details. we live in a culture when people don't remember big things. >> when i hear somebody obsessed about the details, she is into regulation.ç >> that is is like, that's a precurs precursor. >> i'm thinking operative. she's a very, very practiced, political operator and you have to know the details to manipulate late around them. every people, 37% or whatever the numbers say want somebody who's fot into the weeds. >> i want to play one thing. ceo of american airlines was on. like many americans, very happy with both sides.

here's what he said. >> got a good point. doesn't feel like it's good for business. on other fronts. we in business, you know, talk about things like free markets. because they're important to us. we also talk about you know, being you know, socially progressive. because that's important to us. because of the people who work for u our customers. doesn't seem to be talking about either of those things.ç we've seen them gravitate in the polls that aren't good for business. it's concerning. we as a business community need to work on this because there's nothing that looks, nothing out there that feels like it's going to right direction. >> not good for business on either front when he talks about the worries of free markets, he's talking about democrats. >> when the first responders could not get health care, she went back long after the cameras were off. fought and fought an fought for

them to get health care. she went in the weeds. looked at all the rules. looked at the things, stipulations in order to get that bill passed. those are the things. >> but is she going to hurt business even more than it's been hurt under president obama? >> let's take, obama got a nice little package all wrapped with a bow with this unbelievable down in the economy with the housing bubble bursting. he was handed this and what he managed to do in the last igt years is pretty increde bable we depression. not even recession. depression. he took us out of it. saved the auto industry for us. i couldn't disagree more. i think that if you look at the country, over 55% is getting obama great approval ratings. nobody after eight years has given that kind of approval. >> human beings have a shorter attention span that a goldfish. >> a goldfish is nine seconds. human is eight second. what are you saying?

>> even the goldfish were amaze ed when they read that study. couldn't believe it. >> then they forgot. >> it's changing our wawiring o brains. >> my dream when i die is to be flusheded county a giant toilet. >> have to leave it there. >> get to john with the news alert. >> yes, new establishment summit where jeff was recently on stage covering a number of topics. one was donald trump and the presidential election. took a tax from trump. he said on the tweet with the hash tack send donald to space. he thinks what trump is doing some of the language is bad for our democracy. take a listen. >> it is inappropriate for a presidential candidate to erode around the edges.

they should be trying to burnish it instead of erode it. we look at the pattern of things. it's not just going after the media and trying to threatening retribution for people who scrutinize him. it is also saying that he may not be in a concession speech if he loses the election. that erodes the, our democracy around the edges. these aren't acceptable behaviors. >> he also talked about artificial intelligence and how amazon is using it in its business.ç even in the way amazon judges the quality of strawberries. listen to this. >> we live in a very interesting tank. there are a few golden ages happening and one is machine learning. you know, kind of specialized

ai. and it's you can, we're doing everything with it. creating strawberries with it. for amazon fresh. we have cameras that get the strawberries and can outperform humans on strawberry grading. so, that's just i gai you that tiny example to show you that artificial intelligence and machine vision and natural language understanding these kinds of amazing things that just ten years ago, were science fiction, are going to be helpful everywhere. >> he also talked about peter tale on the one hand -- he's a contrarian and they are almost alwaysç wrong. he also said he thinks it would be a mistake for mark zuckerberg to shun him because it's a slippery slope. having political ideas that you

disagree with so, while he himself not a fan of trump, he's not willing to distance himself for that extent. back to you. >> thank you very much. really interesting there. a big part of last night's debate focused on the economy, but not everything that was said was shall we say, true. steve liesman is here to separate the fakts from fiction. >> it's the number one issue people care b about, not these other things. the economy has been number one issue. let's start with a caveat here. economic forecast is neither fact nor fiction. more or less possible. i want to get in a second to donald trump's big interesting claim that -- 4% growth in the second, but fist, here's a debatable point to hillary clinton.ç >> i will also not add a penny

to the deatbt. i have costeded out what i'm going to do. he will add $20 million to the debt. >> we have to give that an untrue. would at 200 billion over ten years. and more than a penny, obviously. trump pays by cutting, spendinging after what he thinks is very strong growth. >> i am going to create tremendous jobs. we're bringing gdp from really one% which is what it is now and if she got in, it would be less than zero. i think we can go 5 por 6. >>ç longest sustained period a 4% or above.

before that, it was during the reagan years. 15, that's the number of years. it was above 4%. he would have done better goido 3%. 20 out of the last 50 real quickly, growth is determined by two things. hour's work after population or o productivity. that's how efficient they are and how much our technology grows. the story being this. since 1992, productivity since 2002, so most economists think we're in for a slight year of slower growth though they agree less regulation, lower taxes can help growth. just very suspect of this 4% number, so you may not want to tailor a tax cut plan to equal a dift difficult to reach plan. we're back. >> we've had this discussion before. i think bottom line, tell me what you think, but if you coulç

ever really stick to the details of his economic plan, you'd have to different visions about what to do with the economy, right? raise taxes or cut taxes. raise regulation or lower regulations. >> i would first tell him to sort of tighten up the details of his plan. i think that him coming out with this massive thing when we have all these other issues about questions in the future, probably not the best plan. he could have come up with something that was half of what it was. gotten a lot of economists on board with the concept and then as you said, avoided the debate over the details. right? but instead, he comes up with this thing, it looks like a $6 trillion deficit. he's the first candidate in my life who has raised taxes twice on his own plan. raise d to 12, down to so, then 6. >> both candidates, they are both talking about jobs, they're going to create jobs and none talk about the reality, which is

that the skills that employees want are these high-twch skills. high grade, masters ph.d.s in science f. that's where the job growth is going to go. we don't have trade. creating jobs they're sort of missing this piece in the middle. don't have the systems to create the kinds of jobs, the education. >> it's government that creates jobs. >> this is this premise. >> it's the training, michelle. >> government -- >> we've had tons of training programs and mostly failures. >> you are the 100% correct about that. almost all the studies, especially the ones that try to train people who have lost their jobs from trade. they don't work and they need to be re-examined about how they do it. >> we have to be able to fill the jobs employers have.

it's not just at google and amazon. as manufacturing companies. schools, these are jobs that have data scientist, computer scientists and we are not training people and government is not çencouraging people to for those jobs. the missing detail, wu it's reality and frankly, neither trump nor hillary are talking about that. >> thank you. >> microsoft, the big earnings report we're watching for after the bell. it has been a better than expected earnings season so far. plus, why is met life getting -- >> no. >> sigh nar area snoopy.

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tech earnings justifyç ied run we saw in technology. christine joins us, along with josh lipton. what should we expect from microsoft? >> so, melissa, when it comes to microsoft after the close, clearly, the street not expegting much. eps growth, 2%. revenue growth flat. investors are going make a beeline to those parts of the business that are growing so the commercial cloud business. that's under the intelligent cloud division. that is what we mean by azure. what's interesting is that we're going to get a new financial metric from microsoft today, too, so we're going to break out

that commercial cloud gross margin percentage, which is critical for investors. could be a real window into the future profitability. last quarter on the call, the cfo said the margin was 42%. investors have been asking microsoft to break out this number. even steve was talking to the press. i think in december of last year and said he wantç ed that numb broken out, soo we're going to get it today after the close. also mr. bond will be on squawk box tomorrow morning. >> also an update on linked in integration. technology, the stocks, have clearly a strong run in the third quarter. the best third quarter they had in years. so, this point is sort of like are they going to deliver the result that justify the run we've seen. does microsoft exemp fi the

earnings? >> we get most of the big names out next year and so far, they've delivered. so now we're expgting about 28% profit growth for the s&p 500. when i was here last week, we were down, so we think we're out of the earnings recession now and i think a lot of that has to do with the names we've seen thus far. right now, text message has the biggest percentage, so about 85% of those names have beaten the wall street consensus, but not only that, they've beaten by thç lowest percentage. about 7% now. typically, weave seen an average of about 3%. so, i don't know if microsoft necessarily -- like josh says, pretty muted expectation. we're looking for 70 cents a share, so more than what the street is looking for, but again as we saw with ibm this week, it's thot necessarily about earnings, revenues for those big

techs. it's about marchgins in their cloud business. the stock got pummelled because their margins won't really tran pyre itrans pyring. you can see a similar outcome with microsoft. >> christine has mentioned ibm. that's why i was surprised at the stat, that a lot of tech companies so far. i think it's early in the earnings season, but i think about some of the big misses we've seen from ibm. from the sbel tells of the world. from ebay. maybe this is something we should be cautious in terms of the -- from microsoft, what are you looking to extrapolate based on what we're going to see tonight? >> well, to your point, some of those names, at least the names so far this earnings season, i broke them. every one of those results have dispinted investors. for different reasons. ibm, the street was dispinted on margins. poor earnings quality. >>.

>> guidance on margins. >> and that guide on the data center business coming down. that was a big disfoiappointmen. for ebay yesterday, gmz. i think where microsoft, intel had to say about the pc business. client sales. that's mostly processes for pcs. that was up about 5 a%. but u on a call when you heard executives talking about their outlook for the pcs, still pretty muted. when we talk about the pc for microsoft, the more personal computing division. we're expecting revenue, about 8.9 billion. it's correct, it would be about 6% down from last year, so we're not expecting much there. we'll see what the report after bell. >> christine, what areç the bi surprises? >> i think again, tech. just because analysts tend to pull their estimates down so far for tech that they do have this lower bar they end up beating, but also the banks. if you look at the two drivers, it's financial, it's tech and those two sectors, by largest

market cap with the largest within the index. anytime you see a company there, there's a more heavily weighted for the index, but again, next week, we get a largest percentage of market cap reporting those big names like app apple, google, exxon. that will solidify are we in a recovery here. >> thanks. of course, josh, we'll see you later on. at the end of a 31-year year relationship. snoopy and met life parting ways. the story is coming up on "power lunch." recently, a 1954 mercedes-benz grand prix race car

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here's your cnbc news update at this hour. donald trump teasing a crowd today, a rally in ohio, over one of the controversies at last night's diabate. the republican nominee had refused to say whether he'd challenge the november leches outcome but here's what he's saying now. >> i will totally accept the results of this great and historic presidential election

if i win. >>ç overseas, there is fresh video of oil fields burning near mosul. they were set on fire by isis nearly two months ago. the ir kill military recaptured them in august. a spanish court today overturning the ban on bullfighting. the decision comes from a heated debate over whether to continue. it has been protected under spanish law and was declared a cultural asset in 2013. and the indians returning, sclooefld cleveland today as american league champions. they shut out the toronto blue jays last night in game five. this will be cleveland's first trip to the world series since 1997. that is the news update this hour. you're up to date, guy, back to you. 90 minutes from closing bell. stocks are lower. the oil market is closing for the day.

>> took 2 off after a 10ç mont high. to still stay close to this $50 level, maybe dip into the 40s. there's a lot of uncertainty especially with no word on opec and also, the inventory yesterday when we see imports changing around for example, not bringing as much oil in, we use more oil here, so people are confused by these numbers and are looking for more clarity. dollar index over 98. back to you. >> all right. thaungs very much. get this. met life is getting rid of snoopy. they will no longer use the beloved beeg orring or any of the gang after more than 230 30 years. this has less to do with snoo snoopy than the company. it has less need to advertise directly to consumers, so this is not met life putting down

snoopy. >> awful. >> i have a 17-year-old dog at home. my fifth presidential debate cycle with you, old guy. he's çnonjudgmental. he just sits there in my laugh. 21 would be pretty old. maybe it's lucky now. >> connected to snoopy how? >> being -- >> is this an age thing? we know who snoopy is, but there's a whole -- >> wrenn rations of snoopy lovers. the peanuts movie just got a reboot. >> snoopy is eternal. >> i remember when the holidays were coming. oh, boy, that means on a certain night, we're going see the peanuts -- >> thanksgiving play. >> shows on another network. >> you can watch it -- >> had a halloween special.

>> snoopy is up for grabs for another product? >> what would snoopy be the representative of? >> an airline because he sits on his dog house. >> how about a line of pillows? soft and cuddly. >> i would suggest a company that reallyç needs help. got a very, very bad reputation. >> epipen? wells fargo. froms. >> dog food. he's known to love eating. >> did you know snoopy at all? >> buffalo dung, no thanks. >> any way. moving on here. will sniff out fraud. >> what they think of this election and these candidates. that's next. ♪ look out honey...

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welcome back to "power lunch." 35 minutes after the hour. thanks for joining us. now that the final debate is in the books, is there anything the candidates can do to change voter's mind sns let geets

insight from two of the others. ma len yals that has ari known. july, editor of bustle and she supports by the way, hillary clinton. and sheena, she has her own media consulting firm, a republican former chief of staff for karl rove. i want to start with you. your take away from donald trump last night. did he lose your vote? >> first of all, thank you for having me. no, he did not lose my vote. i will say that he won in two areas that i did not think heç won in previous debates. first of all, optics. i was thrown off a little bit in the first and second debate by the interrupting, pacing back and forth on the stage in the second debate. i thought he did a really good job of being focused. clear, calm and collected last nigh. that was something that really appealed to me. secondly, messaging. i really like that he hammered home last night on the fact that hillary clinton has had the

opportunity for the last 30 years to implement a lot of the changes she's been saying she's going to implement and i think that's the winning message forth in the last however many days we have until the election. the fact that she has had an opportunity to do this to that i can mako this change and has not done so. julie, i'm going to take a stab you did not switch your allegiance. is that a good guess? >> it is. you are spot on. >> we all know, sheena likes trump. you like clinton. so, case closed. move on to something else, which is this. when secretary clinton,ç now, u have a student loan yet? >> no, i don't. >> it's a huge deal. obviously and secretary clinton has preeted her claim that shemts to do free, public college, which sounds great. do you believe those giels are

achievable? zwl i think she's laid out very particular plans that i know have been vetted by a lot of people who are more expert thons than i would claim to be, but i believe that initially, she's saying that all families who are making an income of under $85,000 would have access to education for four-year public universities and moving on, i'm not sure what the timeline is, but that number would be -- have a household income of over 125, so it's a step by step thing. she would have all community colleges be free of charge. >> i'm just wondering what a younger person thinks. wow, we'll never do it, but maybe we can get close or do we say yeah, we're to be able to do that. >> i think a loft what happens in these debates and political candidacy in general, you sort of put, you shoot for the stars. i know if that's going to be achievable in a four year term, not sure, but she has laid out tax plans to tax the wealthy in

doing so, plans to finance that plan and i think there's a lot of hopefulness. among them. she's got 68% of the vote compared to donald trump's 20% accord tog a "usa today" poll last week. i think she has a plan in responding to. that's a huge problem for us. >> js doufl like a voice in wilderness when talking to your friends and saying you know, i support donald trump and here with the reasons. do you feel like got ostracized or do you feel people are really keeping it quiet? >> you know, there are a lot of trump supporters keeping it quiet.ç i'm in a unique position because i did spend some time in a republican administration and i am very close with a lot of my

former bush cheney alalumni, bui flif los angeles. i'm vold in a in beverly hills. i've heard different things from him. the overarching thing i'm hering is they they aren't happy with either candidate. but at this point, we have to work with what we have. i had somebody today say i don't really support hillary clinton, but i'm voting for her and i've heard the same thing on the other side. i don't support donald trump, but i'm voting for him. so the overarching theme i'm hearing is that nobody's really happy with either candidate w. n but they are brand loyal, we are brand loyal to the extent that we believe in somebody cease story and that's where donald trump has the ability to capitalize on the messaging. cf1 o had time. i'll codo the same thing i did yesterday. can't lump everybody into one group. can't say the democrats, the republicans, the tall people,

whatever. but that's for a different segment or yesterday's. good luck with both of your candidates. >> coming up, we're going to take you inside the fastest growing private businesses in america and they make chicken salad. it's good. plus, union pacific is down big today. it's about time for the railroad stocks. the trading nation team goes off the rails, next. hence the music. >> crazy train. ♪ the lexus rx, rx hybrid and rx f sport. this is the rx...elevated.

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one of the companies in america sells. chicken salad. you can call it a disruptive chicken salad company, we are here at the conference celebrating the fastest growing private companies in america. now one is called chicken salad. it was launched by then a single mom, stacy brown, in 2008, who says she was chicken salad obsessed and started selling her

own recipes door to door as a way to make money for herself and her three kids. >> the phone was ringing off the hook, then one day, the health department called and let me know it was illegal to sell anythingç that you have cookedn your home to sell it. i had to make the decision whether i was going to go in a different direction or take the leap of faith and open a restaurant. that only served chicken salad. >> it turned out a lot of other people loved it, too. stacy's contact has taken off. she has 62 locations in eight different states. grown more than 6,000% in the past three years with sales of more than $90 million in that same time period. stacy is number 37 on this year's list. >> we have 15 different flavors of chicken salad we make from scratch every day. gourmet soup, fresh salads, desser desserts, but we are a safe haven for chicken salad lovers. >> she plans to continue to grow

in the next few years to come, opening between 30 and 40 new stores in the south and midwest for now and more broadly, these companies have grown an average of 490% in the past three years. creating 640,000 new jobs. back over to you.ç >> chicken salad chicken. i like that idea. thank you very much. time for trade nation as share of union pacific sink after earnings. might be telling us about the american economy. team today, david -- all right, david, some people like to use this theory, basically that if if transports do well, the market will do well and vice versa. a, do you believe that? b, if so, is unp telling a bigger story? >> not telling a different story. throw the out the window. in general, we found the trucker rs much better at telling the economy. transport, the rails in general, i mean, you're look at a big

agriculture. a big you know, sofrt oil sort of weight there. they're really dependent on that in general. look at the truckers. they'll tell you what's going on in the economy. they've been a mixed bag. if you look at the charts, are up 50%, some down, so just like the economy, the truckers are cig that willing the economy's a mixed bag. different reasons. a lot of different sectors, i can tell you, mostly because of financial engineering and because of fed backstop, so be kafrt careful and tread lightly. i am still relatively caution on the overall market and i'm going to kaep that out there. i don't believe that the transports right now or the rails in particular are telling me something different than they did a year and a half or two years ago. >> okay. do you agree? >> well, is the economy coming off the rails, sorry for the bad pun, but that could possibly be.

one interesting thing when you look from a global perspective, we are starting to see cracks in global growth. china, we had a missing production this week. austral australia, a massive miss on employment. the two central bank governors this week, mario draghi and governor from canada came out with really downcast forecasting there. their growth. canada said trade isn't a structural slowdown on the some warn signiing signs there. really going to start to fall off a cliff trks too early to tell. in some ways, it could be a freeze because of the political situation. maybe the investors and the market general, just wait tog see a full resolution and perhaps, we get the man coming back, but get a little warning sign. >> laura, david, watching for warn signs from the rails, guy, we appreciate that. thank you very much. for more trading nation, the little segment that could, go to

tradingnation.cnbc.com. right now. are there just too many other things for people, especially young people, to do with their time? that story is next.

. have we reached peak sports? sunday night's colts versus texans game reported dismal earnings. what is the real cause of the major decline and will it keep up? let's bring in the editor at large. so great to have you here matt. we know these competing reasons. there is netflix and hulu. is this an nfl problem? what we have seen in the same period 2015 and 2016ç is that college football viewing is