the quality surpasses everybody else. sto stock is still expensive though. >> foot locker never gets out of the penalty box. they don't follow through. >> down 3%. >> people are talking about -- >> thanks for being here. >> i didn't want to talk -- i wanted to mention sky works, thursday, that will determine -- >> and corpsville. >> yes. that will determine apple. >> guess what will determine what the "power lunch" starts right now, whether we stop talking. bye, guys. >> field goal and then another field goal. >> still talking. i'm melissa lee. here's what's on the menu. the october surprise, a fallout from the fbi e-mail bombshell just eight days until the election. in need of a reboot, why one analyst is calling for apple to seriously step up its tv game and one fast food giant came up with a whopper of a halloween costume with pictures you got to see. "power lunch" starts right now. >> all right.

the dow is ending october with a whimper. index, little change today, up 16 points now. nike, the big drag, chevron, the only dow name up more than 1%. that's despite a big move lower for oil, crude hitting session loew lows. we want to call your attention to brocade, that stock spiking on reports the company may be putting itself up for sale, digging in on this and bringing you more as it develops. tyler. >> welcome back. i'm tyler mathisen. welcome. here is what else is happening at this hour. u.s. consumers picking up their spending in september, due in part to strong demand for vehicles. speaking of vehicles, fire crews investigating a blaze that broke out at ford's world headquarters in deerborn, michigan, earlier today. no one was injured, thankfully, there. cleanup crews working feverishly now in central italy following sunday's magnitude 6.6

earthquake. several quakes hitting italy in recent months. justice department getting a warrant to review newly discovered e-mails related to hillary clinton's private e-mail server. eamon javers with the latest from washington. >> hi, tyler. talking to some officials about this, this morning, trying to figure out where we stand. and what i've learned is that the fbi continues to examine these new e-mails. i talked to one official who said the expectation is they could learn something fairly quickly. they could do a preliminary scan fairly quickly within days, but not clear whether the fbi would make the results of that preliminary scan public at the end of this week or not. it is going to depend on what the fbi director james comey thinks is in the national interests later on this week. they're in a very tough position, criticized from all sides now at the fbi. meanwhile, this is all roiling the presidential campaign. vice presidential candidate tim kaine was out on the campaign trail talking about it today. here is his take. >> the fbi put out this very unusual letter, very

unprecedented, they're not supposed to talk about ongoing investigations, and they're also not generally supposed to put out politically sensitive stuff right before an election. but 11 days before the election, the fbi said, not that anything's being reopened, the fbi did a massive investigation and concluded in july that no reasonable prosecutor would find any additional need to move forward than case. >> so the question is whether this e-mail that has been newly discovered lends any evidence or reason for prosecutors to reconsider their decision here. for the fbi to consider the decision here. that's the $64,000 question. we may not know the answer to that. we may not know it before election day. that's what's got democrats so flummoxed for their part. kellyanne conways with was on " box" this morning.

>> thank you very much. let's bring in former assistant u.s. attorney don smalls and the washington post's national security reporter ellen nakashimo. was this whole investigation bungled from the first and why didn't it go in front of a grand jury? >> well, my sense is it was bungled at the inception. i'll tell you why. the new york times back in march of 2015 broke the story about the clinton e-mails and her private server. okay. and my understanding is that immediately the fbi launched an investigation. and as is the right and that's their job. but the thing that seems to be neglected is that the fbi has an investigation, a major investigation, it is a huge case, and they need to get the lawyers involved. and the people who usually

direct the fbi and who are supposed to direct the fbi and i believe do is not the fbi, but it is the justice department lawyers. so the attorney general, the -- it is her and her surrogates and it is usually the u.s. attorney that the fbi turns to do get assistance to get a grand jury impanelled, to get all the investigative tools, so with the grand jury they can use the subpoenas, able to get testimony, done in secret. >> sorry, i want to get to ellen. you're in the thick of it there. what have we learned in last couple of hours? what is new? do we know anything more about the fbi's goals or methods here? >> i think we still don't know whether any of these e-mails have any information that could be considered classified, which is what the underlying clinton investigation was about.

we don't know to what extent these are duplicate e-mails, of the e-mails they gathered before, and we don't -- i don't think they have that information just yet. i don't think it should take too long to find out how many are duplicates, but to the extent there are any that do -- might have classified information, that's what could take longer. weeks in fact to determine. >> mr. smoltz, are you saying -- i want to make sure i'm understanding what you're saying, it is your sense that the justice department, the professional attorneys there were not involved in any way working side by side with or alongside the fbi? we certainly know that bill clinton had a meeting, clearly an ill advised one with the attorney general on the tarmac in arizona in the late spring or early summer of this year, which kind of took her out of the process. but explain what you're saying

here about the relationship between the justice department attorneys and the fbi and why you think that was flawed. >> i think it was flawed because the way this works is the fbi is supposed to do the investigation. and it does investigations and does a good job. but in a criminal environment, criminal investigation, that's what this was, to see whether -- what violations if any occurred, you have to use the investigative tools that are made available. and that usually, the hand maiden of the prosecutor, when it comes to investigation, is the grand jury. and with the grand jury, you can subpoena witnesses, proceedings are in secret, you can subpoena documents. you have the power to compel the production of evidence. and i didn't see that used at all in this investigation. and while there is certainly apparently justice lawyers in the background advising the fbi

what it was supposed to do, not supposed to do, i'm really struck by the proposition that the grand jury was not utilized here by the fbi at all. >> okay. >> and that's -- wait a minute. let me just finish. >> sure. >> that's only because the justice department apparently repelled that authority. now, if you read the wall street journal, which i did this morning, before i came here, you see there was a tremendous amount of -- because they felt their hands were being tied in conducting this investigation. they weren't able to get to the documents. and witnesses. i mean, and i think that's so. look, i don't understand here what the fbi agent is -- what the fbi head is doing out announcing the results of his investigation publicly? i've never known that to happen in all my experience and i've

been a lawyer for 55 years or whatever now, and i never have seen that happen. >> all right, we do have to leave it there. don smoltz, thank you, ellen nakashima, thank you as well for being with us today. one of donald trump's biggest billionaire backers, a man we rarely hear from, making the case for a trump presidency today. kate kelly is here with more on peter teal's comments. >> teal today said that trump's catastrophic rhetoric on topics like the economy and foreign policy resonated with him. he noted that the hard-line has been devastated by the loss of industrial jobs, perhaps due to trade packs and much of the country missed out on the economic prosperity that tech entrepreneurs like himself have enjoyed. he said hillary clinton's no fly zone in syria and generally hawkish positions could be a greater threat to the country than trump's temperament, questioned in terms of its risk for the nuclear code holder. as for trump's inflammatory comments on women, muslims and other groups, he criticized the

groping talk and the admission test for the u.s., but he said ideology is of the essence. >> i don't agree with everything that donald trump has said and done. i don't think the millions of other people voting for him do either. it is not a lack of judgment that leads americans to vote for trump. we're voting for trump because we judge the leadership of our country. >> he described the conformism of silicon valley where conservatism like his own is barely toll rate. tolerated. describing his stance on gawker, which he effectively pushed to bankruptcy by backing litigation, he said politicians should probably be held to a different standard than tech executives. yet he also said that the media takes trump too literally, but

perhaps not seriously. which apparently was a phrase originally coined in the atlantic magazine. >> clearly this was a planned speech that he gave. he was using the teleprompter for most of his comments. did he comment about that happened in the past 48 hours or so? >> he didn't. he had prepared remarks about 20 minutes long. and then he had a q&a supposed to last for 20 minutes it was actually significantly longer than that. the q&a handled by a representative of the national press club in d.c., the venue, supposedly including questions from the audience. our own questions at cnbc were not collected, despite efforts by our producer on the ground. they did to be fair address some of the topics we wanted to, but not the latest justice department or fbi e-mail investigation. so he didn't talk about that. only talked about hillary clinton on the merits of had her candidacy. >> the one thing that thiel, more of a comment than a question. we all travel a fair amount. one thing that he hit on, which i thought was really right was

that as we travel, last month or so, i spoke it a lot of people that are trump supporters in california and virginia and other states, and it is sort of -- many feel like they're less for trump than they are against d.c. and what they view for the establishment. >> i think that's true. i think that's true. >> it is not like i love trump. i'm angry with d.c. that's what he's saying. that's why i think that message may have struck home with some. >> i think that's very much what thiel was saying. he said, you know, if some ways it was too bad that bernie sanders was not the democratic nominee because sanders with as a change candidate. he stopped short of saying he would support sanders, but got where the country was going in embracing the two candidates that were initially seen as somewhat fringe. but a break from the political dynasties of the clintons and the bush family. >> he called it a coastal bubble. >> yes. and he talked -- this was interesting too coming from a multibillionaire. talked about the rest of the country not participating in the

wealth and opportunity we have seen in silicon valley and in washington and inside the beltway. >> thank you, kate. >> thank you. >> another day, another deal. bankers and lawyers getting paid because it has been a record month for m&a. but why? we're going to find out with more than a trillion dollars of investment advice coming your way. enjoy your phone! you too. (inner monologue) all right, be cool. you got the amazing new iphone 7 on the house by switching to at&t... what??.... aand you got unlimited data because you have directv?? okay, just a few more steps... door! it's cool get the iphone 7 on us and unlimited data when you switch to at&t and have directv. will your business be ready when growth presents itself? american express open cards can help you take on a new job,

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shares of brocade communications soaring about 20%

on reports the company is in advanced talks to sell itself. joining us on the cnbc news line is matt robeson. great to have you with us. >> great to be here. >> why would a company want to pick up brocade? what does brocade bring to the table? who might buy them? >> couple of things. brocade's got very strong free cash flow yield. so it is imminently financeable. and they got -- since they purchased ruckus, they have industry leading technology, which is relatively high growth. and they have in the data center, they own -- own is a strong word -- but dominant player in fiber channel. fiber channel gets a bad rap sometimes, but it is the highest performance of storage networking protocol. and it has got some legs to it. not real strong right now because it has been the -- the

data center has been a tough market lately. >> right. >> there is a new generation coming. and it is potentially going to yield even more free cash flow. the problem with brocade historically is that that fiber channel used to be two-thirds of their business. now since they bought ruckus, only about half. but it is dominated by oem channels, which means strategic would have to -- what they bought brocade, they would be selling to their customer, who would be -- it really fits, i think, in a private equity scenario. >> so you're thinking private equity is the likely buyer of this? >> yeah. the oem channel. >> all right. we have to leave it there. thank you for your time. well, that could be a deal, but otherwise, it already has been a record month for deal-making. latest one, the megadeal in the energy space. general electric combining its oil and gas business with baker hughes.

morgan brennan has the details. i did not say buying baker hughes because it is an odd structure. >> it is much more complicated structure, not an outright deal. you can make the argument this is why we have seen shares of baker hughes falling today on the heels of this news. the new baker hughes will combine the world's largest oil field equipment manufacturer, g etch, with the number three oil field services field baker hughes to create a company that is second only to schlumberger. ge raising $7.4 billion to pay out a one time special dividend of $17.50 to those shareholders. the oil and gas chief lorenzo simonelli will lead the company and jeff immelt saying the structure of the deal allows for flexibility around capital allocation. >> let's say the industry remains tough, this is still value accretive to both

investors in a tough oil price environment. if the pricing gets better, it allows us to benefit that from that as well. it is a very diversified portfolio with short cycle and longer cycle operations. i think it gives us a chance to weather the cycle better. >> saying it is the right time in that cycle to invest in oil and gas and that the transaction assumes a slow recovery of 45 to $60 a barrel for crude through 2019. so the deal is expected to close mid-2017 and analysts don't expect the same regulatory assistance we saw to baker hughes with halliburton earlier this year. there is little overlap here and this would create arguably a more formidable competitor to schlumberger, and halliburton. >> i get that they're being very careful and not calling this an acquisition. but isn't that what it is? >> it is -- >> ge will own 62% of this

company, it is going to be called baker hughes, a general electric company. baker hughes will control 37% of it. that sounds to me like somebody bought somebody. >> and on the conference call, you had -- >> may not matter. it makes it a very neat little package for them to spin off into their own separate publicly traded company. >> and this was something that came up in the call with analysts asking questions about this. they said the way this deal has been structured, that because that they can actually spin it off essentially and do that without having 80% ownership. you can make that argument here. the other thing i note, we could see a real flurry of m&a activity within the space new in flight of the fact. they're going to be a big competitor. >> names like national oil, they're in a similar space, h halliburt halliburton, ge oil and gas center in oklahoma last month. 16% of the revenue is now oil and gas. it is going to -- >> general electric. >> going to go up.

if you own shares of companies that get bought, i guess with the exception of baker hughes, usually a good thing. do all the deals mean anything more macro for you and your money? your next two guests combine to manage more than a trillion dollars. jim acall, kate warren. jim, a lot going on. we don't talk about deal-making a lot. as a macro huge global investor, do you care about deals? do they signal anything to you or just, like, kind of nice little one off headlines? >> i think they must signal something. firstly, i say this flurry of deals is quite defensive. ge and baker is about gaining scale and saving costs in a difficult industry. i think some of it is interest rate driven, driven by the fact that capital is pretty cheap. but i think the main point i would make here is that it suggests that the corporate management involved in all the

deals thinks that acquisition is a relatively cheap way to buy assets. and that supports my contention that the equity market is still pretty decent value and buy on setback. that's the main signal i would take out of it. >> kate, do you agree with that. does this signal things are on sale, let's snap it up or signal, hey, interest rates are probably going to go up, we can still sell debt cheap if we need to. a special situation. >> i would agree that it signals that equities are attractive. but i would say that the reason we're seeing the flurry is the expectation that interest rates will go up and that deals will get more expensive in the future. the second thing is it signals corporate management is a difficult environment for sales growth. you're not seeing that. but in other industries where there is growth, it is very slow. and management is looking for ways to grow earnings, so that

is actually a positive if they're able to do so. supporting higher stock prices in the future. so i would concur it says this is a time to be buying stocks, but it also says they're struggling to get the earnings growth that is needed in order to support higher stock prices in the future. >> you like and own schlumberger. how do you think they stack up to what would be the new baker hughes? >> well, i think that we have been seeing some consolidation in energy services. schlumberger is well positioned as the largest, they bought a company earlier this year, cameron. is basically they put together a bigger company. they're also more global and they have more business outside the u.s. where profits tend to be higher and growth is stronger. so we continue to like schlumberger and used the pullback in oil prices that is happening as a result of the failure of opec to once again reach any kind of deal as an opportunity to add -- that has a pretty attractive long-term outlook. >> jim, speak to kate's point,

which is where i thought you were going a moment ago, her point that the companies are often getting together because they can't create organic growth. so they're trying to acquire it. how big a problem is that in the economy broadly or do you see it as such, that it is very difficult for companies on their own in some industries to create organic internal growth? >> in some industries, that would be a problem. notably the oil and gas industry. so that would be true of ge and baker. however, i would point to the general deflationary tendency in the economy with technology making things cheaper with globalization, meaning that an ultranation of production, meaning that goods are -- than they used to be. that tendency is partly what makes nominal growth harder to achieve. the gdp numbers last friday and the big news item was 2.9% gdp,

that's a good number and i think it would be wrong to overdo the it is hard to get growth argument. it a plies to some sectors, but not across the market. >> all right, guys, thank you. jim and kate, we appreciate it. a news alert now in d.c. with john harwood. >> president obama appointed james comey to be director of the fbi and, of course, james comey is in the eye of the storm since releasing that letter to congress saying he's looking at additional e-mails related to hillary clinton's case. white house press secretary josh earnest just spoken on the case at his daily briefing and he tried his best to be neutral. take a listen. >> i'll neither defend nor criticize what director comey has decided to communicate to the public about this investigation. what i will say is that the department of justice, in our

democracy, is given the expansive authority to conduct investigations. the president believes that it is -- there are a set of significant institutional responsibilities that officials at the department of justice and the fbi must fulfill. >> now, josh earnest went on to say that the president believes james comey is a person of high character, and also that he does not believe the fbi director is attempting to influence this election in any way. so president taking a hands off stance to this controversy. >> john, thank you. john harwood joining us from d.c. with the latest from the white house. now, this hurricane is giving its customers a whopper of a halloween scare. we have that story straight ahead. ♪

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welcome back. your money and the markets now are doing a whole lot of not much. the dow jones industrial average up a touch. >> always a fascinating market. >> it is. there is some stocks that go up and some stock goes down. every single day. but overall, stocks are on track for the worst month since january. hey, bob. one month has got to be the worst month of the year, right? >> yep. it is january, believe it or not. it is this one. it is a quiet end, brian, to the month. take a look. small cap stocks like the russell have really had a tough time overall, down 5%. that's the worst since going back to january for the s&p.

as far as sectors, good thing banks had a good earnings report. they helped save the markets overall. tech generally earnings pretty good overall. apple slight disappointment. consumer discretionary had a hard time. the retailers were terrible this month. health care, forget about it. biotech, pharma, all down on regulatory concerns and drug pricing concerns. and the reits and telecoms, all the rate sensitive stocks were hit badly on a rise in interest rates. look at the drug distributors. remember what happened to mckesson on friday, talked about hour regulation and competitive drug pricing coming down the road. they all drop like a rock. this has been a terrible sector throughout the month. how about volatility? october was supposed to be the most volatile month of the year. very little happened, little volatility on friday. this has been kind of a dud in terms of volatility and not a typical october at all. when you had this kind of lack of activity, all the asset managers, the trading type firms have a tough time, all these firms have had a tough time on

concerns about people going to indexing overall, so very tough time for any of the asset managers. how about sallie mae go away. we're up 3% from may to the end of october. that's not working. now we're going to november. this is the start of the most profitable six months of the year traditionally. back to you. >> all right, bob, thank you very much. as bob mentioned, october has been a pretty rough month for the bulls. however, some stocks go up and some go down. some names have done really well are akamai, netflix, booming, and the gap. all up more than 20% just this month. >> happy halloween, everybody. it is that time of year when you can dress up and pretend to be someone else for a day. i do it every day. including this burger king in -- it is a king, a burger king in queens, new york. giving its customers the scare. the fast food joint dressed up as the ghost of mcdonald's with

super sized white sheets, but reassuring patrons with a sign saying just kidding, we still flame grill our whoppers. mcdonald's had this to say about the prank, not a frank, they don't serve franks, who wouldn't want to masquerade as mcdonald's for halloween when we're serving up treats like mccafe beverages, apple pies and our world famous fries. >> they don't serve franks. do you have to change your name when you go in? >> what? >> i misread it. franks for the memories. >> franks? are you franks? sorry, we don't serve you here. >> that's so lame. >> the joke, the mushroom walks into a bar, the bartender says we don't serve your kind here, and the mushroom says why not, i'm a fun guy. >> a new plan to take him on. that's up next.

time for the "your business" entrepreneurs of the week. meet the faces of main street in minnesota. a mexican immigrant and owner of la fiesta emporium, abdel alahi omar. watch "your business" sunday mornings at 7:30 on msnbc.

hello, everybody. i'm sue herera. here is your cnbc news update for this hour. hillary clinton leaving new york this morning, unaccompanied, by top aide huma abedin. she did not respond to shouted questions as she boarded her campaign plane. she is bound for ohio where she has two afternoon events scheduled. turkish police detaining the chief editor and at least eight senior staff of an opposition newspaper as the government continues to crack down on descenting voices. journalists and members of the opposition party gathering outside the newspaper's headquarters. pope francis marking the 500th anniversary of the protestant reaffirmation. it is the first time the pope commemorated the anniversary. a portland, oregon, zoo held the annual squishing of the squash. the elephants pulverize a few

large pumpkins, stomping on them, eating them and occasionally rolling in them. the zoo is recognized for its asian elephant program. happy halloween. that's the news update this hour. back to you. >> same to you, sue. a ton of deal news to tell you about, ge and baker hughes. one thing they all have in common, shareholder activism. now some ceos are pushing back saying that shareholder proposal process is being misused. and detracting from creating long-term value. joining us are two leaders from business round table, they have a new proposal out with solutions for the shareholder process. john engler president of the business round table and former governor of michigan and john hayes is ceo of ball corporation. gentlemen, i'll have to be careful and call you mr. hayes and mr. engler because you both have the same first name.

i'm curious, i understand, john hayes, why this new initiative and i want to get to some of the details in a minute, but i note that last year of all the shareholder initiatives, 90% of them were voted in management's favor, so how big a problem is this anyway? >> it is a problem because i think many of the rules are outdated. you just think about three or four things that we're trying to promote these days, number one, we have got to replace the $2,000 minimum threshold because the vast majority of proposals brought on by very small investors are not being voted in. number two, increase the holding period from one year to three years of those submitting the shareholder proposals. need to enhance the disclosure of the proponents that are putting the proposals forward. and last but not least we have to strengthen the resubmission thresholds of these because right now if you only get 10% of a positive vote in any of these proposals, they can continue on

indefinitely. >> in other words, just for those that are less familiar with this as -- than you are, you would say you got to have more than $2,000 at stake in this country, in this company to bring something. you have to have been a sharehold shareholder, that feels a little like a disenfran chi chises peo who want to affect change and do it quickly. >> today a serious investor could get by owning own $2,000 worth of stock in a multiwell dollar company. that's not very serious in my mind. i think what we're saying is that when you take a ceo like john he has a john hayes and maybe using 25 to 45% of their time cut a deal with this, it is a bit of a misallocation of a ceo and management focus and priority. we want to create shareholder value over the long-term and that doesn't get done responding

to what i would call in some cases nuisance proposals and other cases really agenda proposals, be they social, some type of activism, maybe around environment, maybe around some kind of public statement that they would like to make. so let's get ofocused on the rel return for the invest and share ho holder, pension fund holder, not take this time and get it off the focus. >> not to bog down in process, but how would this work? in other words, would it -- would all of the companies that are memberses of the business round table have to accept this? how would it -- how would it then get rolled -- if everybody agreed to it, how would it get rolled out company by company by company. >> this is something we're asking the s.e.c. to take a look at. looking at things that are material to the company and things that are zrak distractid getting in the way. it is needing to be updated.

this hasn't been touched in many, many years. so we want to get the marker down. change of policy at the s.e.c. but they have this within their ability to do it. they have other things over there too, but this be with a nice thing and at a time when we ought to be talking about economic growth in the nation, here is just a little distracter we can clean up. >> do you think, mr. hayes, it is taking some of these ceos up to 40% of their time dealing with these quote nuisance initiatives whether they come from activists or smaller investors, that's number one. and number two, how do you think -- do you ever think activists have been a force for good inside of companys? >> let me start by saying first and foremost, it can during the eight week proxy season that the governor mentioned, it can take up a meaningful amount of one's time as you engage and get involved with your shareholders

and talk to them on a regular basis. and educate them on why a proposal is good or not good. secondly, with respect to your question about activism, absolutely. we are a free market economy and shareholders ought to be speaking up for what is important to them. what we're trying to do is make sure that you are a material shareholder in a company that is focused on the long-term interests. when you get the materiality right with the long-term nature of what we're trying to do, that's what we're trying to promote. >> how would you define activists in that -- does it have to be a certain time frame? i would think most people would say a 10%, 11% stake in a company is a sizable stake in a company and therefore they do have the right to a voice. but does it go one step further in that you think that they should be long-term holders of the company? how exactly can we differentiate the likes of let's say a nelson peltz who says he's a long-term investor in companies but known as an activist investor versus

let's say a pension fund which has been very active for a pension fund. >> we're talking about corporate governance, we're talking about the long-term development of corporate governance. when you're -- it lasts for a very long time and so i think the two examples you gave are great examples that if people are focused on long-term, then the corporate governance mechanisms ought to be promoting and focused on long-term as well. >> just to quickly before we let you go, ball corp., manufacturer. how is the economy? >> okay. okay, not great. i do think that, you know, in this political environment you're hearing a lot about bureaucracies getting in the way of growth and development. we have tax issues we need to deal with. we have immigration issues we need to deal with. we got trade issues we need to deal with. the world is built upon companies selling their product. and right now with the middle class, you see some comeback a little bit. but not in a way that ought to

be certainly in year six or year seven of recovery. i wish the economy was a little stronger here in north america. overall, it is not too bad. >> governor engler, is american business going to be all right no matter who wins the white house? >> i think so. i'm looking for better days ahead, new administration, first 100 days, eight, nine months, i think we'll be looking up either way. clearly we have issues that john hayes just detailed some of them. we just need to get off the dime and start making some decisions. the departure of senator reed will be the best news for american business regardless because senator schumer will be far more willing to engage and work out on what transactions need to be done to get america growing again. all about growth. we don't have enough of it. >> thank you. governor john engler and john hayes. still ahead, is apple tv in need of a serious re boot? our next guest says yes. first, to rick santelli at cme

with the bond report. >> for the bond report, we'll start with the dollar. interesting day. look at the intraday dollar index. the reason i bring it up, a little before noon eastern, see the big drop? look at a year to date chart. notice where we close last year, 98.63. that's where that drop broke from investors highly aware of unchanged on the year. if you look at one week of 10s, high end of the range. we settled lower last tuesday. but if you open the chart up to may, interesting, see the left side, that's 186 top. that's where we closed thursday. couple more months, march and april, two key tops, 192, 198. many say that's what we're following as we continue to soften but stay at the top of the range. guess what? "power lunch" will be right back in two minutes.

it seems apple is moving forward with the plans to -- the tv industry. a new app pulls together multiple video services and puts all the content in one location for the users. not everyone is impressed with apple's announcement. let's bring in andy hargrave who believes the company's tv strategy is flawed. and to quote your report, in need of a serious reboot. great to have you with us. what strikes me is that it seems like what amazon has already done, what hulu has done, so many services out there that sort of -- i don't want to say collate but gather autopsy the a apps and become the front end for the content. >> that's a good concept if you can become the front end. the challenge that apple has here is it is really hard to become the front end when you don't have the services that people watch. without netflix and amazon and youtube as part of that app, i don't think anybody is going to

tune in. >> are they too late to the game? if they had done this five years ago, could they have had a fighting chance? >> yeah. i think that's part of it, in terms of the strategy they're implementing right now. it is late because those other services have already aggregated a really significant amount of usage and consumer attention. hard to steal it away from them. i think given where we are now, there is still time for them to have an effective video strategy, just has to be something different. has to be their own service and something with scale. >> they have those things. i just bought a new apple tv this weekend. i'm an avid user of it. they have netflix and hulu and all these other apps. what do they need to do better then in. >> they don't have it inside of the tv app that they just announced. >> they have a stand alone new app, but then the other apps are there, they look like a phone. >> the challenge with the tv box

is it is just essentially a commodity business. i would argue their box is no better and maybe worse than some cases like roku. >> what about the video game aspect? many of the video games, my daughter plays on the ipad, whatever, are now available through apple tv apps. is there a big video game? you can even buy a controller that sort of looks like an xbox controller for your apple tv. is there a video game opportunity that maybe we're understating for apple? >> i don't think so. i think if we're looking at the size of the market, the video business is vastly the bigger market on a global scale in particular. you get into the console, kind of competitive business, what you're going to do is lose out to the dedicated guys on the high end. you can have an opportunity with casual games. on the television, that's just not that big of a market. and nintendo's performance in the last couple of cycles has probably shown us that. >> in terms of your model, if apple doesn't have any success

with any sort of tv product, does that impact it at all or just never made it into the model to begin with. >> more of the latter. hasn't made it into the model. the strategy hasn't been effective. so for us, yeah, video, any success in video would be upside for sure. >> andy, thanks for joining us. appreciate it. andy hargraves, pacific crest. on deck, opportunity for you to make some money. it is your daily dose of street talk, four big stock calls we think you need to hear about every day. these names are coming up. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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time for street recommendad to know about. starting off with advi. the overhangs will continue to grow, credit suisse thinks that

humura will hit the market in 2022. >> you worry about any big biotech or pharma company with original rights and pricing power. will it hold up if we get a significant change in washington. >> right. >> second stock is john deere. up graded to outperform. they say the large agriculture equipment declines seems to be slowing down. we're approaching prior cyclical bottoms and that high horsepower equipment sales are near 40 year lows. they believe the used equipment market should take less market share away from the new market and brazil is showing signs of life, their target on john deere is $100 a share. about 13% to 14% upside from here. >> next up, raymond james upgrading leonard. last week, they didn't yield better offers for the company. it looks like leonard deal is still on. the analyst adjusted both

ratings. it is a strong strategic move. >> think about lenner, nearly every analyst we talk to and you probably do on fast money, they love lenner. but the stock has done nothing. same price it was two years ago, getting no love. finally, gtt communications, your small cap call of the day. drexel hamilton out with a note, not upgrading the stock, but the company should benefit from the century link level three deal which also happens today. the analyst says that deal may be a distraction that could benefit gt t because they compee directly with those companies. and adding sales people, et cetera. this company, they're buyers of the stock ahead next week's results. $28 target on gtt, about 25% upside. >> down 1.1%. i wonder if there is any thinking it will get left by itself. >> maybe the combined company won't be a distraction, a colossus.

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trump closing the gap. is it all about the e-mail scandal or something else? oil, tumbling on doubts about any opec production cut. can the cartel really come together? and the battle over sports tv ratings. billions on the line for disney's espn as the second hour of "power lunch" kicks off right now. i'm melissa lee. let's get a check on the markets. two hours until the closing bell rings. stocks are steady on the final trading day of october. looking ahead to the fed meeting and the elections. little changed.

this has been the worst month for stocks since january with the s&p down more than 1.5%. tyler? >> melissa, thank you very much. welcome, i'm tyler mathisen. big movers at this hour. shares of brocade leading the way, rallying 20% on reports it is in advanced talks to sell itself. as brian mentioned, oil plunging ahead of the close in 30 minutes. crude down as you see there, about 3%. let's go to courtney reagan at the nymex. >> we have about 30 minutes or so until crude markets settle out. it has been a steady decline throughout the session. crude hovering around the $47 a barrel mark, on pace for the worst day we have seen here since about september. there are several factors at play. of course, the lack of the opec members to come together and actually agree to a production cut is probably the biggest

factor. but we also have the u.s. government coming out and saying, guess what, those monthly crude supplies in august were higher than july and higher than those weekly numbers that we have been getting. that is bearish, of course, for the price of oil. strong dollar and pretty weak n equities. crude oil down about 7%. a lot of traders saying there is not a lot, giving support here to the price of oil like we normally see. back over to you. >> court, thank you very much. also this hour, hillary clinton getting ready to speak in courtney's home state of ohio. this hour, she is in kent. then headed to cleveland where the world series resumes tomorrow night. donald trump speaking now in grand rapids, michigan, as you see there. john harwood joins us from neither of those places. he's in washington with the latest poll numbers just eight days to go until election day. getting closer, john. >> getting closer, tyler. waiting to see whether or not the revelations from james

comey, the fbi director, in the letter he wrote last friday are going to change the poll numbers in the race. hillary clinton has been leading for a long time. prediction markets had her as the overwhelming favorite, but now we have a new dimension to the race and even before that disclosure, donald trump was consolidating some republicans and drawing a bit closer to hillary clinton. he's just spoken a few minutes ago, he gave a shoutout to director comey who he had been very critical of for his decision not to prosecute hillary clinton saying he respected the fact that he has decided to issue that letter and indicate that he's taking another look. but the poll numbers so far have shown a narrowing of the race already. look at these national averages, real clear politics, the average is down to a little more than 2 percentage points. it had been six. that's significant. if you look at the huffington post average, it is five to six points there, 46 to 40. that is something that has been

fairly stable over the last week or so, but starting to narrow a bit. the new york times average of polls nair rode showing about a five point spread. if you look at the nbc/wall street journal polls we released yesterday, one in florida, was very encouraging for donald trump. down just one percentage point, a must win state, 29 electoral votes, he's got to have it. he had been behind a little bit more. he is now competitive in that state and in fact another poll, the new york times poll, has him ahead in florida. then, however, if you look at north carolina, picture not so good for donald trump. down by six points, 47 to 41 to hillary clinton. and north carolina is also a must win state for donald trump. that's a state that mitt romney carried in 2012 and he needs to add to mitt romney's total to get to 270. he loses north carolina, he's going backwards. got a lot of work to do. >> john, he has to put -- he's

got to win florida, he has to win ohio, he needs to hold north carolina. >> and more than that. >> and needs more than that. which explains why he's in michigan. where else is he planning to go this week? >> he's indicated he was just in new mexico, which is the state where hillary clinton is strongly favored. he's also talking about going to wisconsin, which is another state that republicans have run reasonably closely in recent elections, i haven't gotten over the hump and no indication that donald trump is. he really needs to win the state of iowa, which is a prime pickup opportunity for him. the percentage of noncollege white voters is higher relative to other battleground states in iowa. the same is true with ohio. he also needs to make up some ground in pennsylvania. that's been a key part of his rust belt strategy. he's not been within striking distance of hillary clinton. we'll see if he chooses to go back there. >> what about obamacare.

everybody is focused on comey and the fbi and e-mails. these massive obamacare premium increases that we have heard about have coincided also with this narrowing, that has to play a role. >> not sure, brian. the opinions about obamacare have been polarized and fixed for quite a long time. the -- if you look at our numbers in the nbc wall street journal poll, they barely budged since the law was enacted in 2010. it is net unpopular. especially unpopular with republicans. whether or not this news about these premium increases is going to change many minds, flip over undecided voters, not sure about that. >> john, thank you very much. john harwood in washington. joining us on the phone is alberto gonzales, former u.s. attorney general under president george w. bush and worked with mr. comey in the past, dean at the belmont university college of law and author of "true faith and allegiance, a story of service and sacrifice in war and

peace." mr. attorney general, mr. gonzales, welcome, good to have you with us. i wonder where you think this whole investigation of hillary clinton's e-mail server went wrong and where you think mr. comey, if you think mr. comey made a mistake. >> well, of course, this is all speculation since i'm not privy to all of the evidence that they have looked at. i'm not privy to the conversations that are occurring between the fbi and justice and perhaps even the white house. but i think the first thing that seems somewhat perplexing to me was -- is the director's pronouncement in july or this summer in terms of the decision not to move forward. as many people always said, publicly, that is really not the rule of the fbi. the investigators are to gather up the evidence, turn it over to the prosecutors and they're the ones to make the decision

whether to move forward or not. in talking about the investigation so publicly, which is also very unusual, it really sort of sets a precedent for the directors and maybe he felt he had no choice but to say something in the letter last week. but as a general protocol, you don't talk about an investigation, and the most you might say is we're looking into this matter and when it is over, and you feel like there is nothing to prosecute, you say we closed the investigation and that's about it. nothing more than that. >> i'm not an attorney and so if you could walk me through this, as i understood it, mr. comey, in the summer said he was not recommending -- not his call whether to proceed with charges or not, but he recommended to the justice department that they not do that. the justice department went along with that. i take your point that in his public statements about the investigation, back even in july when he criticized mrs. clinton so strenuously, and then in

disclosing this ongoing investigation, that he did seem to be stepping to my layman's observation beyond where we normally see law enforcement and investigators go. do you share that view? >> absolutely. typically what you see happen is on a high profile investigation, you have the fbi director standing shoulder to shoulder with the attorney general. the fbi director -- this is after an investigation had been completed and concluded. the fbi director would outline some basic general information about the investigation and might even say this is my recommendation. and the attorney general would say, yes, we stated very, very carefully the information gathered in the investigation and we have concluded that there is no basis to move forward with the prosecution. the absence of the attorney general in this case has been particularly puzzling to me because it really is true that

it is the prosecutors at justice who have the responsibility ultimately to check the work of the investigators and to make the decision as to whether or not move to forward or not. i'm confused whether or not loretta lynch recused herself. some people say she recused herself, she felt she had to recuse herself. even if she did officially and there is a formal process to do that at justice, even if she had done that, the deputy attorney general -- >> mr. attorney general, in your view, is there a possible violation of the hatch act on the part of director comey? >> again, i don't know what i don't know. but the hatch act is generally put into law to prohibit government officials from using government resources to promote a political candidate and actively campaigning for a candidate. that's not what's going on here. i guess you might be able to

ma make a technical argument about a violation. but who is going to prosecute that or investigate that? it is going to be the department of justice. >> do you believe, mr. gonzales, that if secretary clinton wins the election, is it possible that we could have an active and ongoing criminal investigation of a sitting u.s. president? would that happen? could that happen? >> sure, of course. of course. we had the same thing with president clinton -- an when president nixon, so yes, we had instances -- >> do you know jim comey? >> he was my deputy for a short period of time when i was -- >> do you believe knowing this man that in any way he's releasing the timing in some sort of desire, consciously, subconsciously, whatever, to impact the election, yes or no? >> i would be very surprised if the motivation behind what happened last week is based upon a desire to impact a political

election. that's not the jim comey i know. jim make a decision. and right or wrong, he sticks with it. i think, again, as i said before, that kind of conviction, that can be a virtue and also very dangerous. you have to acknowledge that all of us in these positions beginning with the president on down, you have to deal with the hardest decision and sometimes you make a mistake and if you're not willing to acknowledge that, if you're not willing to recognize that, it can really be a very serious situation. but, you know, listen, as a general matter, jim comey and his family sacrificed a lot for this country and that should be acknowledged. >> mr. gonzales, thank you for your time. we appreciate you. you helped us through it. alberto gonzales. so how will this latest revelation involving secretary clinton impact the race from a branding perspective? let's bring back in carter

murray. let's be clear. i think any political candidate is a brand. are they not? >> they are indeed. >> they represent themselves, their party, they represent an ideal. where does the clinton brand stand right now? you don't have to make it political. looking at it neutrally, how would you look at it? >> a lot of people are focusing on clinton and it is more interesting for brand trump. if you think about trump really as the outsider brand and hillary is the establishment brand, think of it for instance as the outsider brand being the kid in the back of the classroom. it is like the teacher went in the class room and pointed to te kid and in the back and said that's interesting. >> is it easier for the brand in the back of the room to get traction because they're punching up, because they can -- they have more freedom as a

smaller player, an underdog, to do what they want rather than what the establishment expects them to do? >> well, i think what is interesting from a brand perspective is trump is a purpose driven brand. which has changed the establishment, anti-establishment, represents -- a clear purpose. hillary is more of a fufrfuncti brand, running on her policies, very much on -- >> experience? >> experience. much more of a functional brand. i think it is a lot easier and more forgiving to be a purpose led brand than to be a functional brand, which is why right now while she has the lead, there should be some concern about how she moves forward. >> if the core of her brand is being functional, how does this new revelation impact that at all? i would argue that a lot of people assumed that was part of the hillary clinton brand, the fuzziness about this e-mail server and unknowns and whether or not the clintons are being completely truthful about their dealings. that always sort of existed out here. you're saying that actually the core of her brand is being

functional. >> i would say her brand is about being functional. the core of every brand needs a purpose. when i was on the show last time, i talked about the need, i think, for hillary to -- in these last days, she started to talk about her purpose, her -- why she is the right choice for president. if you lack at reagan, obama, look at bill clinton, there was this sense of purpose behind that brand and i think that's maybe the last missing link for hillary clinton. an essential link where as when you look at trump, he has a clear purpose, which is, you know, what does he say, drain the swamp? he believes in a totally different america than he can change. >> to me, his brand is clorox. i'm going to come in and bleach washington, bleach the hell out of it, going to clean it. we had the privilege of watching the last debate together. at that time we walked out of the room thinking mrs. clinton's lead was comfortable, and that she looked like the winner. do you still feel that way?

>> the polls indicate she's still in the lead. >> that's not what i asked. >> that's not when you asked. i have concerns in the united states if you look at what happened in colombia, look at brexit, 95% odds bet fair that britain was going to stay in europe. the night before the election. everyone thought that that was happening. i think the real concern when you look at it today is the angry vote, the protest vote. you have to be very concerned. it is to her advantage the polls -- this sounds counterintuitive, the polls are coming closer. i think people have to choose who they want. you have two brands there, and people will have to make a choice. if people saw clinton was winning. i think by a large majority, it is easier for the independent to make a protest. >> to make a protest. >> to stay home. >> to stay home or looking at the ballot, they go, well,

actually, she's already won, so i'm going to make a protest because i'm really fed up with the establishment, i'm fed up with the fact that people -- there aren't enough opportunities. >> so closer race could work to her favor because it would energize her supporters to get out. >> i think one thing that is clear is that trump rose to power on the back of a movement, the back of a movement for chan change. >> anger with the way thinz are. >> exactly. some voertz have to decide are we going to vote for the brand we believe in, or am i going to vote in protest. that's a key decision to be made in the coming days. >> have you seen people make a choice between two most disliked brands in history. they have the lowest popularity or whatever ratings ever. >> i don't want either flavor of jam. >> but if i have to have jam --

>> i have to pick one. >> someone will come up with a new jam, right? >> one is marmalade and whatever over here -- >> one gives me a rash and one makes me sick. >> fun to look at a brand. >> it does. it does. >> what would happen is you come up with a new product or new brand. we don't have that choice. people have the choice for brand clinton or brand trump. you have that scary protest vote where you don't know where they're going to go. >> clorox will clean your white shirt, but spill it on your lovely blue suit, you have a problem. >> carter, thank you. shares of facebook up 25% this year on just a couple of bucks below the all time high. the company reporting results on wednesday. we'll take a look at this and all the other big reports due out this week. and maybe this won't surprise you, but no deal reached on oil output, falling. we have more on that when "power lunch" comes right back. ♪

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earnings season continues this week with big names like facebook, coach, alibaba and go pro all scheduled to report. so what should we expect from the companies and the market as we look ahead? let's bring in michael thompson. great to have you with us. >> hi, melissa. >> so far earnings better than expected. 58% of the s&p 500 have reported 74% topped estimates. this according to fact set. you say that you're a little concerned about consumer discretionary in particular. why is that? >> it is a single digit growth,

but this is a sector outperformed for the last 28 quarters. the s&p by and large. and, you know, 70% of the economy is driven by the consumer. you are a little concerned when you see such a nominal input for the quarter. the other thing is next couple of quarters look the same. don't see double digit earnings growth for the consumer discretionary until the fourth quarter of 2017. that just gives you a little bit of pause out of this. i think that's the story. >> what are some of the push and pulls within consumer discretionary this is the secretarier thy sector with a lot of different buckets. >> well, you know, it is a tough one. i think that you have is transition. i think it is the -- it is -- as companies try to make the move to complete the -- from brick and morter to the big online presence, you've seen this, this is going to go in big companies like walmart over the next several quarters. i think that's kind of the

thing. i think the other thing is you have to watch for the global sustainability of the luxury brands. that's a question mark. so these are the things, but i think you take some comfort if you get some good auto sales and things like that, but across the board, you know, the s&p looks pretty good. x energy dragging down about 70% for the quarter, you know, i kind of think you probably get a 7% quarter at the end of the day. and even better, you're breaking a four quarter negative earnings growth streak. we can declare that's an end to the session. >> what do you expect out of facebook? we have seen the tech sector trade. on the back of a miss from apple, we had a sector basically be fine the next day. surprising sort of resilience. >> not -- facebook analyst, what i can tell you is that technology has been a great place. they have already beaten by about 300 plus basis points. the expectations were they would come in 3 plus percent growth,

already over 7, 7.5%. i think that's good news. good sign. i think financials are really important. went in, looking at something on the order of 5% to 7% growth at the beginning of the quarter and now up around 14%. that's real leadership. that's good. it is all driven by strong loan growth. these are good things underscoring decent strength in the overall economy. >> great to see you, thank you. michael thompson, s&p. nurses, oil and replacement needs. that's all coming up in the good, the bad and the ugly. a man and a panda and they're wrestling. what happened and why did he do it? that's up next.

breaking panda video. best video of the day, a man in china climbs into the panda enclosure at a zoo and although pandas aren't known for their aggressiveness, this one did grab the man's leg and wrestled him. you see it happening. eventually the man got free and escaped without injury to himself or to the panda. if you wonder why he did this, it is the same reason any guy does something stupid. cctv says he was trying to impress a woman.

>> exact opposite effect. >> brian? you've never done anything like that? >> if you're at a bar, you're, like, i would rather wrestle pandas for you, no one would take that literally, i thought. time for the good, the bad and the ugly. the good, team health holdings up 16%. the hospital staffing provider agrees to be bought by private equity firm blackstone group for $6.1 billion. the bad, exxonmobil, that stock under pressure falling a downgrade to neutral from a buy at goldman sachs and yanked it off their conviction buy list. and a downright ugly day for zimmer biomed, second worst day ever, this after the medical devicemaker cut its sales guidance for the year. oil steadily moving lower throughout. oil produces -- oil fails to get a deal on output. the question is, why is anyone surprised by this?

oil closes two short minutes away. we'll have the latest on the fbi investigation into hillary clinton's e-mails when "power lunch" returns. man, i'm glad aflac pays cash. aflac! isn't major medical enough? no! who's gonna' help cover the holes in their plans?

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i'm sue herera. here is your cnbc news update at this hour. cnn parted ways with donna brazile after hacked e-mails revealed she provided questions in advance to hillary clinton's campaign during the democratic primary debates on the network. brazile resigned on october 14th, and a cnn spokesperson confirmed that. iraqi special forces advancing on isis held mosul from the east, taking heavy fire but moving within two miles of the city's limits. the u.s. military estimates isis has up to 5,000 fighters inside mosul, and close to 2500 in the outer defensive belt. a police operation in a paris migrant camp. french officials say the operation is not, however, an evacuation. three suspects stopped by police this summer as they try to drive through the holland

tunnel into new york city with a cache of weapons were in court today. they pleaded not guilty to various weapons charges. that's the news update this hour. i'll send it back down to you. >> sue, thank you very much. hillary clinton campaigning in ohio right now. she just brought up the e-mail probe, saying there is no case here. let's get to nbc news' pete williams with the fallout from the latest e-mail probe. >> it all comes down to one of these, the hard drive from a laptop computer, one like the one in anthony weiner's laptop. the fbi doesn't go into the actual laptop to do this. they make a mirrored image, they can duplicate of the hard drive. that's that they have been working on for the past 24 hours. it is a process of -- automated largely at this point. they want to narrow down the e-mails on that computer to just the ones to and from her, just the ones to and from her had hillary clinton was secretary of

state. whether there was improper use of a server for classified information. once they have that narrowed down, they'll use other techniques to take out any that are already been seen, that are duplicates and the supposition is here that a lot will be. and what is left, they'll root out the ones that are strictly social, you know, what time should i call you, what time do we pick you up with the car, and then they'll look at any that involve potentially official business and that's the question, did any of them contain classified information? if this goes quickly, the thinking is still that the fbi might be able to say something before the election. other than that, if they don't get results quickly, there are no plans as i understand it at this point for fbi director comey to come out an say anything else, no plans for him in essence to come out and say anything more to amplify what he already said in his letter last friday. >> pete, thank you very much for that update. pete williams, nbc news. oil is closing for the day,

falling by nearly 4% after no deal on output was reached by opec and nonopec members. wti down by 3.8%. the head of commodities strategy joining us now. it is that time of year again. it is opec. november 30th. the opec secretary-general has been making some overtones he's brought the dysfunctional family together, all going to sit around a table and agree it a production cut. do you believe that? >> i think they'll get it done but right before november 30th. i think the preliminary meeting will be a lot of noise with negative headlines. brazil was never expected to take part in the cut, azerbaijan, kazakhstan still showedi i showing up. >> maybe they'll make a deal, but iraq is now at 4.7 million a day, it may go to 5 million a day.

it is like they can agree to it, but -- >> let's go back to the iraqi numbers. a lot of controversy on the iraqi numbers. most analysts think iraq is producing around 4.4, 4.5. they're saying they're producing 4.7. most say the discrepancy is a double counting of kurdish area fields. they have been flat since january. this is the problem for iraq. they're talking their book in terms of higher numbers, and everybody wants a higher -- >> they can say they're cutting down to 4.5, their current production? >> they're reseveri reserving t for next year. >> how does the ipo of saudi aramco fact near this and the desire to reach a deal in. >> i think it is very much the saudi best interest to have oil above 50 to get this ipo to fly. this is a very big policy priority for the deputy crown prince of saudi arabia.

back to iraq, they can't afford to walk away from this deal. people keep saying, well, iraq can't afford to cut, can't affo afford to freeze. >> production deal, where does the price fluctuate? no production, where does it go. >> failier ure to launch will bb 40. 50 is what the saudis are looking for ipo. >> that's not that far from where we are now. it is now -- >> 48. >> 47, 48. >> right but the problem is a lot of speculative net longs in this market that will come out in the event of a no deal. >> if there is no deal. >> yes. >> we hit 50 already because of the positive anticipation. >> algiers, no one expected the algiers agreement. all the talk we can't get together, opec is dysfunctional, we could sell off going into november 30th and sub 40 if they don't get this done. >> i'm shocked that an opec

member would lie about their production. thank you very much. with a little more than an hour left in trading, not just today but in the month of october, you want to make an october deal, an hour left. the month will be the worst month for stocks since january. like, nine months ago, tyler. >> and it was bad. >> it was not good. the trading nation team will tell us what to expect. this woman owns this house, with new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. remember here at ally, nothing stops us from doing right by our customers. who's with me?

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time for trading nation. let's talk to overall markets with matt maily, boris schlossberg. matt, october, turn around, will be the worst month of the year since january, which sounds probably worse than it is. where do you see the market going? >> well, on a knerr tenear term anything can happen with the election coming up. if trump gets -- eeks one out here, it can have a negative impact on the market. on a -- longer term basis, i'm more concerned, i think all three of the main stools to the markets are really not as strong as they were earlier in the year

with the central banks not quite as accommodative as they had been and though growth is okay, it is sluggish at best, and the amount of investment that the companies have made into their own businesses over the last seven or eight years has been very poor, so the foundation is not good. and, of course, earnings, with the dollar being strong, i don't know if they bounce back as well as they have in the past. right now, we got the s&p, it is broken its trend line since the february lows. from the february lows, that's negative. it is still in this tight range for the last three or four months. if we break below the lower end of the range, that's negative. some of the momentum players will bail quite quickly no matter what happens with the election. if we can't hold the 200 day moving average, that will be a bigger issue because of all of the high frequency trading and things like that that can accelerate. >> maybe technicals matter. boris, let's talk about it. what is the most important thing to you for stock prices going forward and where do you see them going?

>> that chart that matt put up looks look a chart of a limp noodle, it looks like it is rolling over. the critical concern is just election. i think the market now is basically on pause. the money is -- nobody is really liquidating but nobody is putting their toe in the water. this he need to clarity and definition as to what will happen with the election. only after that can they get clarity whether the economy will go. all the reasons we talked about, the fed tightening, growth being last luster, all those things are overhang by the general sense of sentiment that we need a resolution to the election before we go forward. that's what is holding the market back. >> the good news is we have seven days, anyone hours, 16 minutes and 48, 47, 46 seconds hopefully. >> i think we're unified in the sentiment it could not come soon enough. >> yeah. all right, guys, we agree on -- that's all we agree on, but that's enough. boris and matt, thank you very much. two additional segments online every day. go to tradingnation.cnbc.com.

tv ratings for nielsen out. it may be a bigger problem for nielsen than it is for espn. we'll explain that when "power lunch" returns. sometimes when the market is trending down, the best thing a trader can do is wait it out. when a stock is trending down it telling you it wants to go lower. as sellers are willing to accept less and buyers are not willing to pay up. the more experienced trader will wait for the stock to trend high, even if it means buying at a price above where it is currently trading.

nielsen and espn facing off over a report that espn recorded its worst month ever. this may turn out to be a bigger problem for nielsen than for exex espn. julia boorstin joins us to explain why. >> nielsen is retracting its report that showed espn had its worst month ever in october in terms of subscriber losses after that report sparked a number of headlines. nielsen saying it is investigating a larger than usual change in the november 2016 cable network coverage area households and persons universe estimates saying we take the accuracy of our data seriously

and are conducting a thorough analysis to determine whether or not there is an issue with the estimates. this does raise larger questions about the accuracy of nielsen's numbers and it comes on the heels of nielsen's most recent quarter missing on both the top and bottom line. sending the stock down 18% in the past week since that earnings report. espn attacking nielsen for releasing potentially inaccurate numbers saying, quote, the nielsen numbers represent a dramatic unexplainable variation over prior months reporting, affecting all cable networks. we raised this issue with nielsen in light of their demonstrated failures over the years to accurately provide subscriber data, the data does not track our internal analysis. pivotal research analyst brian wheezer saying the reported espn numbers are not particularly unusual, and there have been two other months this year that showed greater percentage declines on a year over year basis. questions about the health of espn are sure to come up on the disneys earnings call when the

company reports next thursday. back over to you. >> thank you, julia boorstin. we'll talk disney in a moment. first, to the latest black eye for nielsen. thomas egan has an outperform rating on the stock. great to have you with us. have we seen other subscribers, other users of the nielsen data question the results as well? have there been public outcries, people stopped using nielsen as a measure? >> well, of course, remember about five years ago when nickelodeon's ratings fell by 20%, that was an egregious huge number. we came up with a number less than that. but the problem is that, you know, nielsen is still -- has an exhaustive method for gathering data. but because it is a sampling methodology, it isn't infallible. the more particular, the more specific a demographic is, the more likely not quite to be as accurate as it can be.

>> with the rise of all these niche cable channels, that really shows nielsen's weaknesses? >> well, for example, with kids, for example, 2 to 10 or men 18 to 34. the more specific the demo, the more specific the demo the more likely sampling technique. >> how is that impacting how cable networks are selling advertising? are they using neilsen ratings or supplying it with something else? >> well, more and more we are seeing network groups like turner, like nbc, like those at fox using their own metrics. they are using other methodologies like those to create their own metrics. >> is neilsen keeping up with not just what people are watching but how they are watching? are they ahead of the game or behind the game? >> we think neilsen will win the battle for the 2017 up fronts

because they have total audience and that measures the audience across all devices. it has been accepted by most network groups. we think sbs will come out and announce they will use that as their guarantee to sell advertising. we think they will use that as a guarantee to buy spots. but there are a lot of networks who are not quite happy with it. >> we will leave it there. tom egan. let's go to the other side of the story. let's bring in senior research analyst with fbr capital markets. you're an analyst. you want to gauge what espn, how many people watching. what do you have faith in at this point sth. >> first off, the numbers that neilsen was reporting on was subscriber numbers which is different than audience numbers. how many people have it in their

cable subscription. here neilsen has been saying that the number of subs at espn have been down about 300,000 per month. suddenly it seems like the latest number was down 600,000 and then they are retracting it. this number is looking like something that we should definitely ignore and focus on the longer term trend which is what we have in our model of downward pressure. this factors into the head winds on disney that make the stock more difficult to own this year. >> it is interesting because nbc sports their pr team put out a tweet talking about the huge numbers in live streaming for sunday night football. i wonder how are we really tracking stuff these days? we are arguing over who is watching stuff and where. every number i see is that video consumption is at a record high. do we care how we are watching it? >> i think you getting into an abyss of statistics.

these numbers when you try to get too precise and granular in any given month you are probably making a mistake. you need to look at the longer term trend which is what we try to do. the real story for disney is not what happened on the neilsen numbers for october but what is going to happen with viewership over a longer period of time and how that is going to be balanced against things with theme parks and movies. >> disney's espn is a pretty expensive chip in most cable bundles as i understand it. they used to have the game all to themselves. now there is fox sports 1 in there and others as nbc's comcast local networks are broadcasting live events. how big an issue is competition for espn in today's market place? >> right now these other sports networks are maybe a tenth of the viewership of espn. espn has competed with broadcast

networks which have huge games on sunday night and during the day on weekends from the nfl. there has always been competition, the newer players are kind of small. i think the real issue for espn is how many people are subscribing to the bundle and how much do people want to watch things like nfl. i think these are the bigger questions than anything that fox sports 1 is doing. i think that there are reasons to be a little more cautious about earnings going forward. >> when you take the competitors and aggregate them, my son is watching nfl network all the time now. there is nba network, mlb, fox, the locals, a point here or point here then you end up with real competition it would seem to me. >> i think you do have a fair argument that there might be a glut. there is so much expansion of nfl games to things like twitter, the thursday night packages, the college sports has

exploded. there is a lot of things to watch. espn has a dominant share relative to other cable networks. there is so much to see that there is a question about whether there might be a point that is pushed too far. >> thank you for your time. check please is next. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade. we're drowning in information. where, in all of this, is the stuff that matters?

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didn't quite get a chance to talk about shares of nike under pressure today cutting the rating to under perform citing increased competition with underarmer and adidas. >> just finished shoe dog by phil knight. i will tell you, i listened to it. i drove back and forth to blacksburg this weekend. that is the best business book i have ever listened to. >> is that right? >> it's not about tiger. it's about inspiration, hard work, perspiration. i have never met the man. he doesn't need my endorsement but it is a darn good book. >> way back in the days. >> you learn about entrepreneurship. he didn't pay himself a salary for over a decade.

he is a billionaire now. he is a fighter. it's a great book. >> "shoe dog." i want to take note of general electric's move today with baker hughes having worked as a part of ge as many of us did when it owned nbc universal. i feel like this is a moment 15 years into the tenure where you say the old ge under jack welch is totally no more. that company was built on media and financial services and big leasing business that they had. all gone in immelt. >> prior to me joining this company i might have derided it as a hedgefund that made tv and light bulbs. >> the rise occurred when there was a rise of conglomerates in general. the pendulum swinging back, be leaner, meaner and more focussed.

>> i love their ads with that nerdish guys. >> a lot of trump stickers and signs in virginhave virginia. >> interesting eight days coming up. >> 7 1/2. >> that is just when the election starts. not when it is over. "closing bell" starts right now. welcome to "closing bell." i i i'm sara. >> all telepathically as you will see on twitter. october finishing up with scary monthly returns for the market. we will look at which sectors have been hit the hardest and what it may mean for the stock