you might think based on the name they produce food in california and maine but they also have chickens in florida and southeast georgia. the company came out and said no material impact on egg production and the stock is moving higher. >> and tomorrow, a big day for everybody interested in investing, delivering alpha from the city we will be there a real who's who of the best in investing. >> "closing bell" starts now hi, everybody, welcome to "the closing bell. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth big rally for stocks today no weapons test in north korea this weekend, that helped sentiment. dow component apple powering higher ahead of its big annou e announcement tomorrow. insurance stocks rally big-time among others after hurricane irma's devastation was not as bad as feared for much of

florida. even though it is still bad enough. >> still bad see the re-insurers, worst performers last week, up 5% right now. irma has been downgraded to a tropical storm now georgia and alabama are in its sights while the hurricane as bill mentioned buwasn't as bad as it could have been, the economic impact is real jackie deangelis having a look at impact on agriculture like sugar and oranges. >> we were talking about that last week. we'll see what the impact may turn out to be. plus 6 million people wait for power to be restored, we're going to talk to duke energy's florida president about the efforts there. and the ceo of florida insurer, heritage, will talk about how his company is is assessing the damage as the cleanup begins let's start with the big rally in stocks, up more than 1% on the dow. the s&p is in record territory joining our "closing bell" exchange, mark lehman from j&p securities, steve grasso at post

9. rick santelli at his perch at the cme in chicago steve, we're calling it a relief rally. i mean, all these things we are concerned about going into the weekend didn't quite materialize as feared. north korea being one, of course, and then, you know, the sbimtss fo estimates for irma were maybe as much as $120 billion in damage now looks more like $30 billion to $40 billion you know, not as bad but still bad enough for those affected by this what do you make of this rally today? >> reporter: right, all your point of reference, right, so whether it was $120 billion or $200 billion or the forecast or the estimates, when you look at the rally today, it just stands and speaks to the pent up demand for equities, bill people have to stay invested in this marketplace it's their best bet for a return you don't see rates going anywhere as a matter of fact, it's less likely the fed will do anything other than sit on their hands. you have to be in the markets. you have to not get in the way

of this market it's going higher. >> mark, you know, we've heard from a new york fed official, bill dudley, for example, talking about how this would affect timing of ra rate hike. if the hurricane won't impact the u.s. economy fundamentally, why change direction at the fed? >> yeah, i think the fed is going to stand where they're at. i think the market is telling you rates will stay low and fundamentals of the market are fine i think you also saw post-labor day pentup demand and see a fair amount of ipo activity and secondary activity which will power the market to its next leg higher and mentioned apple as well, another catalyst for the market and reminder of tech is where you want to be invested. >> iphone 8 as we've been calling it coming out tomorrow apparently we're supposed to call it the iphone 10. >> i thought it was x. >> the iphone -- >> or does x stand for 10? the roman numerals are so tricky i don't understand why you say tech is going to take us higher. are you saying it's going to be like the 7 where it stumbles out

of the gate and powers significantly higher >> i think it's going to be a rye meen reminder to people, even though apple had a wonderful year as a stock, the kind of innovation that apple powers as well as powers the ecosystem with an apple is where you want to invest catalyst for the group, catalyst for the stock. taking our economy higher, reminder, again, technology and the companies that reley on the ecosystem are doing really, really well. >> softening today, yields up, three-year note option as well today. had the dollar a little bit higher and gold down what do you make of all this >> reporter: you know, i think there's a lot of interesting clues in everything you pointed out. let's take the dollar index, for example. it's up about a half a cent, but it's right on the highs. looks like it's going to close out right on the highs let's look at ten year their high yield close, low yield close for the year, which

stuck for a long time, was made in mid-june at 212 1/2, let's call it 213. that's the high yield today. right where we've been hovering. 30 year bonds. their low yield of the year was established toward the end of june, around 269 that was the low yield today i guess what i'm getting at here, all these forces have given especially interest rates this slow downward descent, but the minute we see some minor changes to certain aspects of these forces, we see it pop right back i really think these markets are going to respond the way stocks did and get more momentum as days go on the fact that yields were up today should have been viewed as a concession if investors re ho erinvestors'e lower rates, doesn't line up today as it did several sessions ago. >> mark, i don't want to harp on apple. maybe i do. >> go ahead. >> you know, i'm just thinking,

again, about your points about the ecosystem and the rally, but it's already had such a big year it's just hard to understand, you know, how it goes from being up 40% arguably in anticipation of the launch, to then going up another equivalent amount, once the phone's actually here. >> you know, it has had a great year, butwhat my point is is relative to valuations and r relative to growth rate, it's not an expensive stock look at other things they're investing in, whether in health care or parts of their applications i think apple is a stock that investors own but it's not overowned. i think there's a whole ecosystem behind it that you're going to continue to see announcementes from that company. apple led the way in innovation. i remind people it's not an expensive stock relative to its growth rate and relative to other parts of the market. >> kelly, what about the services arm of apple as well? it's so consensus to think that when apple reports or comes out, launches a new product, that the stock sells off. it really seems like everyone's going to be caught offsides.

let me throw another thing at you. what happens if we get tax reform what happens if we get a hint of tax reform what happens to that money coming back from overseas? what does it do to all those names that have taken us higher? large cap -- >> steve, my point is -- look, the stock is up 56% in a year. you don't think all of that's priced in at some point? >> i'm long -- >> i'm not saying those factors aren't a positive. >> yeah, i'm long square square's up 100% i'm still long it. there's names that are floated look at alibaba, look how much that's up year to date this is the year where you get on the horse, you ride it, and you don't get off the horse and they're the horsemen right now. >> one of the definitions of bull market is a market that just keeps going higher. >> sounds like a very -- >> i have a point. >> tgo ahead, mark. >> i was with a portfolio manager this morning who talked about facebook, a name we haven't talked about today, talked bt what kind of momentum they saw when they reported their second quarter the stock has done well, near an

all-time high. good as quarter you saw in the second quarter they should slow down no less in the third quarter. >> we'll know in the fullness of time. >> tomorrow will be fun. >> thanks, guys, mark, steve, thanks for joining us today. appreciate it. let's get to the latest on the devastation caused by irma in florida contessa brewer in miami with a look at impact on real estate and tourism. very important businesses in that state jackie deangelis is in riviera beach right now with how agriculture is being affected and yet anothe contessa, you first. >> reporter: okay. we're here in brickel avenue neighborhood known as wall street south they endured wicked winds from irma relea relentless rains storm surge that sent rain rushing down the main thoroughfare in this particular neighborhood post-andrew, building codes were intended to ensure that they could endure category 4 wind and

flooding, indeed, they did in brickle key, they never lost power. talk about a population boom this is a neighborhood where the population has nearly tripled since 2000 really drawn by the luxe condos here and the mixed-use buildings. and we know that most of the damage that this area has endured came from buildings under construction so debris falling off of major towers, cranes collapsing on these towers that were under construction and now miami's hotels and restaurants are assessing the damage they're working to ensure that they can deliver service to tourists i just want to mention, diana olick has an amazing article on miami real estate on cnbc.com. to the tourists now, miami, of course, is a big cruise port it is closed as is port everglades in ft. lauderdale, canaveral, port of tampa. both norwegian and carnival are taking ships from cozumel and heading back to florida in hopes they can re-open

universal and disney anticipate they can re-open tomorrow. they're spending today to assess the damage universal says its on-site hotels were filled to kpacapaciy and were fully servicing the guests there also fligtshts. ft. lauderdale airport expects to re-open tomorrow at 4:00 a.m. miami, much more limited service because there was significant water damage in five of its terminals. and so they say they're going to start slowly tomorrow and hopefully get up to speed in the days following that. so you guys, this is a place that the whole state has more than $100 billion in tourism dollars and getting back up and running to business is certainly urgent time is money. >> wait a minute, you had me at the population in that area has tripled since 2000 you know, we were all comparing what could happen with irma to what happened with andrew back in 1992, but the population in that part of the country was much lower than it is right now.

i mean, that's huge increase. >> reporter: let me give you another stat. >> yep. >> reporter: are you ready for this one this is from diana olick's reporting. i want to give her full credit there were 100,000 new tower units, so high-rise apartments, that came into this area since 2003 you're talking about a massive explosion, and only about 40% of those are actively occupied units. so meaning, you know, some of these are used as investment properties, outside people are buying them up the real question is can miami's infrastructure keep up it's great that all of these buildings, look around, they have window s intended to endure cat 4 winds. this building, panorama building, under de debris flyi. not keeps up with rising seas,

cli climate change and population influx. >> i've been in miami when it was flooding because its own infrastructure couldn't -- there was a pipe rupture or something. i don't know how much capacity the city now has to invest in all that i assume everything damaged just is going to be completely rebuilt back to the way it was with this, as you mentioned rrm let me point out, too, it's build on limestone this used to be all swamp, wetland, whatever. the more construction and development that goes in, the less this area is able to absorb that water to release it when there is flooding. >> wow >> wow, wow. all right. contessa, thanks great job as always. you know, approximately 6 million -- oh, oh, now let's go to jackie deangelis there at riviera beach. we talked last week about the impact on agriculture. what's it look like so far >> reporter: good afternoon, guys well, we don't have any answers yet, but people are certainly concerned because when they think about the sunshine state, they think about citrus. they think about oranges and grape frufruits and commodity yu

wouldn't actually expect and that is sugarcane noup here in florida, the product that comes out in terms of citrus is about 60% of what the u.s. produces. and the 2015 -- pardon me, 2016 to 2017 season was already a rough one, down almost 20% because of drought and also disease. so the question is, what kind of impact is irma going to have on the multibillion dollar citrus industry here in florida on the sugarcane stand point, guys, sugarcane production accounts for 20% of what comes out of this country and second to citrus. something a lot of people don't usually expect most of that production occurs here in palm beach county. we're going to be watching that very closely over the coming days as well what i can tell you, the futures markets have already priced this in if you look over the past week, you can see orange juice futures are up about 10% sugarcane futures saw a pike of

about 4% as well and those kmozti tcommodities a to move as we get more new>> re. now, approximately 6 million people are without power throughout the state of florida. more than 1.2 million of those are duke energy customers. duke energy florida president harry sideris is with us on the phone right now. with what the company is doing to try and restore service you know, we were just talking about the higher concentration of population in some parts of florida that boom in construction over the last 15, 20 years so there are a lot more people to be affected than, say, at the time of andrew 25 years ago. right? >> absolutely. good afternoon, bill just want to start off by saying we're very fortunate all our employees and contractors are safe an jd our thoughts go out o the residents of florida who went through this massive storm. we've seen the same type of

population boom around our tampa bay area, orlando service territory. we have 1.8 million customers. as you mentioned, 1 t.2 of thos wow power. >> when should they expect to get power restored, mr. sideris? >> widespread damage to all 35 of our counties. some of them worse than others we have an army of over 9,000 support crews from all over the country down here working nonstop to put everybody's power back we're currently working through the emergency operations centers to address any issues that they have with downed power lines, repowering hospitals and critical infrastructure, 911 centers, those kind of things as well as doing our damage assessment so at this time, we do not know the exact restoration times, however, we're looking at a week or longer from the first look at the widespread damage that we had. some areas -- >> we've been hearing -- i'm sorry, we've been hearing from other power companies about the increase in automation in how they've been able to redirect

power when a line goes down so that, you know, a lot of their customers can be -- get restored a lot sooner are you able to use that kind of technology as well >> wyes, we are. 28% of our system is covered by that technology, utilizing that to get consumers on sooner. >> is it possible some will be without power for a month or longer >> we doing it's ting go do be that long. we're assessing the widespread damage we had. we're hoping we get everybody back within a week or so >> now, we're focusing mainly on florida, but, you know, the storm's still going. and you service other customers as well. do you have any assessment yet, i mean, or anticipation of what it's going to look like when al is said and done >> yeah, we have customers in south carolina and north carolina they're beginning to see some of the bands from this morning. we've not heard of damage up there yet. we is crews on standby to be able to address those issues as they come up

>> and just real quickly, is anything going to change as power is restored and you guys just take into account all the damage that was caused by the storm? >> is it -- excuse me, can you repeat the question? >> yeah, is anything going to change in terms of how your infrastructure is installed as a result of this storm >> we spent over $2.4 billion hardening our infrastructure since the last batch of hurricanes in florida in the 2004 and 2005 timeframe. we're continuing to modernize our grid and increasing the technology on -- to basketball be able to remotely restore power quicker. that will be happening in the future so we should be able to better handle storms as they come up. >> mr. sideris, thank you. can't imagine what you're going through. we appreciate your time, sir thanks. >> thank you very much >> harry sideris of duke energy, president, florida division of zuk. we're heading into the cruise with 40 minutes, little

more than that to go again, a broad rally on wall street multiple relief -- there was no missile launch in north korea, for instance saw japanese stocks with a stronger dollar on the back of that, doing well, the weaker yen overnight. all that continuing here with the dow up 260 points today, one of the best days of the year better than 1% gains for all the major averages at the moment. hurricane irma, meantime, is grinding airline traffic to a halt, in florida and across many parts of the southeast we're going to look at the potential fallout for the airline industry next. >> airline stocks have done well today, as a matter of fact. shares of heritage insurance soaring on optimism that irma did not cause as much damage as initially feared coming up, the insurer's ceo will join us to talk about his estimate for insured losses. stay tuned ♪ so, i was at mom and dad's and found this. cd's, baseball cards... your old magic set?

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hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. plus signs today relief rally we're calling it the dow up 255 points off the highs for the session. the s&p, though, is in record territory. the previous record close, the number to keep an eye on, 2480

well above that. nasdaq, russell l, positive, up more than 1% those are not records right now. >> nordstrom is not helping, its sharing are taking a hit after the retailer announced a new concept store which won't sell clothes. instead the store, called nordstrom local, will be a fraction of the size of its normal locations and feature things like personal stylists who can order bill's clothes and offer him services like tailoring, manicures and drinks from an in-store bar. >> wish we had time to talk about this see what the market thinks of it. >> yeah. >> down 3%. >> shares down 3%. still i applaud them for fleeat least trying. >> absolutely. this is throwing pasta against the wall to see if it sticks we're going to talk about it, anyway, respect aren't we? >> not going to work anymore >> yes so much to get to. let's move on. airline stocks faring well today. despite 13,000 canceled flights industrywide and perhaps a dozen closed airports in florida due, of course, to hurricane ir irma those numbers are better than

what people had been fearing >> joining us to discuss this now is ben, the former ceo of spirit airlines. thank you for joining us >> great to be with queuyou, thk you. >> atlanta i think is the busiest airport in the world could the impact be much more severe if it affects atlanta at all relative to some of the florida airports >> well, it will certainly affect atlanta somewhat, although they're not getting quite the same storm florida got. florida, all the major cities in florida were affected and for a period of time at least all the major airlines are closed and florida represents such a huge volume of traffic for the whole country. it's a big deal. >> right talk to me, ben, about the economics of flights they do save, for example, on fuel cost. net/net, what impact does it have >> it's a net negative to earnings simply because in the

short term, so many of the airlines' costs are fixed. the plane is paid for, the crew is paid for. most of the handling costs are paid yes, they save on the fuel, save on the landing fee generally they lose close to 100% of revenue but save between 30% and 40% of the cost. it's still a hit on earnings investors understand one-time things like this what's important is the airlines can codify this and quantify it and say the storm cost us "x" and all airlines will be doing that in the third quarter earnings reports i'm sure. >> ben, customers also remember who helped them when they needed it most. i feel like jet blue with the move to cap its fares at 99 bucks for parts of the hurricane-affected area s was pretty vsavvy move opposite of the surge pricing we get upset about, but it's not economical or is it if it helps their reputation longer e iineia

big negative jet blue, will engender loyalty to an airline that already gets good loyalty mo most airlines have done what they could, waived change fees, tried to help. been in a position where they had to get their planes physically out of florida and change their operations pretty significantly, so as long as they're not sort of just taking money from customers and not willing to return it or not helping in any way they can, i think they'll do okay. customers are pretty understanding when things like this happen, i think >> before we let you go, let's remind everybody, again, i mean, you alluded to it earlier, the market share that florida has in the airline industry, i mean, give me the numbers of the hubs that service the state of florida. >> yeah. florida is a huge destination point for every major hub. especially on the east coast atlanta, charlotte, washington, new york, boston, detroit, chicago, all of them, look at

all the flights feeding into these hubs, a number of passengers are connecting to a florida city something greater than 20% of the pass stwrengers who walk ino laguardia airport are going to florida. you take florida off the map for some period of time or maybe a little longer if it takes longer for the state to get ready for tourists again in terms of infrastructure, it has a big effect on traffic, way outside of florida as well because it drives all the feed into these east coast hubs >> fascinating thanks, ben, as always appreciate it. >> great to be with you, thank you. >> you bet ben baldanza, former head of spirit. >> we'll have much more on hurricane irma during our crisis and recovery special live coverage tonight at 7:00 p.m. eastern time stay tuned for that. meantime, 34 minutes left in the trading session for this monday we're starting the week off with a bang the dow up 256 gainer of the day of major averages.

when we come back, art cash will tell us why he's calling today's market a shuge sigh of relief rally. plus we know millions of people in florida are without power. many are also without any means of communication because of damaged cell phone terows. we're going to hear from the head of one such tower operator coming up. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.

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( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) welcome back we are on track for a record close in the s&p 500 today a 26-point gain with better than

1% rallies across the board. the dow is up 259 points to back over 22,000. the best day since march 1st for the dow and for the s&p. how about teva pharmaceutical shares today surging after the generic drug maker named a new ceo after months of speculation? the company tapping schultz to help counter drug pricing pressure you'll remember he was here on "closing bell" a month ago speaking about drug prices teva shares up nearly 20% on that news. now let's send it over to seema mody for a quick market flash. >> reporter: hi, kelly, shares of gigamor are popping that elliot management's evergreen arm submitted an offer to acquire it gigamon focusies on helping companies understand date to it was up as much as 6%. off its highs right now. still up almost 3% in late trade. back to you, bill. >> all right, thank you very much. we head to the close we got 30 minutes left in the trading session.

i got art cashin, man, himself, with ubs securities to talk about this you were quick to point out this morning that this is truly a kind of relief rally pertaining to north korea, no missile test over the weekend. and of course, what impact irma was going to have it not as bad as feared. are you surprised, though, at the magnitude of this relief rally today? >> well, it is huge, but the sigh of relief spreads pretty far over not only did they not test any missiles, but we kind of backed up a little bit in the u.n that's raying hope that maybe actual talks could begin here. >> yeah. >> that's why world markets really rallied as you say, not only did the insurers rally because they will probably be hit for less, there was a great fear that they would be liquidating their portfolios to raise money to pay out. so that fear has gone away and then finally, while they are not as catastrophic as we thought, it's bad enough that it's going to mean the spigots

in washington, d.c., are going to flow and raises the move of a bipartisan move. almost every level, this was a goldilocks move. >> perfect storm in another way. a good way hard to believe it's been 16 years today, isn't it? >> sure is. >> we were reading your notes from 2001 today as you reminded everybody how well new yorkers came together on that day. >> yeah, they certainly did. people were helping people the trains in new jersey were out, a lot of the subways were out. those of us who made it out of the building managed to go over to the east river thinking we'd wake uptown and find transportation there was a ferry, almost like dunkirk. people had fishing boats and tugboats and other things. all they had was people with signs saying, brooklyn, new jersey, whatever then you got onboard, nobody asked for your identity. they didn't ask for any money. you know, and new yorkers who

are reputedly so cold and aloof were busy helping each other out. there were women running down off stoops with a glass of water. are you thirsty, do you need some help? it was really a remarkable moment as bad as the tragedy was, the response by the people in the area was magnificent. >> yeah a lot of the veterans here at the exchange remember that day vividly arthur, thank you. >> my pressure. >> thank you kelly? time for a cnbc update with sue herera. >> we're also going to begin with 9/11 remembrances vice president pence marking 9 /11's answer verniversary by vi shanksville, pennsylvania. praised the heroism of the 40 passengers and crew who fought their hijackers and forced the plane down in a rural field. >> the american people will forever be inspired by their courage and resolve. we honor them by remembering them

and we honor them by ensuring that we do all in our power as a nation to prevent such evil from ever reaching our shores again the cuban government says at least ten people were killed after hurricane irma tore through that island over the weekend. irma battered the island's north coast with winds over 120 miles per hour and 36-foot waves that reached havana's famed seawall in all, 38 people died in the caribbean. and a new columbia university study confirms too much sitting can be deadly it monitored the physical activity of nearly 8,000 adults and found that excessive sedentary time increased the risk of death even among those that exercised all right. everybody, stand up. that's the news update at this hour kelly, i'll send it back downtown to you. >> yep >> that's it exactly. i'm going to do the news updates standing up. >> i'm very comfortable. >> you're putting your health at risk, my friend.

>> thank kbrup thyou. this is a very comfortable chair. >> see you, sue. s&p's looking at a record close, up 25 now the nasdaq, the russell definitely still shy of that level. the nasdaq at 6429 its record close is 6435 we're still six points away. up next the ceo of a cell tower operator tells us how extensive wireless outages are in florida and when towers will be fixed so redes n mmicate with family and friends. right after this horseheadswivellychair.com

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by the way, shares of equifax continuing to get hit hard after the massive data breach that it announced last week stock has fallen 20% since the hack was unveiled late thursday and it's down another 9%. >> i would say, not so much on the hack, as to how the company's handled it, all of the difficultties around that website, you know, you now see other companies, card company coming out talking about how many of its customers are affected any how not inspiring a lot of confidence >> not a lot of confidence that's for sure. millions of residents in florida without power and cell service as they recover from the effects of hurricane irma. >> for more on the outage and potential damage of cell towers,

we're joined now on the phone by jeffrey stoops, president and ceo of sba communications which operates roughly 700 cell towers in florida jeffrey, thank you for joining us you know what, it occurs to me that we're starting to compare irma to andrew which hit 25 years ago. this is a necessity now that didn't exist 25 years ago. we didn't know about cell towers back then. but it has become a huge piece of the infrastructure. how much damage have you sustained to this point? >> hello, bill you know, at this point, it's a little early to fell, but we don't really think there will be a lot of structural damage to the towers since andrew, a lot of regulations have changed and the towers have all been designed, at least the ones built since andrew, withstand 150 mile an hour winds i really don't think the winds touched that throughout anywhere in the state of florida we do have one confirmed tower

down in the virgin islands and so far we have not identified any other towers that are down in florida the reason that most of the service is out is the same reason that people don't have lights in their house. it's power issue >> so out of -- jeffrey, out of your approximately 700 towers in florida, you think they're all running fine >> well, running fine, it depends on how you define that i think there's a lot of service out, kelly, but i think the towers are standing and ready to deliver service, once power can be restored. i also think the equipment on the towers is pretty resilient it's also the antennas that sit up on the towers that transmit the signal are designed for similar wind speeds. it's really about getting the power to the systems that allow them to operate. now, a lot of the facilities in florida have been equipped with jen rageneratorors which i thins going to allow the service to be restored much quicker than other

ar areas. where you have flooding, you're not going to be able to run those generators you're going to need to see the water recede particularly in southwest florida. those will be the last areas where i think you'll see the cell service recover but i do think it will come back a lot quicker than the power grids will >> what about further north, as it makes its way, we're starting to hear about the effects it's having now in georgia and parts of south carolina as it moves further north. what impact do you see there for your company >> well, i'm speaking to you from charleston and i can tell you right now, we're in a tropical storm right now and you'll have similar impacts. i mean, wind speed is the sin e single-most critical issue for knocking out power and wherever the power issues are the greatest, you're going do have the greatest issues of cell site outages and cell coverage outages is you're going to see that. you know, the south carolina coast is pretty resilient and used to these kind of storms

as it moves up into the atlanta area, i don't know that they're used to seeing these kind of storms so we'll see what the impact is on the power grid up there but you're really going to be able to pretty much predict how the cell service goes by whether the power stays on or not. >> indeed. jeffrey stoops of sba communications thanks for joining us. appreciate it. stay safe. >> you bet thank you, guys. bye-bye. >> thanks. >> seeing the radar system, such a huge storm still. >> looks like it's broadening. >> he said it felt like a tropical storm in charlotteton, nowhere near the track of the storm, you see the radar, understand why. >> exactly. 18 minutes to go 260 point gain for the dow today. the yulutilities, their challen dealing with the hurricane, they're at an all-time high. >> sector everybody loves to hate and it's at all-time highs. 2016, the hedge fund industry saw $106 billion in net outflows when we come back, a hedge fund choosing to return capital this year due to market challenges.

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investors. seth, one of the most noted stock pickers of all time, leslie picker with headquarters at what's behind this move. >> reporter: is it ever a bad thing to have too much money well, if you're a hedge fund these days, the trend is to try to get smaller and may mean returning capital to investors the latest to do so as you mentioned, seth klarman. so source tells me the firm's assets have grown too quickly due to come pounding no longer in balance with the opportunity set they see in the market my source says boupost is holding less than half of its assets in cash about 42%. but this isn't the first time baupost returned capital to investors. they gave money back in 2010 and 2013 as well and baupost is not the only one value act said in the spring that it would return about $1.25 billion to investors over concerns that valuations have gotten too expensive and then a few months later, global investors led by andreas

decided to return $8 billion to investors after his chief investment officer daniel sunhein left the firm. tomorrow as you know is the delivering alpha conference, asset managers with trillions of dollars in combined assets will be speaking. and hedge fund size is a big theme in the industry right now. is likely to be a topic of conversation, guys >> yeah, there's a lot of different angles, you know, ways you can pick this one apart. >> it just strikes me that they can't find enough opportunities. far be it for me to criticize. there's no way -- you wouldn't want me managing your money. i'm much less a huge hedge fund like that. they can't find enough opportunities? that's amazing. >> reporter: one thing that's pretty interesting in 2016 in his investor letter, his fund returned high single-digit performance that lagged the s&p 500, up 12% last year, he said it was the cop timpetition in te hedge fund industry and growing assets that made it harder to find that opportunity.

as you guys know, hedge fund assets have grown to be over $3 trillion even know the industry underperformed he's obviously seeing that as big headwind. >> one of in. >> just amazing. >> leslie picker there as she mentioned, tune into cnbc tomorrow i feel like we barely talked about this. >> oh, you'll be hearing all about it tomorrow. >> by this point anyway, we'll have live coverage of the delivering alpha conference i'll be sitting down with tiger management's julian robertson in the morning to get his best ideas. see a whole host of names joining us throughout the day. i believe you can still get tickets. deliveringalpha.com. >> rev dalio saw his ted talk all over twitter these days. >> see what he's doing in china? launching big fund, big success there. >> lots to talk about tomorrow. >> years, decades in the making dow up 220 the s&p in record territory. >> estimates on the costs of hurricane irma and harvey

approaching $300 billion eado t enoc hecomi impact when we come right back

mr. carbon made a return trip to post 9, told us a moment ago that the mark on close

ordering show a bias to the buy size, balance of $450 million. we'll see if this adds any fuel to the fire that's already been burning all day on wall street. >> looking at a record close of the s&p. hurricanes irma and harvey mark the first time in recorded history that two category 4 or higher hurricanes have struck the u.s. mainland in the same year the cost may also prove record setting. steve liesman is here with the storm's economic impact. steve? >> reporter: yeah, kelly, thanks initial estimates of the potential cost of the two monster storms being pegged now at $150 billion to $200 billion. moody's analystics put harvey at $86 billion to $108 billion. now irma, $64 billion to $92 billion. now sure if that incokorcorporas the catastrophic flooding. in the totals, $20 billion to $30 billion of lost economic output from idle hotels, people who can't get to work, power outages, shutting down commerce. moody's shaved its third quarter

gdp forecast by half a point, now running at 2.5%. expects a reconstruction rebound in the fourth quarter. that depends on the timing, though, of insurance payments and government assistance and the ability to find enough construction workers to rebuild the state. the state is the fourth largest ranked by gdp. $944 billion just the 27 in per capita income seniors on modest pension living in the state of florida. the storms can have enduring and lasting effects on live and localities but don't have lasting national economic effects. harvey, national impact depends on getting refineries up and running to bring down gas prices irma, getting the lights back on, streets cleared and airports and the theme parks opened up for the state of florida up and down, by the way, and across the state now bill >> and steve, real quickly, i mean, i was surprised to see some of the sbimts estimates fe third quarter saying it could take a percentage hit off gdp.

that's a pretty good hit. >> reporter: that's, again, lgts economic output, does not count, in other words, we don't reduce gdp or output by the property damage as well so in a sense, we get the positive side of that in the rebuilding and of course you know, kelly, the arguments about how gdp doesn't do a good job of measuring our standard of living or happiness that's one case. a lot of people would give back the hurricane and not have the impact in the third quarter if they could. >> oh, for sure. >> so we've heard. >> it's going to be a major one. steve, thank you. >> sure. >> thanks, steve. another piece of data, starbucks just announced 700 of their stores have been closed. >> wow. >> in the southeast part of the united states skrulas a result l of thus. we'll we'll back with the closing countdown zblfshl. afte cupertino, california, and get a preview of the highly anticipated iphone cx. >> 10, x. >> you're watching krns krrngs

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♪ (bell rings) ♪ (screeching tires) (bell rings) what an interesting day this has been 2 1/2 minutes left with the dow up 247 points. i'm going to start with the s&p here you know, in the last week, we highlighted so many different asset classes that were moving and speaking, had their messages, where the equity market didn't say a whole lot.

today is said a lot. we had this huge relief rally and the s&p is going to finish in record territory here the other major averages even with more than 1% gains, not a record there the dollar index you mentioned that last week hitting a 15-month low that was sort of the foundation on which everything else was moving at that time. that came back a little bit today. we're back to 9195 here. the ten-year yield which hit a year low last week at 2.01% has come back here we're now at 213 and change. gold had a year high last week at 1355. that has come back down. today we're at 1331. and oil, there are special situations there more refineries are opening in the gulf coast region. that increases demand for oil. that's why oil is coming back here wti up to $48 a barrel even though brent came down a little built today bob pisani, welcome back. >> thank you. >> and you come back to all of this terrific market action and the vix, by the way, back to ten

again here. >> you know what's amazing, last week for all the worries which i was watching from afar about irma and about north korea, and what might happen over the weekend, we barely moved the s&p was down less than 20 points over a four-day period. today -- >> boom. >> -- look at this, art adequately i think said, a great relief rally we're up 25 points just on those two issues a little bit of relief on those two issues we had a lot of volume, even though it's an average volume day, we had a lot of volume in certain etfs there's an insurance etf, believe it or not, kie had very high volume today as people rush back into the insurance stocks the bank etf, kbe, had exceptionally strong volume today. a number of treasury etfs, that's the barkley three to seven year one i'm highlighting for an example, iei, were sfroo extraordinarily heavy volume as, again, people sold them on the yields being a bit to the higher of course all the bank stocks trading to the upside today as well. >> thank you. >> good to be back. >> nice to have you back,

robert good to see you again. up 256 on the dow. up 26 points on the s&p. good enough for a new record more on irma and the track as it moves north and, of course, the economic impact coming up on the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kell thank you, bill. welcome to "the closing bell," ae everybody, i'm kelly evans a record close on wall street today with everything going on in this country right now. the hurricanes that are still moving through the southeast, we still have the s&p 500 up 26 points to 2,487, 7 points above the previous closing high. which we, by the way, haven't seen since august 8th, was when we had that prior s&p 500 closing high it's been about a month that stocks have been churning here the dow jones industrial average going out with a 258-point gain to close back above 22,000 today.

22,055 that's about 80 points shy of the record close also from august 8th meantime, the nasdaq closing at 6,432. three points after its record closing high of 6,435. russell, still, it has been underwere forming as we noted a lot of dollar weakness reversed itself today. so did the russell by more than 1% 1,414 well shy of its record closing level. we'll have having continuing coverage of hurricane irma jackie deangelis in river area wra beach, florida, with us for the latest on power outamgs throughout the state diana olick check on logistics and recovery efforts in smyrna, georgia. we'll check in with them shortly. joining me in the meantime, michael santoli. sarah hunt and kara pepper from pepper interfaci interfacial. you should be the blond and you the brunette michael, relief rally, we

obviously saw big moves in the insurers today, reinsurers they naught would be hardest hit and aren't nothing came out of north korea feels to me like a pretty significant -- >> definitely relief was probably the theme and started in europe, by the way. we've seen this pattern before not with the specifics in terms of what exactly people were potentially afraid of but the market clenches up in advance of some kind of known uncertainty and then people get a little bit bearish. the average stock kind of sells off a little bit people say maybe this is finally the real pullback. and then people find themselves underinvested when, in fact, the world holds tokt okay. a lot of the kind of risk-off trades of last week, the yeb n a rallying last week down big today. >> yeah. >> all those macro trades did reverse. i will say it was interesting how we get up 1% on the s&p and it sits there. i mean, that's been the kind of market it grinds higher, reprices quickly then it kind of sits there for a while. >> true. intraday chart, it would look like a plateau almost. sha s

sarah, what do you make of it? the flip side, stocks like home depot which have been stalwarts regardless, have their own things going on there with amazon but obviously looked to as a huge source of demand for the rebuild. >> i think you look at the hurricanes in -- you look at florida and look at texas, you say to yourself, what is going to happen? people are going to need a whole bunch of things including a lot of hvac shares jumped, too. ingersoll rand what are you going to repair first? going to go for the air-conditioning in nose parts of the country got a lot going on the debt deal, i think that was a little bit of a relief that that was happening, too. the fact over the weekend this wasn't so bad from a korean standpoint and a hurricane standpoint, that gave people a reason to say, you know what, we got earnings season coming up, let's see what happens. >> carol a lot to be decided about how the north korea c conflict is going to be handled. the security council has to decide if their going to impose sanctions, if so, how badly.

it's not going away any time soon. >> i manage money for people with over $100 million in net worth in family offices and basically put together long-term portfolios we're really looking at equities particularly large cap growth equities, tech and health care, is continuing to rally through the end of the year. no matter what happens in north korea, obviously, barring a war. >> i was going to say more focused on the iphone launch, if, you know, that is one of your big -- >> that's right. the iphone, the iphone launch is going to be tomorrow i think we're going to see tremendous synergies happening more and more with amazon taking over whole foods you know, this is just a great place to be in i know you have the ceo of tava on earlier today he's very exciting health care is looking very good so, sticking with large cap and growth as a large part of your portfolio, i think you'll be very happy you stay in those positions. >> michael l, what about tax reform you know, a lot of the times when we've seen those tech growth -- out-performance, we don't think there's going to be a great broad growth coming from

tax reform now you have the sense of added urgency for the gop to get something done and have something to show as they head into the midterms next year. >> yeah. >> mnuchin and cohn headed to the hill for talks on that. >> we'll hopefully hear detail tomorrow from the treasury secretary here i do think it's that thing that sil sits out there that can probably only be a contributor on the positive side. i don't necessarily think it's a big pitfall if there's not a lot of progress very soon. i think that whole sense that the congress needs something to show for this session is probably working a little bit more toward kind of a deficit expanding tax cut of some magnitude. i think that's probably okay with the markets right now again, i don't think d.c. has been the driver, it's just been that kind of background thing that could help down the road. >> would you put it the same way, sarah, i mean, it was really fascinating to watch steve bannon on "60 minutes," don't know if everybody had a chance last night, but to see there's a way of the reordering of the traditional relationship between the republican president and republican congress, i don't know how that leaves investors

thinking bought there's definitely something going on there. >> i would definitely agree with the idea, it was originally the beginning of the year that the market needed tax reform and that was going to get it the next push. we had a nice move in the mashlgt market, anyway now it looks like -- as opposed to if you don't ge get it, it's going to be a negative i'd agree with the reasoning it's an unusual political situation for a variety of reasons. certainly the fact there's that interparty not getting along certainly adds to that. >> one more quick thing on the washington front, are you focused on this question of who's going to lead the fed, whether it is -- gary cohn, maybe janet yellen is that important for you guys >> that's part of something very long term. of course it's important i love janet she did a great job steering us through the crisis and merits another term we'll see what trump does. certainly if he looks at the health of the economy, she's certainly got the credentials to move us forward. >> one final word, michael, i'm curious what you think of seth

klarman's move today, baupost, one of the most renowned head funds to say, we're going to -- >> it matches the to be he's been striking in his letters for a while. he's a deep value guy who really wants to see companies that are being thrown away, that are being mispriced in his estimation and i think -- i put it in the same category really as howard marks' comments recently they feel their edge is when everybody else is panicked out and they're sitting there with capital and there's cheap merchandise out there. it's very hard to make the case that across the board, this is that market. and so i feel like it's certainly kind of a response -- in a way, putting your money where your mouth is if you're seth klarman, it means handing it back to clients. >> that's true. >> one of these signs of the times. >> yeah. >> ladies, thank you, we'll let you go, scare arah hunt and car pepper we get the latest on the hurricane working through the southwestern states, irma is pounding them with rain. jackie deangelis inviera

beach, florida diana olick is at a home depot home center with the latest on logistics, includes flight delays and cancelations. jackie, let's start with you. >> reporter: hey, kelly. good afternoon this is how i'm looking at this story right now. power, ports, and gasoline let me break it down for you just like that 6 million people across the state of florida right now without power. that power needs to be restored. it could potentially take weeks before they're seeing electricity back again remember, it's not just light switches we're talking about, it's also air-conditioning, it is very, very hot down here around the 90-degree mark. the ports behind me are also a critical piece to this because they -- the shipping channels are the way supplies are going to get in and out. we're at the port of palm beach where it's actually a bigger export facility and the port director told me earlier this is how the caribbean is going to get food, water, supplies, that

it badly needs after being pounded by this storm. on the gasoline side, of course, remember as we were going into this, we had gas shortages and we still have gas distribution problems now. as a matter of fact, in palm beach, where i'm closest to, more than 50% of the gas stations still don't have gas. so your main terminals for this are going to be jacksonville, orlando, and also ft. lauderdale what has to happen is the ports have to open be cleared by the coast guard so that the vessels can come through. then power has to be are restored so that the terminals can get the gas from the ships to the trucks so that they can move around and go to the different gas stations so this is a multipronged process before life gets back to normal for folks on the ground here and it could all potentially take weeks what we do know is the ports will open up quickly enough. as a matter of fact, tampa is scheduled to open up tomorrow. guys >> jackie, i'm struck by how many people seem to have some type of generator power to keep

things going i guess that's just kind of part of daily life in florida, when you have to prepare for stuff like that. is that mitigating the effect o these power outages do you think? >> reporter: it's helped a little bit remember, a lot of people did evacuate and haven't come back into town yet so a lot of folks on the ground here do have generators it certainly is helping. it's not solving the crisis on the ground at the moment >> yeah, that's for sure affecting businesses as we spoke to cell towers earlier, everybody in their homes jackie, thank you very much. we'll check back in with you shortly. jackie deangelis let's head to smyrna, georgia, diana olick is live at a home z depot center, monitoring logistics over there. >> reporter: the storm is over us right now the folks are at the command center are here working. this command center opened up before hurricane harvey. two weeks ago. they have irma to deal with as well tracking which stores are open take a look at the map

on the east coast of florida already, seeing home depot stores back open again not so much on the west coast. they check on logistics, check on everything from you talked about generators, this is -- they're talking to their vendors for batteries, generators, flashlight, lumber, everything, and getting it shipped out they could be here through the end of this week or possibly even longer. >> here we are supporting our stores to make sure we're there for our communities. we have all teams here from the maintenance team, the i.t. team, to the supply chain team to our her chapter merchants making su there for the communities. >> reporter: eight doors down, trucking companies that work with home depot to bring supplies where they need to go unfortunately the trucks can't go out until the winds are below 39 miles per hour. i don't think that's the case outside. same problem at atlanta's airport where we were most of this morning, saw absolutely no one there because hundreds of flights being canceled as of now, over 1,100 flights have been canceled in and out of atlanta international airport. as i said, the storm is still

over us so you can expect that to go on through the next couple of hours before they can start getting those fligts nights mog again. we're told it could take two to three days to get strachnded passengers where they need to go after everything's been so delayed and canceled from here, back to you guys. >> diana, do you think atlanta -- if you go back to last week, we thought this i wa going to be more miami, east coast storm. now that it's headed for atlanta that doesn't seem prepared for something like this, do you think they've had time to bolster their defenses so to speak? >> reporter: yeah, it's here now. it's very windy. again, it's a tropical storm they did close schools today the government was shut down they closed atlanta area rapid transit. they had shelters open there could be flooding here remember, atlanta is land locked you don't have the storm surge you're talking about in miami. they're very prepared for this perhaps they didn't expect it to come the way it did. seems like things are okay for now. we'll have to waitdiana, thank w

diana olick. you were at cantor fitzgerald -- >> yeah. >> thank you they've done this every year trying to raise money. you know, it feels like a longer time goes on to bring awareness to the fact that today is 9/11 what did you see when you were over there >> they had -- this is their 15th year. obviously 16 years ago was 9/11, the firm was devastated. they've been doing this for 15 years. it's broadened out since then. not just commemorating and taking care of the people affected directly on 9/is 11, people in any community hit by an unexpected disaster that was the message taking hold there. >> all right more on that coming up as well. over the next few days many florida residents will return to their homes. what they will find will spur tens of thousands of insurance claims we're going to speak to the krrkceo of heritage insurance, a leading south florida insurer about that coming up. companies from around the country are arriving to help detroit's dte energy sent 400 crew members to florida to get

the power lines up and running saw a similar effect in new york after sandy, actually. we're going to talk to the president of that company about the latest on the ste'por alngess we stay with us i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪

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a big market day on wall street. the dow up nearly 260 points to close above 22,000 a little shy of a record high. the s&p, the broader market did manage to close at a record. with the 26-point gain, 2488 is the new high water mark russell up 16. better than 1% day for everybody. apparently the only second time this year that that's happened. physical lowing hurricane harvey insurance companies took a hit on the stock market. heritage, for example, saw a 20% uptick and the insurance company was one of several florida runs rallying as the hurricane passed through joining us is bruce lucas, the company's ceo thanks for joining us. >> thanks for having me. >> what do you estimate the losses might be from the storm >> that's a great question at heritage, we run really detailed up to the hour loss runs based on the track of the storm on our policies in force right now we're seeing an estimated loss of about $200 million to $300 million kpor

according to our two air models that we use. i think that's probably a good pr approximation on the storm the retention on the event is only $20 million. >> you have about a quarter million policies in florida. what would have been the worst case for you what were you fearing? could this have been a billion-dollar e feivent for you guys >> easily could have been. had this event gone from miami-dade in southeast florida up the east coast, it was probably a billion-plus for heritage i mean, that's where the high concentrated policy counts are where the population lives the highest total insured values are all in the southeast part of the state. when irma took a turn to the west and went up the west side of the coast, you could hear a sigh of relief in the florida ma market. >> bruce, a couple story lines accompanied the anticipation of this storm one of which is, look, the insurance industry is very well capitalized. typically after one of these events you see the losses come

through then after that, the insurance companies get a better pricing environment. if they're so overcapitalized and the losses were less, are we going to see pricing change or does it have to right now? >> yeah, i do think that with the stress of hurricane harvey and hurricane irma, you could'sly see some hardening in the reinsurance market if there's hardening there, there will be hardening in the primary florida marketas well. you are right. the insurance industry in florida is extremely well capitalized. at heritage, for example, we have 1.75 billion of reinsurance on a first-event basis. this event for us is $200 million, $300 million. this is the largest atlantic storm ever recorded. >> let's talk a little bit about the experience homeowners have through the claims process are you guys able to take advantage of some of the technology big companies are, with sending drones out and so forth to speed this all up >> yeah. we're not there yet with the drone technology, but what we do have is a small army of contractors that work at

heritage in total right now, we about 400 claims personnel in the field. they're everything from adjusters, roofers, water mitigators, et cetera. wede pl deploy those resources get out to the customer right aw away, very unique vertical integration process we have. cuts down the claim time get to your customers pretty quick and helps keep our losses under control. >> i actually read there's a shortage of these very claims adjusters because people need to ramp up that workforce quickly are you guys experiencing that >> yeah, it is difficult to find adjusters right now. you have to remember that hurricane harvey hit in texas just a week before irma came through. so all the adjusters were out in texas. it was hard to get additional adjusters. we've been very fortunate in that we have good vendors that we have a long working relationship with. we have about 400 adjusters right now which is probably more than most companies, but on an event like this, i normally expect to have 700 to 800.

>> wow so you'll only have about half the number you need. are you having to pay a lot for more each of these people as well >> there is demand surges taking place in the market right now without a question i think hurricane irma will go down as a large l.e.e. event in our community. normally you'd like to see it in the low teens. i think it will be low 20s by the time we're done. maybe even tick up a little bit higher >> sorry, what's -- >> the end of the day -- sure. >> what's lae that you're referring to >> it's loss adjustment expense. that's what it koost costs to al adjust the claim so normally you'd see that cost a little lower if we don't pay the adjusters a little more, get them out in the field faster, the losses sit and the losses to the reinsurers climb higher. >> that's an interesting point just finally, because you mentioned there could be some impact to the reinsurance market, are you guys able to cover this out of your own capital base >> yeah, so our retention here is only 20 million this is just an offset against

third-quarter earnings we're in a good position here. heritage also has 600 million of multiyear ils bonds that serves as a form of reinsurance the pricing on the bonds is fixed three years out so we've got a very unique hedge in the market we're very prepared for an event like irma. we think it will help to take some of the sting off any potential rate increases we see next year. >> you know, just one more thing which is kind of the main question here, after the '04-'05 seasons, as i understand, it was hard for people to get homeowners and florida had to come up with unique ways to offer the insurance. will this have an impact on affordability, access to homeowners, ultimately where people are able to build and own property in the state longer term >> yes, it will, because if it has impact on reinsurance pricing, you can guarantee homeowner rates in florida will go high. right now our premiums in florida are the highest in the world for homeowners and i think that trend will continue not

just because of hurricane irma, but because of the massive assignment of benefits abuse that's taking place in parts of the state right now. particularly in the tri-county area in southeast florida. >> yeah. interesting, that was a big story even before this hit interesting. well, we'll see what happens now. thank you so much for joining us >> thank you for having me >> that's bruce lucas. ceo of heritage insurance. now the focus has been on florida after irma, but today also does mark the 16th anniversary of the 9/11 attacks. up next, see how celebrities and the sports and entertainment worlwoed td rkhe cantor fitzgerald trading floor to commemorate those who lost their lives. stay with us you can't always predict them, but you can game plan for them. for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions to help them reach their goals. being ready for wherever life leads.

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welcome back today is the 16th anniversary of september 11th mike was at cantor fitzgerald's c annual charity day the whole industry tries to just funnel the -- >> absolutely. >> -- funds their way. >> not only that, the cantor traders, themselves were foregoing a day's mpay on this. the firm many people would have thought might not have made it through after the 9/11 attacks really absorbed one of the heaviest tolls of any institution during the world trade center attacks, lost more than 600 cantor employees. what they do now, though, bring a varied array of celebrities from sports, entertainment, politics, onto the trading floor and get competitive. there's president bill clinton who headlined the event today. get a bit competitive about handing a big trade.

robert de niro. >> imagine -- do they know do near row is going to answer? >> they hand it off and say this is robert de niro. >> pick your stocks. >> usually -- this is a fixed income floor dealing hundreds of millions dollars of worth of bonds and things like that i joked earlier, de niro did not use his bernie madoff voice. that would not be a good thing if you were brokering a trade to do that. i think what was impressive about it, they did compete, they all wanted to actually get that big trade. bob costas that's jeff of the new york knicks as well we also did speak to howard lutnick, ceo of cantor fit jerlds was at the time. done this for 15 years raised over $130 million before today. and he talked about, though, how it's kind of broadened out beyond just 9/11-related charities and things like that i think we do have some sound from him. >> we lost 658 people, my brothers, gary, so we tried to turn the toughest day into

something beautiful. on top of taking care of 14ur00 charities, going to fly down 250 volunteers and adopt hopefully between 5,000 and 10,000 families depending how much money we can raise the partners and i've committed $5 million we hope to raise another $5 million. we're going to give each family with small children, elementary schools, $1,000 each and just we cover all expenses we give away 100% of everything we give. >> and that was for families affected by harvey and irma. so essentially, you know, as he said, the thoughts were mostly on commemorating 9/11 but essentially it's kind of a living charitable effort and they are doing plenty when it comes to the current disasters. >> by the way, if anyone hasn't been to that area to see how it looks today, just the last couple years they've had a significant amount of improvements. >> we. >> the grounds obviously have been if place for some time, but just to be able to see it all come back and the whole sort of gravity center of manhattan has shifted to the west with the hudson yards project coming

downtown with massive new structures and all the office space coming online. >> tremendous office space and residential, which nobody at the time thought would be the case but converted so many buildings into apartments. >> oh, yeah gorks ba, go back te financial crisis, too. felt like that was it. the 2001 blow, '07, 08 see it around here, people have, it's really worth pa look. thank you, michael appreciate the update. time for a cnbc news update with sue herera. sue? >> hi, kelly, hi, mike here's what's happening at this hour, everyone hurricane irma causing storm surge, flooding, in jacksonville that exceeded a record set in 1965 by at least one foot. up to 500 homes in the county have severe flood damage more than 5 million people across florida have lost power and that number is rising. >> we've had 4.4 million that were impacted by the storm, but many of those customers lost power and then were restored and then lost power again. so about 5 million outages is

what we've had and we restored about a million of the outages but i will tell you this, it's not over >> cleanup has begun in mexico after last week's massive magnitude 8.1 earthquake which killed at least 90 people across the southern part of the country. thousands of homes and hundreds of schools have been damaged or destr destroyed. students in houston are back in school after a two-week delay because of hurricane harvey. but not without some changes it's a split day at the summer creek high school. summer creek students attend classes in the morning with kingwood students attending in the afternoon because their school is not able to open up yet. that's the news update this hour kelly, back downtown to you. >> you know, that -- it's hard to quantify that one, sue, but every day the people aren't at school, that's a major hit. >> it is. >> that could take a long time to get everyone back up and running. >> absolutely. and they're estimating they're going to have to do either split days or staggered semesters

because some of those big high schools and grammar schools, they have to all be cleaned out, then they have to be sanitized so there's no health risk. it's a huge undertaking. and there's still some flooding in houston so some of those schools are still inundated with water it's really a big job. >> such an important point going to be a tough one. appreciate the news, sue, thank you very much. >> you got it. >> sue herera. like harvey in houston, irma is expected to also take its toll on the auto sector we're going to have a look at what both storms are meaning for the industry coming up. and help is on the way for some areas hit hard by irma. detroit's dte energy is sending trucks and crews to help get florida's lights and power back on we'll get an assessment from the company's president about when full power might return.

welcome back we set some records on wall street today with the close of the s&p 500 at 2,488 that a new high. exceeded the previous high from august 8th dow added 260 points second best day of the year. it's a little bit shy of its record still back above 22,000 to 2,257. the nasdaq added 72 points russell up 15. everybody was up more than 1% today. now about 6 million people

are without power in the state of florida dte energy which is based in detroit has joined the efforts to help restore that power dte has deployed 550 workers to florida. trevor lauer, president and chief operating officer of the company and joins us now was -- did they need -- did they come to you, everybody asking for help or just see the news, trevor and say to people, you got to get down there? >> yeah, kelly, there's a pretty established process, the mutual assistance process that utilities use across the country for major scale events like this so when they ask for resources, we were happy to offer them in because this is such a scale, a national-scale event. >> how long can you afford to be without these workers in dro detroit? >> yeah, that's one of the things we measure, when you release resources to help another yultutility. you want to give enough to have an imfact. we're seeing utilities release utility workers to help them but holding back enough resource to keep the lights on and make sure

we keep power quality for our own employees. it's a real balancing act because we want to give as much support as we possibly can to the states being impacted by irma. >> do you have crews just sent to the region and then they have to be kind of deployed where necessary as the days go by? because obviously the track of this storm wasn't completely predictable heading into it. >> yeah, when you offer crews up through the mutual assistance process, what happens is the receiving utilities, in this case for us, it's duke, florida, and florida power and light, will take those crews and stage them at particular areas inside of their service territory and as they put them in their service territory, then they will apply those two outages where they need them, where they're seeing outages in their service territory. so now that the storm has passed and utilities are in the damage assessment mode, they'll be in the position to start using our crews to start restoring power for their customers. >> trevor, are you paying these workers even though they're in florida right now? >> yeah. the mutual assistance process

has pre-established krtss betwe contracts between all the utilities. the last thing you're worried about is how you're going to be re reimbersed for the cost. we'll cover our employees. the bills will be sent to the utilities using our employees and we'll get those funds back. >> is this sort of like the fdic where all the utility companies contribute a fee to support this or who funds it, how does this work >> well, edison electric, umbrella for the e elect rick yults in the united states oversees this process and put in place tools we use in other words to match up needs with the number of resources sent out in terms of the actual dollars, we will continue to pay our employees. we'll make sure that we cover all the costs and the resources necessary. and then when all the accounting is done, we'll send a bill to the receiving utilities and then they'll pay us back for them. >> so as a customer, i wouldn't necessarily see this on my utility bill, for example. >> no. no in fact, you will not see it on your utility bill.

>> how many times a year does this mutual assistance process call upon people is it a nationwide thing how many times a year do you hear from them >> yeah, well, there's regional mutual assistance groups on a regional basis, we share crews on a pretty regular basis. i'll give you an example, in march we had a tropical storm hit the state of michigan. pretty catastrophic event given we usually don't get tropical storms in michigan we had about 1.2 million customers affected by the tropical storm and we had resources that came as far away as georgia but on a monthly basis, we will share crews with the utilities that surround us on a pretty regular basis. but on a national scale like this, this is unprecedented. you really don't see us sending crews as far as florida or to texas like we've seen recently >> and i wonder how long you might be without those workers if it's much longer than usual, given the scope of the outages that we've heard the utilities talk about >> yeah. one of the things i think that customers have to be aware of is that a lot of these customers

will come back quickly florida power and light, duke florida, georgia power, all great companies that have been doing the right things, hardening their systems. but as you go through the restoration process, there's a handful of these customers on circuits where you'll literally be rebuilding the circuit. so it's going to take more than days, it may be into weeks for some of the customers to come back for the people on the ground there, they'll be in the best place to answer those questions. >> and, you know, we may have an even busier slate of storms coming through i mean, we obviously don't know. but is this the kind of thing where you even would look ahead to say what the needs might be down the road if, in fact, we have more landfalls? >> well, i think with all the utilities in the united states, we're all looking at our manpower resourcing. none of us scale up to manage a storm of this size, but we do look regionally at how many resources we have in the regional area to make sure we can support each other as storms like this come onboard

so i don't think long term it will have a big impact a lot of us are doing rebuilds of our circuits and of our infrastructure as we talk about that now so as an industry, i think we're in a pretty good place, bullet but need to continue to work together as an industry to serve our customers and really try to restore these customers that are impacted as quickly as we can. >> yeah, it's terrific you guys are all this in place. i remember in sandy, people said you could see power trucks from all over the country there certainly helps to explain what's going on. trevor, thanks for joining us. >> yeah, thanks so much for having me. >> trevor lauer from the dte electric i had no idea there was a tropical storm in michigan in march. >> imagine >> so a lot of crazy stuff this year much more on hurricane irma. special live coverage here on cnbc starting at 7:00 p.m. eastern time make sure you stay tuned for that. apple trading higher today ahead of its latest phone debut tomorrow the tech giant will also reveal its new multibillion dollar campus we're going to get a little preview of both next. while the damage of

hurricane irma is less than expected so far, the auto industry could feel major pain from this storm. we'll have that coming up. siss, rsinching cnbcfit bune worldwide ng your passion, not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. at ally, we offer low-cost trades and high-yield savings. but if that's not enough, we offer innovative investing tools to prepare you for the future. looks like you hooked it. and if that's not enough, we'll help your kid prepare for the future. don't hook it kid. and if that's still not enough, we'll help your kid's kid prepare for the future. looks like he hooked it. we'll do anything...

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seriously anything, to help you invest for the future. steve, other than making me move stuff, i'm here at the td ameritrade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. welcome back apple is not just unveiling one big-ticket item tomorrow, it's unveiling two. the latest iphone and its new campus joshupertino wit a preview of both for us josh

>> reporter: kelly, i'm at apple's new corporate campus called apple park. actually see the main ring-shaped campus right behind me here. the campus does really reflect the vision of steve jobs in fact, it was so important to jobs that he personally presented his plans for the campus to the cupertino city council a few months before he passed away in 2011. >> i think we do have a shot of building the best office building in the world. i really do think architecture students will come here to see this i think it could be that good. >> reporter: tomorrow, apple is expected to introduce a number of products and the event is going to take place at the new steve jobs theater, an auditorium that seeats 1,000. we expect apple tomorrow to introduce the new flagship iphone the anticipated features include a 5 inch o-led display

facial recognition to unlock the device a.r.-related sensors and cameras. wireless charging. improved water resistance. reported price tag of $1,000 investors ahead of this event have piled in. apple stock has surged some 40% already this year. so can apple now meet those very lofty expectations going to find out tomorrow the event kicks off here tomorrow at 10:00 a.m. local kelly, back to you. >> you know, josh, for be it for me to question steve jobs, i just thought i heard some reports of employees who said that they found the new digs, completely open concept, right, a little bit difficult to concentrate. >> reporter: yeah, i mean, listen, there were architectural crit critics, kelly, even when there wererenderings i remember one critic called it a retrograde cocoon. apple accounted, in fact, this campus is the model for the 21st century. you're right the idea behind the campus was

to really create greater creativity and collaboration in part by housing so many people in one location. i mean, in that one main ring-shaped building behind me, you're going to have 12,000 employees, kelly. >> wow all right. josh, thank you very much. see you tomorrow josh lipton. michael, the stock up today. up big this year up huge over the past year and everybody -- this is what we were talking about at the top of last hour, knows about the selloff effect after the new product is launched. >> exactly. >> it does have a tendency -- >> right, brings up the question, is what everybody knows worth knowing or acting on it's a really tough call because you do mention it's up 50% in the last 12 months, the stock. on a five-year trailing basis. it's actually trailed the s&p 500. because in september of 2012, it was one of those iphone launch peaks and, in fact, that was the year you had this ridiculous run before that and it really backed off and consolidated after that. it's difficult to know you know, guys like josh have to try to figure out what the expected surprises are

is there anything about the new phone features or other -- >> that we don't already -- >> -- that we haven't already built in that's why we'll watch tomorrow. >> the only remaining element of surprise i thought jeff fowler today was saying, people, is there anything this phone is going to have that a samsung phone doesn't already have >> that is the question. the secondary question is, how much does that matter? reports today that $1,000 price tag is a little bit scary, in the chinese market, is it going to matter there? a pure luxury good there over here, the case that it's a huge install base of products right now, people poised to upgrade, is legitimate. >> yeah. >> i don't know how much further that gets you. >> i look forward to see if they do something cool. >> of course, i just got, like, a 7, just to kind of put me out of the runrunning. >> out of the market. >> i got the air buds. air pods whatever we're calling them. they are are antastic. >> that's what i hear. >> they're like my favorite thing that's ever -- >> they make you look really cool when you walk around. >> complete dark but i'm used to that >> yeah. >> it's so freaky, you can be on

a call and the phone's over there and you're over there. >> makes so much sense because of how many times we've tangled up in a cord. >> i'm telling you, it is really, i go to hand it to them for those air pods. >> that's next >> houns of thousands of cars are damaged or totaled from hurricanes irma and harvey some say that's good for the auto industry. we're going to talk about that means for the automakers next. fast money, a technician saying you mit bter ghbeetoff sticking with the u.s more closing bell right after this ♪ top speed fifty knots life on the caribbean seas ♪ ♪ it's a champagne and models potpourri ♪ ♪ on my yacht made of cuban mahogany, ♪ ♪ gany, gany, gany, gany ♪ watch this don't get mad (bell mnemonic) get e*trade and get invested

welcome back we have a news alert on equifax. ylan has the details.

>> the head of the senate financial economiee heading the letter to the ceo demanding more answers in equifax's investigation into the massive data breach. senators orrin hatch and ron wyden want to know who knew what when, special three executives who sold stock just days after this breach reportedly had occurred the senators are also asking about equifax's treatment of consumers in require consumers to opt out of the arbitration clause that would have prevented them from joining any class-action dispute the other from the senators to rick smith has 13 questions in all, four pages long the senators say they're word the data breach will cause irreparable harm to consumers going forward. >> equifax down 20% over the wiest week

ylan, thank you. president this to avoid potential damage from hurricane irma phil lebeau joins us with the latest on how it's impacting the auto instrument. >> so far the impact is litted not as bad as many people were fearing when they sauce irma churning toward the crib was one reason why, we're not seeing quite the level of flooding when we saw herve harvey swamp all of houston in in the southeast texas area, an estimated 210 to 250,000 new vehicle sales will come off the rate, but in erms it of the number of vehicles scrapped, according to cox automotive between 200 and 400 thousand compare that with harvey we saw the scenes time and again of vehicles that were basically up to the roof in terms of water. 500,000, at least 500,000 are expected to be scrapped because of harvey. that's because of the flooding

ruins a higher percentage of vehicles there, also a greater density of vehicles in houston and southeast texas than in florida. when you look at used vehicle values, this is where we'll see the impact they're already as a record high, this is the mannheim use vehicle value index. that will be pushed even higher to the auto -- the autodeerer stocks, auto nation, even a group lie sonic automotive they're all moving higher in part because they'll see greater business over the months to come, though some of these chains still have stores closed primarily because of power or the associates can't get into work they'll open up, though, over the days to come, and might actually get a boost out of this for now. thank you. >> you bet. coming up the ceo of p & g

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nelson peltz, but he just hand heard much listen. >> i believe it's important to listen to investors, but in the first few meetings he didn't advance new ideas and the few he did were not right for the company. a company that has people empowered and accountable, we're there today. we're executing. the last thing we need right now is a reorganization. >> of course, you can catch the rest of that interview tonight at "mad money" at 6:00 the similarities between what's happening ear and the way adp is trying to fend it off. >> what's interesting is the market when it comes to p & g, that stock has outperformed colgate and clorox in ten percentage points, which is about when he disclosed.

>> so how much is it up in the last couple months >> basic roye it's taken a vertical leg up. so it laskly shows that investors can either win whether peltz is on the board or -- >> does he need to do anything at all >> that's the question, right. which might be why an activist would go and you have a company like this. they know there's a way to help returns and they look for the pushes. >> one of the things he said was peltz has been on the board, now you're going to bring to the table, we're a huge company, this is going to cause disruption i'm also thinking, i think it was ppg that recently fended off a takeover only to have to do a massive restructuring itself i understand the companies don't want to shake things up, but sometimes you have to make the change now or -- >> one get is whether others are investors, basically don't drop this i don't know if that's going to bed case or not.

>> do you think that will be the next step, as you mention it, what kind of support from the other shareholders does nels been peltz ultimately have >> right >> right now not a lot of vocal support. they're largely in -- p & g management seems to have an advance here if you look at the front page of the journal with this long story, the leader as they calm they on kirkland's signature at costco, 25 percent of its sales now is its own private labeled product. it took the example of kind bars saying they were selling 18 for 18 bucks, and between a mix of low almond prices and realizing they could disrupt, kirkland came in, undercut them. >> and p & g has been saying it's not like we're not asking for better shelf space and prices, structurally the market isn't there for us. >> it's very challenging as i mentioned, more is coming

up on "mad money" and be sure to design in for live coverage of the "delivering alpha" conference today, and we'll gets julian robertson's best ideas. don't miss it. we'll see everybody tomorrow thank you, michael that does it for us, "fast money" starts right now. "fast money" starts right now, overlooking new york city ease times conveyor, on tonight on fast, it's the moment of truth for apple. shares are soaring where fans are expected a new iphone 8 and new iphone x will it live up to the hype? we have the details. plus the kreismt off of protect are & gamble, to talk about nelson peltz whose ideas he's calling dangerous. later in stock