of one guys >> guy >> mel, thanks for carrying for me for two hours i appreciate it. >> thanks for joining us. >> you're a frpro. >> our thanks to you, guy adami, for riding shotgun on this coast to coast edition of "power lunch. we're of course watching shares of apple now down 1% as we go into the final hour of trading. thank you so much for watching "power lunch." "closing bell" starts right noup now. hi, everybody. what a day we have here. so much going on delivering alpha conference all day. we'll have more on that shortly. the apple news, several product launches anyway, welcome to "the closing bell." i'm kelly evans at the new york stock exchange. >> which would make me bill griffeth apple announcing the new iphone. it's the iphone 10 >> but do you think people will really call it the 10 or going to call it the x i thought it was mac ox 10.

>> it's iphone 10. i want to know what they're going to do in two years after the iphone 9 is introduced, what are they going to call the next one? already have an iphone 10. >> skip to the 11? >> i digress we have all the details of all the new features on that. plus business leaders are making news at cnbc and institutional investors delivering alpha conference. we'll take you live there in a little bit. >> jp morgan chair ceo jamie dimon is about to take the stage any minute now that conference. we'll bring it to you live as it happens. he's already making headlines today saying the bank may no longer give intraquarter trading guidance and saying bitcoin is is a fraud >> wow that was -- that's gotten everybody's attention there. equates it with tulips if you don't know what he's talking about, look it up, kids. let's start with the breaking news out of apple there in cupertino at the new headquarters brian sullivan is there with details. brian? >> reporter: hey, bill and kelly, thank you very much a lot to wrap up here. the event just concluding at the

brand new steve jobs theater behind us. the shot looks fake. it is not. part of their $5 billion new campus $500 million of that is mulch, by the way anyway, i digress. let's get to the main headlines here what investors are going to care about is the iphone, 55% approximately of apple's annual revenue. they launched a bunch of new phones, guys, launched the iphone 8 line which will be available september 22nd, start at $799 for the 8 plus which is the bigger the one that's going to get all the attention is what you guys were joking about, the iphone 10, the roman numeral, why i got everybody confused with the x as well they did it, it's a tenth anniversary special edition. that's why they blew right on by the 9. it's all glass wireless charging. all kinds of new features. i think what might get the headlines is that it's $999 to start, but, of course, most people are financing their phones now, price tag may not stall anybody out. that's going to be the key thing, though. guys, a couple other

announcements here, one thing i think is maybe the coolest thing they announced, might not move the stock needle but the apple watch 3 is going to be available in a cellular. if you have an apple watch, kelly evans, i could see you as person who -- >> i have the old one. brian, i said i love everything about the old one except i hate having to carry the phone with it so now all of a sudden you could finish your -- >> out of your mouth. >> -- and text somebody and say, here's my location, and come find me. and, you know, i think this -- i'm with you >> reporter: bill griffeth -- >> awesome feature. >> reporter: bill griffeth, i'm somewhere between you and kelly. this is no age joke. remember the dick tracy thing? we finally got -- you can be out anywhere now and make and receive calls, stream music through your air pods as well. also a new tv product called apple tv 4k. the interesting headlines there, new amazon tv app.

former enemies now frenemies amazon tv available on apple tv and also live sports are going to be available through the apple tv as well so, $999 phone, available november 3rd the dick tracy/kelly evans apple watch, amazon app on apple tv. live music lots of mulch. a beautiful new building they're going to come out and do the demos. maybe tim cook will stop by. i doubt it we'll try. all we can get is a no. >> another fitbit i have to get rid of when i get the -- i hear the new phone -- the new phone has a better camera to it so it will be almost as good as the blackberry camera i would imagine. >> i mean, they'll have to pry that thing out of your hands. >> not going anywhere. it's right here. brian, thank you good job as always. >> thank you very much elsewhere today, i had the opportunity to sit down with julian anagement, during our conference, said he's seeing

warning signs in the market. take a listen. >> well, we're very, very -- have very high valuations in most stocks. the market as a whole is quite -- i think we need interest rates to appreciate, to go up. and to be -- because i think we are creating a bubble. >> a bubble in the market? in the stock market? >> yes, ma'am. >> there you have it from julian robertson, himself is the stock market in a bubble? are interest rates too low joining us in our "closing bell" exchange today, craig hodges from hodges capital management, keith bliss is here with us at post 9 rick santelli checks in from chicago. julian robertson has seen himself, his share of bull and

bear markets -- >> yeah, got a little experience, julian du. >> if you look at traditional metrics, he's absolutely right on look at the s&p 500 p/e ratio, above 2,500. the median is around 1,500 sure, it's extended. here's the counterargument to it, number one, it's not close to getting back to where we were extended back in the 2000 timeframe in even 1995 when we had the irrational exuberance comments moreover, we're getting to these valuations today is a lot different than where we got to back in 2000 and 1995. the third thing i would say is back then investors were buying everything they could to get in the market they've been comfortable with these valuations for several years now. so if they're comfortable with p/es expanding and staying there is, t the market overvalued or e a new paradigm i suggest we have a new paradigm the other point he made, if interest rates come back fast and furious, which i don't believe they will any time soon, we've been in a secular decline on the ten-year yield for 20

years now, nothing to suggest we're going to get up to 8%, 9% like we were when i was lending money in the early '90s which made it hard to lend money at those types of interest rates. >> i imagine. >> i don't see that being a real problem for the equity market. people will remain comfortable the point he's making is capital goes where capital gets rewarded right now that's in the equity market. >> he actually said he doesn't believe that companies like facebook and google and microsoft are overvalued so, you know, there's still places where even as you say, you know, things overall look like they're in a bubble, they're still good investments to be had. >> i would totally agree with that statement parts of the market very much are overvalued here at imagines capita shodgesf the market being ignored, being forgot about, trade at low p/e multiples growing equal with p/e multiple great rates it depends when you're buying an etf, you're buying the whole market

being selective with your stock picks, you can pick the parts that don't have much downside risk but still do have the growth it's hard to say we're in a bubble i don't believe we are none of the signs of a bubble with the euphoria and individuals being enthusiastic about stocks and just a lot of the greed things you see in bubbles. i don't think those are -- those are really an ffable right now we've been waiting for a selloff for at least over a year one will come and we'll take advantage. >> hey, rick, for the interest rate part of julian's argument, you know, the three-year note auction yesterday was soft today the ten-year note auction, the ten-year auction was lack laughts lackluster as well are the bidders saying they feel interest rates are too low as well >> reporter: investors definitely didn't have high demand for either auction so the only logical conclusion is they didn't like the pricing location you have to be correct on that but we don't know if that frame

of mind is going to just be digital, are day going to stay that way, they can always change i think julian robertson's comments are spot on my only difference is when i look at interest rates, first of all, we don't know how overpriced they are, how too low yields are there's just no way to tell, but central banks have been manipulating rates lower, a lot of the benefits of that is stocks where i differ from everybody else is -- i don't see big corrections on the interest rate side i don't think central banks will allow it i think if they try to taper, remove accommodations, the markets have fits, i think they're going to pull back a little bit i imagine two large buckets. one bucket is fixed income, one is stocks. the stock bucket is obviously more full. i think that when it does shift, it's going to be more gradual. i think when rates are allowed to be rates and go up, it's only going to be under the conditions that will be a little bit more kind to the level of stocks because it will be underpinned by better economic growth

someday i hope. >> keith, even as we had sharp declines in the market, the 200, 300 point drop in the dow we had on the last week or two on north korea concerns, for example, the comebacks have been almost even sharper. just looking at the dow, we're 16 points away from an all-time high he hit that already yesterday in the s&p. almost as if all of that never even happened. >> that's right. that's the frustrating thing for people on the short side, looking for the pull becomes to g get into the market. that's precisely what we're seeing in our work, there's nothing to suggest to me that a big selloff is in the offing a lot of that has to do with the interest rate picture, has to do with the managed monetary supply and the yield curve globally, not just here in the u.s until those conditions change which they won't, because we debate a quarter point increase every time the fed has a meeting, they just won't change any time soon. therefore, stocks are going to be where the money is.

>> craig, before we go, very quickly, just to make this meaningful to investors, you guys are classic value investors in so you say you find pockets of value give me a quick for instance. >> airlines trading at a very, very low multiple. airlines have changed tremendously a lot like the railroad business it was uninvestable for 50 years then it became, when it was right sized, it became investable same thing with airlines we're doing to basically three big airlines and southwest buffett's even buying airlines trade at low multiples gone are the days of big losses and they're underowned they're basically just trading vehicles for hedge funds but you look at a company like american that's bought 35% of their stock back in the last three years. >> right. >> earnings are going to go up tremendously and you're seeing like a 25% selloff in airlines the last month and a half or so on very little change in their business forecast so there's opportunities like that >> great stuff good conversation, guys.

appreciate it very much. craig hodges, keith, rick santelli, as always, my pleasure. up next, jp morgan ceo jamie dimon about to speak at the delivering alpha conference. we'll bring you his comments live as soon as he takes the stage. that should be very instructive. stay tuned she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there. even if it's chasing squirrels, so let me get this straight. you're a rabbit? im vern, the orange money retirement rabbit, from voya. riiight. and that means...?

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all right. here's jamie dimon with andrew ross sorkin. initially talking about economic growth and how sluggish it's been here we go let's listen in. >> it's our policies that's what's doing it to us we should change the policies for the good of all americans. lending. another one. we haven't affected lending. absolutely untrue. okay any small businessowner has a hard time, hard time getting a loan existing ones don't. mortgage lindin inglending. because of the higher cost of mortgaging less availability. most of the young unemployed immigrant, self-employed immigrant, we think mortgages are going to be $2 trillion higher cut that number in half. make it a trillion that, alone, adds 10% to lending. would add to growth, small

business, middle market, rugs, everything home building, household formation, and tell me when a -- the fact is we are it what it is i can't change it but i do think these things are policy issues and not just that's just the way it is. it's not just that way >> when the new administration came into power, you were relatively optimistic that things were going to get fixed that a lot of these issues that you're talking about might be tackled. today, more or less optimistic >> when you say optimistic, i don't know you all see washington, it's a very difficult place i urge the folks in washington, we need collaboration, thought, analysis, policy, to get stuff done when it was optimistic is the agenda that the administration had come up with, corporate tax reform, infrastructure, regulatory reform, education, work zilskills, that is part ofe right agenda consumer confidence gone way up, business confidence has gone way

up confidence is a secret -- i do think it matters look, with all the stuff we're going through, by day, the osdd, the odds of the bookmakers, the odds of successful reforms are coming down like this doesn't mean they're not going to try you had secretary mnuchin here you have very smart people who will try to get some of the stuff done not an expert in washington. don't know if it will get done we're going to do our part to -- >> you're spending more time in washington than ever before. a piece out last week about the amount of time you're spending in washington talking to digit l different lawmakers. are you not more pessimistic, yourself, about where things stand today? >> i'm not that kind of person, okay i wake up in the morning and give it my best. i don't guess about optimism, pessimism, stuff like that i'm going to wake up tomorrow and give it my best. wake up the next day and give it my best. it is what it is i don't go to see lawmakers. all my regulars are down there the fdic we have forms down there business roundtable. aba. the fsrt and we obviously go see -- get

involved in legislation and stuff like that. being the chair of the business roundtable, obviously i'm doing more of that the reason i'm doing that is the brt, which is 200 large companies, huge positive force in society, it could be a huge positive force for good policy around tax, immigration, infrastructure, trade, work skills initiatives so the ceos want to get those things done, too. and they're very important because it's good for all of america. that's why because it will create jobs. because it will create more middle wages and wage growth that's why it's important that businesses get involved in doing the right thing. >> i want to read you something about yourself, if you're jamie dimon, you always had access, tim pawlenty, ceo of the financial services roundtable. he said the difference is he wants it, he wants to play a role in policy more broadly than just representing his company. is that true and if so, what changed for you? >> look, i've been the brt for 10 or 15 years when i became the chairman of the brt, obviously i did it for two reasons. i think it's more important than

it was before. i think it's critical we get business involved and getting it done right okay it will not be done right by government, alone. can't be done right by business, alo alo alone. a lot of businesspeople say we have to get more involved. we can't abdicate all this stuff without thoughtful policy. i really believe it. i think if business doesn't get involved, it leaves a huge vacuum actually secretary mnuchin is up there saying business needs to be involved to have the right policy and design. can't be parochial if you present yourself to the american public, it's all about your personal regulation, and this is just good for your business it won't work. so the brt is a large group which is doing policy, which is good for america obviously it will be good for business >> okay. you have a seat at the table via the brt. but you also had a seat at the table as part of this earlier ceo council but got up from the table after charlottesville. we heard from steve schwartzman. earlier today about this subject. how easy or hard was that for you and given the various hats

you are now wearing? >> first of all, the group disbanded so it wasn't my decision and i think for a lot of people, i mean, this is -- the press makes a huge deal. it's not a big deal. most presidents have councils. they usually have a limited life most presidents, prime ministers and around the world they ask for help, you should help. that is. what your job is you can't say i'm not going to go help a new president of the united states. i think at one point became more of a distraction was necessary, that's all just in a group -- it doesn't mean the ceos in the group aren't going to be involved in a way they can be productively involved means this group, itself, may have become more of a negative than positive. >> you said earlier when you get on the airplane, the airplane become america, you better be rooting for the success of the pilot. >> yeah. >> did anything change for you >> no. >> like, by getting off of the plane to some degree >> can you imagine me standing in front of an audience like this and saying i'm not in favor of the president of the united states being successful? i'd be a traitor

we should try to help the president be successful. that doesn't mean you agree with every policy, doesn't mean you agree with every issue it's called a democracy. you don't just not talk to anyone i didn't agree with everything president obama did but we were always engaged with the government i'd be engaged with any government we're engaged with governments around the world i don't understand the concept of somehow you don't try citizens of the country and asked to help. >> you came out and were relatively critical of the president. how unconfidemfortable and complicated is it to speak your mind in that way given most ceos didn't do it until there are a group of them? >> look, again, i say that people have their own -- sometimes it's personal. and sometimes you represent your company. but i think most ceos come out -- i think -- i think a lot of people came out and said we feel differently about immigration, feel differently about what should have been said at charlottesville, feel differently about daca a lot of people feel digitally abo

digitally about that generally ceos aren't public mouthpieces, don't want to go out and have an opinion every time something happens we have 250,000 moeemployees we want to make sure when we do things we walk the talk and do what we say, that's around diversity, immigration and things like that. >> one of the issues people have talked about is the idea of dea deregulation a lot can be done without true legislation. do you think jp morgan or other businesses you represent through the brt have felt any level of deregulation taking place thus far? >> no. >> no? >> no, not financial and the reason for that is there's still -- they still put the people in the job, the head of the occ, vice chair of the head, the head of the fdic hasn't been nominated yet. i think personnel policy in some cases, have to go through a

process inside the central bank or occs. isn't like oner. comes in and makes a change. we're not expecting legislative change going to be too hard to change it we're not asking for it. we're not asking for it when they talk about it, everyone talks about it you know, even the -- binary we're not going back to where we were no one is asking to go back to where we were. not if the remotest thing, we have more capital, more liquidity. take lehman brothers today lehman would have 2 1/2 more times -- twice the debt would be triggered and the fdic has the authority to take it over none of those things were true before it wouldn't have failed. if it was failed, it would have been managed with an ease, an ease and no loss so there are a hot of good things done. we've always said. what we're talking about is calibrati calibration. so we're talking about the mortgage business, okay? that needs to be recalibrated. by the seven regulators involved in that. volcker isn't that big a deal to us but slr, i won't bore you, capital, things which i think

are distorting markets, removing liquidity, make it a little harder, make it harder to do small business lending so it's the -- some of the policy issues. i think those should be calibrated for the country not calibrated for jpmorgan chase. you know, if i said to you, there's $1 trillion of idle capital sitting around never to be used again, you'd say how much do you need for safety and soundness? that's a good question answer the question. don't just say it is what it is, it's going to be there forever we tied up a lot of money in capital liquidity. can't be used. not just the banking system. elsewhere. lot of companies holding more capital and things, liquidity, because they think they need it. it's important people have a rational conversation about what could be changed and would be good and better for growth, would be better for this industry, for that does it increase -- does it make banks any less sound i'm not in favor of making banks less sound i c a healthy economy makes banks more sound.

>> what do you make of the comment janet yellen made just two weeks ago? seemed to take an implicit shot at the administration and the idea of deregulation, the idea, perhaps, i think the phrase was perhaps memories are a little too short since the financial crisis >> i -- again, i look at that, that's a statement, but to me, the fact is no one's asking to go back there, so if she was just making a statement against -- people want to go back to what they have, that's not true that's not detail about collaboration, on calibration. she also said, if you read it, at the end of her course, some things will be looked at and modified a bit okay both are true. let's not go back to something that's a problem, make sure we calibrate the things that might be a problem trade finance is way down because of this. there's no risk to it. repose down because of this. they cleaned up the bad part of repo and repo reduces some liquidity in the marketplace to valid marketplace players. i'm talking about hedge funds, super -- i'm talking about to

money market funds you know and people who need short-term liquidity. you got to go through each one and do it, not the just make a statement that it's got to be more or less calibrated properly. >> as you have -- extent you've had your own mistakes at jp morgan, the extent you've watched the more recent mistakes at well s fargo, what's the lesson when we first heard about the mistakes you were somewhat sympathetic. >> i never find joy in problems other people have. of course, we always do, you know, whenever there's a problem, we always study to make sure we don't have it, ourselves, we didn't miss it we read about consent orders, lawsuits this is a lesson, i would say some lessons you learn and some you relearn. this is a relearn lesson sales pro -- it's very important inside a company, you're always looking at how they're incented,

what they're doing, what people are actually doing what got changed what got modified. and that's just a lesson you always have to think about you've probably all seen it in areas many times the sales -- and so that's all that we learn from that. >> okay. >> i want our -- i want our competitors to go well okay i'm not in favor of us doing well because they're not i'm in favor of -- we do a better job. >> maybe this is more complicated. equifax. you woke up, you saw u the news, you're spending a fortune on cyber security. >> yeah. >> and you think what? >> i'm not surprised i mean, we've been saying this for, look, cyber is a big deal >> not surprised it happened at equifax? >> i think a much bigger thing cyber is a big deal mind guess is it happened elsewhere, we don't even know about it and everyone's got to protect themselves from cyber. it's a hard thing to do. when you look at the multiple systems, access points, entrance poibt points, it's hard to do. equifax, not going to go through

detail, any problem like this, you look at what happened. could they -- did the crooks find some way in that it just is hard to capture? or should shay have dothey have differently, knew about it and didn't in you now about it and didn't, it's different than they found a back door that's hard to do. sometimes those flaws come from third parties. so you got to go through each one. and obviously they're going to go through it. we're obviously in contact with them about -- my view is always let's worry about the customer first, make sure they're protected. with equifax, jp morgan is going to be fine you know, may cost a little bit of money but not going to be anything material. >> what do you think of the way that responded to it >> i would defer comment until i know more facts. >> when you look theat a situatn like that, take it off equifax, do you say to yourself, okay, they're at fault or they're the victim because either way they're going to be the victim of something. >> look, in all these things, if you were contacted by a major vendor of software, someone

calls and says, by the way, we found a flaw, you have to skrup da update your software, they say we got it, didn't want to do it to save half a million bucks, yes, they're a victim but that's like, you know, me not putting a code on a vault. you need the vault to be properly -- so it depends what happened and how it happened, whether -- they're always the victim but whether they could have or should have. obligation we all have like driving drunk is different than driving having an accident. having an accident because you're texting is very different than having an accident because you had a small fit of some sort so there's always an anatomy to a problem, a lot of detail and we're going to go through it all. i'm sure -- >> from a policy perspective, what should the liability be for any company that has a breach like this. >> that's -- that, again, that is -- my attitudes would be if the breach is because of something you did, you're going to pay, oak? we have tons of system in place. whatever happened there, we're still protecting, and you swipe

that card, debit card, credit card or corporate payments, it goes through 50, 75, 100 algorithms we're not relying just on fathe fact we have your social security number, we're going to make that payment. at the end of the day, there will be a dispute between the parties, who's responsible for what this is not clarified in the law either this basically is a one-off thing and one day it will be clarified. we don't have proper cyber law we need it to be part of trade we need to have a way to go after the bad guys we need a whole bunch of things that could make it far better, that could protect the united states of america. this is one instance that's going to get a lot of pennsylvanattention. it is a big deal there are electrical grids, airplanes, going to be autonomous cars. obviously the financial system it's a big deal. it needs to be -- you can't share information with the government like you could in normal cases you know, because they're not allowed to under federal law today. certain government agencies

can't share information with a bank that should be changed in this instance as you know, would you be very upset if you found out that the federal government can share information with the terrorist groups that protect us from terrorism in new york city you expect that to happen. in this case, they know stuff sometimes they can't tell us okay it's not right because we are, in this case, the cop. we need to have information do a better job to protect you. and so i think we have to real lly look at this and, you know, president obama had a group was doing it and president trump has a group that's doing it. it's just really important to get it done well and it's one of those things that cuts across so many areas it's got to be well managed. >> what about to talk about the banking business we have a group of investors here do you think banking business, itself, is an attractive place to put your money right now? >> yeah. i think banks in the united states are very sound. it's another argument, banks are sound, making record prosts. that's why nothing was held back that's a false argument, too the profits the bank system made

are what they made ten years ago and that doesn't answer the question what they might have done under certain circumstances that could have helped the economy grow i think people -- very simplistic statements which are dead wrong the banks are very healthy here. the capital liquidity. a survey just came out, jd power, trucsted and respected b their clients. they like the services that are coming atms, depositing checks. getting stuff online so banks are healthy you know, you all -- when you make any investment, look at the specific companies decide which ones you want to invest in. >> how are we all supposed to think about what appears to be the disintermediation by all of these new tech companies, virtually every slice of the banking pie? >> i -- i don't know how to answer that. you know, it's not -- that's not the way you should look at it, okay look, you nef want to be ceo of the company, get complacent, say that doesn't matter ever you're saying everything wrong to your people and there are people who have

always been other institutions, nonbanks, fin tech, that do stuff around the service of financial, make a lot of money you want that. it's called a free market. called capital i want competition but if you said to maine, i'm really not that worried, look at certain things we do, ecm, dcm, moving money around, no really that worried i'd be worried if i didn't say we have to do a better job, make that cheaper, better, faster for you. look at some of the things we do, yeah, it should be realtime, not two days later other things should come with information, not without information. we should do straight through process oning on a lot of things i think the place i worry the most about disruption, not worried, but we should always -- payments a lot of things going on, payments, very smart people, they still use the banking system but you can find a way they're going to try to fight not to use the banking system and take trips around the world, see people do quite a good job serving clients, not using banks anymore. right now, most of the payments

at the end of the day either use a debit card, a credit card or ach payment to move money. the banks are doing authenticati authentication, certification, moving money, aml, bsa it would be terrible if we did all that for them and never got paid nr for it. >> you made a comment earlier today that bitcoin was a fraud >> yeah. >> why is bitcoin a fraud? >> yeah, so separate block chain, which is a technology from bitcoin, the currency now there are multiple currencies and so i'm talking about not bitcoin, per se, i'm talking about currencies you know, the first -- the reason -- i'm not saying go short. i know jim was -- bitcoin can tell -- $100,000 of bitcoin before it goes down so it's not advice on what you do. my daughter bought bitcoin, it went up, she thinks she's a genius now but it's -- i did refer to it as the tulip bulb crisis of the 1700s, whatever. here's the reason.

governments, first thing they do is form a currency they like to control the currency they control it through a central bank they also like to know who has it where if is, where it's going. okay china is closing down the bitcoin exchanges. all i ever said is bitcoin, the bigger these thing s get -- the look at it as a novelty. washington, talking about technology, we love technology wait until someone gets hurt wait until it's used for illicit purposes which is somewhat -- they close it down that's why point so it's not, you can argue there is -- i also -- there's a good reason for it. if you were doing -- if you were in venezuela or ecuador, north korea, you're better off using bitcoin than their currency. can't possibly be true in the united states unless they're speculating. that isn't a reason to say something has value because people are going to speculate. that's tulip also like i said, the other reason to close it down, it's used for illicit purposes.

it's not a real thing. eventually it will be -- >> you also made a comment about trading revenue at the bank. in large part, i imagine, because of the low volatility in the markets. >> yeah, but i -- >> off 20% this year, is that -- >> we -- i said the analysts are down to about 20%, sting like that quarter over quarter i think that's completely missing the point. okay it's not that you're trying to hide behind what it is, yes, it's low volatility, it is what it is. we do $2 trillion a day of securities, buying, selling. we do it on 26 tradesing floors around the world we do it across 120 different curren currencies, credit, mortgages, sovereign debt, fx, end users for all legitimate purposes. the business is serving you day in, day out, execution, building technology, do more and more electronic, to do straight through processing, automatic conversions of currencies. that's the business. great salespeople, great ideas, great execution, great

electronics. business, itself, you know, it will have these episodic things. of course, those episodic things will be driven by volatility which can -- sometimes volatility is good sometimes it's bad so don't look at volatility when it goes up, somebody's going do be sitting here saying the reason we got killed is because volatility caused by surprise. you could be on the wrong side of the market. remember, trading is often on the wrong side of the market when people want to sell, they want to sell to you. and sometimes that is like a herd you got to position hedge right, markets, stuff like that it's a business we're going to grow over time it's going to grow -- corporations, grow with needs, going to grow. i think it's going to be a great business over time we're in a good return on it yes, quarter by quarter, goes up or down. we're thinking about now telling anyone anymore bauds it just gets too much unnecessary attention. >> you think you'll change that, for real >> i might >> what would -- >> five minutes every time you talk to someone with the press or analysts. i'm not blaming the press.

>> does the low volatility, by the way, make sense to you, given all the challenges and headlines in the world today >> folks, listen, markets are markets. low volatile until they're high volatile markets, therefore, have always been wrong i think people are making mistakes i can give you reasons why it might be low we've had this fairly consistent, coherent, consistent growth so forget the geopolitical noise and stuff like that. we're chugging along %. europe is doing 2% japan is doing 1.5%. china is doing 6%. you know, earnings are doing okay we've had a fairly benign economic environment that's a reason. i give you another reason is the central banks, the world bought $12 trillion in securities $12 trillion since they started doing qe. that's an awful lot of security purchases that would, in my all things being equal, remember, things are never all equal, can redu reduce volatility and maybe there are other sides to that

mountain those other sides happen, watch out. volatility go way up and someone wants to say they're a genius, figured out web it e ed out wheo happen i don't guess. we do a business and have to manage the volatility. no different than in you're a pizza shop, you manage the cost of mozzarella. that's what it is. that's called business i don't worry that much about it. >> you think interest rates should go up >> i think people will eat more pizza. you know >> you think interest rates will go up by the end of the year do these hurricanes this fall -- >> the hurricanes are irrelevant i wouldn't have any policy matter as a function of hurricanes going to reduce gdp in the short run, probably increase it after that i'll let the economists figure it out almost a $20 trillion economy, that isn't a reason to change monetary policy. i -- it will create a lot of now in the numbers i wouldn't overreact to that very sympathetic just so you know, we're going to do a lot for affordable housing, help get the city and states,

20,000 people in florida, 6,000 in houston most of the banks are waiving fees delaying loan payments offering special services for your employees stuff like that. the question about rate and qe is always important at the same time, say, the why okay so i think rates need to go up and, but as long as the why, the economy is strong and may be strengthening, that's a good reason that's not a bad reason. you know, remember paul volcker raised rates, people may have forgotten, 2%. 25 basis points. 2% sunday night. not in between meetings. on a sunday. okay and he did it because inflation was going up. stagflation at the time. that's a bad why the why, doing well, jobs coming back, people entering the labor force, the economy will dwarf rates, the importance of rates so far, that's what they've been doing. they've been watching the economy and growing rates. i'm hopeful that will continue i think rates do need to go up

and the economy continues to be stable you know, people join the workforce, a lot of capital, markets are wide open. no major potholes in the american economy i'm putting geopolitics aside because that would change, might treat some of these things if they continue to raise rates and start qe, it's in a healthy economy, you'll all be fine. but as a matter of risk management, don't assume that. so when we look at our risk -- our risks we take, we also run the other scenario that inflation rears its ugly head, growth is slowing down and still have to do it. that's a very different outcome. no one knows what's going to happen in the future got to prepare for both. the federal reserve isn't in a position with they can tell you that because they may think that way, too, but that would scare you. they want you to be scared don't want you to save your money. they want you to continue doing what you're doing. >> since the name's come up multiple times today, i want to ask you about gary cohn. would he make a good fed chair

if he left the administration, it would be disastrous. >> i have enormous respect for gary i think he'd probably do almost any job well whether he wants the fed chair, i don't know i don't think you have to be an economist but gary's broadly experienced in the globe, the economies studying economic stuff for years it wouldn't becomforted by the have professional people around the president. steve mnuchin today, gary cohn, rth rtex tillerson, mattis, gen mcmaster, kelly. the president needs strong people gary is one of them. i do think if he wasn't there, obviously there are other people who could do the job, that would be a negative to help people view potential outcomes for tax and things like that. >> going to make it more complicated for you. you've seen the speculation in the press. would he make a good successor for jamie dimon? >> it wasn't speculation someone wrote a fantasy story. the rest of you start repeating it the successor for jp morgan is

inside j prks morp morgan. >> let me ask you a question -- >> like i say, i enormous respect for gary don't confuse the two. but our company is large it's global. we're a consumer business. cash management businesses several people who are unbelievably talented. i should brag, too, by the way, 50% of the operating committee is now women we just promoted one to run technology robin leopold to be head of hr we're doing a great job in that. because they're good not because they're women, by the way. >> let me ask you a question, there have been a number of very high-profile people who left jp morgan over the years and a narrative has developed whether it's right or wrong that great people around jamie have somehow left the building. you made the argument that's wrong, you made the argument -- >> i know. i'm not making the argument. i know who -- >> so what -- what are investors missing then >> i don't think investors have staid wh sf

z said what you're saying. we obviously lost very good people i'm proud of them. doing a great job at their companies. and that's good. that does not mean, you know, very often that does not mean they're going to get the opportunity they wanted inside jp morgan. you're going to have -- no, you're going to have people leave that aren't going to get my job and people say they were forced out or something like that and sometimes they had better opportunities. sometimes they retired their jobs we don't go out there and tell you all why and we're not going to i will tell you we got the best management team ever there's several people that the board -- this is a board decision, not a jamie dimon decision there are several people in the company, the best people we've ever had to take my job. they could do it today and that's the most important thing that this company would be, you know, you'd have good leadership today, if i wasn't here isn't my preference, but it would be okay. >> how long do you want to do it for snoo. >> five years. i told you that. >> why >> i plof whlove what i do.

>> what about five years >> it's a running joke with us i always say five years. first of all, it's not up to me. it's up to the board it will also relate to when these potential successors might be ready honestly, you don't want to lose someone who has a good 10, 15 year run so i get an extra two years. that would be selfish. i'm not going to do that it's a combination of factors. i love it. as long as i have the energy to do it. as long as the board wants me to do it, as long as the management team -- so we've got a great management team. we work well together. we need each other it is a large company, global. we all work real hard. we can't all do the same thing at the same time we feel great about it i would -- if i lost my job today, okay, i would still miss the comrade of coming to the office offer day, calling up, what's going on, explain that to me, let's go do this i would miss the challenge, intellectual challenge of it all, you know? i'd miss having you talk to me about certain stuff like that. and i'd miss the crusade when you wake up in the morning,

you have something you want to accomplish a bunch of people. those three things still feel great to me. so, you know, i wouldn't go do this then. i'm not going to run a big company. i would miss those things. you know, it's not like i'm going to wake up tomorrow and twiddle my thumbs and i -- i'd get bored too quick. i tried. i've tried for a while when i left citi. it's too much. i had to get back to work. >> i want to end on this and it's really a management question the late great jimmy lee, our old mutual friend, said this moral courage is the most valuable and usually the most absent characteristic in men he went on to say jamie dimon has moral courage running through his veins. k when you look this year, 2017, a the managers in america, of public or private companies, who do you look at today and say, that guy, or that woman, has great moral courage? in corporate america >> well, i'm going to -- i'll name two but i think jeff bezos

does, tim cook does. i know a lot of people do. i think it's not that rare i do think it is true. you know, all of you, when you're under pressure, and there'sconflict, something there, it's easy to want to hide in your hole i want to hide in my hole sometimes. i'd rather you deal with the issue. there are certain times you got to try to do the right thing i always tell people do the right thing, do the right thing, do the right thing not the easy thing not the expedient thing. sometimes it's hard to know what it is. sometimes you don't know it on your own maybe part of that moral courage, we'll have a lot of conversations about people, situations, board, before we make a very tough decision we want to make the right decision like i said, not the fast one, not the speedy one, not the expedient one, not the easy one. easy, quick decisions, sometimes they'll come back and haunt you. so it could be getting out of a business, could be having someone leave the company, could be taking a public stand you wouldn't formally take those things i think people should do. in personal lives and

professional lives. >> jamie dimon, everybody. >> thanks very much for having me here. >> the one and only jamie dimon, a man, self-avowed optimism, i would addpragmatist. a guy who's very comfortable in his own skin and it shows. >> can we talk about the anecdote with his daughter buying bitcoin, having it go upper a her thinks she's a genius. >> that's great stuff. >> let's bring in will frfred ft to sum things up. >> bitcoin, he wasn't as explicit as he was earlier when he said it's a fraud, but made it clear even if it's not any time soon, thinks governments will shut it down eventually bitcoin he thinks has a limited shelf life he it seems doesn't have a limited self-life. he joked, said five more years we don't know when his tenure will be up explicit, his successor will

come from inside the company suggested that before. he confirmed that today. and was very clear that his successor would not be gary cohn, though he was a fan of gary cohn. on the trading revenues he said down 20% he said, i'm pretty sure he said year on year in terms of whether or not they'll continue to give guidance, he seemed quite serious on that suggestion on trading. earlier in the day he was more joking about it but seemed relatively serious again, he talked about deregulation, he said this was a personnel issue. personnel is policy in that space. and we haven't seen many change yet, he was encouraged, of course, some personnel taking shape. maybe we got a little bit of that to come which could be encouraging. now banking industry disruption, from technology firms, he wasn't really very concerned about. payments, the only area he said that they could lose share, but broadly speaking it's not something he's too worried about. i just point, again, to those points he said about the removal of quantitative easing pointing to that figure, $12 trillion of

securities that central banks earned around the world whilst he's not worried about it immediately, he said volatility will come back he said panic at some point will come back into the market. but that's just normal, he says. either way, it's something we got to watch when rates do, indeed, go up further from here. guys >> all right >> yeah. i was just going to say, when you hear jamie dimon talk, he makes everything sound so simple that's that pragmatism i was talking about. whether it's talking about government policy on the economy, or monetary policy, or the banking industry, or whatever it is, he just make s t sound simple. >> all very straightforward. >> thank you, wolf. >> appreciate it only ten minutes to go until the close. take a quick break with the dow up 47 points it's almost in record territory right now. the s&p is six points high r from its record close yesterday. nasdaq up 16 the russell up 7 famed short seller jim chanos was giving his best investing idea at delivering alpha we'll get the highlights of that call when we come right back

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(slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

welcome back short seller jim chanos just revealed his best investment idea delivering alpha less than an hour ago. leslie picker joins us

what was it, leslie? >> reporter: hey, kelly, that's right. his short idea is continental resources and a basket of other names. continental resources dipped on chanos' presentation he points to accounting, says thi after things like interest and taxes there's notholders under optimistic assumptions said most of what comes out of the ground gets put back in. calls it a never ending cycle of boom and bust. >> we saw who was swimming naked as the tide came out the problem is that in our view, people have been looking at this industry through the rose-colored glasses of wall street >> reporter: he said wall street is adding back in depreciation and amortization and capitalizing those just as they did with another pharmaceutical name he mentioned last year at delivering alpha, that name was

valient, down 50% since then, guys. >> all right, leslie, thank withdrew veyou very much zbhnchs breaking news on walt disney. >> big news if you're a star wars fan, delaying the release of star wars episode 9 to december 2019 to may 2019. part of an update for disney's full schedule for its films through 2021 and comes a couple hours after announcing today j.j. abrams is returning to direct the film. he is credited for relaunching the star wars franchise when he directed the force awakens that opened in 2015 and was a massive global hit you see starmarginally back over to you. >> he'll co-write it and direct it, that's for sure. julia, thank you very much we will take a quick break with the closing countdown, the s&p and nasdaq in record territory after this

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♪ fly me to the moon ♪ and let me play (bell ring) just inside the two minute mark as we head to the close the dow up 55 points i mentioned the s&p and the nasdaq in record territory the dow held back in part. let me show you first the industrial average there it is. you know, saw its gain and then meandered the rest of the day in far because of mcdonald's. that was the biggest decliner inside the dow today as they're tallying the losses

from harvey and irma one analyst pointed out, bob pisani, mcdonald's has 2,000 stores in the houston area and throughout florida that's going to hurt then apple today with the announcement of the new iphones. that's what the stock has done today. >> the research -- lower same-store sales for mcdonald's in the third quarter, why -- >> absolutely, at a time when they've been on fire has that company going pretty strong right now bitcoin down you heard the comments from jamie dimon. he thinks it's a fraud even though his daughter bought some and made money. >> thought she was a genius. >> yes, exactly. that was down about 3% for a time come back since that time. ten year, very interesting, a soft auction again today as they saw for the three year as julian robertson was saying to kelly, he thinks interest rates are too low right now. apparently -- >> remember the ten year yesterday was soft as well so i think a little less demand for the treasuries

that's good for the yields that's why banks are up. we had a number of expansion of new highs today. 300 at the nyse. pfizer, caterpillar, microsoft, home depot all 522-week highs. bill >> so new records for the s&p and nasdaq hey, how about those new iphones and new apple watch? more on that coming up right now on the second hour of "the closing bell" with kelly evans, see you tomorrow, kell thank you, bill. welcome to "the closing bell", everybody, i'm kelly evans looks like we have record closes again here on wall street. remember yesterday, the s&p 500 managed to post a record close the first time since early august today it not only added some to this look at this, at 2496. three points away from 2,500 on the s&p 500. meantime the dow adding 61 points

look at this closing at 2,218 if it holds on, we're a tenth of a point in record territory for the dow. definitely have to see how that shakes out again, looks like we might have gone over to the edge to a new record high close to the dow jones industrial average gains of a third of 1% for the dow, s&p and nasdaq. nasdaq comfortably at a new high with 6,454 with the gain today and the russell 2,000 the lone index at this point, 30 points below the record it achieved in late july. it managed to add about 8 1/2 points today to 1,423. let's take a look at shares of apple which did ultimately tip lower after it revealed that iphone 10 with the price point of $999 and up apple closed down just about half of 1% we'll get all the details on the new products coming up also ahead, cme chair and ceo terry duffy on what worries him most about the financial markets right now on a day when wave e'e had a lot of warnings about valuations joining me on today's market action, john from zachs

investment research, kim forest, and michael santoli, cnbc senior markets commentator. michael, you're not here, you're over at delivering alpha. >> you're not next to me, right. >> in transit. yes. so bring us up to speed, mike, on what you've heard there and what you're thinking about these record highs r >> reporter: yeah, i mean, i thought the theme that was running through much of the day from the investor perspective was, look, these are fully valued markets, we've come a long way you have to look a little bit harder to get good returns, but we aren't in an environment where if you look globally, if you're a little more careful with your analysis and try to seek those areas that aren't that exploit eed yet, you can be rewarded there's a general sense at there you're going to have to have relatively modest expectation for general investment returns going ahead. people are still finding enough to do, i feel as if. we got that, i think, through some of the best ideas offerings. >> yeah. and we had cooperman saying

bonds were in the bubble, julian robertson saying stocks are in a bubble but kim, i want to bring you in to talk a little bit about apple right now because that's the other major news of the day. tons of product launches lots of dazzling innovations and, yet, you're still cautious about apple shares here. why? >> well, i think it's because i'm a contrarian by nature and that makes me a contrarian investor i think they have a great product lineup, but they are ultimately a phone company and i think that they have demonstrated through ten years the iphone, that they can create magic and by that i mean selling a product that apparently we can't live without and it looks like this new product has features that we didn't even though we couldn't live without and so it should do well for the company. but this price point is really making it clear that this is a first-world product and moving into china sproebl nis probablyn to happen like a lot of apple bulls have been counting on.

you have a replacement market at this point. >> john, what would you add to that >> well, i would say, you know, apple's a great example what's going right with this market because it's -- this new iphone is filled with semiconductors. semiconductors of all types. semiconductors are running at earnings per share growth at 15% a year, kelly, versus the s&p at 10 so you're getting that lift out of the semiconductor shapes. that's driving this market forward. that's creating the excitement that's getting the valuation story in play. and that's keeping us in healthy stead for another few months. >> there's the semiconductor index up 24% year to date. john, what about where we stand on the market more broadly here going out with, perhaps, a trio of record highs? >> well, there's going to be a selloff, kelly, at 2,500 on the s&p. got it figure the algorithmic traders are going to hit that number and sell us off long term -- >> i don't know. i might take the other side of tharkts i might take the side they'll see the momentum go up through 2,500 and say it's off

to the races >> yeah, that might happen for a day or two i'm looking for a selloff back down i'm bullish long term. >> kim, what about you when we talk top level about where stocks and bonds are trading right now? >> i think it always depends on which stocks and bonds you're talking about. again, we're value investors so what we like to do is buy low, sell high and so we're looking at the less favored areas and less favored companies so that is a longer-term sort of situation. not necessarily the stuff that's driving the market higher. so, you know, there's always something to buy if you're a value investor >> yeah, kim, you're -- we're all talking about apple. you want to talk about dickey's, you know -- >> yeah. yeah hey, we're putting people to work and they have to wear something. and apparently vf corp wants them to wear, you know, to expand further their presence into workwear and just bought dickey's for i think $850 million, a good price for that business. >> kelly, i will tell you --

>> go ahead. >> yeah, kelly, i would tell you -- you look at any of these stocks i follow, a semiconductor etching firm, these companies, micron, a memory chip firm, te connectivity making sensors for the connectivity of the world. she's sending us in the totally wrong direction. this is a tech-focused, growth-focused market. that's where the players are. >> all right i feel you're like giddyup, you like everybody get onboard i hear you that's where a lot of the innovation is. michael, let's put this in context. to the point we were making about the s&p eyeing 2,500 now, what do you think about the momentum that, you know, sort of the moves in the market up through that level, or being capped at that level >> i think the fact we sort of have marked time for more than a month in the index, it's kind of gathered up a little bit of its energy to make that push in late july i was sort of

saying, look, it seems to have a date with 2, 5500. definitely encouraging you got the mild followthrough on the s upside, went above the former intraday high. say the market is up, say, 10%, 11%, this year on this cocktail of relatively easy money, nice global growth, earnings rebound, high liquidity, all those fa factors, you would have to say what's actually changed about that it's pretty much in place. therefo therefore, this kind of grind higher does make sense on the other hand, you're not seeing a lot of affirmative, hey, i want to take a lot of risk and buy this market with both hands type activity continues to be inching ahead as opposed to blasting off. >> yeah. all right. good point we've had a lot of headlines from delivering alpha today. just last hour andrew ross sorkin spoke with jp morgan's jamie dimon. here's what mr. dimon had to say about the president's economic adviser gary cohn. >> gary's broadly experienced in

the globe, economy, economies. i'm sure he's been studying economic stuff for years it wouldn't be disastrous. we're all comforted by the fact you got professional people around the president the successor for jp morgan is inside jp morgan >> andrew joins us now after that interview, i don't know, i mean, i just thought it was kind of funny how -- i'm glad you pressed him on this issue of, you know, hey, all these people within jp morgan, but who's going to succeed you, how many people have left? but he did push back against the idea and not surprisingly that gary cohn would be the next leader of the company. >> you know, there was a piece just last week that ran online that was a fake letter suggesting gary cohn would become the president of jp morgan and why i asked the question it seemed to circumstance late a little bit and get socialized over the weekend among some people in wall street. seemed o think it was a real possibility. i asked the question

specifically about gary cohn earlier in the monk with the opportunity to talk to ray dalio, made the comment he thinks it would be disastrous if he were to leave the administration again, echoing this idea that he is one of the very few people in the room that corporate america considers, if you will, an adult. i know some people may take that as a political statement, that's not its intent i do think he's somebody that's connected to this world in a way that many others are not and there's a comfort with him that perhaps -- >> right, andrew -- >> -- others don't have. >> do you think jamie dimon's response is suggesting it's not the end of the world were gary cohn to leave? >> i thought he -- you know, in a very different way than what ray dalio said, i thought he allowed sort of for both -- for both possibilities and, of course, we don't know where this is all headed interestingly, i will tell you, i was surprised, i asked him also about janet yellen's comment about regulation if you remember, she made those

comments just a couple weeks ago in jackson hole. talking about how maybe memories were too short and he called her argument a strawman argument. it's very infrequent where the ceos of banks take even the kindest of shots, if you will, at the fed chair >> yeah, but he didn't mind taking shots at bitcoin, did he? >> that -- that was a bit surprising called it like the tulip like the great -- the great tulips from the 1700s. so, yes, it was -- it was somewhat -- i don't know if it was surprising we asked him about bitcoin before he made similar comments he was probably a little more aggressive than he had before, of course, the funny part about that was when he said that his daughter had bitcoin, of course, it's gone up as he said, she now thinks she's a genius. >> he also at a financial conference earlier said he'd fire any trader trading bitcoin

for being stupid, that bitcoin would eventually blow up and it's a fraud let me turn to mike for a second, mr. santoli, dimon talked about the idea after telling people trading revenue was down for the third quarter he might stop providing guidance on that. what does that tell you about changes at jp morgan >> i think he tells you he's exasperating at guesting the same question, having to answer the question from analysts and journalists every time even one of his competitors has a weak quarter. i did like his little metaphor tharkts li that if you're a big bank like jp morgan, like owning a thispi shop, complaining about the cost of mozzarella. part of the business, you shouldn't use it assen as an excuse it ebbs and flows. over time it's going to grow i do think he's glad about jp morgan's franchise within the business but doesn't like having to kind of explain away sometimes when short-term rult s

results don't live up. >> i like the way you said mozzarella. >> that wasn't even more -- >> rolled the "r." >> wasn't even the extreme strict pronunciation. >> i could go all the way. >> could you go a little -- >> not the way jamie said it, put it that way. >> all right thank you, everybody appreciate it. great stuff. thanks for joining us here to kick things off. with some record closes, as i mentioned on these markets at this hour. shares of apple are closing lower after the tech giant revealed two new iphones, 8 and x. we have a bull/bear debate on the stock next. i interviewed hedge fund manageme manager, julian robertson, we'll bring you his thoughts on apple, the faang and his best ideas coming up. contact the show via twitter, facebook or send an e-mail to closingbell@nbcuni.com you're watching cnbc first in business worldwide.

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welcome back apple today unveiling, finally, the new iphone x, technically it looks like an x.

josh lipton wascupertino, california, and joins us with the juicy details. josh >> reporter: so, kelly, let's start with the star of the show today. that was the new iphone x, apple calling it the future of the smartphone let's run through new features and capabilities. include the edge to edge 5.0 inch o-l.e.d. display. no more touch i.d., kelly. instead, face ic. d. going to use facial recognition, your face, to unlock the device. apple saying this is more secure than touch i.d new and improved camera system allowing for better photo, videos and image processing. powered by a new faster processer. the a-11 bionic. it's going to run ios 11, the new mobile operating system. it also benefits from wireless charging rbc serving potential customers prelaunch and found wireless charging was the most attractive feature they were looking for.

iphone 10 starts at $999 orders begin october 27th. it's going to be available november 3rd now, in addition to the iphone 10, we were also introduced today to the new iphone 8 and iphone 8 plus. new glass and aluminum design. 4.7 and 5.5 inch displays. redesigned stereo speakers apple says they're going to be 25% louder faster processer a.r. enabled stronger camera. these phones, too, benefit from wireless charging. 8 starts at $699 customers can begin ordering them on september 15th they're available on september 22nd apple did send a statement to cnbc saying that the pricing and availability of the new products was taken into account when they issued that q4 guidance. so what they're saying is no change in that q4 forecast apple telling cnbc "when we issued guidance for q4 in july, we anticipated that iphone x would begin shipping in fiscal

q1." guys, back to you. >> by the way, josh, when you were in there, i heard there was some reports about when they tried to use that facial recognition, it wasn't working is that right? >> reporter: i didn't see that, kelly. i have to go back and look craig did give a demo. i didn't catch that. you know, certainly with face i.d., they're saying it's going to be fast it's going to be reliable. it's going to be more secure than touch i.d we'll wait and see of course, it's up to consumers to see whether they think that's true, kelly. >> yeah, for sure. josh, thank you. our josh lipton in cupertino joining me, robert luna, ian winer, ed lee are from recode, and connie from cnet also at the event to talk more about the significance of what we've just seen ed, i was struck by the fact if i have this right, they said, oh, look, there's a one in a million chance that this phone recognition will be hacked. >> you could trick it, right maybe. >> there's 6 million or 7 million people in the world so as mike pointed out, that's

6,000 people walking around who could unlock my iphone. >> exactly if you're wearing a ski mask, trying to unlock your iphone, not going to work, either. so, weird technology certainly. >> it's weird but at the same time, like, this is supposed to be the next big thing. even art cashin was saying on the floor today the traders were excited about this announcement because equifax revealed how about the current access and storage of personal entry data does not work. >> security privacy has become such a big issue for tech companies. if there's a political element around this, right, just because of the tech companies are getting too much power they know too much about us, have this data around us now they know the exact contours of my face it's all done with sort of this earnest effort to make everything more secure a lot of the data stored locally on your phone, not on apple servers somewhere. all that stuff is good this is absolutely the best possible smartphone you could make today. >> okay. >> which is -- you know, what you'd expect from apple. i guess my criticism if there is one here is that this is not

necessarily the smartphone of tomorrow this is what we're always looking for from apple all these innovations, a lot of them were found on samsung phones a year or two ago. >> ian, are you an apple lover or hater >> i don't like what's been announced today. unless you're looks for a samsung s8 knockoff that costs 50% more and has been delayed, i mean, that's basically what you got today. so i'm not sure -- >> come on, wait. >> -- what's so exciting. >> robert luna, you're an apple lover, would you defend the features they announced today? do you think they're very exciting >> i agree, the iphone 10, or x, whatever you want to call it, is a littile overwhelming. the big thing, honestly, kelly, is the iwatch, iwatch 3, ability to have cellular on that already announced it's the number one selling watch in the world, number one heart monitor. i think what this is going to do for health care will be absolutely revolutionary it's only 3% of sales right now. so i wasn't as excited about the

i foiphone as others watch is something --. >> i'm glad you said that. i got to confess, i've been excited about the idea of having phone capable in the watch for a long time. ian, maybe that is the focus, right? maybe this -- >> no. >> maybe that's where the excitement is. >> kelly, i actually think this is the greatest cross-selling apple ever did because when people go in to buy the phone and see how much it costs and they're about to have a heart attack, they'll be we wearing the watch as well, it will let them know. >> connie, what do you think about, you know, people using this watch being able to go untethered is it going to be a good experience consumer wise is this really going to be that innovation that apple usually stands for >> well, it's representative of what apple can do. that is changing your behavior and getting you to use a device in a way that perhaps you hadn't thought of before so to that and, yes, having cellular connection, having your phone -- your watch untethered from your phone is a good thing. i'm going to counter what your guy said and that is the iphone

x is actually a big deal to apple users because it represents what apple has always represented. and that is status and with something as silly as animojis, have to be an iphone 10 user to send those to people. >> wait, what are animojis are those animal emojis? >> emojis that are mapped to your face. you can sort of create animations with the emojis by looking at -- it's actually pretty amazing technology. >> is that a snapchat thing they were talking about or a different -- >> it's a slightly different thing. i think it's a great way to show off the technology, in terms of as its usefulness, no, it's a fun thing. what's underlying it is absolutely potentially very, very important and critical. so i think it's the unseen things that are the real advances here and not necessarily in a consumer facing way. the animoji wthing was a way to show off the tech. >> what with you going to say?

>> animoji are a way to show off the tech it's a status thing. not buying a $1,000 iphone x that has capabilities samsung phones have because you want to be on the leading edge you carry those because they're apple devices. >> we got to go. ian, i wanted to give you the very last words here >> hey, i guess it comes down to this do you want a phone that doesn't have a home button or do you want to pay the mortgage on your phone? we'll see what people do. >> okay. thank you, everybody very much appreciate it. connie robert luna. ian winer. and ed lee. >> thank you >> thanks. some breaking news on nordstrom. let's get over to courtney reagan with those details. courtney >> reporter: hi there, kelly, this is a report posted on cnbc.com by lauren hersh, the nordstrom family is close to a deal with private equity firm green for roughly $1 billion to help fund taking that company private. lauren hersh is reporting this deal not finalized and there would be $7 billion to

potentially $8 billion in debt financing from banks as well the nordstrom family would still likely retain control but they still need that funding in order to take the company private. you can see here that shares are up sharply almost 11% after hours on this news that leonard green may potentially be partner for the nordstrom family to help it go private. kelly? >> wow so it may happen after all i guess we'll see. courtney, thank you. >> thanks. >> courtney reagan. julian robertson had a warning for investors at delivering alpha earlier today we'rgog bnghatoe intori tt you when we come right back.

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welcome back cnbc, constitutioninstitutional holding our alpha conference in new york city. voicing their best ideas for the year i sat down with tiger management founder julian robertson for his take on the market and some of his investments. listen >> well, we're very, very -- have very high valuations in most stocks. the market as a whole is quite high on a historic basis i think that's due to the fact that interest rates are so low that there's no real competition for the money other than art and

real estate. i think when rates do start to go up and the bonds become more attractive to investors, it will affect the markets >> this morning, treasury secretary steve mnuchin, he was here, said he thought that fed chair janet yellen is, in his words, obviously quite talented. when asked about her potential to lead the fed for another term do you disagree with him >> i think she's going to probably be asked to stay on for a while, but i think the -- there's been collusion all over the world. let's get interest rates down. and it's not just united states, it's all over the world. i think we need interest rates to appreciate. to go up because i think we are creating a bubble >> a bubble in the market? >> yeah. >> in the stock market >> yes, ma'am.

>> let me ask you about a couple of particular companies just thinking about apple, for example, which has a lot of cash overseas you are a holder of that going back a couple years and they had a big event today and are launching a bunch of new products but has it just become too expensive for you guys is it not -- you know, would you look at investing in apple again? >> no, i think we should definitely look at apple apple is not that expensive of a stock. the -- there are a lot of disadvantages of being an old goat one of the two of the few advantages is the fact that we've seen all this little bit before right now, the apples, the facebooks, the googles, those great growth companies are priced cheaper than they would have ever been in the '60s, '70s, and '80s i don't think a lot of people realize.

>> you're trimming your positions in facebook and google and you're not in apple right now. >> i kind of trade facebook and those things a little bit and i consider myself kind of a long-term player in facebook >> so even though you think the markets overall are expensive, these emblematic tech faang names you actually don't think are that expensive >> correct >> and we've spoken about netflix before, too, which you said that one maybe got a little out of reach >> that might be a little out of reach, but that one is awfully tempting to me because it's run by a really good people and i love it, too does anybody not like netflix? that's like saying you hate santa claus. >> do you have a favorite show right now? >> no, but i just -- i like all of them. >> let me ask you about one more

investment that i know you're a big proproent before we move on, alibaba. there have been plenty of other short sellers who say no way can we believe in this company why are you confident in alibaba's prospects? >> well, i mean, it would have to be such a giant fraud that -- i mean, i can't imagine anything would be that colossal >> we've seen a few. we've seen an enron, we've seen a few. >> well, that was -- i mean, that's dribble compared to this. i mean, i don't think you can disguise sales figures they are really going -- >> the 60% sales growth. yeah so you guys -- you're in alib a alibaba -- by the way, there are a lot of hedge funds in alibaba up something like 70% this year. it's just been a huge -- is this a momentum kind of thing where you go, you know what, great prospects right now, great growth or is this a long-term holding for you? >> i've had a long-term history

with alibaba i bought alibaba at a very low price, you know, probably seven or eight years ago an then sold it when it got to about 100. and i've just gone back into it. i think they're clicking on all burners. >> i know we've talked a lot about bubbles and maybe what's happening in the stock market, but what do you think about bitcoin? i mean, that thing has been parabol parabolic. got any thoughts just in general about what's playing out here? >> i've never understood it, and i don't think i'm going to have you got anybody here today that's going to talk about bitcoin? i'd love to stick around unfortunately, i'm totally incapable of discussing the subject. >> oh, he had some great lines today. mike santoli is back with us from the same conference mike, what jumped out at you >> first of all, you did an excellent job getting him to flesh out his views on a lot of

those topics what jumped out at me, though, was exactly what you tried to pin him down he says we're building a bubble in the equity market he clearly like a lot of managers of his generation who made their money in the '70s and '80s, they don't really think it makes sense to have interest rates so low and have financial assets worth what they are but those five companies, faang plus apple, which he seems to love so much, he says they would be even more highly valued back in prior decades they're worth $2.5 trillion collectively, worth more than 10% of this market he says is building into a bubble so where that brings me is, as a value investor, can't find truly cheap stuff. the average company is probably overvalued in his view and therefore he's in this fix of kind of sticking with the stuff that's worked. great companies everyone admits is great and stimthill thinking we're a little stretched >> one reason he loves air canada, he mentioned that to us, before the election, trading at 3 1/2 tims eae earnings back thn

interestingly, thematic reasons, he likes the cruise lines because he says his generation, you know, the older, you know, people in this country just love cruising so he owns i think royal caribbean and norwegian, michael. >> yeah. i do think the bold case for the cruise lines, no offense to julian, better be that younger generations are also at his age going to continue to want to cruise i think the evidence is there. the bold case for cruise lines for a long time has been it's very underpenetrated look at the total people who can afford a cruise, not that many go every year. i also like, though, what he said about air canada, it was really cheap when he bought it, still cheap now and can't get himself to sell a share of it even though he own s too much o it. >> a great way of putting so many things like netflix and santa claus. michael, thank you. >> that's right. >> we have a quick news alert to get to on americanairlines seema mody has those details. >> reporter: we're looking at americanairlines' august traffic results. the company said hurricane irma caused closures at 40 airports in florida and the caribbean

including the company's hub at miami international airport and resulted in more than 5,000 flight cancelations. the company is also reducing its third-quarter guidance on a key revenue metric as well as margin guidance in addition to hurricane irma impact, the company is citing higher fuel costs. the stock not really doing much after hours, slightly higher, in fact kelly, back to you. >> all right, thank you. it's up about a third of 1%. time for a krcnbc news updae with sue herera. >> hello, kelly, hello, everyone here's what's happening at this hour president trump meeting with malaysia's prime minister at the white house today. he praised that country's decision to stop doing business with north korea but was skeptical about whether the latest unanimous sanction vote in the u.n. security council will have any impact >> we think it's just another very small step, not a big deal. rex and i were just discussing not big. i don't know if it has any impact, but certainly it was

nice to get a 15-0 vote, but those sanctions are nothing compared to what ultimately will have to happen hurricane irma leaving a trail of destruction in jacksonville record flooding overwhelmed streets and neighborhoods. aerials of the area show many roofs peeled right off structures were splintered and debris scattered throughout. hundreds of people crowding into a new york city bookstore to see hillary clinton who was promoting her new book about the 2016 presidential -- 2016 presidential campaign. she signed copies of the book titled "what happened" for several hundred supporters that is the news update this hour kelly, back downtown to you. >> all right, sue, thank you very much. our sue herera. up next, cme chairman and ceo terry duffy is going to join us we'll talk about what most worries about about the financial markets right w nowhen we come right back stay with us for the holidays,

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million people's personal information that was supposed to be under lock and key at the credit reporting agency equifax. at delivering alpha earlier today,s treasury secretary steve mnuchin had this to say about cyber security >> i oversee the irs, so we have an incredible amount of personal data and want to make sure that is safe. number two, i'm concerned about the global financial system and keeping it protected and i can assure you that we're working with all of the intelligence agencies on cyber issues to keep americans' information safe. >> my next guest also expressed concern at cyber attacks joining me in a cnbc exclusive, terry duffy, cme group chairman and ceo. welcome. >> thank you, kelly. can i first thank our host of this wonderful place, the chairman and ceo of the new york stock exchange, for allowing me on this trading floor? >> is the fox in the hen house here >> he gave me a very warm reception. very nice of him. >> he did. he walked right over saw a handshake.

you guys are kpet tors. >> a little bit. i have a lot of respect for jeff, what he established at the nyse and continental exchange. done a nice job. >> let's go back to cyber for a moment what is a company like yours -- you have hundreds of billions of dollars of financial products wizzing through every day. >> trillions of dollars. >> what's the vulnerability? >> well, i mean, that's one of the big concerns we all have is cyber security because you can spend until you're blue in the face and still not protect everything you have to do as best a job you possibly can and go from there we spend a tremendous amount of revenue on cyber security and going to continue to do so it's one of those issues, kelly, that's that going away. >> people say, they have floated this before, next version of 9/11, anniversary we just noted, is a cyber version do you think there's truth to that does that overstate the damage, possible damage from your point of view? >> it's hard to say it's no the next one because it's the most convenient one for the terrorists to disrupt. their financial system is somewhere that they would like to go. you heard what the treasury

secretary said about it. so it's incumbent upon all of us to make sure that we allocate the resources to defend our systems no dichbt thfferent than governments allocate resource to nato and others to protect our countries. >> you were speaking at a conference earlier, definitely conference seasons seems we've had so many communities to digest today but one of the things caught my attention was your interpretation of how new european financial regulations might help the u.s you know -- talking about this the end of research, the way they're making people charge for it but do you think a real significant shift is under way here >> i think it's a shift only because, you know, the european union has to go, and plus they also have to deal with brexit, two major deals. the united states had to deal with dodd/frank in 2009, 2010, everybody said why is the u.s. going first on financial reform? and in retrospekt, it was the best thing that happened to us no now zempb yeseven years later we

understand the rules of the road in europe, that's not the case they have that ahead of them i don't know if it's an advantage to the u.s. but definitely not a detriment to the u.s. >> you think our financial regulation is largely behind now? >> i definitely think it's behind us. if anything, might see some of the rule writers interpret the dodd/frank act different than the last administration and basically lighten up some of the rules. >> do you think -- your industry is a global one, it's brutally competitive. has london shot itself in the foot with brexit do you think they're ultimately going to have to scrap it? >> i think it's too early to make that conclusion, kelly. i mean, people feel very passionate about it over there, so, you know, other parts of the union are talking about it as well we'll have to wait and see they have to go through roughly 270-plus treaties in order to negotiate with the union in order to continue on with trade. so that's going to be disruptive in and of itself so i think we're going to have to wait and see how his plays out. >> one thing julian robertson, others spoke about at our conference earlier today, when interest rates finally go up, you knows, that will sort of help the stock market get back to a healthy valuation

i keep thinking from your point of view, we've had low interest rates for so long. >> yes. >> do you think the cme can handle it? every -- this financial system can handle it? if all of a sudden we're talking about -- >> absolutely, there's no question about it. the question is, what is the new normal going to look like? does it happen, you know, overnight, which i doubt i think as rates continue to rise, i think it will be over a projected period of time and we won't have the disruption of a quick, you know, several hundred basis point move i just don't see that happening, kelly. >> we got to go. by the way, you look great feeling good >> i feel good, kelly, appreciate it. >> this is amazing so glad to see it. >> thank you. >> very much appreciate it terry duffy of the cme. shares of royal caribbean are recovering, meantime, after hurricane irma proved not to be as bad as expected in many areas. ahead, the company's ceo will tell us what irma could mean for their bottom line. first a lot of buzz on wall street and in washington about the future of gary cohn, if he'll remain in the administration what bridgewater r'say dalio had to say on that subject today is

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welcome back treasure are ry secretary steve mnuchin, and bridgewater's ray dalio touched on washington's impact on the markets. leslie picker has more. >> reporter: hey, kelly, that's right. quite an impact there is secretary mnuchin providing some more details on tax reform at today's delivering alpha saying that the decisions to temporarily raise the debt ceiling clears the calendar to

get tax reform done, but when asked whether the plan lowers taxes on the wealthy, he said they're looking at a system where they get rid of state and local tax deductions so high tax states like new york and california will not see a tax decrease he said he said tax reform is a pass fail exercise, passing tax reform would be a win regardless of the rate they wind up with. >> the president has made it clear since the campaign ideally he'd like to get it down to 15%. i don't know if we'll be able to achieve that, given the budget issues, but we're going to get this down to a very competitive level and what the exact number is is less important and what's more important is making sure we have a competitive system. >> reporter: now secretary mnuchin wouldn't comment on potential fed appointments, but one that's been rumored to be off the short list is gary cohn. bridgewater's dalio spoke later at the event and said if cohn

chose to leave the administration all together, it would be disastrous. >> i would say if he was to leave, it would be terrible. because it would be terrible in two dimensions it would jurnld mine the future progress of economic reforms and so on. and it would also represent a challenge in putting together administration >> reporter: now, dalio said his biggest concerns are things like the wealth gap and social conflicts as well as burdens in the form of debts and pensions, kelly. >> yeah, well, the -- i mean, we don't even have time to start talking about pensions, but i'm glad he mentioned it there was a lot of good stuff to come of that that will be one for future conferences. leslie, thank you very much. >> reporter: thanks, kelly. >> leslie picker. royal caribbean is relaunching boats from miami and ft. lauderdale today after hurricane irma ravaged those cities ceo richard fain will join me with the company's plans to get back in the water and its relief fos ghafr is

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we've got an alert from the alpha conference let's go to dominic chu with the details. >> reporter: a former employee, a disciple, if you will, of bill atkins, he's talking about one of his biggest positions, tyrex, an industrial equipment maker. these guys, he says, are the best idea because of a number of reasons. he wants a plan to focus on their core franchise and improve profit margins on core businesses, the implementation of a savings program for costs, also a disciplined capital

allocation plan, a plan to monetize noncore assets and give capital back to shareholders today in trading that stock is up 32% year to date. his best idea on the stage right now, guys, back over to you. >> dom, thank you very much. to hear more about in this case mcguire's best idea, see him on ""mad money."" crews lines resuming crews out of florida on modified schedules in the wake of hurricane irma royal caribbean has two set to leave today and two more to go out tomorrow ceo richard feigain, thank you r joining us >> thank you for having me >> you've had some folks stranded on these ships for quite some time, is that right >> actually we took the occasion to cancel cruises early.

in most cases we've had people off the vessels, but in some cases, yes, people on longer cruises. some of the people on these ships are our own employees who had another to go, and we wanted to give them a safe place to stay during the storm. >> i was thinking that, while in a way it's great place to ride out the storm if you're far enough away, you guys only have limited supplies how long can you last before coming back to land? >> oh, no, we stock up quite heavily. we want to make sure there's more than enough, even on a normal cruise, just in case. and here we were, stocking up more than we would have imagined, they could have stayed out two weeks, easily. we actually ended up having so many extra supplies that we were delivering them to some of the islands that were badly hurt so we had so much surplus that we could share some of that with some of those areas. >> wow, that's fantastic so what happens now? are you guys getting business

back to normal what about people whose trips were affected by the storm >> we are getting busy back to normal unfortunately we are prepared for these sorts of things. and we prepare on what to tell people and how to handle it. by the end of this week, we'll probably be back to a full normal schedule. we're also, since we have time where we had to cancel some cruises, we've told the local islands that we would help them. and so yesterday we picked up some people in st. martin to bring them to a safer place. today we're picking up a few thousand people in st. thomas and st. martin, to also just bring them, pretty much tourists who had gone to those islands and had no way to get home we're helping, using our ships

to transport them. probably that will all settle down and our ships will be back on a normal schedule by this weekend. >> all right richard, thanks for joining us appreciate the update. and thanks for all the work you're doing to help people down there. >> thank you >> that's richard fain, the ceo of royal caribbean, which julian robertson said he likes today. ste t fedal the biggest money miakofheam hedge fund manager, when we come right back products that suit my needsget and i get back to business. ♪ (upbeat dance music) (bell ringing) not rebalancing your portfolio. pursuing your passion,

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my offer is $650,000 for 25% of the business. we have a deal >> we have a deal. earlier today i spoke with tiger management's julian robertson at the delivering alpha event. here is what he told me was the biggest mistake of his career. >> instead of being heard when these good employees of mine that are almost like brothers and sons, instead of getting upset when they left, the thing i should have done was say, let me help you start. and, you know, just give me a

tiny little bit of your action >> and i said to him, i thought that's what you did, with these couple of dozen tiger cubs he said, yeah, he seeded them but didn't necessarily get a bit of the take. that does it for "closing bell." "fast money" starts now. "fast money" starts right now. and you are looking at a live shot of the delivering alpha conference, the big event trending on twitter all day as the biggest names in business get you the best ideas captivating wall street. more on that in just a moment. first, the other big event, apple launching a slew of new products including the new generations of iphones and the premium iphone x investors dumped the stock why? gene munster just walked out of the steve jobs theater, he'll give us some