20.4 household rating -- not the nfl game, the indians, 20.4 household rating in ohio that is a giant number. >> that's a big number >> a presidential debate wouldn't get that number highest ratings ever for a baseball game in ohio. >> observe it. >> have a great weekend, everybody. >> "closing bell" starts right now. and welcome to the "closing bell" i'm sarah eisen in today for kelly evans at the new york stock exchange. >> welcome back, tgif. i'm bill griffeth. facebook and google have come under fire under anti-semitic ad targeting. will these growing ad columns but a wrench in the so-called faang trade of tech? and in social media stocks overall? a debate on that coming numbe i little bit. thoed is today is the day y preorder your new iphone

we'll discuss whether apple is can baniba cannibalizing its own stock. >> very interesting dilemma for the company and its fans. and it turns out it's not just the united states, ex-fquix says customers in the uk suffered from this data breach as well, as u.s. lawmakers get ready for an investigation, and guess what, the stock is down again today. it's down 34% since the announcement a week ago thursday we have all the new details on that coming up. >> just goes from bad to worse. let's start with the tough talk from the white house after north korea test fired another missile l. that talk coming this afternoon. eamon javers has the islands for . >> reporter: despite the north korea missile launch last night, the message from the white house continues to be diplomacy, diplomacy, diplomacy u.n. ambassador nikki haley was in the white house briefing room a little while ago briefing reporters on the u.s. approach to this and she emphasized

diplomacy and particularly some of those sanctions that were put if place at the u.n. earlier this week. our comments also had an edge to them take a listen. >> they continue to be reckless and at that point, you know, there's not a whole lot the security council is going to be able to do from here when you've cut 90% of the trade and 30% of the oil. so having said that, i have no problem kicking it to general mattis because i think he has plenty of options. >> by kicking it to general mattis, she's obviously talking about the secretary of kefs and so defense and military options the united states would have here. the president, by the way, has left the white house he's on his way to new jersey. he was asked by reporters if he was out of options as he was on his way to the helicopter. he mouthed the word, no. he was asked again if he was out of diplomatic options. the president, again, mouthed the word, no so, a bit of a change in tone here, guys, from what we saw from the president earlier when he was talking about fire and fury in response to north korea.

today, the message very much is a diplomatic one from here at the white house. >> all right eamon, thank you i'm sure we'll be checking back with you eamon javers there at the white house. let's get to our "closing bell" exchange, here we go on this -- by the way, this is a quadruple whiching day we got all kinds of things expiring on the close, some on the open this morning. this being the third friday of the month of september david waddell from waddell and associates is with us today. cnbc contributor peter costas from empire at post 9. our pal, jack, from ucx is in at the cme in chicago peter, here we go again. if anything, things with north korea ramping up again and yet this market just continues to inkmentcrementallye higher and the vix is at 10. >> it boggles the mind, bill i've been trying to figure out why you have -- really had nothing but negative reports this morning and this afternoon. to me, this market is resilient

because it's an inflow of capital that knows no reason not to be here meaning that the etf money is moving into etfs, it's a continuous flow of money. >> it's on automatic pilot >> on automatic pilot. if it goes up, it goes down. news -- >> that money in etfs when it does go down. >> that's a question that we probably -- i mean -- >> haven't found out yet. >> we don't know because ever since the etfs have become a focal point of i invest ing, individual investing there hasn't been a downturn of any significance. >> interesting to watch the market reaction, overnight the kospi in korea, nikkei in japan, were leaders in terms of global markets. has the global market become immune to geopolitical flare-ups? >> you know, the market's been immune to north korea. let's not forget they fired 20 missiles last year we're ul kpall excited about ths i don't know what's changed, except we went from obama to trump, that makes this more

interesting. i think it's possible that north korea nukes seattle l bbut it'st probable the reason the market is going up is because the probables list includes rising inflation expectations this week i think that's the big and most underreported factor that led to a rally in small cap financials the yield curve steepened. the dollar strengthened. i mean, we had a big reflationary week, so north korea can throw fireworks in the air, they have been doing it for years. i don't think other than the trading algorithms in the after hours that it really impacts what goes on in wall street on a daily basis. >> so it's the fundamentals, in your view. jack, what about you last week we had very much in evidence the safety trade as gold hit a year's high, the ten-year hit a yield we hadn't seen all year. this week, though, it's gone the other direction, and the dollar's been searching for a bottom as david suggested. what do you make of the market's response this week >> well, bill, that was a crowded trade and peter will

tell you because he's one of the traders that was probably in that trade, along with me and everybody else even professionals have been fighting the tape now. incremental l hihighs are like e slow bleed for a professional trader the bond market seems to have gotten it right. they're the ones who have actually factored in some of that overnight headline risk that we were just talking about. stocks don't seem to care. it's not the first time this has happened i'm old enough, so are you, probably to think back and look at what happened when we saw that massive troop buildup on the kuwaiti border and stocks did not care look, this is -- it's happened before so, you know, this bifurcation that's taking place between the bond market and the stock market is something we should absolutely pay attention to. one more thing, the reason stocks have -- not only because people are taking off these positions that they've been fighting but because the dollar has been going down for months remember, you've had a dollar that's gone down over 10%. >> right all year. >> since the beginning of the year s&p 500 has gone up about that much. >> you know, it's interesting in

the action this week, so u.s. stocks are actually -- the s&p 500 set for their best week since back in april. the dow heading for its best week of the year. >> this year. >> the ftse 100 in the uk actually had a down week that's on the strnt ength of the pound. warnings they were going to raise interest rates sooner than later. peoples like this market, investors are more afraid of higher interest race rates that korea, terrorist attack in london, weak economic data in the form of retail sales today and others. >> what that does, that puts december as a spotlight. you know, are we going do see rates go up in december? i think after seeing the inflation numbers, you got to think that the head might start thinking about, you know, used to be 50/50. i think it might be a little bit more like 60/40 now where they might be raising rates because they are starting to see that inflationary trade they are starting to see the -- if they see wage inflation, you're going to be pretty sure that they're going to raise rates in december. >> by the way, before we go, what do you -- anything to expect on this expiration on the

close here >> a lot of volume >> just vol wrum. >> lot of volume on the opening this morning i see the numbers already. they're substantial. this is going to be probably one of the bigger trading days of the year if not the biggest. you know, and, but as far as, like, the volatilitvolatility, t going to see much. like we've seen lately na for sure >> peter, jack, thank you, all, good to see you. appreciate it. have a good weekend. >> good to be with you. meantime as we mentioned, facebook and google are facing fallout for allowing advertisers to cater to hate groups. julia boorstin, bring us up to speed on this story. julia? >> reporter: bill, that's right. the language we're talking about here is offensive and shocking jew haters, and how to burn jews, jewish parasite and black people ruin everything these bigoted slurs were targeting categories facebook and fwogoogle -- propublica mad

test facebook issuing a statement including the following. "we prohibit advertisers from discriminating against people based on religion and other attributes keeping our community safe is critical to our mission and to help ensure that targeting is not used for discriminatory purposes we are removing these self-reported targeting fields until we have the right processes in place to help prevent this issue." google also facing scrutiny, buzzfeed news today reporting advertisers can target racist and anti-semitic key words and phrases. google issuing a statement saying, "ads didn't run against the vast majority of these key words but we didn't catch all these offensive suggestions. that's not good enough we're not making excuses we already turned off these exceptions any ads that made it through and will work harder to stop this from happening again." neither stock seems to be moving much on this news today. facebook shares up half a

percent. google shares down about a half a percent. guys, back over to you. >> julia, thank you. facebook is part of the beloved faang stocks, facebook, amazon, netflix, google, although that's alphabet now at some point, could these ad woes hurt the faang trade? joining us, ali back with us from morningstar, and ross gerber from gerber kawasaki. ross, you're a shareholder. >> that's right. >> what do you make of all this? >> i'm a disappointed shareholder. certainly they have the ability to filter these things and seem to be much more reactive than proactive. i absolutely believe between hate groups and isis that we could totally knock these groups' power out if social media companies took responsibility i'm disgusted. i think it's embarrassing and leadership of these countries, of these companies, need to do more than say, oh, we'll stop doing it now you know >> you think this is just an innocent oversight or is this just the profit motive at work >> it's both it's both. >> so ali, you do not see this

as a material issue for the stock or the business. why is that? >> yeah. i don't. first off, it's good to hear that these things were actually spotted. there's no question about that there's no room for any type of hatred hate categories anywhere n my opinion. but in terms of what, if this is material or not for facebook, i don't think it is. it's basically part of the so-called growing up process of a.i. and machine learning so the more data they compile about user behavior, and the more additional restrictions they put into the so-called automated system, as rob mentioned, as ross mentioned, then the output that they get from the machine learning will be a little bit more proper and -- >> come on, you're making an excuse here. they took money from the russian government, they're taking money from hate groups i mean, who going to advertise to jew haters like the tiki torch people i don't get, like, why this exists and it's an excuse.

now, they have a monopoly so they can't thurt thehurt their . i get that there's still no excuse for it in growing -- they're way grown up. >> not at all. i completely agree with you. there is no excuse for it. i'm just saying that the company hopefully will take some actions to adjust these so-called machine-learning a.i.-driven types of systems i completely agree, there's no excuse for this. >> here's a fun idea which i'm sure the companies will love, about some sort of regulation? i mean, television ads, radio ads are regulated by the federal communications commission. what about regulating social media advertising at the same time >> no. please, no no more regulation >> look how well they're doing at self-policing. >> how many more political scandals, ross, do they need to face already, the public outrage is growing. >> assuming the government has any capable to regulate anything our government is pathetic i don't think that's the solution i think users and the media doing what they're doing right now is the solution.

so, thank you, cnbc, for running this spot. thank you. >> i agree -- >> ali, what were you going to say about the regulatory risk? >> yeah, the regulatory risk, that's a good question it's -- i mean, for example, i think propublica spotted this last year also actually, facebook violated the fair housing act of 1968 in terms of trying to basically address particular ethnic groups for renting houses and so forth. so there is an issue when it comes to regulatory stuff. the laws are in place. the question is can these companies and will these companies over time actually adapt to these laws and follow these laws and as, in my opinion, it's natur natural. as we see all of these organizations such as propub lake ka, oa lica, other independent organizations, as they take action, the companies will react and hopefully react fast enough

and hopefully implement long-term solutions to the problems and in the long term we won't come across many of these issues again >> well, they seem to be keeping on coming. >> yes >> these days. >> for some reason thanks, guys appreciate it. >> thank you. >> ali, and ross gerber. good to see you both. >> good to see you, too. 47 minutes left in the trading session here we got gains pretty much across the board right now. >> we saw intraday records on all three of the major averages today. dow, s&p and nasdaq. >> right. stocks on track for a record close, despite this missile test by north korea we've been talking about coming up, we'll talk about what, if anything, the u.s. can do to calm the geopolitical tensions throughout asia. but first, you can now officially preorder the iphone 8 and 8 plus up next, find out whether people will actually buy these phones or end up waiting until they can order the iphone x later next month. as always, we'd love to hear from you reach out to the show here via twitter, facebook, send us an e-mail, whatever is most convenient for you

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plus signs across the board for the major averages the dow in record territory. this is the best week for the dow this year. as you were pointing out actually goes back to december if you really want to be technical about it. >> the s&p, since april. >> yeah. but oracle is the worst performing stock in the s&p today. and it's having its biggest single-day decline in four years, believe it or not, after the software and cloud company issued disappointing guidance for the current quarter. that despice be spicspite beatil street's earnings estimates for the last quarter which we reported last night. >> what a turnaround it was up after markets. >> initially went higher, u

about 2% by the time we went off the air yesterday, it was unchange. >> losing that momentum. >> could see it was losing it. today it is down 7%. so, today is the day you can preorder your new iphone that is in you're looking to buy either the 8 or the 8 plus but how many perspective buyers will be holding out for the x which won't be available for preorder and for another six weeks? >> yeah. october 27th >> how many are going to be available? >> joining us now, dan ackerman, cnet.com section editor. and nat garen at post 9, senior tech editor at "the verge. welcome to both of you, nat, so, first as a techie and a tech writer, is it worth it to wait for the iphone x >> if you are a big fan, and you are convinced by the o-l.e.d. display, sclutl absolutely it's the most expensive iphone apple l has released but comes jam packed with new features,

face i. d. face unlock future, o-l.e.d. display, animojis that's going to be popular with the younger crowd. >> like me. >> a lot of people are deciding it wait for the pixel, upgrade to the new iphone, switch over to the new 8 which are the same price range as the new iphone. i think there's a lot of people who are willing to wait or just use the upgrade program to get the 8 or 8 plus first then upgrade to the x. >> what do you think, dan? i mean, are they going to cannibalize the 8, the 8 plus with this 10 bearing in mind that we're hearing anecdotal evidence that maybe they're having production problems with x and won't be that many 10s available right away. >> the problem is we're creatures of instant gratification. you tell someone, you can get this new phone, reorder it today or wait for the other one in six weeks and by the way, we've heard there are production problems and clearly that's why they're pushing the preorder state out, may have to wait weeks or weeks after that to get the phone. i remember when the iphone 6 came out, that was another big

design change and there were huge queues of people basically who reordpreordered or traded t were waiting throughout the holiday season people may snatch up the 8 or 8 plus to avoid the disappointment late r. >> you've done work on the actual price we hear and the $1,000 sticker price for the new x. what about the a trkat&ts, sprio world, are they subsidizing this at all what do the payments come out to the 8 versus the x >> a lot of the carriers haven't released their deals for the x yet because the preorder is six weeks away they have offered some substantial discounts on the 8 and the 8 plus for example, t-mobile and verizon are offering trade-in programs where you bring in your latest new iphone, which is the 8 or 7 plus and they will knock up to $300 off but that's spread out over the next 24 months in an installment plan. at&t also offers a bogo, buy one get one kind of deal but that also requires you to trade in your old device or be a member

of the direct tv program >> so what do you think? i mean, come on. my thinking is, my generation's going to go for the 8. we don't need all those bells and whistles i just want a phone that works and the camera and all that. >> what do you mean? you're still on the blackberry. >> i'm talking about my generation not just me. i'm still with my blackberry, happyfulily so your generation is going to go for the geewiz bells and whistles. >> the iphone x is for a younger, millennial, social media generation the camera has filters, animoji stuff. apple is targeting the younger disposable income kind of target and people are willing to definitely wait even if the phone is a little bit delayed. also comes out before the holiday season it's going to be a big item i think this year. >> apple is having another up day in the market up 1.2%. been a leader pretty much all year for the dow

dan, thank you, dan ackerman, nat goshen, for joining us here. less than 40 minutes to go before the closing bell sounds and we've still got a minor rally but enough to put us near record territory, for the dow, s&p and nasdaq. >> that's been the hallmark of this market for a couple years now u. >> fractional moves. >> no home runs. just a bunch of singles. >> 31 record closes for 2017 on the s&p. i t i got to double check that. shares of equifax under pressure again now that the company is in senator elizabeth warren's sights under the massive data breach. details coming up. first, one wall street bank is making a very bullish call on consumer companies that own what it calls fashionras. bnd feel what names the bank feels passionate about when we come back

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today after a pretty rough week. following that crackdown on the cryptocurrency by china and also comments from jp morgan ceo jamie dimon calling bitcoin a fraud. it was a rough week. >> that's one investment that doesn't incrementally move >> no. there's always a giant move. i think it's still down almost 30%. for the week some consumer names getting low today, the company initiated coverage of names including estee lauder, constellation brands and monster beverage with outperform ratings they called these passion brands the analysts said estee lauder

and monster beverage are winning on rising per capita consumption because, quote, who doesn't want to look better and have more energy some other consumer names initiated by category, the, quote, prey and predator, the prey being colgate palmolive and monster beverage, she says are both attractive takeover candidates while the predators, the acquirerers would be church & dwight, coca cola enterprises and dr. pepper-snapple who have capacity for more acquisition. >> longtime consumer analyst caroline levy sort of putting her branding on this and i think it speaks to one thing which is across the industry, it's been a search for growth whether it's beverages here, household products, consumer brands, food brands, as well and it's been sluggish and so you really have to stand out. estee lauder has done that, constellation brands has done that so has monster energy. in terms of growth. >> a lot of times they do it, though, through acquisitions you see a lot of consolidation

constellation brands has been gobbling up beer brands around the world. >> they've been in the right category they've been in the mexican beer sweet spot of passion. >> they chose properly >> yeah. >> you see that in the soft drink business as well. >> she also -- another category in this note was actually the cost cutters which is pepsico she put in that category, both good stocks as well according to levy because it is the idea you have to search for growth where you get it, whether it's acquisitions, cost cutting, it's why this consumer staples industry has been so ripe for activists investors, for m&a deals. it's surged a lot over the past few years on this idea of cost cutting and paying higher yields and the question now is, if yields start to go up, what happens, how do you separate the winners from the losers? >> right. >> when you look at thing like that. >> we are in such a period of disruption right now name the industry that's not being disrupted. >> no, people are buying this stuff on the internet increasingly. >> exactly. >> where do you get your toilet paper? i get it on amazon.

>> do you really >> of course. >> you live in new york city that's why. time for a cnbc news update with sue herera. hi, sue. >> hi, guys. thanks very much here's what's happening at this hour, everyone british prime minister theresa may condemned what she called the cowardly terrorist act on a subway train in london during the morning rush commute 29 people were injured >> the peace and security services are obviously doing all the work to discover the full circumstances of this cowardly attack and to identify those responsible. and i would urge any members of public to have any information or footage about what happened this morning to pass it to the police urgencurgency. a splt. louis judge acquittd a former white police officer in the shooting death of a black man. jason stockily w lstockley char first-degree murder after killing annie lamar smith in december 2011. tropical storm jose won't go

away the latest forecast has the storm which could soon strengthen back to a hurricane heading up nearer to the east coast. latest map by the national hurricane center puts new york and new jersey in the distant fringe of the so-called hurricane cone we'll keep you posted on that one. we should know by probably monday or tuesday. that's the news update this hour guys, back downtown to you. >> all right, sue. thank you very much. we're heading into the final half hour of trade and, again, we got an expiration to occur in 30 minutes as well the dow up 56 points in record territory. with me on the floor here is gordon from rosenblat securities and this teflon market continues to chug higher. >> teflon, bill? >> teflon. >> a lot of negativity -- look, i'll agree with you the vix is down some whwhat muted again only thing that el investigates the vix is when kim starts to do saber rattling my friend says, industry giant, says big hat, no cattle, once that's done we could be ushering

in a new era of peace and prosperity globally that could continue to see this trend and this break out. >> i get the geopolitical, how they're overlooking that but fundamentals matter, i keep hearing. this morning we had retail sales that didn't look good for the month of august and industrial production was not so hot either right now. >> that's true, bill. >> and oracle's earnings, their guidance, was bad enough to push it down 7%. >> sure. look, there are a couple other stocks in the dow that have been suspect. overall, we've kind of been -- talking about it, you look at bond yield, you look at the way commodities are priced right now. there's still -- this is still the best option you have lot of people are still very bullish on american equities, bill the fact of the matter is, people are confident in this market we can see it now. and we're going into a quad which right now we are seeing elevated volume. >> yeah. >> we're seeing muted volatility this is a tremendous opportunity for investors to get in and out of position. this is the biggest dark event -- i wouldn't say dark,

but the biggest liquidity event on the planet. it's happening right here. we're excited about what's going to that a half an hour from now. >> all right we'll see what happens let you get back to your excitement >> i can tefeel it, bill. 29 minuteses to go before the closing bell let's show you where we are on this market. s&p up 3 record territory nasdaq is up 18. nvidia is flying up 5% helping power the tech index russell 2000 up .4%. north korea firing a missile over japan for the second time in less than a month up next, two top geopolitical experts tell us what it will take to get the rogue state to stop threatening the u.s. and its allies plus, we all know airline seats have been getting smaller and smaller. with less space between rows and now a new report, it's finding these cramped spaces could actually be hazardous to your attoal th sry's coming up later on "the closing bell.

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north korea testing another missile overnight. flew over japan, but the estimated missile range is that it could have reached as far as the u.s. territory of guam >> which they have threatened they would go after. so how should the u.s. navigate

the growing tensions in that region joining us, we e have cnbc contributor and former ambassador nick burns and retired lieutenant colonel daniel davis, a senior fellow and military expert for defense priorities gent gentlemen, good to see you again. mr. ambassador, here we go again. they fire a missile, the u.n. convenes an emergency meeting, more sanction are approved there's talk that they're isolating themselves diplomatically and economically then they fire another missile i mean, are we being lulled into a false sense of complacency especially join consider that the stock market, the world markets, are not responding all that much, either, right now >> well, i think it's a long-term problem for the united states, and for south korea and japan. these threats by the north koreans have been with us for a number of -- for a number of decades. this is the 15th icbm test we're going to have to play this for the long term. practice strategic deterrencdete make it clear as secretary mattis has done, anyjapan, amer

forces or the united states would be met with overwhelming force by the united states we can intimidate them through deterrence the harder problem will be to get them to either freeze their nuclear program through a negotiation. i think that's where the trump administration is headed they're headed toward a negotiation, but that requires russia and china to give us some assistance right now they're giving very little l. >> i mean, this is all setting up for a pretty interesting u.n. general assembly week where president trump will be speaking and meeting with his fellow leaders. colonel davis, ambassador nikki haley went to great lengths today to tell the press corps that the sanctions are severe and they are crippling north korea. is that happening? and will it eventually bring north korea to the table is it a matter of timing or is it not working >> well, clearly the sanctions are having a biting effect when you hit them with that many sanctions and that much especially cut in their exports and their oil, it's going to have an effect in terms of their

quality of life and the way that they do business but i believe it's going to have absolutely no impact whatsoever on getting them to do our strategic objective, which to denuclearize the peninsula so a matter of what you want to accomplish right now it's not going to accomplish what we want. >> and lieutenant, colonel, i mean, they reiterated again today, the military option is still very much on the table for the united statess really i mean -- >> you know, i -- >> go ahead. >> i'm sorry i saw h.r. mcmaster's comments this afternoon from the white house. i just have to shake my head and i don't know if it's just bluster that we're trying to make them believe that we can intimidate them into doing what we want, but, i mean, it's absurd because anything that you do militarily, any kind of a strike, it's going to take out some things but it's not going to take out everything it's impossible because of how they got shelters into sides of mountains, and if you do that, all you're going to do is spawn a retaliatory strike that's

going to cause the very thing we're trying to stock. >> all right gentlemen, we need to ask you to stand gby for just a moment >> we got a news alert on the terror attack in londolondon, actually, sue herera has details. >> i do. this was pretty much expected after this morning's attack on the train in london. the british prime minister has raised the national threat level to critical from severe. british prime minister theresa may says that people in britain should expect to see a higher level and a greater presence of armed police in public places. the british national threat level of critical means an attack is expected imminently. so she has raised the threat level. there was a lot of talk about that this morning after the terrorist attack and innocently, isis is claiming responsibility through a unit. nbc has not confirmed that particular aspect of things, but once again, that's the latest headline on that the threat level has been raised

to critical meaning an attack is expected imminently. i'll have more on the 4:30 news update for you guys as well. back to you. >> thanks, sue. with us, former ambassador nick burns former u.s. undersecretary of state. the significance of this, mr. ambassador >> well, the british have a lot of experience, unfortunately, tragically with terrorism. these statements are not issued lightly. it means that they have a heightened risk of attack. building on what happened in the london tube this morning and so it ought to be taken very seriously. what the united states needs to do right now is not lecture the british as president trump did in a tweet this morning. stand by them. give them all assistance let them run their own show. that's what the united states should be doing. >> prime minister may said as much early -- earlier today, but they did speak on the phone, the two leaders. lieutenant colonel, this is just, i mean, this is the fourth attack o london this year.

yet, another issue that we face terror wise throughout the world and it just doesn't seem to be defensible >> well, and i think as long as you are going after the wrong targets, i think that we're going to continue to have trouble like this because, you know, for example, when president trump recently announced that he was going to extend the mission in afghanist afghanistan, he cited the terror attack in spain at the time and he said, see, this is wee we ha have to do when you look at what happened in spain, barcelona, it was basically homegrown and radicalized there. so having troops constantly fighting overseas in iraq, afghanistan, syria, pakistan, those things are not keeping us safe fact, in some ways they're actually contributing because it allows radicalized people to point to things as something to help them do what we don't want them to do we need to really be careful about trying to defend ourselves with military power all over the place. what we have to do is get at the causes of radicalism and the causes of islamic terror and

that's not going to be done on a combat battlefield >> gentlemen, again, thank you for your time. appreciate it. ambassador nick burns, lieutenant colonel daniel davis. thanks. >> interestingly, bill, not much of a market reaction here. >> well, if anything, we're going higher but there is a lot of orders coming in on the close here because of the expirations. >> that's pretty much where the dow was before that news that the uk terror threat was raised to critical. the british pound still higher for the day and for the week it was a strong week for the pound. if the executives at equifax thought that they were having a bad week after the company's hack attack, senator elizabeth warren is about to make it even worse. that story coming up. and at the other end of pennsylvania avenue, president trump taking aim at espn in a tweet. later, we'll look at whether espn's politics are hurting its sports business. as the president claimed dynamic performance,

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i did. i didn't pay for anything. you never do. send me what i owe. i've got it. i mean, you did find money to buy those boots. are you serious? is that why you don't like them? those boots could make a unicorn cry. yeah, tears of joy. the bank of america mobile banking app. the fast, secure and simple way to send money. by the way, shares of nvidia rallying to a report high after evercore isi hiked its price target on the stock to $250 from $180 trading at almost $180 right now. expectations the company is

developing the industry standard for artificial intelligence systems. nvidia has been on quite a run soaring by nearly 70% so far this year. at one time, it was the hottest stock in the market. >> it also gets a little l bit of a boost when bitcoin rises. because the benefits as a minor for bitcoin, whether analysts see that as a high quality or not, it's been a boost to the chip maker's business. senator elizabeth warren is going after equifax in the wake of its massive data breach aditi roy joins us from frasan francisco with the details every day, they got more problems that they're facing. >> reporter: i know. another day. and another story for equifax. this time, senator warren is just the latest lawmaker to take action against equifax she's launched an investigation into the company's data breach writing letters not just to equifax, but the other two major credit bureaus, and their regulators also warren along with 11 other lawmakers are introducing a bill that would let consumer freeze their credit for free. in her letter to equifax, warren

writes, "equifax's initial efforts to provide customers information did nothing to clarify the situation. she also asked the company's ceo why it took them 40 days to let the public know about the breach, if any executives have been fired over the hack, and why the company initially included an arbitration waiver for customers trying to find out if they were affected by the breach equifax has since taken down the waiver the bill warren announced would also create a uniform federal process for getting a credit freeze and also beef up those fraud alert protections. and even more bad news for the company, equifax has now revealed as many as 400,000 customers in the uk may have had their personal information hacked the company says names, dates of birth, e-mail addresses, and telephone numbers may have been breached lot more bad news there. back to you guys >> stock down 34% just since the announcement last week adi aditi, thank you, see you later. 13 minutes to go here before

the closing bell and we're looking at gains for all three of the major averages. putting us on track for record territory. best week for the dow since all the way back in december it's up 61 points at this hour seeing winners like boeing and apple which powered the dow pretty much all year also shining in today's session and with the markets hitting these new highs and tax reform apparently on the move, what uld david darr's marketing ing a acronym of the week be we'll find out when we come back (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

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your entire dvr. top networks. and live sports on the go. included with xfinity tv. xfinity, the future of awesome. this is really interesting, art cashin just stopped by ten minutes ago, the market on close orders showed an imambulanimbalanc to the buy to $2 million in the last few minutes they pared off. this is a quadruple witching as pointed out, this is a massive liquidity event so the buyers and sellers are coming in on this expiration and as a result, the imbalances have been taken care of right now. and the dow is up about 60 points in record troerritory. >> joining us with his market acronym of the week, david darst, independent investment

consultant welcome, sir. >> sarah, nice to see you, bill, nice it see you. >> what's the action >> alford lord, wrote yulysses. he was the poet. when he was 42 years old, he wrote a beautiful poem called ulysses, in there to seek, to strive, to find, not to yield. yield is this one. basically it is an exhortation by ulysses to his soldiers to keep going and i think the market can keep going. we have "y" is yes to the possibility of a tax cut the chances went up this week. it's still only a one in three chance of this year, but they went up pretty significantly this week. the "e" is earnings. now, the hurricane hit the insurance companies, it hit the airlines and the kem chemicals n particular this quarter was supposed to be

a 5.1% earnings gain a smaller rate of gain kput cut it back to 4.6% most of that reduction from those three industries, chemi l chemicals, airlines and the energy companies okay the third one is, so you're going to see in the third quarter, you're going to see 5%, 4.5% >> okay. >> fourth will be 11, then the next two quarters, think about this, first and second quarter of next year, ten each you basically got pause going on here the -- >> "l" >> y-i-e-l drk-d "i "qurkts i sk, i skipped over, interest rates down inflation, up i do note they've gone from 2.06 to 220 that's a big move for the ten year it's indicative i think of a

better pricing power environment which offsets the bad retail sales numbers that we had this week weak retail sales but high son s consumer kfds. confidence. the dollar has stayed under pressure down 8.3% that's good for profits. the "d" demand for oil, got it up above 50 again this week. 49 and change. that's a good thing. also for the markets you want to basically start to rotate out of emerging markets which are up 30% into japan and europe where the fundamentals, valuation and restructuring story is under way in japan and the fundamentals and valuation are under way in europe. rotate out into those. and finally, everybody go get their flu shot >> it's that time of year. >> that time of year. >> very good for the record, santoli would want to bet you'd be quoting --

that took care of that i digress. >> i love him. you know i love him. >> thank you two of the more literal peopte i know right there. >> first in business worldwide. >> thank you, david. see you later. we'll come back to the closing countdown as we head to the closing bell here. after the bell, a special cnbc investigative report on airport security plus we'll talk to a former faa official about a new potential dangers of flying coach. reatincn fstn i business worldwide (sigh) ( ♪ ) dad: molly! trash! ( ♪ ) whoo! ( ♪ )

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the last two minutes of trade here with the dow up 60 points lot of energy on the floor here. we got this huge expiration taking place here in the last few seconds of trade here. let's review the week. there's the dow. the best week of the year for the industrial average believe it or not, actually going back even to december. best week in terms of a gain so what do you say about that? the teflon market just keeps going higher the safety trade came off this week, it was on last week. the deal on ten year hit a year low at 2.01. up 19 basis points this week now to 2.20. and the dollar index is searching for a bottom right now. said this week he thinks we're at a short-term bottom

we saw some gains there although the british pound has been very strong as sarah has been talking about. oil, crude oil hit a five-month high this week here's a fun fact, bob pisani, at the settlement today, it settled unchanged. first time that's happened in more than seven years for the oil market. >> but we're at $50. so a couple of things. this is a very unusual month september isn't supposed to be a good month, august wasn't supposed to ba good month. up 1%. you mentioned best week we've had h a long time. >> lot of traditions are going by the wayside. >> exactpy many rallies today, this week, in several groups. so semiconductors are back as a leadership group they've done really well up over almost 5%. and you noted as the ten year has moved up, banks have been in a mini rally as well this week as oil has moved up, energy stocks are back into a mini rally. boy do i get hate mail from raid who are have been burned badly on the energy trade. the sentiment is so bad about

buying energy stocks it's an excellent contrarian -- everyone says i don't want to hear about oil stocks starting to bounce again. very, very good sign. >> thank you, bob. may be the heaviest volume day of the year, too. >> a shot at it. a billion shares right on the floor here. >> with the dow at a record high stay tuned now for the second hour of "the closing bell. and welcome, everybody, to "the closing bell "" i'm sarah eisen in today bill griffeth will be rejoining us in a moment let's take a look how we're finishing up the day on wall street another strong one the dow hitting another record high into the close. finishing higher by a third of 1%, capping off its best week of the year best week for the dow since all the way back in last december.

as for the s&p 500, looks like we got a record close there as well the level to watch was 2,498.37. we managed to surpass that record high for the dow and s&p 500. the nasdaq 6,448.47. not quite going to do it for a record but not too far way russell l 2000 closing higher by half a percent senator orrin hatch telling cnbc he doubts president trump's 15% corporate tax rate goal is realistic. larry kudlow has some thoughts he will weigh in coming up. and cnbc was granted up close and personal access to a specialty s.w.a.t. team that's working to keep los angeles international airport safe we'll give you the behind the scenes look a little bit later in the hour. but first we got to talk about this record market joining ounce the pane ining us santoli. cnbc contributor as always an a friday, evan newmark

cassandra, president and cio of bellrock capital welcome to you mike, how do you explain this push to new record highs for the s&p and the dow on a day where we have another missile fired by north korea over japan on a day where we had another terrible terrorist attack in london >> yeah. >> and some kind of weak economic data, retail sales, which wasn't all storm related. >> it's very much in character for this market which is essentially in a very methodical low drama way grinding its way higher those things you just mentioned when you said another, right when it's another, it's not news to the market. the market can kind of absorb that and say this did knock us off course last time unless it gets escalated in terms of the economic data, everyone is prepared for the third quarter numbers to be very noisy, basically a lot of fits and starts and essentially, too, the mark has been sitting still for a few days

a slight upward bias we talked about how it's defying the calls, september is always negative after september expiration, bill, you were talking about, it tends to be negative the follow ing week >> when you consider, let me go on the north korea, your line that things haven't escalated. i think they have and it's almost like the frog, the proverbial frog in the warm water as it slowly heats up. when you think about it, they've upped their game with this hydrogen bomb test, with firing a missile directly over japan. things have escalated increme incrementally so. >> almost like everything that happens up to the moment of an actual attack and start of hostilities is just the same it's just the same preliminaries, the same objectives, the same mote investigati motivations, same response >> i read in a research note today the phrase missile fatigue. >> yeah. >> which seems crazy but that's -- >> pointing out, you know, we had nuclear weapons pointed at enemies and vice versa for 50 years.

so it's not new to the market to be very mercenary about these things. >> evan, cassandra, we haven't forgotten about you. first, as we mentioned, north korea launched the missile over japan yesterday. the trump administration had tough talk for that country during a news conference earlier today. eamon javers is stepping in with more details on that eamon? >> reporter: yeah, you're right, bill to your point in your conversation just now, you know, there is an escalation going on here militarily in terms of the situation on the ground geopolitically here at the white house you definitely get the sense they're emphasizing the diplomatic solutions over the military ones nikki haley was here she's the u.n. ambassador looking ahead to the u.n. general assembly next week she said the president's going to speak she said very much the president is going to slap the right people and hug the right people in those remarks she emphasized the strength of the sanctions that have been put in place against north korean regime as recently as this week at the united nations. h.r. mcmaster was also here, the national security adviser,

talking to reporters he said ultimately he's a little frustrated with previous u.s. administrations which really haven't been able to solve the north korean problem. here's what he said. >> what's different about this approach is we're out of time, right? bbassado b we're out of road. for those who have said, been commenting about the lack of a military option, there is a military option. now, it's not what we preferred to do. so what we have to do is call on all nations. call on everyone to do everything we can to address this global problem short of war. >> reporter: so you heard him say there short of war obviously the united states doesn't want war he said the military option is not the option that the united states wants very much here, the effort is also to bring in the russians and the chinese into this dialogue, see if they can put pressure on north koreans because the pressure being put by the united states clearly isn't working. even though nikki haley and others here at the whouite hous

are saying there are more diplomatic options here, they're not out of diplomatic running room there are still other things they can do in terms of sanctions, diplomatic pressure and the like they are talking about the military option as well here as one of the things that's still on the table >> hugs and slaps. a new diplomatic phrase i think, eamon, we'll see who those are designated -- >> reporter: we'll see who he hugs and who he slaps next week. that's right. >> eamon, thank you very much. evan, is the market underestimating this risk? >> probably. i think touching on what mike said earlier, if you go back five years, you had the exact mirror image of the market we have today five years ago, every time the greek parliament had a bad vote, the market would go down, the dow would drop 200, 300 points y now you have a market where really bad stuff may happen and the market doesn't react at all. and the reason for that is that in the five years, the market has gotten around to the idea that the central banks and their liquidity will solve all problems

and so while all this stuff may be going on with north korea, while all of this stuff may be going on with terrorist attacks and all that, as long as the central banks have signaled that they're there for the market, the market is actually will to go, you know what, glass half full, glass half full, glass half full. >> the other difference is the greek votes had direct financial bearing on the banking system and everything else having to do with markets north korea is not an economic factor. >> what i think will happen, next week you will see some reaction because when u.n. week rolls around in new york city, all of a sudden because people live in new york city, they start to focus so when, you know, when they have big speakers like donald trump or somebody from china, russia, speaking at the u.n., all of a sudden people, like, you would think it wouldn't but it does refocus the way investors look -- >> they always buy soybeans in chicago when it rains in chicago. >> exactly. >> that's the whole thing. cassandra, what do you think are we being lulled here, you know, as the market goes higher and volatility index just sits at that bottom number of 10?

>> yeah, this has been a really challenging year for professional investors because your gut tells you and your previous experiences tell you that this shouldn't be happening and yet it is and so, you know, you don't want to fight the tape you want to go with the flow and keep in the market, but at the same time, we are getting to the end of the line with trying to fix this north korea situation once and for all and we all hope it happens in a positive, non-war kind of way, but i do think that that's not something central banks can fix, and, you know, as nikki haley said earlier today in her comments, at some point she's going to flip this over to the general, and, you know, that's the point in which we don't know -- >> right. >> -- what's going to cause that flip and so i don't -- i do think the market is being a little too complacent right now, but

unfortunately, you know, we all want to have that tremendous performance for our customers and stay with all the positive momentum, but there is going to come a time where it's going to be serious and you want to be out of the market, at least in -- at least put more cash on the sidelines. i don't think we're there yet. it's going to come >> i was just going to ask cassandra, because it says in the notes here that you're looking to start to take steps to seriously protect portfolios proactively for what you see as a rocky period coming ahead. just can you give us a sense of what steps you're actually planning to take to protect your portfolio? >> yeah, i mean, we start to implement some cover call strategies more actively and we do take some nice gains and, you know, we're also getting into the -- close to the end of the year where we start to look at tax loss harvesting and paring off so our clients are tax mutual that's a good reason to start taking money off the table because it has been such a good year, and i do look out kind of

six months down the road and say how long are we going to give the north koreans because we are kind of under a time crunch here with when they actually can implement a true serious nuclear weapon capababilitcapability, ts going to take them so long so we think there's a window here where we want to prepare, we're not saying, you know, go 100 % o cash but we also think next year and particularly the first quarter is going to be rockier because by then, we'll have some more answers, we'll know if some of all of these sanctions have worked or not. >> yep. >> and that's going to be the time when you hopefully have already made some preparations >> all right very good. >> thank you for joining us. cassandra. to weigh in on the markets mike and evan, stick around. >> you guys cool your jets we're coming back here. full speed ahead

the message orrin hatch seems to be sending on tax reform we'll hear from the senator and get reaction from larry kudlow coming up. and still ahead, a cnbc special investigation on airport security we'll take you inside one of america's biggest airports to look at the special measures to protect airlines and their customers. and of course, we want to hear from you. contact the show on twitter, facebook, or e-mail us you're watching cnbc, first in business worldwide when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

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the powerful chairman of the senate finance committee, senator orrin hatch, is confident about tax reform he sat down with cnbc's ylan mui who joins us with the highlights. >> reporter: senator hatch did not seem that optimistic that the corporate kate crate can ge to 15% but seemed more sure about getting tax reform done this year. >> the president wants to down to 15%, that would be wonderful if we could get it down there. we'll be working to try to do that i sincerely doubt that we'll be able to get that -- get to that level on the corporate tax rates. >> letting this slip into 2018 would be a mistake if tax reform

takes longer than 2017. >> well, in it does, it does, but i actually believe we know enough about it that we can do this in 2017 but it's going to take a lot of cooperation of both democrats and republicans and keep in mind, that's on the committee. then when you go to the floor, it's another matter. >> reporter: on the question of whether to pay for any tax cuts, hatch said he'd be willing to add to the deficit >> i'd like to pay for everything, but we're also looking at any way we can to advance this economy and nobody wants to advance it by putting us more deeply in debt but there may come a time when we have to do some deficit spending in order to bolster the economy and get it moving ahead. >> reporter: but with the national debt now at $20 trillion, guys, hatch told me there isn't much room to play around back over to you >> already, ylan, thank you very much bring in larry, shall we

>> lar ry kudlow. i believe we heard an audible cheer for adding to the deficit. what >> brings to mind, wait a minute, what happened here. >> conservative, budget. >> the republicans are okay with deficit spending and it's the democrats that are demanding revenue neutral on this thing. what happened here >> listen, i'm a reagan supply sider. >> i know you are. >> the budget got balanced after a long period of time. the only way you can balance the budget is to grow the economy at its historical race, about 3.5% a year senator phil gramm wrote a great op-ped on this in the "journal" this week. in the short run, i could care less about budget deficits all i want is growth now, orrin hatch, great american, old friend of mine, fantastic. i got to go down there, though, have to have some therapy about the 15% corporate tax rate we'll have a therapy session. >> you think it's doable >> absolutely. look, president trump keeps saying it. steven mnuchin keeps saying it i call mnuchin the imposter of

growth there are two main numbers in this i want to reduce this whole tax plan to two numbers. 3 and 15 okay 3 is the growth rate that will be plugged in as they reject the cbo estimates. and 15%, if you give me 16% or 17%, is going to be the corporate tax rate we're the highest -- china, remember them, 15% corporate tax rate why shouldn't we be able to? of course we can because the growth pays for all of it. and orrin's -- we need a refresher course we're going to have some supply side therapy i'm going to go in, see him, with my buddy, steve moore. >> one more thing, the president said this week, yeah, middle class gets relief but the rich may not. in fact, they may end up paying more. >> yeah. they won't don't obsess about that. it's just really -- >> somebody's got to pay, larry. >> how do we prioritize?

wh how do you believe in what you don't believe? >> first of all, the business tax cut, the largest section of the entire bill, 70% of it goes to the working class and the wage earners fact. >> eventually. >> one study, one study. says that. it's not -- >> wait a second wait the cbo published these studies. now, kevin hasset, yes, a lot of other people since then, much more than one study, i beg to differ. >> why should the stock market care why should the stock market be so excited if it's just a workers -- >> well, because it's going to boost stocks and values. remember, workers own shares. >> not really, but okay. >> oh, yes, they do. 50% of american households own a share of stock compared to their income, it's pretty darn good don't go far left on me, michael. >> i'm not larry, it can't do all things. it cannot do all things. >> yes, it can it will. absolutely will. will restore economic growth let me go back to the trump thing. they're not going to raise the

rate in fact, i believe they'll wind up lowering the top tax rate a bit. he's saying we're going to tighten up on the deductions and when you add it all up, they might -- >> which deductions? >> you know what -- >> floated so many travel -- >> i understand. >> those are going to be the last -- >> staying local >> yes, staying local. there's a whole bunch of themming on tthem o the table. i personally could care less about any of that stuff. by the way, the rich will not pay more money because you take away the deductions. >> maybe in new york. >> here's the deal the rich will pay more money because of the lower tax rates reagan took office, the top tax rate was 70% the share of tax income paid by the top percent, 17% now, over the years, we went from 70% to 50% to 28% they're paying the rich at the lower ates, they're paying mor in tax revenues.

it's about, around 35%, 36%, 37%. you know why tax avoidance. you don't need tax avoidance one last thing before you throw me out. >> i'm not throwing you out. waiting for this guy over here we're carrying your water for you so far. >> larry -- >> baffling. >> i welcome the opportunity to come back here probably in january or february. >> yes, we'll be here. >> when something has passed. >> we'll be here. >> and we'll compare -- >> ten weeks. >> -- the harsh reality of an actual package -- >> what's ten weeks? >> my third number today. >> with your dream world. >> 3%. >> larry, you've been saying since we've been on since trump got elected, you've been talking about -- and nothing has happened yet that even approaches what you said your conditioandidate, trump, s he'll get 5%, 6% growth. remember those debates >> he will. >> now he's begging, maybe we'll get 3%. >> we will in the republican party get on the stick and stopped working against him and

started working for him for a change >> reality will collide with you and art's dreams >> won't be the first time let me just say this trump has a terrific turnaround here i'm more optimistic. i acknowledged during the charlottesville flap things weren't looking great, okay? although i don't think he has a racist bone in his body. here's what i want to say. trump has had tremendous turnaround by a number of inside polls, he's gained 10, 12 percentage points. >> you like the jail making with chuck and nancy? >> let's go through it very good executive handling of the hurricanes and emergencies very good. high marks for that. okay and fema and so forth. a lot different than another president ten years ago. second, the chuck and nancy show yes, because his goal was to clear the decks for tax cuts he is absolutely committed and voting to the tax cuts listen, i've been in there with him. it's not like health care, okay? so by doing this sort of bipartisan thing, you cleared away the debt, and you cleared

away keeping the government open for three months and you gave the emergency fema money so we can deal with the tragic hurricane. this was very smart. in fact, it kind of was a spanking, a spanking, as my friend, steve, says, to mitch mcconnell and paul ryan. a spanking now look what happened within 24 hours the whole thing passed that's pretty cool trump is out on the stump campaigning. hard okay even op-peds in the "milwaukee sentinel journal" in the hea heartland. all i'm saying is you got ten p budget resolution. paul ryan is coming back to his roots. ryan, looks like he's taking cbo green eye shades off finally and going back to his jack kemp supply side roots. gave a long talk, interview with the a.p., said, you know what, they asked him five times, like you guys, asked him five times,

do you have to have it revenue neutr neutral? he didn't say no all he said was i'm for growth, that's the most important thing. he knows darn well that the cbo estimates are going to be thrown out the window and replaced -- >> i got to go. >> here's the deal political will translates to ways & means trust me on this >> all right >> great seeing you. >> i'm looking towa ining forwae january, february meeting. >> the corporate tax rate in china, 10%, he debunked it many times. >> i'm on the state administration of taxation 25% corporate. >> we'll keep the conversation going here we got to go to a break. >> could be federal versus local. >> good to see you >> i don't know. that's tax foundation number. >> thank you so much. >> gotcha. >> see you later. >> ten weeks. president trump is no fan of the mainstream media neemedia p now he's turning his ire on espn what that means coming up.

still ahead, we'll hear from the founder of blue bottle coffee on why he sold to nestle instead of opting for an ipf

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from prudential. look forward to your 401k plan. thing is there must not be a downturn in the economy because if there is a downturn in the economy with this kind of a wealth gap, imagine what that would be >> that was bridgewater's ray dalio addressing the wealth gap at cnbc's delivering alpha

conference earlier this week listen to the entire discussion at deliveringalpha.com also make sure to tune in to "squawk box" tuesday morning next week to hear more from mr. dalio. that starts at 8:00 a.m. eastern. >> great stuff. president trump takes to twitter to take on espn on the heels of one of the network's anchors tweeting negative opinions about him when we come back, we'll discuss if espn's tilt toward politics is hurting its sports business being the incredibly busy man that i am, i've asked chase sapphire reserve cardmembers to scout the world to find my next vacation.

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welcome back we are on the half hour. time for a cnbc news update with sue herera hey, sue. >> hello, guys, here's what's happening at this hour, everyone the terror level has been increased to critical following the london subway terror attack during this morning's rush hour commute. injured 29 people. london police say they're chasing down suspects. >> the person or the people responsible for this attack will be caught and will be brought for justice. my message to londoners is they will see today over the course over the next few days an enhanced police presence both across london and on our public transport network a high ranking priest working in the vatican's embassy

in washington has been re-called after u.s. prosecutors asked him to be charged and face trial in a child pornography investigation. they say the diplomat was suspected of possessing but not producing or disseminating the pornography. almost 20 years after its launch, nasa's cassini spacecraft made its final voyage into the planet, saturn. the final transmission came in this morning nasa deliberately crashed the spacecraft into saturn to ensure it didn't crash into a smaller nearby moon. and that's the news update this hour. bill, that story was for you because i know you're such a space buff >> i'm a big space buff. >> i am, too. >> cassini, 20 years. >> 20 years. >> it delivered big-time >> it sure did. >> impressive science and pictures coming out of that. thank you, sue. >> you guys have a great weekend. >> you, too. >> see you later. two days after an espn anchor took to twitter to call president trump a white supremacist, the president fired back today julia boorstin joins us now with the war of words and what it

could mean for espn's business julia? >> reporter: well, bill, freedom of speech or an inappropriate comment? it seems president trump thinks it's the latter. in response to jemele hill's comments earlier this week calling the president a white supremacist, president trump weighed in today tweeting, "espn is paying a really big price for its politics and bad programming. people are dumping it in record numbers. apologize for untruth. now no one is separately dumping espn you can't because it's part of every cable bundle today's white house briefing, press secretary sarah huckabee sanders did hammer espn for a second day in a row. >> i think it is a fireable offense based on the standard that espn has set themselves by saying that people that go too far and make political comments have been suspended from their own network, i think that that is a consistentsy that they should probably focus on >> reporter: now, hill followed her initial tweet about president trump with another

saying the way she expressed these personal beliefs painted espn in an unfair light. espn saying the comments on twitter from jemele hill regarding the president do not represent the position of espn, we addressed this with jemel, and recognizes her actions were inappropriate. another person taking a swipe at espn, yesterday cbs ceo les moonves. he said this as he explained cbs' plans to launch a rival streaming sports app bill, certainly a hot area to watch here in terms of competition, perhaps much more important than these comments. >> of course, everybody wants to know about the ratings, julia. the cord cutting has been well documented i think 2014 to 2016, ratings down 19% so what is the latest chapter going to mean for the business, are we going to see those kind of declines tonight? >> reporter: well, we've heard a lot from disney ceo bob iger, also from espn about how they're trying to connect with people digitally.

espn cannot be cut separately. people can't choose to drop espn because it is part of every single cable bundle. even every digital bundle including the new ones from hulu and youtube streaming. so what disney is going to try to do to make sure that it compensates for losses is launch a direct-to-consumer espn app. they said it's going to launch in the first half of next year it's part of their investment in bamtech. the idea is they'll be able to offer people sports content both a la carte and part of a new digital bundle really interesting to watch how disney invests in that as a way to compensate for the traditional television bundle declines. >> julia, thank you. see you later. what do you think? >> stuck between a rock and a hard place if you're disney and espn you're trying to make the sports program relevant because you know the future doesn't look good in terms of the bundle, cord cutting, going forward, the cost of content. the economics for disney, for

espn, for sports programming in general, is not good so they've come up with, like, new slate to try to create hosts, try and create -- >> to be socially relevant. >> be socially relevant. why they have people tweeting all the time. >> you think this is what they had in mind, though? >> no. it's not -- they created a show for jemele and her partner, i forget what his name is. they create add show for them. it's their show. when you do that, you're creating a personality it's not, you know, espn lite, let's read the sports -- >> right, right. >> -- the results. it's supposed to engage people so you're stuck between -- on the one hand, when you do that, you're creating a risk for yourself. >> i struggle with this idea that it's actually the politics. yes, there have been a few blunders and unwanted negative press. you really think that's turning off viewers? >> that's a very tenuous relationship you have all these big trends where we've been talking about forever, fewer people doing paid tv, maybe people a little bit less interested in football. ultimately the interest in the games, themselves, what they're paying for, is the key variable. i think that it's overlay of the

political kind of story line it's not really -- but you know what, sometimes it just becomes the narrative and that's what people assume. >> well the narrative at one point was domestic violence and all sorts of other problems. that didn't affect nfl ratings. >> exactly that's why if it really does matter, basically one quarterback's being denied employment because the league's conspireing against him for political stance, you talk about that if you're a sports network, it's a little bit strange. >> got to view that in the context, nfl tv ratings not good, not good recently. that's the trend the trend is bad for espn. >> les moonves said he's not worried. >> minor bump in the bigger bumps they're dealing with. >> still a behemoth. let's move on. this is really interesting l.a.x. as you may know is the second busiest airport in the united states. we're going to get a never-before-seen look into its security, internal security. that's coming up here in a moment. and blue bottle coffee, a favorite of coffee connoisseurs like myself. now that nestle acquired a majority stake, fans can still

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security at los angeles international airport has a budget of more than $200 million per year >> yeah. morgan brennan was granted, this is unprecedented, inside access to its security operations she joins us now with a

behind-the-scenes look at its specialty s.w.a.t. team. morgan great stuff. >> reporter: hey so l.a.x. is the second busiest airport in the country it toutses a force of 1,100 including 500 sworn police officers that's more than the total number of state troopers in the state of rhode island. and that includes 24 specialists who train constantly for the worst-case scenarios this is a team known as the emergency services unit. this elite airport s.w.a.t. team storms a bus reportedly filled with hostages. >> police, don't move. >> reporter: they move in, quickly clear and secure the scene. it looks all too real. but it's really all intense training to prepare for the worst. scenes like these. >> down in front of me >> we know you're there, come out with your hands up >> reporter: played out every day around los angeles international airport. better known as l.a.x. it's the country's second

busiest and a prime target for terrorist attacks. so the unit trains around the airport including in an area called the dunes this is an abandoned ocean-front neighborhood that used to be home to hollywood grittgritterat part of the five-square mile that is l.a.x. they have a lot of equipment at their disposedisposal, automati weapons, body armor, intense toolscrisis, even armored vehicle. when a shooting happened in the airport in 2013, the last major public crisis, it was this team that was first on the scene. so for more on all of this, check out our report on cnbc.com guys >> and first of all, congratulations getting this kind of access there so important for people to know that this exists at an airport like that. and they're not only just for terror attacks from outsiders but they're investigating their

insiders at the airports as well for security reasons, right? >> reporter: yes, very much so so i should give a hat tip to our investigative producer, scott zamos. this was a project that was two years in the making and it's very unusual it doesn't happen in terms of airports giving this type of access to their security procedures and what the police chief at l.a.x. told us was that he thinks it's very important for the public to know as much as they feel, you know, safe divulging from a security standpoint about what is being done to protect the public on a daily basis. you have all the other officers and all this equipment, high-tech technology being used to keep people safe. one of the threats now is the quote/unquote insider threat so this is employees who potentially have access to the cargo hold in a plane. or who have access to people in terminals and throughout the broader airport territory. >> even though they presumably do background checks. >> reporter: they do.

>> is this all reaction to 9/11, post 9/11, morgan? >> reporter: i think it is what we've seen around the country and airports and critical infrastructure, creation of tsa and this incredible amount of spending. billions upon billions of dollars that have gone toward securing airports and airplanes in the wake of 9/11 but what's really interesting is l.a.x. has two intelligence analysts on staff. they're the only airport in the country that we're aware of that actually hires intelligence analysts directly. and what those analysts told me is that the tsa and other agencies do pretty -- a very good job securing above the, quote/unquote, wing on the plane, that's in the wake of 9 sheri /11. now going back to this insider threat concept it's really below the wing on the airfield that is the focus >> morgan, it's evan i had a question regarding how the s.w.a.t. team works with the tsa

we see studies where the tsa runs tests about getting guns or bombs through and turns out 90 some odd percent of them are not actually caught at the gate or through security we have these s.w.a.t. teams, all this, if tsa proved itself in terms of testing being that ineffective, does it matter with the s.w.a.t. team does >> i think it does when you look an at arptirport, it's a complicated puzzle, agencies on state, city, federal airport levels that are working together to basically secure the premises and make it safe for passengers as well as cargo. to be moving in and out. so there are these investigative reports we've seen in recent years about the tsa. in terms of where the jurisdiction falls, a lot of it depends on where specifically in the airport and a situation is happening. it also depends on whether the airport plane has actually been closed once it closes, it's a federal situation. but the aviation police, at

least at l.a.x., are on the ground involved with these different agencies and patrolling everything on a daily basis. >> all right again, great job >> take so much of it for granted. >> reporter: definitely. >> for sure. that is a good thing i guess if you can feel safe about that kudos to scott and the rest of the i-team there at cnbc thank you. see you later, morgan. so from on the ground safety, to in the air safety, questions are being raised over the lack of space when you fly coach. a judge has called it a life-and-death safety concern after several tests that are supposed to show that passengers can get out alive. those are shown to be outdated now. >> yeah, the "daily beast" story this week, flying coach is so cramped it could be a death trap that's the title looks into those outdated tests and evacuation testing has taken place in newer planes with shrinking seat sizes, those have not been made public let's bring in rebecca, former

faa assistant chief counsel for regulations. she now runs her own law firm. so now from the outside looking in, rebecca, that title, flying coach is so cramped it could be a death trap sounds really scary. is that an exaggeration or not >> i think it is i think it's also not really what the court said. what the court really said was that there's legitimate safety concerns that were raised and the faa failed to present documentation to support its position that the existing standa standard's perfectly safe. with that said, the faa has a very good performance standard you have to be able to demonstrate that an aircraft can be evacuated within 90 seconds of an incident with half of the emergency exits blocked. that's a really a pretty stringent test question is whether the faa should amend its regulations to make sure that the

representative population is being used in those tests. and i think that's a fair question >> okay. and that's the question we're bringing up here because as we all know, they're trying -- the airlines are taking a row of seats, they're adding a row of seats and making this -- the leg room smaller when somebody in front of you puts their seat back, i mean, it's right into your nose when you're in coach there. they're trying to migrate people, encourage them to get into those extra leg room seats. so, but at the same time, what does that do to the safety issues that didn't exist when the faa put those original plans together on how to evacuate a plane? >> so, so keep in mind that not only are the seats now closer together, but the seat backs are narrower the seat cushions that you sit on are also narrower so the actual area that you have at your feet to evacuate really hasn't changed significantly from when you had fatter, more

comfortable seats. and the aisle widths are already regulated so the big issue is can i get to the aisle and if you couldn't really safely do that, then the manufacturers wouldn't be able to pass the existing test. the risk is that in a real crash is is the person sitting next to you much, much bigger than sort of a -- someone who represents the 50th percentile of the population and is that person going to have a hard time? the faa doesn't require manufacturers to use people of all body shapes and sizes. you have to use 40% women, you have to use 30% people over 50, but there's nothing in the faa's regulations that say, boy, i really want a test for whether there's someone who is obese sitting in an aisle seat. >> it's an interesting point

boeing, by the way, did respond to the "daily beast," we just want to share that statement from boeing. "the public can be assured boeing stant yaubstantiates the evacuation capability of airplaning using the maximum allow bl number of passengers" which is significantly higher than what airlines typically use in their operations. testing included narrower than typical seats and a 28-inch seat pitch. >> by the way, we also reached out to airbus and to americanairlines, united, delta, jet blue american referred us to the airlines for america for comment. delta had no comment still have not heard from united or jet blue. we reached out to airbus they did respond here's what airbus said. "while cabin seating layouts and configurations are up to the airlines, not aircraft manufacturers, all commercial aircraft must and do meet the safety requirements established by the world's aviation regulators."

the question is, does that need to be updated? that's all. >> i think we got a -- you know, the real issue as was touched on was this idea of a representative sample. and the reality is anybody who's ever been on a plane, you do have, you know, there's an obesity obesity issue in the united states. there are very heavy people on a plane. if you're stuck in the aisle and somebody is weighing 350 pounds plus, it doesn't matter what the requirements are, you're going to be in danger. >> rebecca mcpherson, thank you for joining us a conversation we all need to have thanks, appreciate it. blue bottle will not be following in the footsteps of blue apron its founder weighs in on why the coffee company did not want to go public, when we come back later on "fast money," a top technician says there's one auto name he sees gearing up to make new record highs he'll reveal the names later tonight, coming up, "fast money," ten minute te.s'im i count on my dell small business advisor

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well, you can check high end coffee brand blue bottle off the list of silicon valley favorites who might go public. >> its founder james freeman told "the new york times," everything i've seen and read, it seems like a way of living in hell without dying, talking about an ipo what else did he tell you, deirdre? >> reporter: that's right, we caught up with him not long ago. we're at a blue bottle roastery.

blue bottle sold a majority stake to nestle that reportedly valued the company north of $700 million. i asked him why he had that adverse reaction to the question of going public. here's what he told us >> it seems like every three months, you get a spanking if everything's not perfect and it seems like -- i mean, i'm not the expert, i've never been in a public company, but it just seems like if you don't do things the way the analysts say, there's this thumbs up/thumbs down that's represented by your stock price. and it's hard, it might be hard not to internalize that, some sort of sense of self-worth in terms of your stock price. >> reporter: guys, he did not want that kind of pressure but of course it's not always easy for private companies to stay private, especially when you have investors who want to cash out james told us he's fortunate his

investors never put the pressure on him to go public, but that nestle was a way of growing sustainable and being secure as for what this means for the artisanal coffee market, guys, it may validate some of the big money that's gone into blue bottle as well as others like peet's, it might cause other food giants to take notice >> that's exactly why you're not getting ipo's. if the private market is willing to pay full price, i wouldn't go public >> although a lot of blue bottle fans are calling them a sellout, selling to a bigger corporate company. like stumptouwn, coffee snobs ride sharing servicemay s be getting an infusion of cash, coming up.

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so softbank's ceo has said that companies like uber will transform the world. he's about to back that up with a big investment, possibly as much as $10 billion.

but he wants to try to do it at a 30% discount to uber's most recent $70 billion valuation >> rival lyft isn't sitting on the investment sidelines it's working on a $1 billion deal with google parent alphabet, which is an investor in uber. what to make of these potential deals? >> my takeaway with regard to the potential lyft investment is, you used to hear it was game over, basically, that uber was going to own the space and lyft was kind of pretending and hanging around now they actually have lots of partnerships and backers obviously it's for the next phase, whatever comes after just the ride sharing apps. interesting that people are laying their bets. >> i think people will vote with their feet it will be interesting to see what the investors in uber do with the proposition that will come from softbank i happen to think they're going to realize that the valuation today, whatever, 65, $70 billion, that thing is not going

to -- nobody's hanging around for -- >> there's also this weird soap opera, alphabet, an early investor in uber, is also suing -- >> wish we could keep talking about it but "fast money" is coming up. everybody have a good weekend. kelly is back on monday. that's it for "closing bell. "fast money" does begin right now. it sure does "fast money" starts right now. live from the nasdaq market site overlooking new york's times square i'm michelle caruso-cabrera in for melissa lee. tonight, the dash for trash. a number of left for dead stocks are soaring. are any of the names worth buying traders will dive in, to the stocks, not the trash. tesla surging up 10% this week the chart master says the run isn't over yet he'll be here to tell you just how high he sees it going. later, a bitcoin