ratings? because he's gone all politics and he is -- >> i thought he was a right wing conservative pundit. >> that was the other guy. >> the other stephen colbert. >> that was the other stephen colbert. all right. that's it. >> thanks for watching "power lunch. >> my chargers are still terrible. >> "closing bell." hi, everybody, welcome to "the closing bell" on this monday, i'm kelly evans at the new york stock exchange. >> welcome back. >> thank you. >> we're 2,500 at least we were. >> i missed it. >> while you were gone there yes, another record day, another potential record close for the markets. any close higher for the dow, the s&p, would be new highs as we do spend time above 2,500 and we're well above 22,000 on the industrial average here. >> it's been quite a run the tech sector is underperforming today, though, in part because facebook is under fire again from washington this time over russia's election

meddling we'll discuss the potential impact for facebook and for the other big tech names. speaking of big tech names intel ceo brian krzanich will be here for an exculusive interview about the company's new autonomous vehicle partnership with alphabet's waymo unit that will be coming up a while from now. >> that will be very interesting. plus, find out whether a nearly $8 billion missile defense deal could signal more deal making on the horizon for the defense industry which is enjoying all-time highs in this market today. let's start, though, with facebook feeling more pressure from washington over those russian ad buys ahead of the election julia boorstin has the very latest julia? >> reporter: hey, kelly. facebook's under fire for recent revelations that russians bought ads on the social network to influence the presidential election house intelligence committee ranking member adam schiff is calling on the company to testify before congress saying "i'm distressed it has taken us this long to be informed that the russian had paid for at least $100,000 of ads designed

to try to influence our electoral process. facebook has handed over to special counsel robert mueller copies of ads and details about the accounts that bought them in the targeting criteria used. more detail than facebook provided congress about the 3,000 ads reportedly just showing them to staffers but not allowing them to keep them facebook saying, "we take our responsibility to protect the integrity of election seriously and built teams devoted to this purpose. we are providing information to special counsel including ads and related account information. so why isn't facebook making the ads publicly available the source familiar to the situation says because of federal law and ongoing investigations, facebook may face certain legal limitations to sharing those ads now this news hadnsn't had a hu impact on the stock but it's down about 1% today. we didn't see a particularly large impact, either, last week but the revelation about facebook allowing advertisers to

target based on anti-semitic terminolo terminology. >> thank you. not only the government challenging facebook right now but a former facebook executive also weighing in on regulation >> we need to know the full extent of their use of social media to influence us from facebook, from twitter, from google, from any social media or search engine. >> facebook and google effectively are surveillance states and have private information about so many stss, it has to deal with the issues. >> those on satellite radio, that was adam schiff, first sound bite you heard there what's ahead for facebook and congress circling? will we see an impact on the stock with advertisers or users? joining us, jonathan taplan, director emeritus at the usc annenberg innovative lab

and michael graham is analyst. michael, i'm going to start with you. why hasn't the stock suffered amid all this? >> i think the ultimate impact here is like toy be on the small side that's really i think what could ultimately be a big problem for facebook, i don't see it on the near-term horizon and don't see these events precipitating something like that. i think this is sachings whea s where the numbers here are pretty small facebook, you know, at first i think did the right thing by trying to protect its relationships with its advertising customers and then i think now that they're in deeper discussions with the government, they're also, again, doing the right thing by cooperating with the investigation. >> okay. professor, i don't know if i

should call you professor, mr. taplan, jonathan, how about jonathan, that's simple. do we think in facebook's space, i found facebook anowing i'm not on the plat norm do they have to run it more like a true journalistic operation or become a big regulatory target a la europe, which claims it's going to tax everybody a percentage of their revenues >> well, facebook revealed that, you know, there were $100,000 worth of ads bought from some russian account but my belief is that's probably just the tip of the iceberg. just before the french elections facebook eliminated 35,000 fake accounts my guess is that there were probably 250,000 fake accounts being used for propaganda purposes during the u.s. election sometimes facebook has said they have to kill a million fake accounts a day which is pretty

astonishing. so, i mean, the problem for us is that when you buy advertising on a tv network, you have to disclose who paid for it and where it's coming from you don't have to -- >> exactly. >> -- do any of that on facebook because they're basically protected by something called the safe harbor law which means that nobody could sue them, even if it was a completely defamatory ad, saying, you know, hillary clinton killed an fbi agent, which was one of the ads that came from the russians. so, i mean, this is a kind of thing -- >> that wasn't true? holy moly. >> and you know, ultimately i think it will lead to more regulation and you're right that the europeans are starting that. >> jonathan, you -- i said that very thing on friday, was pointing out that, you know, ads on broadcast television and radio are regulated by the fcc,

federal communications commission will we ever see a day when we're going to see ads in social media regulated in the same way? what do you think? i mean, why not? >> yeah. the federal trade commission is supposed to be regulating both these networks because they're advertising networks they don't do it they didn't regulate google ove the exact same evidence which the ftc had, which the europeans sh sued google for $2.7 billion over we've had a very lax regulatory regime my guess is they will have to start doing this and the very first thing is they will have to disclose who paid for the ads. and that will mean they will have to actually look and discover who bapaidhem doing al this, you know, complying with that kind of regulation, ultimately lower and better for facebook than if it tries to deflect that and maybe face bigger regulatory hurdles later on >> you know, they do have a long

tail of advertisers that areoceu know, advertisers opening accounts and supplying them with information. clearly, if the regulatory environment gets stricter for facebook and google and some of the other digital media platforms, then it will create an additional expense, but it sort of feels like it's the cost of doing business and the dollars flowing into this space are so robust that i feel like the companies with ill y ies wi absorb it without too much difficulty. >> i guess it would be rather unseemly if you saw an ad on facebook and at the end of it it says i'm vladimir putin and i approve of this odd. would be tough jonathan taplan, michael graham, thank you for joining us today appreciate it very much. let's get to the markets this monday. the dow up 66, was up 87 hanging in there with record highs. luca is with us today from picktat asset management at post

9 sitting next to new york stock exchange trader steve grasso and jack from ucx is with us from the cme in chicago. steve, of course, the dow had its best week of the year last week and, of course, it continues higher today >> trend is your friend, right >> we haven't had a 3% pullback, even a 5% pullback, in -- >> when we have a 1% pullback, it feels like we're at a bear market so everyone just jumps right back on, you buy those dips, still in the buy the dip mentality. if we were to have this conversation a couple hours ago, we would have been talking a iiu the trends and how the markets keep moving over those big numbers, big fat round numbers 2,500 in the s&p cash. >> funny how it closed right on that number on friday, right >> everyone shoots right for it, all the open interest staggers around those numbers we see this latest bit of hit coming on facebook as you guys introed, a lot of large cap tech names are coming under fire. people are looking for cover somewhere else does that last a week?

>> safe harbor, ironically. >> does it last a week, two weeks? is it a trend that's starting? i don't think so i think you'll see short-term weakness and the bulls will get back to running again. having said that with the short-term weakness, the market is still, to your point, bill, hanging around record levels. >> this comes from jim brown of option investor. the second longest streak since 1928 that we haven't had a 3% correction it's been ten bhomonths beaten y by an 11-month streak in 1994. luca, what does that say to you? >> we're obviously in a bull market we have strong growth globally if we look around the globe, only three countries going below trend, the uk, brazil and south afri africa stronger growth. no inflation we have central banks -- i think it's still a very solid background for equities. >> just throw darts at the market or are there particular seconder others >> we still like tech.

reducing our weightings there because the sector looks to us a little bit overbought. from a geographical point of view, we prefer cyclicals marke like europe and japan. >> yields going up at least today and the dollar bounced a little bit does anything of that have anything to do with the fed meeting this week? >> i think it's basically short covering or covering the positions people have had on you're right, bill, this is a week where people are going to be paying very close attention to the dollar. not only do we have the fed, we have the bank of japan, theresa may, starts tomorrow with president trump speaking at the u.n. all things that could move the currency markets let's face it. the currency markets are what's been moving the entire stock market look, it feels as if a lot of the easy money is behind us. you know, when you look at a trade, usually you divide it up into easy money then tough money. starting last november we saw easy money until about july or august of this year, and then, of course, it started to get a little l

tough. these incremental new highs we're making is like a death by a thousand cuts for those who are short the market they're not really convincing. worse yet, we're seeing so much pl complacency in the market. last week, we saw intraday volatility for the s&p 500 went under ten, levels we haven't seen in a long time. >> right. >> this tells me the market is going up with no worry at all and that's something to be concerned about. >> all right. >> all right, guys, thank you. appreciate it. luca, steve grasso, jack, thank you, all, for joining us today 48 minutes left in the trading session here the dow, as we established, in record territory so is the s&p and the nasdaq has fallen a little bit here so we can't count that as part of the kbrgroup. cool kids. northrop grumman, how this could be with geopolitical tension with north korea increasing by the day. intel is expanding its reach

to autonomous vehicles after reaching a partnership with the waymo unit brian krzanich tells us about the deal in an exclusive interview. we love to hear from you, reach out to our show on twitter, facebook. send us an e-mail. you're watching -- you can't do it on kelly's facebook account because it doesn't exist you're watching cnbc, first in business worldwide stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient.

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shares of defense contractor orbital atk soaring today up 20% right now after being acquired by northrop grumman for nearly $8 billion morgan brennan has details right now. morgan >> reporter: that's right, n northrop grumman buying them,

expected to close the first half of 2018. it will keep orbital initially as a standalone segment. shares rocking higher up 20% northrop grumman also up 3% on this news. that's because this will expand northrop's reach in space, missiles and missile defense these are three key areas poised for big growth thanks in part to north korea. but it also raises questions about whether the government will okay the deal remember, defense is shilly regul highly regulated already very consolidated sector guys, i'm going to toss it back over i hear you might have some breaking news. >> we do here is president trump. >> thank you very much, everybody. it's a great honor to be the president. great election victories of all-time i'll tell you, that was an exciting evening i must say i watched every moment it was a very, very exciting

time he's doing a terrific job in france he's doing what has to be done he's respected by the french people i can tell you he's respected by the people of the united states. so we have a lot of things to talk about we'll be discussing many different elements i'm not sure we should discuss all of them with the media they'll probably know before we know i want to thank you all for being here i want to thank your representatives for being here and we will have very productive meetings france is a great country, a beautiful country. i won't soon forget our dinner on the top of the eiffel tower, we really got to know each other and our families thank you very much. >> thank you thank you, everybody i will say a few words i feel very comfortable with what donald said i'll say a few words in french

for french people here [ speaking french ] i don't speo we'll break in at this point, neither does president trump apparently. >> i thought he might have been getting state secrets for a second until i realized what was going on. >> obviously this is in new york city we got the u.n. general assembly meeting this week and see the president there with french president macron let's bring in eamon javers. going to be a very busy and mementos week for president trump, isn't it? >> reporter: absolutely, bill,

such an interesting relationship with emmanuel macron with france, beginning his relationship with macron in brussels earlier this year remember the scene of the infamous handshake, both men seemed to be trying to outshake each other in terms of the grip and grin moment politicians often have macron seemed to be braced for the president's tough handshake style. then we saw the bastille day festivities over the summer where the french president invited president trump to france had him tour the military sites. some of the historical sites watched the parade on bastille day. the president seemed to really click with macron in a way that surprised a lot of observers around the world because these two men are so different in age and temperament, in politics and almost everything else there was the famous moment on that trip where they appeared to be holding hands for some period of time. which surprised a lot of observers as well. obviously, another warm encounter between the two leaders today. so, interesting geopolitics here but also interesting personal politics here between these two

leaders. we'll watch for a lot more of this later in the week the president's big speech at the u.n. general assembly is tomorrow and we'll wait to see what his message to the world is, but the white house has told us that they know that world leaders highly anticipate president trump's first speech to the u.n. general assembly tomorrow. they know they're going to be under a lot of scrutiny from around the world we'll see what the president's message is when he delivers the address tomorrow, bill. >> all right, eamon, thank you. >> reporter: you bet. now a not unrelated news, we were speaking about the defense deal today with northrop grumman buying orbital we have a big defense contractor buying a rocket company. roman is an air defense policy analyst and he's here to weigh in roman, i'm curious why orbital is still trading $2 below the all cash price being offered for the company. >> well, i think there's a little bit of question about the regulatory process, how dod will look at this there's been a number of sort of semi-big transactions along these lines that the company

will look to and certainly in its discussion with the regulators there's not a lot of degree of overlap between the two companies. and really orbital atk fills in some niches for northrop grumman's portfolio, particularly growth areas you've already alluded to. >> so morgan brennan was just saying, starting to say, the reason why northrop would be guyigu i buying buying this company for the space and missile defense. which to you is the biggest opportunity or does it matter? >> twhactually i think they're t areas that are likely to grow over a period of potentially decades. i mean, north korea missile defense is front and center right now, but, you know, over the last several years, you know, in particular the u.s. air force has gotten very concerned about access to space. what's going on in terms of satellites and the able of countries like russia and china to actually destroy satellites so i think, you know, while north korea and iran have raised

this issue of missile defense, there's even a larger discussion going on inside the pentagon about the u.s. vulnerability in space and some of the things that we need to do there so this really, you know, when you look at northrop grumman, people think about its unmanned systems, won the b-21 bomber program, has a large chunk of the f-35, this gets it into two segments that over a multidecade period are going to grow substantially. >> we showed a lot of other major defense contractors most of which are positive today including raytheon boeing, does business in here is higher, too if the market doesn't think they're going to be negatively a afe affected or not trading them that way, do you think they sort of look to orbital's style on acquisitions in the years ahead? >> you know, it's interesting because the way that the market has consolidated over the last couple decades, there's trarealy sort of nichey acquisitions to

kind of go after you saw that with lockheed perhaps the united technologies collins. i would say in the oa category, there's one company out there, aerojet, you know, it was up substantially today. i think it's the sort of pepsi to oa's coke in terms of munitions, propulsion manufacturing. but, you know, oa is a critical supplier to raytheon and lockheed as is aerojet rocketdyne interesting dynamic that needs to shake out in terms of these suppliers -- the tier 1 suppliers, raytheon, look at oa as a potential vendor for programs while northrop, itself, is a tier 1 competitor. >> there's aerojet up 7.5% today. i like the coke and pepsi a n analo analogy. >> a good one. >> roman, thanks very much. >> thanks, have a good day. 35 minutes to go dow up 72 points today above 22,300

the s&p is up three to 2,503 the russell l is the outperfo outperformer, a nine-point game. a new report finds how devastating the amazon effect could be to the nation's shopping malls we've got some eye-popping numbers on that next. >> that was eye-popping. plus bitcoin, speaking of eye-popping, down 15% so far this month even with today's bounceback we'll talk about that bounce and whether it can continue, coming up ♪

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this is really interesting, the fate and future of the shopping mall dealt another body blow today the credit rating agency, fitch, issued what it called the intense apparel retail stress test and in it, fitch is now projecting that 400 of the nation's 1,200 malls, that would be a third of the malls, could close and, of course, amazon is in large part to blame for that. >> yeah. who else, fitch assumes amazon will take 25% of the retail apparel market by 2020 25% up from 7% this year. >> wow. >> fitch also said in a major shift in the mall landscape would drive revenue decline of 25% or $60 billion for all apparel-based brick and mortar retailers. that would put severe pressure and force store closings that's how you get to those mall closures. >> this on a week when we're told toys "r" us, once the biggest toy retailer in the country, may have to file chapter 11 as early as this

week. >> talking a moment ago about how mattel is the worst performer in the nasdaq today. 5%, 6% decline, taking that to its potential end there. i think mike santoli put it well, the market sees there's no mote around these businesses now and punishing them severely for that. >> what a year this has been for retail zblmplgth we'. >> . we're on the half hour let's get to cnbc news update with sue. >> president trump meeting with israeli prime minister netanyahu at the united nations. it was the president's first one-on-one meeting of the day. president says he's optimistic about the chances for a middle east peace breakthrough. >> we're going to be discussing many things, among them peace between the palestinians and israel will be a fantastic achievement. and we are giving it an absolute go i think there's a good chance that it could happen house minority leader nancy pelosi was shouted down at a san

francisco event by young immigrants protesting her conversations with president trump on immigration policy. she was barely able to speak over the chorus of chants including shouts of "undocumented and unafraid" and at one point she simply said, just stop it. florida's state insurance regulator says policyholders so far filed nearly $2 billion in claims to insurers for damage from hurricane irma. the estimate is based on preliminary statewide data that insurers filed with the state. you're up to date. that's the news update this hour back downtown to you guys, kelly and bill i'm over here on the floor with matthew from virtue financial, we head into the close, to talk about the rally that persists against all naysayers. what ydo you make of it? >> you need naysayers to have a rally. everyone out there was shorting it we're starting to hit the all-time highs it's a grind that's what it is. we haven't seen explosive days to the upside.

grind it out, grind it out, gri grind it out. >> it's been that way for a while, months and months, years we've been talking about how you shouldn't short a dull market. the selloffs have been steep those rebouchbds are stends are. >> keeps going from sector to sector that's what's important. you haven't missed a whole lot i saw you guys were talking about biotechs they were down earlier last year. now they're huge up -- everyone's ongou jboard. another sector rotation. >> real quickly, do you think the faang trade is in danger >> it's certainly suffering a little bit, that's a rotation, again, we've been so active in the faangs, a staple of the portfolio, seeing retracement in them let's see if people pile back in here at some point the vix ticking below ten today. that was a surprise. everyone keeps talking, when it goes below ten, i'm going to buy, going to buy, going to buy. it did today we'll see what happens. >> matthew, thank you. we'll let you get back to it bill heading to the close with 29

minutes left here the dow up 70 points. record territory hulu has become the first streaming service now ever to win an emmy for the outstanding drama category that is the big emmy, itself, but up next, we're going to look at whether hulu can continue to compete with the likes of netflix and amazon despite this big victory and then later, intel ceo brian krzanich will join us in an exclusive interview to talk about the chip mak's berig autonomous driving deal with alphabet's waymo that's still to come being the incredibly busy man that i am,

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as you no doubt have heard by now, hulu certainly made its mark at the program last night "handmaid's tale" walked away with the big one, outstanding drama series. >> hul,u, what do these moves mean for the number three streaming service co-owned by disney, 21st century fox and our part compa parent company, comcast? joining us, co-founder of g geoflix, is it, mark i'll begin with you. netflix is spending in comparison to netflix.

hulu is spending pales in comparison how significant are the emmy wins >> very significant. brings a lot more attention to hulu's original content, will bi bring more top actors and talent creators into hulu, in and of itself may be the kind of program like "house of cards" was with netflix that draws people in and draws subscribers and draws a lot more interest. >> jim, clearly hulu found lightning in a bottle with "the handmaid's tale. wildly popular, wins the big emmy i'm stunned to find, though, sympat though ta though, they -- >> well, they're way behind. i mean, i think the question about "hand maid," agree, it's a great thing for them, gave them visibility, will attract people. you have to ask was this a little bit of a fluke? this was "a," a very good show,

"b" hit a political moment that really appealed to emmy voters can hulu replicate this? i don't know you know, it hasn't made its mark in original programming i think what we now realize is original programming is what this game is all about netflixggressively in that direction amazon hulu is way, way behind. announcement of $2.5 billion sounds impressive. amazon is not far behind if they want to up the spending rates, they can open their checkbooks are the hulu parents really willing to do that oh, by the way, they're also way behind hbo when it comes to original programming way ahead. distributes cable, but also is doing streaming. and then you got disney, you know, one of its owners, is coming into the streaming world with its own services coming up. so it's facing new competition and intensified competition fro.

i think it's going to be a very tough act to follow. >> although, mark, one distinguishing factor about hulu, it does offer live tv as a platform perhaps for its owners, they are trying to sort of say, hey, look at the shiny object in "the tae way, subscribe it us over the top. >> that's the distinctive factor they're trying to promote, have show time, hbo, live programming and trying to suggest that customers should come to them if they want those original packages and content and licensed old library content from parent companies. that's the distinctive factor they're trying to get the market to accept. >> mark, what about -- i mean, hulu is only in the united states you well know what it takes to penetrate china as a market. are they going to be able to do that with any great degree here do you think >> highly unlikely in the near

or midterm netflix has basically given up on china other than small licensing deals. very hard to get into china. china's like that pot of gold at the end of a leprechaun's rainbow. you can't really -- you think it's there, you know it's there, you really can't find a rainbow. the path to it to get to it. i thought netflix was very smart in saying we're going to do international expansion but not with china china is very hard to get into don't forget hulu had an operation in japan that didn't go very well and wound up selling it to japanese owner. >> anything you'd add, jim >> one good thing for hulu, it's so small now, it has a lot of potential growth here. this isn't like you substitute one product for another. you may subscribe to netflix, amazon, say, okay, i'll add hulu they can grow to 130 million, 140 million subscribers. the question is how many of these things are people going to pay for? realistically, i don't know that more than two or three is going

to make the cut. >> jim stewart proving once again the old hollywood adage, you're only as good as your most recent hit we're already saying can they do it again >> i hope they do. it's a great show. we can benefit from more content. the odds are like. >> jim, mark, good to see you both again thank you very joining us. 20 minutes to go and the dow is hanging -- oh, it's not even hanging on it is moving higher. >> yes that's the high for the session right there unless we hit it a moment ago. >> 87-point gain for the dow puts it at 2,254 equifax seeing a shakeup this weekend may be too little too late as several state governments are making new demands on the company. we're going to speak with connecticut's attorney general george jepson ahead. and last week at delivering alpha, legendary investor julian robertson told kelly about the challenges facing hedge funds and today comes word that yet stother hedge fund is biting the

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"hedge fund manager outlook" was that not optimistic about fund performances for the remainaindr of the next year. >> i love how the anodyne titles always hide the knife. as we roll into fall, there's another hedge fund shutting down leslie picker joins us with the details. >> reporter: pine river's flagship fund the latest victim in the struggling industry i'm told by two people with knowledge of the matter that it's shutting down after facing about $700 million worth of redemptions. that would be about 70% of the remaining assets in the fund so the firm decided to shutter it after 15 years. performance for the fund had been in the black this year up 1.7% through august. performance was also positive in 2016 both of those, of course, still trailed the s&p 500. pine river still has other funds, including several permanent capital vehicles this is, as you mentioned, just the latest in a string of closures it follows hugh hendry's announcement last week he'd be closing his first eclectica and

andy hall announced he'd be closing astenbeck. the city saw findustry saw fewe sures during the second quarter. fell to 222, decline from the prior quarter and same quarter last year. at the same time, hedge fund launches totaled 180 compared with 170 during the second quarter of last year and it harks back to something julian robertson told you, kelly, at last week's delivering alpha, said one of the key issues plaguing the industry right now is competition and pine river is just the latest to succumb, guys. >> tough out there >> yeah, i mean, you would have thought we're through it by now. >> no. >> leslie, just real quickly, feels like this dribble continues, don't you think there are years when it accelerates, but doesn't feel like we're through it yet. >> not at all. and, you know, digfferent reason for the closures andy hall cited algorithms, no longer as a fundamental manager

compete with the computers you're seeing redemptions. other people have different reasons for shutting down. but the fact of the matter remains that assets within the hedge fund industry continue to climb, there's $3.1 trillion in this industry right now. so despite the closures, despite the underperformance, there's still interest it's a matter of almost a darwinian aspect of weeding out the good from the bad, kelly. >> i can hear jack vogel now, if they had just bought an index fund and held, they'd still be in business. >> buffett's famous wager. >> yes. >> the list goes on. thank you, leslie. >> reporter: thank you, guys. we're heading to the close with 14 minutes left in the trading session here the dow off its highs of the session up 78 points the s&p up 4 both in record territory i guess the nasdaq is as well, up seven. shoe makers in forav of jimjim jimmy choo, takeover by michael kors

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affordable luxury retailer michael kors today closed on the $1.2 billion deal to buy luxury shoe maker jimmy choo, both names trading lower as you can see. joining us for a bull/bear debate on luxury stocks, liz

dunn, founder and ceo of proforma inc dana, ceo and chief research officer. good to see you both welcome back. >> thank you. >> are you the bull or the bear? >> i'm supposed to be the bull. >> in this case. >> i am, in fact. >> well, i hope so why? >> well, i think that luxury brands have a lot of opportunity going forward. the luxury consumer is in great shape. i like this move of luxury brands like michael kors going out and buying other things they can exploit, they can expand, they can leverage. many of their back-office operations i think that's a good move for kors. >> dana, what about you? you're not so psyched about the sector >> i think overall when you think about the luxury goods companies, there are stocks and there are companies. they had a really good first half of the year there's tougher comparisons in the second half of the year. you're going to see some of those international companies

overall. tough to compete against some of the numbers they had in the first half of the year i think acquisitions, they need to be accretive, takes time to make that happen certainly the international side of the business is more challenged than the domestic side >> what do you want to take on there? >> yeah, i mean, kors isn't my favorite name. i do think they overpaid a little bit more jimmy choo but nonetheless, i mean, i think dana is talking about many points that are nearer term, difficult comparisons. i'm sort of backing up and looking at it a bit longer term. i think these are better companies over the long haul than many of the retailers that sell them. and many of the retailers that sell nonluxury brands. i think they have more opportunity, have global businesses, can play in other categories now you're starting to see a little by of a 2.0 version of their businesses where they're not overdistributing core brands talking about kors and coach. >> right. >> really kind of pulling back on the distribution and saying how else can we bring our power to bear across maybe a portfolio of brands? >> dana, coach and kors specifically, how do you feel about their prospects? >> i think the prospects for

kors in the near term overall, they have to get their core business generating positive comps again. i think there's certainly definitely the aptitude in order to reenhance, reignite the new product offering i think that's going to be a key. i think coach in the near term overall can pose some better comps because of the newness that they have certainly, the selena gomez bag doing well but i think over the near term, there's more opportunity in coach than in kors i think joefoverall the luxury s seconder, there could be opportunities in some of these names. if they pull back given the valuations they're trading at currently. >> and, i mean, you're not a bull across the board. i mean, last time you were here i think you were talking about tiffany. >> yeah. >> there are still challenges there. >> i'm definitely not a bull on tiffany. tiffany has big challenges i think they really need to r reinvent their brand they haven't don't a pulling back live you've seen of kors, coach, ralph lauren. the companies have been for a year or two pulling back on

distribution, closing stores in some cases, pulling back on wholesale distribution tiffany is more about tiffany stores and their brand. >> exactly with coach or kors, whatever, they can make these acquisitions and expand their product line. where's tiffany going to go? >> i think tiffany dabbled in watches and they're talking about expanding their home line and, you know, they're trying to do things but they've got this one brand and are trying exploit it in multiple categories and cross multiple geographies but don't have sort of a price point play and certainly not making acquisitions i don't think they have any plans to do so. >> dana -- >> plus it's just sold in their own stores. >> i lad to look had to look up gomez coach bag after all the talk okay it's a nice bag. >> uh-oh. >> it comes in red >> right. >> is this going to be a one-trick pony for coach or start of something bigger for you? >> i think it's a little l bit something bigger that will happen i'm sorry. >> go ahead, dana. you first. >> i think it's something a little bit bigger because i think one of the things we're

seeing from luxury brands, social media and the power of social media, they need to integrate that into their advertising and marketing. one of the things you haven't seen happen is you need to see some of these luxury goods players adopt digital, adopt social media i think that advancement wild help power sales marley f s pay for some international brands. look at burbury looking to reinvent itself after it had the check pattern so long. >> right right. >> i think selena gomez is brilliant. follow especial media, they're going along with her jump ourne endorsement of the brand it's brilliant, she has one of the largest social media followings of anyone out there. >> how about this kidney transplant she had over the summertime

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head to the close, the dow up 67 points and start with -- as we pointed out earlier, had its best week biggest gain, a weekly gain, for the year last week no pullback today. and that included, by the way, the expiration we had on friday and you often will get a move the other direction the following monday it hasn't happened we were up 87 at the peak today on the dow up 67 as we head toward the close right now. yields along the treasury curve going up a little bit as we get ready for the big fed meeting tomorrow and wednesday nobody's expecting a rate increase, but we're looking for guidance on what they're thinking about as terms of inflation in the economy and interest rates down the road wti and crude oil, seven-week high as demand continues to increase as they bring more refineries back online. a very interesting story today bob pisani, i'll bring you in on this one, with talk now that toys "r" us, the once behemoth in the toy retail industry, is

getting ready to file chapter 11 maybe as early as this week. that's taking a huge toll on some of the big toy makers mattel, the biggest decliner among the big cap stocks today. >> another potential company affected by the amazon story and this just keeps going on and on now we hear talk about amazon maybe getting into the television business. we talked about that today >> buying up some niche small tv channels. >> who knows what kind of programming they could put in there and sell all sorts of new goods to them to the public as well i think the important thing about today is we got nice moment momentum, we were over the psychologically important 2,500 level. we also saw modest move up in yields here. the yield rally has been going on for a week and a half now bank stocks have moved up on that as well yet, bill, i can't believe the fed is going to talk serious about any rate hikes at all, maybe not even december. three hurricanes in the atlantic, is that not remarka e remarkable who knows what effect that might have even modestly on the u.s.

economy overall. so, again, another new high today. >> for the dow, for the zch as& nasdaq stay tuned ceo of intel joins us to talk about autonomous cars in the future wait million you suntil you seen up on the second hour of "the closing bell" with kelly evans see you tomorrow, kell. thank you, bell, welcome to "the closing bell," everybody, i'm kelly evans. a spate of record highs today. the s&p 500 adding a few more points today nearly four to close at 2,504, new record high for the market how about the dow? double the gain in percentage terms, 65 points higher for the second to close at a nice cosmic number of 22,333 the nasdaq composite i believe not in record territory, still gaining a tenth of a percent there. the russell 2000 ten points shy of its prior all-time high

the small caps the best performer today. we'll get into those in just a moment again, the dow and s&p closing at records in the session today. now we got intel announcing a new collaboration with waymo, alphabet division, to power self-driving cars. intel's chief executive brian krazanich is going to join us in a cnbc exclusive this hour to discuss that be sure to stay tuned for that looking forward to that. joining us on the panel, cnbc market commentator michael san, to li. bill, ceo, see everything "o" of smid >> you're doing pretty good. >> we're doing okay. >> number ten? >> in the top ten. >> in the top ten. >> yes, thank you. thank you very much. >> michael, i hike how you put it today, you said the market is like watching lava run uphill. >> which i mean it's impressive

that it is doing that because it isn't usually supposed to do that but after a while, it gets a little bit boring. it seems like the default mode of this market is -- almost no matter what's going on, the market goes up the question is how it gets there, what story we tell ourselves of why it's doing that the biggest five stocks in the nasdaq today all down on the day when most nasdaq names were up banks up 1%. semiconductor stocks such as faang, microsoft, apple as well in there, semiconductors up more than 1% and finds a way to stay on track. >> nvidia, amd were the best performers was that on the upgrade? >> there was an upgrade and rotation to other growth names biotech's also been a recipient of all that. plus we sort of seem to want to reprice the february rate hike in december today, upward, and that helped the banks. >> all right we have citigroup breaking up through $7 actually. i like to think of it just multiples of ten you know, that would have been

70, you know just as a way to think about how far these names have come, and if there's any further room for them to run, do you think? >> i think in bank stocks there is further room to run mike is absolutely right, this is all about interest rates. the same old story of net interest margin when it koms down comes down to it companies impacted by deposit streams do well when there's talk of interest rate increase i think for financials, i think there's opportunity for selective -- >> yeah. bill, also, today, the best performer in the dower was c was caterpillar. upgrade. interesting how well it responded to that and the idea that maybe the cyclical environment is coming through to support it what are your likes in this market, what do you think can kind of take us from the records we're already setting, you know, to new highs >> yeah, i like what mike santoli talked about today was fascinating because the faangs dropped and the anti-faangs dropped. normally we have this environment where we're excited

about target, we're excited about walgreens, you already reported on your show today that fitch thinks that one-third of the malls are going to die so on days that amazon and netflix and those stocks go down, normally you see a bounce in the anti-faang stocks and today both of those -- >> such as >> -- went down and it got overshadowed by the banks and the fact that -- let's all remember, the flood and the hurricane are going to create a huge public work s project in effect, right? what was already a pretty good economy got negatively impacted in the third quarter and then the next 12 months are going to be positively impacted by the aftermath that would explain, like you said, cyclical action, the banks with better yield spreads. >> yeah. >> and some other economically sensitive things that are responding positively because they know that there's billions of dollars to spend, putting two of the most popular states in the nation together. >> speaking of things running backwards, citi over 70. >> that's right.

i knew -- i think we all knew. >> it's really important you say that someone just had a heart attack at home. >> i apologize, as i have to do every day. let's bring sally in, shall we focusing on personal finance and investing for women, is announcing today it has raised $34.1 million in its latest fund rai fund-raise joining us is ceo of the company. >> thank you. >> good to have you on board what do you do with the fund $34 million. what does that mean? >> we raised money, we got a great response from the women engaging with us when we started this a couple years ago, women don't want to invest, can't get them to invest, women are a niche market, it just isn't big enough women control $5 trillion of investable assets. they control with their spouses and partners another $6 trillion we're the digital adviser focused on them. they're beginning to invest with us it's of course still early days. we're a startup. they're asking us to do more. >> you got venus williams

involved what is she -- >> we got a fantastic group of investors. venus williams is one of them, mellody hobson is hoot we have investors who really care about our mission rethink impact which invest, a mission-based, gender lens investor salesforce, so instrumental in closing the gender gap at salesforce.com penny who did work for women within the commerce department it was important to me that we bring in investors who were really aligned with what we wanted to do and really believe in our mission. >> i like, michael, if you can help us, situate these developments within the markets. >> yeah. i mean, obviously the trend toward the digital advisory platforms where basically you plug into a smart way of having this automated engagement with the markets is pretty well established. i think the question i actually have for sally would be, you mentioned some of the pushback you get, right in terms of the general opportunities in the market. but what about from an

individual female investor perspective, what is different about what they need, or what the platform is going to do relative to, you know, i mean, all money's green so why does it matter >> well, look, you know, what i would say is when people say they don't need their own thing, women don't invest as much as men do and it costs women hundreds of thousands or millions of dollars over the course of their lives. so we do things for them like forecast out that they live longer super important for retirement planning that their salaries peak sooner. really discouraging but super important for their planning as well as more subtle things like the fact that, you know what, they're goal based they aren't watching a lot of cramer at night and talking about their stock picking. they're much more about i want to retire well, toipt bi want t home, how much will that cost, what are the tradeoffs i can make and can i get there >> i'll push back on this whole notion that there isn't a marketplace for women investors. >> yeah. >> i am ceo of an investment

advisory company tremendous numbers of women that we're working with, women that are either divorced, perhaps they're widowed, happen to be single whatever it might be and women who actually control the household wealth even if they're in a marriage. >> $5 trillion. >> there are many advisers and many firms that do well, but what still is the case is women keep 70%-plus of their money in cash and so they're losing out. and so -- >> that's very true. >> -- overall the industry has been much more geared toward men. love men love them. been married to a couple of them think they're amazing. >> there's a but coming. >> well, however, in an industry that has 86% male financial advisers, we hear from a lot of women, you know, i don't see myself there with high minimums, i'm not able to reach that minimum. right? >> bill -- >> something isn't working. >> what were you going to say, bill >> sally, isn't there quite an opportunity among women financial advisers in that, you know, the baby boomers, like

myself, that are financial advisers and wealth managers, they're going to retire in thefection five thnext five to ten years. isn't there a big tunnopportuni for 30, 35-year-old women to step in and be a major force i'd like to say they're very welcome with smid capital management as a stock picker as well. >> don't worry, they're welcome with elevest as well part of what we're spending the money for is to bring financial planners, financial advisers in because what we're seeing, which the big guys are seeing, too, is that people don't want technology or people they want technology and people. >> correct. >> so, look, i -- you know, financial -- women financial tha great job, a great career for them we don't have enough of them. >> that's very true. >> let me wrap this up in terms of the market day as well. just to emphasize, coming after records for the dow and s&p. michael, haven't had a chance to ask you what you're doing for

your clients at this juncture. >> we're not bailing on stocks we're a little more conservativ than faang stocks. kind of boring, but dividend paying stuff, lower duration, fixed income volatility matters we're looking for returns but looking at volatility as well. >> bill, i wanted to follow-up with you talking earlier about the anti-faang trade, what did you mean by that >> certain industries are supposed to be completely destroyed by the faang companies, the media business, the retail, non-netflix, non-amazon consumer discretionary has been getting crushed and when it's all sorted out, the -- the place to go now, psychologically, is buy where everyone else is scared to death and that's where the targets and the walgreens -- because you know, there's rumors that amazon was going to get into the farmsy business well, it's great to say that from a regulatory and logistic standpoint, that is a nightmare

that they haven't yet taken on >> all right everybody, thank you so much sally, congratulations. >> thank you. >> congratulations. >> phil. and michael. for all joining us today. first congress had equifax in its sights. now the company's giant data breach has state governments wanting action up next, we'll talk to attorney general george jeps sonjepsen ar want from ex-fquifax. we always want to hear from you, contact the show via twitter, facebook, or send us an twitter, facebook, or send us an e-mail closingbell@nbcuni.com you're watching cnbc, first in business worldwide bought our fe together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings

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welcome back equifax is continuing to feel the heat regarding its massive data breach including top executives leaving on friday, several attorneys general wrote a letter to equifax asking to stop checking fees for credit monitoring.conn, george jepsen. more on what he wants from the company and its competitors, we're joined by mr. jepsen,

connecticuts's attorney general. thanks for joining us, sir. >> great to be on. >> several states going after this company how do you guys talk mojs yourse amongst yourselves to figure out what's going to take the lead? >> we work together on these national issues and early on when the breach was disclosed, two weeks ago i think, connecticut, yil yillinois and pennsylvania a.g.s pooled and wrote equifax, later joined by washington, d.c. tox find out exactly what happened and what was being don't to correct the situation. it became clear to us over the course of the following week at the rollout was in some respects botched and we reached out to fellow attorneys general on a national basis and we had 34 of them signed on to a second letter which made specific requests from equifax. especially in the area of not charging consumers whose

personal information has been compromised shouldn't be paying for the mitigation of that loss. and so there are a couple areas in which equifax is charging consumers. >> and so how does it work at this stage of equifax's response to all this that the attorneys general are attempting to guide the process of how they rectify these things on a customer basis. i mean, is there also another -- is it the same effort that would try to hold them accountable in general, for this, this whole breach >> yes, this is not uncommon we collectively investigated target, home depot, anthem and other breaches they corrected some things there was some confusion as to whether buy signing up for free credit monitoring you were waiving your rights, your legal rights, for example, class action lawsuits. that's been clarified. no, you do not waive your legal rights for example, while free credit monitoring is available to consumers, they have not disabled their link to a fee-based credit monitoring

service. we just checked it on the car driving over to the studio here, and if you go to the wrong box, you don't get the free credit monitoring, you pay $17.95 a month. there's also -- >> yeah, i was just going to say, i noticed that you guys also have an issue about whether the security -- the credit freeze they're putting if plan complies with the law. is that right? >> that is correct the big thing that we're worried about is while if you want to get a security freeze, which means that nobody could open up credit in your name without the bank or whatever it is checking with you, well, that's for free from equifax if you extend that to other credit monitoring services like transunion, experian, you'll be charged for them usually, like, $12 to put the freeze in place. $10 to put the freeze in place $12 to remove it and that's not right it's just wrong that consumers protecting themselves due to

equifax's negligence should be on the hook for those kinds of fees that can mount up. >> and just before we go, i mean, how far do you push this, are you looking for the company to pay fines to your state, looking to give money to consumers for relief or prevent them from some of the practices you're describing? >> the first step is protecting consumers and doing everything possible to mitigate the risk for consumers to have their compromised information actually being used the second step is really to find out exactly -- i can't comment on what fines might be sought until we know exactly what happened. there is -- there's reason to believe that equifax failed to -- they -- a patch to where the breach occurred became available in march of this year, and the breach occurred in may they had two months to fix the issue once it had been identified on the national basis and did not do so. at least that's what we've been told. >> mr. attorney general, thank you for joining us today.

>> thanks for having me. >> george jepsen, attorney general of connecticut senator elizabeth warren will weigh in on the equifax data breach and her legislation she's pushing tomorrow on cnbc's "mad money" with jim cramer at 6:00 p.m. eastern. meantime ryanair facing a big air for flight cancelations. how much the discount airline could be paying is up next in today's fast take. coming up, we're following the bouncing bitcoin it's up, it's down, it's up again, even as china cracks down on the cryptocurrency. we'll look at bitcoin's volatility coming up my dell small business advisor

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it is time now for "fast take." today. we begin with a vacation snafu that is causing ryanair to cancel dozens of flights every day for the next six weeks michael, the airline apparently changed its internal calendar to end of december instead of march. so the budget airline's pilots are scrambling to take their vacation days before december. what do you make of this >> obviously a clumsy transition also doesn't it seem like kind of an outgrowth of what we knew which was a pilot shortage, companies trying to run lean and have these automated systems kind of take care of a lot of the logistics for them so, you know, horrible kind of self-inflicted -- >> self-inflicted, they couldn't have foreseen this. >> right. >> and thought, oh, okay, this is sfwoing going to happen, let track -- >> going to change the calendar, how would you not let them flex the days >> if we want a day off, we have to ask two years in advance. for a pilot? >> seems like it's plenty of human interaction in that

process. >> exactly up next, here's a development that makes me cringe a little the hot new investing class is lawsuits according to the "wall street journal", because of the money pouring into the sector, fund managers running algorithms, filings to flag possible suits to invest in. am i wrong to be wary of this? >> i think on some level, there are aspects of it that maybe we're going to be wary of. the one that comes to mind is the idea that just putting money behind one side of a lawsuit can, in fact, affect the outcome. maybe it seems like a little bit of a self-fulfilling type of asset class. >> this is not new on the scene, success is why it's attracting so many more funds. i noticed in the article, they said while this traditionally goes to prosecutorial types of suits, it's starting to flow into defense as well. >> right we're talking about corporate disputes that sometimes you would want to pick the side. you could probably abstract it to some theoretical good and

say, well, the loser is going to be some kind of a bad actor that interferes with the proper operation of capital so we're going to profit from that. >> i just think the very people who would most decry are society. if you think -- >> it shows you obviously also just the scramble for any kind of asset class that's not correlated to the traditional financial markets. >> that's for sure and finally, here's the hot new market sector this year. it's not faang, it's health care tools and services such as sector with names like perkin elmer, up 42% this year, mike you flagged this today. >> this is just in the course of kind of seeing what's working, what's not and you ask why. why would it be this kind of very obscure year? i think the market is looking for long-term organic growth stories with some kind of a demographic tailwind i mean, product cycles are long. whatever you want to talk about. they're health care but it's not pharma risk, not biotech, drug test risk. >> it's brilliant in a way

again, give credit to the market for having sniffed this one out. >> it's essentially kind of, you know, the old traditional sell the picks and shovel to the gold rush people. but they're expensive stocks now. are too many people hiding in this one area that seems like it's got momentum >> now that you flagged it, party's over. >> i'll try to come to a conclusion. >> i look forward to that. bitcoin is having a wild week but recovered by more than a third since its low on friday. meanwhile, china announced plans to close exchanges and crack down more broadly and bitcoin is still up 10% today. what's next for the cryptocurrency and china's significan significance, next for once i'vf time. what's going on? so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. thanks. yeah. that would be great. we've grown to over $900 billion in assets under care... by being proactive, not reactive.

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welcome back couple record highs on wall street today a 63-point gain for the dow to close at 22,331. that's a new high for that index on the close s&p 500 up 3 1/2 points to 2,503. it first closed above 2,500 last week extending that in the session today. six-point gain for the nasdaq. nine points for the russell. agreeing across the board today. time for a cnbc news update. let's get over to sue herera. >> hi, kelly, thanks so much here's what's happening at this hour, everyone british prime minister theresa may arriving in ottawa for a meeting with the canadian prime minister justin trudeau. trade issues are expected to

dominate that agenda the british prime minister's next stop, new york city, where she will taeattend a session ofh u.n. general assembly. three people were killed after a new york city bus and tour bus collided this morning in queens. you're watching surveillance video of that. a small fire also broke out when one of the buses slammed into a building that housed a restaurant cause of the crash is under investigation. seaworld welcoming a new calf to its beluga whale family over the weekend the company says the birth is important in educating the public and conserving the species. but as you probably know, seaworld has been heavily criticized for keeping whales in captivity. a cute little guy. not sure whether it's a boy or a girl yet i'll keep you posted. >> i know, they are adorable. >> they really are back to you, kell. >> sue, thank you. >> you got it. >> sue herera. hurricane jose is making its way north along the east coast of the u.s and maria just grew to a category 3 storm.ughlin joins us

the latest >> the latest update will come out, i suspect jose will no longer be a hurricane but a tropical storm na for that reason we have tropical storm and not hurricane watches and warnings from delaware up to cape cod where we could have a storm surge of two to three feet anywhere yellow areas, delaware, jersey shore, long island, coastal connecticut, this is where we have rainfall totals 1 to 3 inches and winds gusting up to about 50 the bull's-eye is the red area cape cod and coastal rhode island we could have wind gusts up to 70 miles per hour. 3 to 5, maybe up to 8 inches of rain in a couple of spots. i want to show you the high tide times. now we have one high tide coming in tomorrow morning. but it's really tomorrow evening we think there will be the worst flooding atlantic city, 7:45 p.m., montauk, new york, 9:04 p.m. plymouth, massachusetts, 11:36 p.m. real quickly, let's go back to the maps and walk this way

i want to show you what we're going to be talking about tomorrow we got maria, 125 mile per hour winds. gets up to 130 it's category 4 if it gets up to 157. category 5, a direct line for puerto rico and then the question is, how do jose and maria interact with each other one model takes maria directly into cape hatteras, north carolina, possibly up the east coast as a hurricane another model loses jose and kind of combines these two storms into one. about a week from now just off the coast of new england what will happen well, that is what we'll be working on the next couple of days we can tell you this, major category 4 hurricane about to happen and possibly make landfall directly over puerto rico over the next couple of days >> yeah. it has been relentless this year i fwguess we were overdue. steve, thank you very much. bitcoin fell 15% this month so far ahead, whether it can bounce back, build on its 10% gain

today. intel's ceo brian krzanich will discuss the company's collaboration with waymo on autonomous vehicles. that's still ahead u'ating cnbc first in business worldwide. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. that's why a cutting edgeworld. university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep

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of harsh criticism by jamie dimon who last week called bitcoin a fraud. joining us with more, brian kelly, founder of brian kelly capital management and is on the phone because brian, can anyone get around the city today with the u.n. >> no. the sooner they move that thing out of the city, the better for d.c.'s case. >> we'll see if the president has anything -- >> yeah. well, if you have a word in with him, tell him. >> yes we will convey that. but tell us what you think of bitcoin's rebound today. how significant, brian, is china to bitcoin action in the first place? >> yeah, so china used to be very important they used to make up 90% of the volu volume they make up less than 10% of the volume right now china is important on the sentiment issue, in terms of trading volume, it's not as important as it was in 2016. in terms of how bitcoin's reacting, i think it's very positive the news from china is some of the news the stuff that keeps me up at night, you know, a total ban of bitcoin the fact that bitcoin is

resilient to that, to me, is very positive for it as an asset. >> brian, you say that it's, you know, by far the largest source of volume is now japan is that not just kind of the shadow, though, of what's happening in china, basically people trying to move capital out of there >> you know, it's hard to tell to get the exact numbers what is coming from china, that's exactly what china is trying to prevent. i will say in japan, most of the major banks and a lot of the japanese individuals are trading bitcoin. i mean, you know, the japanese individuals are very big spot foreign currency traders so they're used to this type of thing and there's a lot of demand for it. to separate out to china, i'm sure some people that are finding a channel to japan, but i would say it's probably less than 10% of the volume >> so if they're going to do this, is it possible as more of a signpost than anything else? i mean, it is interesting, brian, that bitcoin is not for fazed by this. if china does it, do other

countries start to pile on as well look at the bis, bank of international settleles, quote/unquote, central bank for central banks over the weekend putting out a report saying the world central banks need to look at bitcoin and study it a little l more seriously. >> yeah, again, this is why big fear early days of the technology, early days of this as an asset class. my biggest fear is you get this worldwide ban in bitcoin the reason why i don't thichnk it's going to happen, you've seen other countries particularly the u.s. move in a bitcoin, cryptocurrency friendly japan, south korea, has a very bitcoin friendly, cryptocurrency friendly regime. the fcc said, list, there are initial coin offerings in cry o cryptocurrency that aren't securities the ones that aren't currencies are okay to trade. >> interesting you interpreted it that way. when i heard the way the s.e.c. and canadian authorities are

talking about it seem to indicate if there's any evidence you behave like a security, we're going to regulate you like that whether that means we're doing this retroactively or not, you're on watch. >> you're definitely on watch. i don't think they're necessarily focusing in on actual bitcoin into dollar transactions and things like that as far as i can tell, it's these other vehicles that wrap around it, maybe the s.e.c. wants to claim some kind of jurisdiction over that. it's fascinating brian, you say you've been encouraged by the way the marke absorbed this measure by china it's funny because the bulls on bitcoin love the idea the authorities don't want you to be able to do this, it's an outlaw thing, maverick thing. at what point does that get taken too far? does the price get disengaged from what the technological opportunity is >> that's a great question and, yes, without question part of bitcoin community that wants

this to be kind of the jaut louw type of thing. it was designed to resist this exact type thing my view on all of this, bitcoin, cryptocurrencies to fill their potential as web 3.0, it's going to have to have hooks into the normal system. sb into our regulatory system. i frankly would welcome them regulating these i actually think they should if it's a security, walks like a duck, quacks like a duck, regulate it as a duck. >> all right brian, thank you very much appreciate you joining us. >> my pleasure. >> logistical challenge. brian kelly. >> the u.n. has to just become a block chain enabled network. >> a distributed ledger. we have a news alert on fed fedex. let's get to morgan brennan with those details. >> reporter: hey, kelly, that's right, fedex saying it will increase shipping rates effective january 1st, 2018. fedex express, fedex ground, fedex freight increase shipping rates by an average of 4.9%. also notable here, there's some additional fees that fedex is adding it says effective january 22nd,

2018, a third-party billing surcharge will apply to fedex express and ground shipments billed to a third party. also the applicable criteria, pricing for packages that require additional handling, oversized or unauthorized will change smart post, weight pricing and over length surcharge of $85 per shipment within fedex freight. that indicates the company which has been saying it's looking to increase profitability as volumes increase, it looks like it's getting increasingly creative in the ways it's looking to do that so of course, all this coming from fedex just less than 24 hours before it reports earnings after the bell tomorrow. kelly, back over to you. >> morgan, thank you the shares aren't moving much. might michael, i was about to go on a long thing how they're doing this for the holiday season but then it said it's going effective jan 1st. >> in general, to have fedex get paid for the inevestments they'r

having to make into the infrastructure, leveled to peak areas. some of it get absorbed by the i e-commerce. >> trying to push a lot more through onto the customers to deal with this year and say these are huge things we're having to ship more now, more and more is going online we and bear the cost. >> good problems to have but becomes a problem at some point. >> that's true. intel is announcing new inroads into self-driving cars ahead ceo brian krzanich will join us in a cnbc exclusive interview to discuss that. ahead on "fast money" one of wall street's big ef bulls says ny hasn't been bullish enough. to dwyer will tell us what has him so excited stay tuned (bell ringing)

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. welcome back intel is announcing the company is collaborating with waymo on self-driving car technology. john joins us for more on that along with intel ceo brian krzanich in an exclusive interview. john >> thank you, kelly. brian, good afternoon. >> good afternoon, john. welcome. >> so, big announcement from you guys i want to get clarity on the relationship between intel and waymo, what this means for the way self-driving technology is going to be advanced back in february, waymo made a big deal of the fact that it's going to develop a hardware and software for self-driving inhouse. you're a part of that, but in your view, is anything changing? how big a part is intel going to be >> sure. i mean, we've had a deep relationship with waymo for quite a long time.

helping them develop and bring the technology to market and really what we're doing, john, is bringing our silicon leadership, zion core, intel infrastructure, together with their ip, their intellectual property, around cetrifusion, how the car sees the world and does the mapping in the world. great case of two companies coming together bringing their strengths. absolutely bringing their artificial intelligence thin th case, the mapping, sensor fusion bringing the driving and silicon technology together. >> brian, i also want to ask about artificial intelligence. you have an announcement today that intel has invested $1 billion in the a.i. ecosystem. nvidia, your rival, has also just been going gangbusters. the stock has, anyway, on a.i.e peckation expectations it's tripled in the last year. bank of america, merle lirill l

we expect the chip market to feature one dominant supplier, we think nvidia. why are they wrong >> they're absolutely wrong. when you look at the a.i. industry, you have to look at, one, it's in its infancy, just beginning. the technology is just starting. and rather than a singular solution, like the gpu guys are bringing, what we're bringing is really a wide swath of solutions. and so we can go -- we acquired nirvana for the highest performing technologies. we acquired mobileye we acquired saffron. we acquired movidious we have the largest collection of technologies we can bring to artificial intelligence and at the end, we don't think any one of those solutions -- we can

also bring our fp fwrgas. video analytics and video a.i. strongest part we use in infrastructu infrastructures. we got a wide variety. artificial intelligence is not one solution i think the autonomous car is a great example. look who's winning there we're winning. you see the waymm announcement, mobileye and intel, bmw, fiat chrysler, vw there are many more to come. >> so intel bought mobileye and before, you guys did that transaction, mobileye and tesla had a little bit of trouble working together back in 2016 why is this relationship with waymo going to be different? another, you know, autonomous driving company that wants to control the whole vertical experience >> you know, i think one of the big differences is the level of engineering and the depth of the capability that you see in waymo

and, you know, really they have the most number of miles and the most -- some of the most advanced technology out there right now with self-driving and we've been with them for quite a while. we've been developing this capability with them for some time so this is really, just really solidifying this relationship and really becoming public with it and telling the world that we're going to go even deeper. you're going to see us building custom technology for waymo. that's a bit different from the relationship that was going on between, say, mobileye and tesla which is really a vendor/supplier kind of relationship there. >> i do wonder -- brian, thank you again for joining us it's kelly now. >> hi, kelly. >> i wonder seeing google's ambitions in the chip business already, why can't they ultimately bring this technology to bear? why do they need you guys long term >> well, i mean, for one thing, fabs are hard. this leading-edge technology, i

mean, autonomous cars, and a.i. in general, it is one of the great examples of using moore's law, more than anything else and so if you're building a technology for the long haul and you know it's going to benefit and really grow by moore's law, what do you do other than partner with the company that leads and really drives moore's law? and so, you know, i think that's why they're coming they're bringing their own intellectual property, bringing the compute and models of artificial intelligence for this they're going to work together with our zion but also our connectivity like 5g connectivity again, we have the able ility to bring the technology, when you build one of the cars think about the bumper to the data center. >> finally, related to that, brian, a few years ago baron's had a front page, watch out, intel, facebook is coming. facebook has been distracted by a few other things lately. just with its core social

network. when you guys sort of skip ahead from mobile to the next platform being a.i., how many more different types of acquisitions and deals might you have to make to ensure that intel is a part of that future >> sure, so right now we think we made the core ones that we have to make so we'vedone, you know, the altera acquisition for f-pg a's and how video analytics are powdered we have done, which are some smaller once and know mobile eye. we think that is pretty much the right mixture to span the technologies that we need. you'll probably see our small tuck-ins with accelerators, small evens every silicon that we can build in that will add to the artificial intelligence capabilities, but i think we have gotten most of what we need

now from an acquisition standpoint. >> brian, is this autonomous car technology going to be sort of the skate text case for the new flexible intel it used to be with a pc era and server era, at least, intel developed the high performance technology and happeneded it on the oems and said here you go, this is as good as it gets now it sounds like you'll be customizing the chips to the needs of the suppliers, bringing in the software capabilities from mobile eye at the same time autonomous driving, is that the first scale time we'll see this new model? >> actually, it's already going in the data center we do tens of custom parts for our various data partners. some of those are around just big data type applications, some around artificial intelligence we have many more of those arrangements and partnerships going into the future, but, you know, on the broader scale, yes,

these applications, whether it's artificial intelligence or autonomous driving, you have to not -- you can't provide them the complete solution and it rides with a generic software like windows or android. there's a lot of integration between the car, the driving experience, the functional safety you have to have a much more open platform. that's really both with mobile eye and autonomous driving the waymo partnership is a great example, but we're doing that in the data center around artificial intelligence as well. >> gentlemen, thank you both jon, appreciate you joining us for in announcement and brian krzanich, you as well thank you. pet tango is one of the brazell's leading -- the cofounder will join us next with where he's seeing disruptions and opportunities right after this the mercedes-benz gle

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next week will mark the one-year anniversary of the passing of former palestinian

prime minister shimon press. his book was released last week. hi son is one of the cofounders of pitango himesie joins me are you in town for the u.n. >> yes, i am, meeting from sliders from around the world, but also promoting the book. >> do you work sort of behind the scenes on the peace process, or do you steer clear? >> we actually work with the palestinians on what we call innovation affairs, not on peace agreements, but we're trying to promote some peace through collaboration and innovation. >> what do you mean by innovation affairs that's interesting. >> that means there's opportunity in the middle east to build a network for internet in arabic just like the chinese built their own chinese-speaking interinert market. this is a great opportunity for the middle east. it calls for support from

global% prices and foster entrepreneurship that means mobilizing more investments into the middle east in or to drive the growth of the net. >> i'm thinking, michael about the enter net of in arabic. >> essentially a parallel internet as opposed to the way it is right now? >> just like an english-speaking market, a chinese one, you have great companies in america, great companies in china which are completely different markets. the same accounting done in the middle east. >> i'm thinking about emojis used in any language, but the desk stop interface, what is it like with people et cetera priorities in actual usage today? is it a lot of messaging apps on phone? a lot of adoption or furse behind in the west >> first of all, arabic is the

fastest growing lange wang on the internet commerce is, of course, the one that evolves dramatically. we just saw the acquisition of zook by amazon there's new unicorns coming up from the middle east, so i think it is the beginning. >> when you look at investments, via runs up and down fifth avenue here, so do you try to stick to companies that might be coming out of the silicon valley or looking for unkeiating companies? it has such a thriving culture, plenty of opportunities i would imagine in your own backyard. >> israel is visiting in new technologies for the global markets. the arab community is also starting to participate in what we call the start upnation story, but we believe our mission is not only to work on the global markets, but also try

to foster inos investigation in the middle east. we call it the start-up region. >> is creating more of a cohesive market there? can you see tangible effects in terms of relationships between israelis and palestinians? or is this back behind the scenes >> absolutely. there's more than you know, but less than we want. it is done without borders it's easier to collaborate when you talk about innovation, software, internet than sending goods back and forth, but i believe in ten years the middle east will be completely changed just like the china ears market change fred 25 years ago, like africa is changing this is another region that will change it will take some time. >> with the final few seconds, what are the prospects for via >> well, i'm a proud board member of via. recently they got major investment from daimler benz, so there's a strategic collaboration between the two

companies. i believe that via is actually presenting the right service for commuters in the cities. i know in new york it works very well, so in chicago and washington, d.c. and many others we'll let you go use it, or maybe i will chemi press, thank you so much. that does it for "closing bell" today. "fast money" begins right now. indeed it does i'm scott wapner in tonight for me will issa lee one of the bullish strategists says he's not do not w