the pictures are so dramatic. >> this comes ten days after another very severe earthquake in the southern part of mexico so they were already on watch for aftershocks. one thing to watch for, mexicans will sleep outside at night for the next as a result of this earthquake. >> and marie you coa coming into rico, thoughts and prayers with everybody out there. a tough couple weeks. >> sure has. >> thanks for watching "power lunch. >> "closing bell" starts right now. and we'll have more coverage of all of these events welcome to "the closing bell," everybody, i'm kelly evans at the new york stock exchange. >> i'm bill griffeth, the dow, s&p and nasdaq on track to close at record highs. coming up, we're going to talk about whether the sky is the limit for this market right now. even as the fed begins its two days of meetings here. >> so much to distract us, again, a stalwart move higher today. hurricane maria is threatening to devastate puerto rico after causing catastrophic damage to dominica already we're going to look at how bad and costly the storm could be as

we track it. >> talking to an official down there. looks like progress is finally being made in congress on two of president trump's biggest agenda items, that would be tax reform and replacing obamacare. we head live to capitol hill for the latest details on that. we also have fedex, adobe, bed bath & beyond reporting earnings after the bell today, a few days sinces we've had bigger earnings to recover. we'll bring you instant analysis as soon as the results are released bed, bath down 2%. >> fedex getting ready to raise rates. we begin with hurricane maria gaining strength yet again heading right toward puerto rico w wtvj meteorologist steve mclaughlin with the latest. >> a couple days ago the storm was what we call 96l, a big storm in the ocean by saturday 5:00 pvm, it was tropical storm marine ya, sunday 5:00 p.m., hurricane maria last night at 7:45, category 5 with winds of 160. that is where we are right now

the track right across the virgin islands especially st. croix as a major hurricane, slamming into puerto rico. this could be their worst storm ever if it takes that exact center track as a category 4 or 5 then just north of the dominican republic, just to the east of turks and caicos, then into the bahamas. so let's talk about quhwhat thi storm will be doing over the next couple days puerto rico, 150 mile per hour sustained winds, gusts as high as 180 indications we could see numbers closer to 18 to 24 inches in a couple of spots. 4 to 6 foot storm surge. and even potential tornadoes this is just a giant storm now, let's change up the graphics a little by right now, talk about what else is going on as we switch to our current satellite. see where the storm was. it just demolished dominica. we're getting reports of widespread devastation and communication lines are down so we don't have all the

details. it is bad. we'll get more on that in the coming days. finally, real quickly, a look at what happens next. maria is coming up toward the united states. jose is just off the coast of new england. jose and maria will interact does jose push maria into north carolina do the two systems merge as one? or is maria going out to sea this is what we think the storm is going to be close in seven days, if you're watching on the east coast, even in new york and boston, stay tuned you might have a hurricane nearby even if it doesn't make landfall we'll be here all day tomorrow, of course, with updates as we think this storm will be directly on top of puerto rico this time tomorrow >> and before you go, steve, are you -- is it too early to say where in puerto rico will it hit relative to irma essentially the same areas or some different location do you think? >> so irma was much bigger, 185, but it actually went north of puerto rico and never made

landfall it was the northern half of the island that got slammed. the track right now is for a direct hit slicing right through the island if anything, san juan is in the cross hairs with the entire island, st. croix, really need to watch out for this storm. >> all right, steve, thank you, steve mclaughlin back at headquarters puerto rico is still recoveringing from the irma devastation he mentioned now has to brace for maria >> joining us on the phone is puerto rico congresswoman jennifer gonzalez-colon. miss congressman, this has to be dismaying when you hear what he's saying now about where this is likely to hit it's going to be a direct hit on the island there >> yes, and actually people here very scared. we've nef bever been hit by a hurricane of this category before since 1928. at that time, there were more than 5,000 people who lost their lives in that kind of hurricane. so we're very concerned. the governor has taken measures. i'll tell you that fema and all the federal agencies in the

island are doing a wonderful job moving people and actually we got more than 500 shelters this time and asking people to move and be safe. you can recover property but you can never recover a life >> do you -- >> so at this time, there's still a lot of rain in the island right now and we're lo looking forward to having the landfall of maria tomorrow the whole day. >> i was just going to ask congresswoman, what kind of power resources you have we know the last time with the storm not even as bad as this, you guys lost power for months and months i don't know how you're still recovering from irma what kind of resources are available? >> actually, we still got more than 70,000 people without power from the last hurricane irma and i just spoke a few minutes ago with the fema director and

we were asking him to have more resourc resources. in terms of electrical teams that can help us out to solve the situation, and recover dangerous -- the power grid on the island that's going to be the main issue and the second one is going to be communications some people are saying that we may -- we may lose our communications during the storm. the airports and the ports are going to be closed today at 7:00 p.m. eastern time and then we expect them to be open maybe later on thursday night or even friday morning but still we got -- we're going to have a lot of rain, a lot of water. 12 to 18 inches of water and that's a lot, that may cause a lot of flooding and erosion in so many areas. so right now, we're taking

people who got wooden houses because they're not going to be safe in those kind of houses at this time. >> congresswoman jennifer gonzalez-colon, we certainly wish you well. if there's a silver lining, it's that fema's already on site because of irma, but we -- let's just hope that everything works out. thank you for joining us, appreciate it. >> yeah, thank you >> thank you >> wow meantime, senate republicans today are reaching a tentative budget and tax reform deal let's get to ylan mui who has the latest out of washington this hour. >> reporter: kelly, that's actually from senator bob corker he sits on the budget committee and that's actually where the process for tax reform has to start. i'm told that republican lawmakers on that committee are looking at a package of between $1 trillion to $2 trillion in tax cuts, and that a package would likely also add to the deficit. now senator corker had been on the low end of that spectrum he's been worried about the

impact of the national debt, but other republican members of the committee that i spoke to this morning including senator mike crepo of do idaho hope dynamic scoring can help the math work out. >> i don't believe we should limit ourselves to static scoring. i don't know a number for an outer limit i believe we should have the largest number we can get with adequate and with accurate dynamic scoring. >> reporter: the numbers the senator's talking about appear to be bigger than those that house lawmakers had been discussing remember also that the house budget plan would also require that any tax cuts do not add to the deficit so there would likely need to be some sort of compromise there meanwhile, senator chuck grassley, another member of the senate budget committee, told me this morning that he is still waiting for details from the administration on exactly what their tax reform plan looks like >> we're still in the process of negotiating this and we probably

will not even make a decision until the white house ways & means and the senate finance committee get what you call a framework from them. i think we need that because we're going to have to operate within what can be signed by the president. >> reporter: now, it's possible that the budget committee could release its parameters for tax reform as soon as next week, but this is all still a work in progress, guys >> okay. now we got it. thanks, ylan. >> thank you, ylan mui on capitol hill plus the other big story there, a new attempt to repeal and replace obamacare may be gaining steam in the senate as well kayla tausche has that part of the story for us now. >> reporter: bill, we heard this story before this time the graham cassidy bill, what it would do, repeal the obamacare infrastructure but leave the taxes if place and funnel that tax revenue toward states in the form of block grants so the replace part of the equation would happen on a individualized basis at the state level.

it's one high-level endorsement so far vice president mike pence told reporters the white house is all in on the plan after announcing its support last week and senate majority leader mitch mcconnell called it, quote, better than the status quo by far. senator lindsey graham, sponsor of the bill, said house speaker paul ryan told him he likes it and the house likes it, too. graham seemed optimistic about the prospects in the senate. >> we're going to get 50 republican votes and i make a prediction, there are going to be a lot of democrats struggling with a no vote because at least eight of them, eight of them, their states do far better than obamacare in terms of funding, and they have more control over the money and that's going to be a hard no. >> reporter: even so, graham's co-sponsor, senator bill cassidy, told ylan mui the prospects were, quote, good but not definite two republicans have already come out against it, that's all the party can afford to lose the two others who voted no on the previous bill in july,

alaska's lisa murkowski, arizona's john mccain, have so far been bum governors will play a large role here, arizona's governor supports graham cassidy. the white house is pressuring alaska's a handful of others want a bipartisan solution. the senate health committee is working on one but as of now, that only looks to be a narrow fix to stabilize the insurance market and only through 2018 bill >> and just, kayla, to be clear, we had a graphic that said no to graham cassidy, showed murkowski and mccain so far they haven't said one way or other, are recollect? we're on the watch for them being a no, right? >> reporter: correct two of the four no votes that were on the record back in july for that final vote that ended up sinking the previous senate iteration of health care reform. we should note that laska's governor did sign on to that letter calling for a bipartisan solution and going against graham cassidy that's one of the reasons why the white house is doing outreach specifically for this bill and specifically with governors that have sway

>> all right see what happens thanks, kayla. see you later. to the markets now here we go again records again now for the dow and s&p. joining the "closing bell" exchange, keith bliss, he's at post 9 our buddy, jack, from ucx is in chicago. how is this for symmetry i had our research team look this up. if we close here, it's the 41st record close for the dow this year the vix dipped below ten today that for the 41st time this year is that crazy? >> that's good >> what do you think of that >> it's not only crazy, it truly is indicative of how the market has behaved and acted this year and it's really the back part of that coincidence that's most important to me. you look at the lack of volatility, lack of real worry in the market, that's been the true story of 2017 thus far. in nakfact, i'll go one further,

you heard me say this before, is the worst month for equities going back several decades not only up in september but setting new highs on the dow and the s&p and nasdaq and the like. that is highly unusual and i went and looked back at the last ten years about that phenomenon in september what i found is that in the last ten years, the market's been up more than it's been down in september and i think a lot of that has to do with what we've been experiencing in that time period which is really easy monetary policy, the market is set up for corporations to heal and have good earnings the economy is recovering globally albeit not at the speed we're accustom to. people are having mar money in their pockets. the consumer is coming back and strong and, therefore, you get these types of markets 41 days up -- 41 new highs on the dow, 41 new lows on the vix or below ten on the vix. has what withdrew hayou have ri >> jack, i was going to ask how much the developments in washington especially on, tax and budget planning may be contributing to the rally we're seeing today or what you think is going on. >> i don't think it's a quince

den. i think there's a lot to be said for that graham cassidy is a real solution remember, you know, it does away with the direct subsidies to the insurance companies. this was a big problem even when mitch mcconnell was drafting that legislation, he was doing it with those insurance companies. so if you get that out of the equation, and guess what, john mccain is going to vote for this his governor wants this. the state of arizona needs this. they're going to vote for this so, you know, this is a real workable solution. so if we get that out of the way, that is one big distraction that is now going to be out of the way and this congress can start to really focus on repatriation, on tax reform, on the things that are going to create jobs and really grow this economy. >> meantime, as we mentioned, the fed meeting started today. tomorrow we have the news conference with fed chair janet yellen kooet kooe keith, i'm just curious. this won't be known until it actually happens i wonder what her demeanor will be like since the last meeting, all the talk has been about whether or not she'll be

reappointed by president trump i wond whaer she'll be willing to say and not say during tomorrow's news conference you know >> i think what we've seen over the last few years from chairwoman yellen is outside of the very first news conference she had, she's been a pretty good poker player. when she sits in the pressers at the fed announcement, when she testifies in front of congress i think she'll play close to the vest i think she will make, though, she'll make statements that talks about the fmoc and broader federal reserve is comfortable with the growth of the economy if you listened to the fed speak over the last few months, they telegraph we're going to get a rate hike in december. the market has started to agree with that. fed fund futures finally priced that in for the december meeting. i think she's going to tell us they're happy with the pace of the economy. they're still a little bit worried about where inflation is going to be and the able for companiy iey ies to manage thei pricing power. wages are starting to come back a little bit we're at full employment rates are very good for growth i think it's going to be a no

rate increase tomorrow, but i think it's going to be a very positive message from chairwoman yellen at the presser. >> jack, real quickly before we go, noticing how poorly best buy is doing in the session today, and toys "r" us' bankruptcy, is that a sector the market rushes to judgment on, leaves behind and still can go full steam ahead making new highs and perhaps the economy can follow suit >> you know what, it's a real tough call, especially on these retailers. you know, amazon is changing the world. they are becoming mob bell of our time between aws, between the retail side, everything else they're doing and now of course getting into the food industry so, look, you know for a company like that to vecheventually cath the eyes of our regulators unfortunately and have something happen you know, the best buys of the world, jcpenneys of the world, kohl's and macy's of the world are victims of amazonvation as i like to call it. >> kohl's striking a frenemy

deal, more on that later anyway, gentlemen, thank you very much. >> my pleasure. >> for joining us today. we want to get more on this earthquake, struck in mexico in the last hour. sue herera stepping in with more details. >> reporter: indeed, bill, here's what we have. it was a 7.1 magnitude quake it hit about 76 miles south of mexico city. right now, we do have reports of smoke coming from buildings. we have reports of buildings having collapsed we have the airport in mexico suspending its operations after the quake. we also have the mexican stock exchange, the blsa, has suspended trading for the day. we don't have any reports of injuries at this point, but it was an extremely strong quake, of course. mexico's president is on the road he is heading back now to mexico city as you look at these images that have been taken on either social media or from telemundo which is our sister station of course. this quake comes on the

anniversary of the 1985 quake which was a magnitude 8.1. that quake killed almost 10,000 people ironically, this morning in mexico city, a number of building managers ran preparedness drills on the anniversary of that quake. here we have the 7.1 magnitude quake just south of mexico city. we do have reports of damage to buildings. we have smoke coming from buildings that we've seen in vid video, but no reports of injuries at this point but we're going to continue to monitor the situation. in terms of market reaction, as we told you, they have suspended trading. we did see the peso sell off a little bit against the u.s. dollar but not all that much we're taking a look at some of the market reaction to the earthquake we often get market reactions to natural disasters. not too much movement in the currency market. obvious hi they suspended

trading on the stock market. in the 3:30 news update, i'll have the latest for you and hopefully new video as it comes into our newsroom. bill, kelly, back to you. >> sue, thank you very much. >> scary stuff. toys "r" us has declared bankruptcy as anticipated ahead of the all-important holiday shopping season. when we come back, we'll look at the potential impact that could have on toy makers like hasbro and mattel as well as other retailers. i count on my dell small business advisor

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quick check on some of today's market movers. tesla shares under pressure after jeffries initiated coverage of the electric car maker with an underperform rating and $280 price target

the stock trading at 375 right now, implies a roughly 25% decline from current levels on concerns that it may take tesla longer than expected to become profitable and auto zone is one of the worst performing stocks in the z sp today after reporting disappointing same-store sales last quarter morgan stanley reporting 30% of the auto parts retail industry could vulnerable to competition from, guess where, amazon, kelly. let's continue the theme toys "r" us filing for chapter 11 bankruptcy protection kate rogers has more for us from, i believe, there she is in front of a toys "r" us kate >> reporter: hey there, kelly, that's right toys a s "r" us is the latest retailer to show signs of struggle l in an increasingly online world filing for chapter 11 bankruptcy late last night. a company spokesperson insisted to cnbc this is a balance sheet issue, not an issue with toys "r" us and overall business as they seek to restructure $5

billion in debt. joe overall, toys "r" us has 65,000 employees and they said they have no plans for store closures or layoffs during this bankruptcy restructuring in fact, fay plthey man to add 0 workers for the holiday rush according to the holiday spokespers spokesperson take you through important numbers in the company's history, back in 2005, they were acquired by bean, kkr realty trust trust, made a plan for an ipo, then they scrapped the plans in 2013 shows signing of struggle in 2015, two years ago they closed their iconic flagship times square retail store. the company told us loyalty and rewards programs and give cards will continue to be operational and be valid throughout this resfrr restructu restructure. ing. we ran into customers who were a bit concerned and rushed here to use them. >> someone posted the rulemor tt was going on, they were closing, grow have gift cards to spend them by the end of the week

because they weren't going to be good anymore >> reporter: now a big issue for all of these big box stores, you guys were just talking about it in the block before, of course, amazon, their toy sales grew by 24% last year. overall toy industry, their sales were up 5%, according to oneclick retail, an analytics and research firm, guys. back over to you. >> all right, kats, thanks very much how does the toys "r" us news change the toy business? >> let's bring in linda from da davidson linda, thank you for joining us. >> hi. >> this has been a tough sector, we understand that what's the significance of this bankruptcy, though are there some potential competitive winners and it's clear that hasbro, mattel, even to some extent, simon property group is being punished as a result of this >> sure. well, i think there's two key things to note about this, and first of all, i mean, the omni channel nature of retail now and the rise of e-commerce is one

issue and toys is the category that's one of the highest categories that's sold through e-commerce in the united states. that's about 25% of toy industry sales are through e-commerce the second issue fortoys "r" us, toys "r" us is essentially a single product retailer. essentially they sell toys that makes it pretty much impossible for them to significantly price cut if they want to use price toys as a loss leader during the holidays walmart can do that and it won't hurt their overall resultses toys "r" us can't do that, hard for toys "r" us to compete against a walmart or amazon in the toy category stl th. >> that answered my questions. now what happens to them what do you think happens to toys "r" us? >> well, i think the company has said, and my understanding is that there won't be toy closures during this holiday season they're going to operate as much as usual, as much as they can, with their stores open and with

toy suppliers supplying product. i do think in the very, very long term for the reasons i stated, they will continue to struggle they've done some interesting strategic things to stay alive. >> yeah. >> they do have declining negative same-store sales trends, as many retailers do today. >> it will be a challenge. linda, thank you, for now, as we follow this story along. linda bolton weiser. 33 minutes left in the trading session. the dow up 40 points s&p up almost three. chipotle is rolling out highly anticipate ed queso nationwide some diehard fans were giving it a thumbs down. ts moving the stock -- >> we're going to try it we're going to try some coming back i want to see what this is all about.

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welcome back it's time for a cnbc news update let's get back to sue herera. >> kelly, bill, thank wyou very much we begin with the developing story out of mexico city where a powerful earthquake has shaken that city causing buildings to sway it has damaged multiple other buildings. the u.s. geological survey says it was a 7.1 magnitude quake thousands of people streamed out of the buildings onto the streets in panic, but unfortunately right now, we're hearing that others remain

trapped inside of buildings across the city. at least one building has partially collapsed. others are reportedly on fire across the city. the mexican bolsa has haulted trading for the day. the airport is closed and the country's president is on his way back to mexico president trump offering praise for the united nations following years of tough criticism. during a luncheon hosted by u.n. secretary general, he called the organization the best forum for nations to discuss their problems >> we're working very hard to solve world problems, but there is no better forum, there can be no better forum, and certainly there can be no better location where everybody comes together so i want to congratulate you. walmart has unveiled a pilot program that allows food stamp recipients to use its online grocery shopping platform. at five locations, the retailer let shoppers order they items through the platform then pay in person when they pick up their

purchases. at this point, amazon does not allow food stamp purchases online walmart is trying to get a bit of a leg up on its competition that is the news update this hour bill, kelly, we're watching mexico city. we'll bring you developments as they warrant back to you guys. >> yeah, please. >> very good thank you, sue. all right. now, queso has been available at chipotle mexican grill for only one week customers already talking about it big-time on social media and they are not impressed many have gone to twitter to express their disappointment about this melted cheese dip some calling it gritty, some call it chalky company's defended its queso tweeting back at disapointed customers with this tweet, our queso is made with only real ingredients which makes it different. we like that difference but it is different." chipotle recently ditched

chiriso. the protein accounted for just about 3% of sales. now, we don't mean this as a goof, i'm curious, i'm definitely curious to see what this stuff tastes like we had somebody run out and get some queso. >> you have a palate >> so do you. >> i don't know if i like queso in general. >> you don't like melted cheese? >> i'm going to try it it is here and it's warm. >> it is kind of warm. >> you have to go first. >> i'll go first. >> i like they implied all the other queso is made with rubber or whatever make tss it have tht texture. >> pretty good. >> not bad what's wrong with it >> it's no that strong no, i kind of like that. it's a little spicy. >> what's everybody worried about? >> i don't know. >> this is actually pretty good. >> maybe they're used to having it in their local mexican restaurant. >> our staff back at headquarters are watching me eat chipotle

that's news right there. >> i mean, i think that's pretty good i didn't even think i liked queso. >> yeah, i was set not to like it because of all of that. it's okay. not bad. there we are. >> the shares were down, like, 3% yesterday in part they thought maybe on this news. the company said it actually tested, got the same kind of reaction in early markets and still thought its sales were doing well enough. perhaps that was just a tempest in a teapot. up 1% today. let's send it over to seema mody, shall we she has a market flash. >> i like the queso, for what it's worth. a report from reuters says the trump administration is preparing to ease rules for overseas sales of guns so basically making it easier for gun makers here in the united states to sell their products abroad. this is said to include assault rifles as well in response we're looking at a lot of -- some of the gun makers' shares move higher, american outdoor,

ruger, on the move right now, on the report from reuters that the trump administration is looking to ease rules for gun maker sale outside of the u.s back to you guys. >> holy cow, huge moves. pr . >> reporter: 10.4% move for sturm ruger. >> they have -- >> reporter: interesting to see how politics have impacted the share price of a lot of these gun makers. >> very much so. >> reporter: especially around the election. >> this might be their way of trying to open it up for them. anyway, seema, thank you for now. heading into the close with queso and 25 minutes to go, the dow up 46 points the s&p at 2,507 the russell negative by a point. the nasdaq up seven. president trump was praising the economy and the stock market during his speech today. survey finds employers are getting ready to cut back on pay raises next year those details next. snapchat shares lower today on declining new users in the u.s. what that means for the future of snap, later on "the closing bell."

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as you probably know, today is day one of the fed's meeting. our steve liesman has spoken to

top economists and market strategists as part of our cnbc fed survey steve joins us now with what the findings say about president trump's approval rating especially as it pertains to how he's handling the economy, steve. >> reporter: interesting changes. thanks so much the cnbc fed survey, we've been following this, it's important what the market thinks is going to happen on the fiscal side the approval rating for president trump bumping up a little bit, reversing a downward trend from 29% approval to 39% the disapproval rating about the same the don't knows coming down. so still under water as pollsters would say, but getting better and certainly better and abovewater when it comes to approval on the economy as bill was showing here 63 63% approving of his handling of the economy up from h 43%. down a bit on the disapproval there. 36% to 29% this group thinks he's doing the right idea, has the right idea when it comes to the economy but the timeline doesn't look so good if you're waiting for those

fiscal things to happen. take a look. health care now second quarter 2018, financial regulatory reform, third quarter of 18s is. look at these nevers so those nevers for some of these things have gone up compared to previous surveys 39% say health care reform will never happen small on tax cuts. that's the one bright spot here. first quarter of 2018, now with just 2% saying never and also infrastructure just 10%. they thing they'll get those two items done there and how about how optimistic the stock market is on the plans of the administration here? they had thought the market was way optimistic 62% thought so back in may that's come down now it's about an even split 44% saying the stock market is too optimistic about planning -- on the plans of the administration, and 41% say that the expectations are realistic all of this, guys, is available on dotcom if you'd like to read about the survey, bill. >> great stuff and if you look at the numbers,

the fight for users between snapchat and instagram, seems like a snapchat win right now. but not everything is what it seems. we're gong to explain that, yes. thank you, steve liesman i thought that was part of the liesman story. but anyway. president trump at the united nations today giving his sternest warning yet tnoh o rt korea. ahead, international reaction to those comments stay with us

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shares of michael kors trading higher today almost up 4% after an upgrade by oppenheimer to outperform. the firm says it improved product is resonating at full price. pricing power at michael kors. oppenheimer raised its price target to 55 their previous price target was $44. exceeded that. >> up nearly 4% today. meantime, shares of snap are falling despite new reports the company is signing up more new users than instagram is. snap down 1.5% julia boorstin has more. >> reporter: kelly, that's kbth good news for snapchat it's not that simple snapchat's share of new enrollments in the u.s. is on the decline. instagram's is on the rise

take a look at this jump-start chart here new enrollment, 70% at the end of last year is now about 52%. if the triend continues, instagram's numbers will surpass snap's in the next few months. instagram surpassed snap in terms of new signups in may. one caveat, jump shot tracks clicks on confirmation e-mails, doesn't include text confirmations are snapchat may have more strength snap shares down 1.5% today. down earlier facebook shares are up over 1% also today, an article in the "information" reported advertisers are critiquing snap's ad products as looking stale. snap shares are down about 14% since the company's march ipo. on growing concerns about competition from facebook's instagram, in particular, and questions about snap's ability to continue to scale now, last week, snap chat

unveiled a new augmented reality bitmojis no word yet on how much they'll help grow user engagement or how they'll impact ad dollars. guys, back over to you. >> that will be another thing for us to try at some point. julia, thank you very much. >> no doubt. >> julia boorstin. dow up 45 points today verizon the best performer there on flare-up as david faber was talking about earlier in deal talk between t-mobile and sprint the s&p up 2 1/2 the russell down a point and a half. fedex one of the companies reporting earnings after the bell up next, we'll debate if you should buy the stock. tomorrow, a live and exclusive interview with pershing square's bill ackman. always informeative and entertaining he'll be talking about theadp f first time noon eastern time tomorrow on the halftime report. (baby crying)

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live-streat the airport.e sport binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv on every screen is awesome. the xfinity stream app. all your tv at home. the most on demand your entire dvr. top networks. and live sports on the go. included with xfinity tv. xfinity, the future of awesome. boy, moments ago art cashin stopped by to tell us that the market on close orders show an imbalance, a big one $1.3 billion to the sell side. we've seen the market come off its highs, that's for sure >> but he said it could push us to a minus 20 on the dow, 60 points lower than where we are.

>> we'll see. >> we'll have to see. >> that, of course, depends how much demand there is at the close there of undeclared orders we'll see. how it works out but right now, the imbalance is big to the sell side fedex reports its earnings after the bell tonight just yesterday, the company announced it's going to raise its shipping rates starting january 1st. >> yeah, it's up 16% this year the stock is is it a buy or a sell for investors? joining us for today's bull/bear debate, donald from grautin capital and donald deed. >> thanks for having us. >> donald, let's start with the bull case for fedex, it's had a pretty good year what do you think it could help it do even better? >> well, it's really simple. fedex is one of the world's largest facilitators of e-commerce, continue to see e-commerce growth in the retail. continue to explode. but in the internet of thing, the b to b market is just getting started so we look at fedex and say, look, it's one of

the most consistently surefire ways to play the ongoing growth. i'd have to pick who's going to win. i just have to pick fedex to facilitate to get it delivered one. two, highest margin, highest incremental return on invested capital business the company does is flying up prioria priorx cross across the pacific semiconductors up 20%. that makes us confident about what's happening in the underlying business. >> david, kelly mentioned how well the stock has done this year and that's taken it out of your price range that's one of the reasons you don't like it, yes >> splut . >> absolutely it's doing well this year. up 37% in the last 12 months i cannot risk my clients' nest egg money on a stock that yields under 1% fedex is great in e-commerce the problem is the largest player in e-commerce, amazon, has their sights firmly on fedex, in my view. they were disgusted, quite

frankly, with the snafus last holiday season they vowed to vertically integrate the business, bought all sorts of equipment given their recent purchase of whole foods, they're serious about vertically integrating remember, amazon is ten times the size of fedex. amazon can basically call the shots. now admit fedex is a great international carrier. if you're as skeptical as i am about mr. trump and north korea getting along, fedex is the last stock you'd want to own in this period. >> well, if that's the case, there's a lot of stocks you wouldn't want to own donald, what about his point about amazon >> the service snafus, kelly, were a u.p.s. event, not a fedex event. that's irrelevant, quite frankly. one. and two, while the total revenue number for amazon is materially larger than fedex, fedex in what it does is the dominant player in that part of the business amazon's budget for shipping is around -- compared to the overall amount of revenue that fedex generates.

so it's a little comparing apples and oranges, quite frankly. also, they've done the largest acquisition in the history, the tnt acquisition. right now the european pmi is over 57. we're seeing european air freight numbers that are, you know, growing at 6% to 8%. when you're integrating the largest acquisition in our history and doing it in that environment, there's at chance for upside you know, you're fighting an ongoing upside trend it's what, you know, albert einstein said years ago, those who understand the power of compound interest can get paid by it. those who ignore it have to may it the compound interest is the compounding of the ongoing growth of what's happening in e-commerce and the people who deliver are a fedex. >> david, let me add one other thing here we've been talking about the price increase, they're going to implement at the beginning of the year they have pricing power. even amid all the competition that's out there right now >> well, i'm surprised they do it january 1st i would think if they're really serious about making some money

they'd start on thanks thanksgig that's the key period. i'm glad the other gentleman brought up tnt we're going to learn more about what happened in that very material cyber attack in june. the company has not said much about exactly what happened but we've seen from equifax that investors, indeed, consumers, take that very seriously so we got to watch that quite carefully and that's not a great way to start integration of a new purchase >> donald, what do you say, real quickly, we got to go here, but about the rate hix the company's introducing? >> this is the time of year they always propose rate hikes. the fact they're looking at 4.8%, almost 5% rate hikes, you guys are exactly right it shows they have pricing power. sew me somebody else that's hiking price on a year in/year out basis by 5% more more, what is a low inflation, no inflation market. >> yeah. >> it shows the value of their services >> show you the biotech companies. thank you, both, for joining us today. >> thanks, guys. all right. we got six minutes left.

the dow still up 41 points the closing countdown coming your way in a moment. after the bell we have earnings we're going to get results from fedex as we just discussed adobe and bed bath & beyond. 'lebk.ath making a comac wel bring you the numbers as soon as they come out. stay with us

♪ ♪ (bell rings) ♪ (screeching tires) (bell rings) about 2 1/2 minutes left in

the trading session with the dow up 38 points have seen the market come back a bit with the huge market on close, imbalance to the sell side. >> got to rope them up. >> how is this for a quirky bit of math? i had our team check, with the close today if we're positive on the dow, it will be the 41st time this year that we've had an all-time high close for the dow jones industrial average okay you ready for this so there's the trading of the dow today. we're going to finish positive, i can imagine. it's the 41st all-time high at close this year. the vix, earlier today, dipped below ten. it's back above it now for a time, it was at 9 and change and today marked the 41st time this year that the vix has dipped below ten how crazy is that? bob pisani, that's crazy one more thing, the ten year, the yield, continues to just creep ever higher. we get ready for the fed, day two of the fed meetings tomorrow and we will have janet yellen's news conference beginning around

2:30 eastern time. >> remember the famous comment, reducing the balance sheet is going to be like watching paint dry. we'll see. what they want is nothing to happen to the markets. this will be one of the great feats of all-time if they can pull this off without market volatility talking about reducing the $4.5 trillion balance sheet the market is driving everyone crazy. the s&p moving in a four point daily range six days in a row. to give you an idea, normally 15 points would be typical a year ago for the s&p to move from the high to low. 125 to 150 points on the dow forget about it. it's all been flat lined but bull markets generally don't end with whimpers like this, they end with exuberance the bulls are still out there. want to point out, semiconductors, more new highs in micron, microchip technologies that's another group that's up aerospace, again, new highs. mr. trump, president trump, comments he would destroy north korea, some of those aerospace stocks at new highs. those are the major moves today,

bill. >> get ready earnings coming up as well fedex, adobe and bed bath & beyond a good cross section of companies reporting in a moment here thanks, bob. >> okay. >> records again 41st time this year for the dow. stay tuned for those earnings and lot more coming up on the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kell thank you, bill. welcome to "the closing bell," everybody, i'm kelly evans here's what we're finishing up the day on wall street the dow going out with a gain of 41 points. looking to see if we'd get big declines on the bells and big sell orders. nevertheless, hang in there at the end, up to 22,372. the broad market s&p 500 adding nearly three points today, 25,003 the nasdaq setting a new record

at 6,461 and that laggard russell 2000 dipped a little lower today just about a point or so, 1,440 for the small caps checking on the dollar, down about a quarter point, sometimes the dollar and russell have been going hand in hand we have earnings ramping up after the bell we will get results from adobe, bed bath, and fedex. we'll bring you all those numbers as soon as they're out and joining me on the panel today is cnbc's senior markets commentator michael santoli, next to him is danni hughes, ce o of divine asset management michael, this market has a lot of different things going on i know on surface it looks kind of calm. some pretty big moves out of washington and it's interesting no one's necessarily tieing that all together. >> right. >> but, you know, is it significant that maybe something is going to happen on the tax and budget front >> not such a narrative around it, although, look at the health insurer stocks down today. united health a drag on the dow.

don't know if that's pricing in at least a prospect of the vote on the aca repeal next week or people pulling in their bets, money off the teenagable you said inching, what the market has been doing, inching on the index level higher. the way i'm looking at it big picture, the bulls retain the benefit of the doubt the way that they're acting, without a lot of momentum, lot of force behind these moves, it's keeping a little bit of that doubt out there as we get into the fed meeting. >> one of your favorite sectors, metler had an all-time high today. >> health care instruments, lab equipment, boring, boring stuff. they hit highs every year, every day. >> not too spooked about the news by the graham cassidy bill. >> part of the bold case, it's completely insulated from that they're kind of -- they're selling the blades for the razor blade guys. >> another says they give it a 10% chance i feel people are so dismissive of it it actually could happen

what would the significance be if this thing does pass? >> i think it's baked into the market a lot of people, kelly, like you, feel like it almost has to happen it's not been off the table yet. i think it will be significant for the market, think it will be significant for the administration if this happens i think it's a great big pat on the back for them moving forward. but we'll see. a lot of other stuff just hasn't happened so, you know, on the political front, some things really have moved our stocks forward like the defense sector has been a big beneficiary of what's happening in washington. everything from china, russia, to rocket man, you know, and really that's benefit add lot of the defense plays, lockheed, northrop, boeing, raytheon you know, boeing, for example, up 63% year to date. >> i mean,which is just insane the fact a company as big as boeing would have a move like that in the span of nine months. >> it is, it is. >> that, you're right, speaks to this environment joe, i was going to ask you sort of relatedly, what you make of the president's speech at the u.n. earlier today >> i thought it was actually a

very measured and presidential speech and i think the markets are reflecting the fact that his chief of staff has made him more presidential we don't have as many big distractions the russia story, while some channels carry it a lot, has gone to the back burner. more importantly what i've seen in the last month, i was very concerned a month ago seeing interest rates go down, seeing small caps go down we're now seeing the opposite happen in the last month so, very interesting, done very quietly. the russell is back up to new highs with a very nice move in the last month even as interest rates have bee going up. >> we're going to know the president is on to something if you're bullish on the u.s. i feel you've been all europe and all emerging markets, right? >> and it's worked incredibly well and we still love that because, again, the dollar's not going to get strong any time soon but i do look now and i'm actually now starting to wonder if we're at the point of a meltup if anything happens with taxes, if there is a positive surprise,

i think so little of that has been priced in, that you might see the final scary blowup that will be great for investors unless they hold on too long so i just think -- i'm seeing some things here that are making me feel quite optimistic and even though there should be volatility, it might not happen until year end, and, again, i'm surprised at myself, frankly >> i was just going to ask if you think on the one hand, you know, if the, you know, the trump administration is giving -- is the fed taking away we're going to hear from yellen tomorrow apparently everyone is looking for a firm timeline for shrinking the balance sheet. >> we probably will get something like that. the way, my perception of investors, how they're thinking about this reduction in balance sheet is they're not really worried about it they're not worried about the pace of it, not worried about necessarily the market knock-on effects. they're a little worried that nobody else is worried about it. there's got to be some kind of an unintended consequence here i think what could happen is janet yellen's tone in the press conference, not just about the

balance sheet but about whether, in fact, they're eager to do rate increases at a pretty decent clip alongside of that, so maybe that's going to be the excuse, especially if she takes note of financial conditions being so easy. >> yeah. >> that's code for markets are too happy. we want to do something about that or at least we're not going to resist the urge to do something. >> we're not getting a ton of clarity on third quarter gdp numbers. back at sort of the twos range now we have the hurricanes, another on its way devastating events they're going to throw everything out of whack. >> we're not getting to where we really need to be to see that growth they're talking aboutby need to see more productivity growth gdp has been lacking everything has not been where we need to be you know, the fed owns 29% of mortgage-backed bonds issued by the u.s. government. they own 17% of the treasury market you know, yes, are they going to wind this down, and, oh, no, don't worry, nothing's going to happen here, there will be no issues. >> let me mention real quickly the biggest mover in the dow today was verizon. david faber earlier reported talks between sprint and

t-mobile are under way michael, there was a report out about how we timely have competition in the wireless industry the worst performing sector this year, the pricing power and the moves they've made to try to win consumers with unlimited plans, you know, offering free hbo if you're at&t. will this one actually move now? what does that mean. >> i mean, obviously investors think there's at least a decent prospect it happens. every stock in the group is up at&t, verizon, t-mobile and sprint i think there's maybe a growing sense that, in fact, it's not a three or four-player market. if they can persuade the antitrust authorities that, no -- >> comcast. >> -- cable's involved, everybody else, it's a free for all. perhaps that's going to be the way. it is. i made the analogy to the '90s long distance ceased to be a product of its own after a wh e while. >> i just know mci/worldcom. adobe's numbers are out.

let's get to sieema. >> reporter: 110 adjusted versus the analyst estimate a 9 cent beat on its bottom line revenue $1.84 billion. that, too, higher than what analysts were expecting. the stock here is trading down by around 1% in extended trai ee we'll get you more details as they come out. for now the stock is down 1% kelly? >> seema, thank you. such a stalwart here. >> that's huge growth, with adobe, that's over 35% year oef year revenue growth. that's pretty tremendous again, it's a cloud story that we've been talking about, how big can that market again, how fast that's growing and adobe is showing that here. >> it's a 30% grower with a 30 p/e, so that's kind of what you get right here you have some noise after you report even a good number. >> joe, what would you say >> i think that what you're seeing is that everyone's willing to pay a premium for growth there is no alternative. you know, we use the term,

t.i.n.a., around our company the reality is if you want growth, you have to pay for it as long as interest races stay where they are, we'll inch up slowly equities are going to continue to do reasonably well. we should just be ready for some volatility at some point although it doesn't appear to be coming any time soon >> no. as michael would put it, these are the companies, big platform companies of the future really. >> right. >> and the flip side of the market, if you look at a best buy today, it was down, like, 8% on the close had their first investor day in five years and also right in your wheelhouse, you see under armou are armour, wells fargo downgrade -- >> we've been seeing -- >> lulu, finish line you have kohl's partnering with amazon. >> broader take, why you love the magical platform companies like adobe, like mastercard. the market hates a business where a consumer actually has to make a decision to spend money they really do whether it's media, whether it's retail, whether it's consumer brands, or packaged foods.

that stuff doesn't work. the economy is not conducive to prodding the consumer to do that they like this business-to-business passive network, just print money. >> you're right. this is -- was making a point about this the other day to its subscrib subscrib subscribers, you almost want these companies that benefit without having to do anything like a google. people flock to that platform. >> taking it to the retail side like a t.j.maxx, same idea where they're the beneficiary of everybody else's missteps. and they provide a benefit to all of us who really want something great for our money. a value for our money. >> joe, does that mean finally that these -- >> i would just encourage you to think of these platforms like modern day -- they are part of every transaction that's happening. if that's true like amazon, you're going to be very successful simply because everyone's still trying to grab market and they all have to transact on these platforms. >> yeah, modern day toll roads i'm trying to think how can

everyone, you know -- that's a tough thing, there's a reason why we have basically half a dozen big names who are getting this right >> no, there's no doubt about it of course, the big question is, there is a price too high to pay for even a wonderful business. and so the market is going to keep testing, you know, what that number is and maybe push that limit >> all right everybody, thank you very much for swrojoining us danni, joe, appreciate it very much kick things off this hour. they did it again, pushturnu equifax's giant hack last week wasn't the company's only one. as it faces backlash, its government contracts may keep the company in good stead. we have more on that next. president trump launching what they be his toughest talk against north korea yet today and other, quote, rogue regimes. ahead, reaction from a former top nato official. we want to hear from you, contact the show via twitter, contact the show via twitter, facebook, or send us an e-mail except for one of us. closingbell@nbcuni.com you're watching cnbc, first in

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welcome back with some breaking news on a huge earthquake that just happened in mexico sue herera brings us the latest. sue? >> thank you very much, kelly. yes, it was a 7.1 magnitude earthquake that hit just south of mexico city and we're beginning to get some

numbers on fatalities. local media is saying that five people have been killed by this quake. we are not sure whether that is in mexico city or to the south where the quake actually had its epicenter. because the mayor of mexico city is saying he does not know of fatalities in the city, but there could be fatalities outside of the city. we have numerous reports of buildings collapsing we have other reports of buildings being on fire. and people trapped in those buildings. what is certain, as you look at this footage, is that there is extensive damage to mexico city. this quake coming on the anniversary of the massive 8.1 earthquake that hit mexico city in 1985. that quake killed just under 10,000 people. they had preparedness drills this morning in remembrance, if you will, of this quake in 1985 and unfortunately, they had to put that preparedness into

effect today thousands of people have been noted on the streets of mexico city because some of those buildings are not safe we have seen fa saucades fallinf of the buildings basically we're waiting for more news on whether there are injuries or casualties as i said, we have report of five we don't know if that's in the mexico city or further south they stopped trading on the mexican stock exchange, the bolsa. they closed the airport. the president is on his way to mexico city. president trump put out a tweet a short while ago saying "god bless the people of mexico city, we are with you and well be there for you. we will keep you posted, kelly it is a still developing story we're monitoring telemundo and all the other media that is in that particular area and we will bring you the details as they become available to us. back to you. >> all right, sue, thank you very much. sue herera more bad news for equifax

today. turns out last week's massive breach was not its only one discovered this year let's get over to aditi roy joining us from san francisco with the latest. aditi? >> reporter: hi, kelly the company acknowledged a second hack after a report about it, but while the original report says that hack and the current one involved the same intruders, equifax says that is not true the company says the earlier breach was discovered in march and involve ed an equifax subsidiary they claimed the incident happened in the 2016 tax season and was reported to have affected customers and regulators in that investigation, the company used the same cyber security firm that's investigating the current breach part of the disclosure involved a letter the equifax subsidiary wrote to the new hampshire attorney general's office. in the letter the company says the cyber thieves were able to change the personal identification numbers of the employees affected by the hack cyber security blogger reported

on this breach at the time and wrote the hackers were able to use the information to steal w2 dat data it's unclear how many people were affected in the breach. meantime, massachusetts has become the first state to file a lawsuit against equifax. that suit claims, "equifax could have and should have prevented the data breach had it implemented and maintained reasonable standards." cnbc reached out to equifax about the suit but the company declined to comment on it. kelly? >> all right, aditi, thank you, aditi roy. let's go to andrew jeffrey, managing director at suntrust robinson humphrey for what the developments mean for equifax. thank you for joining us >> thanks for having me. >> i understand you have a buy rating on the stock. you got it now a $110 price target. reduce that from $15537 w why is the company still a buy >> i'm convinced there won't be adverse repercussions to the

core business. clearly the headlines are very difficult. we think there will be pressure in the company's direct-to-consumer business, as we wrote about last week we also think there's probably going to be some share loss, but all told, its products and its solutions are so integral to the u.s. consumer credit ecosystem, we think the pane's core business and earnings power survives this intact >> did you go through an exercise, andrew, of trying to handicap the size of a potential liability? i know you did stress test your forward earnings estimates for things like the loss of that consumer subscription business and seems it came out around $5 a share in earnings for next year which still does leave the stock close to 20 times next year's earnings. >> yeah. it's something we've thought about. i don't think we're in a good position to quantify that. what i will point out to investors, unless the damages, financial damages exceed $1 billion and even meaningfully more than that, we are talking about as a situation where the company may have to issue debt to pay some of those fines

that remains to be seen. given its cash flow, given its balance she, wroyou'd have to s truly calamitous damages for that to affect our investment thesis our view would be downside is like a market multiple on the $5 number which would be somewhere in the mid to high 80s and upside if we're right is toward our price target we like the risk/reward. >> andrew, i wonder, a lot of thymes we ta times we talk about a company like chipotle, whole foods, a high profile that involves a deeper malaise details about equifax, you're surprised at how amateurish they're handling operations for what's said to be a security company. for example, one instance where one of their international passwords for a certain, you know, security portal was, you know, user name was admin, password was admin this stuff isn't rocket science, right? doesn't that sort of -- all that you've heard not undermine your confidence in this company >> it doesn't structurally undermine my confidence in this

company. it's unsettling, but i think the market has expressed its unease with what's transpired here. knowing this management team as i do, i'm pretty confident that they're going to move past this. i suspect that a lot of companies have security lapses that would only come to light in the context of a larger breach. >> yeah, no, look, i suspect that, too, but this company sells security and trustworthiness. it's their core product. you know, it's been more and more -- i just wonder, the "journal" today also reported on how much of their business is actually done with government contracts including the social security administration and cms. is thing go to be a point at which -- look what happened with wells. does the government say, we're not going to do business with you because of the consumer pressure >> there are two observations. one is if you look at the company's 10k, see government customers were about 5% of revenue last year. the other thing i'd point out is that a lot of the data the company provides to governments, especially in the u.s. and cms

in particular, are proprietary there's nowhere else to go to get those data so the government would be hard pressed to use a competitor or find a substitute. that's one of the things that underpins our bullish view, a lot of what the company provides is exceedingly difficult to replicate. >> andrew, thank you for joining us. >> thank you >> andrew jeffrey joining us from suntrust robinson humphrey. fedex out with its earnings. let's get straight over to dominic chu with those results. >> you're going to have to bear with me a couple l seconds we're parsing through a lot of numbers. we have a stock down h 4% in the aftermarket. this after fedex corp reports earnings per share on an adjusted basis of $2.51 per share. on revenues of $15.3 billion now that $15.3 billion revenue figure is just ever so slightly below the consensus analyst estimate of $15.36 billion the earnings per share nouumbers

a little more unclear. the average analyst estimate per thompson reuters was $3.09 the $2.51 that they reported on an adjusted basis accounts for a 2 cents per share impact from hurricane harvey, also a 79 cent per share impact to the downside because of that tnt cyber intrusion issue that we heard last quarter it is unclear whether or not analysts had factored in that tnt cyber attack impact into their estimates, so we cannot really say for certain whether there's a comparability between that $2.51 versus the $3.09. we know there's a slight revenue miss we also do know on their pul full-year forecast in terms of earnings per share, lowered it down to $11.05 full year to your 11.85 on a per-share basis from a previous level of $12 to

$12.80 because of the impact of the tnt cyber intrusion. a lot of numbers to parse through right now. on balance, we have fedex corporation now down by about 3% on 176,000 shares of vol wrum. >> if you look at the number, tiny miss, guidance you can take at face value, sounds like he was saying it was lowered. >> a bit lower. >> shares down 3%. if it's true, the 251 number that dom mentioned is about, you know, 78 cents shy of the street estimate and 77 of that 78 cents could have been harvey and tnt if fedex saw these analyst estimates going into the quarter, which, of course, it does, and thought, oh, they're 77 cents off, they wouldn't c convey that to the analysts? >> depends when it became clear the impact was going to be there. a judgment call on some level for management if the harvey effects were just now being toted up and all the rest o it. the tone of fred smith's quote

in the press relief, significant operational challenges due to those things they're not trying to say overlook these things. >> not sugarcoating it. >> still long term everything's in tact, does tell you why going to try to raise prices at the first of the year because clearly a lot of investments, lot of operational issues come along the way in terms of running full-out the stock has been a good outperformer. >> down 6 bucks aftermarket right now trading around 210. if you can't beat them, join them, what department store kohl's seems to be saying to online rival amston. amazon. president trump is calling north korea's kim jong-un rocket man again today in his u.n. speech warning the communist leader against further aggression up next, see how those comments are playing with our allies. stay tuned ♪ i'm a rocket man

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president trump talking tough at the united nations today. michelle caruso-cabrera was at the u.n. she has the international reaction michelle >> reporter: kelly, president trump's first speech at the united nations general assembly was a fiery one. he repeated his policy of america first, attacked north korea, iran, and venezuela and vowed to keep americans safe by fighting terrorism. >> as president of the united states, i will always put america first. just like you, as the leaders of your countries, will always, and

should always, put your countries first. if it is forced to defend itself for its allies, we will have no choice but to totally destroy north korea. rocket man is on a suicide mission for himself and for his regime the iranian government masks a corrupt dictatorship behind the false guise of a democracy the iran deal was one of the worst and most one-sided transactions the united states has ever entered into. the united states and our allies are working together throughout the middle east to crush the loser terrorists the problem in venezuela is not socialism has been poorly implemented but that socialism has been faithfully implemented. >> reporter: already the countries of iran and venezuela reacting quite negatively to president trump's speech

the leader of iran telling lester holt of nbc news if the u.s. does pull out of the nuclear agreement, it will mean that the u.s. cannot be believed in the future and the foreign minister of venezuela telling reporters at the u.n. that they've held 22 elections while president trump was making money and that they are, indeed, a democracy. kelly, back to you >> all right, michelle, thank you very much. michelle caruso-cabrera. for some more reaction with an international point of view, we're joined on set by chief strategy officer at rasmussen global and former nato director of policy planning thank you for joining us. >> hi, kelly. >> really strong language about iran there generally speaking, how do you think this message is interpreted by -- who do you think it was really aimed at >> well, i think this was the full naked version of the trump foreign policy doctrine. be threatening with your enemies, be transactional with your friends and be unashamed

about putting america first. so i think that's going to work with some of the voters who voted for trump bullet the world outside, my reading is they're looking for who's the leader of the free world they're not seeing that in this president. >> they're not seeing that in this president why not? >> it's transactional, what country you can make what deal he made strong statement about the need for international cooperation. and read president macron's speech, tried to do the counterpoint to president trump's speech in a softer, but still vaguely aware about the need for international cooperation to solve problems like iran, like north korea and like russia. >> when it comes to iran, maybe this is what you mean in part that he wants to be transactional with allies, because he makes it seem adds if this was a terrible u.s./iran deal somehow made by a prior president as opposed to kind of a multinational treaty with iran but does that really change the story? because he's been on record with this for so long that i wonder

if everyone has already kind of gotten used to this being his message. >> well, the problem is he's signaling something that, for example, in france, people see that -- if you're saying base c basically you don't like the kind of deal we made with iran, to stop iran going nuclear, what will stop north korea going nuclear? many participants of the iran nuclear deal are worried this is sending a contradict ary signal. >> i don't know, you're concerned about the nuances with which north korea is going to interpret the president's comments vis-a-vis the iran deal that his predecessor struck in no one can make sense of what the north koreans are after. what do you think their objective is if a message to them was, you chont down this path and risk destruction, risk annihilation, you don't think that leaves an impact >> i think you underestimate how sophisticated the north koreans are in the calculous they know how to escalate. they have the control over the escalation so far. i think what they're trying to do is guarantee the survival of

the north korean regime. they know and they're reading everything that trump is saying, that the best way to guarantee that is to obtain nuclear weapons. this is the core of the problem. >> you're saying if they thought, okay, the u.s./iran deal really resulted in no nuclear weapons by iran, and, you know, everyone kind of playing happy and by the rules that north korea wouldn't be behaving the way that it is? >> no, but i'm saying that the problem is that north koreans are reading what's happen -- what could happen in iran, also what happened with libya where gadhafi actually gave up some his weapons of mass destruction and a few years later basically got bombed by the nato. >> uh-huh. yeah that's going to certainly be on their minds. didn't get to venezuela, fabrice, thanks for joining us today. >> pleasure. time for a cnbc news update. let's get back to sue herera. >> thank you very much, kelly. here's what's happening at this hour we now start in mexico where we have reports of fatalities after

a powerful 7.1 magnitude earthquake hit near mexico city. local media reporting at least five people are dead in and around mexico city, but the governor of the state of morelos which is fairly close to the state that mexico city is in is now reporting 42 are dead in the central mexican state of morelos cork according to the state's governor quake causing buildings to sway, others to catch fire and collapse thousands of people streamed onto the streets in panic but others remain trapped inside rescue workers are trying to get to them. the mexican bolsa halted trading. the airport is close ed and the president is making his way back to mexico city. a third arrest has been made in connection with last week's london subway attack according to met poropolitan police two other suspects were arrested over the weekend isis took credit for the attack that injured 29 commuters. puerto rico bracing for hurricane maria after the category 5 storm left a trail of destruction on the caribbean

islands of dominica and guadeloupe forecasters warning the storm could leave some parts of puerto rico and the u.s. virgin islands uninhabitable for months. and a fire inside the valero refinery in port arthur, texas, forcing nearby residents to shelter in place witnesses report hearing a loud explosion just before the fire ignited. see that billowing black smoke rising from inside no reports of injuries in that incident it is a busy news day, kelly, i'll send it back downtown to you. >> certainly is. sue, thank you very much. >> you got it. >> sue herera. bed bath & beyond out its with earnings report seema mody brings us the numb numbers. >> reporter: draw your attention to shares of bed bath & beyond, now down as much as 19% in ex-tex t ex-ten tended trade on a tough second quarter earnings report let's walk you through it. 75 cents adjusted. does include a 2 cent reduction due to hurricane harvey. the company citing unfave bl impact of restructuring charges

related to the re alignment of the store and management structure. also want to point out that the company is undertaking a number of transformational initiatives to drive operational excellence. these initiatives will be discussed today at 5:00 p.m. hope f hopefully wheal get more details then revenue, coming in at $2.94 billion. analysts looking for $3.01 disappointment, key degreei dec. already a tough year for the retail space bed bath & beyond included down about 30% in 2017. guys >> wow seema, thank you very much michael, they're going to have to bring back the coupons. double them. 40%. i mean, what do you do at this point? >> the stock has been going down steeply from 40 at the beginning of this, from 60 a year and a half ago thought maybe it priced in the bad news this transformation they're

talking about is clearly late, not happening fast enough. >> this is the back to school season. >> right. >> i can remember going to bed bath with huge shopping carts full of dorm duve covers if the guidance isn't better >> right they're at a point right now where there was an idea they had leverage against landlords 1,400 stores the market looks at that, too much retail real estate. the counter trend bull case. doesn't seem like it's taking hold trying for smaller format stores, right up in our neighborhood as a matter of fact. >> really? >> saw it coming in. >> check it out. we tried the queso today, we'll try the bed bath small format. the shares hit hard. now a news alert on ford with our phil la beau. what's happening, phil >> further proof, car sales, not truck sales, car sales slow down, the automakers are not going to wait to cut production.

ford announcing it will be idling five north american plants for anywhere between one and three weeks. two plants are in mexico, three are in the united states what they all have in common, they're stopping or slowing down production of cars not pickups and suvs for ford, that means slowingfie focus, the fusion, mustang, lincoln continental. bottom line is this, guys. ford's north american car sales, production from the car sales from vehicles produced in north america, down 18.9% this year. that's why ford is going to be idling these five plants between one and three weeks. guys, back to you. >> they should go all f-150s phil, thank you very much. i'll keep an eye on ford shares, of course. as hurricane maria heads toward puerto rico, it's redding right for it, we're going to return to houston to get an update on the rebuilding of the real estate market there after rranhaeyig aer this my experience with usaa has been excellent.

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my name is jamir dixon and i'm a locafor pg&e.rk fieldman most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california. houston is just beginning to recover from hurricane irma. diana olick is in the storm-ravaged texas city with richard campo, ceo of camden property trust and has a look at the state of real estate in the hurricane zone diana? >> reporter: yeah, kelly, before

hurricane harvey hit, there were 47,000 vacant apartment units in houston. not so much anymore. as you said, joining us is camden property trust ceo. tell me, what happened in your business in the last three weeks? >> it's been a total transformation on our business you know, as you said, we had a lot of vacant apartments in houston. right now there's a lot fewer vacant we're making, creating homes for a lot of the people who are flooded for sure. >> reporter: you were at a 93% vacancy rate what did that jump to? >> we went from 93% to before the storm to 98% today said another way, lease between january and august 170 net new apartments in camden, and during the last 2 1/2 weeks, we leased 500 apartments. >> reporter: that does wonders for your stock price now. >> the stock price has done well, absolutely. >> reporter: jumped from $88 to $96 in a matter of a couple weeks. >> couple weeks. >> reporter: okay. what did you do for the renters?

a lot of people are asking did you jack up the rent when you got all this new business? >> absolutely not. we're really good neighbors. when you have a crisis like that, you definitely don't do that we froze prices at pre-harvey levels, didn't differentia trkd term between short term leases and long-term leases we turned off our revenue system at dynamic pricing which checks when supply goes down, demand goes up, you know what happens to prices, right we turned that off we wanted to make sure that people that were negatively impacted by the storm didn't get hammered in price or didn't get gouged or anything like that we just want to be good neighbors. >> reporter: so going forward, what do you think is going to be the development in houston, is this going to be a blip on the radar then you'll go back to too many apartments or are you looking at more development? >> huoustons o was on the road recovery we built too many apartments in anticipation of oil prices continuing to be high and

creating jobs that the oil business was doing we've been running through the inventory over the last eight, nine, ten months we thought that the houston permanent apartment would be back in supply and demand balance by the end of '18, early '19. the storm moved that up a year. >> reporter: do you have the lab tore build the apartments you need >> that's a challenge. we have a property under construction across the street from where we are standing now we're six months to nine months behind that project. we don't have the labor. labor is tough if you're trying to build something new, now it's going to take six months to a year longer than normally because we don't have the labor. >> reporter: thanks so much. ric campo, ceo of camden property houston based. back to you,diana, thank you so in terms of tech on value versus growth, we're going to take a look at how some funds are handling that decision when we come right back plan for retirementer to

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welcome back according to a new report, two tech giants are cracking the top ten in large cap value and growth funds what eric joins us with more on this. eric >> that's right, kelly a new report out today from e-vestment shows fund managers went underweight visa saw the biggest ownership jump wells fargo saw the biggest decline. one report item stands out when you look at large cap growth funds and compare them to large exam value funds, despite

their fundamentally different investment mantras, you find some of their biggest holdings are identical. for example, apple and microsoft are in the top ten most weighted stocks for growth funds, and they're also in the top ten most weighted stocks for value funds. it's a pattern you see elsewhere in the investing world funds call themselves one thing but they invest in another or stocks that can find appeal from investors with totally different approaches value and growth at the same time last week at delivering alpha, you know this, kelly, julian robertson talked about it. he said apple, facebook and google are not actually expensive stocks and they're happier than they would have been in the 1960s, '70s or '80s. but it's not just fund managers. some of this comes down to the indices and bench marks they're up against consider the top 15 holdings in the three biggest value etfs and the three biggest growth etfs. a full six stocks showed up on both lists all of them are household names. microsoft, intel, pepsi, 3m,

united health care and phillip morris international back to you, kelly. >> it's peculiar eric, thank you very much. this goes back, i don't like the value growth distinction in the first place. i'm not sure -- >> in fact, i know that some index providers that have style indexes, i think russell back in the day, an individual stock would be split proportionately, say, oh, 6 o% in value index, 40% in the -- >> what is the point >> because, look, it's kind of like -- it's quantum investing depending on exactly how you observe it. >> i don't like it bridgewater's ray dalio has a warning for bitcoin investors. we'll bring that to you next in today's fast take. coming up on "fast money" one blackrock strategist will give his fed pyblaook and tell investors what to buy out of that meeting we'll be right back.

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welcome back time now for our fast take today. we begin with some big news on kohl's and amazon. kohl's says it will return your amazon packages for free starting next month in designated locations michael, is it a win-win >> it's pretty clever. the market thought of it as a win. very small percentage of store-based, they could roll on if it's worked, driving traffic into stores. >> i would do this in a heartbeat, returning to amazon is crazy if they could help with this, especially for free. >> repacking it, that sort of thing. if amazon wants to get deeper with physical chains >> kohl's would be so lucky.

>> bitcoin is a bubble it's a shame it could be a currency it could work, conceptually. but the amount of speculation and the lack of transaction, the idea that it will be private in terms of transaction when you take bitcoin, there are other crypto currencies. bitcoin might lose competition to another crypto currency it's very much speculative, people thinking can i sell it at a higher price so it's a bubble >> the more the dalios and dimons of the world say this, the more its defenders say these old white guys don't get it. >> the powers that be don't want this to be big however, if you look at the trajectory of the price change,

the volatility in the way bitcoin acts, it does check off the boxes of bubbly activity that doesn't mean it's necessarily doomed >> either it's gold or zero. the vc's are getting into icos because they feel like they can't miss out on the growth we're nowhere near the end of this bis says central bank should think about developing their own crypto currencies which i don't understand at all, because the dollar is already digital. >> the dollar is largely digital. but there is an enormous amount of physical currency out there that does trade, that is anonymous, that does qualify along the lines that people say bitcoin can help with, anonymous exchange, portability. it's not something that depends on counterparty risk, right? however, i don't know what central banks would do about this it's almost by definition, if you created your own kind of

digital version of cash to go in digital wallets backed by the same stuff that regular money is, why is that appealing in this new world i don't understand >> it's all making my head hurt. >> it does make everyone think about what money really is, which scares a lot of people >> a fun discussion to have, at the same time. chair janet yellen is holding a news conference tomorrow, we'll talk about what to listen for when we come back. kevin, meet your father. kevin bye kevin kevin kevin kevin kevin kevin kevin

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the fed is widely expected to keep interest rates steady, tomorrow, michael, we sort of sound like a broken record what do we expect? >> the expected path of rates next year, what the members think about how many rate increases they may be able to achieve. >> they'll have the projections. >> exactly they'll try to say the balance sheet runoff is not a monetary policy tool, this is just getting back to some kind of normal thing, the rates is what we want to press we'll see how hard they press. >> the shadow rate is finally back to zero, this thing was negative 3%.

i mean, we are now actually at zero for the first time in years. >> right that's some version of normal. so i think the fed wants cosmetically to look a little more normal. >> let's hit the earnings. huge decline in shares of bed bath & beyond, it's shutting nearly a fifth of its market ca after a miss fedex was down 4% at one point, now adobe looks worse than fedex. >> the fedex and adobe reactions, they've been strong stocks, this is not that surprising versus what we saw in the thick of the earnings season the bed bath & beyond, clearly there's some level of existential threat here, they loaded on a bunch of debt at the wrong time >> toys "r" us is not getting emphasized enough. it was a 2005 ld off, it's 7 1/2 multiple that didn't work out. it's a garden variety -- >> it's an old story in retail

and private equity, absolutely right. they thought real estate could bail them out. that game doesn't work anymore plus deflation in toys very few things have had worse deflation than toys. >> parents never say that, these toys are so expensive. >> they have so many, they trip over them. >> my knowledge, thank you very much, a pleasure as always that does it for "closing bell" today. "fast money" begins right now. "fast money" starts right now. live from the nasdaq overlooking new york city's times square i'm melissa lee. tonight on "fast," check out shares of fedex and bed bath and beyond they're getting crushed in earnings reports coming out moments ago. both companies arepointing to one major headwind, we'll tell what you that is plus nelson peltz has harsh words for the ceo of procter & gamble, we'll bring you the comments the reviews are in for iphone 8 and iphone 8 plus. it's not looking good. could the appl