tip, you have to agree -- i'm not kidding. how would you do it? otherwise, you'd be like i'll wire you the money later yeah, right. >> yeah, no. >> yeah. >> you have a check please, b bri brian? >> that was it. >> all right have a great weekend, everybody. thanks for watching "power lunch. >> "closing bell" starts right now. hi, everybody. welcome to "the closing bell" on th this friday, i'm kelly evans at the new york stock exchange. >> tgif from me as well, i'm bill griffeth. very newsy day apple on pace for its worst week in almost a year and a half as the iphone 8 hits stores today amid lackluster reviews. we're going near whatto merheari cook has to say. bomb sthshell this morning,r

losing its license to operation in london. is it a red flag for the london economy? we're going to get into that coming up. but we begin with this breaking news in the last hour or so, health care stocks rebounding as senator john mccain says he will not vote for the graham/cassidy health care proposal kayla tausche is here to bring us to up speed kayla? >> reporter: that statement landed with a thud earl yer this afternoon, bill. arizona senator john mccain becoming the second official no on the republicans' final push to reform health care this year, with just republican votes creating a significant and perhaps insurmountable obstacle for this bill's passage. mccain says the bill of this impact should be done on a bipartisan basis, saying, "i cannot in good conscience vote for the graham/cassidy proposal. i believe we could do better working together, republicans and democrats. and have not yet really tried nor could i support it quhowith knowing how much it will cost, how it will affect insurance

premiums and how many people will be helped or hurt by it." those details also concerned two other moderate republicans senators lisa murkowski and susan collins whose votes still hang in the balance with collins saying earlier today she's, quote, leaning against mccain's move may inspire more moderate republicans to defect the top senate democrat, chuck schumer, lauded what he called mccain's courage in his decision saying he's, "assured senator mccain that as soon as repeal is off the table, we democrats are intent on resuming the bipartisan process." it is worth noting, the white house is not particularly optimistic about a bipartisan effort because it involves reinforcing the existing obamacare market which so many republicans are against doing, but kelly, we'll see what next week brings. this situation can always change on a dime. >> that's for sure and it just did. kayla, stay with us. does it derail washington's hopes as we head into next week for a republican health bill joining us, spencer pearlman,

director of health care research at vita partners i mean, with e were watching ala today to see if lisa murkowski might possibly get onboard with this effort. it seemed like senator mccain was signaling this week he may support the plan, yet hi decision this afternoon. what do you make of it. >> yeah, kelly, i was surprised to be honest with you. senator mccain, obviously his best friend in the senate is lindsey graham who's one of the lead sponsors of the legislation. senator mccain also had really tethered himself to the republican governor in arizona, it was one of the main reasons he voted against the better care reconciliation act in late july. governor ducy came out enthusiastically in favor of legislation i believe earlier this week and mccain's senate colleague, jeff flake, also came out in favor of this legislation. and he had also been a little bit dubious of earlier versions. so, to be perfectly honest with you, i kind of expected that senator mccain would likely support this pretty surprised that he has

not. i think it's pretty obvious that he recognizes he probably will not have to face voters again, and he's going with what he thinks is best for him and his constituents >> kayla, as you probably know, john kasich there in ohio came out with a statement a little while ago, expressing his pride in john mccain's decision. he also said, let's get back to the bipartisan effort by lamar alexander an patty murray. where does that stand right now? >> reporter: well, that was put on ice earlier this week when republicans effectively had been asking senator alexander to try to shore up some support for the republican effort before turning focus and resources to a bipartisan effort. it is worth noting, bill, that governor kasich was one of about a dozen governors who authored a letter against this. there were more than two dozen industry organizations that came out against this bill. and then earlier this week, there was a letter from all 50 states' medicaid directors

coming out against this bill so it's not just that the opposition had been welling within the senate and on capitol hill, it was really within industries and at the state level that there was opposition to this, which is interesting because the whole ethos of this bill was to return power to the states and return flexibility to the states which then to have many states saying, we don't want that, or we don't think this is the right way to do it, that was pretty noticeable, and pretty meaningful, i believe as for this bipartisan effort, perhaps senators alexander and murray will try again. it's certainly something that democrats want it really depends on support within the republican party because as i mentioned earlier, so few republicans, especially in the house, want to be seen as propping up obamacare when they all ran on platforms -- >> yeah. >> of dismantling obama care it's really a tough pill for a lot of those lawmakers to swallow. >> i was going to ask you ask that that, spencer, what are the prospects of this bipartisan health reform to happen? i understand why senator mccain

thinks it's wise he said, look, the democrats rammed this through when they were in office and you saw the reaction to that landslide losses in the midterms the polarization that exists today. is it a viable bipartisan solution really an option here >> at this point, i'm pretty dubious. you know, i think there's just so much bad blood. this is an issue that has really just divided the parties for so long republicans, their entire brand, is predicated at this point on the slogan of repeal and replace. and as kayla said, i mean, for a lot of these guys in the house to go ahead and vote for something that would appropriate funding for the cost-sharing subsidies, from their perspective it's propping up something they have said is the end of western civilization as we snow know it. i'm not sure we're at the point where there's going to be bipartisan agreement senator alexander should be lauded as should senator murray. they'll keep at it to be honest, one of the reasons they were trying to move forward as quickly as they were on the bipartisan stabilization effort, this is the week when plans have

to decide whether or not they're going to enter the market. they'd be too late to effect what happens for 2018 rates at this point, anyway >> before we go, spencer, wie were watching earlier today, many health care stocks had been down sharply apparently in an titicipation o passage of aca it looked more likely. after senator mccain's statement, they all started rising my question is, what do you think benefits most if there is no major repeal of obamacare at this point h. >> i think that, you know, managed care plans that have a presence in medicaid probably benefit the most i know that probably the hospital stocks are probably moving the most. although quite frankly, i think there's a lot of structural headwinds that impact the hospitals just outside the political dynamic. you know, a lot of the medicaid expansion population was put into managed care, they're relatively healthier and wealthier than medicaid populations and actually make a good business model from a managed medicaid perspective with graham/cassidy at least

looking like it's likely off the table, think some of the managed medicaid names, united health, aetna, others would benefit the most from this going away. >> well, that's how the market seems to be reading it, too. spencer, kayla, thank you both. >> thank you. to the markets we go this friday another down day for the dow what happened? two in a row first time in a month, i think, that that has happened i was reading the dow down 22 point now. the s&p and nasdaq lower the russell hanging in with a fractional gain. our "closing bell" exchange, chris johnson from johnson research group steve grasso with us at post 9 rick santelli checks in from the cme in chicago as well it's a mixed day, steve, we've had gains for the week for the most part for a lot of these sectors. financials have done well. but apple has been a big laggard this week. what do you make in the aggregate, what's going on >> i would say the aggregate we're still at 2,500 in the s&p, huge

battleground for stocks. >> right. >> in my opinion, it's good breakout or breakdown is good for probably a 2% move we've kept a lot of people on the sidelines. when you have markets that aren't moving as volatile as they would like them to move, you sit on your hands. you don't do anything. but when you look at apple, remember that -- the facial recognition glitch that they had during their presentation, i truly believe that that really opened up the sellers. everyone said, you know what, let's start ripping through it here, no reason to upgrade, let's start looking at numbers if they didn't have that glitch, this stock is at 160 range and that's my personal opinion, to way to prove it, you know, it is what it is the price is truth but another thing that's moved the markets today is the health care bill. hasn't moved the markets because here we are at 2,500 but it's moved sentiment about the movement. >> no, we moved -- chris, i'll throw this over to you if you looked at the dow before this anonouncement from senator mccain came out at 1:56 p.m.

eastern today, united health was down more than 3%. there was this notion building up in the markets if you read it this way that this graham/cassidy was potentially going to pass. now united health is only down 1% the health care sector broadly turned positive. i don't know, to steve's point, that feels like an overriding force. today we could go green for the dow and s&p here as we head into the close. >> i think we could. one thing you have to remember here is the trend is our friend. i'll point out kind of what steve was going on, apple, i'm not too surprised because it usually pulls back 4% to 6% after they have product announcements. it is a huge company in terms of sell the news type of movements. when you look at the market overall, though, the fact that the russell is up today, i think is awesome, because we're starting to move to new highs on the russell. that tells us that speculation is alive in this market. markets are driven higher by speculation, not necessarily fundamentals people have to want to buy stocks when you look at the health care sector, though, i think kelly, right now, it's going to turn into what we called the quote/unquote, trump rally, which was really a certainty

rally. investors are starting to get an idea, finally, of what is going to happen over the next 3 to 6 to 12 months in the health care sector you're going to see providers not only benefit but i think also when you look at the equipment providers there the health care sector, they're going to benefit as well it's not because it's getting rejected, it's because we're finally getting some certainty around the situation here. same thing's going to happen with the tax cuts. >> and rick, of course, the moment the week for you, the markets you follow, credit, currency, the fed meeting and the pivot, as they get ready to start to unwind their balance sheet next month what do you see going into next week in your area? >> reporter: you know, as i look at the interest rateities are uk most maturities are down a bit on the day i think you hit a high-yield trade around 227, 228, it wasn't that long ago we were at 202 intraday and had a bunch of bad auctions the week before this.

we have auctions again coming up i really do think with the north korea issues, not having huge effect in treasuries it looked like it was going to grow early and really faded back a bit. i think that's a sign we're going do come in next week and see a very firm, if not higher, interest rate market it's the dollar index that just doesn't seem to catch fire and stay ablaze very long. it's up on the week, not very much whereas you look at ten year note yields, close to the highest yield close since the end of july. were tipping the scales there yesterday's close and almost took it out. i think you want to monitor supply next week tuesday, wednesday, thursday, 2s, 5s and 7s. >> we'll watch that. the two year note auction ought to be very interesting thank you, guys. appreciate your thoughts on today's market action. now on a day where we've had lots of breaking news, apparently there's more out of washington eamon javers, what now >> reporter: yeah, that's right, bill, white house officials now saying the acting secretary of homeland security, elaine duke,

made final recommendations to president trump on travel restrictions to certain countries. now, remember, the travel ban imposed by the trump administration expires, expected to expire on sunday. that gives them just a few days now to come up a permanent replacement for that and what officials at the department of homeland security and the white house just briefed reporters on a few moments ago is they have come up with a new set of recommendations for the president. the president will ultimately make a final decision, not clear when he's going to make that decision, and it's not clear which countries will be impacted by these new restrictions. it's not at all clear whether there will be full travel bans or something less than that. they're calling them tailored and tough restrictions and they say it all depended on the cooperation that they got from each individual country around the world in terms of identification, passport security, anti-terrorism efforts and the like the countries that met the united states' baseline, they say, are going to be able to have full travel back and forth. the countries that did not will be on this restricted list each country will be subjected

to its own set of criteria of how to get off that restricted list ultimately say this is not going to be a time-based procedure, it's going to be a conditions-based procedure for countries to get off whatever list they put out. that will be wherever those countries come into compliance with u.s. standards, they'll be removed from that list and could be an ongoing process. as of now, we're expecting now a presidential decision on what to do in terms of the travel ban. that could come before sunday. officials were careful to caution that it also might not they've got some contingency plans in case the president doesn't make up his mind by sunday, guys back over to you. >> all right, eamon, thank you keep us posted eamon javers in washington. now, as apple's stock is heading for its worst week in more than a year, the iphone 8 hit stores today where's the buzz we'll go live to one of apple's flagship stores coming up. and as we mentioned, london looking to hit the brakes on uber claiming the ride-hailing app company is not fit and proper for the city's roads. we have that story coming up next. and of course, we always love hearing from you. reach out to the show on

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at black eye for uber, this time city officials in london have decided not to renew the company's license to operation there in the city. saying that the company demonstrated what they called a lack of corporate responsibility in relation to a number of issues >> joining us with more is cnbc's own villa marks based out of london, deirdre bosa at uber headquarters right now i mean, this is so fascinate -- look, i was just there i think back in january. the london cabbies are still incredibly more expensive than uber there is so much resentment back and forth. but this would really hurt, what do they say, they have 3.5 million users of uber? yeah, 3.5 million users, 40,000 drivers. i mean, how do you think that people in london who have to pay to get around every day are going to react to this >> well, kelly, you know, when uber came in here a few years ago it was seen as a lifeline for a lot of commuters, people

going out in the evening on a friday night like this and it was a way for you to get home after a few drinks in an affordable way taking a black cab growing up in england, wait a minute, that's going to be way too expensive. i can't justify that with an uber, i'll do that i took an uber from my studio, 15 minutes to here, 15 pounds, about $22 right now. black cab would be twice as much money. made a massive difference for the london middle class. the arguments from the mayor of lond aon and others, it'se been exploitative, haven't done a good job of security checks on drivers. there have been accusations that led to that. black cab drivers, politically influential and five years have been pushing back really hard against uber. >> deirdre, what is uber saying, how are they responding to this? >> reporter: uber pulled out its playbook

this isn't the first time the company has run into regulatory battles across the world london could be a very big blow, though, not only is it one of its biggest markets but one of its most important as well it's interesting how the company didn't waste any time sending an e-mail out to its users across london saying sign this petition in an hour's time, that petition had some 35,000 signatures it goes to what willem was saying, people want the service, they like that it's cheaper and sometimes more convenient and sometimes safer. last time i checked that petition was on its way to 75,000 signatures. will and kelly, what's interesting, too, remember, there's a new ceo running the company now. dara khosrowshahi. he's been in the position for less than a month. we know what travis' style was, it was move quickly and break things even if that came at the expense of the business. we're seeing a similar thing we haven't heard from khosrowshahi, himself. we've laeheard the gm in london this sounds like the uber playbook. >> i'm curious, the statement by the london officials takes direct aim at uber, itself,

saying this is a company they didn't feel was fit to hold this license so are they -- they just don't want uber or don't like the ride-sharing process, itself >> well, one of the big complaints, yeah, has been that, you know, the company bills itself as just an app, whereas there have been a series of court cases here in which essentially uber had to acknowledge it's much more like an employer, something obviously we've seen all over the world when it comes to defining their business model here in london, there has been just an ongoing campaign by the black taxis, london's famous black cabs, to try and get uber to follow the rules that everyone else follows. my driver coming in here this evening, a libyan guy, worked for a mini cab company before. he said working for uber gave him freedom, flexibility, all these things we hear so often from uber. he did acknowledge that there haven't been a huge number of checks on him before he started working for them he said that had been something quite surprising for him that is one of the big criticisms from sadiq khan, from the maymayor, from transport for

london, the agency that regulates this hasn't done enough rooking at workers' rights but making sure drivers are who they say they are and pass the background checks necessary to work with people in the transport sector. >> all right willem, deirdre, thank you, both bill willem, we know it's the evening time we hope you can find another uber back. >> charge it to the company. >> some londoners are calling for a boycott of black cabs ar this again, it's so -- >> it's expensive. >> i love the black cabs and cabbies. you know, if they think this is the right thing to do, if the issue is with uber, something with background checks they can resolve, they will resolve it that way and move forward. >> that's a lot of customers to have to work against now what are they going to do with all those people that love uber? >> i mean, there are other ride-sharing options, to your point if this is just about uber, they can use some others right now. >> might be an opportunity. let's head to the close. 38 minutes left in the trading

for coca puffs, there's something i never thought i'd say on television, wait until you hear what fans wanted for another general mills cereal as the one-time breakfast king continues to fight sagging sales. and more name calling between president trump and north korean leader kim jong-un. beyond the war of words, another country is preparing to take a seat at the nuclear table. we have those details straight ahead.

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the original trix cereal is making its way back to store shelves after customer complaints about the all-natural flavored version that debuted last year. general mills will now stock both the flavored natural cereal that use radishes and purple carrots for coloring. >> yum. >> and the original cereal that uses food dye and high fructose corn syrup the company pledged to remove all artificial colorings from its cereal, back in 2015 90% of the cereals remain food dye free general mills, by the way, which saw a big drop on its earnings recently, stock today is down today another about 1%. >> i wonder the natural organic pendulum has swung about as far as it's going to go and we're going to see a little backlash now. i'm not saying it's going to go way back again like some companies -- >> i was going to grab the m&m's again. >> they see the sales go down, they figure, look, if this is what the people want, we're going to give it to them if they want -- if it tastes better with the food dye and everything in there -- >> my favorite was the mom who told the "journal" in the story today that her kids found the

new trix depressing. >> yes honey, it's got -- it's flavored with purple carrots. >> and it just -- >> doesn't work. we'll see where it goes. >> yeah. that's coming back next month. walmart is taking home delivery to a whole innew level. forget the doorstep. they're going do deliver into your closet, your fridge, your basement we're going to tell you all about it and what lmt oprshink about it, next. ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

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walmart is testing a new delivery service, talking about retro, company partnering with august -- >> the milkman didn't go in your home, did he >> yes, i'm going to tell you the story in a minute here this company is called august home that would install smartlocks at your house, then customers would place orders online, and then a third-party driver called deliv, would bring the items into the shopper's home while they're away. >> yes, so they -- >> right in the house. >> boxes on the porch but the refrigerated items they could put in your refrigerator. >> go in the house, put it in the refrigerator walmart shoppers can monitor the drivers through the august home app. we asked to see if this a service people would actually use. here's what they said. >> you're saying the deliveryman would have a key or a pass to my

home to come in and. ut the groceries away? i don't think i would like that. >> i would definitely allow it i trust walmart and i live in a secure place where they would let them in. >> based on what i'm hearing right now, i wouldn't be comfortable with somebody i wasn't familiar with coming into my home and dropping off things. >> i think with every system it's going to take a little bit of thyme to put it all together and have a safety system i mean, if the houses are backed through the application, i wouldn't be sure it's a problem. a lot of apps are already utilizing that i'd see the application being good if i was buying ice cream, wouldn't want that to melt. >> exactly my dearly departed mother-in-law loved her milkman, come in the morning, come into the louse, wa hous bla put the milk in the refrigerator >> how long ago was this >> 1960s. >> was he a member of the

community? >> no idea. >> wonder if there was a level of comfort, a small town and she knew who he was. >> potentially you'll have the same delivery person >> i love this i'd do it in a heartbeat i don't want to speak to the household, but -- that's how i feel it feels very convenient. >> mr. evans might not go for this we'll see. by the way, we want to know what you think, would you allow a third-party delivery person into your home? send us your thoughts on twitter, you can e-mail us, there's the way to find us >> we might even read out some of the mailbag today. time now for a cnbc news update with sue herera hi, sue. >> hello, guys here's what's happening at this hour russian foreign minister sergey lavrov speaking at the united nations called the back and forth insults between president trump and north korean leader kim jong-un a kindergarten fight. he said the world should take a reasonable and not and emotional approach to the north korean problem. satellite images reveal the destruction in mexico city after that massive earthquake.

at least 50 buildings collapsed and the death toll from the 7.1 magnitude quake has ridden to 286. hundreds of cattle were rescued from a flooded 4,000 acre ranch in southern florida ranch workers on horseback guided the cattle to safer and drier ground officials say the rainfall basically from hurricane irma caused a dike to break and that's what flooded that particular area. arizona health officials are warning those traveling to mexico to be aware of possible contaminated 7-up beverages in the mexicali area. this comes after reports surfaced that methamphetamine was found in some of the soft drinks one person died. seven became ill that's the news update this hour bill, i'd send it back downtown to you >> i'll see you tonight on "nightly business report," too. >> i look forward to it. you got it. >> thank you, sue, see you later. apple's stock weak again today as its newest products hit

store shelves amid weak reviews. josh lipton is in palo alto with the latest josh >> reporter: well, bill, what has become a kind of tradition here, apple ceo tim cook actually did show up at this store right behind me here in palo alto, he was here to welcome customers. i had a chance to actually catch up with cook briefly one question i had for him was just about the breadth of really his iphone portfolio, you know, it's a range of devices that now go from around $350 all the way up to $1,000 i know there is some concern that maybe that could confuse some consumers i asked cook about that. he disagreed take a listen. >> really smart so they can decide what they want and we try to help guide them in our stores and i'm sure the carriers are doing the same thing but we really like what we're seeing >> reporter: so cook obviously willing to bet there that consumers are going to be able to make that distinction between

these different devices when it comes to performance, and battery life and camera technology of course, excitement about those devices, not just what we saw today, but about what's coming with the iphone 10, that did drive a big surge in apple stock, but as you mentioned, bill, it's been under pressure lately it's on track right now for its third straight day of declines month to date it's down about 8%, though still up more than 30% year to date and finally, we mentioned the new iphones. i also want to mention the new watch. actually have it here. this is the new watch with that cellular connection. obviously the idea being would it be much more of a standalone device for around $399 we know there were also some prom innocent tech reviewers at the "journal" and the "verge" who said when they tried the device, the watch, they did have some real issues with connectivity i asked cook about that. how serious is that issue, does he think that could put a dent in demand? cook saying that the issue, in his words, is very minor, it will be fixed, he said, in a

software update. it had to do with the handoff between wi-fi and cellular and will fix that. it only happens in a rare number of cases guys, back to you. >> all right, josh, thank you. >> is that going to put a dent in your demand >> well, the "journal" said they had to ask for three different watches and, yeah, i mean, this -- it's not -- it's not fully ready to go yet it sounds like. >> apparently. >> let's bring kayla in, she's sitting next to us, senior writer for "tom's guide" who has the new phones bill's holding. >> i got the 8, you got the 8 plus. >> i do. >> i realize this is your phone. i'll be very careful. >> my data is on there thank you. >> i won't invade your -- what do you think of them >> so, i understand why people are waiting for the iphone x >> oh, boy >> gosh >> there's all your messages >> what are you doing? >> you're getting very nervous go ahead. >> people are waiting for the iphone x because the iphone 8 and the 8 plus and the -- >> i'm trying to get -- go ahead. >> trying to get a neutral screen on there. >> they all look identical from

the front. so even though in inside, this is much faster, it has a faster processer, it's faster than even the latest samsung -- >> move it around for a minute while the camera is on it. is this the whole glass thing? >> yes. >> a cover on that or anything >> no, there's no case. >> look, it's not -- what's glass about it >> hold that. >> it's glass. if you look at it. so the past generations were -- >> versus this >> -- aluminum aluminum versus glass. that does look different the 8 plus has the dual-lens camera like the 7 plus did. >> okay. this is the aluminum back. >> yes you can see the glass -- >> i see the difference. >> -- is shinier. >> this is what the iphone 8 is all about. >> yes. >> there you go. >> so the left hand is the 7, i think it is. >> the aluminum. this is the glass. >> and the 8 is the glass. >> yes precisely. >> have you seen the 10 yet? >> i have not seen presidethe 1t there was a press preview at the

apple media event on the 12th so some other people got some hands-on time with it. it's not available to preorder until the end of october, so we're waiting. everybody's waiting. >> might be waiting for some time i mean, hopefully this thing will be available for the holidays i know they like the scarcity effect to make sure there's hype around it. what about the watch >> you have it there. >> i'm trying it right now. >> there's the red dot that's how you know. >> that's how you know it has lte. i had very limited -- >> there we go, there we can see. >> the red dot so i've been testing for a little bit it's a lot faster than the past generations. siri is a lot more accurate, can pick up what you're saying a lot more. >> the connection okay >> the connection with apps is great. i have had some issues with phone calls, but some of the other "verge" reviewers were reporti reporting. very limited testing

aisle going to try it out a lot more. >> if they say it's a soft ward software fix, could you recommend that watch for people, where you do you come out on this >> the series 3 without the lte is the best bet for some people. you're needing a really great smart yn watch that ties into your iphone, and is useful for working out because it has the gps, still waterproof, you can track your swimming, i think that's enough for most people and also a lot cheaper, $70 cheaper. the lte watch has, you know, data plan. it's just a lot extra that people -- >> data plan is like 10 bucks a month. >> yeah, 10 bucks a month. some carriers are offering a couple months free. >> all right i'll give you your phone back. your mother wants you to call her. >> she's my test case. >> that's fine. >> she says hi hi, mom. kayla from tom's guide, thank you for joining us today see you later. heading to the close, 20 minutes left in the trading session. here the dow coming back a little bit. >> there we go the s&p's now positive. >> and the dow down 18 points.

another war of words now between president trump and north korean leader kim jong-un. meanwhile, another actor is sharpening its nuclear act we have details on that coming up. and still ahead, puerto rico mip might not have power for the next six months in the wake of hurricane maria. we'll talk to the ceo of puerto rico's electric power authority about those challenges stay with us throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise sometimes they just drop in. always obvious.

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markets are slowly coming back, but not the shares of grubhub, down today on the heels of news that amazon is partnering with restaurant technology provider, olo, to expand its delivery service. amazon says say the partnership will give prime members moredel. as you see, grubhub down more than 3% today. north korea now saying it may test a hydrogen bomb over the pacific ocean. eamon javers is in washington with the latest. >> reporter: that's right, it's been a war of words all week between north korea and the united states, saw the president earlier this week at the united nations threatening to totally destroy north korea if it came to military conflict, and belittle the north korean leader as rocket man. the north korean leader now put

out his own statement in which he attacks president trump he said "trump rendered the world restless through threat and blackmail against all countries in the world, unfit to hold the prerogative of supreme command of a country and surely a rogue and a gangster fond of playing with fire, rather than a politician." to that, the president responded on twitter this morning, saying, "kim jong-un of north korea who is obviously a madman who doesn't mind starving or killing his people will be tested like never before." and adding to the complexity of the international picture here, the president of iran, hassan o rowani also unveiled a new ballistic missile, not a nuclear missile but a ballistic missile with a longer range than previously and says "we will increase our military power as a deterrent. we will strengthen our missile capabilities." that coming in the wake of president trump saying on wednesday that he is, in fact, decided whether or not to rip up the iran nuclear agreement which he denounced as being terrible for the united states. the president said he's made a

final decision on that, but he won't say what it is or when he will announce that decision so we're a little bit waiting for the next shoe to drop here in the u.s./iran relationship that could come at any time, guys >> i mean, i don't know how much capacity we have for dealing with all these things at once, eamon, so the north korean threat is so large and stark, you know, reading over the speech that kim jong-un gave, it's just basically accuses trump of being the provocateur, and says this will be met with a response interesting there hasn't been much of a market flutter at all in reaction to that. do you think his threat should be taken more serious? >> reporter: well, absolutely, it could be presaging some kind of nuclear test like we've seen a couple times already this year could be presaging a missile launch we've seen two overflights of japan by north korean missiles which is a very threatening gesture, and potentially dangerous if any of those missiles were to be defective and actually hit japan by accident that could trigger a war or some kind of calamity

so, a very dangerous situation in north korea there and the president responding with stepped up rhetoric at the united nations this week the interesting development on north korea, though, is the involvement of the chinese now the chinese sending a message from their central bank to chinese banks saying don't get involved with north korean financial transactions if that's serious, if that's not a wink and a nod kind of a situation, that could mean more engagement from beijing, and that actually could be of some help to diplomats here in washington trying to work their way through this sort of a war >> indeed. eamon, thanks. we'll see you later. eamon javers in d.c. with 14 minutes to go, the s&p is in positive territory back up to 2502. the dow is only down 11 points now. the nasdaq up 3. the russell is up 7. it's above 1,450 hasn't been able to close above that level since late july. propaganda war, sounds like elements associated with a james bond novel lately they've been tied to facebook

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on close orders show an imbalance to the buy side of $800 billion, which he says if it's not met with a lot of selling here, could take us positive on the dow for the close. the s&p has already turned positive. >> we should mention the key reason behind that today, we're at lows earlier just before senator mccain announced he would oppose the graham/cassidy health bill which is supposed to have been brought to a vote next week the united health is one of the biggest draggers on the dow, down more than 3% at some point, as it's come back, so, too, has the dow. the health stocks. s&p has turned positive. apple is the single biggest -- >> it's having its worst week in 17 months as we mentioned down 5% just this week. apple. facebook, in the meantime, let's see how it's doing today down a third of a percent right now. following the company's announcement yesterday that it would share with congress those 3,000 russian-linked election ads found in its recent investigation. >> ads being just one of the many troubles facing facebook this year. is the social media giant still

worth buying for investors joining us now, michael graham, and david deets, let me guess, you're the bear. >> absolutely. >> has to be. >> all right talk to us about why you think facebook's a sell here >> so, you got a stock price to perfection it's a 15 multiple of sales, not earnings i think the risks loom large people are waking up to the fact it's a monopoly. look at at &t, microsoft, standard oil markets and regulators don't like that. involves news. 2 billion people a day are waking up to news. no one is minding the shop timely, the privacy concern. 200 data points on each user when are countries and cities going to wake up and take action look what london did to uber today. >> all right michael? what do you say to that? why are you still bullish here >> well, you know, we like facebook, you know, pretty simply because we think they have a long runway for growth with, you know, positive returns for investors.

actually in the valuation is valely reasonable for a growth stock. you've got a very durable growth story. you know, part of the reason revenue multiple is so high is because margins are also really high i think, you know, the real takeaway from facebook is that it's a very stable growth story and it should be for a long time i want to make a point, too, about the monopoly comment you know, it does have a really strong position in social advertising. social advertising is a fraction of digital advertising tifl adverti digital trizing is a fraction of the overall global ad market lot of ad dollars still flow to television, print, radio and other media. i think, you know, facebook digital and social have a long way to go still to take more share. because the ads on these platforms really work. >> real quickly, though, about the -- this is just the latest voice, david brooks, saying the next populism will take trump's ethnic nationalist, add an anti-corporate, anti-tech layer, google, facebook, amazon, google, sort of stand against

what he stands for do you think that they're going to have to do a lot more to fend off a regulatory attack? >> you know, i think that one of the things that's probably on the horizon for facebook is more scrutiny about privacy, but i don't think it's a real significant business issue i think they'll be able to kind of grow through that and figure out a way to use technology to comply with whatever they need to comply with >> david, what's a more reasonable price for you how much would facebook have to come down for you to say, yeah, i'd take a look at that one? is. >> i would say a good 20%. just to add to the discussion, why this is the worst situation that we've ever seen is as much respect as i have for mark zuckerberg, the fact of the matter is one person controls this huge monopoly that's too much power, i think ultimately regulators are going to say to have in just one person that's scary >> do you think it's been abused >> i don't i don't, but the potential is there, and i also say that the

growth points that my other guest made were great. look in the rearview mirror. i tell you, my teenage kids are saying no to facebook, that's for you, dad, i don't spend like the younger generation does. >> goes without saying good to see you both thank you, michael graham, david, as always, appreciate it. >> thank you. all right. still down ten on the dow. everybody else is positive we'll come back with a closing countdown. wrap up this whole week in just a moment. and after the bell, vice president pence on the road. pushing for tax reform we'll hear what he had to say and get some reaction from larry kudlow you're watching cnbc, first in business worldwide see a breakdown of costs.

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♪ watch this don't get mad (bell mnemonic) get e*trade and get invested exactly three minutes left here and look at that. the dow wants to turn positive it was a couple seconds ago. trust me we'll see if we finish up. let's look at the week put things in perspective here we start with the dow. it's, you know, been having some stellar weeks here, week or two ago, it had its best week of the year this week, eking out a minor gain as we close things out. apple, though, has been a drag on the dow it's, as we mentioned, its worst week in 17 months with this roughly 5% decline as it unveils its new iphones. look at this, though, the

transports have had a very good week, in fact, they've had six consecutive weeks of gains the first time we've seen that going back to december of 2016 and this week, another gain. the financials had a pretty good up week with the fed talking about unwinding their balance sheet. this is two consecutive weeks now for the financials to show gains, and in this case, i'm showing you the xlf. the two-year note, i'm going to highlight that usually we show you the ten year, but the two year was the most sensitive to the talk by the fed this week. you see that right there midweek. that took us to a yield we have not seen since november or december of 2008 as the fed talks about unwinding the balance sheet and raising rates. third weekly gain for wti oil. we're getting pretty comfortable above $50 a barrel they're trying to figure out whether they want to continue the cuts at opec sounds like they're not going to remains to be seen what happens to oil after that. as more of the refineries come

online in the gulf coast and the vix, bob pisani, speaking of getting pretty comfortable, it's pretty comfortable now below ten. as we see this big decline there and we're at 9 naf rig1/2 right. >> do not see big, big market tops with the vix like this. people keep asking me this is one of the reasons right now, at least, the market is not showing any signs of falling apart three big stories this week, north korea, puerto rico, and the economic effect of the storms and the rate hikes you mentioned. the banks doing well we still shave plenty of new highs though we're moving sideways and slightly down automotive stocks have had a great week you surprised general motors, of all the concerns about slowing car sales, hit a new high, pa paccar, caterpillar, all the defense stocks, boeing, lockh d lockheed, honeywell at new highs. we were talking about how terrible food stock have been, took another leg down after the whole foods thing and another

leg down this week, all down 4%, 5%, 6%, 7% for the week. tough time. >> no positive dow for the day but for the week we close things out on this first day of autumn. bye-bye, summer, of 2017 stay tuned now for the second hour of "the closing bell" with kelly evans and company. have a good weekend, kell. thank you, bill. welcome to "the closing bell," everybody, i'm kelly evans dramatic turn yararound in mark this afternoon the dow couldn't go positive dropped 15 points on the bell. back to 2,344 for the index which after, up until yesterday was on quite the win streak. again, two days back to back of decli declines the s&p 500 did manage to add a point closing at 2,501 2,508 is its high water mark nasdaq up a bit on the bell, to, 6,426. the ruz ssell, let's see, might

have just eked it out. other three averages have been making highs the last couple months, the russell sat it out today if it holds the close at 1,450 president .65, it will be a record half percent gain for the small caps with much more action under the surface. john mccain saying he cap not support the graham/cassidy bill, came out after 2:00 p.m. and moves the market quite a bit. second republican no vote. the latest details we'll have larry kudlow's take on that coming up. say good-bye to summer in 45 seconds at 4:02 eastern time, it will officially be fall so happy autumn equinox, everybody. that egg balancing thing, it's a myth you know, gravity, it -- it doesn't -- >> it can happen on this day, as well as other days. >> yes as i understand it >> just a way of teaching it to younger kids at home. >> we do have cnbc senior markets commentator michael sant

o, wi oli. great to have everybody along. so, michael, if you had checked right before 2:00 p.m., dow was down and united health was down more than 3% for a no real news. do you assume kind of this expectation that graham/cassidy is going to pass next week and be a negative for the company, mccain comes out, he sea says hs not going to support it. >> it firmed up. i don't know if it was an expectation it was going to pass, hey, the weekend's coming, two days of not knowing how this vote count might go. also they're going to back off because they have been strong stocks one of the dynamics, very flat indexes, s&p 500 was up one point in five days in five days it had a range of 12 points, half a percent. it's really done nothing, but below the surface the winners have been sold off, losers picked up, the worst 10% of stocks year to date through august are up 5% in september. everyone is rotating toward the losers and away from the winners. health care had gotten caught up

in that to some degree. >> we'll talk about what it means if the vote doesn't pass now, where it leaves these companies. meanwhile, evan, transports up for a fifth straight week. >> yeah, i think, and also lo and behold, energy stocks have had a few -- >> your favorite energy sectors. >> talki inin ining about loser have been doing well recently. i have a chart here, believe it or not, i did a little bit of research a little bit i don't know if we can look at it, the question for me, it's been the year of growth stocks the question is when is the growth stock run going to end? >> so fund strat's tom lee was happy to answer that today. >> oh, really? >> said he sees a monster in -- >> okay. i don't know if we have this chart because a couple companies reported recently, so that is the month, past month, of free stocks, oracle, adobe, apple, which frankly have very little in common with each other other than they had a h erell of a run for the entire year.

o or call oracle and adobe came out with results year to date, they're very good. they've done well. the question is, when is the inflection growth stocks going to be? not saying you can time these thing. basically i wouldn't have thought this year would have been a great year for growth stocks totally wrong on that. my belief is, frankly, there's very little value. >> so the market reaction to those earnings, which were pretty much fine, as you would say, shows you that maybe people are transitioning out of that growth, sort of tech stuff >> they're priced for perfection right now. you had a guest on who was talking about how he has a buy on facebook. and his target was 175 and the stock is over 170. he's talking about it as a great buy. you know, there's not a lot of value left there. >> what about you? >> we can sum that up in basically a single phrase, which is yield curve look at value, value is dominated by financials. financials don't make money when the yield curve has been as flat as it is the end of qe, basically the

bond purchases, we'll probably see some steepening in the 210, maybe, you know, in the short-term rates, to the two-year rates which means financials can finally make some money. i think that's the inflection point. you look back to 1926 and rolling ten-year periods, there was really only about 5% of the time that growth actually outperforms value. in this rally -- >> i don't like the whole distinction. >> i don't think it happens. >> is with the sort of -- the interesting thing is to think back to previous cycles, the more recent one in 2006, you started to have the fed raising rates and the whole time that thing was leveling off and took a couple of years so it would be unusual relative to that experience for that to start steepening right now >> well, we do think that it's a little bit different than 2006 because what we're seeing is the fed is going to stop intervening on the long end of the curve so we think the long end of the curve picks up a little bit. we're seeing global growth normalize. if we get european rates to stay flat, move up a little bit, i

think there's room for the ten year to move up. saw it move from 219 to the mid 220s i think that can move up everyone's been saying this, i'm not going to hold my breath, might move up to 2.5%, 3% by the end of 2018. that would be very positive for financials and value generally. >> let's talk about apple being one of the biggest movers today not just today, this week, really bad week for apple with the iphone 8 officially hitting shelves today. sort of a lukewarm reception josh lipton is at an apple store in palo alto where the ceo stopped by earlier today josh >> reporter: kelly, there was certainly high hopes for these new iphones, 8 and 8 plus. yes, apple ceo tim cook stopped by the store right behind me here in palo alto, california. i had a chance to briefly catch up with him. i asked cook what some of the early reads were on demand for these new products, not just the 8 and 8 plus but also the watch. here's what he had to say. >> i am thrilled here's what we're seeing right now. the watch with lte, the series 3

watch, we are sold out in so many places around the world and we're working really hard to meet demand. we've sold out of iphone 8 and 8 plus in some stores, but we've got good supply there. and so you can see what's going on here this morning i couldn't be happier. >> reporter: now take a look at apple stock chart kelly, i know you referenced this. coming to near-term pressure three straight days of declines. down around 7%, 8% month to date though still up around 30% year to date. i know you were reading the same reviews i was this week. when it came to those new phones they were mixed. some critics say in their judgment the iphone 8 was a slight improvement to the 7, costs $150less others had a different take, one said maybe the better question isn't what it means for people who had the 7 since they bought the phone 12 months ago but nose

who have the 6 or 6s, for them the 8 could represent a more significant upgrade. we actually did talk to folks here today, they came by and were interested in buying the 8 plus and the watch we asked them why. here's what they told us >> reporter: after looking at the specs between the 8 plus and the 1x, it came down to a difference in the animoji and the screen size and for me it didn't really seem necessary right away. >> the watch will enable me to leave the phone somewhere and go exercise and sort of maximize the degree to which it's a calming, refreshing experience >> reporter: now there was obviously a lot of excitement, at least among some analysts about that watch, the version that comes with cellular connection some analysts tell me they estimate the watch was a $6 billion business they thought with this technology, it could be more than $10 billion in fiscal '18 kelly, back to you. >> all right, josh, thank you.

michael, i like your analogy to windows the s '95. i don't know if apple would like it -- >> windows '95, pen people linep at midnight the day it was going to be launched to buy a box of software, tremendous amount of hype and expense apple ran this snarky ad in the center of the "wall street journal" and other newspapers making fun of microsoft and kind of the syntax you had to use back then for pcs. but people kept buying microsoft computers, kept buying pcs microsoft's done fine since then i think the era of lining up outside of stores for smartphones is ending. i've been on record, i've been wrong about this so far, the era of big splashy launch events at these companies is not going to go on forever. they're not that exciting, each generation. >> i got -- josh touched on people like me, i got a 6 or 6s, i couldn't care less about thistthis 8. >> i think the -- it's the toyota camry of the iphone line. i think it's the one everybody's

basically going to have. >> i like the 4. i still like the 4 it's the right size. the bottom line, the marginal value -- philippe stark, fancy hotels in miami, said at the end of the day, it's a screen, no design to it, no additional functions. the design and functions go away they're going to need to go into the car business, device business, they need a new platform because their ability -- >> i was to say when i rose thi the other day, the guest pushed back, said you can't run the latest operating software on the old phones, people responded by saying i'm not upgrading. >> that's what it becomes. it becomes a matter you don't keep up with the upgrades, apps get rolled out using the new software, all the rest of it i think it's a matter of how many people are ready for a new phone? it's not because the 8 is that much radically better necessarily. >> right. >> that was the case for apple, the install base is so huge. >> even if you're ready for a new phone, why can't you get the 6 or 66s

they're still selling it. >> certainly can price wise -- >> doesn't save you that much. >> a certain incentive, if you're there, might as well get the latest one. >> i don't know. >> i got a 7, i needed literally a new device. >> right, whatever was available. >> i'm not -- by the way, i'm at the stage right now, everything apple is doing is like pushing me to buy stuff i don't want and so it's just irritating the heck out of me >> we have some breaking news on facebook let's get to leslie picker what's going on, leslie? >> reporter: hey, kelly. that's right we've got some new news on this case regarding mark zuckerberg and his third class of shares he's issuing earlier today we had learned that that case had been settled. that was incorrect, kelly. in fact, facebook has decided not to issue that third class of shares we have a statement from mark zuckerberg where he says, "over the past year and a half, facebook's business has performed well and the value of our stock has grown to the point i can fully fund our philanthropy and retain voting control of facebook for 20 years

or more. as a result, i've asked or board to withdraw the proposal to reclassify our stock and the board has agreed." now, this is ahead of a trial that was set to begin next week, mark zuckerberg was due to take the stand on tuesday in the case where shareholders were suing to block the issuance of this third class, this class "c" shares that facebook was issuing which they said would give mark zuckerberg too much in the way of voting control with not enough in the way of economic stake in facebook, kelly >> all right, leslie, thank you. i thoughtif anything, maybe we'd see an uptick in the shares there's basically no reaction to this, says he doesn't change his wife and his plans to give away 99% of the shares during their lives. we now plan to accelerate that, he said, sell more of them sooner he says i anticipate selling facebook shares in the next 18 months to fund our work. >> yeah. basically he doesn't have to sell as many shares because the value is that much higher. you can kind of get away from doing this sort of thorny

somewhat controversial thing i don't think the street was very concerned about it. does seem like an extra complication he didn't want. >> if you -- if someone had lived in the united states in the 1980s and dropped down today and saw what founder shareholders are able to get away with in terms of doing anything they want, they'd be like what planet am i on would have no idea he's basically saying i'm so rich, none of this matters to me anymore. >> there's a huge problem when you separate economic ownership from control because now the management team isn't aligned with the shareholders when you see someone slylike zuckerberg, great philanthropic endeavors, political aspirations, using it as a tool for the aspirations as opposed to benefit for shareholders. that's now how capital markets are set up. >> let's bring in julia boorstin, he has more color on this, julia? >> reporter: i think it's interesting because the stock has gone up so much, zuckerberg can make these sale and still retain that kind of control over the company, as he said, they expect to maintain that control

over the next 20 years or more so the reason why he's able to make this change is because the stock is up so dramatically over the past year. i do want to note here that he does say he's going to -- he anticipates selling 35 million to 75 million facebook shares in the next 18 months to fund the work in education, science and advocacy of course, i don't think we can really be talking about this without mentioning the other scrutiny that mark zuckerberg is under. of course, there's the congressional investigation into the connection between facebook ads and russian manipulation of the election there's robert mueller, special counsel's investigation into this he's under so much other scrutiny right now, it definitely makes sense to try to remove this and the lawsuit that was scheduled for next week from the list of issues that facebook is being criticized for. >> all right and the shares, again, just kind of fractionally lower on this news julia, thank you just to kind of wrap things up for the day, then, as i mentioned we're coming off this question of whether this is the end of the big trade that's seen the faangs, facebook included

this year. banks up 3% this week. just a parting word, jim, before we go on sort of your advice for investors. >> always want a diversified portfolio of value and growth, even better value and momentum i think we see value finally sort of kick it up and outperform over the next 24 to 36 months. watch the yield curve. i think the fed has really set up a nice run for financials i think that partikely to pay o. >> ef p? >> i think i kind of like short-term bonds, cash at 1.2% to 1.5% yield. >> the two year. >> or money market stuff you're getting well over a percent, your money's safe. >> that looks good to you? >> it looks better to me than buying a share of facebook at 170. hoping it goes to 175. i'll take my 2% in cash. >> anything you'd add? >> somebody should give you a list of stocks yielding at least 1%. >> i know. >> see how you feel about some of them. >> jim, thank you very much.

coming up, the graham/cassidy health care bill garnered the lion's share of attention. tax reform is still on the congressional docket v.p. pence is out pushing the case today update with insight from larry kudlow is next. hurricane-ravaged puerto rico struggling to get its power grid back online ahead we'll talk to the ceo of puerto rico's eciceltr power authority about those challenges when we come back. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. for tech advice. dell small business advisor with one phone call, i get products that suit my needs and i get back to business. ♪

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welcome book the health care sector rebounded, turned positive today after news breaking late this afternoon that senator john mccain will not vote for the graham/cass graham/cassidy health care bill. kayla tausche has the latest. >> reporter: senator mccain, a potentially insir mount bl challenge with his no vote on the gop's last-ditch health care effort it's not surprising because senator mccain cast the deciding vote that killed the july effort, but it is different this time because his best friend in the senate is the sponsor. lindsey graham said he respectfully disagreed with his arizona colleague, tweeting, "my friendship with mccain is not based on how he votes, but respect for how he's lived his life and the person he is. even so, mccain's no vote could potentially galvanize other moderate republicans currently in limbo

the white house spent an hour wednesday discussing with lisa murkowski, wanted assurances her state would not lose money according to a senior administration official while te telling graham it was up to him to deliver mccain. in a statement, saying, "the issue is too important and too in lives are at risk for us to leave the american people guessing from one election to the next whether and how they will acquire health insurance. a bill of this impact requires a bipartisan approach. the senate's bipartisan approach was shelved this week as republicans tried to shore up support for the graham/cassidy bill regardless of its viability, kelly, one thing is clear, because it is not subject to the same deadlines as the republican-only efforts, we can be sure it is not going to be a quick fix. back to you. >> kayla, thank you very much. kayla tausche. let's bring in larry kudlow. seemed to imperil the bill, the market took it that way if you read it health care spending is not going to be pushed lower,

therefore stocks rally zbl. >> nothing like that. >> a politician, somebody saying on our website says this does not mean the bill is dead. what do you think? >> i think this does not mean the bill is dead not very helpful, don't get me wrong. senator mccain is a great american, has his own reasons, so forth and so on let's count backwards. you got 52 republicans you're going to lose senator mccain so that's 51. you're probably going to lose senator collins of maine now you're hat 50. that's it. right? >> rand paul >> well -- >> you thunk heink he's going tp again? >> i don't think he unflipped. he voted for the last one. >> after saying he wouldn't. >> let me make my -- well, you know, sometimes senators to have say certain things i think rand paul is going to vote for it. he knows the stakes. he's made his point. it's a very imperfect bill i have glitches with this bill nonetheless, this bill stops single payer, this bill pulls back obamacare this bill stops bernie sanders

care the stake are very high here, okay i think rand paul as a conserve conservetive will wind up voting for it i'm not sure i'm speculating. second point, miss murkowski, senator murkowski of alaska. i believe she will come around i'm not sure lord knows it's not just about medicare money, or medicaid money to alaskans, it's about a lot of other money. >> the "journal" today -- >> kim strassel wrote a fabulous, smartest woman i know, except yourself -- >> not even close. my point is, though, she does explain that there's a lot more than just -- >> that's right. >> -- the health care spending for alaska, the state relies more than any on federal outlays. >> that's right. >> she feels like there would be retaliation from the administration. >> you can be sure that they're talking about that right now when they said meetings are being held with murkowski. all right? it's not unreasonable, senator, for heaven's sake. i'm saying there's a decent chance she would come around now i need one more. okay and i think at the margin, it isn't going to be rand paul. it isn't going to be lisa

murkowski. it's going to be lamar alexander. okay i think he is the one at the margin he tried to work with senator murray of washington for the insurance bailout. okay cost sharing to put the fancy word on it it was an insurance bail quoout. they tried they couldn't do it. >> the bipartisan plan john kasich is tweeting, oh, we need to go back to this. >> they tried. they couldn't make an agreement on this. my own view on this, okay, strictly my opinion, what senator mcconnell has to do in that event is say to mr. al alexand alexander, who is a good man, good man, lamar, you vote against this, you lose your committee chairmanship you lose your -- this is ha hardball, okay it's like in the "godfather," they knock off the head guy of the other family, right, then the number two guy meets with them and they say, look, this is business it wasn't personal >> so you -- >> i think lamar alexander -- i think senator mcconnell has got to play hardball on this the way he did with the gorsuch

nomination he is capable of doing it. may not come to that lamar alexander may give you the 50 tth vote then you're fine. >> ron insana said if health care is not changed it will make it harder -- they were going to use some of the savings from that. >> that was than old argument. $400,000 i never bought into that argument in the first place. the tax reform, big news this week, huge news, the deal, agreement between senator corker and toomey. >> budget deal. >> two reasons number one, senator corker accepts that the tax cut will run deficits in the first couple of years which i totally agree with number two, they basically created a floor of $1.5 trillion tax cut. which, itself, is an excellent number and if you have a few limits on loopholes or deductions, you can get yourself to $2.5 trillion and that means you're going do get a 15% corporate tax rate, and other good things to grow

this economy i can't -- toomey doing the lord's work, okay, i don't know if people know hymim, i've known him for years. corker had to be persuaded when they come out with the group of six discussion, you may not get every single thing, detail in there. what you're going to get is a very significant tax cut, there will be some offsets the biggest offset will be 3% growth all right? there's going be general agreeme agreement, it will pass easily, in my judgment that's so bullish for the stock market i'm sorry the insurance companies didn't get their -- >> we got -- >> we got to go. we got to go you should tell, larry, it just turned the first day of autumn is now. >> yes. >> we're in autumn i look forward to the 2019 tax package coming around. >> all right. >> larry, thank you. >> looking forward -- >> buy stocks, sell gold and never go near a bond in your lifetime >> bitcoin, how about bitcoin falling -- larry, thank you very much.

>> my pleasure. >> bitcoin falling as jamie dimon reiterated his dislike of the cryptocurrency trading in it is not slowing down we'll have all those details in today's fast take. plan for retirement it eao with day one target date funds from prudential. look forward to your 401k plan. i can't wait for her to have that college experience that i had. the classes,

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not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. welcome back, it's that time, time for today's fast take we begin with the sunrise, that is the jump in solar stocks today after a u.s. trade ruling found injury to solar manufacturers and could open a door to tariffs on cheap chinese polar imports. settled lower by 4.5 octob4.5%

close. >> i don't know if there's wisdom involved, irony that the first big kind of trade measure against china is going to be in renewable energy for this administration >> this is a green administration, michael. just say it. >> it's all of the above right? all of the above energy policy but i do think that there are these product areas where you can demonstrate in a court that there is uneconomic pricing and that's what happened. >> i'm just praying that donald trump does not followthrough on his scores of complaints about china. >> do you care about the solar industry. >> i really don't, to be honest. >> what's your beef? >> my beef is that trump when it comes to china has been a lot of talk and no action. >> that's not true. >> and i'm perfectly happy with thereat. oh, yeah, no. >> i don't know if i follow what you're saying. >> i don't know why you care about the cost of solar panels, so many cool things going on, i'm not sure if this is going to help it. anyway, the solar stocks are

helping it. next, trading volume of cryptokru cryptocurrencies like bitcoin, may surpass the daily trading volume of the world's most liquid stock, you guessed it, apple. as pointed out today, if 3 million surpasses apple's 4 billion or is even close in terms of total daily trading volume, are we on bubble watch >> i mean, huge turnover as a percentage of the market value is one element of a bubble i mean, it's a whole lot less than $800 billion in value in cryptocurrencies, $800 billion is what apple is worth yeah, t an element of it doesn't tell you anything about where they're going. >> right. >> there's a frenzy. >> there's a frenzy. doesn't feel we're at the end of it yet. >> no, it doesn't have that feel it's one of these things you have people like jamie dimon, we talked about this a number of times to people like me who apply ration -- reason and rationality. i am a crypto hater, i'll say it >> i'm not a crypto hater. >> i'm a crypto lover/hater.

i'm one odf those. the point is, still if you take out the money laundering, take out the tax evasion, take out the reason why there is volume in this stuff which is purely speculative, there's almost no reason for the stuff to exist. and the day that the chinese central bank and the federal reserve get together and say, we're going to put an end to this is the day the thing goes to zero. >> all right >> also true about $100 bills. go ahe heaahead. finally today -- >> he's talking like a crypto lover. >> i'm just saying. >> he's talking like a cryptto lover. >> it's always been around timely today, this incredible story, gatorade has h had to pay california a $300,000 false advertising penalty over a free mobile phone game called bolt, helped players refuel usain bolt, while being enkir g encouraged by the app to avoid water. state's a.g. declared it morally wrong and --

>> i hope some the comments are tongue in cheek, but it's cute, this is a hostile advertising measure. of course, pepsico which owns gatorade has aquafina water. they're not an anti-water company. >> the whole thing is ridiculous, am i wrong >> it terrifies me this is what the california attorney general is spending his or her time on it's crazy. >> what could it have to be for his -- this crackdown to seem right to you i mean, is it possible kids are being misled by thinking water is bad in this game? >> there are hundreds of these game applications which soak their parents by clicking on things all the time. in this becagame of things -- >> if you're the a.g., trying to get you to buy this sugar water instead of the free stuff out of the tap that's good for you. >> unless it has lead. that's another story we want to hear your take on the fast take stories. contact the show on facebook, twitter, send us an e-mail, closi closingbell@nbcuni.com. time for a cnbc news update, let's get over to sue herera.

>> hi, kelly here's what's happening at their ho this hour, everyone. james comey was booed and interrupted by demonstrators while delivering the convocation. started singing the moment comey took to the podium and continued demonstrating during his entire address. hud secretary ben carson joining texas governor greg abbott as they toured neighborhoods devastated by hurricane harvey port arthur, texas, they visited three damaged housing developments. melania trump heading out to the white house garden to do planting and a bit of harvesting it's her first event in the garden which michelle obama had made a key part of her let's move campaign to fight childhood obesity. >> big believer in healthy eating because it reflects on your mind and your body and i encourage you to continue and eat a lot of venl tagetables and fruits so you grow up healthy and take care of yourself.

>> that is the news update at this hour. kelly, back downtown to you. >> maybe she wouldn't be happy about the gatorade game, either. >> she might not good point. >> fruits and veggies. healthy foods. thank you, sue. president trump is planning to visit puerto rico to survey the damage left by hurricane maria. up next we'll talk to the ceo of puerto rico power electric authority about what it will take to rebuild the island's power grid stay with us plan for retirement to with day one target date funds from prudential. look forward to your 401k plan. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams...

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puerto rico continues its efforts to recover from the deafization left by hurricane maria. it was the most powerful storm to hit the island in more than 80 years according to officials the storm left at least six dead and millions without pow and could take up to six months to restore that power let's bring in puerto rico electric power authority ceo ricardo ramos, who joins us by phone. thank you so smumuch, sir, we appreciate it. i know you're just crazy right now. what can you tell us about how much power is still out across the island >> well, not serving any power across theisland any power that people may see, it's just a private emergency power plant at hospitals, condominiums or residence.

prepa is out of service. it's been devastated by hurricane maria. we've only done 35% of the infrastructure condition survey, but that 35%, you know, basically, lead us to conclude that we've lost probably 80% of the transmission and distribution infrastructure. >> what does this mean for your company? didn't you guys just file for bankruptcy >> yes, we did, and we were basically requesting liquidity funds of about $750 million per year for, you know, improvement and infrastructure improvement and modern electric utility. so it means we're going to -- that was for ten years so $750 million for 10 years

$7.5 billion it seems that -- it seems that somewhere near there, if we want to rebuild the whole system. >> so, as you said, those funds now will be directed at rebuilding instead of the modernization. except maybe they can accomplish both how quickly can you get that money put to use to get power back on across puerto rico >> well, you're seeing historic data, hurricane hugo took six months to reach the last customer, right? at this moment, you know, we do have some ways to do some advancement. we're going to be providing power to the, you know, central medical institution here in puerto rico, which is going to be holding also the federal health aid there and we should be doing that within the next two to three days as well as to the main convention center which is serving as a main operations for

the whole, you know, rebuilding, you know, process, but it's a step-by-step process we expect to beat that mark. we hope that three to four months, at most, because we are receiving a lot of help. we are receiving a lot of help from, you know, u.s. sister companie companies. and also from the fema and the whole federal government governor cuomo just landed with i think about seven electric power experts and they are surveying on their own also the system so, you know, it's a wild guess at this moment i still need to finish the survey again, 35% we should be 100% in two days, for the surveys. for the survey. >> for the survey. you said three to four months to restore power possibly we hope that the official presence there and the funds can help thank you, mr. ramos, for

joining us. >> thank you, kelly. thank you very much. >> ricardo ramos, ceo of prepa. we have breaking news now. let's send it to seema mody. what's happening >> reporter: moody's is downgrading the united kingdom's long-term issuer rating from aa2 to aa1 and changed the outlook from stable to negative. moody's says fiscal pressures with ill be exacerbated by the erosion of the uk's medium-term economic strength related to departure from the european union. this also comes from -- comes after theresa may, the prime minister of the uk, made an iconic speech in italy today proposing a two-year period of implementation after the uk leaves the eu. in response, we are looking at the pound dropping here against the u.s. dollar. it's come off its lows still as you can see, depreciating against the u.s. currency holding on to 134 back to you, kelly >> all right thank you very much, seema mody. watch out, tesla, mercedes is investing $1 billion in a plant to alabama to produce

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for tech advice. dell small business advisor with one phone call, i get products that suit my needs and i get back to business. ♪ (upbeat dance music) (bell ringing) welcome back venture capital backed food producer opened a new plant in oakland, california. some people aren't happy about it aditi roy, aditi, we haven't even -- we'll let you tell us what this is all about i know what it's all about it's a little crazy. you look great go ahead. >> reporter: i know. thank you so much. hey, kelly yes, i'm more scientist than food connoisseur, but there's a

reason for that. we're the first tv crew allowed inside the new manufacturing plant. take a look at the meat here on the assembly line. this isn't real meat it's fake meat it was actually made a lab the company's founder, he's a former stanford biochemist and he created this in a lab the active ingredient is soy ho hemogloben they're scaling up in a big way. this plant is going to make 1 million pounds of meat a month, filling up 250 tons over what it used to produce. the company's backed by bill gates, it's just one sign of the food substitute market blowing up reports as a whole the food and beverage industry saw a record number of deals the second quarter and food companies like impossible foods, memphis meats,

are driving that growth. with impossible foods, some environmental groups are wondering if the soy is safe to eat. fda also reportedly has concerned over whether or not it's an allergen the company's ceo tells us they have vigorously tested it and their burgers are safe to eat. kelly? >> all right aditi, thank you very much aditi roy. i know that was a little hard to hear so just keep an eye. impossible fields. going to see it at all the trendy places. it's made with -- i don't know. >> if it's go ing ing to be in e trendy places, we're not going to see it. >> only you. not any and mike. vice president mike pence is appearing in his home state of indiana to talk tax reform as house republicans prepare to reveal their plan next week. ylan mui joins us with those highlights hi, ylan. >> reporter: kelly, the vice president wrapped up his speech a few minutes ago. he said that the administration still wants to see a tax bill

get done this year, but notably the vice president talked about tax cuts instead of tax reform so that does include lowering the corporate rate >>. >> our tax code has given foreign companies and enormous competitive edge over american businesses and those days are over and president trump is going to sign before the end of this year a tax cut that will put american workers and the american economy first. >> reporter: vice president also addressed republicans' last-ditch effort to repeal obamacare. it was unclear if he was aware that senator john mccain has come out against this bill but he said the white house won't be giving up the fight. back on tax reform, the vice president also called out senator joe donnelly, indiana's democratic senator, saying he hopes they can work together to get tax reform done, guys. the white house will be keeping up the pressure on that senator. president trump is scheduled to

make a trip to indiana next week on the same day that they release their tax reform plan, kelly. >> all right ylan, thank you very much. ylan mui. mercedes is taking a swipe at tesla with its investment in electric vehicles. ceo of mercedes u.s. will join us next. coming up on "fast money" they have a top technician seeing trouble in big tech calling for a big breakout ahead for one faang stock. he'll reveal that name next hour the things you own? or the people that fill it with meaning? for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions. protecting what's most important to you. that's the power of pacific. ask a financial advisor about pacific life. steve, other than making me move stuff, i'm here at the td ameritrade trader offices. what are you working on?

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mercedes-benz is investing a billion dollars in alabama to produce electric vehicles. the company also plans to add 600 new jobs the company already employs 3700 workers.

will this pay off? joining us with mercedes' ceo, jason hoff, thanks for joining us thanks, kelly, for having me >> countries like the uk, france, and china all say they're going to ban combustion cars over the next decades will we have any choice as consumers? is this all going electric >> i think customers will still have a choice between electric and gas vehicles our goal is to stay flexible for either one, and that's what we're doing with our investment in alabama >> your goal is by 022 to offe every model in traditional and electric for mercedes? >> absolutely, we'll have over 50 models that will be electrified with some form of electric, plus some new

completely electric models and have that by 2022. >> mr. hoff, when a company like mercedes invests a lot of money, they create base cases you guys must have a base case for how you see the transition over the next 10 or 20 years, how much will be gas, how much will be electricity. can you share with us the contours of your base case are you talking about being the majority electric vehicles in 20 years? are we talking 50/50 share with us some insight into your base case scenario. >> some of our midterm horizons show maybe 15 to 25% being full electric i would say 20 years, it's hard to predict if i could predict, i probably wouldn't be sitting here right now. some of our midterm predictions, 15 to 25% range. we believe it's critical to stay flexible in our operations to make sure we can basically react

to which demand comes, either the gas or full electric >> jason, could you project where you expect you'll be in terms of when there are no perceived tradeoffs in performance and convenience from electric versus combustion engine obviously you have to make some of those tradeoffs today >> you do have to make some of those tradeoffs. one of the big issues everybody is working on is infrastructure, when it comes to electric vehicles, the ability to build a charger vehicle, and also charge your vehicle in a quick amount of time. today we go to a gas station and fill up our car in a couple of minutes. right now when you go to charge your vehicle, union you'you knoe looking at 20 to 30 minutes at least to get a charge on the vehicle. those are the tradeoffs we're still working on and really the whole automotive industry is working on >> does it matter to you guys who wins the senate runoff race in alabama >> no. we have great people in alabama

who have supported us from the get-go we'll see who wins next week either way, the state has been great, it's been a great investment for us and i'm sure it will be in the future too >> jason hoff, thank you very much, head of mercedes u.s > we'll read some of your messages when we come right back t how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

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welcome back let's close out the week with the promised closing bell mailbag. look at that pretty graphic too. i wish the mailbox was like that anyway, the walmart in-home delivery story, brent tweets, sure, come in my house to put groceries in the fridge and put laundry in the washing machine while you're at it june comments, nowadays though it's sad, i would never feel safe with an in home delivery, that's why i have kids, they can get it for me. ckfred e-mails, maybe the issue wouldn't be the delivery person causing problems but it might be a way for others to gain access. >> it does come along with a surveillance and security thing, that's bolted onto the service >> it feels like those things

will have to become as common as door bells what other way is there ultimately going to be to accept packages would you let people come into your house to deliver packages >> i do, but i live in an apartment in new york city there is a suburban dynamic. >> are you talking about a doorman? >> no. if you live in a new york building, it's a doorman building a lot of times, you let people in to deliver things to your apartment >> they're going to come in and put the milk in your fridge for you if you order it from walmart. >> it's a step inside an apartment they already have access to. it's not that big a deal for people in the suburbs, this will be a bigger issue when you're not in a secure building. but i'm sure the class action lawyers of america will come up with innovative ways to both make this happen or not happen >> michael, what do you think? again, a lot of people now have kind of come up with the solution of, okay, if i get

packages delivered, leave them on the doorstep, hope for the best, maybe you have one of those ring surveillance systems. if you're going to go that far anyway, this would give you a one time use password. you would have some accountantable for who is coming in there >> in so many respects we've rethought privacy in exchange for convenience. obviously there's safeguards along with it. if ordering everything and getting everything delivered on demand throughout the day, essentially including refrigerated stuff, this is probably the way you have to go. >> fascinating speaking of which, that was a walmart announcement today, of course they're trying to take on amazon kroger is at 3 1/2 year lows mattel closed at the lowest since may 2009 >> the kroger thing, how about that story in "the wall street journal" about aldi. >> costco has 6500 excuse. i didn't realize it was that

small. >> the retail business will continue to be -- it's going to be a graveyard for companies including aldi, probably >> at least we found out what the company got its name from, the last name of the family started with albrecht and "d" was for discount i needed to know thank you, everybody, have a great weekend. that does it for "closing bell." "fast money" starts right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm mediclissa lee. chip stocks are on fire. there's one name in this space going even higher. we'll tell you who you to play it plus, no lines, no problem scant lines at the apple store today. it might not matter for the stock. the chart mastery is here. he sees one name about to break out, the name and how to play it first, the industrials gone