>> what are you saying the subhead is they're questioning whether or not the -- >> they question themselves. economists, you got to have more conviction in yt cover. >> that's wimpy. >> question marks. >> come on. >> the tother two-hand the economists on one hand. >> thanks for watching "power lunch. >> "closing bell" starts right now. hi, everybody. welcome to "the closing bell" on this friday, i'm kelly evans at the new york stock exchange. >> it sfriis friday, isn't it? tgif i'm bill griffeth. s&p under a little bit of pressure today after six consecutive record closes which, by the way, was a 20-year record we'll see whether the market can make a comeback. in h this final hour he said optimistically >> it's been a hot first day of trading for the data center ipo called switch. that says the treasury suggests cutting down on disclosures for public companies

switch shares up about 24% this afternoon. we'll look at whether that treasury move could help juice the market for ipos coming up. meanwhile, the new "blade runner" sequel hits theaters this weekend we're going to look at whether this film can revitalize the struggling box office. lot of fingers crossed in hollywood here as they bring harrison ford back one more time. we'll see. good luck. hope it works. let's begin today with a jobs report, though. eye-opening number hs this morning. our senior economics reports steve liesman joins us from austin with a breakdown of those numbers. steve? >> reporter: yeah, bill, you had to cast your eyes down on this number here. but what's happening right now is people are really throwing out the weak number on the top line and looking to the details of the report and they find strength here. let me show you what they're talking about here the top line number minus 33,000 quite a bit below the 80,000 estimate you have the revisions to the prior months which were okay

they look like they're big, one of those numbers was plus 250. most of that number remains. that was good. average hourly wages, very strong the unemployment rate, ticking down patient rate, ticking up more people coming into the workforce. economists found strength in that plus we know a very big hurricane effect, hurricane havoc in these reports here's some of the data. you can see here that the number of americans that worked part time due to weather, 2.9 million. nose who didn't work at all due to weather, but have a job, 1.5 million. the most in 20 years then leisure hospitality, maybe that's universal and disney world, down 111,000. who got work the insurance agents got work. that was up by 1 11,000. at bmo, saying, "the underlying strength in the september jobs report will encourage the fomc to lift policy rates in december." maybe, maybe not first, let me show you what robert kaplan this morning in an exclusive cnbc interview said about the jobs report right after it came out.

>> i think a lot of these job losses, our judgment will be temporary. i think labor markets are tightening, yes. i'm not saying there isn't still some more slack, but my judgm t judgment, i think labor markets are tightening >> reporter: so tightening labor markets you think capital would be somebody's ready to hike rates. not so fast. kaplan is troubled by the low inflation numbers and suggests maybe there's a disconnect now between higher wages and inflation. he's not so sure that it's time to hike rates. he said he's still on the fence for that december rate hike. kelly? >> sounds like larry agrees with him. >> wow, was that like a fall i heard there? >> stay right there. mr. larry kudlow is sitting here next to us with more reaction. >> kaplan and kudlow was this -- was mr. kaplan's idea that the connection between wage rates and inflation, is that breaking news i mean, yellen -- yellen in her speech two weeks ago said it hadn't worked in 20 years. my only difference with miss yellen is it hasn't worked in 40 years. that's all i'm glad wages are --

>> larry -- >> it's not inflationary. >> reporter: the news is maybe not among the people such as yourself who have been so smart for so long but among policymakers who have begun to think about this whole idea here of whether or not this phillips curve, connection between wages and inflation is really working and there's more doubt about that than i've ever seen everybody should read the speech from brookings yesterday or two days ago, he said, you know what, with e don't have a fo formula for predicting -- larry, i know you have a different way, you can take the floor or argue on that. >> i'm glad the fed is coming to its senses i think the economy is improving. i think the wage situation is improving. labor's improving. on the other hand, the dollar is at a seven-week high. i think this whole thing has better growth underneath it. i kind of enjoyed the household number 906,000 people, the household number that's a little weird.

i just want to say one last thing, before the others chime in, you're asking different questions. the payroll number asks, did you get paid this week the answer is -- >> right good point, larry. >> -- because of the hurricanes a lot of people didn't the household number asked you, do you have a job? so the answer to that is going to be yes, we have a job, and more people are now moving back into the labor force so, "a," that's good, i'm glad we -- >> a little pop there. >> people are happy, prosperous and working. that's trite "b," i think the fed should be looking at the rise in the dollar much more interesting to me. >> and doing what about that, larry? >> i think the fed ought to claw back what it can here, larry i think that's an important thing here if the fed has an opportunity, without disrupting markets, without disrupting the economy, to get a little ammunition for the next recession, if the fed has an opportunity to normalize, that makes a lot of sense to me. >> i might agree with that i might agree with that. i just want to note, though, that you have a strong dollar

and very weak gold price commodities are up and down, very mixed commodities on the whole, probably up a little this year with the rising dollar, not as much i don't want the fed to panic over this wage number. that's all i'm saying. >> we may be at a seven-week high at the dollar index at 94 but started the year at 102, so, you know -- >> i get that. >> we've come down precipitously in the last year. >> look, i get that. in 2011 or 2012, the dollar index was 70 okay so, you know, we're not pegging the dollar to gold as i might prefer, some commodity basket. all i'm saying is here's the biggest picture of all the economy is getting better. look at the isms huge >> yeah. >> equates to almost 3.5% growth look at the cap x, core cap x from the factory orders. improving major, bigbig-time finally i want to look at steve liesman's cnbc optimism index on the economy. that thing continues to grow

if we put it all together -- >> are you bold on the three rate hikes next year, is that what this comes down to? >> i think it's a good news/bad news story there i think there's a good news/bad news story there for markets the first one is, they're onboard with those three hikes we had patrick harker yesterday from the philly fed saying so. at the same time we have this notion from the federal reserve, the end point, the terminal rate is lower than we thought so we had ckaplan this morning talk about a 2.5% fed funds terminal rate. that would be lower by a factor of, i don't know, two or three times than previous terminal rates for the federal reserve. so jour goi so you're going to spend time getting there, have disruption in that but the end point is not so high. i think that's something to think about. something, by the way, that calms the market remember the market is discounting those future rate hikes. it's discounting the terminal rate to some extent and it's not finding a whole lot to really be upset about in those numbers. >> and don't forget, don't forget, so few fed people get, fiscal and monetary works together okay

now, my crystal ball may not be better than anybody else's, but i will just say this, as we are here on friday afternoon, there is growing momentum for the tax cuts by year end the budget committees are reporting out budget resolutions, which will then next week be translated into reconciliation instructions. there's going to be some babbling over some small elements in the tax package. i may be dead wrong here i'll just say it, i think the market, stocks, and the economy and business and investment is now beginning, once again, to discount a very powerful pro-growth, pro-investment, pro-wage earners' tax cut. i love it. i think it's fabulous. >> but larry, you have work to do, larry. you have work to do because so much of the market, so many people reflexively believe something that i'm grateful you taught me, i don't know how many years ago, maybe i'm embarrassed to say this notion that growth does not necessarily create inflation. >> right. >> this is a reflexive idea and it's reflexive, by the way, on

the fed. i think it's fair to say that growth raises the risk of inflation. that is, it's hard to have inflation when growth is negative or when growth rates are declining. but it doesn't necessarily cause inflation and i think the fed is willing to wait and see on this. there's some concern, 4.2% unemployment rate, wages rising, a big deficit stimulus is something that could spark inflation. but i think there's a little bit of rope on this from the fed when it comes to reacting to the fiscal stimulus. >> look, last quick word. >> i was with you until that deficit stimulus part. let me just view petrepeat >> not the way the fed -- >> kevin warsh believes growth will not cause inflation and will be an excellent reformer if he becomes chairman. final point. these are fundamentally supply-side tax cuts they are business tax cuts they are investment tax rates. they will improve. not only do they increase the

return on capital, they lower the cost of capital and it moves right into productivity and higher wages that can't possibly be inflationary if this was a straight tax credit temporary thing, that would be demand side that might be inflationary what you're doing is going to bring up more investment and more output and more people working and more wages and this has to be great country, i mean, really, what a great country this is. steve liesman, fear not. fear not. >> and what a -- >> that's my word to you. >> what a great exclamation point to end that. >> sign me up. sign me up >> and i'm not embarrassed to say i've been learning at the knee of larry kudlow for the last 26 years, so, yes, he was my junior high economics teacher back then. thanks, guys >> that's fabulous. >> see you later have a good weekend. >> touche. meanwhile, the s&p's win streak is in jeopardy. among other streaks in jeopardy today. let's get to our "closing bell" exchange, david from hightower is with us at post 9

so is steve grasso from stewart frankel. rick santelli at the cme i'm going to start with you today because the action in the treasuries, i think, has been pretty interesting the yield on the ten year hit 240 after the jobs number came out. then there was some word about maybe north korea getting ready to launch another missile. and it went back to 235. so, very much crosswinds hitting the treasuries today, right? >> reporter: yeah, i think if north korea was never even a country, i still think it would have probably turned out the same that's just my opinion you know what, the wage component really shocked many many and it caused some selling and the dollar followed and everything reversed a bit. but, you know, if it was north korea, we're still up on yields on the day, we're still up on yields on the week, still extended comps last time we were at these yields what we didn't do is get followthrough above a key level. you know, the last two tops were 242 and 239 respectively which defines them as failures to get back to unchanged when we settle

at 2.44. i think today was a technically significant day. i think it is exactly that technicals, for many like the bond market, it's a three hday weekend,closed for columbus da along with the banks i'm surprised it didn't give more back. i think the dollar index a bigger story i know larry's right seven-week high. yeah it's also down 8% on the year. to me the dollar index is one of these weird anomalies where there's so many moving parts not the least of which is overseas and relative value with other currencies kind of hard to get the gps there. think october 26th, ecb meeting, will give us a lot better view on what the dollar is gong to look like by year end. >> no matter what, steve, you're saying buy this market is that right? >> if you look at, you know, to rick's point, a lot of this stuff is on a technical basis, how things are trading, but the path of least resistance still to me is probably higher we have a bunch of round numbers here 25.50 in the s&p cash, have a lot of people staggering up there, a lot of open interests so to speak. also jobs.

today. caused the rate worry. then you have north korea. caused the geopolitical tension. you have is people wanting to take profits because they don't want paper gains to turn into real losses. all those things put together, we've seen them all. we seen this act before. and the markets still rallies. so, while i think that the tax policy reform is going to take a lot longer than people think it will, i think the market should be bought because that's what's happened in the past. >> david, i know you are the guy that likes the dividend payers, but what do you do with that strategy as rates continue to creep ever higher? >> i want more of it because it's the best strategy to defend against it you want growth and you want risk on but the reality is that the best insulation against growing rates is something that can actually grow its rate it can pass on inflation because it has pricing power i see mcdonald's as one of the dow stocks leading today mcdonald's is my favorite example to use here, they raised the dividend something mike 16 sometimes since the financial crisis it tripled guess what the stock price has

done it's strip lblank bla tripled. if there are not higher prices at mcdonald's's there's no inflation. becomes a permanent area to play offense and defense. make tactical adjustments along the way. we love the strategy i have to say real quick, kayen no tell you what a blessing it was to sit here with larry kudlow, one of my best pals. to hear everything he had to say about the death of the phillips curve was inspiring. >> i will say, if i'm not telling tales out of school, you were applauding. >> i was tearing up a little bit. >> a little bit there, yeah. >> i don't want to put a damper on thing, steve, i want to ask before we move along about the president's comments about the calm before the storm. i don't know -- on a different kind of day, the market psychology might have reacted to that differently it appears to be shrugging it off. >> we heard the fire and fury, that comment, too, and the market is becoming a little desensitized to a lot of these different things i'm not saying the market cannot sell off because i'm not painting this picture that everything is rosey.

but when we do get selloffs, they're shorter in duration, and they're shallower than they were before so that leads me to believe that if you're selling this market off of a jobs number that's going to increase rates, you have to look at this number is probably going to be thrown out. there's too much noise from the hurricane. >> look at the dow's only down 15 points right now. >> it was down eight points a moment ago yeah threatening to come back we'll see. i'm building a little drama here before we get to the close okay h thank you, guys. have a good weekend. everybody, and rick, have a good three-day weekend there with the bond market closed on monday >> thank you much. >> we'll be here watching this market. >> that's right, we're not going anywhere. >> i'll be watching. >> for nomonday we have 45 minutes to go before we get to that the dow down 16 points. s&p down five. russell down three small declines across the board compared to what we saw earlier today. coming up, costco beat on earnings and revenue after yesterday's close as we told

you. why is the stock one of the worst performers today we'll explain this nearly 6% drop next. also later we're going to tell you what prompted an executive from general motors' autonomous vehicle unit to call tesla boss elon musk, quote, full of crap they didn't think i'd say that di i did. we'd love to hear from you folks. reach out to "closing bell" on twitter, facebook, or via good old-fashioned e-ilma you're watching cnbc, first in business worldwide is the monolithic view of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha.

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shares of costco down big today. 5.7% tumbling after reporting earnings after the bell last night. the wholesale club posted a beat on revenue and earnings, but a decline in the ever-important profit margins and that's putting pressure on the stock, and sparking concerns over membership. and an escalated grocery price war. you saw that down almost 5 -- well, almost 6% now. >> big move. >> yep. >> for costco. the pressurery rtreasury ra report today

kayla tausche is in washington with those details >> reporter: kelly, part two of four of treasury's regulation rethink. today's report largely with those markets regulated by the securities and exchanged commission and the commodities and futures trade commission and it delves specifically into ways regulators could make it easier for businesses to go public and find investors. the report calling for loosening public company disclosure requirements for conflict minerals and pay ratios to name just a couple. it also calls for raising the threshold for what they call smaller reporting companies which have rules to $250 million in share float to $75 million. it suggests widening the universe of who's considered an accredited investor and letting more people participate in private fund raisings, for crowd funding in particular, treasury suggests an increased fund-raising limit of $5 million. when asked whether this would mean private companies would have to share more information

with those investors, a senior treasure tri official said no. critics called it a gift to wall street today exchanges, though, echoed the natural enthusiasm of the trump administration nasdaq ceo tom whitman says it looks forward to working with the department to support the objectives outlined in this report and revitalizing our economic environment. treasury cites data that show a 50% decline in publicly traded company over the last 20 years and says through this report that deregulation, kelly and bill, is the way to fix that >> we will see kayla, thank you something to think about there let's bring in bob pisani to talk about how this could affect the ipo market as we know more companies are choosing to go with a private equity route. is it because of the regulatory scrutiny that they face otherwise? >> well -- >> that's been going on forever, anyway. >> a long time look, the ipo bubble was in many 1999 and 2000, and everybody compares it to that. that was the bubble. actually and so it's not really right to do that. look, everybody's in favor of reducing regulatory burdens like you are, i am, of course

but reducing requirements for public disclosure of companies going public is not a good idea. the s.e.c. should be out looking for the interest of the little guy who needs to know more about these companies, not less. look what's going on where two cdo you get informati the companies? that s1 that comes out is the only source of information for anybody. >> i think it's an awesome point about comparing it with the absolute peak of these filings, suggests that appears normal, steve, but if you go back to that time, was it -- is the process today largely the same as it was, is the drop-off caused because it's much more onerous? >> unquestionably more regulatory requirements. some of it i think can be streamlined. for example, one thing they want to remove from dodd/frank is this requirement about ceo compensation and median employee compensation you know, the ceo makes 600 times more they don't want them doing that anymore because it's embarrassing to wall street. that's not a regulatory burden that's just the street doesn't like that kind of thing because

it's seized upon by people who are activists to say look at the weird compensation irregularities i don't think that's a regulatory burden. i think that would be an interesting thing for people to know about my point is this, you want to buy an ipo, i cover these ipos, did switch today >> right. >> how do you find out if it's worth owning if you restrict the information more and more because the companies don't want it out, you make it harder to make an intelligent decision. >> then you have this quarterly treadmill you find yourself on which so many ceos are chafing at evan speegen, fiegel for one th. them going public. what this stock's performance has done since that time he calls it this get acquainted period that wall street is still getting acquainted with their company here >> find a better message for wall street. instead of saying, you fools out there, you don't understand my company. >> right, exactly. >> if you understood my company, you'd know how great we are. maybe they ought to do a better job explaining that. i'm sorry. i don't have a lot of sympathy for that >> one thing i wonder --

>> i wouldn't mind longer-term thinking on the part of investors in general i accept that. it's a valid criticism the story's got to be told better. >> there was a funny little report not long ago, though, that suggested the total number of downloads of a company's quarterly or annual filings was in the low -- high double di digits, low 100s within the first 24 hours if you're going to the trouble of downloading these things, the pages and the word count have exploded so much that even the most dedicated of investors almost can't possibly wade through the thicket especially because it's got all this regulatory gobbledygook in it. on that point -- >> i would agree with that. >> absolutely sympathize with the little guy saying, wait a minute, i'm try to understand how this company works and can barely get that from this morass of documentation. >> yeah, who said memos are not written to inform the writer h they're written to protect the reader to inform the reader they're written to protect the -- i got that around. >> certainly true. >> the lawyers write it to protect themselves against potential lawsuits there might be ways to make it

easier there are companies out there that do do that and try to explain it more simply we do that in the simplest kind of way we wade through these things and try to make it simple. here's my point. where do we go, where do our viewers go to find out about these companies? forget going to the analysts the analysts community has fallen apart you know that. since the settlement with spitzer in 2002. nobody covers small cap companies at all. >> people would argue that's part of the regulation. >> where do we go to get more information? i want more information, not less, and i'm sorry we should find ways to streamline things. >> should we get rid of reg fd let them talk? >> there's been around a long time >> there's a good reason why that exists. that means you can't talk to one guy and not everybody else that's what reg fd means, by the way. >> more information is better than no information. i agree with you thank you, bob see you on the close bad news if you are driving a nissan in japan made in the last three years the automaker wants all of the cars back. >> that's crazy. >> i'll tell you what's going on there next. also on this jobs friday,

the employment number may have been down but job are looking up in the world of block chain technology and it is more than just bitcoin. congp jthg to show you at mi uinust a moment here. s a stry i'd recommend. huh. this actually makes sense. now on the next page you'll see a breakdown of costs. what? it's just.... we were going to ask about it but we weren't sure when. so thanks. yeah, that's great. being clear and upfront. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing. ( ♪ )

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well, oh, that is the video. i thought it was still the commercial nissan motors recalling all, underline all, new cars sold in japan over the past three years after the company discovered final vehicle inspections were

not performed by authorized technicians. so this recall impacts 1.2 million cars sold between october 2014 and last month. that's a lot of cars also, another automotive news, an executive at general motors is calling out tesla's elon musk for claiming that tesla cars already have the hardware needed for full seclf-driving capabil y capabilities scott miller of general motors reportedly told a group of journalists that musk is, quote, full of crap for making the claims tesla told us today they have no comment on that. >> they have been getting a little more heat about their claims for self-driving cars goes back to executives who were once involved with the unit and left the tragic crash that killed a driver who was using autopilot at the time and this idea, there's i think five level -- it's, like, s1 through s5, there's five levels of autonomous driving and there were rivals who said there's no way that tesla reached level 5 when even the best in the

business have reached level 3. so they perhaps still have a lot to answer for. >> yes, but let's not forget there is no love loss between detroit and tesla. >> is there's not. >> they just, you know, he's gone so far outside the box in many cases with the automakers. >> if you can't beat them, join them. >> well, yeah. >> gm's cruze division, also in this, had six reported incidents between its own self-driving cars in california last month, and pedestrians and in phoenix, uber may now be rolling out self-driving pickups commercial pickups in very short period of time so this is -- we're gong to see this right on the street that's why people are so agitated. >> he may be full of crap but he's pretty smart, too, at the same time. that's for sure. there, i said it again. time for a cnbc news update now. here's sue herera. hey, sue >> hello, guys here's what's happening at this hour investigators are trying to nail down whether anyone else was in las vegas shoot eer stephen

paddock's hotel room while he was registered there this is can why they're curious. a charger was found that doesn't match any of the cell phones that belong to paddock and garage records show when his car left the hotel garage, one of his key cards was used to get into his room. crews are repairing the windows at the mandalay bay resort which paddock broke as he killed 58 people those holes served as his vantage point when he opened fire on the thousands attending the music festival below. 16 people were killed when a train slammed into a bus that had broken down at a crossing near moscow. the bus was carrying migrant workers from uzbekistan and was hurled several hundred feet down the track. and the financial services company that put the fearless girl statue on wall street will pay $5 million after an investigation found that it underpaid female and black executives the state street corporation denied any wrongdoing, but wil pay the amount as part of a settlement with the department of labor

you're up to date. that's the news update this hour i'll send it back downtown to you. kelly? >> all right, sue, thank you very much. our sue herera i'm here with peter costa on the floor with less than half an headquart hour in the trading session this week dow down 15 points after the jobs report. what do you make of everything >> the jobs report, a lot of people were expecting in to be bad, as far as the jobs number and it was worse than that that was a little disappointing but i think web you look back on it, and you look at the wage growth is starting to pick up a little bit, which is good. and then the, you know, say it again, participation rate is starting to fix up as well and i think that's very important. so, you know, that being said, now you look at it and say, what is the fed going to do now that things are starting to pick up and, you know, i think that we're probably looking at a better than 60/40 chance that they're going to raise rates in december right now. >> and for a couple time next year, the market is slooki ingst the ten-year yield moved higher.

going to ask you as we head into the weekend about the comments from the president, the calm before the storm we've seen it on fridays before, i don't want risk on the table depending what he was alluding to. >> if people were concerned about that, the market would have sold off a lot more what we had this morning, you know, we've seen this, this underlying strength as the market's moved up. it hasn't moved up in a spike, it's moved up in this long, arduous journey up and i think whenever it comes back in, there's always some sort of support. just right under the market. you know, with those kind of comments, you would think that, you know, maybe i do want to take some risk off, but we're really not seeing it you know, the thing is about north korea, i just feel that people aren't taking it serious will enou enough i think there's something there. we need to be very cautious about it. >> it's hard because if you take it more seriously, i don't know what outcome that leads you to, the bunker in the -- >> not saying a bunker but i think people as far as investors are kind of, like, discounting that this might be a one-off situation. well, one-off with, you know, a terrorist attack, god forbid, is one situation, but a one-off,

any kind of attack from this guy, is not just a one-day event. it's a much longer period of time >> that said, seem to be taking it in stride here. we'll keep an eye on it. peter, thank you peter costa. bill >> i hear some homes still have bunkers in their backyard. >> yes, they do. no comment >> anyway. bitcoin and blockchain, they're often paired together. the blockchanin technology is nw expanded to packagedoo a gdsnd safety it's opened up new job tnt opportunities. we'll tell you where they are when we come back.

my name is jamir dixon and i'm a locate and mark fieldman for pg&e. 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. well, you've heard us talk about blockchain as the public ledger of cryptocurrency transactions dou could it be the next big thing for job creation kate rogers has more today on where those jobs are kate >> reporter: that's right. many people do associate blockchain with bitcoin. companies like ibm are using it for so much more, in fact, they're looking to bring on an additional 150 new employees as they continue to implement the technology some analysts say could be as transformative as the internet, itself ibm is betting big on the future of blockchain. the company is putting the technology to work in financial services, retail and transportation streamlining e i

operations for customers. >> when you think of making the complex very simple, that's what we look to do. in both technology and business. >> reporter: in fact, clients are now coming to ibm to figure out how to implement blockchain. they're currently working with some leading food suppliers like walmart to help address food safety challenges. >> it's still a complex network getting, let's say, a mango from the farm to the fork there's lots of exchanges in there. and right now, that causes lots of challenges and trouble with regards to that food safety. >> reporter: ibm is also looking to add more talent to its blockchain ranks and having a background in this technology isn't necessary. >> what we look for are people who are ready to move quickly, think creativity, and be very close to our clients because in the end it's meeting the clients' jut comes with blockchain, not blockchain mindimind i finding an answer within the client. >> reporter: having a degree in computer science or coding is

helpful but it's not necessary if you do want to pursue a career in blockchain ibm is investing more in what it calls new-collar workers, those people may have just come out of the military, for example, or might not have a traditional four-year degree and they're training them for the right skillsets that they need to pursue that career in blockchain right here on site, guys back over to you. >> you know, we can be quite cautious about bitcoin and the future of the cryptocurrency, whatever its valuation is, kate, but this seems like such a cool thing to do if you're interested in that and also can get skilled in it. look, maybe you can help with the simplification and cost of buying a mortgage, buying a home down the road, too >> reporter: yeah, absolutely. the implications are just so far, far-reaching, but really the ibm/walmart partnership is a great example. they're saying basically they can narrow down food safety and transparency in that system from something that used to take a week to trace a mango, for example, from farm to fork in just seconds now that in and of itself is really

astounding can't wait to see what else the use it for. >> yeah. >> me, neither way over my head. >> he'll stick to blackberry. >> this sounds like six sigma from the '90s. i'm serious. >> no, it's nothing like that. >> okay. >> that was like a managerial trend. >> well, yeah. >> this could -- >> this is a logistics kind of thing. >> this is the transaction of documents and -- i'm not going to make a good pitch for this right now. >> i guess i need it down to two or three sentences. then i can understand it thank you very much, kate rogers >> thank you. >> see you later. over to bertha coombs for this quick market flash. what's going on? >> we've been watching the retail pharmacy space, our chrissy farr at cnbc.com with a report saying that onamazon is going to make a decision sometime next month on whether it's going to go ahead and get into the pharmacy business it's weighing on rite aid, on cvs and the retail pharmacy folks because that would

certainly sweigh on their cash market where people pay 4 bucks for generic. we're seeing a knock-on effect on the suppliers as well because amazon as you know is known for driving a hard bargain and driving prices lower back to you. >> wow bertha, thank you very much. we got another market flash this time from meg tirrell, what now, meg >> hey, kelly, wooelooking at se of flexion therapeutics, up this afternoon on fda approval of the company's arthritis knee drug. digging into why they're giving back some of the gains they're getting the positive nod from the fda on their drug back to you, bill. >> wow, we've had so many companies that the have popped on these fda approvals this week, right? >> yes . >> it of course, milan and teva. there had been delays of the fda waiting for the drug to get approved flexion, it's interesting that it's giving back some of the gains.

david marist at wells fargo highlighted this is a big event for them. >> thank you, meg. >> thanks. >> see you later have a good weekend. >> you, too. >> heading -- what >> biotech up 2.6% this week. >> there you are. we got 19 minutes left in the trading session. yes, it looks like some of these win streaks may be coming to an end today for the dow, the s&p and the nasdaq the dow right now down 16 points you know, back in h 1982, harrison ford starred in a futuristic film set in the year 2019 that featured flying cars, android robots and never-ending rain here we are in 2017 and that world is still far off, but a se sequel is not. up next, we'll see if the much awaited "blade runner" sequel can re-energize hollywood's box office woes this weekend. are twitter and facebook about to get sacked by current and former nfl players a new platform has launched and is attracting investors and football fans tired of social media trolling we'll have the details sait

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after a summer slump at the box office, hollywood is making a big bet on a "blade runner" sequel this weekend. julia boorstin has the latest

for us high expectations here, julia. >> reporter: absolutely, kelly it's been 35 years since the original "blade runner" and now harrison ford is back, along with ryan gosling, in this long-awaited sequel. it already brought in $4 million last night according to comscore putting it on track for about $50 million at the u.s. box office this weekend. with fandango presales outpacing a number of massive fall movies including "the martian," "mad max fury road. 88% critics rating and 90% audience score on rotten toma tomato tomatoes, hopes are high this movie will revive the film ran chiz budget, $185 million, a big bet for sony which reportedly financed $90 million of that and distributing the film internationally. warner brothers, distributing the film in the u.s., having released the original as well as for producer alco n entertainmen backed by fedex founder fred smith. the big question for other studios as well as feeder

companies whose stocks have have been hammered this year is whether this will help turn around a struggling u.s. box office ticket grosses in the u.s. are still down over 5% this year mkm analyst eric handler predicts the fourth office box office will grow 9% if not more over last year with marvel's "thor" sequel" and "star wars last jeti" coming up. >> i keep thinking about another harrison ford franchise, when we were all waiting with bated breath for another "indiana jones" movevy then that movie come out and just sucked >> well -- >> so this one is getting a better rating ahead of time. >> reporter: this one is getting really -- >> is that the idea? >> reporter: this is getting really, really positive reviews. i think the bar was really high for critic for this one. remember when the original movie came out so many years ago, it wasn't a massive overnight success but really sort of a

slow-growing film that grew, sort of became a cult favorite as well as a big favorite with critics so the bar was high with critics for this one, critics seemed to love it. it soupnds like it's really goo and the kind of thing that could resonate right now i for one am going to see it this weekend. >> put a special note at the bottom about how good a movie was and it was about this "blade runner" which i keep getting confused with "back to the future." >> that's a whole different thing. >> thank you, julia. >> you explain blockchain to me, i'll explain "back to the future" to you. confidence self-assured, those are words to drive david darst, there are many others, though it characterizes his market theme of the week. we'll have that coming up next here. later, current "jeopardy" champ and new york city barte bartender takes mike santoli on in a very special stump santoli segment. >> i can't wait for that.

>> me, either. >> he can wait (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

ten minutes left in the trading session here with the dow down 20 points and joining us is world traveler, david dart everywhere from idaho to capri, i hear, you've been in the last several weeks.

>> and i have missed you guys like crazy i've missed here. >> now, your acronym for us this week, it's not exactly top of mind, that i can tell. >> no. it means for investors to stay poised, to stay balanced okay, and ready to move and pay a little bit more attention right now. >> so what's the -- >> all these records -- p-o-i-s-e. "p" is politics, "o" is oil, "i" is interest rates, "s" is small caps, "e" is earnings. >> okay, thanks for joining us, david, enjoy the rest of your weekend. >> i love it the politics are obviously the passage by the house of the budget resolution. which sets you up for the senate now to take up the tax reduction. and the markets seem to like that politics is also catalonia and iraqi kurdistan and the 19th congress of the communist party on the 18th of this month. so those are in the politics the oil is saudi arabia and russia meeting together.

the leaders of those two countries. the very first country to recognize saudi arabia was russia back in 1923 when they put together the kingdom. >> wow >> there will be an opec meeting on november the 30th the feast of st. andrews and the oil, i think, i've said this before here, it will trade between $45 and $55 about 80% of the time for 3 years and it's done one year like that. so i think people can think about that as a working scenario >> okay. >> the "i" is interest rate. you've got october 31st, november 1st, the fed meeting that will be the next fed meeting but people are looking to the december one for interest rates to raise to me, the new fed is the consumer price index and the producer price index if it goes up, people think the fed's going to raise interest rates. in it stays muted and we'll get readings on both of those next week, as you know. >> right. >> the "s" is small caps since september 7th, they've really taken off

you've taked about it on the show here many many nights >> right. >> the russell 2000, small and mid-cap stocks up about 9% for the year now closing in on catching up with the s&p 500. and small and mid-cap banks are up 16% since september the 7th then we have the "e" is earnings >> right. >> and earnings started out a few weeks ago, i said they were going to be up about 6%. now the number is 2% why? insurance losses from the hurricanes >> wow. >> so, but the last four september quarters, the quarters that we start recording now, the last four have always been 4% like the estimates versus the actual the actual comes in and beats the estimate, so if it's 2, it will be 6 then you got a 10, , an 11 and 10 this is a good time. if catalonia causes europe to sell off, buy europe that's where -- >> well, spanish markets sold off first thing this week then

came back big-time. >> that's correct. you're going to look, next week is going to be consumer prices and producer prices. >> okay. very good. >> thank you. >> wow taking a rap >> thank you for having me. >> having a lovely weekend david darst. >> you are the best. >> thank you so much. >> we will take a quick break and come back with the closing countdown. after the bell, we're going to talk about catalonia, highest gdp of all the regions in spain. as we know if it were to declare independence on monday, we're going to explore what would happen to spain its economy. we have two experts on the region to offer their insights you watching cnbc, first in business worldwide. >> very poised where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person,

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don't get mad (bell mnemonic) get e*trade and get invested coming up to the last two minutes of trading for today and for the week and it looks like a string of consecutive gains is going to be broken today the dow had been up for seven con sec -- seven consecutive trading sessions the s&p had been up for six consecutive trading sessions and the nasdaq up for eight consecutive sessions and the stri string is broken all good things must come to an end. you have to admit a very strong start to the fourth quarter for 2017 with the kind of gains we saw this week. ten-year yield cross currents up strong in terms of yields, 2.40 this morning on the wage component of the jobs report then after that russian government official who had been

to pyongyang said that he heard that north korea was readying another missile launch, back down the yields came on that safety trade and we're back to 2.36 there yields are creeping up crude oil, down sharply today. so it's the first down week we've seen in after four consecutive up weeks for crude oil, back below 50 which is considered a pretty key level for a lot of players bob pisani, on the vix, i heard dom chu say the vix has been below ten for 53 days this year, not consecutive days but 53 days it's been below ten this year. >> i think we're beyond commenting about what it means, if anything. it's obviously not moving the markets. >> not moving. >> it used to be signs of market topped it's certainly not anymore. >> at least not yet. >> i would just note, mr. powell from the federal reserve said the market response to the jobs report was very nonchalant those were his words that were used maybe. just want to note, though, next week, all the banks are reporting earnings

it's very typical to see a little bit of bank weakness going into the earnings. that's what we're seeing. even though the ten-year yield has been very strong this week. >> thank you, bob. we'll wrap up a very interesting week for the markets look ahead to next week and if the current "jeopardy" champ versus mike santoli, if nothing else, stick around for that on the second hour of "the closing bell can the bell" with kelly evans have a good weekend, kell. >> you, too. thank you, bill. welcome to "the closing bell," everybody, i'm kelly evans here's how we're finishing up the day and week on wall street. the dow not quite in positive territory. down about six points on the close. barely dipping lower it's enough to end its winning streak brings the down to 22,768. for the s&p 500, it drop three points, down to 23,049 the nasdaq in positive territory on the close nearly a five-point gain to 65,090 that represents a new record

high for the nasdaq composite on the close. the russell 2000 down about two points to 1,510. much more on the market in just a moment. plus current "jeopardy" champ austin rogers is here to take on michael santoli in a very special edition of "stump santo santoli" you do not want to miss. joining me now, the man, himself, cnbc senior markets commentator michael santoli. >> sure i don't want to miss that i'm not. >> you're chained to the desk. you're not going anywhere. rebecca patterson, cnbc contributor. and john blank checks in let's begin by wrapping up the markets this week. 9 d dour snapping its seven-day win streak today s&p, nasdaq, snapping eight-day win streaks. the nasdaq turned positive on the bell in terms of dell laggards this week, chevron, exxon, and verizon. the leaders were intel, goldman and 3m there we go. michael, what do you make of all this >> really just a breather in

terms of stocks. yesterday we talked about how the jobs number has not been a big market mover for stocks. for bonds, yes, you're pricing in something that looks like a full employment economy. i mean, that's my takeaway right there. obviously, the storm effect, but basically the fed is back in the game the big question is, after we talk about these streaks the stock market's been on, the extreme low volatility, maybe extreme optimistic sentiment, is are we okay in thinking that the fed has told us what the path is going to be, that they're not going to have to get quicker sth that might be the big question for the next few months. >> dollar index around a seven-week high. financial t financials ten-year high basically. biotechs, that's been a place to go the home builders, sixth straight weekly gain for the first time since 2012 that we've seen that. those are the pockets of particular strength here. >> i think the dollar is a big story to watch here. hand in hand with interest rates. since we've seen yields in, that's given a new lift to the dollar as well so i think the question, mike, you touched on this, is how

quickly does inflation come back does the fed get ahead of inflation or does it let inflation run ahead of it? how that plays out is going to affect the dollar which as you guys know has a lot of indirect effects on emerging markets, on small cap versus large cap it really has a lot of things that fall through from that. >> emerging markets had an insane move this year. by the way, some of the moves unwound themselves, see there by the end of the session today the september jobs report out this morning did show a drop in nonform payrolls down 33,000. that's compared to expectations for a slight increase. the unemployment rate also dropped, though, to 4.2% the private sector payroll down 40,000 the hourly wages were up half a percent. nearly 3% on the year. john, what does this report say to you or is it a report you just have to ignore because of the hurricane effect until we get more information next month and thereafter >> kelly, one of the things that's interesting about the payroll report, you had minus 105 in loss of food and restaurant jobs. so you're learning from the hurricane effect, basically bars

and restaurants were closed. the other thing you learned is there was 10,000 insurance adjusters added back to the number so that's the real story, is what happens in hurricanes. what we don't know here is neither the household bid or the establishment payroll data includes puerto rico or the virgin islands so the thing we don't know is what happens if 2 million puerto rican people migrate to florida and the mainland, and change the dynamic dramatically now we've got nate, and we saw oil drop today we got yet a third hurricane which can go through this area and that's the real story is do we have a real understanding of how these hurricanes played out? minus 33 is really not the story here >> mike, you actually pointed out some of the job shortages we've seen in those hurricane affected areas if you look at that as a microcosm of what's happening, wouldn't suggest there's trouble in the labor market. >> not much. no you'd think the economy over time could absorb a little bit of new supply right there. i don't mean it say it's

outright shortages and companies having to go out there for bidding wars for workers but you're seeing tightness and a lot of late-cycle indicators i don't mean late cycle like it's about to end. just the latter part the big question for the markets is where's the line between an economy running hot and economy overheating? at least in pockets. you're seeing housing, home builders you mentioned, kelly, starting to run a lot of consumer sectors as well as industrials. a lot of pressure behind them. >> the technology, netflix up another 2% today in the s&p, actually, one of the biggest decliners was costco down today 6% after its earnings last night the company under pressure after a drop in profit margins and increased competition in grocery, rebecca this is a big move for this company. >> i think this is the other side of the equation so we're seeing pockets where the labor market's getting tight, you think wages are going to have to be pushed up. on the other end of it, can companies pass through the cost of higher wages into final prices technology is preventing that to a large degree and so will you see this wage

inflation passthrough that we have seen historically or does technology, which is not just retail and costco, but everything, preventing that historical link from occurring again today? i think everyone assumes it is it's just a question of what degree how bad will it be how disinflationary is the technology we don't know because we have no experience with this like we're seeing it now. >> and john, i wonder, would you -- if you're, you know, sort of zeroing in on costco for a moment, say, okay, it needs to reprice a little bit because profit margins are going to be narrower from now on is that the whole story? or is there going to be a lot more to it they also today announced they're going to do a costco grocery option two-day delivery for nonpari nonperishab nonperishables, same-day delivery through instacart they're trying to meet the marketplace. >> right, kelly, you're pointing out something that's right on the spot what's the market trying to price? what you see from our pricing consensus charts is 150 on costco is where 2017 earns where fully priced in if you're pessimistic. 180 or 190 is where 2018 earnings price correctly

so that $30 band is whether you think they're going to get the 8% earnings growth out of their company for the next year and that's really defining where stock trades for costco. so what we're seeing at 157 is the market saying we don't believe in anything beyond 2017 is going to be attainable and that gets to rebecca's point about whether they can pass through price increases, whether they can keep the traffic going with amazon growing its business in this area, and these are the kinds of questions >> is michael, the stock is down 2% >> the burden of proof is pretty high for costco when it comes to the street the trade is still at a premium valuation. always has and also when you talk about do they have to sacrifice margin, do they have to basically reprice? costco, culturally, they cap their margins. in fact, they've been criticized o'er the years they pay higher wages than necessary or other competitors they literally have capped we will not take more than this profit margin. we're not taking more for shareholders

that's been the way they run the business forever where within that is room to take nr out? >> if they start to say, okay, we're going do that, grow that, is that coming out of the consumer >> that's right. >> is that the way that they keep prices so low is to actually send that signal on to their shareholders, say, look, we're sacrificing what we could have given to you to make sure that's going fully -- >> customers are going to benefit from that. i mean, it's not that there's no way out. it's just i do think as i said the burden of proof is high when it comes to investors. >> in other retail news today, how about sycamore partners reportedly raising its biggest ever fund, to invest primarily in retail. following the firm's near $7 billion acquisition of staples reuters is reporting that creditors and landlords are breathing new life into failing retailers these days by forgiving debt and allowing them to stay in business following bankruptcy, rebecca. >> yeah, so we can't forget, despite all the mania around online shopping and i know i'm part of it, census tells us more than 90% of retail is still done in brick and mortar stores and right now we're seeing all these stocks get thrown out together if you're a private equity

investor with an expertise here and you can help them get to more of an omnichannel experience and get them a bigger online presence and operationally you can turn it around, there's probably some great values out there for the right investor. >> i was going to ask what the strategy would be. i mean, simply that the price of some of these brick and mortar guys has gotten so beaten down that you could kind of buy a few of them, consolidate, find some value that way >> sycamore is a mop-up buyer. they basically go and it's not -- whether it's truly distressed or just struggling in cheap. i mean, if you look at some of the brands they have now, they've always been in this game, hot toptopic, jones new yk and others that's what they've been doing for a long time. this is a new fund, more firepower behind the trade. >> does it suggest they have to necessarily have those companies get online right i mean, is that just a -- do you have to take for granted that's part of your future or simply, you know what, you can be okay in a brick and mortar environment. >> i think it depends on what you're selling you know, if you're murray's cheese in new york city, dear to my heart, your specialty is fresh product.

it's hard to compete with that really online. but if you're selling something more commoditized, you have is to have san online channel, even then it's not a guarantee of succe success. nordstrom has almost a quarter i believe of its sales now coming online >> wow. >> they're still struggling to figure out how to survive longer term. >> some of the terms on the debt they were being offered was, like, 12% or something in order to lend to them. john, what would you do with retail right now broadly speaking >> sycamore's got the right idea i'd do the sycamore thing. what they did, first off back three years ago before they bought belk is they hired the ceo of coach to coach them on how to deal with belk. now in with the staples announcement, they announced the ceo of u.s. foods, which is a big wholesale foods ceo, he was with a canadian food company, he's going to advise them going forward. they're clearly targeting these distressed grocers that are coming out of the amazon/whole foods play and going to learn from the staples what they're doing is taking ceos with decades of experience and putting them on the front

lines again. >> wow all right. ever be we have to go, let's switch gears real quick to switch which made its debut here closed up about 23%. at 17 bucks a share. half a billion dollars raised. it's the second biggest tech ipo of the year after snap the company operates data centers in michigan and nevada and its clients include big tech names like amazon, ebay and p paypal you'd think if a tech ipo was going to do well, it should be one like this. >> in a pretty good spot within tech it they have an interesting story in terms of sustainable energy powering data centers essentially, better cooling and talk about essentially having a better mass trap in terms of how much computing power you can run through these things it's profitabilile already there is some debt it's not a real startup. >> is it the kind oof thing that's going to open the flood gate to ipos >> it's pick and choose. we're in the market if you check off enough of the boxes, the deal will work. >> all right rebecca patterson, john blank, thanks for joining us this

afternoon. >> thank you. >> appreciate it. when we come back, the crisis in spain. political tensions have been heating up all week with catalonia's parliament on the verge of declaring independence we'll look at the potential fallout for the country, eu and the global markets in just a moment. plus tropical storm nate barreling toward the gulf coast. and threatening to become a hurricane. as if we needed another one right now. we're going to discuss the impact the storm can have on the energy sector, where it may be headed. we want to hear from you, contact the show via twitter, facebook, you can maybe submit a question for our "jeopardy" game later. "stump santoli." send us an e-mail, closingbe closingbell@nbcuni.com you're watching cnbc first in business worldwide

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built for business. we've got some breaking news on tesla here. sue herera is back at headquarters with that sue? >> it's a tweet from elon musk, kelly. he just tweeted out that the tesla semi unveiling will now be november 16th. the previous date was october 26th and that they are diverting resources to fix model 3 bottlenecks and increase battery production for puerto rico and other affected areas so far, that's the only tweet that we have, but they're diverting their resources and the semi that they plan to unveil is now going to be

unveiled november 16th a little bit later than the october 26th date. back to you, kelly. >> all right, sue, thank you michael, i basically expect there to be delays -- >> the october date was already pushed back. so that was -- >> whenever you're dealing with tesla, you know it's kind of, we'll get it when we get it. >> aspirational. cynically you'd say, overpromised, underdelivered also that they're running thatout atha flat-out and don't have massive production resources that i can draw on. >> this would be a huge event, huge none business model for them. catalonia wants independence from spain protests continue in the street, a growing number of businesses are relocating to other areas. stability is the goal for both sides. the coming days could see further unrest joining us, benjamin siegel, managing director and global equity portfolio manager at newburgher berman, and assistant professor of iberian studies at johns hopkins university thank you, both, for joining us today. ben, let me begin with you for a little bit here on how the market has or maybe hasn't

reacted to this. we saw spain's stock market down this week. but do you think there's more trouble to come for their bond markets, for their country, if catalonia keeps pressing on with this >> yeah, i do. i'm not a abandon ex pebond exp. aisle an equity guy. the uncertainty entails higher risk premiums for equity and bond investors i would imagine >> right would you extend that further, though i mean, if we start talking about catalonia pressing for its independence, does that bring a whole question of the eu and their bond yields are crazy low. i read that high yields, corporate bonds, trading like a 2% yields, totally, because the government bonds are -- i'm not trying to press you on bonds my point is, what would the ripple effect be across europe >> i'm not sure i see exactly how it gets across europe. i think that we'll end up with a negotiated settlement over time. i think they clearly do not want to open the flood gates to other independence movements elsewhere in the eu. so i think the real goal is stability and to contain this and make it as smooth as possible

>> yeah. professor sagin, what do you make of spain's reaction to catalon catalonia's efforts here it's been pretty severe so far >> yeah. i think the central government's reaction has been extremely disproportionate i mean, the images that we saw streaming on social media on october 1st on sunday showed the violence that even a democratic state like spain can use on its citizens who were peacefully -- peacefully trying to express an opinion of a matter of politics. so one of the curious things is that the state might be pushing -- pushing catalan independence into the hands of the catalan parliament. >> yeah. >> the sentiment has changed, has shifted just in a matter of weeks. and lots more people, lots of people that i've talked to in my reporting, have gone from being basically people that would have abstained from the referendum, to people that completely support it as an expression of

political dissent against the government and especially against its punitive measures. >> so how would that work? what is it going to look like if that catalan parliament come next week says we are declaring independence, given the spanish government's reaction already, which as just discussed has been seve severe, what do you think happens then >> i think the spanish government will continue to escalate tensions as we saw today, the spanish government approved an expedited law that allowed corporations to basically switch their -- to switch their locations from barcelona away from catalonia, off to madrid, some to valencia. i think this can escalate into a kind of more political measures so the spanish constitution offers a handful of measures that the government can enact. one of these is article 155. and what article 155 does is it allows the central government to basically take over the institutions of one of -- or

various of its 17 regions. and, of course, catalonia is one of those regions. >> right. >> it could take over those institutions another thing it could do, it could enact what's called article 116. and this would be a much more extreme measure which would basically take away civil rights and it would allow the military to declare what one could call a state of exception a state of emergency and it could allow the military to effectively occupy catalonia. i don't think either of these options is imminent, but -- >> yeah. >> -- the article 115 has already been pushed by one of rajoy's kind of collaborating party which is a center-right party. >> sure. ben, you know, a year ago, it was common to talk about following the brexit vote that there might be a wave of p populist elections, movements in europe, and considered to be a big risk factor.

a lot of that has really receded at this point. is there any reason to be concerned more broadly about european unity, about sort of ruptures in any of the countries that you invest in over there? >> well, i think actually the converse, the moment we're getting sort of nervous is -- we're talking art so ining aboof military tensions within a domestic situation is the time where it's time to sort of take a deep breath and calm down. i think we will get to a negotiated solution here in catalonia. i don't think it's in their interest to have corporations leave. that it wouldn't be a member of the wto, let alone, a member of the eu, and they're going to be a country of 7.5 million people. hugely dependent on trade with the rest of spain and the rest of the eu. so i think at a time like this, it's time to actually take a deep breath and calm down. but clearly, the populist and secessionist movements, whether

it's sort of expression of populist desires and aspirations, even if it doesn't lead to anything, adds to uncertainty and if i may, a spanish multinational, a european multinational or a japanese multinational, i'm pretty sure i'm not going to be considering investment into the catalon catalonian region any time soon. >> all right benjamin siegel, becker, thank you both for joining us. we'll see what happens next week appreciate it. president trump touting his tax reform plan while meeting with manufacturers today now the president and republicans in congress are putting pressure on dems to support their plan ahead, we'll look at whether that strategy could work. but first, forget health care and retirement benefits a new survey finds a surprising number of companies want to offer identity theft protection benefits our "fast take" is next. year, we split it equally. except for one of us. i write them a poem instead. and one for each of you too. woman: cool. that actually yours... that one. yeah.

regardless, we're stuck with the bill. to many, words are the most valuable currency. last i checked, stores don't take words. man: some do. oh. (alert beeps) not everyone can be the poetic voice of a generation. i know, right? such a burden. settle up with your friends on october 17th with the bank of america mobile banking app. settle up with your friends on october 17th us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us.

welcome back it is time now for our "fast take" today. we begin with the ishlmb perhaps throwing its hat into the cryptocurrency point, rath christine lagarde, turning their digital rights into a digital global reserve currency. michael, here's the thing. digital crypto, otherwise, i don't see sgrs gaining traction as a global currency >> certainly not with the same constituency that really thinks true cryptocurrencies are the future no i think it's interesting, though, because it already is in a sense a stateless currency

even if it is just kind of for booking accounts, you know, and international reserves and trade. so it may be the idea of pursuing it, hey, look, if there's a possibility of facilitating global trade, using blockchain somehow to do that, maybe. but to me, it's -- nobody's really asking for this it's the imf deciding investigate it. >> chinese are kind of asking if it because they don't like the dollar that the dollar is the world's reserve. >> they'd like something inst d instead. >> even that something is based on a value of all the other currencies if you tell me one day we live in a world where everybody is using the same currency, you start to lose the -- what's it relative to factor i just don't see -- >> all central banks, they actuallycertai currencies as reserves mostly dollars some euros sp some yens. i don't know why calling it an sdr in those exact proportions would make it different. >> or how this is different because bitcoin is -- anyway, if you want protection against identity theft after all these hacks, equifax, yahoo! elsewhere, try asking your prior. 70% of employers will offer

identity theft protection as a voluntary benefit by the end of next year. that's twice as many as offered in just two years ago. mike, would you sign up for this >> i think it's sort of a why not. i think that's probably the calculous a lot of people -- maybe even make it a negative checkoff it's sort of automatic i'm definitely blase about the whole identity theft thing it's not as if i'd go out on my own and buy -- >> is that because you vice president been -- haven't been -- >> -- to my knowledge, an experience with it i do wonder if there's a kind of a network effect, it a mass of people are protected by active identity theft shields, does that help the whole system operate -- >> i was thinking the monetary compensation, i assume people will keep getting identities stolen, costly to recover, but if everybody is paying into a centralized pot -- >> it acts as insurance. >> do you get more of a payout i like your option better. just keep -- >> it's kind of a group immunity. >> like a flu shot

exactly. which everyone should get by the end of october australia had a bad one. anyw anyway. next in a back to the future move, pittsburgh airport re-opened its terminal and gates to the public. you can go to the airport, get a day pass, go through security, importantly, and hang out, maybe see a loved one off, take a view of planes landing, a frequent dining hotspot do you think this will spread? >> i don't know how much it's going to spread. i remember as a kid going to the sort of small public airport back when there was a certain novelty of seeing planes take off and land i'm not sure that really -- have you been to the pittsburgh airport? >> i have. >> it's like a big mall. i remember 25 years ago when it opened in a renovated form after u.s. air went there, it was nice and considered to be one of the better ones. >> they go in, they remind you, carnegie mellon, uber. >> is a local history. it's right now -- 20 miles away. >> is is it a security, threat, though, granted you have to go through security but allows nonticketed members of the public in is that a threat

>> it's an underutilized airport. you have a crowded airport, security lines with always long, you want to be inviting people out there just to have dinner? >> excellent point about 150 people so far a day have taken them up on this i was unaware. bob. perhaps, ray dalio's book tour has been too successful jim grant says he's bearish on bridgewater i bridgewater's business because the founder is preoccupied with promotional activities investing is a full-time job. >> here's my thought on this has been for a while which is the fact that ray dalio has gotten out there so much lately in the last couple years and is kind of thinking big thoughts and putting forward his principle. kind of shows that bridgewater as an investment business is kind of -- >> an autopilot. >> it's kind of models and it's not -- >> the problem is i don't buy that you can run an investing firm on autopilot. >> he's involved, a handful of people who know every single day what the positions are what the exposures are but i think that the dirty secret is it doesn't take, like, ten hours a day in front of a

screen. >> that might be the best promo ever for his business, if his whole point is i want this place to kind of run -- a giant brain thing, where after he's gotten -- he wants his brain -- if the firm is already doing that, then perhaps his principles are worth paying attention to. >> on the other hand, people, as jim grant points out, the returns have not been that great. >> yes. >> in recent years. >> that's more of the recent problem. time for a cnbc news update, let's get over to sue herera sue? >> hi, kelly, hi, mike here's what's happening at this hour president trump and first lady melania trump hosting a solution to salute hispanic heritage month at the white house during his address, the president spoke about his love for puerto rico. >> we just got back from puerto rico together, and it was -- it was really quite a sight we're doing a great job there. and they are great, great people they are great people. they've been through a lot tropical storm nate killing at least 22 people in central america as it barrels toward the

u.s. gulf coast. that storm dumped heavy rain and caused flooding in el salvador, nicaragua, honduras and costa rica it's expected to make u.s. landfall near new orleans as a hurricane on sunday morning. and a new york city woman is suing tootsie roll industries claiming the junior mints maker intentionally tricked consumers by filling large candy boxes with too much air. in her lawsuit, viola daniel claims the size of the box is disproportionate to the amount of the candy inside. that's the news update reminds me of the potato chip -- >> they have to put a stop to this, there's so many of them now, they have to put a stop to this. >> that's what she claims. >> i'm going to make it a full-time job of going through every packaged good and ordering every food item at every restaurant and say, well, you know, this isn't what you promised >> right they'll have to put a disclaimer on the bottom of the box, it's done by wapeight, no the by volume there's a physics problem in

there somewhere i'm sure back to you, kell. >> now i just want a box of junior mints thank you, sue herera. energy companies are bracing for tropical storm nate. right now, it is heading toward the gulf of mexico and threatening to strengthen into hurricane. up next, we'll look at what impact the storm could have on oil and gasoline prices. later, we'll hear from two former nfl stars about their role in a new sports social media platform that allows fans to chat with athlete in this, a troll-free setting we're also going to get their take on the current nfl anthem controversy. and a special edition of "stump santoli" is still ahead mike goes head to head with the current jeopardy cmphaion, no joke going to happen right here at the new york stock exchange. stay with us so what else is new? how's your mother?

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welcome back with some breaking news on ge, seema mody, what now >> reporter: all right, kelly, major leadership changes being announced here first jamie miller, ceo of ge transportation has been named chief financial officer of ge effective november 1st jeffrey bornstein, ge's vice chair and chief financial officer is leaving the company effective december 31st, 2017. after 28 years of service. so, again, he was cfo and vice chair. he's leaving the company back to you guys >> thank you, seema. michael, anything you'd read into this beyond the fact --

>> new ceo, manager takes over the team, puts his own coaches in. >> gets rid of the corporate cars now >> that's right. which sets a tone i think. what's going on here. >> look, it is -- it's a series of changes even putting a halt to some of the new headquarters in boston >> right. >> so, further changing up the slate as you mentioned. tropical storm nate is headed for the gulf coast and expected to make landfall near new orleans. as a category 1 hurricane. at the center of u.s. offshore oil operations, too. what impact will this new storm have on energy let's ask andy, president of lippow oil associates. andy, i hate to be asking about this again it's been an awful hurricane season as it but what's your read on nate here >> well, the biggest difference between nate and harvey is the fact that nate is going right through the center of gulf of mexico oil and natural gas production as it stands this afternoon, 71% or nearly one in a quarter million barrels of oil has now been shut in and about 53% of

the natural gas production has been shut in so that's the biggest impact that we're seeing. and then if we move over to the refineries over in the new orleans area, they're currently planning on running through the storm as it's only going to be a category 1 >> andy, can you put in context the impact of the production shut-ins at this point relative to prior storms? i just wonder as a percentage of overall north american production given we have so much more going on on land now, is it a much diminished proportion >> it definitely is. gulf of mexico proportion now only represents 19% of total u.s. production which has risen to about 9.5 million barrels a day in total we're expecting that number to go higher as we go into 2018 so it still is a significant impact i expect we're going to lose 5 million barrels of crude oil production there arough this ev >> i'm looking at the price per

gallon here. what are we talking about, andy, in terms of the range of outcomes >> well, for gasoline, given that the refineries continue to run through it and we still have adequate supplies of gasoline, i'm expecting actually that the retail national average is going to continue its descent down to $2.40 a gallon today we're around $2.52 >> all right andy, thank you very much for joining us we'll see what happens as nate progresses >> thanks for having me. >> andy lipow of lipow oil associates. some of the roughest sports brawls have happened not on the field but really on facebook and twitter. so now a group of nfl players are putting together a new platform that eliminate profanity, trolling and bullying eliminates them and keeps the discussions football-focused can they throw the public social companies for a loss we'll ask when we have that story ahead. and the heat is on president trump and the gop pushing hard on tax reform up next, what the administration and others are doing to make the tax plan a reality

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welcome back president trump and the gop pulling all the levers for tax reform including a few to president pressure on democrats to vote in favor of their measures cnbc's ylan mui? washington with though details. >> reporter: kelly, they have carrots and they have sticks but right now neither one seem to be working. president trump's meeting with manufacturers this afternoon, several of those companies were from west virginia that that's home to democratic senator joe

manchin, but he is still a no on the tax plan then there's indiana senator joe donnelly, also a democrat in a red state. president trump flew with him on air force one. conservative groups have been blasting him in tv ads this week he made clear that they haven't won him over yet. >> when it comes to the tax code, the devil is in the details. right now the only plan out there is missing a lot of important details. like most hoosiers, i'm not going to buy a car before kicking the tires. that's not standing in the way that's just common sense >> reporter: we also spotted nsc director cohen inside ron wyden's office this week, a democrat from oregon and ranking member of the powerful senate finance committee. but apparently the meeting didn't go so well. here's the statement they put out afterward. "it's clear this meeting was meant to check the box, instead of engaging in a real

substantive conversation." this is all important because republicans have very little room for error if they want to pass tax reform along party lines. right now, democrats don't believe that this republican outreach is real kelly, as one congressman told reporters this week, we don't want to be props back over to you >> all right we'll see. ylan, thank you very much. our ylan mui. throwing social media giants facebook and twitter for a loss. that's the goal of a group of nfl players who are launching their own social media platform. that will be a safe haven for football fans and they're score with investors we'll have that story next also, comic rocker, weird al yankovic scored a big hit with his sng lingle "i lost on jeopa" and mike might be singing that song after a special edition of "stump santoli." staytuned to see what we mean. ♪ >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked...

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no profanity, no trolling, no bullying. that's what the football community hopes to achieve with its new website, fancom, online community focused on high quality users and content. fans can interact directly with nfl players in a safe and meaningful way siemian rice, former tampa bay bucs defensive great, and brian mcfadden with the pittsburgh steelers both join us to talk about the fancom playbook. appreciate you being here. brian, what's interesting to me about this, you're letting the players financial lbenefit. is that right? >> no question this is an stuopportunity for a the players involved to not just be hands-on in terms of -- but also reaping the benefits from it, too. it's unique.

it's ground breaking you get an opportunity to watch your favorite team, you know, on sunday, monday, or thursday. also have quality dialogue back and forth with guys that you respect and they have a credible resume. so i'm happy to be a part of fancom.fans is the website it's a unique groundbreaking opportunity. hopefully you guys will all get involved. >> how do i get involved and get cleared to participate what are the standards to make sure that i'm not a troll? >> well, first, you got to go on and register again, that's fancom.fans. secondly, you know, they have a -- we're going to do a great job of monitoring the site you know, we have the intelligence, we have the technology to really -- to filter out all of the kind of the no nmonotony that goes along with troll and people going on, not adding value to the conversation this is a conversation -- we're going to be able to have conversation, discussions, based on real true gritty nfl --

nfl -- what goes on in the nfl it's going to be fine because of the fact that we're going to be able to lend our insight, insight, and really our perspective on what's going on in the game. we're going to have to be able to have real dialogue with fans that's coming on that really want to know what's going on in the game i mean, from the xs and os, to the game in its entirety >> bryan, as i understand it, it's organized around teams, right? it's not just individual players making themselves available. how much engagement do you expect there will be over time from the players, just exactly how much access will the members have to the players? and also i wonder, i mean, what kind of things are they really most interested in are they trying to get a little bit of insights about their fantasy league plays and things like that? >> yeah i think through time, we will gain traction. we just launched officially this past weekend and it was impressive. i was impressed.

the majority of the guys were impressed. with the amount of fans that were waiting for this opportunity to have a platform and not to worry about any bullying or trolling and then when yoo you look at what can happen as a football fan, get an opportunity, let's say, if you're a pittsburgh steeler fan, best organization in the nfl, in my unbiased statement, by the way, if you have an opportunity of watching the pittsburgh steelers against the jacksonville jaguars this coming sunday in pittsburgh, i'm on, an opportunity to see what big ben is doing if you have an offensive question about what happened on that route concept, now you get an opportunity to reach out to myself or max starks, also a steeler representative of part of fancom and we will give you a quality insight about, you know, what this is what happened on that play defensively, this is what some of the guys were thinking or this is what coach tomlin was thinking. our job is to educate, inform, insight, but also entertain. >> simeon, if there's no trolling and no bullying, is cam

newton going to be allowed on this platform? >> oh, well right now, the playe players playing aren't part of the culture we're building right now because they can't really add the value we can the value we're going to be able to add is hardcore conversation about what's really going on with the sport i which is hard-core conversation. being guys that played the sport, when you look at different entities that talk sports, they don't talk from a reflective standpoint. we can reflect on the game and give the game what it really deserves in terms of conversation so you can get true, true snit again, if you're doing fantasy, if you really want to learn about the game, if you want to know what's going on inside the game, you can come on this site and speak to us and we can have hard-core discussions about it >> what about if i say should we be kneeling or not for the anthem is this a safe space from political talk too >> i'm not a political expert.

fancom.fans, we're only focused on football. our job is to keep it in between the lines. >> all right guys, thank you very much for joining us best of luck with it we look forward to hearing how it goes. >> thank you >> brian mcfadden and simeon rice i should say go steelers and go bucs, just for the record. today we're having a very special edition with a very special guest, our version of the daily double, and it's next.

us. it's what this country is made of. but right now,

our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us.

welcome back manhattan bartender austin rogers has been on an impressive run on "jeopardy," with 306,900, is that right? >> it's close. >> it's over $300,000. it's his quirky style and risky bets that have made him a fan favorite >> and our returning champion, a bartender from new york, new york, austin rogers. >> 6,500 >> what is a tootsie roll? >> that's right. [ applause ] >> i need this >> so do you cringe as much as i do when you see yourself on

television >> no, i'm used to it, that's just what i look like. that's exactly what i do for real life situations like ice cream >> if i say to you, romanian poet -- >> ionesco i have no idea who it is but ionesco. >> you just know if they ask the question, that's going to be the answer >> no, i know the historical information, i'll just augment it with the facts they need to know i know it all in the first place. >> how many episodes have you watched? >> 50, 60, something like that >> that's not that many. it's on every night of the year. i thought you were going to say hundreds of thousands. >> no, no. i also intersperse it with documentaries about string theory and stuff like that >> it's like crossword words >> how do you win scrabble you know that aa is a word

you have to know the tricks. >> so when people say, but how do you actually do this, what percentage of it would you say is kind of pattern recognition and what percentage just comes from, you know, compilation and reading and learning and all of that >> it's more like a matrix of thought. if you have accumulated enough tangential things, they start stringing together so you'll be sunflowers automatically goes to van gogh, automatically goes to self mutilation >> we have to see what happens if we take you out the "jeopardy" setting and place you in the financial world, we have a segment in the show called stump santelli >> this is like the globetrotters against the washington generals. >> we're going to pit you guys against each other we'll do the questions "jeopardy" style, you can write your questions on the whiteboard austin, you'll choose from dow

components, sports rivalries, new york history, tech founders, food and drink, and upcoming broadway shows we have one question for each. >> my favorite work is called "gotham: the history of new york," i have read it five times. new york history >> write your answers, please. they're both still writing all right. this is our faux "jeopardy" music because legal wouldn't let us use the real one. who is hamilton. and who is hamilton, they both got it, i'm very impressed, mike i don't mean it like that. >> i know, you were impressed. >> it's called the grange. >> hamilton heights, that's why they call it hamilton.

>> i have to go with dow components >> wise choice here is the clue, guys this company currently headquartered in boston is the longest continuous member of the dow. mike, that was quick so you, austin, get to tell us first. >> what is prudential. mike >> what is ge. ge is the correct answer >> that's unfair >> that's what we're trying to do here. just so you're aware >> just so we both feel equally okay >> you get the pick next >> what were they again? >> sports rivalries, tech founders, upcoming broadway shows. >> let's go tech founders. >> often referred to as its third co-founder, ronald wayne

sold his 10% stake in this company in 1976 for $800 your answers, please they're both writing this is a good one i would never have gotten this sorry. trebak doesn't talk during this. austin >> what is apple >> mike? oh, they both got it >> he's the pete best of technology >> absolutely. >> that means mike wins if we end it there do we have time to squeeze in one more we'll just leave it at that, because mike, what could be better >> it's the home court advantage. >> high squeeze in one more really quick food and drink, the answer is more than 160 million pounds of this food were estimated to have been consumed on a single day in february of 2017

boards please. michael, you go first. what are -- >> bananas >> he's right. chicken wings. mike, you blew it. you had your chance to have won this whole thing and now -- >> it's an engineer tie. >> you're a great sport, thank you very much. >> thank you for watching everything >> i hope you keep kicking butt. >> i love being here at the home of the oligarchy >> we love it too. "fast money" begins right now. >> adami got that one, right "fast money" starts right now, live from the nasdaq market site i'm michelle b