scratcher. it makes no sense to me. >> even if you don't care about soccer, the world cup could have been a chance for everybody, red, blue, politics side to come together for a nation far common cause and now we don't have. >> so well >> thanks for watching "power lunch. "closing bell" starts right now. ♪ ♪ ♪ where you lead, i will follow ♪ ♪ anywhere that you tell me too ♪ >> that's not the original version. what is that what is a country western version? what the heck is that. >> this selection from carl king's tapestry album which you may know what that's about now >> 1971. i was -- you have no idea how influential that album was when it came out. >> i saw the broadway show which is fantastic it's fantastic mom, this is for you like her favorite of all time. >> there you go.

>> we talk about tapestry in just a bit, welcome to the "closing bell" everybody i'm kelly evans and, well we've given you the hint to the story that we'll talk tapestry later this hour. >> i'm bill griffith, spoiler alert, the ceo of box is looking to become a leader in artificial intelligence with it's latest product announcement aaron levy will be back with this exclusive interview from box works to discuss the latest move, coming up. also we have underarmor shares under pressure today after a new report says teens are more or less over the brand. companies down about 1.5% on the session. we'll tell you what teens are buying these days. >> man, that was a great album the hit after hit after hit. we have breaking news from last hour, president trump wrapping up his meeting with canadian prime minister trudeau. eamon has the latest on that >> reporter: yeah, hi fwil, you're right, that meeting wrapped up justin trudeau is getting ready to roll out of the white house

you might see him roll right behind us here on the north lawn driveway over the next couple of minutes, but the president and he talking about nafta in the oval office. the president again raising some skepticism about nafta that's a treaty he has criticized again and again today, he did it in the oval office here's what the president said >> we'll see what happens with nafta, but i've been opposed to nafta for a long time in terms of the fairness of nafta i said we'll renegotiate and i mean i think justin understand this, we can't make a deal, it'll be terminated. >> reporter: the president raising an sbeeging possibility here which is a reimagined nafta with just one of the three participants mexico or canada and the united states, but maybe not all three. here's what the president said on that point. >> it's possible we won't be able to reach a deal with one or the other. but, in the meantime, we'll make a deal with one. we have a chance to do something very creative that's good for canada, mexico, and the united

states >> interestingly the prime minister was asked in french, while he was sitting alongside the president who doesn't speak french how the relationship with the united states was going, and what the tone was between the two men. and he responded in french to the media from canada saying it's great to be here, always good to be among allies and friends. so both sides very much putting an upbeat face on the meeting today. even though there was no joint news conference, it was a little lower profile than previous head of state meetings that we have seen here at the white house and both sides arguing that they're going to get a good deal out of this, but no specifics on what that deal and a reimagined nafta would look like guys, back over to you. >> was that the intent of the meeting to come to some kind of broad strokes on that trade deal >> reporter: you know when i asked white house officials why this meeting was taking place today. they put it in the context of the overall nafta negotiations that are going on more broadly but they didn't say they had any specific outcome that they wanted here. they just wanted to meet with

our northern neighbor, they say. and have a friendly moment i think that was the extent of what they were hoping for today, and i think they got it. >> all right they got it. eamon, thank you, see you later. tonight, the president is expected to make a speech on tax reform, let's bring in a preview of what we can expect from that. >> reporter: there's a new stat the president will be using to make the case for tax reform the typical american household will get a $4,000 pay raise if we move from a worldwide to territory tax system and bring back profits that are currently overseas cea chair kevin gave us a little taste of that argument earlier this month and basically his premise is that corporate profits used to rise at the same rate of the wages. now it's more like a 0.4% increase in pay for every percentage point increase in profits. and he blames that on the large share of earnings that are tracked overseas you fix that he says, you put more money in americans pockets.

the white house will be releasing a more detailed analysis on this soon, but this is really the heart of the administration's pitch that cutting the corporate rate ultimately leads to more jobs and higher wages for middle class workers. and that's why many of the people in the crowd tonight in pennsylvania will be truckers, yes, truckers. remember when those trucking o ceo's went to the white house and that's when trump climbed baa a mat truck in the white house. the big rigs welcome back tonight. one exert from trump's speech, when the trucks are moving, that means our economy is moving. back over to you >> and people are paying taxes >> yes >> thank you very much look forward to hearing more about that tonight and tomorrow morning, be sure to tune into squawk box >> look forwarded to that. fed minutes out in the last hour they're showing a rate hike in december, still looking likely he talked about his greatest

fears related to the fed take a listen. >> my greatest fear, i'm not giving you a high probability, but there is certainly some probability is that we have a very aggressive federal reserve. let's, you know, right now people are assuming another tightening this year and another three next year. could we see an inverted yield curve late next year early 2019. we to want avoid an inverted yield curve. >> let's talk about that among other things in our closing bell exchange today joining us, ryan payne from payne capital management who's a post nine sitting next to kay from o'neil securities and rick santelli, i'm going to start with you because larry, not the only one wringing his hands over fed monitoring policy. the head earlier today was saying he's worried that an aggressive fed could lead to a market that would rival the

final crisis we saw ten years ago. are you guys talking about that at all there in chicago? >> inverted curves are discussed all the time if you look at the last time we had one, it was about a decade ago. the last four episodes for tens to twos maturity comparison, that was below zero or negative which is the definition of inverted, was 2006-07, that was most recent. 2000, 89, 90, and the big one in terms of the length of time, 79 to 81. they're not very frequent. although we've had several and i think that he is exactly right. there's two things va a central banker never wants to see, first is an inverted yield curve, second a $4,000 gold both are failures. and in term of the yield curve, think about it this way, many companies, including one i worked for, drexel, and plenty of cash. okay but what they didn't have the ability to get any cash right now when they needed it.

if short rate spike, that means in the here and now, getting any kind of capital is much more difficult. it happened in europe and that's when mario and ecb decided to embark on a lot of stimulus, it's something we don't want to see. can it happen. listen, the inversion is going to be propelled by the short maturities, want long end, even if it's 3% which is still a question as to when it'll happen the driving force isn't going to be long rates going down it's going to be short rates going up if somebody had to peg me, i would base discussions on the floor, most would peg the any chance time in the next three years maybe at 25% >> wow ryan, the president just said as elon told us when trucks are moving, the economy's moving and i know you like invests directly in shipping here as well, right? >> yeah, i do, i think it's gotten beat up so badly the last couple of years, if you were to have a cowboy play in your account, shipping would be a great place to be.

commodity prices are rising again. oil's up today there's a lot of consolidation if you look at valuationings right now, you're looking at 16 time's earningser have us 19 times for the s&p. some of the research i see, if you look at the book value or some of these firms are trading at right now the steel of the ships is worth more than what some of these companies are trading. right now shipping is a very, very good play >> meanwhile, the equity market just creeps along, we've had a very narrow traded day today for the major averages, yet, we're in record territory for the most part here. >> right, we been churning in here for the last week, right, in a very, very tight range today. no different volumes continue to be low vix is at low levels all in expectation of what we were going to hear today we didn't hear anything new we didn't already expect. tomorrow, you know, we are going to kick off officially with the earnings, jpmorgan's going to lead the pack at 6:45 a.m.

so, you know, even some of the banks, they're trading right there, guys look, jpmorgan up 9% in the last -- since late august, right? and so you can't necessarily be surprised no matter what happens if you see a little bit of profit taking tomorrow because it's had this big move in a very short period of time and so therefore i think you have to start to say, listen to where the revenues are decli declining, i suspect you're going to see trading revenues across the board down in all the banks as they announce >> kenny, what about the point that rick was making a moment ago? of the fed going too quickly in the yield environment which of course would hurt the banks. >> it would, but i don't think, especially where we are and what we've been through at the crisis, that the fed chair, certainly not yellen, she's not in any rush. she wants to be consistent and moderate and slow in her approach i don't think, and it's very interesting with this debate we have now between either her or some new fed chair, the one that really seems to be in the running is much more hawkish and the market is not really reacting to that i think the market's kind of saying, leave it as it is.

janet yellen's great because if you get kevin in there who is more hawkish and you get a policy change, then you're going to get much more uncertainty and there's the risk rises then of certainly inverted yield curve, but i have to believe that even someone like kevin walsh has to be conscious of the fact that we do not want an inverted yield curve. >> the hard part, kennedy, the hard part of the inverted curves, they're not really triggered by the fed they're triggered by events. if something happens in corporations like ge, need to panic. so what you're talking about is true, the fed could try to protect that situation, but in many ways, all the past inversions are kind of beyond the fed control in many ways >> right -- >> that's a good point yeah, the only chime in there, that's why you have to be cognitive, there's money of retail investors going into the bond market, any sniff that rates are going up, i see selling across the board along-term and short term rates. so i could see rates going across the board up, not just on the short term >> okay.

but why -- rates are going up. there's no question. if no one thinks rates are going up, you're living under a rock we're talking about for a year and a half >> i think the long end is the place that the catalyst happens. >> absolutely. >> we've got to go at this point, thank you all, good discussion appreciate your thoughts on today's market action. meantime, delta is reporting earnings and revenue the top the streets expectations, but they also warn of higher costs hitting the company for the rest of this year when we come back, we have a bull and a bear squaring off on whether to buy the airline sector overall. >> little more than 45 minutes to go on the session today box's annual conference call box works is under way haren levie is saying that ai will be important today that privacy. ahead he'll tell us how box plans to be on the cutting edge for business and we to want hear from you. reach out to the show, share your thoughts via twitter, facebook, e-mail closing bell sissorwi fstn g cnbcir i bune wldde

welcome back shares of delta are slightly

higher after a good earnings report this morning. ed explains what was behind the numbers on squawk box. >> our market, we're very competitive and to me, it's very much about demand. when you have the strength of the demand for the product and the quality of the service that the delta team is providing, that is overcoming some of those pricing squirmishes that you read about in our industry >> okay. so we ask, is it a good time to buy the airlines right now joining us equity analyst at the research we have david deets. president chief investment strategist at point view wealth management who is our bear jim, make the case for the airlines right now >> sure, when you look at what delta reported this morning and what the airlines are reporting in terms of their traffic statistics air fares are rising airlines have been focussed on getting unit revenues up and theorizing demand is strong, 90% of their capacity is in markets where unit revenues are rising and we expect that to continue so airlines are profitable

they're growing, and we expect continued growth next year >> david, you feel differently, why? >> well, historically, this has been a toxic industry where even warren buffett got his fingers burned the cheerleaders would have you believe this time it's different. unfortunately for this industry, all profit margin right to the bone, has had labor strife and soaring fuel costs the statistics now indicate that although the big floor shows you discipline the rise of the super discounters just does not stop now have we have basic kmis, no frilling not aempb's going in that direction. some people want to pay full economy but 50% have gone in that direction >> but jim, the flip side, there's other people willing to pay up in order to not have to go on basic economy and that's

boosting the bottom lines roob exiting. >> absolutely right. it's only there so that they can compete with the spirits and the allegiance of the world, at the same time, passengers are increasingly voting to upscale to a product that gives them a unit revenue premium so that's what's going on and to combat what he said about the history of the airline industry. we have much fewer competitors, solidly profitable for several years. they're generating boat loads of cash, they're restructuring their balance sheets and pay back in the form of buybacks it's a different industry, but yet the valuations don't show any kind of adjustment for that lower risk >> well, let me ask you both then, jim, do you like all airlines david, do you hate all airlines? jim, you first >> yeah, we're pretty positive across the group, we have buys and strong bias on most airlines we cover our favorites are delta, american, and jet blue which has a huge valuation

>> no weak links for you >> holds on some other airlines, for the most part, we are positive on the group. we think valuations are pretty attractive as a group if you look at new york stock exchange airline index, it's still trading below what it did before 9/11. at the same time, the industry has reinfrastructured radically and airlines are profitable and continue to be so. >> david, hate them all? >> no, i would look for the non-unionized ones, southwest airlines, they're going to have more flex to believe the combat these labor issues for example, american airlines just contracted their way. the ones that have been most nervous about are the transatlantic carriers, why? because that is the highest profit route and the bare barrens at the gate are at overseas airlines and there of course, they're using overseas labor which is much less than the united states of course they're planning a flag in europe and getting most friendly nation status to come in here. i think that's where the real

risks are. those airlines who are heavily dependent on those transatlantic traffic. >> all right gentlemen, thank you david deets on the airline stocks we have about 40 minutes left in the trading session here the dow is up 30 points. narrow day, but enough for a record high there. the russell is the minus sign right now among the major averages >> we've seen them climb higher. i don't know if that gradual tightening tone -- >> we've had a rally >> huge one. >> yes, i think the dow was up six points when the fed minutes came out here. $50 billion, that's how much the wine economy is worth. now in the wake of that devastating fire that's still burning in northern california, how much of the industry will have to be rebuilt we have a live report coming up next and long-time donald trump friend and confidant, tom bairk, the ceo of colony capital offered advice for the president. what he said and the impact that could have on the trump agenda is coming up

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

we have an update on the race to replace janet yellen as fed chair. politico is reporting now that treasure secretary steve mnuchin is picking president trump to pick jerome powell to be the next fed chair politico says mnuchin feels powell is a safe pick and somebody that he can have some influence over something that the gang on squawk box can ask the secretary

about tomorrow morning mnuchin will be a guest at 7:45 a.m. eastern time tomorrow meantime the dow, a lot of the major averages continue to move fractionally higher dow in record territory. at least for napa valley wineries have been destroyered we are joined from napa with the latest >> reporter: hi there, kelly, we are at the winery where you can see it's absolutely devastated this used to be the tasting room, elegant and nice tasting room as well as an office location for the winery. you can see here, the file cabinet charred and back here, look at these bottles. they are brutal to the touch, almost melted away this is one of five wineries that have been destroyed or heavily damaged in napa alone. and it's not just here, this was by the way could be growing with more evacuations overnight from calistoga. in neighbors sonoma county by

the way, we've talked to another wine maker who lost his property >> ur winery obviously is devastated complete loss. the wine-making facility and also our taste room and events center >> reporter: he's the owner of paradise ridge winery which was levelled he says that he will rebuild back here in napa, there are dozens of restaurants and wineries and hotels that remain closed, not necessarily because they were damaged, but because of some of those afteraffects of the wild fires like road closures and power outages you look at the list, a lot of them are iconic and recognizable brands here in napa. hotels like the meadow wood, also wineries like barringer, joseph phelps, cake bread, that all could have a material economic impact, the wine institute estimates that california's wine industry generates $114 billion worth of

economic impact in the u.s back to you guys >> i was reading that 90% of the harvest is already in which is a good thing, i guess. the cabernet, the heartiest of the reds is still on the vine. they feel like it can weather this to some degree, right >> exactly i've been talking to a lot of insiders and wine experts and that's what they say those grapes actually have thick skin, they're relatively impervious to the smoke. that's definitely a silver lining in all of this. i have to tell you, we've been here since about 1:00 in the morning here and as the hours have progressed. the air quality here has definitely worsened. even though in terms of absolute numbers, there aren't a ton, i mean, it's one of now five wineries that have been destroyed, but kind of one of the things that definitely factors that would keep tourists away, at least in the immediate future is the air quality. it's reallien tough even being here >> that's very, very tough so difficult to watch unfold

there. doing a great job, thank you see you later. underarmor stocks. down today, even though markets overall are now mostly higher, but under armor is weak after teens are over it for the company. we'll tell you what they are buying coming up >> those fickle teens. first boxceo aaron levie will talk about his company's teigcen s to utilize artificial inllen iit's product offerings. that's coming up

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♪ ♪ ah, we're playing all the hits today, kids despite reporting in line earnings and a revenue beat yesterday, shares of barracuda networks are still under pressure today after the company guided third quarter revenue and earnings at the low end of analyst expectations that stock down more than 12% right now, kelly >> what was that song? that's a new one to me maybe steve's heard it i'm on the floor with steve grasso to talk about markets on the close here fed minutes, did that give things a boost here? >> i think people are waiting, sitting on your hands.

major event with the feds, major event going to december. as we spoke about a couple days ago, i think the dollar, the ten year, and the equity markets and the excel lack for financials are giving us mixed signals. they're not telling me that rates are going higher the market right now is not telling me that rates are going higher i think that everyone needs to get back to sitting on their hands -- >> there's two ways of viewing that, if they do go higher, no one's prepared, the other is if they don't, what does that mean as we head into bank earnings season >> i think the market has already established. i think it's in the market already if you look at the fee, the odds that the interest rates are going to increase are between 70 and 80% they dipped recently to so to the extent that the market knows, i think the market thinks rates are going high per. they don't, the market goes even higher from here >> all right sounds like a win/win, maybe if you're investing. >> if you look the the marketplace, it seems like a win/win. >> thank you very much we'll let you get back to it

steve grasso, bill. >> we are on the half hour show, it's time far cnbc news update with sue herrara hey sue. >> hi bill, here's what's happening that the hour. florida's governor rick scott in washington asking congress for help for the florida's citrus industry which was heavily damaged by hurricane irma officials say the storm caused more than $2.5 billion in losses to the states agriculture industry >> our goal is for to have a unified voice to make sure that the federal government is our partner, provides disaster assistance to our citrus industry, all of our ag industry >> amazon is making it's easier for families with younger shoppers to shop on the site it's now letting teens between the ages of 13 and 17 to create their own accounts linked to a house account. it will give them greater freedom to spend, but only with parents having the final say o purchases. and special tribute to the buckeyes on display at ohio

state's hospital dr. paul janson says he spent nearly 1,000 hours putting together a replica of the ohio stadium made entirely of legos seats in the stadium are being sold for $20 apiece and the stadium holds 12,000 little lego people that is the news update -- >> no, no, no, he put -- he didn't put little lego people in there. >> he did. >> come on >> he did, and it can hold 12,000 >> there's not that many people in there >> good reflection -- >> no. it's not, no and i don't know why they're wearing hard had the hats, but that's for another day >> just because they're lego people >> exactly >> thank you, sue. >> you got it. cloud storage company box is under way. the and company's integrating machine learning tools into the box cloud content management platform >> joining us once again, we welcome back box ceo aaron levie

for this interview welcome back >> hey, thanks a lot, appreciate you having me. >> so you're added ai, so is this the smart cloud that you're unveiling? is that what's going on here >> yeah, a little bit. it's obviously not as advanced as that lego announcement we just heard, but we're excited about bringing artificial intelligence and machine learning to our platform box has over 76,000 customers that use our technology. 65% to the fortune 500 to major, share, and collaborate around their information. we're taking the advanced innovations from google, microsoft, and ibm and layering that in the box. so the content can become smarter and more valuable and useful to our customers. so we're bringing in machine learning directly into the box platform from those partners as well as building some of that ourselves. >> so aaron, if i were a cynic, anybody who just slapped ai learning on today is just on top of the hype cycle. tell us about the real world difference these technologies

will make. >> yeah, there's no question that certainly every, every enterprise offer company at this point needs to transition their software from being the traditional approach where customers have to do all the work for the software to now ai or machine learning transforming the software itself. and that's why you're hearing announcements from the tech industry for our customers, we store over 30 billion files, which is all of this unstructured information and data and what we want to do is be able to help customers make more sense of all of that information. when you think about building work flows, making it more secure, being able to have much faster business processes, that's what we to want bring to our customers. we showed off a demonstration of a customer being able to search all of the markets images they've ever uploaded to find exactly the things they were looking for in an ad campaign. we're taking computer vision technology to understand the objects and the text inside of their images and making those searchable we did the same thing by letting customers search within video or audio files. we to want make the content

inboxed much smart and much more powerful when it's inside of our platform >> yeah, i was going to ask you for a specific example you just gave one there are the margins better with this are you able to charge your customers more when -- if they use this technology? >> so what we think is this is going to dramatically accelerate a lot of the more manual processes that our customers have around content. if you're a large marketing team or media company or legal firm, you have to do a lot of manual tagging and classification of information, and we're going to dramatically reduce down the time it takes to do that using computer intelligence to be able to power that. and so we think there is a huge opportunity to go charge customers in a way that makes them very attractive for them, but also introducing the margin and revenue opportunity for us as well. we'll be announcing the pricing and billing model earlier next year today we wanted to announce the technology and get our customers starting to use it and experiencing it for themselves >> aaron, i just wanted to ask you a broader question about

technology right now there's more talk of a regulatory clamp down coming for the tech giants these days are you kind of thinking about about what that would look like and thousand might affect box? >> i think this is certainly an industry that's in the state of flux there's a lot of new kind of privacy questions. there's questions about how do you regulate artificial intelligence and machine learning we've seen this with the news feed and facebook has an example where it has a tremendous amount of power to change the information that we're looking at so i do think that we are in a stage where the regulations that we're going to start to see in the industry do have to evolve what we to want make sure is that our customers don't have to deal with all the complexity of that regulation. if you're a large global business like a general electric or eli lily or proctor and gamble, our job is to make sure your users have simple technologies that abstracts away from security and the regulations you're seeing. i think we're still a little bit early to see how the regulatory environment plays whout you're referring to the major tech companies, but our job is to make sure that our customers

don't have to deal within their i.t. environments. >> i mean, where do we stand on cyber security when it comes to all of that? you know, after equifax and, you know, the fcc being hacked at the same time, are you guys having to up your game i mean, is there some new technology coming that you're going to assure your customers more security that way >> yeah, i mean, i think this is a constant race when you're looking at the cyber security space. everything from a people challenge to how do you make sure that the employees in your organization have the right hygiene and processes to stay secure as well as how do you make sure that the technology you're using is robust enough and free of those vulnerabilities that equifax faced? our job and promise to customers is we are going to build a secure and robust platform that attempts to protect them as much as possible from those types of challenges, but as you know, it's a constantly moving target. we are constantly in a race against alled of different cyber security threats, but we to want make sure we can innovate as much as possible in that space we think that intelligence and

machine learning is going to be one of the most important ways we solve this problem. how do you take the billions of events happening in your enterprise when you think about every single time somebody accesses an e-mail or sends a file, and how do we make sure we can spring smarter software to bear because of the insights and intelligence of what's happen inside of the platforms and software that customers are using. that's one of the major ways we think machine learning will be leveraged is in the space of security >> aaron, quick question on some of the tax reform proposals that are coming out of washington we often talk about them much more aimed at companies, you know, huge megawith a ton of overseas cash. would you guys look forward to a lower corporate tax rate >> you know, this is not one of our big kind of hot button issues, it's much more important for larger incumbent technology companies that have a lot of cash overseas from their profits. we care a little bit more on the regulatory side and on the policy side around things like immigration, encryption, digital policy broadly and how do we

ensure that we have an environment that allows the next generation of technology that we think is going to power the economy. how do we make sure that can thrive in the next economy tax policy is not a major focus for us >> all right aaron, thank you always good to see you and next time we'll bring ewe tissue, i promise. >> thank you very much >> sorry, i don't know what's happening. >> no problem. that's all right it happens aaron levie of box joining us today. we have 20 minutes left in the trading session, dow, s&p, nasdaq are in record territory right now. >> the dow had a closing high yesterday. any new move higher would be another record >> underarmor on the oust with a key constituency and we're not talking about athletes we'll tell you which demographic we're talking about. coming up. and for anyone who thought all those new ai home devices were actually just spying on you, guess what, they may be we'll explain when we come right back

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welcome back how about shares of kroger which are trading up 1% now after being halted earlier today for it's convenience store business including a potential sale kroger's business generated about $4 billion of revenue last year they also have a jewelry business and a few others. a few other announcements they made also an $9 billion investment over the next three years. they talked about expanding this policy, but let's use scan as you go your purchases in the store and walk out with them they're trying to kind of answer back to some of the market losses >> they're going to focus on what they do best in the grocery bez and add technology gee, where have we heard this before wonder why they're doing it now. news alert on sheryl sandberg, kayla has details. >> bill, sheryl sandberg has been on capitol hill today taking meetings with the bipartisan leaders of the house intelligence committee, also

leaders from each party in the house, republican majority leader kevin mccarthy, democratic minority leader nancy pelosi, and here's some pictures of sandberg on capitol hill. cameras followed her throughout the halls when she was leaving those meetings she declined to comment on the content of those meetings or on facebook's role in the 2016 election that now is said by both the house and senate committees to have seen lots of russian influence. facebook is expected to appear in some form at a november 1st hearing, but sandberg will be taking more meetings on the hill tomorrow we will see if we can get anymore comment from her, but for now, she declines to comment when reporters ask her in the hallways of congress exactly what happened in those meetings. weren't testimonies, weren't hearings, but they were to discuss this matter of russian interference >> all right thanks kayla see you later. love it story. so a tech reviewer for the website android police got more

than he bargained for when he took home a google home mini device last week while he was testing the product in his bathroom. now, there's a good idea >> of course >> there's a good idea the reviewer found the speaker was mistakingly recording sounds in his home 24/7 and transmitting those recordings back to google's serve per. >> mistakingly google issued a statement saying it was a problem with the touch control mechanism. and that, quote, the google home team is aware of the issue the company said it immediately rolled out a software update >> maybe i'm not naive, i'm not worried about this >> the spying. >> yeah. >> you have an alexa >> i have one, it's in my kitchen and if they want to hear what my musical tastes are like, i'm probably playing tapestry tonight when i'm cooking, making dinner, okay, just so you know >> if all of your conversations at home were mistakingly or other sent back to amazon

headquarters, how would you feel about that >> that's what i'm saying -- >> would it matter to you? >> i don't know. >> or kind of like whatever. >> what are they going stood with that? >> i think a lot of people might feel the same way. people really concerned about privacy and others who like the functionality and feel that i can live got nothing to hide >> i guess, i don't know whatever >> anyway, probably not what they intended. people to be talking about with that review. >> it does need to be addressed. that shouldn't be doing that by the way, don't put it in your bathroom >> but it's help ffl you're brushing your teeth and taking a while, you can listen to a podcast or a song. some people do have speakers in their bathroom >> i need silence at some point in my day. i don't have to listen to music when i'm brushing my teeth >> 13 minutes to the close we'll work on you. >> thank you alphabet was up nearly 2% today. overall the markets seeing small gains. the ruszle still a small decline, dow is up 33, that would be a new record high >> in case you hadn't heard, coach is getting a fresh new

name we'll tell you what it is. we already told you. were you paying attention? after the break. ♪ ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this don't get mad (bell mnemonic) get e*trade and get invested throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others.

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art stopped by a little while ago and told us the market is shows an imbalance to the buy

side the of $500 million which could add another 100 points to the dow. that's if we don't see pairing off going on there could be some pressure coming in here right now the dow is up 30 points the s&p is up 3.5, the nasdaq all in record territory. and in case you hadn't heard, coach, the company today announcing it will be changing it's name to tapestry effective october 31st the company says it intends to grow beyond the coach brand and that in tapestry, it has found a name that speaks to creativity and craftsmanship. the company's portfolio right now includes coach, kate spade new york and stewart >> it's doing a google alphabet. >> yeah. that one i wonder about. i kind of like this one -- >> because you like the name tapestry >> i think it does sort of evoke that kind of creativity there.

what doesn't -- >> the company that owns the l.a. times and the chicago transcribe bun, trunk -- >> it sounds like a failed noise that you're making yeah. >> alexa would pick up in the bathroom i don't know >> by the way, i was wondering after coach bought kate spade how they would integrate the brand. would they take the name as some have done. you buy what was perceived to be a stronger brand an interesting way >> i like it it. i do >> but nobody asked. >> coach by the way down about 3% today teams spending some issuing warning signs for retailers. i think i got that right >> courtney reagan joined us with retailers are hot and which are not. >> teens retail span, it's estimated about $830 billion a year 34th biannual team survey shows the group is spending 4% last less than last year overall. they talked to 6,000 teens, they

answered the survey, and it's starting to show cracks in the at leisure apparel trend fewer are for clothing than in the past under armor, the top uncool brand for the guys they say it's an old brand, they no longer wear under armor also only got one vote from the upper income females as the preferred athletic brand piper jeffrey cut estimates and price target as a result nike is still a favorite overall brand for clothing but it's not as on fleek as it once was adidas is getting hotter, but below american eagle which is getting stronger ralph lauren falling out of favor quickly, ugg for the first time in a decade vans is the second most desired footwear brand again this year and a higher share than last year now here's another new one for you, supreme just got a big investment from carlisle group,

between 500 and $600 million reportedly, that lands in the top ten favorite clothing brand for the fist time. back over to you guys. >> courtney, i notice the move in dick's sporting goods earlier, do you think that the drop in under armor in that survey that you mentioned would have anything to do with that? >> yeah, very likely i mean overall teens when they sort of unaid and said what's your favorite brand, they were listing athletic brands less often than last year, under armor was basically the least mentioned, but nike is falling a little bit too adidas grow, but the mind share there is still small and the survey showed also that the kids are looking more at denim and festival wear, that's not something that dick's sporting goods sales and piper jeffrey did move their price target down and lower estimates for under armor. that's pressuring shares today they have fallen pretty sharply over the last year too so this probably isn't breaking news that the kids don't think it's so cool anymore

>> festival wear that's the new athleisure. i hadn't heard that before, but the light bulb's going on here >> thank you >> you got it. we're coming back with closing countdown. wrap up this record breaking day. >> after the bell, we will speak with kkr's henry mcvey about why investors should lean into the iamaetasn rk you're watching cnbc first in business worldwide 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. partner with pgim, the global investment management businesses of prudential.

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coming up the last two minutes of trade for this day and we're in record territory. when you're on the other guy's two yard line, doesn't take much to score another touchdown that's where all three major averages were today. they've been this close to all-time highs even a 30-point gain for the dow, four point gain for the s&p enough to put us in record territory and that's where we are right now. the dow in that level. now, the best performer today and the worst performer today. inside the industrial average, johnson & johnson getting it's second upgrade this week this one from jeffrey's today which called it a dimpbd machine and the stock is up 2% then there's general electric, the woes continue there as it was down another one and a third percent and it reports earnings a week from friday and there are all kinds of hand wringing going on wondering what

kind of numbers are going to be reported for ceo, new ceo john plannery's first earnings report that's next week oil, up today, we're now at the 51 and a third range, even though the iea says we still have a glut of oil on our hands. tell that to the oil market which continues to rise here and then bob, we were watching the mexican peso carefully today when president trump was talking to president justin trudeau maybe it's possible we come up with a deal with canada, but not with mexico, but it didn't bother the mexican peso. which for a time was very much very sensitive anything the president said >> that's not. that's interesting, a market saying we don't believe we're going to lead out mexico just a couple things, i know it's slow moving, we have stocks that never go down anymore historic highs again every single day, these things have been pair bollic for six weeks now.

courtney talking about the team retailers. they're not differentiating anything they're just all down today. one of those days that just sold off the entire group i don't know if that survey had anything to do with it all the banks down today that happened very, very typically in this earnings season >> thanks bob. recording on wall street today, get you set up for earnings and henry mcvey comes up on the second hour of the closing bell. see you tomorrow, kell >> thank you, bill welcome to the closing bell, everybody, i'm kelly evans and another day and yes, some more records were set today on wall street let's get with the dow which was up 40 points on the bell to 22,871, that puts it 130 points away from the 23,000 mark. same percentage gain as you can see there, gain of about 4.5 points for the s&p closing at 2555 today that's a new record close.

nasdaq closing 6600, paced by some big moves higher which was about 2% today the russell 2,000 couldn't join the party, down about one point on the bell there. just below 1507. dollar also moved lower. tendency of correlation there, a lot more to talk about in these markets with the fed minutes out this afternoon between favorable environment, more stable china and booming middle class kkr saying now is the time to lean into asia the head of allocation, henry mcvey will be joining us to explain his call coming up joining me now, cnbc's senior markets commentator michael san toely is back. welcome back >> good to be back

we'll have more in just a moment the broad market, big winner was the seal company newport and the biggest loser of navient by the way, there they are, up 3.5% today and let's look at those financials lower on the back of some rain moves. citigroup same for jpm and bank of america saying the feld could expect gradual rate increases and earnings season for the financials of course kicks into high gear tomorrow with citi and jpm. bank of america and wells come friday, michael. >> seems like really just giving back a very modest measure of the recent gains financials are up something like 8% in the last month obviously it's just kind of resting. and i do think it was because those bond yields you mentioned, kelly. it was basically the long end is kind of sticky, it's not getting up to that level of 2.4% on the ten year and then basically has reason to take profits ahead of those earnings rrt not much to make, slightly defensive tone in trading, but still, mostly at rest in terms

of the broad market, finished marginally on the upside >> right which is the case these days chris, i see that some of your picks here favorite picks of the market are citi and jpmorgan. what do you make of the weakness here >> well, i think that jpmorgan is the best of breed that would be the number one that i look at i think the community banks stand to be the best i look at etf, first trust etf, that i think way you get a real. >> i wonder, chris, what you think about black rock which reported this morning and van guard which gathered more funds this year than in all of last year are those financial type of names equally interesting to you? >> i don't think they are as exciting because you know, well-researched, they are certainly overbought, maybe overgrown, good companies, but i think that you're better off by looking into different places

where they've been underutilized and smaller etfs and active etfs >> black rock finishing up nearly it % today. david kaths, what stuck out to you about the markets today? >> they had a strong market over the last few months. we wouldn't read anything into the day-to-day trading, not read anything into the financials move the day before earnings season look at the last eight quarters, the financials have done well in terms of earnings with beats stocks have declined a little bit before and then they've done better in the upcoming corridor. if you're looking at the financials right now, wouldn't buy them ahead of the earnings we'd buy them after the earnings. >> earnings season, david for you, is it looking like a kind of by the room sell kind of event or how are you potioned? >> i think it's going to be similar to last year which is the last quarter which is the companies will beat expectations they're going to do pretty well in terms of outlook. last quarter what you had is if

a company didn't beat and raise and didn't beat in earnings and revenue. the stock sold off a little bit, and if they missed it, sold off a lot. our best advice to investors is don't buy in front of earnings unless you have a great conviction on a particular name. otherwise, wait for the earnings to come out if the stock sells off a little bit and you still like it, dust settles, then we buy into it. >> all right let's zero into the movers in the markets today. general electric were down 1% after a new note from jpmorgan says a cut is likely ge telling cnbc, the dividend remains a top priority, michael, which didn't rule it out by the way. >> exactly the impression that's being given by ge under the new ceo is that basically everything's on the table. nobody wants to be alarmist about the dividend, but the stock behavior itself was telling you that the market was 100% sure. we had one analyst saying, they think he thinks it could trade down to the high teens

at a stock price of 19, stock has a 5% dividend yield. so that was basically the market's way of saying, we think at least among the prospects out there the dividend gets cut. >> your owners of ge here, what do you think about it? >> we've been buying in the last few months we think that the management change is great over the very near term, we don't have a great conviction about what they're doing in terms of reset. we think they will keep the dividend, but again, unsure if they set the earnings a lot lower they could cut the dividend if you turn the noise down and you have a six to 12 month time, we think the old ceo did a miserable job as the ceo of the company. we had heard good things about plannery we're upbeat and it's hard to imagine the ceo changing a course of a company. it happens more often than not new ceo came in, changed their game plan, it's now 70% higher if you have a six to 12 month timer on ge, expecting better things we would hold it here. if it sells off after the

earnings reset and we're comfortable with the outlook over the next 12 months, we would expect to add to that position >> let's talk about paypal then for a moment they were up nearly 3% one of the best performers did get an update which said quote probably never going to look cheap again up 2.6%, michael >> i can see the argument that it'll never look outright cheap, but it's never been more expensive because it's been a short lifespan as a public company independent of ebay. but 30 something times forward earnings, i think it's a great growth stock in a perfect area of long-term secular growth and the market appreciates it. so the question is not if the stock is cheap ore not, but basically you've already kind of front loaded a lot of that good news, i don't know. >> trading just under $68. name like that attractive to you? >> well certainly paypal has first mover advantage and they've been doing a great job i'd like something cheaper in the space like first data which is sort of similar in some ways.

to me it's a little bit out of our range. no question they've been executing. >> and david, what about you on paypal >> paypal is a great company, when you're north of 50 times earnings, we think you're paying a lot for it we think there are better places in the market. markets had a great run this year now is not the time to chase the growth stocks but rather look at some of the laggards. >> yeah, look at paypal up 71% year to date kroger, different story, it did close higher today after reaffirming it's 2017 forecast earlier and saying a potential sale is just one of the strategic alternatives it plans to explore for it's stores kroger news which had the stock up one and a quarter percent also may be playing into moves higher with target, colgate and walmart today michael all of those kind of surprising basket of names that the market seems to be appreciating here. >> yeah, on one hand, market is sort of somewhat has liked the laggards in trying to go back and maybe left behind. on kroeger in particular, i do think walmart is what must be an

investor's minds the example of walmart was essentially saying, look, the core business is still okay, but we're going to accelerate our investments in, you know, things like delivery and things like these competitive measures to basically make the stores better and to compete better with online, you know, players. sop i think all of that needs to get great to get walmart before everybody realized they had their act together. >> that's what you were saying about mcdonald's too >> absolutely. what you want to look at is businesses likely to succeed in terms of kroger, we definitely have concerns about how they're going to be competitively. if you look at that landscape, our preference would be a target which has a better chance of turning their business around. there should be a place for them in the consumer's wall they've bounced recently, we think there's more to go >> i want to try out this, what do they call it the buy, scan, i don't know, walk out of the store thing. you go around the store and you can kind of pay as you go. i would love it try that i think that's exciting. >> yeah, because wrestling with the self-checkout. >> it's horrible

biggest just horrible experience chris, quickly, what about you and kroger >> i think kroger benefits from the spin-off of their convenience business to my way of looking at it though, i agree, walmart is the way to go. mike had it right. and i think that amazon and whole foods struggle in here >> really? you think they struggle? you would avoid amazon here? >> absolutely. amazon is biting off so much i think the whole thing stocks are probably the biggest risk coming up into earnings, but amazon in particular because, you know, pharmaceuticals, you know, delivery, what else are they going to try? now great company, 238 times earnings, i think imputes quite a bit of a growth curve if they can do it. and i think they're in trouble >> all right we will find out meantime, one of president trump's closest allies and friends out with surprising comments elon moi has the details today

>> kelly, shocked and stunned, that's tom barrett's reaction to president trump's rhetoric in an interview that barrett gave to the washington post that has out today. he is the billionaire investor and friends with trump for decades, he told the post he opposes some of trump's signature positions like the border wall and like the travel ban. and he said that the president has talked to him about this, he's been frank with him >> let him get back to work, take a look at the first 100 days, and then judge him we're judging somebody a week before he's taking office. it's insane. this is a president who is so attune and so smart, drawing clean lines. there's nothing to worry about >> now that was some of the language that tom barrack was using in the weeks and months after president trump was elected, but in the washington post, he said this, quote, who is your base you don't have a natural base. your base now is the world and america, so you have all these constituencies, show them who you really are

in my opinion, president trump is better than this. now barrack was the one who pushed president trump to hire paul manafort, that was trump's former campaign manager. he is now under investigation for his ties to russia the post says that barrack still talks to trump at least once a week and that barrack turned down an offer to join the president's cabinet. there is still speculation though that barrack could be chief of staff if john kelly ever leaves. guys, barrack says that trump is still learning to govern cnbc reached out for his reaction to the story. we have not gotten back with official comment just yet. >> i was surprised as well by the sharp tone of his remarks. it seemed that perhaps what happened with qatar was a big reason that tom barrack is upset with the president lately. >> barrack is someone who is from a town when the country that is now lebanon and he's particularly moved by the plight of syrian refugees and so was troubled by the

president's rhetoric around the middle east, rhetoric toward muslim americans, so that is an area that has been a particular point of strife for both barrack and this president and sometimes going through the media and going through the press is the best way to talk to president trump. >> that is for sure. elon, thank you. michael, what are the rami ramificatio ramifications? >> that seems to be the conclusion the series of expression of disillusionment or these efforts of tough love from people who are allies or would be allies -- >> like bob corker >> essentially people basically saying look, we've given this 11 months or at least let's say nine months of learning the role, it's time to act to try to get results. the implications, there are not high mopes market wise for lots of dramatic legislative achievements so it's not as if i think the markets going to necessarily take it badly, but it is something it seems like the clock is ticking on getting something done >> that's what i was going to ask you, we'll hear from the

president tonight on tax reform. he's meeting with truck drivers and others you're going to take away from this, that that initiative doesn't get done is that a problem for you in terms of investment kps. >> we would not read anything in into this in terms of the economy and stock market to date the market is given the administration the benefit of the doubt. we don't think those comments change that. we think everybody's aware that a lot of these problems are throughout, but for the moment, the market is assuming that the government is not going to do anything bad to the economy and as a result, it's letting the economy and earnings and drive stock prices rather than the government >> all right chris, we'll give you last word on that. >> yes, i think it's a little bit of qatar versus uae and saudi arabia and trump is taking the gulf era side with uae and saudis they are looking at it more from that point of view and again, it's a lot of noise i agree with david, it's not changing anything as far as the administration is concerned.

>> all right guys, thank you for joining us chris and david. let's send it over to a quick market flash >> hi kelly. billionaire investor carl ikahn increasing stake to 26.22% from 24.57% that according to a recent fcc filing shares of her baa life, not moving here, although i would point out, shares of her baa life up 16% year to date, kelly. >> thank you very much now the president is meeting with canadian prime minister justin trudeau earlier today this after the administration unveiled a list of demands that could alienate canada and mexico we'll debate whether those could hurt the u.s. economy. plus head of global investors says it's time to lean in on save that. find out why he thinks china has already bottomed coming up and we want to hear from you. share your thoughts about the show via twitter, facebook, or

u' wchg an e-mail. yoreatincnbc first in business worldwide once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. [and her new business: i do, to jeanetgo. jeanette was excellent at marrying people. but had trouble getting paid. not a good time, jeanette. even worse. now i'm uncomfortable. but here's the good news, jeanette got quickbooks. send that invoice, jeanette. looks like they viewed it. and, ta-da! paid twice as fast. oh, she's an efficient officiant. way to grow, jeanette.

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throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. just, uh one second voice guy. [ bloop ] huh? hey? i paused it. bam, family time. so how is everyone? find your awesome with xfinity xfi and change the way you wifi. welcome back the white house plans to make new demands for renegotiation of

nafta that could face strong opposition from canada and mexico as well as many u.s. businesses we have those details, kayla >> kelly, u.s. trade officials this week are expected to put forth new proposals seen as so contentious by lawmakers, business lobbies, and the other nafta countries that someone suggested the white house is purposefully putting out so-called deal breakers to justify backing out. dan's prime minister justin trudeau held a closed door meeting with congress. uneasy alliance with both parties wanting to preserve the deal without major disruptions following an hour-long discussion about nafta, trudeau visited with the president who called trudeau a very good friend, but didn't back down from his prior criticism >> i've been opposed to nafta far long time in terms of the fairness of nafta. i said we'll renegotiate and i mean, i think justin understands this we can make a deal it'll be terminated they're going to do well, we're going to do well maybe that won't be necessary.

>> one idea floated by president trump, do a new deal with canada that excludes mexico trump has been congenial with trudeau and praised pipelines that transport oil between the two countries, but even so, his administration has action against the lumber, dairy, and airline industries unclear how that would work out. the three countries extended this round of negotiations that begins today by two days it now ends next tuesday president trump says the outcome of nafta will be known, quote, in the not too distant future, like most of his sentences, that ended with an ellipsis >> nice use of ellipsis. kayla, thank you very much for more on nafta, we're joined by jimmy, a columnist. thank you both for being here. jimmy, i saw that you called the potential of the u.s. pulling out of the nafta a quote,

catastrophic success what do you mean by that >> listen, if you view success, ending this trade deal whichth president driving budget or trade deficits then yeah, i guess that's the success. all of the things -- if you wanted out of this deal, all the things that the president said that he wants. are exactly the things you try to negotiate to kill a deal. so it's hard to not at least think that he at least wants to give the impression he wants to kill this deal hopefully to get a better deal i don't think we are going to get a better deal by that. >> do you think he would pull the u.s. out >> i would days agree that we we saw from the president is a poison pill. i look at them as negotiating shades listen, this is a president who really came into the presidency saying he was going to pull out of nafta he's called nafta every single name in the book, here we are ten months later still

negotiating some of these principles if someone wanted to pull us out, they wouldn't spend all of their time groeshting, moving on to another agenda item i don't share really this idea that what the president is the trying to do is get us moving away from a trade deal, i think it's very characteristic of what we've seen from him in the past. which is that he really goes, moves forward with full throated bravado and negotiates with that >> jimmy, i think it was interesting that you said here, let me just so the viewers know, with the rest of his agenda stalled, killing nafta might be one of the few ways to score a win. do you think that the chances of this are higher now because we haven't seen a lot of those big initiative items getting a lot of traction? >> yeah, i think absolutely. one key part of tax reform that the republicans propose was the sort of border adjustment which republicans, congressional republicans were selling to trump as a way of dealing with trade without being pretentious, without pulling out of nafta

they've dumped the border adjustments. that's gone. that in itself heightened the odds of doing something like this on trade. and with again, with health care not happening, with tax reform struggling, i think this could be something that you could do to implement chaz an important part of his agenda from during the campaign >> if you think that these are just opening negotiating positions by the president by the administration, where does it ultimately land i mean, where practically speaking could there be a result of such a negotiation that's going to be satisfactorily to the president and to the partners >> i think this is an interesting point that jimmy just raised which is what happens with base adjustment, excuse me border adjustment because we have a question of what happens to base erosion and whether or not companies are staying here or going abroad now i would argue that that is a conversation that will continue to happen in tax reform. something that is both tax reform and in the free trade discussion is that president trump has said time and time again he wants the united states

to be best place to do business. and that's how he approaches both the tax reform debate and the trade discussion so, i'm a little sprietzed about the pessimism both in the markets and in washington this week about tax reform getting done, the senate will be back next week, it will likely pass it's budget swiftly which is the first step in tax reform and we'll see a lot of momentum going on from there. i don't think that trump needs a win on trade in the way that james is characterizing it and i think we'll continue to see momentum on tax reform next week >> jimmy >> yeah, listen, i think you need to look at these policies on a risk-adjusted basis what is the risk of what's happening in trade what is the downside of risk what is the upside this was already a good deal, and you're threatening to blow it up. and what would be -- what would be gained? very little would be gained and you're risking a whole lot i see this throughout the trump administration that we're taking big risks and really end up scoring goals against ourself for very little potential upside this is a perfect example of

doing that i'm concerned. >> last word >> if you're looking at nafta and arguing that it doesn't need to be modernized at all, that's an unserious position -- >> yeah, but the pacific trade deal modernized it >> 1994, the internet was embryonic. >> come on >> stale lot of work to be done to keep america competitive. not saying we should blow up nafta -- >> blowing up the supply chains is not keeping us competitive. it's not going to make us competitive. >> i agree, and i don't think trump is trying to do that >> did you see that tom barrack suggested that it should not make america great again, but make the americas great again. >> i think that's a creative spin on it >> anti-trump position >> i don't know if that's the best moving forward. >> thank you both. appreciate your joining us and we'll see what happens with nafta from here. that's maddie and jimmy. james i should say let's get over to julia, she

has new developments on the weinstein company, what now, julia? >> more fallout in the allegations that harvey weinstein sexually harassed many women over the course of several decades. dow jones now reporting that the weinstein company is considering delaying the release of the current war, it was slated to be released in november they're considering releasing it next year. this film star iring benedict cumberbatch. technicolor, which post-production work on films is stopping extending credit to the weinstein company. also just moments ago, the academy of motion picture arts and sciences, which runs the oscars says it's olding a special meeting on october 14th, that's saturday, to discuss the allegations against weinstein and any actions warranted by the academy saying that allegations are ant theft call to the high standards of the economy and the creative community it represents so certainly this is going to be very interesting to watch. we wonder if they could potentially take away his oscars

back over to you >> it goes back to a conversation we had yesterday talking about whether the company will be viable after his -- after all that's happened after he leaves. for now, julia, thank you. recent report finds virtual reality growth is slowing. may take a long time to become mainstream, but facebook founder mark zuckerberg is opening they can bring it to the masses we will get his strategy for that coming up hold on to your wallets, amazon is opening accounts to teens. with a risk. or sort of a -- well, we'll tell you what's goingn. o details are coming up right after this sarah: every year we take a girl's trip. remember nashville? both: kimchi bbq! amazing honky-tonk! i can't believe you got us tickets! i did. i didn't pay for anything. (sigh) you never do. send me what i owe. i've got it. i mean, you did find money to buy those boots. (alert beep) are you serious? is that why you don't like them? those boots could make a unicorn cry. yeah! tears of joy. (groan) pay back a friend day is october 17th.

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welcome back it's time now for cnbc news update with sue herrara, hi again, sue >> hi kelly. here's what's happening at this hour boy scouts announcing plans to admit girls into the cub scouts starting next year and to establish new programs for older girls that will enable them to earn the highest rank of eagle scout. the boy scouts board of directors unanimously approving that plan. tens of thousands of islanders have left puerto rico for the u.s. mainland to escape the immediate aftermath of the storm hurricane maria. 85% of residents still lack electricity, 40% are still without running water. florida says more than 20,000 have come to that state since october 3rd. general mills is recalling some cereal due an undeclared nut allergen it recovers two days of production of organic cinnamon

raisin granola produced on july 15th and july 16th of this year. and on a completely different note, a small asteroid thought to be only 50 to 100 feet in size is going to pass close to the earth tomorrow according to nasa, the rock will zoom by at a distance of about 26,000 miles no risk of impact, they say. the asteroid was discovered in 2012 that's the news update this hour kelly, back to you >> always freaks me out regardless >> 26,000 miles, is that not far away. >> that's not far in space terms. >> in space terms. >> right next door, thank you very much. >> you got it. see you tomorrow time now for a fast take today. we have a lot to cover here. move over gps, it is a qzss world now. japan this week launched satellites to allow down to the centimeter, michael.

it gets blocked by tokyo's tall buildings and military implications too which has me wondering if this will start a mapping arms race. >> i think it's under way. by the way if satellite imagery can be that precise, i think 26,000 miles is well, you know, outside the margin of error for how close an asteroid's going to get to earth i think it's interesting because everyone knows where the world is going in terms of automated cars and other applications you want what's needed to get there is obviously superprecise and reliable mapping also reminds me of when the fiber buildout, you know, first stage of the internet, it was like what we know the usage is going to go up tremendously, what has to happen well we have to dig up the ground and bury fieb per. >> that leads us into our next story. speaking of maps, the dominant one is google maps there is a potential disrupter, it's just raised more money including from soft bank there are tons of businesses, like uber and lyft that depend on this maps not to mention it's one of the most used apps. >> maybe the model of google

should be doing be evil and stay worried. everybody wants a piece what have you have. it seems to me that, you know, the world of applications is going to get so huge, different techniques in terms of getting at it. a lot of this is really local, sensing where you are -- >> sure. >> giving you context. >> if they were to lose market share there, is that a big enough problem for google that they need to spend to defend that >> you know, i think no more than they're otherwise spending. they're spending a lot of noun stay on your phone, getting a dedicated app. maybe that's where it's going to get more expensive >> that's true and could be good for some of android, it could be good for iphone too. we shall see >> next, explain to me michael why they're issuing stock and why the share price today has barely budged on that news closed lower, less than 1% >> pay down and debt fees. opportunistic, also why does stock absorb it well a billion dollars, the average daily volume turnover in dollar terms might contemplate a billion and a half a day

there's demand for a billionaire worth of stock a day a billion dollars in the new offering is about 2% of the market value you're paying down debt. basically people say look, it's just a little quick opportunistic way to firm up the balance sheet a little bit and it shows you sentiment's okay towards this space. >> eni think that's the interesting tell from that as well finally a way for your teens to use your amazon account and for you to turn down their purchases. that's the asterisk i was trying to say earlier amazon will let kids 13 through 17 use household accounts, but parents will be notified by text or e-mail and can approve or deny each one. you respond why to allow the purchase or end to block it. what do you think about this move >> i do think it's good -- first of all, i think there is already a way to deny the purchase dhoz say, don't use my account, right? this is more of an automated way to do it or send a dollar limit which is interesting for the teem to say you have an allowance per month that you could spend up to it does make sense for amazon and it is a big help because you

have one individual buyer, you know who that buyer on the skt you can tailor offerings to them they want more data on individuals, it's kind of like netflix, one account, but you have different people to log in. >> i think the tools are creative i think it's smart strategy and i want to know how many y's and n's are coming >> probably. let's go to another market flash. >> draw your attention to shares of j. jill, that's the specialty clothing retailer issuing disappointing guidance the company for the third quarter sees the company expecting total company comp sales negative three to negative 5% the ceo says we have experienced a lower than expected sales trend across both our retail and direct channels. now just keep in mind this is a small cap. company with a market cap of less than 500 million, but nonetheless, a big move to the downside here. down 38% here in extending trade. kelly. >> all right, thank you. mike, it's ban while since i've seen a company lose 40%. >> brutal.

this was ipo -- >> of this year? >> seven months ago, didn't trade well initially the bullish case is they could adapt to the online world. obviously investors not sticking around >> wow, jill trading just over six bucks after hours. we'll continue to follow that. japan's stock market closing at the highest level since december of 1996, but our next guest is saying it's not just japan that's caught his attention. henry mcvey explains why he think china as bottomed and why it's time for investors to lean in on asia later, deadly wild fires continue to threaten thousands of homes and a massive wine industry for the latest on the ground there stay with us

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my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. welcome back to more record highs on wall street the dow, s&p, and nasdaq awesome closing at new records for the dow it was 2872, more than 100 points away from 23,000. for the s&p, 2555 for the nasdaq there i believe over 6600 small gains all around while the russell did dip today. kkr detailed economic trends in asia and stressing that

investors should be leaning into asia markets right now china's gdp bottomed and strong productivity could lead to rapid growth joining us is henry mcvey, head of kkr thank you for joining us >> glad to be here >> so do you, lean into iowa ha is so broad, what's the best opportunity? >> i think it's interesting in just in erms it of history as a firm, our roots are in the u.s. private equity, today we'll put more money to work this year in asia than we will probably in the u.s. so it's become really i would say just a huge franchise for us couple things i'd highlight. number one is this -- i call decon glomization, really ground zero is japan. look at the nikkei 400, 25% of that index has 100 or more subsidiaries and a lot have 300 or more and so they're starting to divest that image public, you've

seen us partner with health care, pioneer, big corporate names. people we know globally. we've been working with them on restructuring those businesses and also taking them abroad. so that would be number one as you mentioned also, just the rise of the middle class -- >> that is so out there. >> what are the ways in which -- the chinese markets were cratering and i could see big opportunities, where do you see the potential today? >> i would say well we've been focussed really on protein, i'd say the biggest thing we've been doing is environmental safety. i think the government you see they started to shrink supply. it does three things one it makes the citizens happy two is it actually raises prices, it's increased profitability, and then the third things, it's helped with some of the bad debt so that should be a significant area of focus. then globally across the region,

we've been very involved in health care. so you see the gdp per capita go up and obviously people just want basic health care needs around areas such as hospitals and just health care delivery. then take something like japan, these are really mature health care companies that want to expand abroad, that's been an area of focus. >> you make the case too that emerging asia perhaps is underappreciated in terms of the growth rate and how sustainable that might be. >> right >> i just wonder about investors, institutional investors about it's not like the old days, it's not like they're dependent on foreign capital and all that are you saying that it's still underappreciated from an investment point of view that this can last a while. >> all right michael, all right. generally these cycles generally last five to seven years we think, i think we really didn't talk about this last year that 2016 kind of marked the bottom we think we're up 20%, but we think we've got much more room to run there are a couple things we are

watching as well one is ultimately from 2009 to 2016, 84% of your return, you lost by your currency devaluing. and so if you think the dollar is in a kind of plateau to potentially contracting mode, that's pretty interesting from our standpoint so less hedge in cost, greater tail winds, and then i go back to -- i was in indonesia right around the temper tantrum, and at that time we were meeting with banks and they were at a mind set this is a one off they all got disciplined after that if you look today the deficits in asia are smaller, rates are higher >> can you take their democratic posture for granted these days you have a lot of concerns about it's not just about the population and whether they're going to transition from one status as an emerging economy to another. it feels like fundamental questions about laws and rights and -- >> that's a global trend >> well -- >> i would tell you, i nineteen asia, i think we have one

executive that's actually u.s., everybody else is local across the number of offices that we have there so absolutely agree and you want to line up, go back to what i said about china environment is important to the people of china. so you want to be investing behind that, doing something today that the chinese government may view as, you know, a block is not where you would want to go so you've got to be local, you have to have local presences and you've got to think about long-term trends where the government actually. >> reporter: -- >> we have to go is there any way for you guys to think strategically about the risks there to china to avoid them or do you just have to kind of wait and see altogether >> i mean, one is the market is not anticipating that if you looked at cvs or some of the different things, the market is saying there won't be a big event. that's something we've certainly taken in mind. you can hedge, but in general, our base view would be that this does kind of boil up actually and then we start to have a

thing. i would say, businesses that we're trying to get involved with though largely have operational improvement. they're not -- it's not just a pure bet on, you know, that you have to have peace in that part of the world >> henry, cover a lot of ground there. thank you for joining us >> absolutely. >> get to get your update. henry mcvey. deadly wild fires are still tearing across california's wine country. vaatn ghafr is latest on that destiorit teth [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

at least 21 people have died and thousands of homes and businesses have been destroyed as a result of the wild fires up in california's wine country we are in napa with the latest there. >> reporter: hi, kelly, we are at the estate here in napa this is one of 3,500 structures that have been destroyed by the wild fires little remains what have used to be a beautiful tasting room, instead what's left is a charred file cabinet, you could barely recognize these wine bottles behind me, they are brittle to the touch and concrete wall that's just buckled to the ground we just talked to the owner of this winery, and he says while he is obviously devastated, he remains hopeful that they will be able to move forward. >> yeah, i just kind of look at this and say, this, i can rebuild. i will rebuild and you know, take me a year or two, and i'm just trying to look at it in that positively that it could have been a lot worse for us and other people are going

through some really tough times right now. >> reporter: together napa and sonoma account for nearly 700 wineries produce nearly 100 grape varieties and 10% of total california wine production all of that obviously has a big economic impact according to to the wine institute last year california produced $34 billion worth of wine and the wine industry in this state generates $114 billion worth of economic impact in the u.s. the silver lining to all of this, of course, is that the bulk of the harvest is already in wine insiders tell me that if this happened one month ago, it would have been far more devastating, back to you >> i don't know if that's a silver lining, but i'm wondering about the number of fires that spread and we talked the other day about the wind making them so deadly. have they now mostly been contained or are they over i mean, was it just kind of a rapid burst that came and went, or where do things stand >> reporter: unfortunately it's a little bit more nuanced than

that, there were high winds, early part of the twheek helped spread this fire in fact, some of the wine experts were telling me wineries have all of these big vineyards right, which is the largest fenceable green space that helps protect them, but in this case, that didn't protect them in this case that didn't happen. we understand that later tonight, those winds will be picking up those fires are far from over. it's still very precarious overnight, between last night and this morning, they had more evacuations in nearby calistoga. it's still a volatile situation. >> it's tragic thank you, aditi roy in napa not even two major price cuts have helped the oculus rift break into the mainstream. with growth slowing in the vr market, can facebook's mark zuckerberg save the device we'll ask next one famed tech investor will tell us what he says is the best onhtn play apple, tig o "fast money. dan niles will join the crew

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mark zuckerberg taking the stage at facebook's annual ok ocul ocul oculus connect event julia boorstin has the highlights >> reporter: mark zuckerberg didn't comment on his tone deafness last week he's focusing on get 1 billion people into vr >> oculus is the most accessible vr experience ever it's an all in one headset it's great for playing games, watching movies, and hanging out

with friends and the price is only $199 >> reporter: this year has been peppered with headlines questioning oculus's traction. e-marketers say growth is slowing. rival playstation sold 1 million headsets by mid-year oculus hasn't released sales numbers for the rift, numbers are estimated to be far less than that. zuckerberg stuck by the value of his $3 billion acquisition of oculus >> i am more committed than ever to the future of virtual reality. it's not about escaping reality. it's about making it better. it's about curing diseases, connecting families, spreading empathy, prethinking work, improving games, and yes, bringing us all closer together. >> reporter: today oculus opened its platform for different uses, introducing oculus home to help bring vr into decorating and the

like, and oculus for biz. >> i do like the decorating one. i tried to using the magnolia app yesterday and couldn't get it you can put things from the store on the table anyway, hopefully the technology will get better. it needs improvement right now julia, thank you julia boorstin on oculus today's closing word is time we'll have the reasons why, next also be sure to tune into "squawk box" tomorrow, treasury secretary steve mnuchin will join them for an exclusive interview.

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it's time now for today's closing word today the word is time iconic magazine publisher time inc. is working to adapt to the rapidly evolving media landscape. time says it will reduce the circulation of hits flagship "time" magazine, scaling back the number of issues and will cut the frequency of other titles, reducing "sports illustrated" number of issues

per year americans currently spend just 16 minutes a day reading magazines, down eight minutes over the past seven years. on the flip side, digital consumption is surging americans spend three hours a day on their smartphones content creators are working to capitalize this week a blog hosting site announced all writers can put their posts behind a pay wall and will get paid for articles based on engagement. the company's goal is to become the world's best source for stories and ideas. will it keep people's attention in a world of shrinking attention spans? michael, only time will tell >> exactly what strikes me, consumer package goods, folgers going from 16 ounces to 13 ounces, they hope people consume the same amount of product but with a different form and lower cost. weekly is extremely tough in news because you're supposed to be kind of current but also

expansive. with medium that could be niche, you could find a small audience and maybe make a living at it. >> this is as important as when blogs first came onto the scene. if you're making it so easy for anyone generating content to get paid for that, that could have a tremendous impact. >> it could. it will also calls a lot of people to be disappointed. >> fair enough thank you, michael that does it for "closing bell" today, "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," it's been one month since apple released its next generation of iphones it hasn't exactly been a super cycle for the stock. why did tech investor dan niles just buy shares? he'll be here to explain there's one stock in the group that dan nathan says is about to break ou