podium it was a relaxed, comfortable amiable performance, as he tamped down that he was resigning, submitted his resignati resignation, he said it was not his favorite job, his favorite job was being a staff sergeant in the marine, but it's a tough job. >> "closing bell" begins now quite a guy for that to be his favorite job, you know sounds like a nightmare. that's john kelly. welcome to the closing bell. i'm kelly evans. >> this is my favorite job i'm big griffith earnings season kicked into high gear jpmorgan and citi group reported numbers, both beat expectations, however as you see, they are both trading lower, citi down 3% we'll tell you why and we have a

debate on whether investors should be buying this weakness before other banks report. citi had been trading at an intraday high in the session earlier. >> yes >> equifax shares dropping on reports of another hack. we'll bring you those details and how the company is responding shares down about 1.25%. >> as i said on twitter, what's left to steal. >> i'm one of these idiots, if you may, who signed up for the whole thing. yeah >> president trump signing an executive order, you saw it live on cnbc, regarding healthcare. we'll tell you what's in the order and we'll get reaction from that man, the former ceo of aetna, ron williams will join us to talk about whether he would -- if he was still running aetna, would he participate in the plan that's being brought up in this executive order? but we begin in washington with that surprise appearance moments ago at the white house press briefing eamon javers was there to witness it he has more on the story

>> you're right. it was a dramatic moment in the white house press briefing room as the white house chief of staff appeared unannounced to put to rest rumors that he may be resigning or leaving the white house soon here's how john kelly put it to reporters a few moments ago. >> i'm not quitting. i'm not getting fired. and i don't think i'll fire anyone tomorrow. >> he also addressed his role here and his relationship with the president in terms of tweets the president's flow of information, and how he views his job. here's what kelly said on that point. >> i was not sent in to or brought in to control him. you should not measure my effectiveness as a chief of staff by what you think i should be doing, but simply the fact is i can guarantee to you that he is now presented with options, well thought out options, those options are discussed in detail with his team. then he comes up with the right

decision >> so kelly there by implication saying the president was perhaps not presented with well thought out options but saying now he is presented with well thought out options when he makes decisions. kelly saying his job is not to control the president's tweets, the message sends out, but to control the flow of information that gets to the president to make sure there's high quality information getting to the president of the united states the chief of staff also expressing frustration as we have heard other white house officials do with the media saying the president is frustrated with you people, pointing to the crowd of reporters in the room, but not taking the combative tone we've seen from other white house officials. we've seen him off the record from time to time, but this is john kelly taking on a more high profile role he said he's willing to do it now that he got his sea legs and got a feel for the job of white house chief of staff, but laying

to bed rumors that he may be leaving. >> this a week after the secretary of state held a news conference saying the same thing. >> there's been a lot of speculation, the white house saying it's all speculation and noise, it's unwarranted, john kelly saying you have to get better source when you report this stuff, but the fact is this white house already had an enormous amount of turnover. we've seen communications directors, press secretary, national security adviser and others departing here, chief of staff all departing here over the course of a year that's an extraordinary amount of turnover for any administration and part of the reason why reporters are digging in on this idea of who may be next to go >> we'll see if the charm offensive worked to equifax whose shares are falling as the company looks into a potential new hack. josh lipton what is it

>> equifax has already seen its stock drop more than 20% since revelations hit about that massive breach stock falling again now. the company saying it may have suffered another breach telling cnbc we are aware of the situation identified opt equifax.com website in the credit report assistance link. our i.t. and security teams are look nooing into this matter, of an abundance of caution we have temporarily taken this page offline. so they have disabled one of their customer help pages, that's after an independent security analyst said he noticed a possible real serious issue, when he went to the site he found attackers were trying to trick visitors into downloading fraudulent software. this all comes after equifax disclosed that hack that exposed the personal information of nearly 150 million people. that hack, we know, has led to

multiple federal and state investigations ceo richard smith went to capitol hill last week where he was grilled for hours about the attack smith said at the time he was ultimately responsible for what happened there equifax announced the retirement of smith on september 26th back to you. >> as you mentioned, not a huge move in the share price but another blow to equifax. the banks reported earnings this morning. jpmorgan and citi both lower now, even though they beat on earnings, even though citi hit an intraday high at first in the session. wilfred frost is here to dig into the reports and talk about the stock reaction >> so, although jpmorgan and citi beat eps estimates, both companies trading lower as investors focus on competition and consumer lines, especially credit cards citi increased reserves in cards by 500 million, and saw softer revenues in branded cars, which

was down more to pricing than volume jpmorgan increased card provisions by 3$300 million, boh say credit trends remain benign. cost control was good for jpmorgan, citi's expense to ratio revenue was flat ci citi's trading value was down 11% compared to 21% for jpmorgan comps were tougher for jpmorgan and revenues higher overall. citi's ceo was upbeat about prospects for deregulation >> the vast majority doesn't require legislative or legal changes to existing rules or law. it's in many ways the tone from the top and the prioritization of the agencies which again, as we've said, we think is constructive for the banking and business environment

>> jpmorgan's ceo, jamie dimon, said if we had done tax reform five years ago we would be growing much faster, and suggested it would boost jobs and wages at jpmorgan. both down near session lows as we speak >> before you go, i saw one of your tweets, it was a while before jamie dimon participated in the call. you were wondering if he would participate. he has said now he's done talking about bitcoin. >> he did, indeed. >> are they reigning him in here. >> that would be my take away from this. reigning him in for one call, i doubt it will work forever on the bitcoin point, pressed given the fact it has gone through 5,000 this morning he said i'm not talking about it anymore, it's one of the least important things right now the ceo said it is something they could look at trading in the future provided it's regulated. that's a step down relative to

the strong rhetoric jamie dimon had against bitcoin about six weeks ago. >> we'll have more on bitcoin later. thank you, wilf. >> thanks. to the markets now minus signs for the major averages after the big three hit all-time highs yesterday the dow down about 30 points joining our "closing bell" exchange, meg green from meg green and associates steve grasso is sitting next to us, and rick santelli joining us from the cme in chicago. why do you think the banks fell even after those -- i know the trading revenue at jpmorgan disappointed, but overall decent numbers. yell down today. >> loan growth has been decelerating if you look at the bank trade it was built on rising rate environment and lower corporate taxes. if you don't have confirmation on either one of those things, then the natural thing is to

trade off. there's is also the trade off the rumors, trade off where you think the puck is going, once you know where the puck is going, calibrate and look at environment. if you look at the xlf, the financial etf, if you gauge it before the election, it's outperformed it's up 37%. it looks like a laggard, it is not a laggard if you go back a month before the beginning of the year >> meg what about you? you typically like to invest in what you use, own or sort of know firsthand >> i'm a big believer in letting money managers pick the portfolios it's way too hard. i'm over indexing and over the etfs if you find companies you believe in, companies that you use or you put up two companies that have to be favorites of mine, this is not touting it to anyone, but one is up over 70%, the other over 67% year-to-date,

it's tough to be jumping in. i say look for the corrections that will be coming, and they are, you keep some powder dry. cash is at an all-time high. it's really up there if you can get to the point where you can find companies that you like to collect, i'm not a trader i let my money managers trade. mike green and associates have one platform and put different money managers on that platform and manage the managers watching what they're doing picking up stocks like tesla and payp paypal, i don't know if this is the right price today but i would be collecting them in a portfolio. >> i was going to say, those of you listening on satellite radio, you don't see the two graphics of tesla and paypal rick, let's turn your attend smun to the currency markets the british pound hopping on that report out of germany that the eu will offer the uk a two-year extension to remain in

the eu with some strings attached an impressive gain for the pound today. >> yeah. very impressive gain for the pound. a real disaster for those who voted for brexit sounds good, maybe it made the pound pop, but at the end of the day, i don't know. that's a lifeline that nobody will be grabbing i find it so fascinating that yields have closed down today when ppi was hot, hot, hot and the market response was not, not, not that tells me tomorrow's cpi, much more viewed than ppi and much more important to many investors comes in near the temperature of today's ppi, especially the year over year metrics, i think the markets will pay close attention, especially being a friday and in front of the weekend the other issue that i find fascinating, whether it was citi, jpmorgan, the fact that trading revenue is not impressing anymore at a time where we have historic low

volatile unt volatili volatility, i don't think investors could be better off. the old days, volatility took crumbs off the cake that passed on to the investor sometimes it is a zero sum game. the more the big banks don't do well in trading, the more happy dancing the investors will be doing. >> on that theme -- >> happy dancing >> thanks. >> i'm still working on the cake >> we have seen a move lower today. i wonder is there more attention on what's happened with rates? rick mentioned earlier how strong the 30-year auction was is this becoming more of a worry? what happens if we don't see a substantial move higher? >> i think people were worried about rates going higher now it's more of a dovish slant we're seeing we see the dollar rolled over, ten-year didn't confirm rates moving higher in december. the financials have not confirmed that

i think all of that makes you want to go more into equities if that's the head wind you were worried about, you have to get into the equity market that's just my -- in my humble opinion, crumbs off the top of the cake >> do you try to get the financials out of there? great, low rates, i wanted to be in equities except the financials >> right >> you have to go with -- everyone looks at rotation rotation has not happened, though it was for a little bit of september it's still those large cap tech names, whether it's china, large cap tech >> thank you guys. see you later. >> about 45 minutes to go to the close. so coming up, president trump signing an executive order today

that could have major implications for the future of healthcare we'll have the details and we'll speak with former aetna chair and ceo ron williams on the impact on insure sgleers >> later, sheryl sandberg sat down with axios today. we'll talk with axios executive editor mike allen about what she told him in that interview reach out to us on twitter, facebook let's put a phone number up there. >> could you imagine >> steve grasso's number or something. you're watching cnbc, first in business worldwide

what are the ingredients of a life well lived? is it the places you go? the things you own? or the people that fill it with meaning? for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions. protecting what's most important to you. that's the power of pacific. ask a financial advisor about pacific life.

. welcome back president trump signing an executive order today to change certain parts of the affordable care act kayla tausche has more >> the president was flanked by agencies he was directing to expand a few different types of health insurance first association health plans, second, short-term plans used by people in between jobs, and

third tax-friendly employer-funded plans called hra's. the president says the order will improve choice and competition and allow insurance to be sold across state lines. >> change aimed at creating more and lower prices for millions of americans. but the competition will be staggering hurns companies will be fighting to get every single person signed up, you will be hopefully negotiating, negotiating, negotiating. and you'll get such low prices for such great care. >> critics of the order say this is just more of the administration's efforts to dismantle obamacare and will make insurance more expensive for people who are sicker. a senior administration official tells reporters it will take several months for the order to result in new regulations regarding health insurance

because the agencies have 180 days, six months, to prove their findings to the president. mitch mcconnell said he was pleased that the administration was taking action, this comes in action of a come comprehensive reform package being passed on healthcare john kelly today addressed that. >> had the big bill passed, all of that could have been taken care of. since the big bill didn't pass, we probably won't have a healthcare bill until, say, the spring, this was a way to take care of as many americans as he could legally with an executive order. >> the white house is trying to get the ball rolling on some of these issues in the meantime senators are still working on a potential bipartisan bill, a smaller bill that would be a short-term stabilization. that stalled multiple times,

we're still waiting to see whether that will see the light of day >> okay. as we all know, i confuse easily how does this square with the -- with whatever bill they might come up with in congress this would seem to be an overall of obamacare in certain areas, certain cases. this is what congress seemed to be trying to do in a limited fashion, yes >> sure. it would appeal this is calling for wholesale changes, but like many executive orders that have come out of the white house, it's a long-term homework assignment it gives the agencies 180 days to study some changes, provide the administration with suggestions on how to increase competition, but exhibits the inpatience of the president. he's sick of congress not putting forth a bill that could pass he's promised voters and members of congress promised their voters, and he feels like the white house needed to do something to get this moving

you saw senator rand paul from kentucky, he was standing by the president and there's an expectation that because the white house did this, at some point when they do put a comprehensive bill forward, rand paul will now be a yes that's important >> that is interesting i was going to ask you if this would put the onus on congress do something again if rand paul is flipping, does that open a path >> they did let the opportunity expire in september to do healthcare with only republican votes. now they're trying to use that special ability with tax reform. so they'll have to wait until next year to get that ability back, unless they do a bipartisan fix, which still seems unlikely it would have to be a new type of plan introduced next year, but this is a potentially important development in bricking over a critic of the

previous plan into the yes camp. >> more of the byzantine workings of washington coming up later, we'll talk with the former ceo of aetna, ron williams, he's back with us and we'll ask him about some of these changes talked about in that executive order shares of spark therapeutics have been halted as the fda reviews that company's gene therapy treatment for a particular eye disease the fda panel just voted meg tirrell, give us the details. >> it was 16-0 unanimously in favor from the outside panel of fda advisers on the sparks gene therapy trial. this is for a rare inherited form of blindness that affects few people this would be a landmark moment in medicine if the fda does approve this drug

this would be the first gene therapy on the market in the united states. gene therapy is aimed to be a one-time treatment where you deliver a healthy copy of a gene to fix an underlying genetic problem. spark therapeutics has the drug at fda shares have one up significantly into today people were expecting a positive handling here at the fda, that's what we saw. we don't know when spark share also reopen. i want to introduce you to a couple patients we talked to last year. karen and cole carpenter listen to how she described her vision before. brfrnlgt, >> before, i couldn't see snow, the little snowflakes, and then

i went outside when it was snowing, and i was like, oh, i can see the snowflakes what is that like? >> it's cool, to see something i haven't seen in my life before. >> both caroline and her brother cole were expected to go blind eventually, and they were able to do these clinical trials. it's exciting news >> so this is revolutionary. we have done all the work on genetics and things, now here's an example of an application using gene therapy does this open the floodgates? is there more in the pipeline? >> there's a lot of companies working in this space. it's been decades in the making to get here. a lot of setbacks, safety things to work through, but a lot of other companies from bluebird bio to pfizer, which has cooperation with spark in another area there's a lot going on and we will see more of this. >> this company, spark

therapeutics, we'll keep an eye on it. thanks, meg. >> thanks. with minus signs for the major averages today so far, we're down 26 points on the dow. coming up, paris and beijing have an air quality problem. both cities have similar plans to try to curb that air pollution. we'll give you details on that coming up. later, bank of america and wells fargo report earnings tomorrow before the bell we have a banks debate with a trader who says the whole sector is overloved and overpriced. [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.

listen to this paris authorities are planning to banish all petrol and diesel-fueled cars, what we would call combustion engines from that city by 2030 paris city hall says this is a feasible deadline to phase out those combustion engine cars as the city already established car-free days as well as no car zones in an effort to reduce the emissions of greenhouse gases there. the previous deadline was 2040 so they moved it up by a full

decade the "wall street journal" is reporting that beijing is also studying a move to ban gas-fueled cars as china hopes to become an export powerhouse of new energy viehicles. >> in some cases this is self-serving >> that is, yes. >> china want to supplant detroit. if you're gm, you think about your strategy. they went big into china, it's still a status system to have a gas powered vehicle. ultimately whether the air is cleaner as a result of this depends on where the power is coming from. >> california has been ahead of this, trying to reduce the number of gas powered cars and increase the number of electric

cars >> new york city air is pretty darn good with just petrol >> with petrol. a news alert on hyatt hotels seema mody is at big board with detai details. >> new's data breach at hyatt hotels it involves unauthorized access to payment card information from cards manually entered or swiped at front desk of certain hyatt managed locations between march 18th and july 2nd of 2017.tfectn the website. about 41 hotels affected a small percentage of the total number of payment cards, certainly another data breach to follow we saw hyatt hotel stock move lower on the news. back to you. >> another hour, another breach. thank you very much. seema mody time for a cnbc news update, let's get over to sue herera.

could there be more allegations of sex abuse against harvey weinstein that's the question detectives in new york and london are trying to answer both departments are taking a second look through files to check for past complaints involving the hollywood producer officials say the death toll in the california wildfires has risen to 26 people making these storms the deadliest in 84 years. that number could rise as recovery teams continue to search for bodies inside the charred remains of homes devastated by the wildfires. target is expanding its partnership with google express to all stores nationwide its credit card holders will save 5% when shopping via google express starting next year walmart is also a google voice partner. no matter how many times we see these reunions, they never get old. a dad from minnesota surprised his young son at school after being deployed with the air

force for more than eight months such a great moment. >> i can't imagine how exciting that must be for that little boy. look up and see dad. >> favorite story of the day >> absolutely. getting goosebumps >> i know. thank you. >> you got it. up next, facebook coo sheryl sandberg telling axios the company is angry and upset about russian ads showing up on their at iform whs facebook doing to make its ads more transparent that story straight a head this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for business. yours. ♪ ♪

facebook's chief operating officer sheryl sandberg was in washington today she sat down with axios earlier. >> that was a different kind of threat so we got focused on it. in april of 2017, we put out a white paper saying, hey, we think there's a new threat going on importantly linking to the government account from that report which said they thought it was russia. now we are following up on every lead we have the first line of defense is going after fake accounts. we're investing in machine

learning, heavily in automation. that's how we will find these things faster. the responsibility of an open platform is to let people express themselves we don't check the information people put on facebook before they run it. i don't think anyone should want douse that >> joining us is mike allen executive editor of axios who you saw there conducting that interview. thanks for joining us. >> thanks for having me. >> the threat was known or feared three years ago what happened? how did it get through the cracks >> that's exactly the question then 10 million people saw these ads. we see facebook trying to be more transparent your viewers saw sheryl sandberg up on the hill talking to leaders of the intelligence community. she said facebook wants those ads to be released congress will probably release those ads after a november 1st

hearing. she also said that twitter -- that facebook would release some of the non-advertising information that people saw. but what we didn't hear is facebook saying there would be big changes. it's clear this could happen again. you heard her byte, talking about free expression. and these ads were divisive, they were meant to go after -- play up gun issues, lgbt issues, i asked her these were taken down because these were fake accounts if these real accounts, would you let these ads run? she said yes >> mike, you're a journalist what do you think about facebook's role as a defae facto media company? how do you think washington will view that? >> such a hot and juicy topic. when you ask publishers about facebook, it gets contentious. publishers feel facebook has

stolen their model i asked sheryl sandberg, most people get their news from facebook if you don't pay attention, you think the news comes from facebook facebook rather than from cnbc and axios. she said we are an engineering company, we don't hire journalists. they don't want to be regulated like an electronic media company and having ads subjected to the scrutiny and disclosure that a television ad would be yet they want to say no, no, we're not media. that's why some places in europe, where they're trying to license these platforms more as media company, we see this in the uk, we'll see efforts like that elsewhere >> using her definition, i was joking earlier today, cnbc could be as a media or technology company

do you think this leads to deregulation will they be considered a media company? >> both sides, democrats and republicans suddenly see these companies as a juicy target. the left sees the concentration of power the right sees these as political actors that want open borders, social -- liberal social policies, so we hear both sides saying they want to go after the companies. this could be the hottest issue of 2018. >> i also wonder how long sheryl sandberg stays at a company that could be detrimental to her career if she has bigger aspirations or sees risks growing. >> thanks, mike. have a great day president trump issuing his executive order on healthcare today. promising plans that will be cheaper, better and offer more options for americans. we'll ask former aetna ceo ron allen if the order does that

welcome back there's the president signing that executive order today that he calls a first step in "providing millions of americans with obamacare relief. the president wants to let small businesses ban together in

associations so they can negotiate lower rates and allow insurance to be sold across state lines. >> joining us now on the phone, we welcome back ron williams, the former chairman and ceo of aetna, he's now ceo of rw2 enterprises. welcome back >> thank you pleasure to be here, bill and kelly. the questi >> the first question, these mewa's, they would allow these small businesses to ban together to negotiate lower prices for insurance coverage for their employees, but the question remains would the insurance companies sell these policies given the fact this would be a multi state situation? if you were running aetna, would you sell policies under these conditions. >> i would probably back up and avoid a rush to judgment on what we're going to see

what the president issued was an executive order which really is the start of the process for rule making by the appropriate regulatory agency. i'm familiar with mewa s, i've seen them operate in the market. it does require the right regulation, the right detail there are important risks associated with them, solvency of the entities underwriting them if they're union or an association of car dealers or association of car washers, who holds the money, how accurate are the calculations there are some fraud and abuse concern concerns >> i wonder if that were to happen, you would sell plans across the state borders, does that hurt smaller regional health carriers? >> all healthcare is local, it reduce the administrative burden

of complying with different laws and regulation new york has one set of regulations insure verse to follow, new jersey is separate if you're in philadelphia, new jersey is across the street in terms of proximity they have good provider net works, good discounts and a good market position. it comes down to the local dynamics in the market >> one of the hot button issues has been whether pre-existing conditions will be covered and this executive order would free up insurance companies from covering that. is that progress or not in your view >> i always said we have a fundamental obligation to make sure everyone has access to health insurance we have lots of ways do it clearly we have an affordability problem in healthcare. i think that some form of guarantee issue is fundamentally important. i think there may be waiting

periods, open enrollment periods. i don't think we're going to see change, is that do away with fundamental access to health insurance. that would be my hope. >> okay. that might explain the market reaction taking it in stride mr. williams, before we go, do you think this undermines the total number of dlafr dollars ie health system or do we have to wait and see if these changes are made >> like i said, i would avoid a rush to judgment sounds like the market is doing the same thing hopefully the rule making progress will hear from everyone there are opportunities to make these types of changes they can be done smartly they can make the system work better but you have to avoid segmenting the risk pool, separating the healthy from those who are unhealthy t has to work well for all consumers so we can focus increasing access and working on the problem of affordability and value in

healthcare >> ron, always good to talk to you. thank you. appreciate it. >> my pleasure >> ron williams, former ceo of aetna joining us. with about 12 minutes to go, jpmorgan and citi group are iswer after reporting earnings th morning we have a debate on whether to guy t buy the dip when we come back. ♪ ♪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

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. partner with pgim, the global investment management businesses of prudential.

art cashin stopped by and said the markets on close orders shows an imbalance to the close side by 6$600 mil6$600 million >> we have tipped lower in the last half hour almost to the flat line. the dow is back towards session lows banks may be one of the reasons why. we had the earnings season kick off this morning with jpmorgan and citi group, both beating on top and bottom line but shares trading lower today. >> does this dip create a buying opportunity ahead of other bank reports? joining us is ken leon and michael block. ken, why do you think the stocks sold off even though overall they beat expectations >> they did.

especially jpmorgan. i think it's because september, these stocks were up really strong, catching up to the market they've been underperforming for most of the year this is just a breather. results were good for jpmorgan which we have a buy. citi, a one cent miss so we have a hold there there's a lot of driver's we think that are really positive going into 2018. just to list, then we can discuss them later, it's rising rates for net interest income, the federal reserve with a new bank supervisor, more pragmatic regulation, and then, of course, tax reform, which would feed into the economy and feed into lending growth >> but once again, michael, rising rates is the top of the list there we're not seeing that play out why are you bearish on the banks? >> couple reasons. this is a short to intermediate term call. i'm a short to intermediate term party popper >> is that an hour or a day?

>> until it works. we'll get to a point, everything has a time and place until it works. this could go through year-end you talk about rates a steepening yield curve and higher rates in general are good for banks that can earn better net interest margins i don't think that catalyst will play out i don't think bond yields are going higher the fed will raise into december that's it they're worried about low inflation. i think the mar can the is overlooking this jp and city, one thing we noticed, a several-year trend in consumer credit card write-offs getting better and better then leveling off for the first time they're getting worse again. something is happening here. we used to worry about mortgages, home equity loans, student loepans, this is the ne phase. consumers are getting pinched this is an issue >> quickly, michael.

>> yeah. >> let me ask you this before we have to go are you longer term bullish? if you believe rates will be higher five years from now, is this a time to buy those bank stocks will they be that much higher down the road? >> if we want to take the warren buffett time frame, yes. if you're bullish, you'll get a better chance to buy these things later this year, early next year. >> 2018 earnings are much higher >> right now through earnings season, i'm going to be short. >> ken, before we go. >> 2018 earnings are holding up much higher. this is a good time to get into banks. >> all right >> very good thank you, gentlemen >> that's what makes the market. >> see you later. we'll come back with the closing countdown. after the bell, we will speak with boston fed president eric rosengren about when we so

see those rising rate hikes. you're watching cnbc rodney and his new business. he teaches lessons to stanley... and that's kind of it right now. but rodney knew just what to do...he got quickbooks. it organizes all his accounts, so he knows where he stands in an instant. ahhh...that's a profit. which gave him the idea to spend a little cash on some brilliant marketing! ha, clever. wow, look at all these new students! way to grow, rodney!

know where you stand instantly. visit quickbooks.com.

♪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 okay 2 1/2 minutes as we head to the close. the big three major averages lower today. we won't get record closes the dow down 38 points

we're off the lows of the session here this has been a moving target. i like to show you the best performers of the dow components the last i looked, microsoft was the best performer, but not a whole lot. up a percent walt disney still down over 1% what did hit an all-time high, the dow transports the airlines seem to be participating in all of that up about 50, almost 60 points on the day. now above 10,000 we should be wearing dow transport hats, 10,000 the eu offering the uk the possibility of staying in the eu for another two years with some strings attached that pushed the pound up today >> that came after the eu brexit

chief negotiator that talks with the uk reached an impasse, a deadlock clearly, bottom line, the talks continue we've seen a lot of volatility in the pound the weakness in the pound at one point helped the ftse 100. that's the basket of uk companies, making revenue outside of the uk. >> what a surprise the negotiations are dragging on who would have thought >> going longer on this particular payment i also want to have us keep an eye on this company. i don't know if it will open or not, this spark therapeutic that meg tirrell highlighted for us the fda panel voting unanimously to allow this experimental gene therapy to treat a special eye disease that causes blindness. the stock has been halted now for a while as they waited for that vote. it doesn't look like they'll get it open today we'll see if they can get it open tomorrow on this very important issue >> biotech up 20% year-to-date

still a stand-out sector >> very volatile at same time. thank you. see you later. no records today, except the transports as we go out for this thursday charles schwab and company ringing the closing bell at the new york stock exchange. second hour of closing bell coming up. thank you, bill. welcome to the closing bell. i'm kelly evans. no green eyed bull today except for the transports they had a 60-point move here's what's happening with the major averages they are lower across the board today. the dow industrials dropping 32 points to 22,840 the s&p 500 down 4.5 points. the nasdaq composite down about 0.2%, 6,591. the russell 2000, which was in the green until about an hour, dropped a point and a half

1505 for the small caps on a day where the dollar was fractionally higher. interest rates moving lower. bitcoin was surging to new highs today. the chief financial officers of both citi and jpmorgan take a different act than the bank's chief executives, they say they're open to exploring bitcoin. ahead institutional analysts number one in the space will give us her take on th cryptocurren cryptocurrency joining me is mike santoli and stephanie links. let's get to the market moves. big winner today, caterpillar. biggest loser was disney over in the s&p, the big winner was dxc technology the biggest loser was ulta beauty which shed 8.5% for seemingly no reason.

financials are lower despite beats from jpmorgan and citi group. tomorrow, bank of america, wells fargo and pnc will report results. >> today citi had a great run, i think at these levels you have to have multiple things going right at once for people to stay excited about them bond yields didn't cooperate today. the long-term story remains intact if you liked banks before you probably think the numbers today were okay. >> stephanie does it remain intact if interest rates don't move higher? is that a major plank of this that has to work and that people are doubting >> for citigroup, i don't think they're as sensitive to higher interest rates they have special situation things going on. they have a huge restructuring program. they have a bloated cost structure. they're focused on rebuilding their credit card portfolio, and

the credit card portfolio was the problem in the quarter, that's why the stock retraced. however the stock is up. it's a favorite, still attractive let the dust settle. i picked a bit at it today i don't think the earnings power story of cost cuts, buybacks, capital return has changed >> tax reform could be a help for these guys maybe next year you get more deal activity. mike, tomorrow, what's most important as we turn towards wells which is its own story there. >> what's important is what's important for these guys, too, make sure credit doesn't deteriorate too much credit quality doesn't get out of hand. the bigger question is how long will the cycle go? if the cycle goes three, four more years, these guys in the middle will do fine.

>> otherwise, what multiple do you pay? jpmorgan is earning 11% on equity i don't know if that excites you much >> anything in the space for you here that's exciting or important to watch tomorrow? >> for sure on bank of america, what was interesting today is both companies, jpmorgan and citi group both had very good net interest income. it was the net interest margin that was the disparity jpmorgan had better than expected numbers citigroup did not. tomorrow bank of america is very sensitive to higher rates. you need that steeper yield curve for sure the big thing for bank of america also will be their cost structure. they want to get their efficiency ratio below 60% if we see them making progress to that front, people will be excited about that expectations are high. this has run as well >> for sure. i want to hit a couple other movers here. telecom was the biggest laggard

in the s&p as at&t warned of heavy directv subscriber loss in the third quarter. at&t down 6% what do you make of that >> this on a day when bond yields were lower. never mind -- people are very sensitive to pay tv losses it's a raw nerve across wall street >> they lost 90,000 in the third quarter. >> huge. this was a shocker it brought down everything i was not surprised to see disney down on the news. not surprised to see viacom down or the media stocks. i was surprised to see comcast down 3.5%. it's already shed 7%, 8% from the first time when they lowered numbers. these guys have high speed internet, that's 20% of their revenues >> we're aware >> you guys are. just making it obvious for everybody else there is a good part of the story. if people go away from traditional video to o. it it,

they ha ott they have to use high speed internet. people may be hiding in at&t and verizon, because of high yield and safety not so safe today. >> disney was the biggest loser in the dow guggenheim downgraded it today citing the caution in the pay tv ecosystem. viacom lower after charter subscribers may lose access to its channels on the flip side, social media having a day twitter, the best day since june pivotal research maintained a hold on the stock. snap was up 3.5% today >> hard to know if this was the same pool of money moving from old media to new seems like there was a theme going on with the disney downgrade, not much of a sharp edge to the downgrade. sam analyst upgraded it in march. it's just the same story basically shrinking pay tv pie, people fighting over the scraps.

that's the perception. >> before we go, i have to ask about ulta it was down 6% midday, down 8.5% at the close what's going on there? >> we had a downgrade today. it's surprising that the stock is down so much. i think these higher multiple stocks seeing some desell racedn going from double digit growth, expectations are high. we saw what dominos did today. that was a big number -- >> still down 5% >> you have to crush it for the high multiple stocks to do well. that's why it's interesting to see money going back into f.a.n.g. and growth tech, people believe they will be able to do well so i think people feel safer on those names versus other consumer related >> they are winning 2017 again the latest fed minutes indicate

another fed interest rate hike will happen in december. is it all but certain by the end of the year? steve liesman has somebody who may have some good insight into that question. steve? >> thanks. here in boston with boston fed president eric rosengren thanks for joining us. >> nice to have you in boston. >> ahead of your big policy conference on monetary policy, when i was here last year, unemployment was 5%, you said we were near full employment. and you were concerned about overshooting we're now at 4.2%, where do you stand now? >> our estimate of full employment is 4.7% >> half point below it >> so one of my concerns has been we don't want to push too far below where full employment is that's one reason i've been advocating for a gradual increase in interest rates if you were concerned then about overshooting, you must sh concerned now we're double

overshooting or whatever the next leg up from that is >> i'm still concerned but highlight i highlighting unemployment is is at 2%, that gives us the luxury of being more gradual. you're highlighting the very reason why i think a gradual increase in interest rates is appropriate. obviously you would be one -- you're not voting this year, you will be voting soon again. you would raise rates in december you think that's the right thing for the fed to do? >> there's a high probability in the markets that we'll be raising rates in december. that seems appropriate given the information we have now. we'll have to wait and see the data is hard to interpret because of various hurricanes hitting the united states, they've disrupted not only people living in those areas but also our data series my guess is that if data comes in as i expect, it would be appropriate to raise rates in december >> do you stand with the median

fed member who thinks that rates ought to go up three times next year >> that seems approximately right. we'll have to see how the data comes in gradually increasing rates, i do think, is the appropriate policy >> a big concern you've had is about asset valuations you talked about commercial real estate last we met the market was 18,000 quite a bit higher now do you have concerns about stock valuations >> i remain concerned about asset valuations in some areas commercial real estate is one i have highlighted, the valuations are quite rich relative to historical experience. in terms of the stock markets, they're fully priced >> are they fully priced to a point where they ought to necessitate monetary policy action >> it's something we should consider how much prices are likely to go up if we don't continue the path of raising rates gradually >> let me ask you about the conference we have a new fed chair coming in at least some candidates have

talked about using rules versus discreti discretion where do you stand on that issue? >> my own view is that rules over time have not proved successful if you had done this interview with the fed president 35 years ago, frank morris, he would have focused on money aggregates as the rules. we don't spend time talking about money aggregates know, either if you look at the historical transcripts -- >> it changes over time. >> it's not in the speeches. >> it's not easy to come up with a simple rule that stands the test of time also rules have not been adopted widely around the world, which is a nice idea if you were able to capture a very complicated world with simple rules. in reality i think it doesn't do a good job >> where do you stand on the issue of the next fed chairman you worked closely with kevin warsh. what kind of chair would he make >> i won't comment on the particular people being considered by the administration

in part i don't know who the administration is actually considering. i would say the names in the papers, all of them seem quite qualified. >> do you have a feeling about an economist versus a noneconomist >> i would be able to work with whoever they pick as chair there's advantages of having an economist, but also different perspectives a non-economist could bring. >> thank you very much >> thank you >> eric rosengren, president of the boston fed back to you, kelly >> making a lot of news in a short period of time guys what sticks out to you? for me, the fact that eric rosengren is reiterating he's cautious on commercial real estate i know it will get lost in the headlines, but it feels like a place where the fed is looking, because valuations have gotten insane it's been a consistent position of his he's trying to say it's a

financial asset bubble, but given where his district is situated, maybe what the risks are in that area, commercial real estate could be one of those beacons. i don't know that anyone thinks it's at a critical moment yet. >> it's interesting, this goes back to the discussion, if this keeps going for a couple more years. i remember conversations with people three, four years ago they said this move can't keep going. it kind of still does. >> it all depends on fed policy, interest rates, and what rates do not only here but globally. we know they're tied together. if the ecb boj pulls back, their rates drift higher, ours drift higher the fed will do what they will do i was reassured, that might be a concern for him but he's still looking at the data to decide on what to do we all think that pretty much they'll go in december about 75% chance at this point, maybe higher >> which would be their last one

under the current composition. ro reports this afternoon suggesting that the president met with job taylor on wednesday. >> i like they're all looking at the data that's important we want them to. we just don't want them to raise rates because they can or they should we want them to get the data and the market can handle that data. that's my opinion. next year will be interesting. >> oh, yeah. >> chief of staff kelly said there's time to make the decision about the fed chair how much time really are we talking about? >> exactly quick programming note, tomorrow steve will be back with a cnbc exclusive interview, the bank of england governor, mark carney at 10:10 a.m. eastern we have a news alert on tesla. phil lebeau, what's happening? >> actually, we have two pieces of news. one from tesla, one from ford. tesla announcing a recall of 11,000 of its model x suvs, they

have a part in the second row seat, a cable that needs to be fixed. if not, the seats are not always locked into position they should be in and they could be thrown forward in an accident there are no injuries reported with these seats in question 11,000 of them tesla will send out mobile crews to repair those model x suvs now to the other story, this is breaking news regarding the ford motor company. a louisiana sheriff parish has sent a letter to its local ford dealer, hixon ford in alexandria, louisiana saying as long as ford continues to advertise with the nfl, we're going to boycott your dealership we will not be spending our money at that dealership it's a fair amount of money. last year the sheriff's department down there spent $346,000, $400,000 the year

before buying ford vehicles for the sheriff's office in bossier parish, and they sent a letter saying, yes, the nfl players have a right to protest as they deem necessary, but we the sheriffs office and taxpayers of the parish have a right to spend our money elsewhere. this is the first time somebody has stepped forward and said we're not going to buy ford products as long as they advertise with the nfl back to you. >> phil, thank you that's a huge development. we've talked a bit about the brand angle, some of the big sponsors of the players, the knicks nik nikes of the world, they've stuck closely with the players this is different. especially as the nfl heads into meetings next week to decide whether the players should stand

for the anthem if they're responsible for this behavior, and ford is a huge one, even though is a tiny louisiana parish, ripple effects will put this front of line. >> if there's one way to get the attention of ford, it's to basically stoke some kind of conflict with the dealer network. there's always a friction relation slp thership there it's a small amount of money for ford, but if it snowballs, maybe that changes >> it reminds us of the jamell hill espn conflict, by saying the way to make their case is to go to the sponsors people who don't want to see that behavior will put pressure on the sponsors of the nfl to see it doesn't happen. >> it's so controversial there's -- there's such opposing

sides. it's very challenging for companies, for people to really take a side. especially the sponsors. this is not a big material dollar impact for ford but it's something they don't need >> ford is not the only auto company that advertises. what will the sheriff's department do? if you see the sheriff's department doing this -- >> where will they buy their vehicles everybody advertises with the nfl. >> great point even fox today getting a price target trim because of nfl ratings. we have a news alert on baxter pharmaceuticals meg tirrell? >> baxter is providing an update on its puerto rico operations. baxter and a number other other companies do significant manufacturing in puerto rico they expect a reduction in revenue as a result of the storm

but it expects to mitigate the earnings impact through positive performance in other areas of the business the third quarter earnings call is scheduled for october 25th. they say their three manufacturing site there's sustained minimal structural damage those are being operated now on diesel generators. t they manufacture products used in the hospital setting. they say they're working with the fda in terms of trying to in some cases import products from other manufacturing sites in ar ireland and australia to supply the u.s. market, but they say they will not be able to fully bridge the gap in the near-term. we're hearing the first reports of these shortages from companies potentially coming from consider consider, after the fda commissioner warned about 40 products he's watching there. >> wow all right. meg, thank you very much much

meg tirrell joining us stephanie, thank you for joining us >> sure. when we come back, bitcoin surging to a high after rumors that china may allow trading again. up next we find out whether the bitcoin boom is for real [vo] quickbooks introduces jeanette

and her new mobile wedding business. at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and-ta-dah-paid twice as fast for free. visit quickbooks-dot-com.

witness katy perry. witness katy perry become a legal witness. witness katy perry and left shark. or a card shark. grandma? witness katy perry work. witness katy perry firework. witness katy perry swish. witness katy perry... aaaaaaw look at that dog! katy perry: with music videos and behind the scenes footage, xfinity lets you witness all things me.

welcome back check out the move in bitcoin, it's above $5300 this coming on comments made on the earnings call taking a different stance of jamie dimon. citigroup's cfo said we think the area of cryptocurrency and digital currency is an area worthy of explanation. while $5,000 may seem pricey for bitcoin, mike novagratz says he sees it going higher >> it wouldn't surprise me if in the next six months we see over 10,000 >> over 10,000 joining us with more is lisa ellis from bernstein research.

we were joking that this has become the hottest space lately. we've seen a ton of deals in the area we've seen companies like jpmorgan possibly entering it. what do you make of the bitcoin phenomenon >> i think it's real, i do the vision for the cryptocurrency systems is to create a global set of payment rails, the same way that the internet is a global set of information rails. that's what they're trying to do there's a lot of momentum and a lot of valide edity to the visi. can they do that without bitcoin? can you have the blockchain technology support a more legitimate payment system? if this turns into a bubble that crashes, will that hamper its development? >> it would be a setback if we see the bitcoin itself, that system crash we've seen that in technology developments before. blockchain, like you said,

getting a tremendous amount of momentum independent of bitcoin in core banking and being deployed to improve banking systems. a el he ethereum also getting a boost. >> is there a tremendous economic opportunity what's the revenue flow going into the old ways that will be displaced by blockchain that creates so much value? >> in core banking, the vision is to take the global financial system to t plus zero, or as close as it wants to get to that. >> immediate settlement of trades >> so you rip out billions of costs in settlement and reconciliation, working capital. >> your top long-term picks are

visa and mastercard, the old duopoly still going strong and performing amazingly you don't see them geing d inges disrupted? >> i don't they're extraordinarily efficient. they're the one example in payments and financial markets where they have solved these problems they are realtime. they have brands that are known around the world it's like the one spot where there's not a problem waiting to be fixed >> they're rewarded handsomely for that lisa, thank you for joining us >> thank you coming up, goldman sachs making a big bet on house flipping we'll have the details next. ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations.

( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. aggressive styling, so you can break away from everyone else. the bold lexus is. experience amazing.

at ally, we offer low-cost trades and high-yield savings. but if that's not enough, we offer innovative investing tools to prepare you for the future. looks like you hooked it. and if that's not enough, we'll help your kid prepare for the future. don't hook it kid. and if that's still not enough,

we'll help your kid's kid prepare for the future. looks like he hooked it. we'll do anything... takes after his grandad. seriously anything, to help you invest for the future. ally. do it right. welcome back with more breaking news on equifax this hour, what's happening now, josh? >> equifax releasing a statement on a possible breach we've been talking about all day. equifax saying despite early media reports, equifax can confirm its systems were not compromised and that the reported issue did not affect our consumer online dispute portal what equifax is saying is the issue involved this third party vendor that equifax was using to collect website performance data it was that vendor's code that

was running on equifax's website that was serving up this malicious content. equifax saying since they learned about this, the vendor's code was removed from the webpage. they have taken the webpage offline to conduct further nam si analysis i got off the phone with randy abrams, he told me he went to the site and was dumfounded by what he saw. he said he saw attack tiresing to tri attackers tryin to get users to download malweathmalwar malware. equifax saying no information was compromised, and that it was a third party code that was used >> does this absolve them? seems like it minimizes the

revelation from today. it looks like the stock may recoup a bit >> they probably wanted to get it in before press time. >> press time, we still think there's a press time every morning i begin with the newspapers, it's important to me which edition of the "wall street journal." i don't want to lose that when i move out of the city time for a cnbc news update with sue herera. >> i do the same thing here's what's happening at this hour the oscar award winning actress jane fonda says she learned of harvey weinstein's history of sexual abuse a year ago but didn't say anything in an interview today fonda says she regrets not saying anything immediately. more than 500,000 child car seats made by diono are being recalled over injury concerns. if the seats are secured using the lap belt without the top tether, children over 65 pounds have an increased risk of being hurt in a crash. well, if you didn't know it,

fur is so out, italian fashion powerhouse gucci will no longer use fur starting with the 2018 spring and summer collection it is thelatest luxury brand t bend to animal activist pressure gucci fur mink coats have been known to fetch $40,000s. this weekend's big college football match-up is between texas and oklahoma fans are lined up there representing the longhorns and the sooners, they got their turn to face off today taking turns hauling this boeing 737 jet 50 feet during the pigskin plane pull the winner texas. who knew there was a big pig skin plane pull. now we all know. >>edy n edi did not. i want to feel like i'm moving a plane. thank you, sue. time for our fast take we begin with goldman sachs

buying a house flipping lender goldman is acquiring genesis capital. genesis is a decade old firm which lends to investors seeking to buy, renovate and flip homes, loans are typically for about a year is this a sound move >> it's limited. it's kind of a niche operator here goldman looking for areas to kind of make use of the fact that it's a bank and find areas in private credit, i guess you could call this. seems like it's basically an institutional investor it's been otri who has been the provider of capital before >> yes, previously >> it's an interesting fit >> i was not aware how much of the flipping activity was done with loans i think it's 35% i wonder, does this mean house flipping has become normalized >> it's almost an industry i imagine as people do it professionally and also for rental homes you know from watching hgtv,

profits are not huge after the renovations coasts. >> and the renovation costs. if you walk out of there with 20 grand sometimes -- >> is it worth the trouble. >> larry lindsay is challenging paul krugman and larry summers to a 60,000 bet over the gop tax plan he's he's betting them $10,000 a piece on three predictions he says growth will be higher under trump than obama, income inequality will decline under trump and ordinary wages will climb. take a listen. >> no, this is not a lay-up bet in the ordinary sense of the word, it's a lay-up bet because the tax bill is a powerful bill as is deregulation that's why we'll have faster growth >> i'll certainly be the first to recognize that i was wrong if we pass this tax cut, which i don't think will happen, and it is shown to have increased the

economy substantially, i will have -- then i will have been wrong. i wouldn't wait up >> i don't blame larry for turning down the bet any economist who studies these matters knows this will be a good bill for economic growth. >> this is a clear cut bet for these three criteria should summers and krugman take it >> i say they should not take it while clear cut in terms of what will be measured, there's no way to judge causality from a tax bill that comes out. we could be in a good part of the cycle, guess what, wages will start growing faster. they started growing faster than inflation a couple years ago of these things could come true, but there's no way to say it's because of the tax cut >> you would maybe start the cuts the day the bill is passed.

richard branson is investing $85 million in hyperloop one to help accelerate commercialization, he not only gets a board seat but also his name on the company. it's going to be virgin hyperloop one. >> he's lending his name and his brand and prestige to the project. is that what you ment to say >> i see, from their point it makes them seem more normalized. i'm still shocked from now on it will be called virgin hyperloop one. >> when you talk about privately built infrastructure, i grew up near something that was once the vanderbilt parkway in the early days, the vanderbilt heirs said i want to build a private road, now the public has a road they can use >> it's interesting, if you slap virgin on something, can you

make infrastructure cool hyperloop one is cool. >> i don't know if it's cooler than elon musk >> i heard that. maybe cooler than musk >> branson doesn't have the nerd factor in there. >> but hyperloop does. coming up, the latest on the deadly wildfires in california we'll find out how that devastation is impacting the multibillion dollar wine industry another day at the office. why do you put up with it? believe it or not you actually like what you do.

even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors. analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life. hi, i'm the internet! youn knoarmless bowling.lt? ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral. build a better website in under an hour. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

welcome back here's how we finished on wall street small declines, the dow down 32, the s&p down 4, the nasdaq down 12 the russell giving up a couple of points. there's another story in the world of hackers russian anti-virgs sous softwar been used to hack into the national security -- how serious are the revelations as far as you're concerned >> they're pretty serious. anti-virus can be used for collection tools in order to collect data from a user without

the user being aware of that that's the allegation in this case >> is the implication that anybody who has kasterski soft rare is being watched? >> the implication is they put out some tasking, and that allowed them to collect documents that contained code words. in this case the word top secret was mentioned in the "wall street journal" article and possibly other words if you have those words on your system, kaspersky may have collected them. >> does the user have to do anything to unlock this information? once you actually are using the software, it's collecting your information? >> according to the end license agreement, once you install

kaspersky, they can collect information, bring it back this is not malware, but information that could be on peoples pe s personal commuters >> that's at the heart of this this could be getting back to russian authorities, to moscow, to putin would the company have done this of their own volition or is it obvious this would have been directed by russia >> i think it's directed by russia they don't have the fourth amendment of search and seizure in russia. if the government comes to kaspersky and tells them to do x, y, and z, they will do it or go to jail >> do you think the u.s. does things like this as well. >> i don't think the u.s. does this as well the united states has a lot of laws that prevents things like this from happening. tech companies in the u.s. always pushed back quite a bit

on the government. we are a nation of laws that prevent things like this from happening. in more totalitarian regimes, things like this can happen and do happen. >> we'll see what kind of response the u.s. thinks is necessary. blake, thank you for joining us. >> thank you several vineyards, hotels and restaurants in california's wine country have been raleen r by wildfires coming up, we'll talk to a winery owner about the impact to his business

because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.

. several wineries in napa, sonoma and mendocino have been damaged or destroyed entirely by wildfires tearing across california we'll speak to the owner of one family-run vineyard that was wiped out next. and coming up, media stocks getting slammed today, and why the media mayhem could get worse. i was playing golf days ago... love golf. i used to love golf.

wait, what, what happened? i was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. no. yep. did it help? it completely ruined my game. well, the truth is, that advice was never meant for you. i like you. you want to show me your swing? it's too soon. get advice that's right for you. investment management services from td ameritrade.

those wildfires continue to spread across northern california, at least 26 people have died as a result. more than 170,000 acres have been burned. california governor jerry brown

is calling it one of the biggest and most serious wildfires the state has seen renee bicak is owner of paradise ridge winery which was completely destroyed, as we understand it. welcome. >> thank you >> is anything left of the building >> we had two main structures on the building, they were both completely destroyed one was thes wi wine tasting facility, the other was a conference area. both were destroyed. >> how much of an economic loss is that for you? >> we had about 7,000 cases of wine, averaging $500 a case, there's a number there >> i'm try doing it in my head

>> it's pretty devastating luckily we do still have case goods off-site, and not to correct you, the winery is in sonoma county, not in napa >> thank you, apologies for that do you have insurance for that, rene >> we have insurance on the property there's also three dwellings that are completely destroyed. the good news is that the vineyards appear to be still intact the hope is that next year we'll have a normal harvest, we're just going to need to find a new place to make wine >> rene, is that the case, as far as you can tell more broadly, that the vines themselves, the capacity of the area to basically produce grapes and wine, is not going to be compromised long term? is there a way to make that assessment >> it would be hard for me, i mean, i can speak to our neighbor's vineyards down the hill from us, they appear to be

intact our vineyards are kind of not in an area where other grapes are grown. there's an ava called fountain grove that was great affected by this fire. i don't know how those vineyards fared. looking at our vineyards, the fire swept through so fast, you know, it didn't stop at the vineyards, it barely burned the trees, it was such a fast moving fire >> if we're talking about $3.5 million in terms of the wine cases lost, if you don't mind my asking, who is your insurance carrier, will they cover that? >> i believe it is, my sister sonia and myself run the winery, i want to say lloyd's of london with making wells fargo being the broker and we've been in contact with them, my sister, you know, i

don't know, she spouted out a number, something like $13.5 million insurance. but it depends on what it's applied to, you know so there's building insurance and then there's stock insurance. i don't know about the assets, i'm worried about our employees, you know, we did a lot of weddings, we had a tasting room that's no longer there, who -- you know, can we keep people on payroll? there's still some unknowns. that's the kind of information we want to figure out first, like where do we stand with the employees. >> sure. how many employees >> well, we have about ten full-time employees, and 30, you know, total employees. and one of our employees, martha marquez, she lost her house. and now our winery can't host even events, so there's uncertainties for her in a short period of time, she's great affected personally i think the people who lost their homes and all

their personal belong belongings people have suffered a lot of loss we can rebuild the winery. >> oh, of course for next year, 2018, what will that business year look like what did 2016 look like? you don't have to give me specific numbers, but how quickly can you get back up to speed? >> well, production-wise, i think, you know, '17 is going to be a really small vintage. other wineries have reached out to us, offering us fruit and stuff. i think we'll have a little. but, you know, we're a d to c company, direct to security. we sell product out of our tasting room we have another location that's unharmed, and that will be open for business once they open up that area. >> and that would at least be something. rene, we're so sorry to hear

about your loss, we wish you a lot of luck in getting through that and would like to check back in with you if possible >> please feel free to call. i would like people to know, the fires are devastating but there's 470 wineries in sonoma county the doors will be open when the dust settles and we encourage people to come out here and visit us and support the community by staying here and enjoying sonoma county >> yes, that will make a huge difference rene, thank you for joining us today. >> thank you so much >> rene byck is the owner of paradise ridge winery. principles is our word othf e day. we'll have the reasons why when we come right back you know who likes to be in control? this guy.

check it out! self-appendectomy! oh, that's really attached. that's why i rent from national. where i get the control to choose any car in the aisle i want, not some car they choose for me. which makes me one smooth operator. ah! still a little tender. (vo) go national. go like a pro. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. and the wolf huffed like you do sometimes, grandpa?

well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. you should tell your doctor if you have a heart condition or high blood pressure before taking it. symbicort could mean a day with better breathing. watch out, piggies! (child giggles) symbicort. breathe better starting within 5 minutes. get symbicort free for up to one year. visit saveonsymbicort.com today to learn more.

welcome back in. it is time for our closing word today. today the word is "principles. here's why ray dalio, author of the new book "principles" is the subject of a critical note put out by jim grant. the note, obtained by cnbc, takes issue with dalio personally

grant says dalio has spent too much time and effort writing and promoting his book, they are not investing. last month dalio appeared on cnbc and explained what drove him to write "principles." >> what will probably happen will be a watered down version of what was anticipated to happen corporate tax rate, i don't know when it will come, end of this quarter, end of the year, early next year, and probably something like a 23% rate. >> he said he wanted to pass along things that have helped him. apart from his critique of how dalio was spending his time, grant details a laundry list of flaws at bridgewater, including a heavy reliance on etf investments, and returns that grant says are no better than, quote, the typical struggling hedge fund why has grant taken the time to write more than 5,000 words on bridgewater? he lists the number of firms that have become anonymous with

economic disasters, saying grant is pencilling in the name of the firm that dalio built. bridgewater released a statement saying that that's demonstrably false. >> pretty significant innuendo if not allegations from grant, saying a lack of transparency leads us to question whether they're investing as they promised investors, and raising the possibility that there's not much behind the investment process. what's interesting to me, you say the performance has been great but we can't verify the details. >> how big is bridget watwater? >> exactly >> whether bridgewater itself is too big to do as well as it did

in 2008 to '10 >> i don't know if that rises to being the kind of systemic landmark victim at the peak of a cycle. we'll have to see. >> grant has made his feelings clear on the topic for the time being. that does it "closing bell," michael, thank you as always "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," media may hum on the street, at&t having its worst day since the financial crisis a number of media stocks tumbled today. craig moffett says there's another name that could see even more pain. plus adam jonas is here to tell us what he thinks general motors and ford need to do to catch up to tesla an