stock of the day is caterpillar up 48% for the year. but let's go back and look at a five-year chart of caterpillar if we might. it was not always the stock of the day, and it just goes to show you that laggards can become leaders in a hurry. >> thanks so much for watching "power lunch." "closing bell" starts right now. welcome to "the closing bell." i'm sara eisen for kelly evans at the new york stock exchange >> and i'm bill griffeth here we go again another big rally on wall street the dow on track for a record close after strong earnings from industrial giants 3m and caterpillar. a few others are doing well as well today but those two stocks are responsible for the majority of today's rally for the dow. in fact, we were up almost 200 points a short time ago. we're off those highs right now. >> investors getting set for another batch of potential market-moving earnings after the bell we're looking out for at&t,

chipotle, express scripts, texas instruments, just a few of the names set to report earnings in just about an hour >> we will have our hands full at that time but let's get straight to our big story. the strength in the market today from the big industrial companies cat and 3m getting that boost on earnings driving the dow higher ge and ibm trading lower, bob pisani give us some more. >> well, here's what's going on. there's a very unusual divergence between the dow and the s&p. it's happened a lot this year, actually 70 points or so. and the reason that is is the dow is price weighted and when you get certain big name stocks, big price stocks moving, that moves the dow. this is the really eye opener of the day. 3m now, they had good numbers and they raised their guidance for the year about 1%, which is good generally you get a little pop on that. but folks, not 7%. look at that that's $15 you know what that means for the dow? that's 105 points for the dow jones industrial average 105 points due to 3m here's a stock this doesn't make a lot of sense

to me. there's somebody covering a short position here. this is not just on earnings they were betting against it there's been a lot of concerns about price pressure in some of these industrials. that's definitely a short covering game. makes a little more sense what happened to caterpillar here they beat but not only did they beat, they raised their full-year guidance 25% folks, that's a huge number here caterpillar, look at that. $7 $6.70. that's another 50 points for the dow. 150 points of the dow's gain today are these two stocks but while you might have some short covering here, 25% raise in the guidance, that justifies a 5% move in the stock we've seen this a lot recently with some of these big industrial names look at grainger, another big industrial company they reported last week and their numbers were modestly better than expected stock had a big jump there that looked like short covering. same with lennox, this is one of the big international heating and ventilation and air-conditioning companies they had a big move up as well on a modest beat overall so i think some analysts, some people out there, hedge fund guys, are surprised that the

numbers are holding up so well and this goes all back to that story we keep talking about, the global growth story and the reflation trade. >> japan was up for a 16th straight day last night as well at an all-time high. thanks, bob. we'll see you on the close meantime, let's get to our "closing bell" exchange today. with us kevin nicholson from riverfront investment group. he's sitting at post 9 right next to art cashen the director of floor operations for ubs financial services rich ross from evercorps isr is going to read charts for us. and cnbc contributor jack berugian from ucx is at the cm nechlt chicago arthur, we all do it there's the tendency to want to look back to previous market periods to try to find comparisons to tell us where to go from here in the current market period. but when you consider that this market'sdoing things that neve happened before, it's got to be very frustrating >> some of the big traders and

others kind of backing off as one of the early golfers said when asked about jack nicholson he's playing a game with which i'm not familiar so this is strange last week we had the s&p and dow had five record closes in a row. six weeks of record closes in a row. seven months of record closes in a row. as you say, that's something no one has ever seen and it's very hard to put that all together. this has the potential to be a peak week with all the earnings coming out but we're going to have to wait until after thursday to get a handle on that >> kevin, we have this debate all the time, is it tax reform, is it fed policy no today it's earnings. and this is a fundamental story with names like 3m and cart pilar jumping more than 5% does it give this whole story of global coordinated economic growth more fuel >> i definitely think so it's been our belief all along that corporate earnings are

going to be the driver here. and we've had quantitative easing for the last three, four, five years and we're really getting to the point now where you're starting to see federal reserve and other central banks thinking about reducing their balance sheet we think it's going to be a tug of war going on between balance sheet reduction and corporate earnings but we think that corporate earnings are going to win out over the long haul and you're going to continue to see this market grind higher. thus far in this earnings season it's been a strong earnings season you've seen 75% of the company's beat on the sales number and about another 80% that have beat on earnings. and so you have year over year earnings growth at over 8% right now. so i think that's going to be a continuation >> and rich, it must be tough for the chartists to look for resistance to the up side because we've never been here before so what do you make of current market action where we keep setting records all the time >> bill, to you are why point, as a trend-following technician it doesn't get much better than this and the macro technical

backdrop for global equities remains compelling we really have this gold lox scenario where not only do we see short-term strength in trend but it's the structural breakouts from decades-long basis like we've seen them engineering markets like brazil or korea or generational-type breakouts where you're seeing in a big developed market like japan. so take a stock like jpmorgan with the banks breaking out. 17 years of support. you're telling me to buy stocks here i'm telling you i'd like to see these short-term overbought conditions in the industrials ease up over 86 on the 14-day rsi. but bill, i can tell you once again that the base, the foundation is in place for a strong trending run. looking at an upside two-year target of about 3,200 on the s&p. it's high single digits in back-to-back years that's not overly dramatic it's very realistic. >> we're also seeing this interesting move up in treasury yields, jack part of the reason behind the big move in financials today and the dollar is firmer what's driving it? is it the renewed strength in

the economy from earnings or you think there's a little chatter around a potentially hawkish new fed chair coming from president trump? >> sara, it's a combination of both the fact you're going to get this big change in the federal reserve. i thib everybody's actually come to that conclusion is one of the reasons that you are starting to get a little bit of discontent, at least among the trade in rates if you notice the long end of the yield curve is where the movement was it was the 10s, the 30s. over the course of the last two weeks we've seen roughly 20 basis points as we've seen stocks go parabolic. all of that is really going to come to a head later this week when mario draghi speaks and of course after last week's election and abe's sweep into power once again that is telling you right there that there is going to be friction between the euro zone, between what mario draghi wants to do and what he has to do and what abe is doing out in japan it's going to be very interesting to see how that all develops and of course the repercussions end up on our soil here in our markets.

>> i mentioned it earlier but i'm security your thoughts on this when you see this kind of a market rally, this powerful rally we've been having, but yet names like ge and ibm are not participating. at least today i mean, ibm had a pretty good rally not too long ago but it's minus in the minus category along with ge when we're up as much as we are right now this is not -- we're not in the 20th century anymore, toto, i guess i would say. >> most of the industrials are hitting record highs which makes ge's move lower even more stark. >> ge and ibm are both if you would question veterans. has their day passed them? you know, when ge got rid of ge capital, it was no longer the same stock anymore that became evident in how things were handled in the market but i think you want to watch some of the big heroes of this rally and the recent rallies where people who do most of their business overseas. and i think that what jack said about the fed here versus the

other central banks, stronger dollar can change things rather dramatically >> interesting david einhorn put out in a letter to his investors today i don't know if you have a chance to see it, kevin, talking about the fact it's been a tougher value for value investors. i'm wondering if the whole value investing proposition has changed and investors are looking more for disruptors and game changers and that's why value's been week or whether we're just in this environment where growth is outperforming value. what say you >> the way i look at it, it all depends on how you're defining value. and we've defined value as asset classes in going from the u.s. to international and emerging markets. and that's -- and so when you look at it in that sense i think that value is playing out just fine but if you look at value in the traditional sense, yes it's been a tough road for them. >> russell 1000 value up 10% this year. russell 1000 growth up 24%

>> lee couperman said today he still sees value with wells fargo among others >> the value players are still looking even though they are having to adjust their -- the bar in some cases. gentlemen, appreciate your thoughts on today's market action another interesting day on wall street we're heading to the lose. we have 51 minutes left in the trading session. another barn burner of a rally and you can attribute it to those two key stocks, qatar pil sxr 3m a heated war of words breaking out on capitol hill today between the president and senator bob corker as mr. trump meets with republican lawmakers to discuss tax reform. we'll bring you up to speed not that when we come back >> war of words and war of tweets >> yes >> plus shares of at&t down nearly 20% this year up ahead we've got a bull-bear debate as the company gears up to report earnings after the bell today and of course we want to hear from you you can reach out to this show on twitter, facebook or send us an e-mail. >> what do you think of sara's stylish outfit today

>> it's those bell sleeves that bill's learning about. big trend. ivanka wore them yesterday you're watching cnbc, first in business worldwide at fidelity, trades are now just $4.95.

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stocks moving higher into the close. it's really the dow that has been the standout performer all day long, and that is thanks to big beats on earnings from 3m, from caterpillar dow's up 167 points, which means we are on track for a record close and that explains the divergence s&p's up three points. nasdaq's up 10 so tech's coming back a little bit but nothing like we're seeing with these industrial moves. speaking of earnings, stanley black & decker jumping after posting quarterly profits 8 cents above forecast

the company also beat on revenue and raised its full-year forecast, citing strong growth in its tools and storage sales that stock trading up about 5% it's been on a nice little run this year, up 40% so far >> and there's that trend. the meat and potato kind of companies are doing well >> tools >> industrials manufacturing. they're doing well right now banks are doing gangbusters today, but not everybody's a fan. right? sounds like fun time for bull versus bear. and here they are. >> joining us, dick bove, vertical group research analyst, and steve grasso, director of institutional sales at store frankel. first steve on the move today, we are seeing yields jum and that typically bodes well for the banks. they're at the top of the -- >> yeah. the banks have become -- >> you're the bear >> i am the bear obviously they perform really well so if you look at them on a year-to-date performance they've

matched the overall index. if you go back a year, back a full year performance they're up 35%. they kill everything else. as not as if they haven't run already. this is a momentum trade that really has garnered a lot of attention from institutions. but the way i look at it is through the prism of the xlf let's go back precrisis in the xlf. we're approaching those levels right now to the precrisis levels in the xlf. do you think all dodd frank regulation is coming off the table? do you think 35/1 leverage is coming back? neither one of those are even remotely possible to enter into the picture. so i'm saying a bit extended, it's momentum now. buybacks are pushing these stocks even higher but i do think that we're close to the end of the run for banks and you're better suited to rotate into something else >> dick, you're our bull how do you respond to those points that steve's making here? >> well, basically, i'm looking

at it i guess a little bit differently. definitely banks have run over the last year, but if you look at them over the last six months it's kind of a v-shaped formation and in september they were where they were in march. so the net effect is they started to lag the market badly. and if you start to take a look at the p/e ratios of the banks vis-a-vis the p/e ratio of the market, it seems to me that they're lagging by about 20% in other words, they've got to do a 20% catch-up to catch up to the market and i think the thing that is driving my thoughts most is actually the data that comes out every week from the investment company institute. what we're seeing is basically 10 to 12 billion dollars a week going into passive funds and etfs if that continues, the market's going to continue to go up so if the market's going o'continue to go up, if these stocks are lagging the market over the last six months, which they have, and they need to go up 20% to catch the market, then

you should be buying them. >> what about this automatic pilot component? >> i've been looking at the passive an toll this market and saying why don't we ever sell off more than half a percentage point, a third of a percentage point, and then the buyers come back in? and that passive angle to the market is an overwhelming force we see on an everyday occurrence with the xlf and with banks i do believe they can rally further from here. they need the overall market to rally as'll, though. and if we see the market kind of kick off a bit and if we don't think that rates are going to rise -- now, these banks have made money in a low interest rate environment so everyone is getting a little ahead of their skis saying that rates are rising i think they think rates are going to be rising a lot quicker than they really are going to rise and if whoever the fed chair, whoever the head of the fed is in president trump's pick, they're going to get a bit of a schooling that they're now a dove and rates are going to stay

low. >> i don't know about that dick, maybe you can respond to this even if that's true for the fed chair, there are a number of vacancies open on this fed and with the republicans in charge i wonder if anyone who he picks in this group or however the change and makeup of the federal reserve is is actually slightly more hawkish in itching to raise rates into a faster-growing economy. is that right? >> i agree with you, sara. i think it's actually the structure of the balance sheet of the federal reserve if anybody takes a look at it they're going to see the federal reserve's balance sheet is in a disaster condition basically, the fed is now funding its balance sheet with bank deposits as opposed to currencies and fed is taking the money that they get and putting it into long-term securities you've got over 50% of the funding of the fed coming from banks, and you've got over 50% of the assets on the securities side of the fed that are in maturities of 10 years or

longer so you've got short money funding long, if you will, investments. that's no good and it's definitely no good if interest rates start creeping up the fed is starting to show declines in its own profits. so if you look at the fed as you would look at a bank, what you see is a very troubled institution and that troubled institution has got to shrink and when it shrinks it's going to cause difficulty. >> the fed is also a banking regulator. and this is a president who wants deregulation >> it does want deregulation it doesn't appear as though he's getting any help from his quote unquote fellow republicans and i do think it's a hard sell when you're trying to be a populist president, when you're trying to really talk to middle america. you're not going to be a fan of the banks. the same way that he threw a couple of arrows at the hmos he doesn't care about making banks money at this point. >> two smart guys with different points of view on the banks.

dick bove, streif grasso thank you both see you later. >> thank you speaking of washington, turning to tax reform, president trump meeting with republican leaders in congress even as a feud heats up between trump and a key gop senator. eamon javers has been following that conflict all day in washington so where do we stand after the lunch, eamon >> well, the president has left capitol hill he is back here at the white house, and we're gearing up for the press briefing, which starts in about ten minutes' time so we'll see if this feud gets brought up in that context but the president before he went up to capitol hill made the pitch on tax reform in some remarks on camera. here's what he said before he met with republicanson the hill >> we're going to massively reduce the corporate tax so that companies stay in america, move to america, and hire right here in america in other words, they stay in america and they don't fire their workers. >> but that debate over tax reform somewhat overshadowed today by nearly half a day of

back and forth between donald trump and bob corker up on capitol hill, the tennessee republican who's the chairman of the senate foreign relations committee. they've been feuding all day corker saying he expected the president would simply do better in office. here's one of the things that corker said about the president earlier today. >> there were many people, and i was one of those, that hoped that he would rise to the occasion and aspire to lead our nation instead of dividing it. it's obvious his political model and governing model is to divide and he has not risen to the occasion >> so corker's saying the president simply hasn't risen to the occasion of the presidency itself that's tough stuff, guys i can't remember a chairman of the senate foreign relations committee saying that about any incumbent president of the same party in our lifetime. this is a moment where donald trump's going to have to rally support now for tax reform and

his other agenda items up on capitol hill and he's been feuding with prominent republicans again and again over the past several months. some questions about whether that will impact his legislative agenda or whether these things go on two separate tracks. they're sort of the feud track and then there's the legislative track. and if those two things can be entirely separated, we'll see what the impact is by the way, guys, we are told that the president in that closed-door meeting with republican senators did a straw poll on who he should pick for fed chair and asked senators to raise their hands for their various favorite candidates. we'll wait and see from the white house if they confirm who won that straw poll and if it has any bearing on the president's ultimate decision. sara >> that's really interesting first of all, i wonder if he'll listen second of all, the republicans tend to push republican economists i'm thinking kevin warsh and john taylor, that's who the "wall street journal" editorial board suggested for change agents at the fed. and you just wonder if the president, who likes debt, low interest rates, and a weak dollar is going to get on board

with that idea, which is -- >> this is a president who doesn't come out of the republican establishment he's a populist as you guys were just talking about, and he's somebody who's called himself a low interest rate guy. if anything he's dovish rather than hawkish in fed terms. so the question is would he keep janet yellen on? i'm told interestingly that vice president pence has also met with all of the top candidates for this job except for janet yellen so that might give you an indication of where this is going as well. >> ah, yes thank you, eamon see you later. but wait there's more another republican falling by the wayside. john harwood accepting in with details on that. tell us about it, john >> bill, we talked a few moments ago with jeff flake, the senator from arizona, declining to run for re-election. he has just given an extraordinary speech on the senate floor attacking the president and challenging his colleagues to speak up against the president. he said we cannot countenance

this assault on decency and truth. he said if we allow trumpism -- he didn't use the word trumpism. but allow that way of thinking to ascend in politics that we'll be a nation of fearful backward-looking people. he said that silence equals complicity and that i have to answer to my children and grandchildren, i will not be complicit anymore. this is a crisis for the republican party, oddly enough at a time when they control most of the governorships, they control both the house and senate and the white house but this is a problem for tax reform it's a problem for the entire legislative agenda and it's a big problem for president trump. >> i mean, i just wonder how other republicans are going to respond. it's corker, it's flake, two prominent -- >> mccain. >> -- senators but they're not running for re-election. this is the theme. unless you're not running you can't speak out against the president. so how do the rest of the party respond? >> well, that's the question

and that was the challenge jeff flake laid down to his colleagues to speak up he believes they share his concerns but they're too afraid to say them. we know that that's true of many republicans. and it's possible that john mccain, who of course is gravely ill with cancer, that jeff flake, bob corker are the only ones who feel emboldened to speak so candidly and aggressively but it's also possible that we're going to see a change in the dynamic here we just don't know we have been hit with news all day long today >> yes, we have. remarkable times laura, do you want to play this flake sound now? >> i think we just got it. >> okay. all right. let's listen here's what jeff flake did say moments ago on the floor of the senate listen to this >> what happens if ambition fails to counteract ambition what happens if stability fails to assert itself in the face of chaos and instability?

if decency fails to call out indecency. were the shoe on the other foot, we republicans -- would we republicans meekly accept such behavior on display from dominant democrats of course we wouldn't. >> we live in remarkable times, john harwood >> i mean, he was vulnerable, i think we should say, right he was -- >> yes, he was definitely vulnerable and he was facing a charge from a primary opponent supported by steve bannon who was formerly the president's chief strategist but think about this we had two respected republican senators, one of whom came out and said the current president is dangerous, that he declined to say that he trusts him with his hands on the nuclear button, declined to say whether he thought the president should be removed from office or not, and jeff flake here saying that he is indecent and a threat to the direction of the country

that -- we haven't seen the likes of that before >> all right, john, thank you. we'll see you later, no doubt. john harwood there in washington >> and we will continue to ponder what it all means for the prospect of tax reform >> and by the way, market proceeds apace no reaction. >> let's take a -- >> quick break here, shall we? >> yes >> things are flowing so fluidly here up next air france's stock flying high in 2017, now is turning to fashionable flight attendants and organic snacks to attract millennials. we'll speak pluexclusively withe chairman of air france klm about the company's new airline called joon coming up

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the dow's up 171 let's take a pause for a cnbc news update with contessa brewer hi, contessa >> hi, sara. here's what's happening. a protester got very close to president trump as he walked through capitol hill today before he met with republican senators that protester tossed small russian flags at the president before security grabbed him. a 15-year-old australia girl, her father and brother with frayed nerves today after the girl was attacked by a great white shark while kayaking >> surprised i actually got out. >> i reckon we had a window mofh maybe 10 seconds and had it taken 20 seconds she wouldn't have been here >> the speed that it hit her it it was like a car had hit her out of the water >> wow fisher-price is recalling

63,000 soothing lotion infant seats in the united states due to a fiere hazard. the product overheating, including one report of a fire you should stop using these immediately and call fisher-price for a refund. a he key west florida icon is back in business. it's not really a business it's a place where you get your picture taken. that four-ton concrete monument. it marks the southernmost part of the united states and it was restored by local artists after it was damaged by hurricane irma last month it's good to see key west bouncing back. that is the cnbc news update right now. i'll send it back to you bill >> all right, contessa, thanks so much. here we go we've got 28 minutes left in the trading session with the dow up 171 off the highs but in record territory. gordon charlotte from rosenplots here with me earnings still the main story here >> i'm not so sure it's just

earnings as industry giant john o'hare says, what goes up must go higher that seems to be what the trend continues to be. earnings a little bit of dispersion depending upon how they report they've been good if not spectacular. >> they are doing it today without ge and ibm as we've highlighted here >> and again, you talk about 175 points you go back and say that's a big move 3/4 of 1%. you always have to put these things in perspective. i think what you're starting to see as we get to the end of the year is we've had such a move. and a lot of guys are now putting their money into the passive funds, which means the active managers have to get real active so they can keep their assets under management. so with all that combined to the up side and everybody's forced to get on board, unless something can cause this thing to deviate from the trend we're just going to carry this thing right through, bill. >> we will see, yes. the land rush still goes on. gordon, thank you very much. sara >> bill, let's check in on some

of today's market movers there are a lot of them. it's earnings season shares of general motors rising on the back of an earnings beat. u.s. automakers says the quarter was helped by an aggressive vehicle launch sxan intense focus on costs gm shares hitting all-time highs in today's trade you're look at jetblue that's another mover the airline exceeded third quarter profit estimates this morning despite seeing major disruptions from hurricanes harvey sxirma which saw reduced earnings from the quarter by approximately 6 cents. jetblue trading up to 3% and we'll stick with airlines here because air france is branching out with a new airline called joon. it's hoping to capture millennials. the airline boasts sneaker-clad flight attendants, organic food and airfare that starts at around $45 for travel within europe >> i'm going to stay on the line, show the wires there joining us exclusively to talk about that and other ventures we are pleased to welcome air france klm ceo jean marc

janaillac. thank you for joining us, sir. welcome to the new york stock exchange >> thank you >> two quick questions what does the name joon mean >> nothing >> i knew that was coming. somebody got paid a lot of money to come up with that name, right? >> not at all. >> and why mimillennials >> why dhoe need their own flights? >> but can you make money off the minimumials? >> not exactly first it will allow cost structure that will allow us to compete against some of our rivals, especially the golf carriers which are not playing really a fair level playing field. and since we were looking for this lower cost structure we thought it was good also to link this airline with new ways of living which are not only the ones of millennials but which are digital, which are enabled

consumption, which are new ways of marketing so it's a larger crowd that we are geared to than only the millennials. >> talk about what's happening with capacity and the business overall. we've seen your stock price surge overseas this year >> the business is pretty good because our long goal markets like the states but also brazil but also china and japan are coming back to europe and right now the business in europe is very good and the economy is better the optimism is better, especially in france and we see an increase of travel from europe for business but also for leisure so it's a pretty good environment for business right now. >> we're in a very, very low interest rate environment. stating the obvious. and if things are going to be picking up, the central banks around the world are going to be raising rates here does that put a crimp on your

business at some point >> it means that we for air france-klm, we have decreased in a tremendous way our depth so we are not as vulnerable as we used to do. we had an increase in capital. we are converting convertible loans in capital so our debt now is totally sustainable and we can be an increase of the interest rates >> mr. janaillac, thank you for joining us jean marc janaillac the ceo of air france-klm >> don't you want your flight attendants wearing sneakers and don't you want vr and -- >> i just want to be on time and get a comfortable seat that's all i care about. >> all right a will the more than 20 minutes to go here before the closing bell it's really the dow that is set to make new record highs up 174 points on the back of

very strong industrial earnings today. >> coming up, though, at&t gearing up to report its fiscal third quarter earnings in just about 30 minutes we'll speak with one analyst who says the company's pending merger with time warner could lead to a culture clash down the road what does that mean for the business stick around we'll find out it can detect a threat using ai, and respond 60 times faster. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it. is. the cloud. the ibm cloud. the cloud that's designed for your data. ai ready. secure to the core. the ibm cloud is the cloud for business. yours.

the dow is in record territory, up 177 points any positive close here would be -- s&p close but no cigar nasdaq close but not there yet russell not close, up five points right now >> we are one week away from the obamacare open enrollment period but president trump has decreed the program dead av next, where that actually lees consumers, insurers, and the government ahead of this key deadline n tier is helping build the new new york. starting with advanced manufacturing that brings big ideas to life. and cutting-edge transportation development to connect those ideas to the world. along with urban redevelopment projects worthy of the world's top talent. all across new york state,

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health care under pressure today. shares of centene in particular down 5% after warning that cuts to obamacare subsidies could have an impact in its fourth quarter earnings the company says the cost-sharing reduction payments are not received earnings could be impacted by as much as 7 to 12 cents. and that stock is getting hit on the back of that >> and it's not just centene today. the whole health care sector pretty much trading lower today, sitting out this rally, and

we're just about a week away from the start of open enrollment bertha coombs has more now on what to expect during this year's sign-up period. another interesting time, bertha >> yeah, interesting indeed. we are next -- tomorrow. we're one week away from tomorrow, when open enrollment begins but states and insurers are stepping up their own outreach because they are not expecting to get much support from the trump administration in fact, the administration cut enrollment timing this year to six weeks for states using the healthcare.gov federal exchange, from november 1st to december 15th that's half as long as last year they've also slashed ad spending 90% andfunding for outreach by 40%. in addition, there's a lot of concern about president trump's order slashing those csr payments that's going to result in higher premiums and they think that's going to drive even more people who are unsubsidized out of this market. states are also frustrated by the fact that the administration despite saying they want to give states flexibility has been slow

on granting waivers to institute programs like stabilization programs iowa pulled their application because it's just not going to come in time in terms of an answer the cms administrator asked about that blamed obamacare's regulations itself >> we are absolutely dedicated to supporting states to do whatever we can inside the law to be able to approve their waivers but we do have a lot of states coming to us with ideas that have never been heard before so it takes us a little bit of time to going through the process. >> but states like minnesota, which did get conditional approval, said it was contingent on them actually getting a big cut when it came to another big health plan. so they are doing what they can. they're extending their open enrollment to january along with colorado, new york, and others that run their own state exchanges. it's going to be a very interesting month, guys. back to you. >> and even more complicated than usual

>> right >> bertha, thank you >> thanks, bertha. under 15 minutes to go before the closing bell. dow still set for a triple-digit gain here and a record close it is up 162 points. so off 9 highs of the day. it was up 200 at one point but still being fueled by those industrial stocks. groups like financials, industrials and materials really shining today despite that health care slide we just talked about. >> and telecom giant at&t is set to report earnings after the bell in a few minutes a bull and a bear debating whether you should be buying the stock ahead of those -- you better hurry if you plan to do that. >> and td ameritrade teaming up with facebook manager. coming up we'll talk to the company's ceo about the new partnership and thpu te sho make stocks more social he's fresh off his earnings as well we'll be right back. out! self-! 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.

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>> the advance-decline line. >> reflation trade i just want to point out tomorrow the one stock i want to hear from is visa. the whole world is moving away from cash toward credit and visa's been on the front line of that whole thing, historic high for that stock the revenues are up probably 10%. they've been an absolute monster. that will be very interesting to hear about the global credit >> in the meantime get ready here they come, we've got four companies reporting after the bell tonight at&t will be the big one we watch for but also chipotle, that should be instructive express scripts and texas instruments reporting those

earnings thank you, bob see you later. so we've got a record for the dow following a 16th consecutive record in the nikkei overnight the market continues higher. stay tuned now for the second hour of the "closing bell. [ cheers and applause and welcome to "the closing bell." another record day on wall street i'm sara eisen in for kelly evans. let's take a look at how we are finishing up the trading session. the dow surging. more than 150 points if you add 3m and caterpillar together that's more than 120. that would help the dow to a new record close, up 3/4 of 1% s&p 500 managed to close higher, up .2. not quite in record territory. the banks leading the charge there.

the nasdaq rebounding from some tech weakness we saw in yesterday's session. and the russell 2000 index of small caps also closing higher by .2 of 1%. we are awaiting some key earnings after the bell. julia boorstin covering at&t for us contessa brewer will have the results from chipotle. that's been an underperformer. and bertha coombs following express scripts. we'll have all the results as soon as they are out but first let's talk about this market joining us, cnbc's senior markets commentator mark santoli. mark spellman here from alpine funds as well. it was really the industrial names boosting the dow to new record closing highs leading the dow today, 3m and caterpillar. the ladders there, ibm and ge. if you go through some of these industrial earnings, north america was a bright spot, certainly for construction in those caterpillar results. china was another big theme. and europe as well >> there really wasn't a weak region around the world, and i do think that that's been part of the story that's accompanied this stock market rally most of

the year this idea of a very broad-based global expansion and i do think these numbers ratify that. and i do think it really stole a lot of the intention i don't want to downplay that this market has obviously been very strong, but there's a little bit of dow blindness that's possible here basically, it's a slightly better than flat day for the broad indexes which in itself is a good thing during earnings season just to hold its own. >> i also want to welcome jana barton, eaton vance portfolio manager. i neglected to introduce you thank you for joining us what did you make of some of these industrial earnings we saw and the amazing record high stock prices for a lot of these big names? >> well, i think it's supportive of the big global economic recovery we've been seeing most of the developed and emerging economies are registering pmis in excess of 50 obviously those results are reported to showcase that strength and also the earnings are coming through on some of the secular growth stories we invest in like tech and health care as well

it's broad-based but you have to be selective as we've seen with some of the earnings we've seen today. >> mark, there are some who feel these movements are getting ahead of themselves. 3m for one a lot of analysts feel it's a little overbought at this point. they're in good businesses they're in the sweet spot at the moment but are the stocks reflective of that by too much now >> i tend to think that is the case i think cat and 3m have had terrific -- i mean, we're seeing global growth, i mentioned oecd, they cover 51 countries, all 51 of them have positive growth right now. >> having said, that they just keep going higher. >> they keep going higher but from a stock price perspective where should you look? i go down another level, look at a nucor. who's supplying them with all this steel that company hasn't participated nearly as much steel prices are going up. you saw whirlpool this morning commenting their earnings were short because stainless steel and steel prices going up.

i think nucor and companies like that are going to be the next waves of the cats and 3ms in th cyclical recovery we're in >> let's get to the first of the big earnings reports a tooept, julia boorstin, how do they look? >> missing estimates earnings coming in adjusted 74 cents per share that's a penny less than wall street analysts had expected revenues also missing. 39.67 billion. expectation his been for 40.1 million. but if you look at the stock it's moving higher now but in after hours the company saying that its wireless results it was its best ever third quarter post-paid phone churn of 4.8% and it added 3 pl total wireless net ads, 2.4 million in the u.s. driven by connected devices both prepaid and post-paid and nearly 700,000 additions in mexico. guys, back over to you >> first blush, michael. >> yeah, that's the big number it's the wireless sub number and the lower churn number that's probably going to be what

people are going to fixate on. i think that's the point of maximum anxiety when it comes to industry secondarily it's all going to be about the media strategy you have the time warner deal pending and it's still jury kind of out as to how directv and time warner fit together in the long term. >> as we were saying, maybe on the conference call here if they've got an update on the time warner deal, this position here do you like the at&t mark? >> i do tend to like it. i think we're in a difficult position when you have an 80 -- we're waiting on an 80-something billion-dollar merger, 40-something billion of that is going to be a stock that's come into the market. i think that's from a liquidity standpoint, not a great situation. but i do like their strategy they do have an enormous yield that's more than twice the ten-year and the alpine rising dividend fund that's exactly the kind of situation we like to see. we think 12 to 18 months you'll make money in at&t's stock >> although investors -- the stock reaction here is interesting. it's a little higher but not much for a stock that has really underperformed >> this is not a high vol stock, obviously. i think people are going to wait

to see what the strategy is, how much value added time warner i think it's a good deal not a bad idea they may have priced too much -- paid too much, might have been a xwhink but they're going all in >> what do you think on at&t in particular >> we don't have investment in at&t but what you showcase particularly with at&t being down year to date, there are so many other great opportunities in the market and again i go back to the secular growth stories that can do well within the space you're investing in, irrespective of the backdrop, irrespective of the interest rate environment, and i just question the validity of just the telecom exposure given the backdrop of rising interest rates. >> yeah. i don't think you're the only one. we will monitor that at&t move also want to talk about the banks here financials were the top s&p sector performer today the financial spider xlf hitting its highest level in ten years we did see higher treasury

yields, underpins this move. >> higher treasury yields. they are cyclical on some level. they benefit from the economy doing better that checks off two boxes of what investors tend to like at least today. and then in general i think this idea you might have a net tightening bias with the next fed chair. all of it fit together what was interesting today was tech financials and industrials all worked today outperforming the s&p. that's kind of rare. usually they sort of trade off a day. >> and that's very bullish, isn't it >> how people want the cyclical exposure in different forms. yeah >> all right before we continue that discussion let's get to the earnings on express scripts. bertha coombs, tell us about it. >> it's a mixed quarter for express scripts. on the bottom line they were right in line at $1.90 per share adjusted but the top line revenues a little bit light. 24.68 billion. the expectation estimate was for 25.64. the company says notwithstanding, though, the fact that it's built in, the fact that everyone knows they will not be getting renewed by

anthem they still expect that their full-year earnings will be higher than expected they're raising that outlook to 6.9 0r 6.95, 7.05 per share expecting 95% retention rate even as they'll be using anthem. the call isn't until tomorrow morning. the key issues will be the fact that anthem is moving on with cvs and also what kind of feeling they may have about working with amazon. a lot of folks really interested in wondering where express scripts might fit in if amazon written deed to decide to move forward on a pharmacy strategy back to you. >> that stock not moving at all. i don't know if it's held or not. it's likely that it is >> yeah, it seemed like it might have been halted i have to say one of the more hated stocks you're going to find in the market right now it's been a terrible performer the street has kind of turned its back on it after the anthem deal it seems like the bar wouldn't be very high in terms of the results they had to deliver.

we'll see if the stock does react with any relief or not >> i'm being told it's likely not held, as they would say, or halted, but there's just no trades to your point -- >> nobody too interested right now. >> clearly nobody's trading on a possibility that amazon looks at it if they're going to get into that business. >> they're not going to try to anticipate that, i guess >> what do you make of express scripts in that category >> tough category. the secular headwinds are too difficult. it's hard to figure out how big it's going to be and the leverage on these names are going to be huge if their top line goes down a little the earnings are going to go down a lot. if you're looking for opportunities in health care, a name we like recently is allergan, which is down 26%. at least 40% of that business is botox and es tettics it's not an insurance play it's a cash business we think things -- there's a lot of piling on with the restasis patent that was recently lost.

a lot of bad news lately we think if the stock gets too much lower you might see an activist in there looking to break up the company i'd stick with an allergan rather than trying to dig around with a cvs or express scripts. >> cramer likes that one too he's been saying a little oversold chipotle earnings are out. contessa brewer has those results. contessa >> we're seeing a miss on both the top and bottom lines here. a big miss on the earnings per share. estimated 1.63 and said they're coming in at 1.33. that includes a 13-cent impact from hurricanes harvey sxirma. we're seeing that for chipotle in terms of revenue, 1.3 billion versus the 1.4 billion estimated. slight miss there. also they missed on comps. up just 1% versus what was expected here, 1.2%. back to you. >> yeah. talk about another stock that investors don't love and they're not putting out any results that are convincing them. certainly that's the case for

chipotle 1% comps i'm thinking about mcdonald's which reported this morning. 4% u.s. comps. what a divergence. >> they misses but they say 13 cents of that was harvey and irma what's the rest of it? >> i think there were mcdonald's in houston too i do think it's obviously a very high burden of proof in the sand they're obviously comping against a week here last year. that's a bear case that these are supposed to be easy comparisons. the stock is supposed to stay above 300. another hated stock as sara said only a quarter of the street likes it with a buy rating 18% of the float is short still. it's struggled to stay above 300. >> it just got a downgrade from bank of america not too long ago on higher labor costs. >> and avocado costs >> i thought everyone was excited about the queso rollout. what happened? >> it was controversial at best. >> we've got the stock was overpriced i still think the stock's overpriced it's not a name we like.

the mexican space has really got a lot of competitors in it now they've damaged their brand to a degree this is a stock that is guilty until proven innocent, and i haven't seen any evidence that they're not guilty at this point. >> you go to los angeles and there are so many mom and pop shops that make -- >> plus they don't have kitkat quesadillas at chipotle. >> even though the stock has underperformed, this is still a stock that is trading at 44 times next year's earnings >> on a 1% comp, sara. you're right 1% com and negative comps and it just doesn't make any sense to me still at this point. sorry. >> i think what you point -- yeah, sara, what i think you're highlighting is we've got one industry with a completely different set of results mcdonald's that has been an incredible underperformer on the heels of declining sales but comping positively and generating positive earnings growth and chipotle trading at

very high valuations and the bar just continues to get lower. so the valuations might actually be underestimating the earnings that continue to trend lower again, we don't have exposure to any of the names, but i think it highlights the need to be extremely selective and know what you're investing in >> that's for sure let's bring bertha coombs back for more on express scripts. what more? >> it's been a busy couple of weeks for express. they've been announcing here this afternoon that eric scloeser, the executive vice president and cfo will be stepping down. he will remain in the first quarter in 2018 to ensure transition and they have named executive vice president james havel as the new cfo express scripts as well, if you'll recall, did announce its own acquisition of evercore. this is a medical management firm for about $3.6 billion so lots to talk about tomorrow

morning on the call. >> all right, bertha, thank you for the update we watched that stock still under pressure we do have a news alert now, not an earnings alert but a news alert on twitter julia boorstin has the details >> twitter announcing a new transparency center to share all information about all the ads on twitter including political ads. the new transparency center will show all the ads that are currently running on twitter including which ones are targeted to you and what personalized information you're targeted with. people will also be able to report inappropriate ads or say me don't like certain ads. for political ads twitter will change their look and feel to make sure that they are clearly identified and will also disclose total campaign spend by advertiser along with information about the ad buyer including their other ad purchases. these updates will first be made in the u.s. and then will roll out globally this comes ahead of twitter executives testifying next week on russian-purchased ads and also on the heels of senators

introducing the honest ads act twitter says in its announcement that it looks forward to engaging with congress on this process. guys, back over to you >> i'm sure it does. >> julia, isn't this what klobuchar and warner were proposing in their transparency act? >> yeah, so what klobuchar and warner are proposing is something that is not just going to be about twitter and not about facebook alone but about any digital ad purchases that are for political ads. this is clearly looking to addressme many of those concern and just make sure consumers can really understand the political advertising they're getting targeted with and there's transparency about everything that's going on with ads on twitter because this is certainly going to be a big issue that's not going away anytime soon >> a golden rule, michael, regulate yourself before congress can >> right it was clear they heard the footsteps on this one. i think the argument kind of moves over toward these are political ads presented as political ads, correct

by an organization looking to sway somebody's vote as opposed to a lot of the kind of troll farm stuff that attack twitter that tried to disrupt the political debate a little bit. so you can't do anything but without a doubt just like facebook's doing you have to adapt. >> and just like broadcasters do and any other media the disclosure around political ads clearly is something that is needed >> more transparency nobody ever argues against it. >> i remember twitter actually got a little heat from senator warner last time they did testify for not providing enough information when it came to the investigations into russia and just stataking basically what facebook had found out -- >> the initial offering definitely did not satisfy the committee. >> what do you make of the social media category? the wrangling -- >> it's tough. being more of an income shop we don't typically go in but i do think there's a pretty decent case to be made where these companies are going to come under enormous political pressure i've heard the analogy made that they could be what energy was to the obama administration i think there might be some

truth to that. when you look at facebook and all the money they make and you just wonder like why aren't we doing a little more as far as some of this stuff is concerned? and they're going to be under the gun for quite some time. >> bill, we'll give you the last word here. impact investors we're going to start to get these companies rolling out earnings on thursday and they're set to show that despite the political pressure it's not hurting their ability to make money at this point. >> that's correct. and i think what you point to are two key ingredients for price movement and that's the multiple which obviously could come under some pressure given this uncertainty of regulatory oversight but also earnings growth and these companies, facebook, google and others that we've talked about, have tremendous earnings power and generate tremendous cash flow. so as we -- as we see earnings come through and we have about 25% of the s&p 500 earnings that have come through to date, over 70% of the companies are actually exceeding expectations both in earnings and sales growth in addition to that we can see

some positive catalysts out of washington as it relates to policy and regulatory reform hence the leadership we saw in financials today >> we will see jana barton, mark spellman, always good to see you both. thank you for your insights today. another busy earnings day. chipotle shares under pressure, a lot of pressure, after reporting disappointing profit and same-store sales when we come back, we'll talk about whether you should be buying or selling that stock after these results. >> and this year's market rally showing no signs of slowing down that's helping fuel td ameritrade's growth. the ceo coming up. >> you can contact the show here on -- we've got twitter, facebook you can e-mail us. you're watching cnbc, first in business worldwide is this a phone?

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so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. the last of the four we're waiting for, texas instruments out with earnings. simma modi tell us about it >> 12-cent beat on its bottom line, dollar 24 x items. revenues also coming in better than expected at 4.12 billion primarily driven by their automobile and industrial companies that continue it use

texas instrument chips i just want to point out that analog revenue grew 16% and embedded processing revenue grew 17% from the same quarter a year ago. you can see shares basically flat, slightly lower here, but this is a stock that has had a really strong run so far this year, up 30% in 2017 back to you. >> if that's a valid trade, we saw it pop initially maybe someone read the fine print. because that is a decent beat. >> by somebody you mean a news reading algorithm caught the word wrong yeah, that's usually the way it goes not only is it up 30% year to date, 20 something percent in the past few weeks when people get excited about the internet of things they tend to go to texas instruments maybe some giveback is in the offing >> chipotle shares moving harply lower in the after hours here after the company just o'reported earnings that missed expectations joining us with more on these numbers, steven anderson and

nick seton from wedbush securities miss on revenues, miss on comps, on operating margin. they had all these health scare problems over the last year. what's still weighing down the results? why can't they come back from this >> the foremost problem is the q4 implied guidance of down 1% comps. if you can't even comp positively even low single digits in this environment, that begs the question is this a broken business model at this point? we need to see double-digit comps just to have any kind of chance of getting back to the prefood prices and average sales per unit and already we're seeing negative comps. the queso was just a phenomenon that stayed positive in q3 but q4's off to a bad start, at least based on what the implied guidance is. >> steven, you've got a buy. defend it. >> considering everything that

happened with the norovirus scare as well as a lot of negative media buzz about the queso launch we're still positive over the next 12 months on this stock. predicated on four things. first their ability to generate full margin sales. that wasn't the case a year ago. we see going forward is the ability for them to generate more off premise sales, get more generated sales on tech-related sales. also looking at new product. this is a company that has enabled it to take a little more risk the launch of queso is an example of that. it may not have gone as smoothly as some have thought but one month after launch it looks like sales are stabilizing. we did our own research and found that 15% of customers are organized the queso. media buzz notwithstanding, that's something that i think is going to be a successful product in terms of not only comp growth

but also in terms of margin. >> nick, when you say you have to almost question whether the business model is basically unproven still at this point, what does that exactly mean and what does it mean for chipotle in terms of trying to turn that? you're suggesting they were overearning for all those years because you did have the long lines and basically traffic was just fighting their way in how do they fight their way back from menu and everything else? >> you felt good eating chipotle you felt like you were saving the world even based on their marketing campaigns. so at this point that's completely been undermined that begs the question whether you can actually add another 125 to 150 stores next year. those new units are coming in significantly below even the current run rates. you know, that begs the question whether -- now you've tried national advertising, tried new product innovation what else can you possibly do to reinvigorate sales at this

point? and if you can't take pricing your margins are going to get decimated over the next couple of years >> another black eye for bill ackman, mike >> it would seem yeah he clearly didn't pick the top but definitely was premature in terms of where the stock was going to go. >> we have to go at this point steven anderson, nick setyan, thank you. with the stock down more than 8% in the after hours we have a news alert out of washington on hurricane relief package right now. hampton pearson has details on that how's it standing right now, hampton? >> how are you doing, bill more than 80 votes have been cast in the u.s. senate in favor of a $36.5 billion hurricane relief package so we're just waiting for that vote to be final it will go to president trump to be signed. it will, among other things too, provide a big infusion of cash for puerto rico, which of course of all the hurricane-hit areas has been the most cash-strapped one of all but anyway, $36.5 billion

hurricane relief package pretty much on its way to the president's desk including much-needed disaster relief for puerto rico as well as texas and florida. >> yes much needed. good to see, as expected hampton pearson, thank you >> thanks, hampton >> facebook already allows you to order food through its app. and now the social media company's teaming up with td ameritrade to let you trade stocks up next, we'll hear from the ceo oc the online broker tim hkey in an exclusive interview on "closing bell.

it is time now for a cnbc news update with contessa brewer contessa >> hi, sara. here's what's happening right now. bill o'reilly's been dropped by his talent agency. according to the "hollywood reporter." but his representative says he already has a new agency this comes of course after "the new york times" reports o'reilly paid $32 million to settle sexual harassment claims the university of notre dame got a $100 million gift. the money came from businessman kenneth ricci, a 1978 2k3wr57b8g9. but the school won't get the money until after his death. it's part of his estate planning and he placed no requirement with the gifts, making it the largest unrestricted gift the school has ever received a quick-thinking gas station employee hid in a freezer during a robbery in florida he called the police and they were waiting for the crook outside as he took nearly an hour to collect the items in his

car. because you know, it takes a lot of time in a mini mart sacre bleu there's a butter short nj france and it's leading to soaring prices for croissants. it's because milk or as we call it in france lait production is down at the same time butter, or beurre, is rising. just wanted to show off my french skills. >> somebody got an a in french in high school i'm guessing. >> i lived there for six months. it might have been the best six months of my life. >> and you know god forbid you can't substitute butter with margarine. >> thank you, contessa see you later. td ameritrade shares are climbing higher after reporting the better than expected earnings out this morning. >> joining us now in an exclusive interview is tim hockey, td ameritrade ceo and president. nice to see you again. >> welcome back. >> thanks for having me. >> last time you were here you talked a lot about the trump rally and the trump tweets and how it was leading to all of this action and volatility when it comes to the retail investor.

are you still seeing that phenomenon >> not at all. that basically was probably a three or four-month wonder and then it essentially disspaitded and as you know we haven't been having a lot of volatility in the last year frankly other than that little flurry we had post-election. >> but we have been having a big rally. so what is retail participation when it comes to that? >> retail participation is up. there's no question that every time we announce another record close that retail investors' ears perk up and so we see quite an engagement uplift our new accounts are going up. and we have significant increase in our net accounts year over year for example, we're up about 30% in our accounts this year over 2016 so market participation is broad. >> this deal with facebook where people will be able to trade through facebook, who called whom i'm curious first of all on that one. and is this for people who wouldn't ordinarily be trading on your website otherwise?

>> our philosophy is we want to be where our clients are and as to who called who, i'm pretty sure we called them i'm not 100% sure. i can tell you how it happened we had one of these bot-type challenges where a bunch of steams said i think this is what we can create. i think we have 100% of these bots created this was a big one, obviously a partnership with facebook to first offer a couple of months ago just access to market data, some education videos and then literally two months later and yesterday we announced a trade activity as well it's very slick, very easy, very intuitive, very fast so -- >> it has millennial written all over it. >> it sure does. >> are the millennials just not going to your website to trade >> they certainly are. under 35 years of age is about

38%. >> $80 billion for the fiscal year where is it coming from? i know the way the firm is set up you do obviously have sort of very active traders, others that are more asset allocators. and then you have relationships with all the financial advisers who i guess can also bring assets to the firm where's the money coming from? >> in terms of the -- it's broad-based, first of all. in the split between you are institution and our retail business, 80-20 going into our institutional business >> that's the investment advisers >> exactly the ria institutional business so we're up 33% year over year 80 billion this year as you mention td was 60 billion last year but our institutional business was up 50% year over year that's a spectacular trend going into that particular wealth channel. broad-based, as i said retail engangt at the same time it's been a good year. >> are they doing well the retail investor? >> well, r0rd hiecord high

i think the retail investor's doing pretty well. >> always good to see you, tim, thanks >> thanks for having me. >> let's go down to josh lipton for a quick earnings alert josh >> sara, amd reporting eps of 10 cents. that's versus expectations of 8 cents. revenue 1.64 billion versus expectation of 1.51 billion. just looking through the segment, sara, commuputing and graphics segments, notebook and desktop processors graphics chips, 819 million. people now of course, sara, using those graphics chips to mine cryptocurrency. the enterprise embedded and semi-custom segments, so that would mean game console chips, would also mean that new line of processors for the data center, the epic line, that clocks in at 824 million. as for the outlook, amd saying it expects revenue to decrease about 15% sequentially they say the mid-point of that guide will result in revenue increasing in the fourth quarter about 26% and they expect 2017

revenue to increase by greater now than 20% sara, back to you. >> josh lipton, thank you. we watch shares of and, mike, down 6%. >> the volatility that's not evident in the whole market does tend to make its way to amd. it's a very jumpy stock. doesn't look very cheap. and got a little bit caught up in the whole cybercurrency too probably has to settle out a little here. >> we have more on chipotle's earnings contessa, now what >> we are just now learning that the board today authorized repurchase of $100 million worth of chipotle stock. that stock right now has gone down in after-hours trading. it looks like it's down more than 8% to 297.5 of course they missed on sales, missed their comps, missed on both the top and bottom lines here but especially their earnings were off by 30 cents. i think some would say this is based on all the big expectations going on with the launch of the queso and the fact

that in execution it just failed with a lot of the consumers there, bill. >> i don't know. am i being too persnickety to say they could do a little more with $100 million than to buy stock back at this point >> i don't know if you throw money at the problem they have $100 million is about 1/3 of a day's average volume i just looked it up. it trades a million one shares a day. $300 stock, right? so it's not exactly a huge chunk of stock to soak up. and oddly enough they have the cash >> it's the lack of clarity on the turn around, i think >> fewer customers >> men menu getting excitement among customers. >> contessa, thank you, by the way. it is the end of a century-long era at sears the retailer announcing it will no longer sell whirlpool appliances after that century-long relationship. up next, former walmart u.s. ceo bill simon will tell us whether that's another sign that sears' survival could be in jeopardy.

and later we'll talk about the future of bitcoin and online payments we're joined by paypal's chief operating officer bill ready, back in a minute

if you're just joining us, a quick look at how the market did today. as sar as has been reminding us, the dow is in all-time high territory today with a gain of 167 points s&p, russell also higher but no records there. after hours plenty of earnings to go around and some mixed stories here at&t actually, everybody's lower now, aren't they, gang? down 1 1/2%. even though they -- though they missed on the top and bottom lines. chipotle just getting hit today down almost 8% off the lows. express scripts down and advanced micro devices bonus earnings report down 6 1/2% at this hour. and meanwhile, take a look at sears stock today. that stock down more than 8% after the retailer announced it will no longer carry whirlpool appliances due to a pricing dispute and changing market dynamics >> plus lowe's will start selling craftsman tools. it was a brand that was exclusive to sears for 90 years

until stanley black & decker bought it this year. sears stock down in the last six months making retail watchers and stockholders wondering just how much longer can sears keep going on like this or even keep the doors open joining us now is bill simon, former ceo of walmart u.s. bill, we've been asking this question for a long time, and it has been a steady and painful decline. what's next? how much longer can it go on like this? >> it has been painful to watch. honestly, it's a great american brand, an american icon-x it's like watching a train wreck in slow motion. it can go on for as long as the ceo continues to loan them money, until he runs out of money or comes to his senses the fundamentals, though, are that there really is nothing special anymore and in order to be successful in a very, very difficult retail environmental you have to be special, you have to be famous for something and sears isn't the cheapest, it isn't the most luxurious, it doesn't have the best locations and now it doesn't even have exclusively craftsman and

kenmore. kenmore's available online, and you just reported craftsman's available at lowe's. so there's really no reason to go there and until they can figure that out it's going to be a very, very tough road. >> what about whirlpool? this has been no great shakes for them either. that stock was down more than 10% today and they reported last night in their earnings their costs of materials have been going up that's probably where the price dispute came from for sears. >> yeah, you're right. i mean, whirlpool's not been lighting the world on fire and the loss of the brand won't hurt whirlpool or sears, but it's really -- for sears it's more indicative of the fact that if they're losing long-term, you know, partnerships from their suppliers that goes with investors that bailed on them last week. they're just not good signs. >> it's interesting to me. as bill says, in terms of the ceo eddie lampert's -- it's basically in his hands as to whether -- he really controls the company. and it's been a managed retreat

for so many years. every single time they report results they talk about their liquidity, their access to continued revolving credit lines. it basically has been this decline. i think one thing people may overlook is half the stores and a third of the revenue is kmart. it's not necessarily sears proper do you think kmart has more or perhaps less of a ongoing place in the retail world as it stands right now? >> kmart still has a few really good locations that's keeping them afloat but you take two businesses that have been struggling and you put them together and then somehow you think that together they'll be better than they were separately and it's just not the case i think kmart's struggling too and maybe separately one of the two of them may have been able to make it but put them together and i just don't know that there's enough capital, intellectual resources or market dynamic available to save the both of them >> so what do you do if you're a

shareholder of sears >> i've been running a long time ago to be quite honest with you. what we saw this week from some of their biggest investors >> absolutely. bill simon, thanks for weighing in >> thanks, bill. >> former ceo of walmart u.s new data is suggesting apple pay is now dominating the digital payment space. paypal's chief operating officer bill ready is joining us and how that company is handling this competitive market

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they keep on coming. let's send it over to seema mody for another earnings alert >> regal entertainment up about 4% in extended trade on what seems to be a beat on its bottom line and top line. 7 cents adjusted that is 2 cents better than what the street was expecting some interesting comments from management the company says in a challenging third quarter box office environment we were pleased that our ongoing focus on customer amenities had a positive impact on our market share and operating metrics including significant growth in both average ticket price and concession sales per patron. that was amy miles, ceo of regal entertainment group. of course it has been a challenging environment for these movie theaters stock up about 4%. still lower for the year back to you. >> a lone gainer among the companies reporting earnings tonight. thanks, seema. see you later. meantime, paypal is launching a

new service for businesses will it be enough to compete against the likes of amazon payments and the market leader, apple pay? paypal's chief operating officer weighs in, coming up >> and tonight on "fast money" there's one sleeper dow stock that is set for a big breakout according to one technician. and he will reveal the name coming up on the show. whoo! ( ♪ ) 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. ( ♪ ) ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour.

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shares of paypal have been up more than 5% over the past week after launching a new service called paypal for marketplaces it allows companies add services to paypal like commissions, fees, partner payoffs.

>> joining us to talk about that and much more from the money conference, paypal ceo bill ready. he's with deirdre, take it away. >> i know it's been a busy few days they mentioned one of several announcements, i want to ask you about letting messenger users send money with paypal you've already integrated with paypal and siri. could we see it in whatsapp? >> we're allowing people to make person to person payments inside messenger are. we think it's a great thing that lets users do p to p payments wherever they are. we see tremendous uses with p to p. we've partnered with google, apple, and others across the ecosystem. we think there's explosion of new contexts we've opened up our platform

>> will we see more of these agreements on the way? >> we've announced a number of these over the last couple of years. i think what you're seeing is that players in the ecosystem are recognize that go the unique nature of paypal and our two-sided platform connects people with merchants in ways that others can't. we see companies come to us as a preferred partner. >> yesterday we spoke to amazon pay's chief who says so many paypal users already have accounts with amazon a report today says amazon will be responsible for nearly half the u.s. e-commerce sales this year is this a market that paypal can afford to miss out on? can you afford to not strike a deal with amazon >> we're growing far faster than the industry we're gaining share in a rapidly growing industry you see that we have, you know, a tremendous portion, 75% plus

that work with us. we have some of biggest tech ecosystems in the world, not just google and facebook but also baidu and alibaba we're working with a number of the other tech platforms, visa and mastercard issuers we're partnering and finding interesting ways to create mutual value with other big players in the ecosystem can i say which ones are next? no, but our platform is ready to go live with many partners >> bill has a question from new york >> bill griffeth here. clearly we're in sort of land rush portion of the cycle in electronic payments. everybody's getting in to test it and see how it goes you've been in it longer than most to survive long term, do you have to become something of a niche player in who you serve and how you serve them, or can you still be all things to all people as many are still trying to do right now?

>> i mean, i think it's going to be different answers for different place of busineyers paypal is really the only place in the world where you have a two-sided platform of consumers and merchants that can control the experience end to end. that's let us do things like light up paypal one touch for 70 million plus consumers and 6 million plus retailers and 200 markets around the world that unique nature of paypal means we're a place that other players look first that's how we're playing it. i think there's going to be a lot of consolidation in the industry, a lot of players are reshaping. we're looking to be a great partner to others in light of great new experiences. i think you see that in our results, that part of our acceleration in new users, acceleration in our volumes, is evidence of us becoming a preferred partner for much of the ecosystem. >> bill, thank you very much for being with us. >> thanks for having me, deirdre. >> back over to you guys >> deirdre, thank you, bill, thank you for joining us today

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well, the old earnings parade marches on tomorrow coca-cola, visa. michael, what are you watching for? >> aerospace names, northrop grumman, general dynamics. i'm wondering if we're going to see it today with caterpillar and 3m, might get -- >> so boeing is the top performer, up 70%, now followed by caterpillar >> it's amazing. >> up 49%. >> the heavier the products the company makes, i think the better it does i'm just kidding >> i get it. i'll be following two dow components tomorrow that i cover, coca-cola, and nike has its big investor day bomb have been not the hottest stocks in favor with investors and both are sort of in a

transition we'll see what the companies say about it >> meantime, all the companies report earnings tonight, regal cinemas is the only one that's positive >> regal is a good test of low expectations they maintain 5% dividend yield. >> good point. hey, that's it for "closing bell." the three of us are back tomorrow hope you are as well >> "fast money" begins right now. and "fast money" starts right now on a day where dow has gone wild, soaring 200 points. some of the heavyweights absolutely crush earnings expectations 3m having its best day in a year, 3%, caterpillar up 8%, at a high what can you buy at these record highs? guy adami. >> caterpillar, there has to be a cat tracker in front of every hole to be dug next