krispy kreme, pete's coffee. it would make sense synergistically for this to happen >> by the way, is tim seymour on "fast money" tonight because mattel, only s&p stock up double digits right now. >> after losing 10% last week. thanks for watching "power lunch. >> and "closing bell" starts right now. >> michelle was supposed to say that hi, everybody, welcome to "the closing bell," i'm kelly evans at the new york stock exchange. >> i'm wilfred frost in for bill griffe griffeth sources telling cnbc a bit of a story, though, david faber has details coming your way. >> he'll join us in a couple moments. meanti meantime, an industry with talk of consolidation, the food space, hershey's ceo will join us in cnbc exclusive on its busiest day of the year, the day before halloween.

private equity on track for a record year fund-raising, we got the woman in charge of goldman sachs' clients, alison mass, her first tv interview ever. >> very much looking forward to that. let's begin with the top market story with the equities pulling back on new details about congress' tax reform plan. ylan mui has the latest on what could be a delay in its implementation ylan >> kelly, republic b cans considering phasing in the reduction of the corporate rate according to "bloomberg news." under this plan the rate couldn't get to 20% until 2022 one word of caution here, the tax bill is still final yet. 20% corporate rate is one of president trump's red lines in this debate. white house press secretary sarah huckabee sanders appeared to throw cold water on the phase-in idea this afternoon >> the president laid out his principles and doesn't include the phasing in we're sit committed tothat moving forward, but, and i don't

have any reasonable -- >> the reason this is even coming up is republicans have a revenue problem. every percentage point reduction in the corporate rate is worth roughly $100 billion so you can save a lot of money by drawing out some of these cuts, and there are some economic models that show there's only a minimal impact to investment in gdp when you do that now, republicans are already making concessions on one of the biggest pay fors, the state and local tax deduction. house ways & means chairman kevin brady saying he's willing to let taxpayers keep their deduction for local property taxes but still get rid of the one for state income tax guys, the ways & means committee is holed up today and tomorrow, trying to figure out all these details before the big reveal on november 1st back over to you. >> and ylan, of course, this morning the big question as quell well was is there going to be an indictment, who would to be on, what would the topic be? now that we know the details is it directly affecting the ability of the administration to

push forward with tax reform. >> you knows right now it seems this entire ball is in capitol hill i know that members are working really hard. been working over the weekend to try to come to those final decisions on some of these details. so right now, it seems like at least for the lawmaker level, for its staff level, this is something that is not going to be throwing off their timeline however, it does potentially shift the momentum in washington, momentum is the name of the game, if you got speed behind this bill, if you keep winning, you keep winning, right? if there's something that comes in the way of this, perhaps derails or delays this plan, that could be a whole different ball game. >> ylan, i was surprised to see this, i don't know in it's a trial balloon, where it's coming from, if we're going hear about it when the plan's announced wednesday, why would the administration delay implementation of something that could help the economy to the point of which the next election will already be upon us and we may not see any of the effect it may? >> the main thing in terms of

delaying the corporate rate, they need to raise money, right? they have a wish list that's $4 trillion to $5 trillion long of tax cuts they want to implement, but a very small box of $1.5 trillion relative to the size of their wish list they have to work with. they have got to find some way to pay for the tax cuts and some of their big proposals keep getting scaled back, keep getting walked back so they need to find some other solutions and this could potentially be one. >> ylan, thank you very much for that we did see markets pull back a little bit as that story came out. >> dow is down 85 still. what was that, about 11:00 this morning. we've seen it tip over. >> lost a little bit of its momentum certainly what's lost a lot of momentum, shares of sprint and t-mobile getting hit hard on a report that their merger talks is been called off sources telling cnbc's david faber a slightly different story. he joins us with the details david? >> thanks, wilf. this is an odd one to say the least. the japanese press nikkei reporting earlier today according to their sources as of

20r78 so softbank would make if known, between sprint and t-mobile, it was to longer interested in doing so i'm not hearing that i'm speaking to people close to the situation on both sides very much skbi matby senately inv y intimately involved. i will say over the last couple weeks i've heard notes from both camps in different areas and that continues and, in fact, those two separate issues seem to be on the soft bank side related to governance or said a different way, the power that sprint would have, if any, in a merge, sprint and t-mobile, while on the t-mobile side as they continue to do their due diligence on sprint, people have been pointing me toward a potential exchange ratio and what the price ultimately would be, despite the fact both camps had identified certainly a range, a fairly

tight range for the price and not to mention that deal point number one had been for deutsche telecom, the owner of t-mobile, the majority owner of t-mobile that it wanted to continue to consolidate t-mobile on its financials which means it would be the controlling shareholder that was deal point number one t-mobile had thought that softbank, sprint's owner, had fully agreed to that as they move forward perhaps something of a surprise to that side, in fact, is what i've been picking up, this idea that had been expressed in the japanese press that they would pull out as a result of no longer believing that their voice would be heard well enough in a combined company and as well the softbank board, i'm told, on friday, did make it clear to the man who founded control softbank that it was worried about whether or not his overall view for telecommunications in the world and particularly in the u.s. market that still is a structurally significant part of the way he thinks about the world and how it evolves, would

be met with this potential deal. and so this is where we find ourselves. now sources indicating on both sides they do continue to negotiate right now. there has been and seems to be an expectation that if they can't reach a deal on price this week, the two sides will abandon the talks. and if they do, well, then we might get an announcement of a definitive agreement as soon as a week or two from now so, we'll be watching it closely, but it does appear some of those reports were a bit exaggerated, though it is safe to say that the notes i picked up a couple weeks ago have only grown in terms of at least how loud they are on both issues of governance, apparently on the softbank side and price to a serb certain extent on the t-mobile side, guys. >> we see, david, basically how much the market priced in the deal, you have analysts who cover the sector who are already assuming basically it's done and looking beyond that for how they would use the spectrum, how they would use the synergies and cost savings and how it mike make the

wireless space more competitive, a combined entity, could compete more effectively against at&t and verizon. it's really interesting to now see maybe this isn't going to come together and doubt that's the last we'd hear about some kind of tie-up in this sector or reaching across to the cable companies. >> well, you know, certainly we know, i reported it as well, softbank thought long and hard and made attempts to acquire charter, to reference in part what you're talk bing about, kelly. perhaps they'd try again they did meet significant resistance from tom rutledge and did not move forward with a proposal to acquire that company, then moving back to focus on t-mobile and where they are right now. that's certainly a possibility to your overall point, if anybody out there thought there was going to be an impedment here, they thought it would be on either side saying we don't think this can get through on the antitrust review, that the department of justice will continue to view this potential deal as anti-competitive that would is beencertainly th

best guess of anybody in terms of what might have stopped this potential deal from occurring. not what is happening now. and, again, my sources indicate they have not ceased negotiations and that they are not planning on sending, that is from the softbank side, to t-mobile, something that says we're out as of tomorrow it is fair to say there are hurdles that perhaps had not been fully understood as little as a couple of weeks back. >> david, thank you very sticking around for us he's a busy man. david faber. was actually going to say, masa son, whether he's agreeing to negotiations or not, he's definitely involved with lots of investments. let's discuss the markets further today. joining our "closing bell" exchange, sylvia, managing director of capital markets at direction. steven, founder and president of sarg 986 and contributor at thestreet.com. and rick santelli at the cme sarg, i'll start with you, if i

may. in terms of what you make of this tax reform story that we spoke with ylan earlier in the day, whether that has played into the market selling off a little bit, particularly when you look at how some of these smaller cap stocks reacted as well. >> that's precisely it actually that's the entire reason for today's little bit of a el selloff look at the transports and look at the small caps, you can see there is some smoke behind this fire or fire behind this smoke they must be seriously debating this five-year phase-in for the corporate tax cuts, which if you ask me, has to be one of the stupidest things i ever have heard. hopefully it comes out in the wash a little bit and this 1.3% sell off in these type names is a buying opportunity just thinking. >> well, sarg, unless it's seriously part of the plan, right? >> i don't think this will be part of the plan unless they were trying to sabotage their own plan which they're good at i'm not saying that's completely off the wall i do think this is an opportunity, i do think it's a

path you might travel. >> we'll see come wednesday what those details are. rick, i actually wanted to ask you about some kind of interesting movements in the interest rate space today. you know, we have german inflation was really week. here in the u.s. how about the reports this morning, personal savings, that rate for americans, back down to its lowest since 2007? >> reporter: yeah, they're spending their seeds, their core seeds. they don't have lot of savings it's going to, of course, have an effect on consumerism in general. i think that's a very interesting point, but, you know, the entire report was a bit complex. it had some very good qualities to it, indeed, that were overlooked because they were already embedded in a report last week when we had the 3% gdp. income up .4 was really strong that was the second best number of the year in spending as we all know, best since august of '09. 20-year picture of spending. that 1% is the fifth largest month over month percentage gain really truly good numbers.

the savings rate is something to think about. the seed corn needs to be saved to some extent and may have implications down the road as far as all the stories of the day with taxes, nobody knows how it's going to truly pan out. i do disagree a bit with sarg, the worst thing would be to do nothing. okay anything is better than leaving it the way it is, but the curve flattened a lot today. the short end was pretty muc immune to all the stories about anything and the long end was under a bit of pressure. of course we have an -- excuse me, we have a fed meeting starting tomorrow, probably nothing changed on wednesday when we get the decision but it's also the same week as the big labor report and, you know, the labor side's always important the market's a bit jittery here on interest rates meaning investors want to wait and see how everything look by the end of the week. >> bank of japan meeting tonight as well, rick, but sylvia, i wanted to ask you about tech stocks because there was some serious short-term money to be made as various tech companies reported late last week. how are you thinking about facebook and apple reporting

this week? >> yeah, we've seen a continued run of the s&p and nasdaq. tech was the big leader behind that great earnings from amazon and alphabet and, you know, sitting in my seat, etf issuer with a high beta short-term conviction trade, we see constitutioninstiw coming in, particularly a lot of those names like amazon, facebook, twitter and alphabet on a continued optimistic trend. >> i was also looking at the home builders and, sylvia, given how much leverage you guys have, i shouldn't have been too surprised. this one etf is up 150% year to date nail, i mean, we know the builders -- look at the deal we have again today, lennar. >> big news today. we've seen probably the best housing sales numbers that past september. and there's continued optimism there in the housing sentiment index. we've certainly seen a lot of flow coming into now if you're looking for individual names there, you certainly have home depot, lennar, vr horton,

they may move along with these positive sentiment and optimistic feelings of investors toward that sector >> saw -- >> hey, guys, could i ask sylvia a question >> go for it. >> she's sitting right next to you, sarg, go for it. >> thank you, what do you think of apple i'm long the shares. 176 price target on it it's out this week you're obviously on to tech. what do you think? >> yeahi, look, i'm a forever bull on apple. the guys i work with certainly sli make fun of me for it. i believe in their products. >> it's working. >> i was looking forward to the iphone x launch. i sort of thought there would be some good positive sentiment around it. and, you know, it's just been an upward story for years and it's really helped, you know, our tech etf and i think that overall, people love apple people love the product. >> it's a name to own, not the trade. >> sarg, are you a forever bull on anything. >> i'm a forever bull on something at all times all right? i did get out of my defense names. not my entire position, but i know i've been banging the drum on defense lately. i did get out -- i got out of

lockheed i hung on to my -- >> wait a minute i think you sold them to the lady sitting next to you. >> i still like the space long term i just think you buy lockheed back at 300, it's trading around 309 rightsylvia, what about yous on defense >> on defense, saw the $700 billion senate bill, see a lot of news about, you know, president being pro-military, international tensions on the rise, there's a lot of spending going into boeing and to, you know, aircraft production and whatnot. i think that it's definitely -- it's definitely a sector that our traders have been looking toward it's, again, keeps going up, and, you know, if military spending investment, it's a good place to look for a short-term trade. >> trump trade. >> quickly, what currency are you bull on? >> only one right answer, rick. >> i'm a forever bull on the notion that the markets will always win in the end.

that's what i'm a bull about the markets are always right in the end. >> rock 'n' roll, rick. >> rick santelli, done bla sylvia, stephen, and rick. the dow down 91 points today. the s&p tipping down by ten. the nasdaq down 12 the russell down 19. russell 2000 small caps down more than 1% right now. hershey's interested in buy ing nestle's candy business. michele buck joins us. how they're trying to increase beyond candy into healthy snacks. >> they brought candy today. >> you've already been going for it. plus paul manafort has been indicted on charges including much laundering and tax evasion. up next, what this means for trump's economic agenda. we want to hear from you, reach out to the show on twitter, facebook, or send us an e-mail you're watching cnbc, first in business worldwide alerts -- wouldn't you like one from the market

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welcome back check out shares of amd, advanced microdevices, falling today after being downgraded by

morgan stanley from underweight to equal weight. citing a decline in cryp cryptocurrency next year and flat gaming graphics could put a burden on the company's core microprocesser business adds to the decline we've seen of late, down nearly 9% in the session today. while tax reform and the fed chair announcement was supposed to be center stage this week in washington, the first indictment in the investigation into whether russia interfered with last year's presidential election is taking center stage. eamon javers has the latest for us eamon? >> reporter: yeah, hi, wilfred, we just saw the lawyer for paul manafort appear outside the courthouse here in washington, d.c., kevin downing, explaining some of what his take is on all of this, paul manafort, we're told, is heading to the u.s. marshals service for processing inside the building behind me here we have a little bit of a detail on the conditions here paul man noo manafort is going to g held under for the next couple days same as what the government requested. comply with home confinement,

report in daily by telephone only able to leave for medical issues, religious observances rick gates, his lobbying partner, $5 million unsecured appearance bond. that means he has to appear in court when asked or else h he loses that money, so paul manafort being subjected to some fairly strict conditions near although those are temporary and only imply until a hearing on thursday to iron this out. i talk bed to kevin downing on his way out of here, they haven't agreed necessarily to these terms long term but for the next couple days that's what paul manafort's life is going to be like. downing also said some of this is ridiculous and said the government was trying out a novel legal theory here's what he said to cameras after emerging from the building a few moments ago. >> the second thing about this indictment that i, myself, find most ridiculous, is a claim that maintaining offshore accounts to bring all your funds into the united states as a scheme to

conceal from the united states government is ridiculous thank you. >> reporter: so downing there making some short remarks here at the courthouse. we also heard earlier from sarah huckabee sanders at the white house, she was asked a number of questions about this said ultimately none of this in the white house's view had anything to do with the trump campaign, itself she distanced the trump campaign from some of the officials here and she also didn't rule in or rule out the idea of firing robert mueller, the special counsel, himself here's exactly how she phrased that >> no intention or plan to make any changes in regards to the special counsel, but look, today's announcement has nothing to do with the president, has nothing to do with the president's campaign, or campaign activity. the real collusion scandal, as we've said several times before, has everything to do with the clinton campaign, fusion gps, and russia there's clear evidence of the clinton campaign colluding with russian intelligence to spread disinformation and smear the

president. >> reporter: so the white house there very much hoping to shift the focus to hillary clinton and the democrats but saying there's no intention or plan right now to make any changes in terms of the special counsel, himself, robert mueller so the white house not necessarily saying what the president's going to do on that front. we'll see how that plays politically up on capitol hill in the wake of all these developments today, guys back over to you >> eamon, thank you very much for that full update. >> reporter: you bet. >> for us. and throughout the day all right, we've got about 37 minutes to go until the bell. we're down about .4% for each of the three major indices which is near the lows of the day for the dow. just above it. the nasdaq doing a little better, down .25%. small caps and others exposed to tax reform are toward the bottom, 1.4%. up next, tomorrow is halloween, today is the biggest day of the year for hershey's candy sales. ahead we'll talk to hershey's ceo about how this season is stacking uping on the

door for m&a. a big wager on legal marijuana. 'lbryou all the details of the beer maker's bet when "closing bell" comes right back. 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. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person,

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welcome back to "the closin bell." let's check in on today's market movers the broad index down 0.4% for the dow, s&p shares of macy's falling after receiving a downgrade from citi from sell to neutral significant pressure on sales for several years. this movie coming on the heels f

jp penny's weak profit forecast announced last week. down 4%, macy's today. general motors posting decline today after being cut to sell from neutral by goldman sachs, goldman saying it expects the car maker's earnings to take a downward turn in 2018, trading down 3% today. the her vshey company prep e preparing for its biggest day of the year halloween spending will hit a record over $9 billion this year joining us in an exclusive interview now is hershey's ce i michele buck. >> thank you very much. >> today is the biggest day. >> today is the biggest day. it's the day before halloween so everybody is stocking up for the big day. >> it's also the biggest season as well of sales >> it is. >> more than christmas or easter or valentine's day. >> it is the biggest season. it's really a season focused around family and friends and traditions with costumes and, of course, trick-or-treating. >> why is spending up 8% this year you know, we never know what to make out of these surveys but

every year they say, people are going to spend 3% more, going to spend 8% more this year, over $9 billion. what's going on with halloween >> i think consumers are really enjoying experiences where they can combine friends and family with some of their favorites, and certainly as we look at our hershey brands, hersheys, reeses, kit kat. >> do you feel the strength of the brands today is as strong as ever or the changing nature of retail putting more pressure and price competition into what your business model is? >> no, i'm seeing the strerngth of our core brands be better than ever. our five biggest core brands were actually up mid single digits about 5% on a year-to-date basis and saw similar results last year so we continue to see growth on those brands they're among some of the most favorites with consumers >> going to change pretty aggressively the way you do advertise them away from traditional linear television

models, for example, onto the social media platforms, where are you finding the most r resonance with your advertising? >> sure, we try to reach the consumers wherever they're consuming media, for some that's television, for some that's digital. increasing level of social need y media to reach the younger consumers especially. >> mongolese, what is the rationale behind not combining with a giant like that, taking advantage of synergies there to really create a global confectionary giant? >> you know, i think snacking is growing, consumers are snacking more and more. snacking and confection are both great categories therefore, i thnk there's a lot of interest in those category and in those brands. >> is it hard because of how much hershey means to pennsylvania does that mean that the state, you know, whatever the price may be that it just has to be that much more compelling or the guarantees about staying in your preej region have to be that much more

firm for you guys to ever look at a deal like that. >> you know, i'm really focused on creating shareholder value, to me that's about driving our core brands, making sure we bring great innovation to the marketplace because that's what consumers are looking for. really driving our business in bricks and mortar and also expanding into e-commerce which is a high-growth channel then lastly really expanding into new occasions, either with our core brands, or via m&a. >> also a giant hershey bar just arrived which is very nice to see. separately, what about m&a in the opposite direction considering any acquisitions yourself >> again, i'm very focused on driving our business and creating shareholder value with what's in my direct area of focus right now. right now my key focus is halloween as you can see our key characters over there. >> indeed. ringing the bell in just a moment in terms of that potential m&a, we've seen some of your rivals

under activist pressure at the moment, some people calling for some of them to be split up and certain assets to come off nestle u.s. has been mentioned is that something you've considered >> you know, i'm really pleased with the performance we're having in the marketplace so we've had strong year to date performance, had a good solid q3, growing the top line as well as our eps in a vol time environment. we are on track to deliver at the high end of our eps growth this year and feel great about that >> final question, i know we pushed you on this quite a bit, i know it's difficult, of course, to talk about, but a lot of other companies have pivoted more toward health and away from snacks and candies what's your philosophy about that >> you know, if we look at consumers, consumers have lots of different snacking needs. sometimes during the day, they're looking for a treat and they know that confection is a treat. so they see it for what it is. it's certainly not a center of the plate category so we feel good and we feel good about the growth we're seeing both in indulgent categoriy iess

well as health and wellness. we think it all creates opportunity. >> don't make the reese's a health product, okay don't want it to be gluten free or low sodium. leave it alone. >> sort of a once a week product. >> once a day product, okay? >> kit kat so far today. >> we're looking forward to exciting consumers with some of our great products out there for halloween, iconic reese's pumpkin. >> that's right. >> hersheys ghosts i hope all of you will -- >> i like it has a higher peanut butter to chocolate ratio, sh t' what gets me excited thank you very much. >> you're welcome. >> good luck ringing the closing bell with all of your buddies. >> thanks. we're very excited about that. >> michele buck, hershey's ceo. a news alert now, julia boorstin has those details. >> end of the era for netflix's hit show "house of cards." the show will come to an end after its sixth season it's currently in production on

season six which is scheduled to air on netflix next year another 13 episodes of the show. the move to end the show was reportedly in the works since the summer according to "the hollywood reporter." this news comes a day after allegations that the star of the show, kevin spacey, allegedly assaulted an actor when the actors was just 14 years old those allegations coming out several decades after that incident now, spacey, kevin spacey, apologizing for inappropriate drunken behavior and also coming out as gay as part of his apolo apology. but this, of course, has been a very stacandalous day for the sr of the show, kevin spacesy we reached out to netflix and media rights capital which produces the show and licenses it to netflix. have not gotten official comment from either of them. the timing of this news coming out about the cancelation of "house of cards" which of course has been an iconic and defining moment for netflix's push into original content, certainly very notable. back over to you >> yeah, big deal show for them.

julia, thank you very much julia boorstin. time for a cnbc news update, let's get over to contessa brewer. >> kelly, here's what's happening. right now, 11 nations opened talks in japan on the outline of a free trade deal that would exclude the united states. negotiators are aiming to finalize the basic shape of the trans-pacific partnership next month. and they're focusing really on whether to retain items originally proposed by the united states. french president emmanuel macron signed a controversial measure and anti-terrorism law that supersedes the state of emergency in place, that country's november 2015 attacks. the legislation would see many of the emergency powers enshrined in law with limited oversight from the judiciary. thousands of white farmers jamming traffic on major roads in south africa, it's a protest against the murders of farmers among the country's white minority the supporters wore black in memory of farmers killed on their properties. a 2000 bmw z8 sports car

once owned by steve jobs will be auctioned off in new york on december 6th the two-seater features a 400 horsepower v8 engine with a top speed of 18 f mi6 miles per hour car costs $128,000 new expected to sell for up to $4 $400,000 it. to get it going to its top speed in new york city would be, of course, priceless and also not likely to happen that's the cnbc news updaut te this hour. i'll send it back to you guys, kelly, wilf. >> all right, we'll pick up there. joined now by gordon to discuss the close of the market. so first up, financials are down today. we already spoke about how small caps are financials, though, you are pointing to that the fact they were down on friday >> yeah, it's been interesting, you know, look, we're rotational here i think the trend is still good. we're starting to see, you know, not to have the same sort of -- where you would see certain sectors pick up that were beaten down that isn't happening on the same

sort of delta. so we're watching it carefully and we'll see what happens particularly tomorrow, because tomorrow's the end of the month. major liquidity event. the question is will halloween bring us a trick or a treat? >> your take is what >> well, i still think that, look, something derails this thing, there's not something to assume they're going to change the momentum trump tax proposal seems to be some of the guys are starting to hedge on the politicians on that a little bit fed chairman coming in there, got to look at the bond market again, look at the president, may have his assets in a blind trust but he's not blind i don't think he comes up with anything that derails the movement we had. however, that being said, if they come up with something at these levels, you know, we could see the reversal. >> gordon, to hedge yourself in case we get a trick, there's a big tub of candy over there. i suggest you get a handful of that as well >> going to be supporting the market if we -- gdp.

>> going to leave it there kell, back to you. >> all right, thank you both, very much. let's have a look if we can, a live one at a launch of a space-x falcon 9 rocket, space-x's 16th launch of the year morgan brennan joins us, a little more commentary morgan >> reporter: this is a falcon 9 rocket that just launched from florida's kennedy space center it is carrying a korea sat satellite into orbit, a satellite that's going to bring broadband and television access to south korea it will be up in orbit for the next 15 years. why this matters, this is the 16th launch for elon musk's space upstart. that means it has now doubled its previous annual record in terms of launches, most launches it had done in a single calendar year had been eight before now it has several more launches on the docket before year's end we get this first falcon heavy, the next-generation rocket test. more milestones expected for

this company next year but the plan here, and this is going to happen within the next couple of minutes, is that first stage booster stage is going to detach, it's going to come back down, and for the 19th time in a row, the company's going to try and land that back on earth, specifically on a drone ship in the atlantic ocean to be reused as a later time. it's launches like these the company expects to do 30 next year which would be half of all the launches scheduled in the world next year. it's launches like these that are the reasons space-x is now valued at more than $20 billion. kelly, back over to you. >> incredible stuff. see if it can stick its landing. morgan, thank you very much. >> morgan brennan. underarmour shares down more than 40% this year coming up, we'll debate whether this is an opportunity to buy that stock ahead of moowtorr's earnings a pop here, up 3% today. that debate is coming up on "the closing bell."

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straight gains the russell is shedding 18. constellation brands is taking a stake in a marijuana company. next, how the new beverages could soon be at the store and how could that impact the stock. under armour gearing up ii report before the bell stay with us we're back here on "the closing bell" in a couple minutes. this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. 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.

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constellation brands making a push into marijuana-infused drinks >> good afternoon to you, constellation brands chasing a new kind of buzz the maker of corona taking a nearly 10% stake in canada-based canopy growth. canopy is the world's largest publicly traded cannabis company with a market valuation of $2.2 billion canadian dollars planning to work with the grower to market cannabis-infused beverages. the move is seen as a big bet on the nationwide legalization of mare quijuana in the u.s. sayin "our company's success is the result of our focus on identifying early-stage consumer trends and this is another step

in that direction. the brewery's big bet highlights the big question if booze and pot go hand in hand or weed kills booze's buzz there has been clear evidence of substitution between alcohol and cannabis in both the u.s. and canada sands says he doesn't see pot as a threat to booze, but if a consumer is going to choose, he just quantities to offer it all. the deal is expected to close by early november, and it gives constellation the option to increase its stake to just under 20%. wilf, back over to you. >> the thing that surprised me here, guys, please weigh in, i don't know anything about this market, i thought they were going to buy exposure to edibles or growers or something. the 235fact they want to make drinks infused with cannabis, i never heard of that. is that a big thing? are they creating the category is. >> i mean, the fact is they have a lot of cash in general the fact they went to pot is interesting in itself.

you've been seeing brewers ke ed of dabble in this but they're trying more with the flavor. they're not necessarily -- there's no thc in it so these would actually have thc but no alcohol the buzz is a little different so you're seeing people dabble in it. it will be interesting to see. i mean, this -- going into canada really sets the stage and gives them kind of this opportunity to test the market so we'll see how it goes i mean, they've got to grow beyond imports here. they've really been doing well with the krocorona, the madilo this is the chance. >> landon, thank you very much for that we should have asked hershey's clrks ceo about it as well. >> noticed you didn't have an opinion. >> don't have an opinion also similarly not informed on it. market performance with 13 minutes to go before the bell, we're down 0.4% or so last time we looked and we improved a little bit, down 0.3%. the nasdaq is trying to get up to the flat line there the russell 2000 small stocks, small caps down 1.2% shares of under armour

trading down as well today they just had a little pop they've been down a lot recently up 2.4% today ahead of earnings tomorrow we'll debate how to play that stock coming up. later we'll speak to hollywood director rob reiner to ask him about the box office slump. how about "suburbicon " this weekend and whether he'd work with streaming services like amazon or netflix. stay with us risks and capture o. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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art cashin just stopped by to say there's about $350 million to buy on the bell today. you can see that the dow has come back a little bit off the lows we were down 90 points to start the hour off down 68 with ten minutes to go. shares of under armour climbing higher today, 3%. the company also set to report quarterly numbers tomorrow after the bell shares have taken a hit. year to date, they're down 40%. joining us to debate if this is a buying opportunity, liz dunn from proforma and josh, good afternoon to you both liz, you're bearish on the stock. let's start with the main reason for that it's discounting in this category based on very tough competitive retail environment. >> right, it's a tough environment. the growth is slowing. it's ver nike's treading water.

adidas is gaining share. i think under armour's growth is -- that growth is starting to slow down. the multiple is contracting. >> they're down 40% year to date you think it still could do worse from here? >> i think it could do worse from here. i think in the near term we might get somewhat of a relief rally after the results tomorrow, if the results tomorrow aren't a disaster i think it could get a little bit of a relief bounce in general, i think the multiple needs to contract. >> josh, we heard last week stories it might be pulling out of certain sports like tennis, other outdoors that they're struggling in. there are others you're pretty bullish on including soccer which is, perhaps, you think people aren't focusing on enough. >> yeah, under armour made big investments into soccer with la liga people aren't talking about, also mlb, major league baseball if you go to little leagues, even jails, they're now outfitting prisoners so when they come out and they play ball -- >> wait, so you're saying under

armour's going to -- its share prices is going to go up because they're outfitting inmates who are going to go play baseball, what >> if you think about it, they're trying to get street cred. >> they're going to prisons. >> no, no, if you hear -- if you talk to the average person on the street, they want to -- the big resistance they're having is in their fight against nike, people want to be lebron steph curry is their superstar of the nrktsba i think that's a great investment it appeals they're going high and they're going low. we're talking to certain companies where they're outfitting inmates why? i think they're doing a lot of things right similar to nike in the '90s i think it's a good buying opportunity. we're telling our clients to tune out mr. market. we think there is good long-term value. they're making infrastructure brands think about it, you think halloween, you think hershey's. >> okay. >> if you think sports, no, you kind of think nike and

underarmour second when i go to my son's little league games, everybody has under armour helmets never had that before. go to your old grandpa, overweight uncle, even me when i'm trying to work out on the elliptical, i'm wearing my under armour shirts. >> do they want you to wear their shirt? >> i don't know if they're going for my sponsorship think about super bowl, saw tom brady get out of the airplane. who was up next to him, giselle. they were in the under armour plane. >> all right. >> i think there's a lot of opportunity. i think it's a good long-term buy. i think short term there's going to be turbulence. >> the numbers coming out this week, what are you looking for, what could make you change your opinion on the stock >> they got in conservatively for this quarter, a little bit pull forward into the previous quarter and push into q4 i think it's likely they're going to lower fourth-quarter guidance they're looking for 20% growth in the fourth quarter,

reacceleration i think that's going to be tough to come by given the backdrop. they got cam newton, steph curry, prisoners apparently a growth industry. >> that's all fine and good. seems like they're reaching a little bit for growth. i don't like things like taking the brand to kohl's. i know it's a big growth opportunity, it's a brand dilution i think it could bounce on earnings i don't think ultimately we're going to see this type of growth out of under armour we've seen historically >> we're going to have to leave it there, i'm afraid an smuthkso ch for joining us. up next, we're coming right back with the "closing back with the "closing countdown. making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

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let's have a look at the major indices. we are off the lows. we're down only about 0.3% or so now having been down the best part of half a percent during times in the session as you can see. nasdaq down just in positive territory. the russell 2000 still lags. small caps suffering because of the tax reform talk. we look at the sectors, telco suffering. of course we spoke earlier about sprint and t-mobile and whether that deal won't come through down 1.6%. real estate doing well technology is also doing well. if we split to the dow movers, apple is at the top, up 2% on talk that sales of iphone x could be going well. they report later in the week. right at the bottom is merck, of

course, issues with their drug key truda. let's join bob pisani. >> important thing, tax cuts spread out over several years, fiscally, the very responsible thing to do. the market didn't like it. lost seven, eight points -- >> the yield curve flattened, the dollar fell a bit. >> sarah sanders did come out in the press conference for the president, said this was not in the president's plan, he's not phasing in tax cuts. a little ambiguous about what's going on here. oil, eight-month high. i think it's important opec talking about, saudi arabia talking about extending the tax cuts we had a lot of volume in big exchange traded funds around energy, vanguard energy, oil services, production all had big, big volume. people were getting in on that remember, burned badly many investors throughout the middle of the year burned as oil kept moving down tried to buy bottoms, they couldn't this time talking maybe $55 is really sustainable at this point. >> oil up some 4% last week. >> we want to point out the retailers, another horrible day.

downgrades over at citigroup tomorrow we'll hear from aetna, by the way i'd love to hear more about the cvs -- what's going on, if anything >> indeed, the dollar has also done -- slipped a little bit that's it, though. ringing the bell is hershey's, at the nasdaq texas independent producers and royalties association. that's it for the first half of "closing bell. kelly's got the second thank you, wilf. welcome to "the closing bell," everybody, i'm kelly evans down day on wall street. the s&p shedding about eight on the bell russell 2000 big decliner of the day. the nasdaq ever so slightly lower, almost into the green today after its best day of the year on friday of course the nasdaq composite below 6,700. the dow at 23,349. dow and s&p snapping a three-day

win streak. goldman sachs losing ble ii billions in trading revenue since 2009 focused on ramping up private equity investing and initiatives to help counteract the losses. alison mass, global head of goldman's investment group is going to join us to talk about the trends in her first ever tv interview. first as we get under way today, today we're unveiling a brand new segment "the rapid recap," we'll get you up to speed on the biggest interviews and most important story of the day here on cnbc >> home builder lennar buying rival cal atlantic group. >> home builders and the utilities are the two strongest, two strongest areas when you look at the charts david, lennar's been on fire. >> this is about building scale and localized markets. these are markets that we know, products that we know. >> it's not easy to do tax reform especially if you're eliminating loopholes. i believe this, the simpler the better i don't think we should finish

people for being successful. >> republican lawmakers are considering phasing in the reduction of the corporate tax rate to 20%. >> manafort and his protege, gates, indicted by a federal grand jury on 12 counts including conspiracy against the u.s., conspiracy to launder money. >> the president tweeting in response to paul manafort's indictment this morning, "sorry but this is years ago before paul manafort was part of the ku trump campaign." >> headlines out of nikkei, japanese news organization saying softbank is now calling off talks to merge sprint and t-mobile together. >> i am told bypeople close to softbank that is not true, that there is not a plan to withdraw from the merger talks. >> joining any on the panel today, we have cnbc senior markets commentator michael santoli, along with dennis burman, financial editor at "the wall street journal" and karen finerman joins us at post 9, president of metropolitan capital. welcome to everybody, with a quick look at today's market,

let's start with the dow closing lower as we mentioned by about 85 points there. off the lows of 103. but did turn lower in a big way on reports republicans are considering that phase-in of the corporate tax rate cut today's dow winner, apple up 2%. biggest loser was merck down 6%. the s&p, mattel came out as a big winner up 11%. amd down 8% today making tha michael, a lot going on. >> awful lot going on. i think the tax reform headlines were a little bit of an excuse to take another leg down, but broader -- more broadly speaking i think we've actually been pulling back for a couple of days friday's buying panic in the big tech stocks covered up the fact most stocks have been gently pulling back, gently consolidating. i think that's okay as we reach new highs here i do think that people are on alert. seems like a lot of targets have been hit on the upside and maybe want to think about taking off some risk as you get to the end of the month. >> we also had apple today as we mentioned, best performer, up 2% on the dow after hitting a new

intraday high, highest level since september 1st, comes on the heels of a big tech run friday investors and analysts are anticipating q4 results after the bell thursday. what do you make of apple's performance? >> i think it was just euphoria that we see sometimes into these new -- the launch already happened but the actual phone delivery starting. i think this quarter we're going to have no idea really what strength will be for the x so i don't know that this quarter's that important i think it will be very important to hear what they say about deliveries, what they say about -- are there in troubles with production? you know, there's a lot of stories you hear, probably 94% of them are not true you got to figure out which six are. i can't do that. i don't know, i didn't want to own it into the launch it follows -- always follows that buy the rumor, sell the news sort of thing now i feel like, okay, now it's all-time high, a little too high for me right here. just sit on the sidelines. >> dennis, whaut about you?

>> hey, we don't know even how the iphone 8 is doing, essentialserg certainly reports it's not been the smoothest of the launches. kelly, when you look at people on the streets, what they're doing, how they're spending their lives, all life is mediated through the phones. you probably cannot underestimate the power of these devices in our lives, therefore, it might make sense to be excited about the iphone x launch. >> certainly slia big week for app apple. an earnings alert for mondalese. >> the stock is moving on the upbeat report, 57 adjusted on its bottom line versus the expectation of 54 cents. revenue coming in above expectations at $6.53 billion versus the street expectation of $6.45 billion. irene rosenfeld, chairman and ceo of mondelez says we're pleased with our improving ref move growth driven by strength of power brands, continued momentum in emerging markets and

europe just breaking down regional sales, net sales in north america, $1.78 billion, slightly above estimates. this is not just a story about emerging markets, kelly, clearly north america also doing well. also just point out mondelez sees fiscal year '17 free cash flow at about around $2 billion. shares are up about 3% kelly? >> all right, seema, thank you by the way, don't miss an exclusive interview with outgoing mondelez ceo eileen rosenfeld tomorrow at 10:00 a.m. on "squawk on the street." michael, what do you make of these numbers? >> firmer than expected. a little bit of a sigh of relief, basically the stocks after hours on the response to the report recouped today's losses did have people bracing potentially in a weak group for something maybe a little bit more disappointing. >> karen, how would you read this whole thing i mean, we spoke with hervy l sy last hour, ceo rang the bell, of course mondelez tried to buy the company. wouldn't do it is there talk of son sconsolida

across the sector? >> clearly the sector is challenged we all know i think it's just going to get more challenged. mondelez is sort of the cheapest of the bunch but didn't jump out at me as really cheap and certainly not on a cash flow basis, either. nice for her to go out on a high note wonder if she wanted -- >> wanted a high note. >> yes to the extent one can make a high note happen, maybe it's a good time to do it i think you're right, though, a relief that it wasn't worse. >> and dennis, does this mean -- now mondelez is up 5% after hours and you know, again, there's meanwhile, talk about hershey's maybe looking at the u.s. business of nestle to try to bulk up and maybe kind of fend them off. again, how do you read all of this >> well, i tell you, it's very interesting, you look at the carnage across the entry, procter & gamble in the u.s., all have thoshown poor revenue growth, weak margins and market share. for the perspective of any one of these companies beating

expectations, obviously the market is going to respond a bit more positively than any other situation. so from the perspective of consolidati consolidation, though, kelly, all bets are off i think over the next five years you're going to see massive reordering of these portfolios simply because they don't make economic sense right now there's going to be a 3g in there, any other players. hershey has an advantage because it's hiding behind the motive. its foundation it can do what it wants but not have to respond in kind. >> yeah, it's very strong. michael, it's interesting to me a lot of these companies still trade at valuations and some ways higher than the tech sector. >> yes. >> the tech sector is only trading at 18 times next year's earnings >> many of them are. that's getting bled away, though if you look at these stock charts, basically mondelez is back to a market multiple, still not cheap, definitely will hi not cheap relative to -- the story was always they're defensive, but they're defensive until they're no tht. consolidation will probably happen not from a point of

strength but potentially weakness. >> is speaking of -- go ahead, dennis. >> kelly, we have to remember rates as well. these are decent dividend players. their attraction obviously diminishes somewhat, too. >> amd has been moving the other way a little bit lately. shares closed down another 8%, this was after morgan stanley cut its rating from equal weight to underweight it expects cryptocurrency mining and game console demand for amd's graphic chip business to be cut in half next year karen, i naught it was intereths interesting about the crypt ocurrency. what do you think of it? >> cryptocurrency mining is growing. i don't know -- i was never abiliable to tell how much the end user was actually a crypto miner. >> right. >> i don't know. that was sort of interesting to me on a day that bitcoin, you know -- >> back over 6,300 >> i think it closed -- >> not quite there. >> not quite there. >> to your point, would it help if amd provided any clearity it

can about the end user -- >> if they were more specific? >> yeah. >> i don't know, some would say, no, we hate that business. >> right. >> because we think it's going away think it's going to zero. >> looks like a fad stock in that case to a lot of people i think the bigger takeaway from the downgrade today was thats, you know, their core, core business, right, of microprocessors, outside of gaming consoles, outside of cryptocurrency looks like it's not all that strong and they kind of were, you know, had a few things in their favor that are maybe expiring right now and the stock never looks cheap. it's a company that kind of operates at break even. >> intel, dennis, meanwhile, put up good numbers last week. >> great numbers and the stock responded in kind within the last week. rather incredible one-day gains for intel as well as other take companies, kelly from my perspective, there's always a little bit of mystery on these analyst reports i do not know the answer i will say that. there's a little bit of mystery. does the company want to get that message out there in some subtle way perhaps through an analyst to condition the stock

for what might be not an ideal quarter? i don't know the answer, but that's the kind of thing they were so strong in the morgan stanley report kind of got me thinking that might have been the scenario there. >> yeah, what were you going to say, karen >> i love that readthrough i don't know if it's true. that does -- it is how it works sometimes. want to get the story out, soften the market up for what might be coming. >> we'll see. meantime, shares of t-mobile and sprint closed lower today following reports that softbank is calling off a potential merger between the two companies. our own david faber reporting while there are issues with discussions of governance and price, his sources say the deal talks are still ongoing. dennis >> hey, there's one thing that's falling with rapid pace in terms of consumer prices, that is mobile telephone services. these companies have to -- even know they're drawing market share from verizon, at&t, they have to stabilize this pricing dynamic. i just view it as a bump in the road we will forget this story on the day they announce their deal >> so you're saying it's -- wait, wait, wait, so let me get this clear

because i thought you guys were saying that, you know, softbank is looking at this twice and so you're saying -- you think it's definitely going ahead >> no, i'm not saying it's definitely going ahead all i'm saying is in my view, this is a negotiating point. these companies need each other too much for these things to totally fall apart so it might be the case now, but long term, the logic is too strong for them not to go for a deal. >> this may be the fourth attempt that we know about over the past several years. >> see, all the need more to do it. >> right but dennis, you could say, well, it's eventually going to happen and not going to help you to know exactly how this round plays out, but look, we'll see obviously it's not been an easy negotiation because the whole world knows that these companies have a rational basis for being bolted together, but just hashing out the details has not proven to be very easy. >> mike, can we put the question to you, does this deal get done or not >> i think ultimately it should. i honestly don't know, though, without kind of knowing anything that's going on in the room as to what the hurdles are. >> dennis, can we put you on the

spot >> i don't know what the details are going on in the room, but just in terms of market dynamics it sh. >> i don't have a team of m&a reporters at my disposal, dennis. >> yes, you do you have a whole colleague -- whole room -- >> they don't answer to me. >> i think industrial logic says these two companies have to find a way to make it happen so i'm going to vote yes. all right. let's move on. paul manafort, former campaign chair to the trump campaign indicted earlier today on 12 counts related to money laundering wifl hhich has ties e properties he has in new york. robert frank has the details. >> kelly, over $75 million in oversea money flowed through paul manafort's accounts, $18 million of that was laundered and concealed from the government that's according to that complaint today. now, here's how it worked. in at least three cases, he funneled millions from an account in cyprus, used that to buy properties in new york and virginia for all cash under llcs then took mortgages on those

properties to extract cash or buy other properties now here's an example. in 2012, he channeled $2.8 million from accounts in cyprus to an llc called nc soho that then bought a condo in soho here in new york he rented out the property for income but got a $3.1 million mortgage on the property by falsely claiming it was a primary residence. in the same year, he wired $3 million to an llc that bought a home in brooklyn for all cash. he then got a $5 million loan to renovate the property but instead he used the proceeds to buy another home in california and pay down a previous mortgage so what you have here is they yu used funds from an undeclared offshore account, bought real estate under an opaque llc then extracted cash without declarin any of the income, the proceeds or the origins of that cash. that's where it's money laundering he'll be forfeiting properties in the hamptons and virginia as well as those properties in new york manafort's attorney, of course, saying today that all of these

charges are, quote, ridiculous guys, back to. you. >> tangled web there, thank you very much. karen, from an investor point, how much two ydo you have to pay attention to everything going on with the indictments and separately today, news that came out about whether these tax cuts may be implemented with a big delay? >> right. >> what's the relative importance of those things for the market. >> they did sort of let us know this was going to happen, known for a few day, the big game, who would it be? this isn't so shocking it's m manafort if it's contained where we are now, i don't think it matters at all. closer and more recent, during the election, i think that could really have an effect on the negotiations, you know, the tax negotiations this interesting today, though, this phase-in, i don't know if this was what we're kind of mutually agreeing on or was it in negotiating we'll offer this up because we can't get what we

want i don't know if we should look at it that that was progress or not. >> what do you think >> clearly the market didn't like it. >> shows you the people writing the bill are looking at the menu of options to try to find revenue for those people who think we need to find revenue. this is one of those ways. look, you can downscale the impact of the corporate rate, revenue goes down because of corporate rate cuts or find revenues i think it is part of the give and take of what are we going to -- how much are we going to pay, do we have to be specific about how we're going to pay for it or not? >> dennis, is this a way, what you guys are saying, to get democrats onboard, if you know they're going to lose a couple of republicans >> seems hard to get some democrats onboard with graduated phase-in which amounts to maybe 24, 36 months. i think any democrat who breaks ranks in this situation is going to have lot to answer for. so, in my mind, the question is, getting those republicans in high-tax states really to sign on that's much more about the personal income tax than the corporate income tax corporate income tax is not a

huge percentage of overall federal tax revenues real game is in the personal income tax pay attention to the potential changes of the 401(k) deductions which is apparently still on the table. >> i think they're kind of biwie eyed we hear it going back and forth, we know it was floated they might bring that cap way, way down on what you can contribute to the 401(k). the president, himself, came out and said, no, that's not happening. where do you think things stands now? >> people involved don't know where it ends. if i had to guess, just a guess, kelly, ends aeventually say, hey, i fought for your 401(k) and gets rolled back as part of his demands. move deduction down from $18,000 to $2,400 is a tough pill to swallow. it's setting up so trump can be the hero that's my guess. >> all right dennis, karen, thank you very both for joining us.

private equity fund-raising is on track for a record year. we've got the woman in charge of goldman sock's private equity clients, alison mass in her first tv interview ever. director rob reiner will talk to us about streaming sites like netflix, how they're changing the film industry or if he'd be interested in directing a show or film for the small screen. and we want to hear from you, share thoughts about the show via twitter, facebook, or send us an e-mail. you're watching cnbc, first in business worldwide when it come, 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. ...from godaddy! in fact, 68% of people who have built their...

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welcome back private equity accounted for more than 31% of deal transactions in the third quarter of this year that's according to pitch book now, more banks are ramping up their own private equity investments in order to off set some of the declines they're seeing in trading revenues joining to talk about this, alison mass, co-head of the financial sponsors group and investment banking division at goldman sachs. joining us at post 9 along with leslie picker, our expert in this space glad you both could be here. alison, how strong is the environment right now? it's interesting that valuations are so high. how is that having an impact >> thanks for having me. the environment's really strong, and what we've seen, you mentioned 31% in the third quarter, but for year to date, actually, sponsors have accounted for 33% of overall m&a

in the environment, and i think -- >> what's normal how does that stack up >> over the last 15 years, i think it was 20% over the last five years, it was about 25%. >> wow. >> this is an increasing percenta percentage it makes sense it makes sense because there are so many more private equity firms. we cover at goldman sachs 600 private equity firms around the world. and they control between 5,000 and 6,000 portfolio companies. >> wow. >> so it's $2 trillion of enterprise value that they control. and it makes sense because there's a lot of dry powder out there and the capital markets are in a good place to do transactions >> michael, i don't know about you, i think about how this would be a great time to exit a private equity investment. >> i guess i wonder about how that filters into what future return expectations are for private equity, in other words, what are your clients expecting relative to what private

equities delivered in the past given it's a very popular space and all the money thrown at it >> one of the interesting things about the private equity space which is why it's a record fund-raising year is that returns have outperformed public indices and every major market. >> wow public indices have done very well >> correct and over the short term, medium term and long term, so their return expectations are fairly robust which is why capital keeps going into the market. >> leslie, what do you make of the proliferation of private equity firms and their expectations the returns going to be so high? is that possible >> i think it's interesting because you look at what's going on with apollo with raised its record buyout fund this year cvs raised a record buyout fund for europe you have to wonder given what we're seeing in the hedge fund community, how is there such a dispersion with the private equity counterparts in terms of their ability to raise money i think allison brings up a good point in that we're starting to see a lot of this fund-raising centered around these returns.

the question as you brought up was, you know, what does that mean in terms of your traditional buyout strategy? how is the -- how is the private equity community transitioning to account for these high valuations and being able to generate and keep up with the high returns that they've experienced over the last ten years? >> well, the industry's having to become a little bit more creative and talked about what percentage of overall m&a is done by the private equity community. only 7% of that year to date has actually been in lbos. while 50% has been on the buy side about 50% on the sell side and knave hthey've had to be moe creative had to use own portfolio companies to do acquisitions like aventure. they've sold minority interest or purchase minority interests they partnered with strategics the way they're generating these returns is being a little more creative and they're going to have to continue to do that in the kind of environment where we see enterprise values at close

to 12 times in the public market >> which is pretty high. any concern when they first started talking about corporate tax overhaul, there's a question about whether they would change the carried interest taxation rules. is there anything there that you guys are on the watch for -- obviously something like that could have a huge impact on the industry, but it sounds like that's been taken off the table. >> well, i want to comment on what's going to happen or not going to happen in tax reform. our clients in the market are watching it very closely for the private equity industry, obviously, deducductibility of interest, corporate tax rates all will play into it. the pluses and minuses will balance one another. as of this moment, we haven't really seen any change in behavior on the part of our private equity clients >> a big topic in the private equity industry these days is that of succession we saw carlisle announced its successors, kkr in july announced its own successors what does that mean for the private equity entindustry when

you're seeing founders, grandfathers and fathers of the industry step aside? can private equity continue its momentum, you know, with the stuck session plans that are in place? >> it's a good question. it's a topical question. it's a relative question the industry only started 40 years ago which to me is young and you have seen success already over the course of the last several months, you've seen new succession announced and will see some more it's a very natural evolution of this industry when the founders are in their 60s and 70s so to me what it says more about is the culture of these firms. and the vision that the founders have had to pass down to the next generations and these firms have evolved from single asset class private equity investors in the u.s. to multiasset class alternative asset managers that are global, many of them are public. i think what you're going to see is these firms thrive well

beyond their founder or two or three founders >> alison, we know you're super busy thanks for taking the time. >> thanks for having me. >> alison mass along with our own leslie picker. appreciate it very much. mondelez shares getting a pop after reporting better than expected earnings earlier this hour ahead, whether hopes of consolidation are impacting this 4% jump. first, chinese investments in the u.s. could soon be facing tougher scrutiny thanks to a new senate bill in the works we'll have those details when we come right back. the nfl's national anthem protests aren't just taking a toll on the networks the surprising company also feeling the ratings pain is next mike and i are both veterans, both served in the navy. i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life.

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don't wait. call now. welcome back let's get over to meg tirrell for a market flash here. meg? >> hey, kelly, we're looking at voyager therapeutics, down sharply in the after hours on the announcement the company's partner decided not to opt in o the rights to a parkinson's disease program and gene therapy. that stock down more than 15% now. voyager says it's going to have a conference call at 4:po 30 and have an ongoing relationship saying essentially their understanding is because the partnership didn't include the u.s. rights to this potential drug, sano ifi decided not to o in back to you, kelly. >> wow 15% drop meg, parkinson's, who are the other companies doing sort of focused in this space? >> well, it's interesting because voyager is taking a gene therapy approach to this space

what a lot of companies have worked on really are symptomatic relief for parkinson's, this would actually be a different approach to it so voyager is one of few companies really working the space. more companies are starting to work in parkinson's, kelly. >> all right we'll see what they have to say. meg, thank you very much again, voyager down 14% on that news. time for a cnbc news update. let's get to sue herera. >> hello, kelly, hello, everyone here's what's happening at this hour former trump campaign manager paul manafort leaving court after pleading not guilty along with aide rick gates to a 12-count indictment. the white house distancing itself from the two. press secretary sarah sanders insisting the indictments will have no impact on the president's agenda >> today's announcement has nothing to do with the president, has nothing to do with the president's campaign, or campaign activity the real collusion scandal as we've said several times before has everything to do with the clinton campaign, fusion gps and russia

u.s. special operations forces captured a militant who was believed to play a key role in the 2012 attack on a u.s. diplomatic compound? benghazi, libya, which killed the u.s. ambassador and three other americans. u.s. official es identified the president as eliman. army sergeant bowe bergdahl apologized in court to all the military personnel who were wounded searching for him. he faces life in prison after pleading guilty to desertion that is the news update at this hour kelly, i'll send it back downtown to you. >> sue, thank you very much. lawmakers in congress are set to -- kayla tausche is in washington kayla? >> reporter: we're expecting the bill to come out of the senate and house this week that would ratchet up scrutiny on u.s. investments made by foreign companies and foreign nationals by widening the net cast for the type of deals that would require a strict regulatory review

the scope of this review cahas been unofficially increasing over the last few years but the bill set to have white house backing would have stricter rules for joint ventures, min minority stakes, real estate, infrastructure and technology investments. the bill doesn't mention any countries by name, it was written with russia and china in mind it's the latest in a long list of grievances the u.s. has aired with china the commerce department on friday seeking tariffs on aluminum up to 162%. tomorrow, a trade panel will consider solar tariffs and actions on steel dumping and intellectual property penalties are being eyed on the other side of the president's trip to asia which begins in a few days with hawkish tones ramping up despite the absence of steve bannon and despite politico reporting that peter navarro, a well-known china hawk will not be attending the trip. inside the administration, top

t trade officials bob lighthizer and ross are carrying the torch as well as malpass it's an interesting move with all this coming to bear before the president's trip, we'll see how this all plays out on the ground back to you. >> we've already seen the pressure on the chinese side as well questions about whether the waldorf's actually going to g renovated and maybe going -- what further impact would it have if the u.s. puts more pr l pressure on our side against china doing deals. >> we know china has usually been known to take a retaliatory approach when the u.s. takes very tough actions against certain sectors or certain companies. it's unclear how the chinese would choose to respond this time around or if the two presidents when they meet would be able to smooth things over. kelly, you mentioned the waldorf. i wanted to point out particularly what this bill would do for real estate in the past, it would only deal with real estate near military bases.

this would deal with any location which some say could be a federal reserve bank. >> kayla, thank you very much. kayla tausche. time for our "takeaway" segment. we begin with major changes that could be coming to how the s&p sorts itself by sector as noted over the weekend, a new communications services sector ma i be coming that would include the stunted telecom group and social media and search engine companies. here's my question if facebook is moving to the new sector, what does that mean for all the sector etfs? >> you know, i'm sure each one of them has some kind of provision for what they're allowed to cover a lot of them are not necessarily just the exact s&p sector as defined by the index provider but i do think what it will do is kind of refocus our view as to how big technology, per se, is, in the s&p right now -- >> which looks huge right now. >> looks huge. 25% or so of market value and earnings on the other hand, amazon is not -- you have to kind of have these asterisks out there.

naern anyway, i do think it's overdue to get this weird tag end stunt -- >> if they make a move like that, announcement could come as soon as november, huge implications for all the money -- >> in the sector, too. next, papa john's sales have been sliding since trump encouraged people to boycott the nfl in late september according to "sports business journal. nfl spokesman joe lockhart confirmed they heard concerns from papa johns and others they signed a multi-year partnership with the nfl texans, after insulting comments by their owner what options does this leave the nfl? >> what options? beyond what they already conclu concluded, not going to stand in any ridged way do they have to accept that maybe a certain number of viewers aren't going to be in for it >> what happens if the sponsors like papa johns -- >> it's so mixed up in the br d

broader trends in terms of lower tv viewership and all the rest of it. would have to be more than one sponsor making a fuss. >> there's papa john's shares down 11% in the last two months. finally elon musk has given us a look at the tunnels his company is drilling below los angeles. unless you're frustrated by the model 3 bottlenecks. we also had the falcon rocket launch again by space-x. should musk be focusing more or all his attention on tesla right now? >> i've never been one of those. who thought there was this tiny finite ability -- very large complicated companies run by one person this, though, i think gets to a level of how much, you know, lobbying of public sector entities does he have to do to try to get this done how much of his real energy is behind it? and is tesla potentially in its production challenges suffering, you know, at the expense of this >> do they need more leadership focused -- >> executing the plan for tesla potentially. on the other hand, i don't know

how long the section of tunnel that's completed is. they can rent it out as a move industry set being able to actually dig a tunnel for a short length of time where you have the rights to it is not really in question. >> use the model 3 as an excuse, there's reports about different girls he was seen out with in page 6, he said, no, no, i'm focused exclusively on model 3 production. >> yeah, that remains to be seen look, i think the other thing tesla suffers from from an investment point of view, the whole company is a trojan horse to get the whole world on battery power as opposed to build cars. monde willlez, it's down 11i year, but there you can see it up about 4% after the bell could the report help turn the tide quhoo we're going to find out next. hollywood, ahead, rob rein h er tells us what's responsible her the box office slump and whetit can be turned around with his new film, "lbj. stay with us so what else is new? how's your mother?

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cut may be phased in several yea years' time. shares of monde will l erleg higher last quarter where ceo rosenfeld will be at the helm. she spoke week at cnbc's event last week about her upcoming retirement. >> consumer business is a very rapidly changing one it's -- i think there's real value in continuing to renew the blood and so i had talked with our board a couple of years ago about my desire to retire around the ten-year mark. we weren't really explicit about exactly when that might be but it felt like that would be the right time to turn the range over to someone else >> joining us now, jonathan feeney from consumer edge research who has an outperform rating on mondelez and kevin from washington crossing advisers. welcome to both of you jonathan, what do you think about her final quarter as ceo, what is it saying to you right

now? >> very good after they threw a curve ball at us with a cyber attack distribution -- they answered the critics with a solid quarter this quarter beating on sales and the bottom line >> back to where they were at the start, and still down for the year what do you say? >> we saw a company beat on. >> terms of overall profitability. it's really nice to see pickup on the top line which has really been missing >> jonathan, what are the strategic priorities you want to see with the incoming ceo in terms of -- i mean, is it still just about play defense on the legacy brands, and then buy those brands that maybe have a more uptake among millennials? that seems to have been the play before look for bigger m&a?

what else is is there to be done >> i focus on a couple things. one thing that makes mondelez, they have a great market portfolio and products that really travel. everyone loves candy oddly, the day before halloween, the world over, everyone loves candy. lot of business exports 30%, 40% of their business. as far as developed markets go, north america, they need to take a hard look perhaps at their cost structure leading competitor, kellogg, divested our wound down their direct store distribution network and going to market in a less expensive way that's one of the moves or something like that move that mondelez's new ceo will take a look at. >> kevin, it's not about getting into the cannabis business like everybody else these days? >> no, but i do know -- i do know that in h my house, i've got a couple young kids and i do know the drawer where all of the oreo cookies live and all the rest of it so there is a -- there is a fantastic brand there that as the other guest mentioned does travel and has a tremendous

value to it. it's just a question of unlocking that value going forward, and i think a lot of the woes that confronted the company in the top line have really not been of their making so as we move toward its ceo transition, the new ceo when he steps in is going to really have to focus on outlining how to get that top line growing especially overseas >> all right guys, thank you both kevin, jonathan feeney joining us to talk mondelez. don't miss an exclusive interview with outi going ceo irene rosenfeld tomorrow at 10:00 a.m. on sq"squawk on the street." more people are turning to the small screen for original shows own tvs. coming up, rob reiner joins us with whether or not he'll make the move over to streaming stay with us

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up next, actor and producer rob reiner will join us as he makes his way right over here on set of the new york stock exchange, talk about his latest film "lbj" and the business of ckco rhtd when we meig ba

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our next guest is a two-time

emmy award winner, five him golden globe, oscar nominee, a star on the hollywood walk of fame the list goes on rob reiner is now out with the movie "lbj." the guy himself joins us at post 9. but you're a successful investor, apple, amazon. >> i don't know what i'm doing i figure those sound good. apple, amazon, those are good, but i got in early, so maybe i got a couple bucks. >> have you talked about them making content >> well, amazon is making content and now apple is putting a ton of money and google. everybody's making content now, which is great for people like me, who like to tell stories. >> have you engaged with them? >> not yet, but i will i actually met amazon recently about a tv project and netflix there's so many platforms now. >> are they willing to pay like crazy money? >> they pay good money. >> but not crazy money. >> no, not crazy money, but good

money. the kinds of pictures i make, not the once you see in movie theaters with big explosions and -- the kind of pictures i make, they pay pretty good. >> why not distribute "lbj" through one of them. >> because we have this wonderful company electric, they're doing an amazing job have you seen it jet yet. >> >> there are screenings, don't you rate >> i'll be perfectly honest. i haven't seen a lot of movies i don't think they're very good. i'm talking about a lot of hollywood, but "suburbicon". >> it tanked the box office seems broken. >> it's tough for independent films to do well, but some of them break through every once in a while you have a breakthrough this one you'll see woody harrelson like you'll never seen he's absolutely incredible people say, woody harrelson,

lbj? wait until you see it. >> you've had several people portrayed lbj? different phases. >> yeah, bryan krantz tron on hbo. and broadway, and he's great, but wait. >> i'm sort of fixated with what's been happening at the box office it was a bad summer, and another bad weekend, then another bad weekend. is hollywood permanently broken. is there a culture problem there just a -- what is it it seems bigger than just a bad year. >> you know what happens, the way in which you exhibit product changes, it keeps changing there was a time when dvd was a huge window and great opportunity. now that died out. all of a sudden streaming and video on demand. all those things change. so what happens in the box office in the theater? there may be only pictures that,

you know, like "mick the joke" the word man and a number in the time spider-man 2, ironman 4, whatever but the adult-themed pictures, they may find their ways onto netflix or amazon or, you know, different ways, but to mehmet i'm a storyteller. i just want people to see the film. >> what are you thinking about doing a political movie, or at least politics, when everyone seems to have blinders on and only want to look at what you agree on some of the history we thought was settled -- >> that's what's interesting about this movie, given the political landscape, we are seeing a functioning president and a functioning government, and we're seeing how it can be done and like you say, the theme of racism, all that, it's bubbled back up to the surface so that becomes, you know, a part of the conversation again, but i think people are going to like the film.

when you see it, it gives you hope for what we can aspire to as a government. it seems broken now, but i think it can get back on track at some point. >> sort of going back to the hollywood issue, what do you think the lasting impact of what happened with weinstein is going to be. they did a lot of independent movies, and it sounds likes the company has massive financial problems, and every day brings a new allegation about some person of interest in hollywood. >> i think ultimately -- i don't think it's going to have a tremendous anegative impact on the business of hollywood, but i think it's having a huge impact on the national discussion of sexual harassment. we've seen it -- we saw it at fox, we saw it the other day with mark halpeperhalpern, even

clarence thomas. i've never talked to a woman who has some version of harassment you see why women wait so long either they're not going to be believed, they're going to say they asked for it, or they're going to be punished if the president of the united states can come out and say overtly he sexually harassed people and still gets elected, what avenue do women have? it's going to take the men to step up, and women like reese witherspoon who have been become power figures in their own right, do they drive the production decisions and what impact could that have >> i hope it has i've been saying this for a long time this has nothing -- women -- more women need to be in positions of power, whether in business, in hollywood, or in government women value life more than men do i'm just saying that. >> mike, do you want to respond to that? >> no, no, they understand what

it is to -- >> i'm willing to defer. >> i have a daughter too they understand the connection to life. >> this is very important. do you own netflix >> do i own -- i own -- i don't have any netflix but if they hire a woman to run the whole thing, maybe. >> rob, thanks for joining us. best of luck. >> thanks. apple did hi all-time highs today. we'll have much more when we come back. when mother nature's done her worst, the only thing that matters to us is keeping the lights on for you. the hard working men and women of the international brotherhood of electrical workers, dedicated to keeping the power on in communities across the country. because when bad weather strikes, we know what matters most. the ibew. the power professionals. you myour joints...thing for your heart... or your digestion...

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welcome back and good-bye. >> see you tomorrow. we'll hand it off to "fast money." "fast money" starts right now. live from the nasdaq marketsite. i'm melissa lead tim seemo brian kelly david see burg and steve grasso tonight on fast, is the t-mobile and sprint deal in jeopardy? craig moffett will be here to weigh in later it's been a drug best so what's behind the sellout why is one of ourtraders buyin this breakdown first the apple awesom