russell as well as the financials russell 2000 small caps down 1%. financials down more than 1% reading the tea leafs of the market, this tells me the market is concerned about the prospects of tax reform actually passing this is something to watch here. thank you for watching "power lunch. >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth snap is popping. you like that? ahead of the company's earnings report that's expected next hour. we'll tell you what to watch for in those numbers and we'll have a debate on what to do with that stock. >> up 3% in the session today. >> not bad. companies fight back hedge fund giant bill ackman losing a big proxy battle today. whether activists are losing their edge, coming up. and tax reform jitters

small cap russell index is often seen as a proxy for tax reform that index is underperforming again today. we'll have the latest on any changes to the house tax plan, and we have an update on the senate tax plan. which is still to come let's start, though, with today's earnings parade that is driving big moves in the market. in various stocks. bob pisani joins us now with the highlights from this morning and we have a preview of what's still to come here tonight, bob. >> retailers coming, bill, but remember 75% done. still a lot of retailers just want to -- companies in general, just take a look at royal caribbean, nice move up here beat by 9 cents. despite the hurricanes and the issues, they gave a terrific 2018 outlook that's why the stock is up almost 3%. move to the left, remember coach, well, it's now called tapestry, that i had a decent number here. the small beat, revenues were short. remember, now, they now own kate spade. so they're merging the company i would call this a transition quarter. the quarter just closed. they're talking about significant cost savings

that stock's up art bout 1%. elsewhere speaking of cost savings, you know the trading vol jum and volatiume and volat down one of the big market makers in the world, virtu, decent volume trading. 17%. look at the stock up here. cost synergies that's helping bought night trading savings are greater than they expected numbers are okay august, september, october trading income held fairly steady that's been an otherwise down stock. some trading companies are doing very well. cboe has some products that are very hot remember those vix products, the volatility products, that's what they own, one of the things they own.53% for the year down slightly for today. elsewhere, we're going to finally get the retailers and remember, we had a terrific earnings season so far, up about 8% in the s&p 500. these are one of the few things that could sort of upset that as you can see sthem late in the day, these stocks have been moving to the downside bill, and kelly, i would also

mention the russell 2000 also down about 1% today. along with some of the bank stocks maybe a little concern there about tax cuts going forward back to you. >> yeah, retailers struggling as you pointed out, too bob, thank you, check back in with you in a bit. another stock soaring today after reporting earnings this morning is valeant meg tirrell has more. >> valeant in the middle of trying to orchestrate a turnaround the ceo joe papa was tasked with getting the debt under control and growing through practices other than acquisitions and drug price increases. today they beat wall street estimates on the top and bottom lines for its third quarter. ever evercore reporting it was driven by significant strength in its main drug. returned its eye care brand to a good start with 6% growth in east each of the last three quarters. company's presence on amazon a

helpful driver today joe papa said the company isn't talking to amazon about prescription drugs that's a key question in the space right now. echoing similar comments from pfizer ceo last week papa sees the turnaround as a three-year process the company paid off more than $6 billion in debt with no obligations nowle until 2020 its stock, however, is trading at a fraction of its 2015 highs of more than $250 a share, guys. >> meg, by the way, what is going on with mallinckrodt >> that one coming if light of wall street's expectations the company giving a funny reason people are questioning a little bit for that, saying that an increasing number of written prescriptions for that drug are going unfilled of course, this is kind of a controversial drug because of the price. more than $36,000 for a 5 milliliter vial. its growth this year in the

first half was driven by price increases so that's concerning people a lot on the mallinckrodt front, guys. >> the lone egg in its basket. not doing so well. that's a problem. >> a big drop. thank you, meg. >> thanks, meg. >> meg tirrell. we have a news alert on dis ny what a story today julia boorstin, what's happening? >> disney reversing its ban on the "los angeles times" from press screenings of its movies this following the "l.a. times'" investigative report into diseconomy's businedi disney's business reports with the city of anaheim. "we had productive discussions with the "los angeles times" involving our specific concerns and as a result we agreed to restore access to advancing screenings for their film critics. this follows "the new york times," the "washington poest" and others say they were boycotting in solidarity with the "l.a. times. saying they would disqualify

disney from its awards until day reverse ed the ban on the "l.a. times. battle between the media giant and -- back over to you. now resolved. >> just silly, silly, to be banning their film critics when it's local news out there, their dealings with anaheim. >> and meanwhile, they may need to curry favor with regulators depending on how seriously these talks could pick up and progress with 21st century fox. exactly the wrong kind of image they'd want to send right now. >> it sounds -- it sounds like they resolved these issues, but it's certainly interesting seeing sort of this media giant which has a lot of different businesses and "l.a. times" which covers many different parts of disney's business try to work out that relationship. also worth noting we have disney earnings coming up on thursday and i'm sure that deal, of course, will be in focus there >> oh, boy that will be interesting. >> julia, do these -- these, you know, critics' reviews matter anymore? >> i think they just -- >> you know -- >> -- signaled that they do.

>> i think this battle didn't look good and clearly disney wanted to resolve it as did the "l.a. times." i think the reviews are important for the publications as they are for disney i think one thing that's interesting, now we have rotten tomatoes which aggregate the reviews so you could see sort of a score, a number of how positive or negative the reviews are. i think they do matter as the bar to going out to a movie seems to be higher than ever disney has been very successful with its films but it certainly doesn't want to put itself as a disadvantage >> all right, julia, thank you crazy story. julia boorstin there with that. let's get to our "closing bell" exchange, minus signs for the major averages today after yesterday's modest rally put everybody into record territory except the russell joining us in our "closing bell" exchange, allison deans from aa deans advisory we have cnbc contributor peter costa from empire executions next to her at post 9.

rick santelli joins us from the cme in chicago allison, you and i were chatting before the show, i mean, crazy market plenty of reasons not to be in it, but everybody seems to be in it right now >> as someone who's very valuation-oriented, it does make me nervous it's an expensive market and so my view is if we're walking into an environment where rates are more likely to go up than down, what you need is really strong earnings momentum to continue to propel the market higher the good news is, and looking at results so far, it seems like the majority of earnings are coming in many at or above expectations and guidance tends to be more positive which should help the market, but we need to count on global growth continuing, and strong profit growth to keep this market propped up >> peter, what do you make of the big decline in the small caps today and the fact that while the other averages, as bill said, have been closing at record highs, they continue to languish a bit >> i think you have a rotation back into bigger names i think that's part of it. you know, to me, looking at the small caps coming back in, they've had a good move.

i think that -- i don't mind that i don't mind having that whole sector come back i think there's opportunities there. i think you have to be very selective about where you go i don't know if buying the whole index is the way to go right now. i do think they're probably in that group there are some real good values. and, you know what, it's not surprising i think a lot of the money is going into much bigger names you look at the top 75 stocks. they're all up and i think big money, big cap stocks, that's where people are putting their money. >> i'm not hearing anything about tax reform the argument some have made for why these, you know, companies which tend to pay higher taxes, maybe that's a proxy for the fate of the tax bill you read anything into that there? >> it's very possible. you know, having not seen -- i mean, you look at the big cap stocks, they're going to benefit from it because there's going to be tax advantages. the smaller cap stocks, i'm not 100% sure how much it's going to hurt them. seems the investing community believes it's going to impact earnings going forward not really sure if it is

i think that they're equally as nimble as far as taxes as the bigger cap companies i think maybe people might be overestimating that a little bit. >> and rick, the yield curve continues to flatten out here. a lackluster three-year note auction today even at the rather lofty levels here. you know, peter said today he thinks it's still that the treasuries are signaling some fears about the impact that fed tightening will have on the economy. i know you feel like it's more about yields that are overseas right now, right >> absolutely. but it's a little bit of everything i can understand peter's position quite clearly, and today if you drew a chart of where things lined up on the opening for 2s, 3s, even 5s today, there wasn't much movement it isn't because it isn't trading. three-year note auction was mediocre i gave it a "c." maybe 10s and 30s in thefection t next two days will give us yields

it's been a while since we closed under 30 and we visited in the interim 60 basis points, almost 50 basis points and that's a hard dynamic to fight i mean, you think about all the negative rates around the globe then you think about these european sovereigns and how it puts extra horsepower in our long end in the form of purchases and also think about the t.i.n.a. notion, especially apropos on a day where stocks and valuations are under the microscope you can get 150 basis points on a 6-month bill dus doesn't sound like a lot, look back a couple years, it was a goose egg. consider that's only 40 basis points away, less than a half a point away from the dividend yield of the s&p 500, all of a sudden a picture starts to emerge listen, i think global economic horsepower isn't something to write home about but it's definitely improving, but to look at our long end of the market, the european long end of the market, there's other reasons for the behavior and i thechi think those are hard to trade around because we just don't know how long some of these

policies or that dynamic will continue >> allison, if there was one thing that could shock bond yields higher, do you think it would be signs of serious wage gains? >> it could be serious wage gains. i think people are still pretty optimistic about there being some type of tax reform and based on what i'm seeing coming out right now, it's extremely confusing. it feels as if rather than completely reforming and simplifying the tax code, they're shifting different winners, different losers and already there's going to be pushback i wonder if that's a real issue for the the market. >> lots of rotation in the market as it continues higher. that's for sure. thank you, all, for your thoughts on today's market action allison, good to see you >> good to see you, too. let's send it over to seema mode d mody. >> shares jumping to a session high after a report from "bloomberg" says brookfield is holding preliminary talks for a takeover of ggp, of course, ggp formerly general growth properties it is a real estate investment trust also known as a reit

see shares of the stock up over 13% on this takeover speculation, guys. back to you. >> wow another industry where we're talking about mega-consolidation and maybe, seema, another one where you can bring up the amazon effect. >> yeah, clearly an opportunity for more m a&a, you've seen the s&p sector do, perform quite well in 2017, in fact, one of the best performer sectors this year. >> thanks, seema, no doubt we'll be seeing you later. heading to the close right now, we've got 47 minutes left in the trading session here as we say minus signs across the board for the major averages not big ones but enough to take us out of record territory. when we come back, activist investor bill ackman losing his bid today to win board seats at adp. ahead, we will look at the recent trend of investors losing their proxy battles. and what it means for the future of activism. later, shares of disney and fox are both higher again today. fox up by 2.5% after the

blockbuster report we broke here yesterday about deal talks with the two companies. we'll talk to the former chair of the fcc whether a pproved an other mergers could be in the works. we want to hear from you reach out to the show on twitter, febacook or over e-mail we always love hearing your thoughts you're watching cnbc, first in business worldwide you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it?

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welcome back with the markets dipping lower today, especially the russell 2000s down more than 13%, dow down 34 points trip advisor which is plunging today, a 21% decline the travel website saw revenue come in below estimates, said reigniting near-term hotel growth has been more difficult than expected. the shares are not reacting well nor are its competitors, its rivals in this space, priceline. >> priceline, too, right, exactly. the fierce proxy battle between activist hedge fund manager bill ackman and leadership of adp came to a close today. leslie picker joins us with the dramatic results of that vote. >> the dramatic results, three months in the making

that's right the official tally is in, adp announcing today shareholders re-elected all ten of its directors. pershing square's three nominees including the firm's leader bill ackman received about a quarter of the shares voted at the meeting. not enough to obtain those actual board seats adp ceo carlos rodriguez described the results during the meeting as a, quote, ass whooping rodriguez said in an interview with cnbc his company should not have been targeted in the first place. >> i think it is surprising, frankly, that a company that has such a successful and strong track record would be attacked, and i think that it's really, i think, a sign of, i think, greed and avarice gone too far in the sense that you're attacking a good, strong company to make short-term profits using derivatives and stock profits and other instruments designed to do just one thing which is put money in the pockets of a hedge fund >> but victory doesn't come free, of course, adp said it

spent $27 million spending off bill ackman and his other two nominees for the board p&g earlier this year spent even more than that for a margin of victory that was much slimmer. but as activists take on bigger and bigger companies, they have more firepower to fight back and higher success rates according to activists' insights, companies have won 64% of proxy fights this year including today's. that's the highest proportion since at least 2014. the number of proxy fights has stayed constant over the last four years, guys >> you have no idea what it is to hear leslie picker of all people say ass whooping. >> sorry, mom. >> that it sos o out of charact for you. it shows the emotions that have been stoked in these proxy battles. >> absolutely, earlier today we were in new jersey in the meeting. you could feel the tension, it was palpable between these two gentlemen who by all measures, this is a very condensed proxy

fight. three months is very quick to get to, you know, the point of disclosure to an actual proxy fight. you can see, i mean, this is a company that had been performing pretty well before bill ackman took a stake it's one that had, you know, a very strong board, a strong ceo, that was not willing to back down and cede to the demands that he laid out despite the fact he had done a lot of research, 168-page report, so it definitely is something where the -- everyone took it a bit personal >> well, the ceo was kind of personal about this. he attacked bill ackman, said he didn't know what he was talking about. do you think other ceos are going to follow suit, that strategy effectively paid off. >> certainly something carlos rodriguez has done and i haven't seen a lot of ceos fight back on that side of things. i asked him, actually, during the interview today, whether he would recommend that strategy as one moving forward and he just -- he kind of let -- he pointed to the economics of the company and said that, you know,

because we'd been performing so well, i felt that i had the liberty to really be on the offensive here and, you know, push back against some of the demands and not, you know, cede to the activists just because he owns a large stake in the company. >> that is a lot of money, though, to spend, to win i mean, $27 million for adp, $35 million for procter & gamble right? >> it's a lot of money i mean, when you think the outcome is virtually the same as where they were three months ago or where procter & gamble was before nelson peltz came in, you have to wonder as a shareholder what is the benefit of all of this. >> exactly >> is it worth the money being spent? >> real liquickly, is it over f bill ackman and his involvement with this company, then? >> he said no. he said no he said that if the company does not abide by the certain metrics that they put forth to iss and to investors throughout this process, some of those being operational margin improvements and other metrics and revenue growth over the next few years, then he will be back he will -- he did not -- he's

not shy about starting another proxy fight even as soon as next year >> wow. >> the nominating window for directors is just nine months away, guys, so we don't get much of a break. >> holy cow. >> if this happens again. >> yikes leslie, thank you. leslie potty mouth picker. joining us here. >> we have 40 minutes to go until the close. dow has a decline of 35 points now. s&p is down four nasdaq down 29 the russell is down 20. up next the media world digesting the surprise news that disney held deal talks to acquire much of fox's entertainment units. we're going to speak to dennis patrick about the regulatory hurdles a deal like that would face and who else might be in the hunt for deals. later shares of snapchat parent snap inc up a big run for a stock that's struggled since its ipo. in less than an hour, faces a big test when they report third quarter earnings we'll debate whether that stock

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welcome back let's check other movers on this day, we have minus signs for the major averages

avis budget dropping today after posting a revenue miss for the third quarter. the car rental company also gave weaker than expected full-year guidance citing the negative impact of the recent hurricanes. that stock is down almost 17%. and take a look at red robin that stock today tanking down 28.50% after the restaurant company missed earnings and profit estimates for the third quarter. also gave weak guidance for the current quarter. noting that the average spending per guest has declined wow. >> yeah. both of those cases got worse after the calls and after investors had time to digest it. going the other way, shares of disney and 21st century fox continue higher today following yesterday's move that disney held talks to buy some of 21st century's assets. >> joining us to talk about the implications of a possible deal like this, and the changing industry landscape, dennis patrick, he has served as fcc chair. he was president of aolceo of t

communications good to see you, welcome back, sir. >> thank you, great to be here. >> bearing in mind the fcc lately has been relaxing some ownership standards in the media, would it make it easier for a deal like this to happen or not, do you think >> well, i think it would. as you say, the standards have been relaxed not just lately but really been the trend over a number of years. in this particular case, there is a rule, as i'm sure you know, against the acquisition or ownership of two broadcast networks, but the fox network is not part of the assets as we understand it that's being discussed for sale. >> right. >> so there wouldn't be a problem there. >> would there be any other antitrust concerns you can think of >> well, i don't think so. obviously, that's an issue that would be examined probably to some extent by the fcc and potentially by the justice department, but i think not.

i think the real news flash today relative to media is the number of competing voices that we've added to the marketplace the market is robustly competitive and, in fact, i think the nature of that competition is one of the things that's driving these sorts of discussions in terms of mergers and acquisitions, but, no, i don't think that there would be or should be a problem from a traditional antitrust perspective, just because of the number of voices in the marketplace. >> right i mean regulatory issues aside, just think about, it's about content, and it's about distribution especially the changing nature of distribution in the media world. does this possible merger make sense from that standpoint, does that help disney in any great way? >> yeah, bill, it makes it a whole lot of sense i think there are really two issues at play here. you've identified both of them one is scale clearly, this is a scale play.

when one is looking at competing against companies like potentially time warner, at&t, you're competing against new entrants that are quite large and have a slightly different business model like netflix and amazon then scale becomes hugely important. and that's clearly what disney is thinking about attaining the girth that they're going to need to compete in that marketplace but the second issue which i really think is the much more interesting issue, and it's the story here that i don't think's getting enough play, and that is that this deal really signals a radical change in the structure of the marketplace now, we've seen it coming. there have been announcements and deals already around the so-called over-the-top strategy, broadband right directly to the consumer, eliminating the middleman. that's really what's driving this in my view. disney realizes that in order to

compete with the new entrants like, as i say, amazon and netflix, you have to pursue an over-the-top strategy and in order to do that, you need more product. what's interesting, to me, about what's going on in the industry, is that i think it suggests that the best days of traditional cable casting, broadcasting, and even satellite casting, are really behind us the idea that millennials are going to allow somebody in new york or l.a. to dictate to them what they're going to see and when they're going to see it is -- >> yeah. >> -- jurassic thinking. and i think disney realizes that >> yeah -- >> go ahead. >> i was going to say, dennis, not just millennials, we have people coming through here all the time all ages who talked about how they cut the cord as well let me ask you whether this raises the need for further deregulation of that traditional industry as it stands right now. if the competition is so great,

what should the regulatory response be? >> well, my view, the regulatory response should generally be to get out of the way yes. i think that what we have managed to do, and i must say that some of these moves were made as far back as the 1980s, is to remove the structural impediments to cross-industry competition. when i was chairman of the fcc, the telephone industry was not allowed to handle or deliver content. there was a separation between industries we brought those walls down and created a convergence of industries which led, in turn, to the great expansion of the number of channels so the fact -- the good news is that the industry is robustly competitive and the appropriate resons, pons response, in my view, is more deregulation, more freedom to allow these companies to compete. >> meaning maybe letting local

broadcast stations combine -- look, there used to be three broadcast stations, now there's four what if there were three again what if there were two does it matter as much as it used to? >> well, obviously you're going to get different opinions and different responses to that but my response is, no, it doesn't matter listen, i would rather have the number of broadcast stations go from four to three or even three to two than to have broadcast stations going out of business left and right that's really what we're looking at these old models of controlling programming and then dictating how and when it's consumed are simply not viable in a broadband digital marketplace. so what regulators need to do is to do whatever they can to allow the competitors to compete because consumers are better off that way >> yeah. dennis, fascinating. great insights appreciate your thoughts today

>> thank you >> former fcc dennis patrick joining us the chair. let's check on shares of blue apron now, hitting a record low today after the company's ceo apparently reiterated concerns about a new jersey fulfillment center being a drag on profits the meal kit delivery service says its new center is its worst performing operating center. said it's experiencing unexpected costs in getting it up and running and still training hundreds of employees the stock is down 21%, 83 cents today, bill, trading just over 3 bucks. >> that's important but i think part of the story that's not getting enough attention is they've cut their marketing budgets tremendously and even they acknowledge you got to keep marketing to bring new customers in they've lost -- customers went down 6% if the latest reporting period went 9% in the reporting period before that time you -- and a lot of that is due to the fact that they had to cut their marketing budget >> that's a great point. >> you got to market because of all of those other competitors

out there -- >> it you have floods of intracapital coming into your company, you can aport to put that in marketing, and discipline of the public markets, it's a much harder thing to do. you're right they're trapped. >> that's just the nature of competition right now. it's crazy >> and just one more look -- >> yes. >> weight watchers talking about doing meal delivery, too that's one of the few wel well-performing stocks after its earnings. >> up 20% for a time today on its earnings and on that talk as well and there it is. good for oprah winfrey >> very good >> her investment has gained sevenfold since she bought that interest a few years ago time now for a krcnbc news update here's sue herera. hey, sue. >> hi, guys, here's what's happening at this hour gunman who killed people at a texas church escaped from a psychiatric hospital when he was in the air force in 2012 after making death threats against his superiors. federal investigators have devin

kelley's cell phone but have yet to crack the pass code. >> i can ensure you we're working very hard to get into the phone and will continue until we find an answer. i don't know how long that's going to be, to be quite honest with you, could be tomorrow, could be a week, could be a month. we don't know yet. dmonew york city mayor bill blasio and his wife casting their votes for mayor. de blasio is expected to win re-election. his main opponent, nicole maliotacas casting her vote as well. billy graham turning 99 today. he's preached to over 215 million people in more than 185 countries. in honor of his birthday, the billy graham library in charlotte held its own session with a cake and birthday banner and lots of well wishes. and we wish him all the very best that's the news update this hour kelly, bill, back downtown to you. >> sue, thank you very much. sue herera i'm on the floor with gordon of rosenblatt securities with 25

until the close. we talked briefly about the weakness in the russell 2000s. everybody selling off a little today. what do you think is going on? >> well, it's a sluggish day today. i mean, we're down about 2-1 volume here on the floor you know, we came in this morning, it looked okay. a little bit of carryover from asian markets but throughout the day, and i think what you're talking about the russell, that has to do with the bond market and some of the things -- >> yeah, bond markets get stronger, banks get weaker. >> the regional banks and the russell 2000 >> particularly the regional banks. >> you said interest rates, talking about this earlier, moving down today, that's hurting some of the regional banks pushing the russell 2000s weaker. >> that's been a big part of it today. as we head into the most important last half hour of the day of trading, we're looking at some of the imbalances, kelly, we're not seeing much that's going to suggest we're going to tree ver reverse it may sell down a little bit lower. it's been like that all day. and that's -- even with that,

one of the things we've noticed is that no matter how hard they sell, we still seem to be finding guys that are willing to buy the dips so today's one of those days where the buyers have patience, and the sellers that are maybe getting a little bit spooked, start to see the smaller indexes coming to play we think we'll be okay long term just got to ride this one out. >> all right we'll let you get to riding. gordon, thank you very much. bill >> all right as we head to the close here, snap is gearing up to report earnings after the bell. we'll debate the company's social media strategy and whether you should snap up shares before that report. and republicans are pushing to pass tax reform by thanksgiving the house ways & means committee is marking up the plan as we speak. the senate republicans set to unveil their plan this week as well a live report from whitoasngn coming up on "closing bell."

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i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. minus signs for wall street's major averages today. and it looks like this is show we're going to close so looks like we may not have any records for this tuesday still to come here on "closing bell," the gop tax plan

moving through congress, and kevin brady's house way s & mean committee is marking it up getting it ready we have a report on what may be in it. when we come back. and snap shares are up more than 2% today in advance of their earnings after the bell, we're going to preview what to expect from the social media player, when we come back. ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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house ways & means committee marking up the republican tax bill today this coming as ratings agency fitch warns a republican tax plan could only give a short-lived boost to the economy and would add to the federal debt eamon javers has the latest out of washington. eamon? >> hi, kelly, we had a little confusion here on capitol hill just within the past hour or so. mitch mcconnell came out and said the senate tax bill would be released on friday which surprised all the reporters who've been covering it and have been expecting to see that bill on thursday that prompted an immediate round of skepticism whether or not there was some problem in negotiations, some problem with the bill. turns out no, there was just a problem maybe with mcconnell's memory because they are planning owen releasing it thursday after all. the senate will be off on friday so stay tuned for the senate bill coming up on thursday despite what mcconnell said about it meanwhile, ted cruz speaking on capitol hill today really getting at the heart of some of the controversies that the

senators are going to be wrestling with for the rest of the week particularly when he talked about the idea of bringing in a repeal of the obamacare individual mandate for health care insurance. that's an idea that's gotten some traction lately ted cruz says he likes it and he likes it because of the math here's what he said. >> the congressional budget office scores that repeal as saving over $400 billion, all of which i believe should be put directly into lowering tax rates on individuals this draft does a good job on the corporate and business side. we need do every bit as good a job on the individual side >> so ted cruz there raising the idea which is supported by a number of other republican senators of bringing in obamacare, the politics of that, into this tax debate that's an open question whether that makes it easier or harder to get this bill done ultimately cruz there is saying, though, is you get $400 billion of savings because if you repeal the

individual mandate, ultimately fewer people will have health insurance and that will cost the subsidies, federal government less in subsidies going forward to pay for that health insurance for all those people who are now forced to get it under the individual mandate that's one idea. the other problem here that could be propping up is the other one you heard ted cruz talking about which is the idea of state and local tax deductions some people could be getting a tax increase under this bill ted cruz doesn't like that idea. he wants to make sure that they're doing everything they can on the individual side to make sure that everybody's getting a tax cut here across the board. that, the politics of that are very tricky as well. nose t those two issues could be the big ones we're wrestling with between now and the end of the week, kelly. >> i got a question, there's talk that the senate version keeps the mortgage interest deduction at $1 million mortgage >> yeah. >> so that needs to be reconc e reconciled any big differences between the house and senate version that we know of? >> it's a fascinating one, bill, because that impacts areas where

you have really high-cost real estate, right? what areas can you think of that are like that? well, new york and california where they got a lot of people who have mortgages in high-end areas that are higher than $500,000 could be impacted but those are largely not trump areas. so the question is, does that impact the votes of republicans in the house who are in new york state, in particular, does that swing the math in terms of the number of votes? maybe not, but it's certainly a sticking point a lot of people are looking at it could impact maybe real estate prices in those areas have to talk to a real estate expert about that as well. >> it's all over the front pages. >> i'm sure it is. >> tell you that >> thanks, eamon. >> you bet. >> see you later so snapchat users spend an average of 42 minutes a day using that app that's encouraging news to snap bulls, but recent layoffs and a hiring slowdown at the company is bolstering bears to stay away from the stock when we come back, a debate. we have a bull and a bear on snap easy to analyze and take action?

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welcome back there was just an ovation at the new york stock exchange ahead of the ringing of the closing bell. we have secretary of veterans affairs david shulkin and various military heroes here to ring the closing bell in the

run-up to veteran's day. >> yes. >> which is on saturday. >> that's captain america and spiderman who are here as part of the effort. >> that's because part of this is being sponsored by disney and also johnson & johnson they're supposed to be -- >> and the -- >> -- doctors around here, pharmacists or something yes, it was quite an ovation, too, as it always is when you have military heroes coming to the floor of the new york stock exchange >> and we'll see them ringing the closing bell in just a couple of moments. snap is, meanwhile, gearing up to report earnings after that bell stock's up today julia boorstin has a preview jul julia? >> well, kelly, the pressure is on for snap to show progress after disappointing wall street expectations in its first two quarters since going public. the real question is whether snap can grow its user base and its revenue and convince investors of its roadmap this in the face of growing competition for users as well as for ad dollars user engagement is key analysts expect daily active users to grow to nearly 182 million. that's about 9 million more

daily users than the company reported in the prior quarter. revenues expected to come in at $238 million on a 15 cent per share loss. kelly, and bill, we will be watching those numbers when they come out >> all right thank you, julia we will see you in a few minutes. should investors be betting on snap here to debate that, our bull, john from gfi group. he's a believer in the stock our bear is brian from pivotal research group john, i'm looking at your notes here, did i read this correctly, you're saying clarity on taxes will lead to more consolidation in media are you buying this stock because you think it will be acquired >> i think that we're seeing a lot of consolidation in the industry, right, so we see obviously what's going on with disney, i think it's all about the pikes. we're starting to get away from exactly how many users everybody has. if we look at facebook, 1.7 billion users, netflix, right, their users are basically had dvds and now valued at almost

$800, you know, a user. >> right. >> so whether twitter, snap, to me, it doesn't matter how much they move the needle on user growth, right? they still have 183 million, let's just say, users right now. each user has a value on twitte0 million. depending on the con figuatific. those are valuable to content companies like disney. once they're able to push their content over those pipes, so i think really right now we're seeing this kind of battle royale, right, where everything is going to the handheld, people aren't buying cable subscriptions. you know, everybody has a slice of the pie >> okay. >> and i think that's why we're seeing what we're seeing and the overall industry >> brian, are you focused still on the user growth metric? >> i've never been focused on user-based metrics when it comes to valuing these companies absolutely nothing to do with how they generate revenue, how they will generate arevenue.

so long as they're an advertising-focused business, that the they happy happen to ha certain number of users relative to certain other alternatives can inform how you think about the wallet i look at this on a dcf basis. i can get them to $6.5 billion revenue by 2020 with optimistic assumptions, i get them to about a billion and a half bring that back to the present i get to a $14 billion valuation. 9 bucks a share. >> and it's at $15, just over $15 right now, john. >> he's been a bear for a long time he was a bear when it was at 30, went down to 12. i think that's -- >> sounds like a good time to be a bear. >> i think things have changed since then i think, again, we're really pivoting more toward the live streaming, the users, how much -- we don't know how much a user -- when netflix was selling dvds, a user was worth, you know, $5, $6 now the users are worth so much

more they have original content, a lot of things going. same thing for amazon. these are basically huge list companies and everybody is using a.i. to monetize their lists and to get the most out of segmenting that population >> all right >> we got to go at this point, gentlemen, we have breaking news as well. thank you, john. >> thank you. >> brian we got those numbers from snap coming up in just a little bit. we do have a news alert on gary cohn. john harwood has details john >> bill, reporters around the world are trying to figure out what to make of the revelations in the so-called paradise papers that came out of a bermuda law firm and showed so many important members of the business community worldwide utilizing tax havens there one of them was gary cohn, former executive of goldman sachs. he is linked in the paradise papers to 22 different entities in bermuda, and i asked him why that occurred. >> i found out about them in the newspaper. so they ended in 2006.

i didn't have them personally. goldman sachs had them >> your name was on them -- >> so goldman sachs had them because i worked at goldman sachs in the division i was running at the time, i became an officer of those companies by the mere position i held. i didn't have money in them. i didn't do anything but become an officer of those entities. >> is it embarrassing to have that come out? >> i'm not embarrassed i'm not embarrassed at all that's the way the world works there wassing there was nothing done to avoid anything many of the veebhicles were setp to bring capital into the united states to buy assets in the united states. a way to facilitate international commerce and a way to facilitate capital coming into the united states. >> the way the world works, i don't think anybody is going to argue with that, bill. we're going have the rest of the gary cohn interview in our speak easy on thursday. >> all right look forward to that very much, john

john harwood, thank you. we'll come back with the dow trying to turn positive. we have the "closing countdown" after this will they stay true to their words? or did they promise you one thing... only to do another? right now, congress is talking about tax cuts that will add trillions to our national debt and hurt our economy. it's time to tell congress... don't borrow more money from china. and leave more debt to our kids. keep your word. tax cuts shouldn't add to the national debt. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.

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thank you. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. about 30 seconds left in the trading session. the dow turning positive could be a record. everybody is talking about the russell 2000, bob pisani. >> down 1.3% again today with the s&p essentially flat look at that divergence.

that's a ne-month chart. there's the russell 2000s. the s&p may be up 2% the russell 2000 may be down 2%. to an extent, that is a proxy for tax reform that is a little bit worrisome >> looks like we will get a record for the dow as we go out we got that plus more earnings coming your way on the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kell thank you, bill, welcome to" closing bell," everybody, i'm kelly evans. looking at the dow on the bell, looks like it might have turned green here the best performer today even though everybody was basically down looks like about a two-point gain, 23,550 we'll see how it shakes out. that would be a record high close for the dow 30 the s&p 500 down just a point and a half on the bell 2,589. the nasdaq composikpocomposite closing at 6,767.78.

elegant number there russell 2000 having a bad session today, they're down to 1,479. all-time record high close is still from early october when they close the at 1,512. lot of earnings in those numbers and earnings headed our way this hour our reporters are standing by. julia boorstin will bring us snap results when they cross diana olick is covering zillow seema mody is monitoring match groups numbers along with marriott guys, thank you, see you in a couple minutes joining me today, cnbc senior markets commentator michael santoli. david katz on set. welcome. matrix asset advisers. john blink from zachs investment research biggest dow winner was dow dupont biggest loser jpmorgan chase over in the s&p, biggest loser today, priceline trip advisor and mounting pressure across online bookings, trip advisor down 13%, priceline, michael, down >> huge air pocket in the one sector seems to me a general defensive tone is the theme today.

mentioned jp morgan as a big dow loser. banks in general down more than 1.50% as a group time finally surrendering to the prs pressure on the yield curve. staples and utilities, shows you generally the undertow of selling that's been there, average stock, took hold of the indexes. not a lot of damage done outside the small caps. >> looks like it's up now seven points on the bell, david. what do you make of it all >> in terms of the marngt, weke would not read too much into daily activity the financials have had a great run, gave back a little bit today. we actually like them as we discussed a few times this year. if there's any more weakness -- >> why are you expecting volatility that's been a losing bet for a while now. >> not betting on volatility as an investor, we're saying expect volatility. we're expecting it because you've not had it for a while and volatility is normal the fact we haven't had it simply means you s you're goin return to the norm if you're an investor, don't chase the fact the market's done

great. expect volatility, buy into any sort of weakness. >> john, who are your thaupgtous >> kelly, what i would say i think the vote next week on thursday is going to for the fax bill people are looking in front of that, the book profit. i think some of this selling today was profit taking, that's what i think. >> if that's the case, it wasn't much the dow closed higher. as i mentioned we had a couple of issues in the travel space -- issues related to earnings, john would you be a buyer there >> you know, i think trip advisor is starting to look interesting at 30 bucks a share, kelly, back to a 2012 low. that was a pretty stable low i think going forward, trip advisor might be the opportunity. priceline, that was a more shocking outlook-related takedown for the fourth quarter. i would probably stay away from that one >> all right let's dig into these tax jitters for a minute often seen as a proxy for tax

reform, closed down more than 1% the senate gop tax bill will be released thursday according to nbc news reuters reporting investors are jumping on buyback stocks like microsoft, texas instruments, southwest, lowe's, all in a bet on the trump tax plan, michael. >> yeah, i don't know if that's necessarily a real acute trade on the tax plan in term of those types of stocks. those are kind of good free cash flow stocks that have been really good performers for a while now. as a general category. i do think, though, people are much more focused on the complications and the challenges to getting this tax reform done and getting to a 20% corporate rate than they are on the opportunities right now. i do think that's been an excuse for some of the jitters. >> david, what do you think was going on with the small caps today and what are your prospects for the tax reform plan >> probably tax related because people are realizing it's going to be difficult. but we wouldn't do anything in terms of investing for or against stocks on the tax plan going to be tremendous changes between now and when it's finally implemented. so we wouldn't make any wholesale changes to your portfolio. if you like small caps, we'd be

buying here. we wouldn't try to position for or against any of these companies. >> if it doesn't pass, you think the market sells off >> over the very near terms you might have the selloff if it doesn't pass i think stock valuations are okay, interest rates are low and the economy is good regardless of whether the tax plan passes or not if it does pass, it's icing on the cake, could get a 10% earnings pickup. breaking news on twitter to get to, julia, what's happening there? >> kelly, twitter announcing it's rolling out the ability to tweet with 280 characters to most countries starting today. this is expanding from a test it launched back in september to see the impact of the doubling of its traditional 140-character limit. a limit that has defined the service for a decade twitter saying in a blog, "we saw people needed to use more than 140 characters, they tweeted more easily and more often, importantly, people tweeted below 140 more of the time and the brevity of twitter remained." this of course comes as twitter works to grow its user base and engagement in the face of a lot of different kinds of

competition. kelly, back over to you. >> thank you, julia. michael, they said 9% of their tweets were running up against this threshold so they needed to unlock this. do you like it >> i don't know if wholesale i like it. i don't know if it's necessarily a formula for getting higher user engagement which, therefore, is going to translate into more advertiser interest. maybe it will. i do think there's some kind of cumbersome workarounds people have to do, threading tweets and basically having all these ones that fall through the cracks. >> part of the craft of twitter. >> yes, there definitely was something of the benefits of that constraint. but, you know, as i say, i don't think everyone's going to run off to 280 for every single tweet. let's get over to that report now, diana olick has the numbers. diana? >> strong beat for zillow. q3 earnings per share, 19 cents adjusted versus estimates of 17 cents per share. revenue beat again, $282 million, versus estimates of

$277 million strong q4 revenue guidance at $274 million to $279 million versus estimates of $274.5 million. now traffic to zillow's brands and -- apps and websites reached more than 175 million average monthly unique users in the third quarter. increase of 6% year over year. we had been looking at traffic so that's a gain of 6% year over year traffic to mobile apps and websites, zillow truly a street easy, real estate.com, increased 19% year over year to 1.7 billion. the ceo touted new products saying he's looking toward things such as 3-d home tours on iphones, and the test of zillow's instant offers that allow home sellers to compare agent estimates of home sale products all new products zillow is offering he notes in the third quarter of 2017, premiere agent revenue grew 24% year over year. so solid beat for zillow >> indeed. the shares are up 6 -- now 7%. julia, thank you john, what do you think about

zillow >> this is a great report. this tells us something that we didn't know before that real estate is actually going to survive the interest rate hikes the fed is putting on the table and balance sheet reductions this tells us not only is the market strong, probably look at real estate as a growth sector for the s&p 500. >> i can say, michael, i was a couple of those clips. >> so what you're saying -- >> in the quarter. >> -- maybe they saw peak traffic. >> maybe. >> no longer need to look anymore. i think there's some headroom for the stock. it was trading at 50 as recently as a few months ago. i think a good beat, especially with revenue forward guidance is probably the thing that's going to lift it a little bit more expensive stock, though, has been since day one. >> up 10% after hours. more on the home ownership trends. any minute now we're going to get results from snap, the third quarter numbers. wall street expecting a loss of 33 cents per share, revenue of almost $237 million. company's got a lot to prove first two quarters since going public have not gone very well

john, the shares up nearly 2% on the session today, though. >> yeah, that's short covering, kelly. got to remember, this is the most shorted stock in the internet application, social media space. so short covering is not a good sign it doesn't tell us anything. also i would say $15 a share is really $2 a share below the ipo price. and the bears and the bulls in this stock are around that $17 a share level. $20 and $30 a share price targets are bulls and $12 and $14 are bears. bottom line, we're at $15 a share, that's a bearish number >> it certainly is if you owned it from the ipo. it has been fighting its way back from $12 and change the last three, four months. i do think you have people starting to try and fashion a reason to look at it in a different light, which is, one, it was not, you know, an instrument of hacking the election and two, i think some of the new hardware on the new phones, it's a play on the iphone x, and the ways of basically utilizing better photography and a.r. and

all that i do think that there's something to be said for the fact the stock managed to claw its way up here. >> david, we've seen a lot of companies, big platforms doing very well this earnings season, smaller online flat forms really struggling snap is one of the smaller ones. it is valuable what are your thoughts >> well, disappointed twice and typically when a company disappoints a number of times, you don't want to bet they're going to change tear wayheir wa. they're under pressure to do better this is one we're happy we don't own whether they do better or poorly, we think there's much better places in the market to make money. >> a lot of deals lately, perhaps bulging up against faang companies. deal mania continues today brookfield asset management has held discussions with mall owner ggp about acquiring a remaining stake and taking the company private. that shot ggp shares higher today. made it the best performer in the s&p 500. john, what does this possible deal say to you? >> it says we've got some issues in these shopping malls and people still aren't comfortable with retail.

if general growth is getting out of these businesses, looking to sell, it tells us that we really do have an amazon effect and this is something we need to be aware of >> mike? >> scale in sectors that have, you know, very well-known challenges i mean, i do think that's part of the story both for media and for real estate -- retail real estate. >> these are well-regarded operators. >> is absolutely. >> brookfield and ggp. there's been an argument all along that reinvesting in some existing property not only with retail refresh but also with the restaurants and different experiences would be plenty to stave off the amazon effect. >> yeah, i agree with you, kelly. essentially all these estimates of how many hundreds or maybe, you know, even thousands of shopping centers have to close are not really these types of properties that these two companiy ies tend to own. doesn't mean it's going to be easy >> they might think public price is too low >> sure. >> for the value. >> very smart management that know what they think their

assets are worth. let's send it to seema mody, joins us for a quick market flash. >> check out shares of lending club dropping precipitously on earnings that came in in line with expectations. revenue, though, a miss at $154 million. expectations were $157.2 million. the real story is in guidance. weak q4 revenue guidance see the stock here down 17%. a company that went public in august of 2014 kelly? >> wow thank you, seema this is now less than a $5 stock. david, what are your thoughts? >> well, back to what you were talking about takeovers, we think after a dearth of takeovers for the first nine months of the year, a significant pickup disney and fox talking yesterday. broadcom one thing to look at over the next year, try to buy companies you think could be bought out that are good, anyway. >> john, maybe there needs to be consolidation on the online lending space. >> 5 bucks a share, kelly, i

don't understand businesses like this is there a more crowded space than mainline banking and the entire spectrum of the economy i don't understand the value proposition to begin with. i think it's a business that was trying to find a way and a space that makes no sense to find a way. so i'm not surprised they're fi$5 i bet it goes to zero before it goes to $10. >> thanks for joins us here. >> thank you. >> big decline in lendingclub. snap shares plunged nearly 40% since its ipo back in march. up next, whether the company's earnings are enough to turn the stock back around. plus millennials may be finally ready to dip their toes into the housing market. we'll look at whether thatou cld give the economy another boost coming up on the "closing bell." 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. snap earnings are out. julia boorstin has the numbers julia? >> hey, kelly. snap shares falling dramatically as the company misses in terms of revenue and also in terms of users. the company reporting a loss of -- adjusted loss of 14 cents per share, that's actually a penny better than expected wall street analysts had been expecting a 15 cent loss per share. if you look at daily active users, they're coming in at 178 million for the quarter.

that's versus expectations of 181.8 million. so that means the company added 4.5 million new daily active users from q2 to q3. revenues lighter than expectations coming in at $207.9 million. versus estimates of $236.9 million. adds up to a lower average revenue per user than expected arpu, key metric to see the success of the companies, now $1.17 versus $1.30 estimates we talked to khan, chief strategy officer i asked him why the shortfall. he says it's due to a change in how snap changes, sells ads, b saying, "we've taken important steps this year to build a scaleable advertising business transitioning to an auction has lowered prices by 60% year over year, leading to revenue headwind in the short term it is critically important for us to continue to drive advertiser adoption. the number of advertisers on our auction platform is now already five times higher than the beginning of q3.

now, snap for the first time released its prepared remarks along with those earnings. hasn't done that before. evan spiegel saying their priorities are user growth, content and augmented reality. spiegel says they're working to redesign the app to make it easier to use, says that could be disruptive to the business in it the short term. they'll take the risk for what they think is long-term benefits he also explains lower daily active user growth unexpected. he said this could be partially attributed to the decision to report users over an average over an entire quarter, where a strong september was offset by more modest growth in july and august he says they do want to drive more user growth in 2018 he also said snapchat has 3.5 billion snaps created daily. that's up more than 40%. and that the community opens the app an average of 25 times per day. one last note, kelly, he said in q3, they recorded $39.9 million of charges related to spectacle's inventory, access

inventory reserves back over to you. >> julia, as you delivered that report, the shares have gone from a drop of 11% to a drop of about 21%. julia boorstin with that report. joining us to reaction to those earnings, ed lee from recode jonathan from summit redstone partners ed, wow, what do you think >> wow this is a big miss i mean, even if you take the words about the advertising missing or the revenue missing because they have a new automated system and getting people up to speed on it, they miss big on the active user base now they also try to explain that by saying, you know, it's how we count them or slightly different. it seems like they keep moving the goal post a little bit every quarter in terms of how they measure things, what they want us to focus on snap hasn't been great at communicating with wall street this is another example of that. which is why, you know, it's an uncertain thing that's dropping more than 20% beyond just the miss it's the communication with investors. >> yeah, jonathan, you've had a sell rating on this stock so how many of these concerns, to you,

are kind of quarterly or transitional related to that auction model and other things and how much of this is existential? >> i think it's both there's some that's quarterly and hopefully for management sake, it's going to be short term, but i think there's a lot that's going to be more existential, more long term. stuff with pricing, what that's telling me, basically in order to drive demand, in order to fill up inventory, they had to lower pricing and, you know, how long will that take? how long will they be able to fill up the inventory then be able to raise prices facebook, the same time, had raised prices and their q3 quarter, at least the pricing was received well. the price hike was received well obviously in their words, but they did not report any downtick in users, obviously in revenues or like snap is doing here. >> ed, obviously what did not get mentioned in the official statements from the snap folks

was instagram, but to that point about facebook pricing power when snap seems no the to have it the bold case, at least one of them, was average revenue per user, there's such a huge gap between what snap's been able to achieve and what facebooks get, you know, they could make up a lot of ground, as if there was some natural tendency for them to go up this is a big slip on that t trajectory in this quarter is it kind of game over, what do they have to do to figure that out? >> i think you pointed out all the exact right things i don't think it's game over, though i think they have room to grow again, itle cop comes down to bg in more advertisers to get the prices up in terms of more active bidding, getting them understanding their system i mean, my sort of skepticism around that a little bit, though, these are systems going l and facebook have had for years. not as if they don't know how these things work, how auction systems work, apis and whatnot it's a maetter of getting out to the market, getting more advertisers onboard, not necessarily the big ones but the

mom and pop ones that really feel facebook and google that's one area snap hasn't really benefited from. if anything, they're doing better on the higher-end advertisers which is what facebook and google have wanted to try to get as well. it's a mismatch. you know, i think one side of the ad market is something they really haven't tapped into properly. >> snap shares are down about 19% after hours after this disappointing report a little bit over $12 a share right now. jonathan, is the total number of users on the internet, on companies like this, growing, or are facebook, you know, instagram platforms taking users away from snap >> it's -- they're taking users definitely from snap i mean, there's only so many hours in a day only so much free time you have to choose between one platform versus the other. you go obviously to the one where you have the most friends, but friends are -- a lot of people, especially the teenagers, the millennials, have both and they're starting to pick sides in terms of which one they spend more time on. so i would add to the comment earlier in terms of getting

advertisers on there, there's also something i've talked about before is there's also the hesitation, conservative thinking of advertisers. they have limited advertising budget they don't want to experiment with something that's a new platform they want to try something that's a tested platform and i think -- >> jonathan -- >> go ahead. >> to that point, it is a good point, and ed made the point as well, this is maybe where some of the higher-end advertisers are going. can snap exist as a niche platform that attracts tre s th advertisers looking for a digit demographic or not >> absolutely. actually that's my thesis is that they're just going to -- they're on the road to become bing a niche platform. a niche market with not the scale, not the size that everyone thought they would be not going to take over the world. they're going to basically target teenagers, maybe the 20-somethings, but after that, a lot of them tend to migrate to instagram, to twitter, to facebook there's not a lot of loyalty with the users

and the people, the advertisers who would find snapchat appealing would be those who are related to the content, probably like movie advertisers, entertainment advertisers, stuff that they have related to what snap is partnering with right now. >> all right well, a difficult reaction in the share price for snap i mean, first couple quarters out of the gate, mike, this is now the third one, a big disappointing move ed, what were you going to say last word. >> i mean, just the point is, like, it's a media company, right? that's what they really need to focus on making sthue ining sur. not a hardware company, not a camera company they should stop pretending they're a newfangled tech -- they're social media, where they're getting their business from and need to take full stock of that. >> we'll see what the management's reaction will be now. gentlemen, thank you both. ed lee jonathan joining us. >> thank qulu. >> with an 18% to 19% decline in snap after its third quarter earnings report. we'll have more on that.

plus look at uber and lyft, alphab alphabet's waymo business, self-driving vehicles. where you'll see the robo taxis. brookfield asset management could be working to take that company profit whether this signals another nail in the coffin of shopping malls thanks to amazon, coming up

i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise uber and lyft may dominate the ride-hailing industry here in the u.s. but alphabet's waymo

is hoping for a piece of the pie. the company is offering that service with a twist phil lebeau has these details. phil >> a driverless twist, kelly basically what you're going to be seeing from waymo starting in the next couple months in phoenix is this. self-driving waymo minivans with nobody in the front seat truly nobody in the front seat you'll have some passengers in the back seat and initially you'll have some waymo engineers in the third row in case there are questions. there will be no safety drivers in the front seat. it will start in the phoenix area and waymo believes there are a lot of people who want to go in a self-driving vehicle >> there's no question that there's a large percentage of the public that is absolutely ready and would love to have access to this technology as soon as possible >> so what does this mean for uber and lyft? well, initially, it's unlikely that they're going to lose much business in the phoenix area look, uber has 70% of the ride share market in the united states it has tens of thousands of drivers. and lyft is growing extremely

quickly. it has about 25% of the market that said, what you're seeing from waymo is what we're going to be seeing from other tech companies, other automakers, trying to take the ride share market to the next level in terms of self-driving vehicles and waymo believes they have a first mover advantage, and they have nearly 3 million miles of public road testing under their belt so they can say with confidence, yeah, we think it's not only going to be safe, we think people will want this. it will be interesting to see how this shakes out as the service rolls out first in phoenix then in other markets around the country >> i'll be following it closely. i know everybody will. wondering how this whole experiment goes. phil, thank you very much. our phil lebeau. time for a cnbc news update once again with sue herera hi, sue. >> hello, kelly, hello, everyone here's what's happening at this hour french police arresting nine people while another was arrested in switzerland in coordinated counterterrorism sweeps the parisian newspaper said it

was possible those raids had thwarted a terrorist attack. after casting his ballot in the new jersey governor's election, outgoing governor chris christie got into a verbal confrontation with a woman she demanded to know why mendam township and mendam boroughs weren't merged after an exchange of words, christie had this sarcastic response. >> sure, easier to sit here and complain, but you know what, that's the joy of public service. it's serving -- it's serving folks -- it'sserving folks -- yeah, it's serving -- it's serving folks like you that is really such a unique joy it really is you're fabulous. >> go away. >> any other questions the latest advice from the american society of clinical oncology is alcohol is a cancer risk the more you drink, the higher your risk. the american cancer society suggests people limit alcohol intake to one drink a day for women, two for men that is the news update this hour

kelly, back downtown to you. >> all right sue, thank quyou very much. >> you got it. >> sue herera. let's take a look how we finished on wall street. the dow had a surprise on the bell, it was a surprise gain of eight points that puts it in record territory on that close. 23,557 not the case the other a f rave. the russell is down 18 they were the big decliner today dropping 1.25%. let's check on earnings names after hours. we have more big moves especially in shares of snap they've rebounded. they were down more than 20% now still down about 16 pk lendi lendingclub down 16%, 17%. weak q4 guidance zillow group gaining 2.50% bucking the trend. we'll watch it, of course, as we continue to get more commentary from these companies when their earnings calls get under way. if you missed any ofthe other big stories today, let's get you up to speed in today's "rapid recap." >> disney approached fox but fox has been thinking for some time,

and this is the key point i think, guys, that it doesn't have enough scale to compete in this new world. >> last year, trying to talk about dreamforce was stopping amazon this year i keep hearing netflix. this is the way to stop netflix. >> a drdp shareholders re-electd all ten of the company's dire directors. that's a loss for bill ackman. >> i think it's the largest mar margin of victory for any large cap proxy contest ever that would hopefully be a message for bill it's time to move on. >> we're rooting for them. we hope they're successful if they're successful, the stock price will go up a lot if they disappoint, we'll get in there and make the necessary changes. >> i'm sure all of us here on this desk get one or two pr pitches a week for a new etf product. is there a market risk to this >> well, the question is do i worry? and the answer is you're damn right, i worry how can i not worry about it >> that caught my attention there from jack bogle, michael.

>> yes, although a consistent message from jack, and one of the things that he said he's worried about with etfs is the concentration of the management of etfs, broad index etfs with three firms. essentially blackrock, statestreet, vanguard. nobody knows how this plays out as a market risk, structural risk for the markets he focuses on the key stuff that matters for the fair -- >> they have a fairamount of assets under management, too >> oh, vanguard is in there. with those of course, he says, you know, the -- as they often like to say, the vanguard customer does not trade as heavily, is not as short-term oriented. >> it was fascinating. time for the takeaway today. we begin with the demise of black friday which is swiftly approaching. says just 35% of shoppers intend to do most of their shopping on black friday this year, that's down from 59% just two years ago. when are they shopping thanksgiving for one with 58% of shoppers doing that versus 40% last year.

since 2014, mike, super saturday, one more christmas, surpassed black friday in sales. what's your takeaway >> relatively recently they tried to engineer black friday to be a bigger thing this makes all kinds of sense. i don't think anybody is kind of mourning the loss of black friday as a must for those particular deals. >> is it for thanksgiving? >> are we surprised that -- >> i think it's getting all stretched out. basically when people are shopping online, they're doing it when they want to do it as opposed to these kind of artificial moments when the retailers decide to put deals up there. and i do think what it's doing is no longer penalizing somebody who wants to get one of these coveted deals for not wanting to go and deal with the scrum of black friday. >> and another negative for the malls, exactly to your point there. next, amazon is launching its own furniture brands restoration hardware and wayfair were down on this news today michael, how much of a threat is this for the furniture companies? >> you know, wayfair is down quite a bit a up its recent highs, 25% in a couple months

if you're going to buy furniture online, you made the first step, wayfair certainly not your only option i think it's significant, it's one of those things it doesn't seem like it's going to be a major new profit push for amazon, yet it could obliterate the business models of others. >> company gets into business a little bit and enough for the share price reaction see wayfair again down nearly 6% -- >> think how much amazon will know about you -- they know you're moving or doing a renovati renovation. >> oh, yeah. or they're buying a crib oh, yeah, mega. finally after reports of haphazard and potentially hazardous factory conditions, tesla is buying perbix the "financial times," "journal" detailed much of the work to make teslas has been done under huge deadline pressure the cars, michael, are arriving unfinished to dealerships where they finish assembling them for delivery. >> tesla is obviously stressing the supply chain they want to try to do more in house. they're very particular about trying to essentially do more of the vehicle than typically

automakers do. i think it's -- jury's out as to whether they can -- production glitches they missed many, many tarngt s over the years. >> any executives leaving? >> yes, they have to upgrade that the shares were up 1%. i wonder, they say, at least they're getting serious about this now. >> yeah, right try to get their hands on it as opposed to trying to rely on the outside. >> we'll see how that goes as theymillennials, we'll talk about them in one moment we're going to talk about marriott first seema mody, how did the company do on its earnings >> beat for marriott, $1.10 adjusted on the bottom line. street was looking for 99 cents. revenue also a beat at $5.66 billion. wall street analysts were looking for $5.23 billion. now, worldwide rev par, revenue per available room, key metric we look for in the hotel industry, rose 2.1% in the third quarter for marriott and for 2018 which is what really analysts had been looking at, revpar expected to increase 1% to 3% worldwide

and 3% to 5% outside north america. the stock up just fractionally i should point out it has been a key winner in the hotel space. up 70% over the past one year. when i spoke to marriott ceo arne sorenson in october, he really emphasized the company is focused on its asset light strategy selling off a lot of core real estate assets from the acquisition which was one year back back to you, kelly. >> marriott a rare company that's little changed after itst seema, thank you. millennials may be ready to finally bad a home may be bad news for rental companies. snap's earnings conference call is going to get under way in a couple minutes. shares down more than 15%. we'll count you down to that tehos.this big stock plunge afr ur (honking) (beeping) we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered.

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instagram. as they invest more in similar services like those lenses not a lot of talk about competition in these prepared remarks. ceo evan spiegel, chief strategy officer khan talked about the shortfall on different counts. they explain they counted an average of users over the quarter, rather than at the end of the quarter explaining one reason users didn't grow faster spoke about a shift to an automated ad sales system having an impact on revenue one thing we could hear a lot about in the q&a session, snap admitting how difficult the app is to understand and use the fact evan spiegel, the ceo, said snap is redesigning the apps to make it easier to use. could be a good thing. spiegel says in the prepared remarks, "we don't yet know how the behavior of our community will change when they begin our updated application. there are a lot of question marks for snap's future. what the changing service will be like. what kind of impact it could have on growth now we see shares down over 16%. kelly? >> be listening keenly for more

on the call. julia, thank you. shares of zillow which just reported its earnings are higher after the report tracks homes both for sale and rent it's up about 3% right now to today the "wall street journal" suggested millennials are finally looking to buy which seems to be up-ending the rental market chris thornburg joins us now along with fred glick. who's vice president of a property management company. welcome to you both. chris, from the home ownership stats, it does seem like a big sea change is under way for mill l l millennial homeown ownership. >> i don't know if i call this a sea change saw it go up by a coupley amount really what it suggests is this long languishing housing slump we may be in, we have been, it's finally starting to turn up. it's not global, it's not revolution it's evolution >> fred, it is bad news for these mega home rental companies that have emerged from the financial crisis, isn't it

>> well, yes and no. there's always going to be people who need to rent for different reasons. credit, income verification, or the ones that will always have a base of people who will need to re rent still there's people out there who like renting, like to make the phone call and get stuff done and don't really care or know or in the right economic class to be able to want to buy to get the tax benefits. >> chris, perfectly in agreement with you that basically this is just kind of an incremental move, mostly cyclical. my rule about stories about mill lel yan millennials have to substitute adults between ages of 19 and 36, that's what millennials are right now. to say they're buying homes is no revolutionary -- however, there was a story line that said, you know what, this generation is going to be different, tahey're going to ret forever, they like the mobility and flexibility. are we seeing evidence maybe that great long-term bull case

for rental properties might be challenged >> well, i think that that story line was always kind of r ridiculo ridiculous when the great recession hit and the housing market collapsed, credit became unbelievably tonight. today it is still tight. one of the reasons why the rental market has continued to be strong. now in many ways, there's a bit of a shift the credit's loosening up a bit. millennials not only growing up a little bit but doing better from an economic perspective because labor markets are tight. that suggests absolutely people are going to start buying homes. remember, a few people buying homes is not going to collapse the rental market. after all, over half the renters created after the great recession, most of those, about half those folks ended up in single-family rentals and of course, those product, those houses, will be sold back into the owner occupied market during the course of this shift as we've seen in the past. so the multi-family space, while the boom, boom years are clearly behind us, clearly is going to continue to be stable moving forward. >> chris, can we boil this down to a trade

would you kind of venture in terms of who -- you know, who do you own and who do you not own in this new environment? >> i'm an index fund kind of guy as the case may be look, these guys who bought all these single-family rentals are going to do fine they made their money in terms of the underlying asset. rental flows are never that big of a deal. trying to manage a portfolio of 2,000, 3,000 single-family homes is a nightmare they made their money, time to get out and that's going to rebalance the market. >> all right, we got to go thank you, both. talking about the changing housing market very much appreciate it. >> i had so much. >> i know you do we'll bring you back don't worry. i love the story personally. anyway, take 2 and match are reporting their earnings seema mody has those results. >> two stocks on the rise starting with take 2 interactive reporting stronger than expected revenue and earnings growth plus it raised its profit forecast for the all-important holiday quarter season helped by grand theft auto and recently launched basketball franchise game, kelly, i'm sure you're a fan

that stock up over 10% of course, this is also a sharp contrast to what we heard from activision blizzard. quick mention of match group, shares also rising ea earnings missed. driven by fantastic performance at tinder and match, according to the chairman and ceo of match group, that is greg blatt. that stock up 5% kelly. >> >> all right. thank you, seema more deal talks hitting the tape today this time in the shopping mall space. are mega mergers back? at cinup under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

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the amazon effect strikes again. this time it's a potential mega deal in the shopping space we've got the details on why ggp is up nearly 17% today when we come right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late.

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welcome back shares of ggp are up 17% today on talks of a potential takeover by brookfield. joining us is paul hickey. paul, there may be an amazon angle to this, right >> oh, there's certainly an amazon angle to this when you look at how depressed ggp has

been it all stems back to death by amazon and how amazon is going after all these traditional brick and mortar retail companies. today you saw the news with furniture and stocks like williams and sonoma and wayfair getting hit. our death by amazon index, which tracks the percentage of traditional bricks and mortar retailers that we feel are most under threat from amazon, it's down 22% so far this year, and 40% from its high in early 2015. and, you know, the market or the s&p is up over 15%, 22% down year to date, that's a big problem. and these mall operators, the second derivative of that whole death by amazon, you know, trend. >> paul, trying to puzzle out exactly how much we should take away from this move by brookfield in terms of a statement on the overall attractiveness of maul retail.

brookfield owns more than a third of this company, i guess if you own more than a third of something that's down 22% year to date, you might as well own the rest of it it's not necessarily brookfield saying hey, we think there's a bright future for high end always look, it's a decent asset and we can do better with it privately. >> i think you're exactly right, mike definitely a special situation in this respect. and, you know, this does certainly -- taking itprivate would alleviate some of the public pressure on these stocks. short interest in the mall operators, just in the last two years, has quintupled from a low rate of 1.5% of float to over 8% of it average stock's float. when the stocks keep going down, that doesn't instill confidence in the part of the investment community. so when the stock isn't trading every day, it's harder for people to become, you know, more down on the group or more down on that specific company >> paul, we also this week had

the big potential news or the talks at least between disney and 21st century fox, which also seems to be bulking up against f.a.n.g., in this case netflix will we see more of this, industries that need scale to compete effectively against those giants >> you know, i think it's similar to the media trying to get together there's a whole, you know, effort on the part of traditional companies in the retail and media space to, you know, solve this competitive threat of what online is doing and the internet is doing, essentially taking out the middleman. so these are just, you know, these industries being disrupted all the time, consolidation among industries that are under threat, leads to a positive outcome all the time not necessarily, but at least they're doing something. >> mike, anything that you would

say leans against this being a smart deal to do right now >> well, the price i mean, obviously everything has a price, if you see where this settles out, that would mainly be the thing honestly, if you look at the vacancy rate at malls, it's trending down, but it's not a free fall, these businesses don't necessarily free fall overnight. if you're in the business, you diversify your risk and choose which assets >> ggp, after these moves in the mall industry, they're down 15%, it's not like they have had much of a move. if the company is willing to sell from a year ago and is still down, it's not a big vote of confidence. >> that's true paul, thank you, paul hickey

from beskepo investment group. we'll talk about snap's conference call, after this. [lance] monica, it is absolute chaos out here! gale force winds, accumulations up to 8 inches... ...don't know if you can hear me, but [monica] what's he doing? [lance] can we get a shot of this cold front, right here.

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the conference calls for snap, fossil, and lending club are all about to start at 5:00

p.m. some bigger declines, snap down 17%. lending club down nearly 25% after hours. fossil down 11%, mike, which feels like it always happens to your point, there was a $36 stock, it's at six bucks now >> it was at 120 four years ago. 95% of the value has gone away in this stock. those are three companies that we just listed where there was already tremendous skepticism about the business model and how they could make it work. you have numbers that come out today, even low expectations can't save them now. snap will be grilled about the instagram threat and exactly whether they're using their hold on new users and existing users. >> if your daughter can get on >> she's still lobbying to get on >> it was interesting, they took a charge on spectacles they limited that in the first place and it still sounds like -- >> the idea that it was a gadget and hardware company may be going by the wayside i wonder what it means for them

to say they're going to be a content creator, they keep trying to define themselves outside what people think of them as. >> other than a camera company still, the iphone x, we'll see if they try to play that up, saying it will unlock augmented reality opportunities. a lot to follow here at 5:00 p.m. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," check out shares of snap getting absolutely annihilateannihilate7 on disappointing revenues. we have full team coverage as that conference call kicks off julia boorstin is in l.a., "fast money" friend gene munster is mann e