welcome back to "squawk on the street." i'm kate roger stocks selling off with energy the worst performing sector. crude oil down following gloomy outlook for demand growth. devon energy leading downside. now send it back for the start of "squawk alley.." >> thank you very much 10:00 a.m. target headquarters in minneapolis, 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪

good winks morning, welcome to "squawk alley," cart qui" ca quintanilla with jon fortt stocks off the lows, down triple digits a few moments ago on the session. watching to see if this dip gets bought in the middle of the day. for that let's get to bob. >> still down, off the lows, s&p up 10 points from the open let's look at the sector, still defensive but moving to the upside banks a big down open but you can see they have moved in positive territory, telecom only sector on the upi'd. cyclicals on the weak side we've been talking about slowdown in the global markets in the last six or seven trading sessions europe on the downside, stock 600, s&p of europe nikkei, s&p down 1% since november 6th

russell 2,000. we've been talking about high yield always weak point. we asked our friends what happens when high yields declines 4% in a month we're not down there that far yet. the high yield index, those etfs declined 4%. usually follows them about % we're not there yet. this is a good indication high yield is an indicator of the appetite for risk in general more than just tax issues. we've talked about the change in tone in the market there's been progress on tax reform but it's not a home run flatter yield curve back for a lot of people, debates how serious we should take that. china data and middle east a little stew of things causing a small riskoff right now. here is the good news. despite six down days, we have rallied midday every single one of those days. take a look at s&p 500 this the last three days see the down open on monday, we rally midday down open on tuesday, rally

midday you see the down open today and the same pattern this has now been going on six days what it tells me, guys, still a bid in the market. more cautious but still people trying to buy on the dips in the middle of the day here i will tell you when do you think this might turn around this all started when the senate introduced its version of the tax bill basically saying they are going to put off tax cuts to 2018 that's when the market started through theering if we get clarity on that and they keep it in 2018, that may well help these daily declines that we've been seeing guys, back to you. >> all right, bob. we'll check in later, our bob pisani. deadline for wall street funds. buying and selling in tech space. leslie joins us with more on those moves. >> hey, carl, third quarter trades on balance portfolio managers added shares of facebook, amazon, apple and

netflix, among the funds that boosted their stake, core 2 and tiger global increased their exposure to amazon most increased in apple except david einhorn green light which consult its stakes netflix but sold in the quarter. more bearish, hedge funds, tutor, third point paring back there was also a lot of interest in china internet. ally baba and internet.com tiger global to webo and sina in addition to upping it's take of all the tech names amazon continues to be hugely helpful to tech fund managers. symmetric, amazon was the most positive contributor to alpha during the quarter that's within a basket of top

transforming funds the stock gained 16% during the quarter. sports international the parent company of fitness centers like new york sports clubs was the biggest detractor to alpha keep in mind these holdings are as of the end of september and may have changed in the six weeks since. back to you guys >> thank you, leslie sticking with target, obviously profit forecast for holiday quarter did fall short of estimates weighing down shares we talked to brian cornell earlier in a cnbc exclusive about the quarter. here is what he said. >> i'm surprised with the reaction we had a really solid q3, traffic up, digital grew by 24%. so all the levers we look at working well our brands have been well received our small stores off to a great start. our remodel stores like the one we're in today delivering exactly what we expected so-so many of our elements are working well, and it showed up

in our q3 results. joining us post 9, good to see you both we should mention, paul, a close down % only one drop bigger since 2001 overreaction >> we don't think so. >> really. >> certainly we applaud traffic, same-store sales increasing in a competitive backdrop, but i think operating income down 18%, earnings per share down 13% year over year at a time when we're just beginning to have target really invest meaningfully in wages, in their store with this target of $15, minimum wage by 2020 along with meaningful store remodels that's going to lift depreciation so really as we look forward and think about 2018, we struggle really to see how earnings can really grow in the outer years we think that's really the

reason for the downtick today. >> kate, what does target have to do? that 24% growth in digital means something, compound annual growth rate seems to be accelerating from the first half of the fiscal year all that is good news. when amazon seems to be investing in growth, even if it's going to cost them a little in the short-term investors are willing to give them a pass. >> yeah. it's a dilemma for the brick and mortar retailers, it really is i think you're right, we definitely saw good results from the third quarter both in digital and traffic in the stores but to the point made earlier, there does need to be a higher level investment, whether it's in people, fulfillment and digital. it does weigh on margins so you're seeing these companies best buy, walmart, all of which have had robust cost savings programs, none of it has gone through to the bottom line

because of the need for reinvestment and the need to stay one step ahead of what's current in the retail market. >> paul, we asked brian about competition about walmart and whether they need to take a page from walmart's playbook. do you think they should start being more inquisitive seeing the success walmart's stock at least has had from the investments, lord and taylor's online. >> walmart's strategy is a unique one they are leading the field in brick and mortar, competition versus amazon. certainly we do agree that that effort has been very well received both from an investor standpoint and from a consumer standpoint we do admire some of the partnership that target has. they do sell casper mattresses, for example. >> the thought of buying casper and decided not to. >> exactly that's a perfect example of opportunity that perhaps they

maybe should have been a little more aggressive on that front. >> of course all this is happening on a day where amazon says they are going to cut food prices at whole foods, as we head into the thanksgiving holiday. can you describe to some viewers how target is levered to grocery and whether or not that backs up or not cornell's argument that if you cut prices people come in the store and end up shopping in other categories while they are there. >> yes, that's right grocery is probably the area target has struggled the most with over the last several quarters we heard small wins in the beverage category, the fresh produce category but at the end of the day, it's a very competitive space price is really the ultimate driver that's something that everyone is pursuing, not just amazon with whole foods that's going to continue to be a very strong competitive threat, and it's an area that target needs to continueto work on to differentiate their product offering and also compete on

price. >> paul, as we approach holiday, it's toy buying, hasbro, mattel, amend amazon, target, all big in that space. does it matter in bricks and mortar, is it all online and how do you expect that aspect to play out >> we think it's going to be fiercely competitive on price, particularly among toys as well as electronics certainly we do think that both matter right? it needs to have a compelling reason to come in your store and shop broadly around the store. that's critical to retailer's -- >> is it just slashing the price of anything to get people in there. >> convenience and unique assortment are the two distinguishing factors we do applaud those that have created this ability to have

unique assortment, but we also would say the fill in trip is becoming much more important. >> describe that. >> well, it's the reason why we still recommend a group like the dollar stores, like a dollar tree without a big ecommerce concept, because the consumer is spending less and less time shopping all together, whether it's pushing a few buttons on your couch or going down to the corner to pick up three to five items. so we think convenience and being able to get in and out of the store quickly is really something that still makes a difference in this marketplace. >> kate, some stock selection here put target on universe of favorites. also if you can describe that -- some of these hard lines with some specialty names you also cover. >> sure. so we're neutraly rated on a target again, i think there have been some short-term wins here. they are doing a lot of right things i think again in the space of retail, the question really

comes down to long-term what can this business look like, what will margins look like so when we take a look at our universe with that regard, we rank our stocks more focused on who is not as secularly challenged or who we don't think will be secularly challenged at the top of the list is o'reilly and costco which is debatable but we have more confidence in them right now and there are buy ratings. >> we'll have that debate i'm sure not too long from now, guys thanks again good to see you both on a day where target is definitely moving when we come back is it time to get bullish on bitcoin? we'll talk about that. if you're tesla investor, you'll want to hear the prediction about the stock and the company ceo. check out shares of boingo wireless, telecom disrupter, stocks up 80% year-to-date n e ceo is going to choius

when "squawk alley" continues. the dow down 97. you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor.

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square confirming its square cash app will let you buy bitcoin on your phone as a test. both square and bitcoin rallying

on that news joining us josh, partner and managing editor at recode. welcome to you both. josh, for years now people saying i'm not necessarily bullish on bitcoin but if you had been bullish on bitcoin a couple years ago you would have made a lot of money. where do you stand on moves to incorporate bitcoin? do they really matter from a technology perspective >> i'm very optimistic these new crypto currencies all built on different block chains are going to be an important phenomenon in the coming years they are decentralized, which means there isn't a single point of control, a bank can control it certainly it's the granddaddy now, the most momentum from the people mining it and developing it it's going to be around a long time as a stable asset. >> stable.

>> i'm more excited about innovations to come. >> why do you define it stable why do you think it's going to be stable? >> stable is a very hard work. it's been incredibly volatile over the past few years. i think it's going to keep increasing and be the one with the most volume for quite a while. i think the innovation around the edges what people do with block chain is going to transform a lot more than an asset we buy and hold. >> are we back in this cycle where companies are talking about bitcoin to grab a headline remember when overstock and expedia and even dish put out a press release saying we can now use bitcoin. >> put in press release, headline, stock goes up, it happened with square yesterday i think the technology underlying that, as you pointed out, jon, the blockchain is interested basically you're settling interactions without intermediary, that's really cool the problem with bitcoin i have is the whole point, whole

conceit, no central governing body, not a currency like u.s. dollar is. they are having a hard time sorting out what to do with bitcoin. there's a move, hard fork, you split the currency, make transactions go faster the consortium who makes the decision, who are these guys they couldn't agree on that. yes, volatility, i don't know what you're buying at this point. there's a lot of the idea technology is great. in practice and execution, it's really bizarre. >> so in a reasonable sense, what do you think the volume that square could potentially do in bitcoin transactions would even be. >> bitcoin technology the way square is deploying it, hack, centralized point they are using, everyone pulled into it it's not even a great solution i think it's nice they are trying to offer sort of another service on top of what they are doing. i think it doesn't seem like a long-term play for them. it's there's something here we

could tap into if square came up with its own sort of currency based on blockchain, that would be more interesting, i think. >> josh, we had a discussion earlier about some of the board members, david, mary, who know about this, signed off on this those are heavy hitters. lloyd blankfein saying they are intellectually curious about this new possibility what would it take for that debate to be settled the debate about whether or not industry titans were truly going to back something like this? >> you know, i think what's interesting is also following the demand here. if you talk to a lot of millennials and a lot of younger folks who are starting to have money and they are thinking about where to invest, bitcoin is incredibly popular among that group and among them trying to figure out where to invest some of this first money. if you're -- >> just like six months ago. >> and they all still use snapchat even though the company hasn't continued to scale.

so square is trying to follow the trend. i think if you're sitting on the board, you see this as an experiment but also something to serve the customers you already have you know, otherwise they are going to go elsewhere. they are going to coin base, a great block investment and a lot of people are buying and selling through there. >> quickly, if you can, are you aware of any bitcoin fundamentals, like actual things that seem to dictate whether the price goes up or down? >> no fundamentals whatsoever. the only factor i can see, this is a big mystery, how chinese currency is trading against that i think if you're middle class or big investments in china and you want to move your currency out -- >> because of the capital controls. >> this is the way they do i, fueling a big part of the bubble that's the only thing i see right now. >> have you ever used it in a transaction. >> i have not used it in a transaction. >> you're managing editor. >> i'm staying away. i don't see -- the volatility and weirdness of it and i don't know the backing behind it

beyond this promise. >> but you like blockchain, which our colleague josh brown says liking blockchain but not bitcoin is the new reading "playboy" for the articles. >> exactly love the articles, always love the articles. >> maybe it's actually just reading articles, though anyway, josh and thanks to both of you, a topic a lot of people are asking us about. also, don't miss cfo sarah friar on mad money tonight. more on today's moves when t.t cashin joins us in a little bi dow down a third of a percent. we'll be right back. a. a. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome they make your town... well, your town.

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watching ge today, leading the dow up 2 1/4%, no longer below 18 keep in mind the high on monday

a couple of days ago was 2075, a reversal after a long stretch of underperformance meanwhile iphone x production, the production ramp challenge hitting apple's manufacturing partner foxconn. that company's quarterly earnings falling 39%, far worse than expected. plaming construction bottlenecks for profit drop, its biggest in eight years. >> chinese internet giant ten cent, most valuable by market cap profits surging 69% thanks to gaming business, which means popular games like league of legends and honor of kings earlier this month ten cent owner of it snap up a quarter of a percent day. >> daily mail and page six saying evan spiegel and miranda

kerr are expecting their first child. >> ten cent not involved in that at all. >> just theirs dow is down 70 points obviously. we're watching the market get nibbled a little bit a lot more "squawk alley" continues in a moment. no matter how the markets change...

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everybody. i'm sue rememberer, herera house speaker paul ryan appearing on cnbc, says house will not including repealing obama individual mandate as part of the tax reform bill instead they will wait to address it in a conference committee with the senate. >> do we like the individual mandate? of course we don't like the individual mandate right now we're focused on tax reform from the tax side that's the one we're bringing to the floor, worked out with our members. >> cabinet meeting, rouhani criticizing saudi arabia rouhani accusing riyadh without naming the kingdom of begging israel to bomb lebanon here at home treasury secretary mnuchin visiting the bureau of engraving and printing to view

production of the first currency notes bearing their signatures those new notes will be sent to the federal reserve to put into circulation. you're up to date. that's the news update had hour. back to "squawk alley. carl, back to you. >> sue, thank you very much. let's get to seema mody. >> hi, carl, another session for european markets posting seventh straight day of losses this the longest losing streak for broader markets in 13 months it's really weakness in the commodity market that is playing a big role in this drop amid concerns about slowing growth in china. we got that data overnight, min ors among biggest losers, glen core, anglo american, bhp billiton also in the red after international agency lowered it's oil demand forecast, take a look at the biggest decliner in today's trade repsol

now up 2% in the past week, trading at 1.17 again the dollar airbus among stocks bucking downward trend at the dubai air show the aerospace company announcing biggest deal ever selling 430 jets to u.s. private equity firm indigo partners for $250 billion the deal includes aircrafts for carriers like frontier, pulls stakes in both airlines as stock up over 2% private equity server taking a 3% stake in deutsche bank. the buyout firm has 5% in german lender bank fueling speculation it will push for the two german banks to merge these two banks facing challenges so far this year. telling shareholders shifting focus to m&a, tens of millions of debt, two-fifths of value

since disappointing third quarter results. earlier this month, ousted ceo last week. certainly a big story there. carl, sending it back to you. >> seema, thank you very much. markets obviously cooling off a bit off the lows of the morning. we were down 166 or so at the worst of the session still on pace for biggest declines of the month over concerns of falling commodity prices and weaker dollar art cashin, ubs floor operations skroens us here post 9 art, fascinating the way this pattern works in the first couple of hours of trade. >> somewhat frustrating. traders were hoping hold yesterday's lows, lows pull back last thursday. that was s&p, get right through it, down to nearly 2565. now with the double frustration, the support, minor resistance and yet we came back up and went right through the 2566

so nothing seems to be holding its form in the old traders handbook. >> reasons for weakness, we've been through ge color, china slowdown, the impact on high yield, the tax package the flattening curve you've got a favorite? this leg i think is the china problem. seema aptly pointed out through copper and other commodities and given people a little anxiety. it is the second largest economy in the world if that's going to slow down a little bit, particularly with the confusion that we're still having about taxes, so i think that's the crisis or concern du jour, if you would, and see where we go. >> where do you see the tax package playing out in the markets? seeing a lot of commentary about the russell and also bond yields where are you looking for it >> i think divergence between

the russell and indexes more heavily weighted in the multi-nationals tells you what the markets believe about it pressure on the russell indicate to me that people are beginning to have some doubts about whether they could pull this off, get anything through. >> the s&p is up i think just shy of 2% since the beginning of october. since then we have this monster earning season from the likes of apple, alphabet, amazon, singles day fromal alibaba, contributing to sentiment should we take something away we're up just shy of 2% since then >> no. i think that there was a great deal of hope that earnings would continue to boost the market, as it were, but it looks because of things like the divergence you noted that we're going to need better earnings to move things along. we had something like 70%

actually beast estimates they didn't beat them strongly enough the further outlook was not strong enough. that's a real problem. these companies are having difficulty giving because they don't know what the taxes are going to do. might be able to write it off rapidly, what tax rate am i paying they can not just confuse traders here, they might wind up confusing ceos all the way around that's not going to help the economy. >> how is all this squaring with what we know is seasonably a pretty good time for equities going into thanksgiving and christmas? >> seasonally it is. this has been a year that defies seasonal patterns. sally mae go away and give away. many we see before three-day weekends, a lot of things i have

learned over 50 years to look for didn't show up this year right now, as you say, things should be getting reasonably better, particularly going into thanksgiving traditionally it's an upbeat time for the market. doesn't look like it's happening. >> so you could categorically say you don't believe the run-up into the holidays we would historically see, you don't see that playing out this year >> i think it's in doubt the reason being that every other seasonality this year has come up short, so you've got to assume we're slightly off track. the question is unless you see it start to move back in the right direction, you have to be somewhat doubtful of where you're going. >> where does 2017 rank in the years that have stumped art cashin have you seen another like it in recent memory? >> i've seen a couple of years that have stumped me this is high up there. this is follow patterns -- i

guess what we should have done is realize that the first year moving along in the presidency better, again, historically years in a better pattern. negative that's not true this year. >> still got six weeks left. thanks, art. art cashin with the house set to vote on the tax reform proposal, a bit of an awkward moment for white house chief economic adviser gary cohn. white house argued tax cuts would lead to private sector investment the idea got a mixed feeling at the wall street ceos meeting yesterday. watch this. >> can i ask you all a quick question if the tax reform bill goes through, do you plan to increase investment -- your company's capital investment just a show of hands, if the tax reform goes through.

>> why aren't the other hands up why aren't the other hands up? >> the video made the rounds on social media yesterday of that's john bussey. journal talking to cohn hard to tell from the take but appeared a few hands went up. >> feedback on twitter, follow-up should have been are you going to use that for stock buybacks or dividends, which would have been an interest show of hands as well. >> or do you not want going to commit to what you're going to do at all with the truckload of cash coming your way. >> general corporate purposes as they say in filings. >> watch out tesla, general motors putting a big bet on low cost electric cars some details when "squawk alley" tus.rern ♪

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i'm scott walker coming up top of the hour, debate if this is a small dip or start of something bigger. plus jpmorgan's bold call on beatdown retail stock saying it could be last door standing in the group. we'll discuss and debate that. and until now unnoticed piece of the tax plan that many claim will dramatically handcuff stock investors. we'll debate that as well. see you in just a bit. >> see you at the top of the hour, scott. thank you. let's get to cme and get to santelli exchange. hi again, rick. >> good morning, carl. richard pharr, thank you for being my guest this midweek

wednesday morning. >> good seeing you again, rick how are you? >> very good as merion chief market strategist i'm sure over the last three quarters you've heard many advisers, particularly global investor advisers, recommend the european union and the markets there have really been on a tear, although i do think last week the key reversal on the dax probably helped turn global equity markets. what are your thoughts on the eu at this point? >> well, rick, i tend to think it's not a bad call. if you look at what you can can do in the bond market in europe, particularly with european central bank still buying up a ton of corporate debt, you've got at least on the sovereign side negative interest rates out five to seven years. where else are you going to go, rick it does make the case for putting your money in european equities for sure. >> you know, you bring up a

great point, richard you bring up what are basically fundamentals the fundamentals seem to be aligning in such a way that even when they have their 2018 taper they are still going to be buying multiples, money is cheap with interest rates, makes sense. isn't part of the fundamentals being ignored. don't some of the issues have to be cleaned up at some point? >> sure they have to be cleaned up at some point that's the whole argument for why they are keeping rates negative and why they are buying corporate bonds. what they are doing is extend and pretend, push debt out as far as you can push it out if that's not far enough you push it out more rick, basically the question you're asking is when does the bell toll. the bell doesn't toll until the european central bank tells you it's going to toll right now the game is still on. >> you know, you bring up -- awesome. these are all awesome points whether it's nasdaq six months

before tech wreck which doubled in price from 2600 to basically 5,000, investors, they might know there's an end to the train ride but they like riding it as long as possible, which reminds me of something jon fortt just asked about fundamentals but wasn't the european union or negative interest rates, it was bitcoin. personally i don't care how many exchanges are listed, i still think one of the guests said millennials love investing in bitcoin. i'm not sure i get it. 16 1/2 billion bitcoins, 21 million is the cap if we think it's crazy now, my guess is closer to 21 million the crazier it gets. any bets on why millennials should be careful. >> if central banks are going to taper and we're going to get money out of the system, fiat money replacements such as gold should have meaningful downside. now, with bit ounsel, it's not even shiny, you can't wear it, so i would be concerned here for

sure again, you've heard jamie dimon and others talking about it and it seems to go up. these things pop when they pop right now it's not popping. >> listen, when things go up, it looks like an easy one to handicap like in, i don't care how many contracts are listed, it has scarcity, utility, supply and demand issues. beyond that big question marks riddle me that richard farr, thank you. jon fortt, it was a great question, buddy. i don't think you had a very sufficient answer on the fundamentals of bitcoin. >> yeah. i'm glad that i tickled your curiosity as well. we'll continue to watch it maybe someday somebody will figure out what's fundamentally driving bitcoin. rick santelli, thanks as always. coming up shares of boingo wireless rallying in the session. the stock already up 90% this year we're going to get more on what's really behind this rally when the ceo joins us next plus taking a look at shares of

target plummeting after issuing a weak holiday guidance. "squawk le wl rht baaly"ilbeig

joining us now boingo wireless ceo dave hagan welcome to post 9. >> thank you good to be here. >> tell us about the strategy to diversify from airports. what inning are you in >> our strategy is still around airports but other types of large venues so our strategy is to get wireless rights at large public venues in addition to airports, as you mentioned, stadiums and arenas, we're on military bases. anywhere you have a large number of people congregating, networks have stress. building networks licensed spectrum or cellular and wi-fi. >> how long-term a contract are you able to get in some of these venues. >> typically 10 plus years. >> that's pretty long. >> long-term contracts, really a platform business. once we get the contract we work with carrier partners so the big four wireless carriers, we build licensed spectrum for them so licensed networks for them in

addition to wi-fi. most people know us as a wi-fi company. we're increasingly doing cell with the carriers. >> your critics with egg on their face this year say you're not pursuing 60 million worth in 2017 did you more a year ago. what do you say to that criticism? >> well, i think you'll see -- i think you're talking about the amount of capital that we've about deploying each of the last few years. >> right. >> 2017 will be slightly down from the last several years and 2018 will be right back up again. there's a bit of a timing lag when we sign the contracts to when we can actually build and deploy the networks which is deploying the capital. it's not a long-term trend by any means. 2018 will be incredibly strong for the company. >> how do you think the consumer feels about, quote, free wi-fi in. >> they love free wi-fi. >> have you acceptsed any

concerns on hacking and being told not to use a certain app in a public wi-fi seting? >> typically consumers love free wi-fi and that's why we've had to transform our by. we were were in the pay business and we still do that, but increasing lit way people get access to the networks is some method of free watch the advertisement and get online for free and also because one of our carrier partners automatically has their phone connected on to our network and everything that the user does at that point is free on the network. consumers love free. we always advise people if they are connecting with a laptop that they should use a virtual private network, a vpn network to make sure they are secure in a public space increasingly you'll see our telecom partners with carrier off loads, like a cellular network, seems like a cellular network so wi-fi and cellular services are becoming converged. >> we ask all ceos these days about tax reform and the

prospects for tax reform and the impact it will have on your bottom line. curious how you're viewing it and what investments are changing or potentially changing with that looming in the distance in. >> for us we're not yet net income profitable so we're investing heavily in growth and network so we're not in a tax-paying state at this moment, but over the longer term certainly any constructive tax breaks for businesses that encourage investment should stimulate the economy. >> one more. do you care in become buys qualcomm those are both big wireless suppliers. is that going to make a difference to your bottom line >> no impact on us. >> back on taxes, your effective taxes is 2.9%. i believe you paid $500 buck in taxes. >> we're not net income positive. >> when does that change >> that's something investors will be watching very positive as soon as you are you'll be hit with a very high tax rate comparativity. >> we expect to start become net income positive 2019, 2020 time

frame so we've got a couple years. >> probably would rather have it be like that. >> make money, pay taxes >> it's interesting because, you know, we could actually get there faster if we deployed less capital so we're in growth mode and there's so much building of networks that is required to de-stress the cellular networks so it's actually a great time for us to keep investing capital into the market, investing capital into wireless infrastructure and net income will come, and when it comes it will be even bigger than it would be if we pull back now. >> we know that rural broadband and a lot of other initiatives are priorities for the administration i'm sure you'll get a piece of that appreciate, it dave hagan. dave haigan of boingo wireless. >> why shotted short seller jim chanos tnkhis elon musk is out as ceo of tesla. "squawk alley" will be right back

noted short seller jim chanos continues to add short position against tesla despite stock being up 44% this year speaking at reuters outlook summit yesterday, he says tesla ticks all the boxes of a company worthy of short selling. if you wouldn't be short a multi-billion dollar loss-making

enterprise in a company with a questionable balance sheet run by a ceo with a questionable relationship with the truth, what else would you have let's get to hampton pearson for breaking news. >> the head of the cfpb richard cordray said it's his intention to resign as hayt head of that office by the end of the month there's an extended letter here, talking about the accomplishment of the agency on his watch as i said many times before, but i feel as much today as ever before, it's been the joy of my life to have the opportunity to serve our country as the first director of the consumer bureau by working alongside with all of you here, but, again, the bottom line in the headline in all of this, i've now told the senior leadership of the administration of presumably of congress that i expect to step down from my

position before the end of the month. back to you. >> hampton pearson, thanks very much a lot of speculation about whether he would run for governor of ohio something he refused to talk about the last time he was on our show. >> one of the ohio supreme court justices said when he got into the race that he would back out of the race if cordray were to get in, so we're still awaiting any potential announcement there. for the last six weeks, people in the financial industry have been seeing stacks of cfpb resumes, largely expected, and a couple weeks throwing was a bill-signing in the oval office for the rollback of the cfpb's very controversial arbitration rule where it evolved no a venting session about cordray with the president asking the advice of several of the banking loibs, what do i do? i don't want him to be there, but i don't want to fire him and make him a martyr for the left as he's about to run for governor of a swing state. a very big dilemma for president, and it seems like he decided not to fire him and decided to let him resign of his

own volition and see what he decides to do from here. >> between this move and some of of the rollback of restrictions on banks earlier in the week, decent week news-wise for financials though it may be hasn't played out that way in stocks. >> we'll see who the administration chooses to put in place of that agency because we've heard from these companies, the biggest changes they are seeing is personnel, and that's the tonal shift that they are getting on the regulatory front as they await more long-term legislative forecastses to be put in place. >> meanwhile, it's going to be an interesting night of earnings, sysco after the bell, lb as well. >> and it's a difficult market technology-wise to be trading ahead of the earnings. we see nvidia down about 2% at this hour and tarullo also down. techs in the green, including groupon. we just had boingo on and roku continues to be i mean as volatile as bitcoin but moving

in a positive direction today. >> the phone lines definitely lit up when it came to questions about bitcoin's fundamentals and whether they exist i guess we'll have that conversation for a while, right? >> somebody said adoption is the fundamental driver of bitcoin. >> that's true. >> it's scarey >> yeah. >> let's get over to the judge an "the half." welcome to "the halftime report." i'm scott wapner stocks bouncing off what was shaping up tonight worst day for the s&p in three months. now the question is this pullback the start of something more ominous for stocks at the beginning of a bigger rollover with us today, joe terranova, jim lebenthal, jon najarian and karen firestone. once again, as you can see there, stocks pullck