cuba, who have suffered potential brain injury attacks you can see how those two things might go together if you're -- he's a big star. powerlunch.cnbc.com. in the field hope you enjoy reading it. >> great story 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. >> i'm bill griffeth major overhaul of obama-era changes announced. the fcc unveiled its proposal for new net neutrality rules and the fallout for companies like comcast, verizon, netflix, google they're all massive. the details coming up shortly here. we also have stocks hitting all-time highs today is the rally getting overextended five stocks significantly outperforming their long-term.

after the bell, here we go again. earnings it's game on salesforce hp hewlett-packard enterprises. guess. and gamestop all reporting tonight. we'll tell you what to expect. a debate on whether gamestop can capitalize on the video game movement that stock has suffered mightily. >> a yield of -- >> 9.25% right now unbelievable. let's start with today's market rally all four major averages are in record territory the s&p crossed 2,600 for the first time today joining our "closing bell" exchange, david kelly from jp morgan funds peter costa from empire executions is at post 9. rick santelli is at the cme in chicago. peter, the engine keeps chugging along here. >> oh, my god. it's almost unbelievable to -- today, this was a little unexpected i think we did have positive data this morning.

to see the market open up 150 points without batting an eye and continuing to stay strong, you know, it's -- there's a confluence of really good things good earnings, low interest rates, even with the rate hike next week, next month, wherever it is. i mean, you've got a really good for stocks do i think they're overpriced? absolutely i thought they were overpriced in january look where we are. i don't know if overpriced is really an issue anymore. i think it's a meratter of, you know, what's going to stop it, is there anything out there that can actually stop the market and to me, i don't think there's anything, you know, within the next couple of months we're going to see that's going to slow it down we'll probably have some hiccups. i don't see anything out there that's really going to slow it down. >> david, do you think we're overpriced or strong earnings, revenue growth we've been seeing lately justify where the market is >> i think we're a bit overpriced we're pricing if a lot of optimism here. if you want to think about why is the market going up, i think the real, the key thing to focus

on is not so much why people are piling in, it's why people aren't piling out. if it was an index of investor inertia here, think about it, you got enormous embedded capital games, don't have anywhere good to go to in terms of fixed income or cash or alternative assets and the vix is very low. you don't have the volatility that normally scares people into a poomove any money going in is pushing this market higher it's a funny word to use we may have a durable bubble, where the market can move up to higher valuations which are getting a little unhinged from the fundamentals but could keep on going because it's very hard to get out this market. >> and, yes, while that's happeni happening, the vix, the fear indicator has fallen below ten today as well. rick, it's just hatppening in slow motion here the yield curve continues to flat l the 2s at 177, 178 the ten down to 236. it doesn't take a huge mathematician to figure out the spread there is continuing to

narrow here. >> reporter: absolutely. i mean, the ten year's treading water. the 30-year slowly every day seems to submerge a little deeper under water and everything aligns. yeah, 30s to 5s just in the last five trading days, bill, flattened 13 basis points. you know, yield curves are supposed to be a couple basis points a week when they're busy. these are big ploouf moves andt necessarily the idea we're going to have a flat kufcurve. it's what investors think about. i tell you what, look at where zem seven years and ten years are, they're nine basis points apart. of course that makes sense they're close maturitmaturity with all the scrutiny on the yield curve, there may come a time in the next six, eight, ten weeks where you see slight versions, light 7 s to 10s i wouldn't put a lot of faith that it's foretelling something. it doesn't matter what i think it's what investors think. when that happens, they end up putting more scrutiny in the notion of the bigger part of the curve flattening or inverting.

these are going to be important to pay attention to. ultimately wren if comes to stocks, not only do they look green lighted i think you ain't seen nothing yet if we pass the tax plan, i think you might see turbo therusters. how many times have we seen markets reprice and reprice things we thought were priced in many times over? h. >> yeah. >> so i think it's all green lights >> wow. >> david -- >> rick santelli, let's float this here. pulling a jeremy siegel all of a sudden on us that's amazing. >> jeremy sounded more cautious than that yesterday. >> yes, i know, right? >> david kelly, i was going to go back to what you said about this being a durable bubble, ask where the bubble is outside of shares of tesla, netflix, some of those specifically high-valued ones where's the bubble >> i think the bubble is gradually growing. this is kind of like a turkey that you leave in the oven too long here, gradually overcooking here what you can see, you can see overall stock -- you know, p/e

ratios running 18 times, above that now, which is high relative to the last 25 years you can see it in other places things like home prices. look at the existing home prices this morning the home prices keep on going up and up and up. bitcoin. the fact somebody spent 50% -- >> bitcoin is completely different. these are all completely different topics >> no, well, i know. what we're seeing is a lot of liquidity looking for a home and not being -- >> not in the stock market, is it >> no, but -- no, but there are areas in the stock market where you're seeing, you know, as i said, overall over 18 times earnings compared to a 25-year average of 16 times. you look at this tax bill, i do think that it will -- it will help corporate profits somewhat. it's not a huge game changer it is on borrowed money. so eventually it's going to have to be repaid i just think we're sort of gradually building on a lot of fronts here. there's no obvious bubble here but i think overall everything is getting a little bit overpriced. >> i'm picturing this bull market turning into a dry turkey

now according to david kelly >> won't get into it >> dry turkey's better than no meal at all. >> true. >> hey, there you go wise words we'll end on right there. thanks, guys see you later. breaking news we need to get to right now that comes regarding under armour morgan brennan stepping in witht footwear chief peter ruppe will depart series of senior executive departure at the sportswear company as it's struggling with growing sales of its apparel and sne sneakers this report coming from dow jones. peter ruppe will be succeeded b ryan drew who previously served as general manager of under armour's basketball division this the latest departure of an under armour executive others include the company's co-founder, also chief marketing officer and head of women's youth and sport fashion divisions. they have all left since octo r october, so shares of under

armour now down about 4% today they're down 55% for this year back over to you. >> wow big move already today now it's exacerbated morgan, thank you. footwe footwearwe footwear, incredibly -- they had misses with the steph curry shoes. don't know if that has anything to do with it. the fcc e limb fl-- julia b with the latest on the fcc proposal l, how a rule rollback on net neutrality could affect that sector. julia? >> reporter: bill, fcc chairman pi revealing his plan to -- equal access to the internet and prevent internet providers from charging fees or treating content differently. pi's proposal gives internet providers more flexibility in how they charge for services and may be able to prioritize certain traffic. the proposal, though, does require transparency about those practices. and it restores the federal

trade commission's oversight the ftc will monitor internet provi providers. "under my proposal the federal government will stop micromanaging the internet instead the fcc would simply require internet service providers to be transparent about their practices so that consumers can buy the service plan that's best for them. these changes would benefit the internet and telecom company including verizon, nbc parent comcast, charter and at&t. verizon saying, "we're very encouraged by chairman pai's announcement today that the fcc will move forward next month to restore the successful light touch regulatory framework for internet services. but technology companies such as netflix, youtube, facebook and twitter, could suffer from potentially higher fees or slower streams they have spoken reversal. the proposal is expected to be approved at the fcc's open meeting on december 14th back over to you. >> they are moving swiftly leer. thank you, julia.

the department of justice suing at&t, meanwhile, to block its $85 million purchase of time warner in one of the biggest antitrust cases to hit washington in decades. leslie picker has the latest on this case with other companies that could be targets, too >> heying ke, kelly, at&t lookio head to court throwing into question vertical integration or mergers along the supply chain rather than those between competitors. in at least 40 years the government has not successfully blocked one vertical transaction. at&t's ceo randall stephenson said in a press conference yesterday that just the lawsuit, alone, has created a chilling effect in the m&a market >> this lawsuit has the whole world questioning what they will, can and cannot do. this throws a huge degree of uncertainty to anybody contemplating joint ventures, anybody contemplating m&a. and that's one of the key concerns about this. to take suddenly without any

notice and just upturn 50 years of precedent on a transaction like this can have nothing but a freezing effect on commerce in general. >> and this is affecting dealing that have been signed, too investors i spoke to are watching the pending mergers between united technologies and rockwell collins as well as that of buyer and monsanto. both of those deals have aspects of vertal integration and if the doj wins its case, that could be problematic for those deals as well we reached out to the four companies for comment but have not heard back yet, guys >> all right, leslie, thank you. let's talk more about this what impact this could have on other media companies and whether, in fact, at&t and time warner could win in court against the doj. jonathan chaplain from newsstreet research is with us, so is tom egan jonathan, you read the complaint. i mean, you call it a weak argument by the government why? >> so before when we were hearing stories of the doj was

gearing up to block the deal, we didn't know what they had up their sleeve was there some document that they had acquired that demonstrated an intent to harm consumers once the deal had closed and, you know, now that we've read the complaint, we've seen the presentation from delrahim it really looks pretty weak. there's no smoking gun in there. there was no strong evidence presented of consumer harm where we were before, which is at 80% odds at&t wins in court. >> tom, would you agree? intere interesting, seems to be the case people have to potentially put deals on ice while this whole process plays out, right >> i think that's right. to us, there's real collateral damage here because it does make it hard, for example, for comcast to make a bid for the fox assets because that would be a vertical merger, too >> i think that's true, but i think this is also going to be wrapped up pretty quickly. the doj said they've got no

interest in holding up the process. i think at&t will file for an accelerated review by monday at the latest would be our guess. and this could all be wrapped up within three, four homonths it's true for the next three, four months while we're waiting to see what happens in this case, it's difficult for anybody else to sort of move ahead with a deal i think we'll be back to business as normal by the -- by the time spring rolls around >> jonathan, some of the arguments put out there by the government, it would depress innovation of distribution it would raise competitors' costs and, therefore, customer prices would go up first of all, you don't think that's true? or you don't think it's a strong enough argument to kill this deal >> so, they didn't present any evidence of thos factors. that was their statement the evidence they gave was really, really odd there was a statement by an executive saying that their

content was must-have and anyone who didn't have it would be in trouble. we've heard exactly the opposite from some of the opponents of this deal saying, turner content isn't what it used to be, it's not must-have content anymore. so the statements like that just don't provide evidence of the harm that the justice department is alleging here >> tom, i also wonder how the net neutrality move fits into all of this, so if you have the fcc moving, meantime, to embolden at&t and the likes of those internet delivery companies to be able to charge netflix, for example, and just kind of be free to price the internet how they see fit, how would that affect the thinking about what happens if at&t then acquires time warner >> well, i guess if anything, that does probably support the doj's argument because that would give at&t that much more leverage over pricing. to the point before about, you know, what this means, i think the doj was concerned about structural versus behavioral

remedies so they weren't so happy with what happened before. you know, when comcast bought nbc. they didn't feel as though the behavioral remedies were actually followed. that's why they think they're focused on remedies that are more structural. >> tom, what do you think that the argument should be by at&t and time warner? in if they go to court, which looks like they're going to tdo anyway. >> yeah. what we've already seen, with directv now, they're offering pretty low prices so if what they've done so far is any example, i think that is pretty clear. >> and tom, or jonathan, i'm sorry, before we go, the share price reaction across all the internet delivery stocks, if you will, today, is not that major verizon is even down despite this move on net neutrality happening at the same time why do you think that is >> because i don't think it has that big of an impact on their businesses directly. i don't think that verizon's about to charge netflix more for carriage on its network. i think if they did something like that, and really started

impacting netflix's business, it'd almost be guaranteed to result in some kind of a consumer and/or regulatory backlash the benefit of simplifying the regulation is really sort of removing an overhang and removing uncertainty around verizon and comcast, at&t, the internet service providers' businesses >> and at&t lower, sprint lower, t-mobile a little higher quickly, tom. >> isn't new news. we know this has been about to happen for a while now. >> yeah, fair point. >> all right, gentlemen, thank you both, john than chaplain, tom egan, thank you for the thoughts on that important story. >> so many moving pieces. >> yes, there are. >> holy moly. >> what happened to the quiet times we used to have at the holidays not happening. very strong rally today with about 444 minutes left in the trading session. all the major averages have been in record territory today. president trump, meanwhile, has rocked trade relations with his stance on nafta, of course, but a fifth round of trade talks

have come to an end today. up next, where the talks stand as the year-end deadline to reword the deal approaches. video game stocks have been soaring of late. gamestop failed to post earnings growth over the past couple quarters up ahead, a bull and bear debate on the video game retailer zbrmplts we want to hear from you, reach out to the show. you have twitter, facebook, or send us an e-mail. closingbell@nbcuni.com you're watching cnbc, first in business worldwide get elected by talking tough on the national debt? 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.

as we mentioned, negotiators from the u.s., canada, and mexico squared off today as the fifth round of nafta trade talks wrapped up kayla tausche is in washington with more. kayla? >> is bill, officials were calling this round of nafta negotiators approach the fifth time arguing, but this round has provided decidedly less drama than the prior rounds for a few reasons. first, the top trade representatives from each country aren't at the table and won't reconvene until january. so the teams on the ground in mexico city are dealing in the nitty-gritty rather than the broadsides coming from each of their leaders.

second, the white house is withholding any hardline action on trade to preserve republican votes on tax reform. and finally, some of those previously contentious proposals tabled by the white house like a demand the deal expire in five years are now being met with some potential workarounds from countries like plaxiex mexico p alternatives on the table and might no longer be deal breakers the u.s. business community is ramping up its warnings to the trump administration about the business effect of putting the deal at risk the u.s. chamber of commerce releasing data showing swing states like michigan, wisconsin, and arizona have an outsized dependence on exports to mexico and canada, some cases around or more than 50% of exports from those states while the fireworks might be on hold this round, talks will now go through the end of march and the commerce secretary for the u.s. said they remain on a very short time fuse with mexico's general election and the u.s.

midterms approaching analysts from barclays say if they drag on too long, they could get suspended all together. >> that was my question, kelly front-runner for mexico's presidential election last year, ovodor, i think it is, has made his displeasure clear that these negotiations even happen now given that he may come in and, i don't know, may have a very different idea about things. >> right that's why none of the three parties wants this to get close to those elections and from the u.s. standpoint they don't want it to be a factor in midterm campaigns either so they want this to be done and dusted and fully wrapped up by the time any of these candidates begins campaigning but as we think about this going into 2018, it's getting closer and closer. kelly, analysts from the street are saying it's hard to see how a clean deal gets agreed given all of those events out in the

distance >> i just keep thinking about something wilbur ross said at the new york stock exchange a few weeks ago, he said the u.s. is asking their trade partners to make these concessions when they have nothing to offer in return you know it's pretty tough out there. kayla, thanks very much. see you later. >> for more on how small businessowners are being impacted by the nafta renegotiations, let's send it over to kate rogers who's outside minneapolis. brr. with that story. kate >> reporter: hey, there, kelly that's right small manufacturers are closely watching all of these nafta renegotiation talks. the owner of this business says her biggest concern is simply the unknown. here they manufacture custom parts for gig companies like john deere and bobcat they then export to canada and mexico making up about 10% of their business >> my biggest concern as an owner is not knowing the impact to us and then how is that going to affect our end customer i don't understand how the

negotiations is going to affect us, but i do know that shipping to mexico or canada, our customers are not going to take a price increase. >> reporter: carrie hansen said she's not overly confident in in the administration's ability to overhaul the decades-old trade deal she's hopeful they'll take it to consideration, what it might mean for a small company like hers nonpartisan groups like the national small business association say they're generally there support of free trade agreements including nafta and only 5% of their memberships say they're negatively impacted by free trade. all of this, we have to remember spla small companies are a powerful force. as of 2015, 98% of the companies that exported goods from the u.s. had 500 employees or less guys, back over to you >> i guess they just have to do business as usual until they hear otherwise, kate, right? >> reporter: yeah, absolutely. she says they're already trying to control some potential price increases but you heard her, she

said her partners in canada and mexico aren't going to accept a price increase and they're just one piece in this puzzle they're manufacturing for bigger companies. there's a lot to take into consideration here and could have a big impact on a small company like this one. >> indeed. kate rogers in minnesota thanks very much and 35 minutes to go back here what a session we have on our hands. although the dow is off the highs. we're up about 180 earlier we are up 154 right now. strong gains from the open s&p up 16. nasdaq 12% ga% gain up 16 the russell could finally close at a record if it's over 1,512. facebook, amazon, netflix, alphabet, all trading higher today. hey, they're supposed to be the ones hit by net neutrality we're going to head uptown to the nasdaq and see if it can close at an all-time high. meanwhile it's the first asian technology firm to crack the $500 billion valuation mark. if you're thinking alibaba, you might want to guess again.

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so, you know -- > [ inaudible question ] i'll be letting you know next week i can tell you, you don't need somebody who's soft on crime like jones >> do you not believe the accuser? >> what is your message to -- zmch [ inaudible talking about sexual misconduct. you've had your own allegations against you. what do you say to women >> let me just tell you, roy moore denies it. that's all i can say he denies it and by the way, he totally denies it. go ahead >> mr. president, what is your message to women this is a pivotal moment in our nation's history >> women are very special. i think it's a very special time because a lot of things are coming out and i think that's good for our society. and i think it's very, very good for women. and i'm very happy a lot of these things are coming out. >> do you accuse -- >> i'm very happy -- >> do you believe the accusers >> i'm very happy it's being exposed.

[ inaudible look i don't want to speak to al franken. i don't know i just heard about conyers two minutes ago. as far as franken's concerned, he's going to have to speak for himself. i'd rather have him speak for himself. [ inaudible question ] what we had a great call with president putin. we're talking about peace in syria. very important we're talking about north korea. we had a call that lasted almost an hour and a half we just put out a release on the call, but we're talking very strongly about bringing peace to syria. we're talking very strongly about north korea. and ukraine. >> should assad go should assad go? [ inaudible question ] >> can't hear you. louder >> the at&t/time warner merger. >> well, i'm not going to get involved in litigation, but personally i've always felt that was a deal that's not good for the country. i think your pricing's going to go up. i don't think it's a good deal for the country.

i'm not going to get involved. it's litigation. >> mr. president, should assad go should assad go? >> have a very great thanksgiving. >> should assad go should assad go? [ inaudible question ] >> well, he denies, roy moore denies -- >> what about the women? what about the nine women? >> by the way, he did say total denial i do have to say, 40 years is a long time. he's won eight races and this has never come up so 40 years is a long time. the women are trump voters most of them are trump voters. all you can do is you have to do what you have to do. he totally denies it >> what about the nine women, mr. president? the "washington post" went to them >> mr. president, do you believe congress should release the names of lawmakers who have settled on sexual harassment claims >> i do. i really do. i think they should. thank you. have a great thanksgiving. >> should assad go should assad go? >> the president there, that was a few minutes ago, as the trump

family there gets ready to board marine one as they head to mar-a-lago, their estate in flori florida, for the thanksgiving holidays eamon javers was out there as well and lot of things to talk about. business wise. he weighed in on the time warner/at&t merger, eamon, and said it's not good for the country. >> reporter: that's right. i had the opportunity to ask the question to the president out there by marine one. wasn't sure whether he would weigh in or not. people here at the white house are sensitive to the fact they don't want the president to be seen as putting his thumb on the scales of justice here the president did say i'm not going to get involved in litigation, personally i've always felt that's not a deal that's good for the country. then he reemphasized, sooim ni' going to get involved. allows the president to make his comment and emphasize the presidential staff wants him to emphasize, he's not playing any official role in the department of justice decision to take stops to block that merger so that was an important point from the president there

you also heard him engaging in pure politics talking about the alabama senate race where roy moore has come under accusations by a number of women of inappropriate sexual behavior. you heard the president there saying that he doesn't think that the democrat in that case, in that state, should win the election he said the democrat is soft on crime. in effect, endorsing roy moore without using those words there. the president saying that roy moore has denied the allegations against him. you have to believe him, too, he was asked a number of times what about the women, sir, what about the women? the president said, women are special, and this is a very special time because a lot of information is coming out. he said he thinks that is good for society, but nonetheless, he appears to be standing by roy moore on the issue of senator al franken who's faced other accusations of sexual impropriety in recent days the president said that he wasn't going to get involved in that case, he said al franken is going to have to speak for himself. back over to you. >> all right, eamon, thanks very much eamon javers there outside the

white house. let's check on some of the other movers in today's market action dsw falling today. after an earnings and revenue miss that was reported this morning. and an unexpected decline in comparable store sales the shoe retailer says its sales were negatively impacted by the hurricanes in that quarter the stock down 13% another stock affected by the hurricanes, campbell's soup. that stock sinking after a revenue and earnings miss also reported this morning. campbell's said its quarterly performance was affected by higher costs for logistics, transportation, and carrots. following those storms and campbell's soup is down 8.25% right now. now we have breaking news on the disney company julia boorstin stepping in with details on that. julia? >> bill, john lasiter, well known as the founder of pixar, one of the founders of pixar, is taking a leave of absence from pixar which is, of course, owned by disney amid, quote, missteps.

this first reported by the "hollywood reporter. "hollywood reporter" has obtained a memo from lasseter to pixar employees saying "this kind of creative culture takes consta consta consta constant -- he goes on to say i especially want to apologize to anyone who's ever been on the receiving end of an unwanted hug or any other gesture they felt crossed the line if will teleway, shape or form no matter how benign my intent, everyone has the rightboundarie them respected." we have reached o eed out to dy about this leave of absence from pixar. we have not heard back from disney yet this has been reported by the "hollywood reporter. pixar has been such a valuable engine for disney. lasseter also oversees other parts of disney animation studios. he's sort of become the face of disney animation, and, you know, driving that to greet success with "moana" and a big pixar

film cowellcalled "coco" debutin u.s. theaters tomorrow back over to you. >> getting some good reviews, "coco. time for a cnbc news update, let's get over to sue herera >> thank you, guys here's has happening at this hour, everyone, charlie rose out of a job cbs and pbs both terminated their relationships with the longtime host and anchor after eight women came forward claiming he made unwanted sexual advances toward them rose has apologized but also said not all of those accusations are true a specialized u.s. navy ship is joining the search for a missing argentine submarine and her crew the u.s. ship has remotely operated vehicles that are capable of rescuing people from submerged subs. get ready to pay more for the drive home this holiday. despite a recent move lower. thanksgiving gas prices will be at a three-year high with the national average holding steady at $2.79 a

gallon. and a pair of glasses, a pack of cigarettes, and several diaries are just a few of the nearly 100 items recovered by berlin police that once belonged to legendary beatles rocker john lennon they were stolen more than ten years ago from lennon's widow yoko ono one of the diaries included an entry from the day that lennon was murdered that is the news update this hour i will send it back downtown to you guys. >> what a found. wow. >> they've been looking for it for a long, long time. it's been at least ten years, but they managed to track it down >> nice going. >> yep >> nice going. thank you, sue see you later. the nasdaq is setting a record intraday high once again today. up nearly 1% 66 points higher bertha coombs has a look at the stocks driving it up there. >> once again, it's really big cap tech stocks here earlier today, we saw small caps in the lead, although the russell 2000 on pace to close at

an all-time closing high here taking out that early october number and chip stocks on pace for an all-time closing high as well. that's a huge thing to say about the philadelphia semiconductor ind index, if you were around back in the year 2000 what a huge round trip that this has been today led by the likes of marvell at new highs all-time highs, again, for micron, lam research and texas instruments on pace for an all-time closing high. finally taking out that y2k high others, dollar tree, paypal and marriott as well back to you. >> even with marriott and airbnb fighting like day are. >> exactly. >> thank you, bertha so stocks soaring this year. is the rally getting overextended, he asked we're going to take a look at some stocks that could really be overexteed ybready to cool off. when we come back. at fidelity, trades are now just $4.95.

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that means for the media landscape. but first, what do micron, paypal and michael kors all have in common? the link and what it could mean for your portfolio is next [ keyboard clacking ] [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours.

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as you may know, the s&p 500 has posted a gain of more than 15% so far this year that has rewarded some investors more than others to say the least. dom chu has a look at what stocks have popped, dropped and are most extended in the market right now. dom? >> all right so, bill, kelly, we took a look at the s&p 500 stocks trading the most above or the most below their long-term average price. something traders call the 200 day moving average so we look for momentum and here's where we found it if you take a look at those stocks in the s&p that have the most upside momentum, ones trading most extended above their 200 day average price, you got the red hot home builders

out there, dr horton up 36% above that level retailer michael kors on the luxury side of thing, 38% above where it normally trades over the last 200 days. paypal, 41% above it that red hot semiconductor business, 45% for nvidia and micron 53% not all good news, though, the real downside momentum on the extended side of things has come from some of these stocks. check these names out, chipotle, 27% below its long-term average price. under armour 30%electric, 32%. no surprise there. century link, 34% below. newell brands 40%. that's the tip of the iceberg. the rest of the list is on cnbc.com we tweet eed out a link. check out the stocks more that are up and down extended guys, back over to you. >> one way to look at. >> thanks, dom. 14 minutes to go

dow hanging on to a gain of 155 right now. s&p up 16. nasdaq up 1% 67 points today. the russell is up 13. >> i noticed a clock if the lower right hand corner of the screen there, until the closing bell ever seen that before? >> we can read that. >> 13 minutes to go. who knew. up next, we have a debate on gamestop's performance strategy and how to play the stock ahead of those results after this >> never noticed that. let's begin. yes or no?

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art cashin just stopped by and told us the market on close orders show, $1 billion, "b,". we'll see whether there are some sellers lying in the weeds waiting for them, all those buyers we'll see what happens here. how about gamestop shares up slightly as we await their earnings after the bell today. the video game retailer faces pretty fierce competition. especially online. from amazon, also from big box stores is it a good time to buy gamestop >> so we have a bull and a bear. our bull on gamestop is none other than john, chief macro strategist at gfi group. our bear is joseph feldman, senior managing director at telzi advisory group one thing that we noticed here,

i mean, the stock's been down for a long time. >> yeah, it's been trending down. >> the yield have you seen the yield? >> 10% yep. >> 9.25%, actually >> really? >> yep. >> isn't that a red flag for you? >> well, i mean, it has been -- it has been trending down quite a bit. you know, everybody's betting right that it's going to be the next blockbuster, so that's really where the shorts are coming from. the short interest is 15% on the stocks. >> wow. >> a huge short interest today we're expecting probably 15% move after the earnings, plus or minus. you know, depending on how they comp again, it's a cyclical business. a lot of games just came out christmas is coming. big consoles, right, we have the nintendo switch, xbox coming out with a new platform, not to mention we were talking about the ico that's come out to trade virtual assets like skins. >> okay. >> for your commandos when you're playing world of war craft. >> there's coin offering. >> yes. >> sort of just a phantom way of raising money basically where

for trading video game skins >> for trading virtual assets, virtual goods. >> this is going to help gamestop's earnings somehow? >> there's $50 billion traded on this platform between gamers worldwide. in h the united states -- 400 million people online trading -- trading -- how is -- well, i think, again, we go back to the list, right? not only does gamestop have a list of what consoles and hardware everybody has, they know what the upgrade cycle looks like >> okay. >> so they could actually tap into this virtual reality business. >> joe, he's giving you an awful lot to work with here. why are you bearish on gamestop? >> well, i think strategically, they're doing a lot of good things as we just heard, the issue is the execution of that and the shift toward digital is happening a little faster. they're trying to reposition themselves to be more of a collectibles business as well as having at&t stores, mobile phone stores which are kind of just a replacement the cycle. they're seeing the writing on the wall as well

and the big part of their business has always been the used business, trade-in value. they have not been able to make that up with the digital side. perhaps they could play within the space, but while they might get a short-term pop out of the earnings out of today if the comp comes in better and could be a quick trade and the cycle is lining up decent for the holiday season and we've heard that from best buy and target, good numbers about video games, but the longer-term thesis here, it starts to fall apart. it's like it's maybe a short trade, it's not necessarily a buy and hold >> okay. is this just a trade for you, john >> yeah. i think it depends, again, right, the ceo has a lot to do with this. he's an original ceo i think that he really needs to, again, pull the right levers to get into this digital reality. but i think really if he doesn't get that done, probably go ing to look for another ceo in 2018. >> joe, do you see prospects for gamestop going more virtual here >> i think they've been trying to go more virtual and trying to

participate within that. it's a lot harder when, you know, if somebody has a divide -- a platform at home and can simply download the game, i mean, i think the latest destiny game, you know, 50% of their initial sales were digital you know, whereas a year ago, it was around 25%, 30% digital. and so right out of the bat, that's one year we've seen that doubling that's been the problem for gamestop >> is all right. >> i think the big thing, again, with downloading digital things and also, again, with the ico, is to -- the hacking, right, is a major factor also to get the hardware, you actually have to go into the physical store, right, you can't download an xbox or a switch or something like that. so i think that's really kind of what they have to concentrate on going forward. >> john, joe thank you both. >> thank you. >> we'll get the gamestop numbers at the top of the hour. in the meantime, let's get back to julia boorstin with more breaking news on disney. julia? >> yes, bill, i reported john lasseter taking a leave of

absence because of missteps, unspecified missteps, what he called painful conversations a disney spokesman weighing in "we're committed to maintaining an environment in which all employees are respected and empowered to do their great work we appreciate john's candor and sincere apology and fully support his sabbatical." of course, lasseter is head of disney animation, fpixar set to release "coco" tomorrow ahead of the thanksgiving weekend lasseter best known as a co-founder of pixar which has been a real driver of growth at disney studios lasseter to remind you there what he said in his memo to employees, wanted to apologize to anyone who was on the end of an unwanted hug or gesture that they feel crossed the line julia, thank you we're going to head to the close. 4 1/2 minutes left there the hseiog ssn. weave the closing countdown coming your way right after this

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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 90 seconds left in the trading session here seema mody with me on the trading floor. this is a pretty powerful rally from the get-go this morning there was no question we were going to see some records today. here's what the dow has done all day. >> and a 67 record high for the nasdaq stick with what's working. that seems to be the strategy deployed by workers ahead of

thanksgiving broader tech sector up 40% this year compared to the 16% climb in the s&p 500 you have apple and microsoft also helping not just the nasdaq but the dow as well. >> and i was just going to show the best and worst performer in the dow today. what we might call beauty and the beast. you see what i did there apple continues its rally of the year and ge continues the woes it has seen this year those with the big gainers and losers for the dow today. >> also point out just overseas it's the global tech rally that has really captivated the attention over there as well we talk about highs that we've seen in asian markets but even in emerging markets as well. 17% of the emerging market index is global tech names like samsu samsung, alibaba it's not just the global growth story that is helping stocks move higher. it's those tech names around the world. >> there they are. now we got earnings coming after the bell tonight we have highlighted gamestop, we also have the two hewlett-packard spinoffs and guess and salesforce so this will be a good cross

section to see how we do we had some good numbers from the likes of lowe's this morning. >> we did. >> we'll see if these can move the market tomorrow. >> a big week for retail, indeed. >> indeed. thanks, seema. see you later. we did go out with records for the major averages today we'll get that that and much more coming up with all the earnings on the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kell thank you, bill welcome to the "closing bell", everybody, i'm kelly evans a litany of all-time closing highs on wall street today look like the s&p 500 missed closing at 2,600 after trading above that level there the session today for the first time still the s&padding nearly 17 points today to close at 25,099. the dow up 160 on the bell to

23,591 for the nasdaq, up 1% today. 6,862. that's a record closing high how about the russell? 1,518 today. it that one particularly noteworthy the russell has not had a record high close since early october it has finally caught up so it's a quadfecta, perfect one on the close on wall street 1,518 for small cap russell 200s it's going to be another busy g earnings deirdre bosa will bring us numbers from salesforce. courtney reagan watching for gamestop and guess we'll see you guys in a couple minutes. thank you very much. as these all start to cross. joining me, cnbc senior markets commentator michael santoli, rob cox, global editor of reuters breaking views kevin o'leary, chair of o-shares etfs leading the dow today was apple. the biggest laggard in the index was walmart. over in the s&p, top stock there, jacobs engineering. biggest loser by a stretch was

signet's 30% drop on its earnings tech led the day faang stocks rallying across the board. even though we had movements on net neutrality, facebook, amazon, netflix and alphabet all up about 1%, michael. >> yeah, again, kind of they went back to the old favorites which is the big growth stocks may mainly tech and health care. it's very, very well behaved, orderly kind of relentless rally. this is in keeping with how the market character has been all year meaning you get up to a round number, both the dow and the s&p up it was a global rally as well because you did have china, europe, japan, leading the way. >> true. >> before we opened. it all kind of game together i think once the market held together after last week's little flutter, you had people front running the fact that tomorrow is one of the most seasonally strong days of the year. >> then we get into the end of the year which is always like that, anyway kevin, what's the why for you of how we ended up with record closes all the major averages today, what does this crazy strong year in stocks now say to you? >> it tells me to start to

prepare for less of a return next year. i think the call by "b" of "a" today, we can't go up 20% every year in the s&p, everybody knows those numbers don't work i think my theme for q1, q2, will be going back to quality and dividends. really boring. i think that's going to matter if we only get 6%, 7% out of next year's market which is my guess, you're going to get a third of those to almost half from dividend yields and you want quality balance sheets to do that. that's the theme for next year boring old quality in dividends. >> you mentioned that bank of america, marl lierrill lynch ca. chief investment manager saying, quote, the air is getting thinner and thinner, rob. >> yeah, there's a lot of reasons. i don't want to be uncharitable on this week, this is the week we give thanks and all that stuff. it true that the rest -- we aren't alone you have to remember the whole world has had a fantastic year so this suspeisn't just the uni

stat states if you look at the s&p 500, it underperformed a little bit. the dax, the topix in japan. there is definitely a sense that all boats are being lifted by this tide. but you have to -- i think you're right, kevin's right, you can't expect 20%-plus gains year after year you have a couple of things on the horizon. or you have a few things on the horizon you're not sure about. i'm not sure about the tax reform i don't know how that puts a lot of money into consumers' pockets. and i think as that kind of comes through, whether it's passed or not, i think it will get passed not sure people are going to see, well, this is fantastic, let's go out and buy more stuff. i also, you know, i'm not sure about the federal reserve. you got this guy, jay powell in, everybody thinks he's a yellenite. the fact everyone think s he's a yellenite means he won't be a yellenite. he'll try to push more aggressively perhaps than she would. not sure if that bodes well for earnings or stock prices. >> mike, before we move off the

topic, so much scrutiny lately on the rally look at the "wall street ge journal's" coverage we talked about the other day. rightly concerned, maybe not yet, what's going to bring this all to an end. what do can you think we're going to hear more of as we head to the end of the year and get outlooks for 2018? more -- >> up 10% into the first half of the year and then maybe we get everybody in the pool and we go back. >> we have some breaking news on hewlett-packard enterprise to get to here with david faber david, what's happening? >> well, of course, the company reporting earnings the lead this afternoon, kelly, is not about earnings. it's about the expected departure of meg whitman as its longtime ceo announcing in a press release along with the earnings coming from the company that miss whitman will be stepping down effective february 1st as the ceo of hewlett-packard enterprises. a company she's been running by a different name, of course, for the last six years whitman overseeing what really has been dramatic. and can't overuse that term

here, dramatic change at the company having split it into its component parts, initially, hp enterprises and hp inkle co comprising of the enterprise business on one side essentially then the devices and printers business on another. then further from there, hpe, itself, has spun off its services business into csc which became dxc and recently completed as well the spinoff of its software business into microfocus so all of that having gone over the last -- gone on over the last six years as she has refocused the company and made it a far, far smaller company than the one that she took over back over six years ago, kelly, but meg whitman now stepping down as of february 1st. did have a brief chance to speak with her and she said simply, you know what, r it is now time after 35 years of working to takea little break she will stay on the board of directors. antonio nary, currently the

president of the company, will step up and become the ceo of hewlett-packard enterprises. he's been at the company overall for more than 20 years he's been in his current role working with meg whitman very closely for the last five years or in various senior management roles for the last five years. and whitman said that in part, it is simply things are moving simply too quickly if this industry to even consider an outsider for the role and she's confident that mr. neri wilt, of cour course, provide the leadership needed in a small, again, smaller end, more nimble, they would say, company as for the earnings, themselves, it looks like we're getting a bit of reaction from the market, although they look generally to be fairly positive in most ways. 31 cents was the number on an adjusted basis for the quarter that was more orle less there line 10.6% margin in the enterprise group. that, at least, shows some sequential improvement

they are talking about 11% to 12% operating margins or margins overall, excuse me, for the next fiscal year, which starts with the next quarter and still sticking with 1.15 to 1.25 for fiscal year '18 as well, kelly. we'll let other digest the numbers from hpe certainly the big news is the top of the organization, meg whitman, will step down february 1st. back to you. >> i just want to bring in mike here for some thoughts on what this means you know, of course, reflecting on the career meg whitman has had, also at a juncture for hpe. >> yeah, certainly is. i think if you look at back in the two years or so since these companies split, since they have been separate under meg whitman, they outperformed the s&p. it seems as if it's a little bit of a not so much mission accomplished but essentially a time when we can hand this off obviously, a difficult time for both these companies, they're slow-growth businesses both hp and hpe in more the

enterprise area. the market's negative reaction is just like, you know, her job is done, but the job isn't done. that might be the takeaway. >> exactly david, what do you think is going to be the objective, the primary move now were the new ceo? they shrunk the company dramatically they need to kind of keep pivoting into some new, you know, fast-growing businesses. and does that mean he's going to have to think highly inquiz tifftiff ly, what is that going to look like for hpe >> hard to know, kelly they have the financial capacity given their cash flow generation to certainly start thinking about acquisitions you're talking about company with a $22 market value at this point to put that in some p perspecti perspective. you know, far fewer employees than the, what, 300,000-plus that meg whitman began the tenure with. again, it split into so many many different areas a lot of those employees have both gone with those companies there has been a lot of attrition and layoffs as well overall. i think the focus is going to be on maintaining some level of growth, whether it's 1% a year

or so. that at least is what they're going to be hoping for and continuing to be able to pivot with the market in a much more aggressive way. and respond to that market more aggressively i mean, meg whitman has said many times during the quarter-after-quarter interviews we've done over this period she believes the world is simply changing too quickly for you to be a large, large company in this area. and so they are now the enterprise group, essentially, at hp. my belief is they will stay that way. under the leadership of mr. neri at this point. >> all right david, thank you for bringing us that news. david faber with hpe dropping about 4.5%, of course, we also have some earnings from both companies here that are out. let's get to josh lipton with those result s for us josh >> kelly, hp reporting eps of 44 cents, that is in line with expectations revenue $13.the billi9 billion. the guide is basically in line, 40 to 43 cents

analysts have been looking for 42 cents for fiscal '18, the company's now looking for 175 to 185, that's a bit better than expected turning to the segmentes, kelly, personal systems, 9.1 billion. printing, 4.88 billion i did have the chance to speak with ceo dion weisler. i asked him how confident was he he could keep taking market share in 2018 when analysts expect pc shipments to basically remain flattish. telling me it's still a $333 billion market and today one in five pcs have an hp logo on it which means there is still four out of five and i see that as an opportunity, the top four players continue to grow so it's a consolidating market also asked about the supplies business, second quarter of stabilization. weisler telling me a couple years ago we said we would stabilize our supplies business by the end of '17.

we did it a quarter earlier than the model said we would. we're performing at or above the model. that gives us confidence finally asked hp executives about that tax reform plan, if and when it passes, does that change how they think about capital allocation the company's cfo telling me "in prior years our capital allegation program and m&a approach was not constrained by where our cash was located and now when the cash is in the u.s. through repatriation, it doesn't at the core change our fundamental capital allocation." telling me they still intend to return 50% to 75% of free cash flow to their shareholders remember, kelly, this stock heading into this report was up more than 50% year to date conference call starts at 5:35 eastern. back to you. >> josh, thank you hp ink shares down about 4.5% right now. as you mentioned a moment ago, hewlett-packard enterprise down a similar amount after david faber brought us news that meg whitman will be stepping down from that company at the end of

next year, staying on the board. kevin, what are your thoughts here is. >> let me be the first to speculate this outcome meg whitman, democratic nominee, presidential race, 2020. i can't wait for the whitman/trump debates. it's going to be absolutely spectacular. meg whitman is an -- she's a workaholic, there's no way she's going to hawaii to retire. this, i say 50/50 chance that's exactly what's going to happen watch it happen. she's running for president. >> now, granted she ran for governor we remember that isn't she republican >> i believe she was a republican at the time, certainly. >> yeah. >> she switched to hillary clinton. >> she was a republican and she went against trump remember -- >> but she did back -- >> i think she's destroyed her equity in the republican party she will be embraced by the democrats. just to put somebody up against trump. this is going to be the best entertaining television debates we've ever had even better than hillary clinton. i can't wait >> rob, what were you going to

say? >> well, she was a republican, but she switched -- well, she favored, supported hillary clinton. i actually would love to see that i mean, also just i don't want to lament the fact that hp's a smaller company, i think it's really important to think about she's actually saved this company in many respects by dismantling it, having it focused. we need more corporate leaders like that. and actually, we need people in government who think the same way. that bigger isn't necessarily better that smaller, more nimble, different incentives, can produce better results i mean, it would actually be -- i love your idea, kevin. >> you're producing the campaign ad right now >> i'm not -- >> just clip it, put it out there. >> i want to see the primary -- she'll have to run against sheryl sandberg probably for the primary. that i want to see. >> oh, my goodness, this is getting craziier by the minute. >> i think we created a women's party, the independent third par party for 2020. >> hpe shares falling. they had earnings, they did, as

david mentioned, beat on the bottom and top lines hp ink down as well after posting its results. of course, that company led by weisler. let's get to salesforce. deirdre bosa has the numbers deirdre? >> hi, kelly, hi, mike salesforce fiscal third-quarter earnings beating on the top and bottom line. eps coming in at 39 cents adjusted 37 cents was expected by the street also revenue a little higher than expected. $2.6 billion was expected. coming in at $2.68 billion that's a jump of 25% looking at the product segments, subscriptions and support. that coming in in line with expectations $2.49 billion. we also, the company telling us guidance for 2019, revenue guidance for fiscal year 2019 in line with expectations between $12.45 billion and $12.5 billion. we are seeing a little bit of weakness in the stock down art .6 of 1% that may be because president

and ceo keith block hinted on good earnings on analyst days, something analysts took note of, perhaps raised expectations for this quarter on the call we are looking for some color around salesforce's a.i. offerings. einstein business. been pushing and made a big push at dreamforce to show how it's resonating with customers. we're also looking to see how it's facing competition from likes of adobe, microsoft and oracle, of course. back over to you guys. >> that big deal with google that was just announced. shares down. let's get to gametop courtney reagan has those numbers. >> here's what we're seeing for gamestop's third quarter beat of earnings, 54 cents adjusted the street was looking for 42 cents. revenue also slightly better than expected at $1.99 billion comp store sales, those were up 1.9% stronger internationally when you look at the guidance, the company is reiterating the full-year earnings guidance, but there's only one more quarter left and they just beat by 12 cents. so you want to factor that into your consideration, and an

interesting quote here from the interim chief executive officer saying the technology brand's at&t wireless business underperformed expectations in the third quarter and anticipate that fourth-quarter results will be highly dependent, that's the words here, on the availability of apple's next-generation iphone x when it came to the strong categories for gamestop this quarter, nintendo switch and collectibles, microsoft's xbox 1dpr 1x is encouraging so far shares of gamestop were higher here, kelly, by more than 8.5% back over to you >> bill's doing a little victory lap right now. moving higher. in the commentary -- >> should do the lap quick you just never know how this one's going to trade. >> that's a fair point robert, kevin, please feel free to react to this i want to go back to talking about the 2020 campaign we're all now setting up because meg whitman is going to be stepping down from hpe. i mean, kevin, give us a final thought here . >> i actually think that's a

very high likelihood as an outcome. she was extremely active in california while she was running hp and doing all this work, she made big promises she kind of delivered at the end of the day. that's exactly what you want to talk about terms of turning the country around, solving big problems like health care, it's going to be all over the news tomorrow the speculation is going to be rampant. i'm just glad we were all around to talk about it first i think she'll make a great candidate and maybe she'll do what hillary clinton couldn't do, become the first woman president. i can't wait for the debates i love entertainment that's what it's going to be. >> i think you're going to be in it guys, thank you both >> thanks a lot. >> kevin o'leary, rob cox joining us man. what a crazy afternoon with all the earnings and that news. up next the fcc announcing plans to overturn rules regulating internet traffic. how that could impact the bottom lines of companies in the cable, telecom and internet industries. later find out if the justice department's lawsuit to

block the merger of at&t and time warner could put others on hold. we want to hear there you, twitter, facebook, e-mail. tell us your thoughts for 2020 you're watching cnbc, first in business worldwide

the head of the fcc announcing his proposal to reverse how internet traffic is regulated by rolling back obama-era net neutrality rules joining us to discuss the winners and losers, dennis burman financial editor at the "wall street journal" and mark, here with us here at post 9. dennis, you guys have kind of a runthrough of who is best helped by this and most hurt. now that's it's really lapeni happening, who are they? >> sure. of course, the biggest apparent winners, kelly, are the big internet and telecom companies i should say the big telecom and wireless companies, that's at&t, that's verizon, that's comcast t-mobile and sprint. at least on the edges of that seem to be apparent winners. the losers, big users of broadband, netflix, facebook, google, gaming companies like activisi activision you know, it seems like that's the simple way of viewing it, but it gets so scrambled net neutrality is so hard sometimes to figure out. i think long term it's going to be very interesting. in some ways net neutrality may

well benefit the big internet companies like facebook and google simply because they're the ones who have the mass to negotiate with the broadband providers. not as simple as it seems even though at first blush, there are some winners and losers. >> the share price reaction which had a lot of technology names positive would seem to hint at that, too, mark. what are you looking at this from >> i basically agree with dennis it's the winners are the broadband companies. at the top of the food chain at the bottom of the food chain, consumers, no matter what happens at the top of the food chain, they lose but, you know, another -- >> why >> because the -- any increase in cost at the top of the food chain is just going to roll down to consumers ult pimately but there's another loser, that is companies that would like to compete. imagine being a new competitor to a netflix netflix can afford the fast lane, if you're a new competitor to netflix, you can't, and it stifles innovation. >> but if i'm a consumer who doesn't use a lot of netflix, which by the way, i don't, i don't stream a lot at home, period, could i be able to pay

less than to my provider now and let someone else who consumes more pay more? >> undoubtedly, it's not going to work that way as a practical matter, somehow price is note going to go down imagine making the same argument electricity. could you imagine a fast lane for electricity? you get better and faster and more electricity if you pay for more rates the concept here, the overarching concept is regula regulating like a utility. they're a critical infrastructure the idea of charging more for a better version of critical infrastructure seems inherently wrong. >> mike, what could you say? >> i agree that's the way it should play out on paper one of the elements is not just would you pay premium to get it fast, get more data coming through the pipe will the broadband providers try to slice the product, unbundle the product, so they could offer you just sort of a limited, you know, messaging plus whatever, just a bare bones thing and disaggregate the product that way, which is all going to add

up to better economics for the broad brand provider i do ink think it's going to sw the power back in that direction. >> dennis, you're saying that's too simplistic an argument go ahead. >> two things to think about, a "new york times" story taulked about telecom giants you know what's bigger are the gods of the internet, largely facebook, google, amazon and apple. the combined market cap of virtually every media company in the united states still does not equal that of facebook so it's very interesting that in the world of 2018, how much power facebook, google, apple and amazon truly have. the dynamic here is different than one even can say in 2013, even in the obama era, and secondly, it does seem that we may have, if congress has the guts to take on another big issue, a whole new round of legislation to really figure out how all this is regulated because we're trying to use old mechanisms from the 1930s which

really have no bearing whatsoever on what's happening today. >> all right got to leave it there. dennis, thank you, mark, appreciate it very much. >> thank you. >> dennis burman, mark grossman. on net neutrality. big news on that today. retailer, guess, just reported earnings and courtney reagan has those numbers for us now. courtney >> hi, kelly for guess' third quarter, we're seeing earnings come in at 12 cents adjusted that's in line with what analysts were expecting. revenue, however, is on the light side for guess' third quarter. at $554 million. the street was looking for $570 million. the fourth quarter earnings and revenue guidance is basically in line with consensus. we should note that the third quarter north american comps were down 10%. the street was looking for those to fall only about 8.5%. you can see shares are falling sharply, almost 15% and decently heavy volume after hours it appears to be on that weaker than expected revenue. europe and asia continue to be the standout for guess and the ceo expects that to

continue at least into the near future with his comments on the release. kelly, back over to you. >> thank you, courtney big drop for guess, mike, not that that it's that big of a company. >> short-term traders caught off sides here, the stock is where it was a week ago, ten days ago. clearly a run into earnings, especially for retail e one of the better performers. so was not set up for a little bit of a cool guide in revenue performance. >> for that stutter step billion and a half market cap. anyway, guess down about 14%, little less than that after hours. breaking news moments ago, hp enterprise ceo meg whitman announcing she'll step down early next year. the stock is sinking what it means for the future of that tech giant coming up. first, we'll look at whether the government's antitrust lawsuit to block the merger between at&t and time warner could put the freeze on more media deals, rig aerhihtft ts. she's nationally recognized

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[ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. we have a quick market flash from morgan brennan. morgan >> hey, kelly, so check out shares of axalta codings, down 14% in after hours, now almost 15%, after axalta and novo confirmed talks between the two paint companies have gone away they have fallen apart due to disagreement around terms and structuring of a deal and other issues axalta is the company that makes coatings for the transportation industry, things like paint for cars

akzo nobel is a dutch company. axalta, down 15% on news this merger will not be happening back over to you. >> this is 0 for 2 now the whole elliot brouhaha. that was another one thank you, morgan zblmp. time for a cnbc news update, let's get over to sue herera. >> hi, kelly cbs and pbs both terminated their relationships with longtime host and anchor, charlie rose after eight women claimed he made an unwanted sexual advances toward them. rose has apologized but also said not all of those accusations are true. meanwhile, pixar and disney animation executive john lasseter says he's taking a six-month leave of absence from the company. in a memo to employees today, lasseter said he had difficult conversations and apologized for actions he said made some uncomfortab uncomfortable. a family boating off the florida keys is safe after being rescued by a ferryboat workers

the family of three jumped overboard and clung to a crab buoy after their vessel caught fire and, no, it's not 911, it is the butterball turkey line the call center's director says it staffed 50 turkey cooking experts will receive over 100,000 calls from now until the end of the year. the turkey talk line began 36 years ago. and i have used it, myself >> what's the number >> i used it myself. seriously. they really -- they help when you're, like, panic. >> does it have to be a butterball >> no, it does not have to be a butterball all about cooking the turkey safely >> all right. >> i was worried i was going to kill the guests so i decided i'd call and make sure it was okay >> i'm with you. i'm going to put them on the phone. sue, thank you very much. >> you got it. >> sue herera. let's take a quick look at how we finished on wall street we had all four major averages close at record highs. the dow was up 160 to 23,590

s&p up to 2,599. nasdaq up 71. the russell 2000 joined the fray with a 15-point gain, closed below 1,519. salesforce.com now lower guess down 13% hp ink down 4.5% gamestop up about 3.5% how about hpe? hewlett-packard enterprises which just announced ceo meg whitman will be stepping down next year. she will also be on "squawk on the street "tomorrow in a cnbc exclusive. shares down about 7% after hours. let's get to other big stories today in our rapid re p recap. >> get this, chinese internet giant tencent has now surpassed facebook in terms of market value just a day after it became the first asian technology firm to reach the 500 billion valuatio mark. >> pai saying under my proposal the federal government will stop micromanaging the internet and

the fcc would simply require internet service providers to be transparent about their pract e practices so consumers can buy the service plan that's best for them the proposal will be voted an at the fcc's open meeting december 14th. >> higher carrot costs were one of the reasons why campbell's soup had organic sales decrease 32 2% i have hard time wrapping my head around the idea it's carrots. i think it may be the product line and what can i tole yell you, d center of the store is still awful and campbell's soup is mm, mm, bad. >> this is a classic vertical merger these are efficient transactions no competitor is being eliminated we want to go to court as soon as possible. >> that was my other question. timeline >> we want an early trial date on this. it should take no more than about 60 days. >> i'm not going to get involved in litigation, but personally, i've always felt that that was a deal that's not good for the country. >> with the at&t/time warner

deal being challenged by the department of justice, does it put other deal activity on hold? joining us now are adonis hoffman, chair of business in the public interest. david balto, former policy director at the ftc. welcome to you both. david, undeniably people have to wait to see what the government does in order to see what other deals can get done, right? >> absolutely. this raises a lot of risk especially in the health care space, which raises even greater foreclosure concerns >> lexotica -- aren't they sun glass companies? >> yeah, sort of fits into that space. but, you know, foreclosure concerns in the doj case here, certainly are at issue in cases like that. and in cvs/aetna so cvs/aetna i can understand, that's a vertical merger it's companies who don't do business together coming together you think that deal which is supposed to be announced by the end of november, do you think that's going to be put on hold

now? >> both of those deals are going to get much more intense scrutiny by the antitrust agencies and people need to go back to the drawing boards to figure out what's doing under the antitrust laws >> right also depends on what happens with this. if the government loses, making the comparison to oracle, back in 2004, the department of justice sued to block that, too, they lost and became a lot less aggressive going forward. >> they haven't won a case in a long time but i think right now, the smart money is sitting on the sidelines waiting for this case to be litigated listen, this is totally counterintuitive to what the trump administration came in the office saying that they wanted deregulation, wanted growth, wanted government to stay out of the way of business. and yet now we have a justice department which is, by the way, contrary to what the fcc's doing, saying we want to take a close look, almost micro managing this kind of transaction. i think it's -- it's a curious

move and i think at&t has a very strong position in challenging this case at the district court level. >> they're also relying on case law that's over a half century old. that puts them in a really risky position >> yeah, in addition, theis reaf questionable their market definitions in terms of what they're looking at for this particular -- for the sc svod, vod market, those are very narrow and the market should be defined a lot more broadly there this instance i believe. >> david, i mean, couldn't you have defined the market more broadly for a horizontal deal, like staples, office depot, which got turned down? i mean, i just wonder if, in fact, we're discounting the possibility that in a court, you can float a theory to say, look, the world has changed. at&t with access to all these different customers nationwide, they don't just have one territory, that can theoretically make a market share play using their own content. not advocating that view

i just weonder if there's enoug varkt variability. >> at the end of the day you need facts hard facts. the question is in the past have firms like at&t in a strictly vertical relationship use that relationship to harm consumers and make them pay more and the evidence there is very sparse and without that evidence, a judge is not going to go and venture forth, block a deal, just based on speculation. >> all right we'll see. especially if this moves as quickly as it might. guys, thank you very much. david balto, adonis hoffman. we follow the at&t/time warner deal. hp enterprise shares lower after ceo meg whitman announced she will be stepping down. up next, we'll discuss whether the incoming ceo can keep up the momentum she biuilt at the company. starbucks, hoping to give its stock a caffeine boost by reportedly selling debt to help r k.for a stock buybac outakeaway on that is coming up

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hewlett-packard enterprises

ceo meg whitman announcing she's stepping down from the helm effective february 1 joining us, jeff sonnenfeld. thanks for being here. why do you think the company's reaction is so poor in the market >> she has been so identified with the company, it's almost that she's hyphenated with the name of the company. she so recreated it, pared it down very successfully to make it nimble. part of the challenge, kelly, has been as a technology business, such fast-moving space, unless you're michael dow dowell, it's really been hard to make long-term investments cut across platforms you either focus or you go private. dell went private. he could stay if lots of different technologies mega, she's had to pare it down quite a bit to stay nimble the cloud business has been a tremendous success for them. >> jeff, obviously this move is kind of sparked speculation as to what's next, not just for the

company but for meg whitman here now, her name, of course, had been out there when it was -- when uber was looking for a ceo, so this idea she might be looking for a next act is probably not going to be new what's your bet? >> well, you remember it was not just idle speculation, before bob iger got the job as the insider of disney, meg, who's actually quite close and friendly with bob iger was a real serious candidate and it was michael eisner who blew the secret on that when she was still back at ebay her decade at ebay, by the way, was an incredible track record the growth not just of ebay, itself, that she took off, you know, astronomically from basically the startup she inherited, the force she has created, but paypal, itself, is now a spinout she had nurtured, it's larger than american express, who would have ever thau thought. she has a great track record across platforms disney, although, she's just a few years younger than bob iger,

would be unlikely at this stage but you wonder what's going to happen going back to hasbro, her old roots. she launched her career way back there. i don't know that was her most favorite period of her career. if that mattel deal comes through, that would be interesting. >> i don't know. i mean, we've had a guest talking about her running for president 2020, and debating donald trump and, you know, having to run in a primary against sheryl sandberg, jeff. >> she would have no problem with that. she's not afraid of anybody. she's tough. although she likes to joke about her experience running for governor she decided that maybe she's not cut out for politics but she really has been battle tested and i think she'd be a inincredible crossover not likely to be an indent this is not the republican party she'd grow up in not quite sure she'd find she had a home there yeah, she would be a very strong candidate. she, by the way, when ken frazier spoke out against the charlottesville craziness and the awful nazi stuff there, she

was one of the very first to run to his side. she and, again, bob iger, at disney, paul of unilever, stood apart from everybody on the business roundtable and others she's been courageous challenging the president. i wouldn't say for sure that public office is not in her sights but i don't see right now that -- >> well, yeah, i don't want to say this is sudden, but she did tweet back in july she's fully committed to hpe and plans to remain the company's ceo, michael. >> that's what any ceo without a specific plan to leave is going to say especially when that was right around the time when the uber kind of force race was going on so the question was -- >> the world is ready -- >> quick last word. >> -- for sure the world is ready for another business leader. whether that is mark cuban, bob iger, howard schultz meg whitman should be in that mix for sure. >> absolutely, jeff, thank you very much. >> certainly thanks. >> jeff sonnenfeld from yale

school of management don't miss an exclusive interview with meg whitman tomorrow at 9:10 that's pretty specific 9:10 a.m. eastern tomorrow on "squawk on the street. set those dvrs. off the menu, the best way to frame starbucks' offering the java giant's biggest move to boost the stock prices coming up next in our takeaway i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils,

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we begin today with a major black eye for a recent ipo chinese lending online platform just went public a month ago here at the new york stock exchange raised $900 million. it was the largest chinese ipo in the u.s. this year. shares have plunged by over a third this week. they were down nearly 4% today on news it could now face class-action lawsuits in this country as well as in china, this for exploiting users with high rates and selling personal information. qudian denied selling the information. >> i think it would probably give a chinese company pause, put yourself out there in front of u.s. courts and professor lawyers. one of the efforts would be to sue the company for the drop in the stock price, itself. that's often what happens. >> will it make the new york stock exchange think twice about these listings >> you want to make sure the transparency, how much do we really know about the operati

operations and, you know, this is one of those cases where there was a big celebration here on the open, i'll tell you. >> there's been a number of these chinese ipos lately. flexion, starbucks is borrowing $1 billion to fund share buybacks now, it says the funds will also be it says the funds will be also used for expanding its business, paying dividends or financing acquisitions investors have been souring on the buyback binge lately especially with stock prices as high as they are should starbucks be pouring this into a buyback or investing? >> when does buyback make sense? when the stock is demonstrably undervalued or it's reached maturity that it should probably have more leverage on its balance sheet. maybe they are in the mode of not expanding as fast anymore. that's something you could argue that starbucks doesn't have a lot of debt. >> they're moving in a way from a growth to a value stock. >> i also think there's enough to go around, right? 4 or $5 billion in operating

cash i mean, i think they can kind of handle it. by the way, saying they're going to use it for all -- they'll use it for everything they use cash for, including buybacks. >> i don't know if these would be demonstrably undervalued. >> i don't think i don't think it qualifies on that test. i do think you can say, look, this is what big, mature companies do and again, it's not the reason to buy or settle stock cbs has gone dark on dish network amid a dispute over fees these disputes are not uncommon, even for channels to briefly go dark because tv networks hope that precious carriers to meet their demands or customers complain with cbs set to broadcast, do you think dish has any hope of holding out against their demands? >> it's a good question. obviously this game of chicken happens all the time what's interesting about this is that cbs has been the most aggressive about demanding payment from broadcast networks and broadcast stations it's not so much just espn >> and they can go over the top.

>> the old over the top is just put the antenna on the roof, just pulling it out of the sky >> in your dish subscriber area, if you don't get access to cbs, i'm sure cbs will say, you can get it online. >> they're trying to kind of keep the customers on their side on the other hand, the chargers/cowboys probably won't be a great game. coming up, some movers here, we'll have some conference calls coming up with gamestop up nearly 4% up, hp down 4.5 persons. we'll tell what you to listen for, coming up coming up on "fast money," a top technician says there are three stocks trading at highs that are still wor binthuyg. zar: one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets.

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weabshares of salesforce trading lor out 1% after their earnings we're minutes away from the conference call now. we'll get you some key numbers to listen for right after this [ keyboard clacking ]

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we are not done with the news on exalta just yet. morgan brennan joins with us more >> reporter: that's right, exalta coating systems is now up 3% that's after falling 15% earlier in after hours trading this on a reuters headline that nippon state holdings, a japanese company, has made an all cash offer today to acquire exalta this coming just on the heels of news that axalta and nova had stopped their merger talks axalta's largest shareholder is warren buffett's berkshire

hathaway back over to you >> morgan, thank you mike, any quick reaction >> the disagreement in terms, perhaps, of the prior merger negotiations was, well, we have another cash offer on the table, so maybe that made the current agreement look less attractive who knows if that's how the sequence of events went. >> fair enough enough for axalta to handing onto a 4% game half hours. the calls for hp's and gamestop's calls are coming up what are you going to listen for? >> for salesforce, fundamental momentum the stock that goes up $40 year to date gives back a dollar after the bell after an okay earnings report. a lot of the happy talk, maybe about some acquisitions. that's the one i could focus on. hp, it's been a pretty good performing stock, old tech, just pulling back a little bit. >> hp inc., to be clear. >> pretty decent laptop and printer cycle. >> i'm an instant ink

subscriber >> gamestop is valued as a fast melting ice cube if it could be a slower melting ice cube -- >> if there's stronger turnout for iphone, then benefit from that that does it for live from the nasdaq market site overlooking new york city's times square i'm melissa lee. "fast money" starts right now with pretty ominous music. the department of justice is jumping in, the yield curve, and global political disarray from the middle east to germany to north korea, there are plenty of reasons to sell. but stop none of that even matters. change the music, please everything is awesome. stocks are at all time highs, the dow surging at least 200 points on highs for the day. the s&