for the first game of the season last night the eagles versus the falcons it was the top rated sporting event since the olympics on nbc. the ratings were down 8% from the season opener from last year it was rain delayed and not the greatest game. >> thanks for watching "power lunch. have a great weekend >> "closing bell" starts right now. welcome to "the closing bell." i'm david faber in for wilfred frost today. >> and i'm sara eisen here for kelly evans. we're going to talk to the ceo of mondelez, his thoughts on president trump's trade actions on what he's seeing in china in terms of consumer behavior this is company, david, that sells snacks around the world but mostly outside the united states, more than 70%. and we're also going to talk about emerging markets currency

melt down and how that is impacting the business first let's check on the markets dow. dow is down 47 at one point the dow was down 177 points >> sorry, can't take that one. the nasdaq one hour of trading and it's on for what will be the first decline in three weeks take a look at tesla they have been down more than 6.7% >> more than 9% earlier. >> yeah, but that's cold comfort for those who are on the stock right now. let's get to josh lipton >> well, david, tesla stock as you guys were just mentioning there getting hit hard today after news of two company executives departing david morton, the chief accounting officer is leaving the company saying the level of attention placed on the company and pace there exceeded his

expectations though cnbc's alex sherman reports that wasn't the only reason he felt elon musk and others weren't listening to him about that go private deal in addition its chief officer is also leaving down more than 30% since musk fired off that infamous funding secured tweet last month but more are talking about the podcast where he talked about a wide range of topics including just how hard it is to run a car company. >> spacex is no walk in the park, but a car company, it's very difficult to keep a car company alive. it's very difficult. you know, there's only two car companies in the history of american car companies that haven't gone bankrupt and that's ford and tesla 2008 is not a good time to be a startup company and especially an electric car taechl

that was like stupidity squared. >> but that wasn't all musk appeared to do, smoking whiskey and marijuana. >> so is that a joint or is that a cigar? >> no, it's marijuana inside of tobacco. >> oh, okay, so it's like tobacco -- >> yeah, you ever had. >> i think i probably tried that once >> you probably can't because of stock holders, right >> i mean it's legal, right? >> totally legal how does that work do people get upset at you if you do certain things? it's tobacco not marijuana in there, that's all it is. >> we should emphasize that smoking marijuana is legal here in the state of california, but definitely an unusual decision for a the ceo of a publicly traded company to do so on camera >> guys, back to you >> it's a spinelo, right

>> it's a blunt. >> it's a joint. >> no, it's not a joint. it's a cigar >> josh? >> i would defer to mr. faber's knowledge on these subjects. if david faber says blunt, america, i think we can trust it's a blunt >> thank you, josh i don't need to go into my history with sara right now but i think you're making the right choice she's bearish on the tesla stock, sold her shares at the end of the year or end of last year nancy, i guess you're feeling pretty good about that decision right now. >> pretty good, but notfeeling pretty good about what i'm watching right now that's why i don't watch reality tv it's ugly and uncomfortable. >> do you think the stock reaction has to do with some of the clips we just showed or more about the executive departures

which continue >> i think the deep issue is the executive departures for today but, you know, these kind of clips don't help in the short run. but i also think that a big component of musk is built into tesla. and most of the core investors, they recognize they're dealing with this eccentric figure i think you're going to see more antics like this, but i don't think you're going to see them go away. >> i disagree. >> why do you disagree >> look, you've got executives leaving, he doesn't have a lot of backup. there's not a lot of secession plan he's super busy and exhausted but he has time to do this podcast and smoke weed or whatever it is and drink whiskey. and he's missed tons of deadlines. and the valuation is reflecting a company that's operating at top speed and is delivering on every level, and i just don't see it i think there's a lot better

places to be invested. >> it's interesting. people are focusing on what he smoked or drank. but i think his comments during this interview, two and a half hours were odd in itself, and with a comedian even more interesting. what i come back to is the bizarre effort to take the company private just given his tweets and the reversal. do you think that should have given investors pause at that point? >> yes, absolutely i think it raises some questions certainly with those that are going to be hyperconservative. but many i think are comfortable with the level of risk that is at play, and i think for those they're likely to be really rewarded especially now when you have people like your geluests n others who are very conservative in their approach. and don't see what could be just a ver eccentric individual that's perhaps being more transparent like consistent with how social media has done today,

even the president operates today. it'll be very interesting to see what happens in a year when they become profitable. >> as a believer, eric, do you have faith in this board, that they might -- and there have been plenty of reports that they've asked him to stop tweeting, and, you know, are trying to get a handle on the situation, especially the taped private situation. eric, what gives you confidence with a lot of them very loyal to mr. musk, that they can make a turn or is that not what you're argue? >> well, i think the fact that the board may be loyal -- they don't have the guts to cut the musk head off of the tesla unicorn. it's not going to happen so you're going to see i think -- >> that's a problem. >> well, i think you're going to see them continue to support tesla. but, you know, if your guest thinks that cutting musk out of the equation is the right move, i mean this is the genius behind this creation. >> i'm not arguing that.

>> and he's the genius that will likely bring that company to profitability. >> eric, sorry to cut you off. he's a singular guy. the genius of him is what you get that comes with the other part they can't kind of be separated. >> no, i do get that but i also i wouldn't call me conservative we bought this stock at 180 and sold it at 340, so we sold a nice double on it. if you say this whole company's valuation is dependent on one person that's not investing to me, that's gambling. so i find better places to be. i get the vision, i love the car. i think everything that he's done has been exceptional. but i think the wheels are coming off and we're watching it in realtime. >> er, very quickly, any thought to you the sell-off of these baunlds, the vendors believing in it and continuing to extend

credit >> no, because you're looking at a model three that is crushing it, that's kicking out tremendous cash. so i don't think cash is going to be a big issue. and i think you're also getting leverage in terms of profitability on the model 3 big gross margins. so i would imagine the targets for 2019 are going to be there and then everyone, the vendors, conservatives, analyst, investors have been short suddenly are going to be singing a different tune i think that's what's going to happen >> we'll leave it there for now, but somehow i think we're going to be revisiting this. the markets have been dipping a bit lower, this after president trump said he's ready to impose tariffs on another $67 billion on chinese goods on top of $200 billion that may go in effect very soon it keeps moving. >> the president told reporters

that the additional $267 billion in tariffs, are quote ready to go on short notice that would go on top the $200 billion in tariffs that the administration is weighing president trump said those could take effect, quote, very soon. all of it depends on how china might respond. the administration has already imposed tariffs on $50 billion of chinese goods over the summer and the president has threatened before to slap tariffs on basically all the products we import from china. he said it in his official statement even said it in an interview with our own joe kernen but what is alarming in washington right now is the timing of these comments coming as administration officials are still pouring over that $200 billion tariff list. now, technically they can move forward at any time. but we don't know what that would look like or take effect yet trump's comments on air force one make those tariffs

look like a done deal have even more painful measures. they just referred us back to the white house. the president speaks for himself. >> if he gets to that -- i mean that's it, right, that's more or less going to comprise all of our trade with china >> that's right. the $50 billion plus the $200 billion if those move forward combined with this new threat, that would basically be everything >> i think the bigger question is what would the chinese do in retaliation because they don't have as much when it comes to u.s. exports going into china. so then would they use other weapons like the exchange rate, like the treasury hoard, like a boycott of american products any sense of that? >> it's unclear right now. china has already threatened about $60 billion in tariffs on u.s. imports they only import about $150 billion of u.s. goods.

on the ones that are remaining are mostly intermediary products, capital goods, very few consumer goods so the question is are they out of bullets or more qualitative measures they could take >> the markets keep getting hit harder thank you for the update let's talk more about how this impacts the markets. neala richard, tom frost, and our own rick santelli at the cme group. you've got this trade headline which the market reacted negativity to but you've also got these solid job numbers. do it from a point of strength and we certainly have that in the jobs market. >> the jobs market, the numbers we saw today were exceptional in many ways. we saw really strong headline growth, higher wages there was some weakness in the manufacturing sector, which points us back to what we're

seeing now is escalating trade tensions and the question for the administration is how much are you willing to risk what you have in your hands, which is really solid economic growth that's buffering a really long bull market. how much of that are you willing to risk in terms of trying to get a better strtrade position t china, and i think the market is still waiting to see what wins out at the end of the day. strong economic fundamentals or trade tensions as we saw just today. >> tom, is that how you view this market reaction dow is down 51 points. we're well-off the lows. it's a blip considering what we've seen is it because we're getting very strong u.s. economic data, takes the sting out of these trade headlines? >> i think absolutely. we lost 8.8 million jobs during the recession and we've burned 19.1 million jobs back since this began i think the greatest thing that came out of that news is finally

the workers are starting to benefit. 2.9% wage increase year over year we've continued to advise our clients this is not a market you want to be behind. for long-term money this bull market run has a lot of legs left in it >> i will say, though, the risk of increasing tariffs are two fold one that companies pass along those costs to the consumer, and consumers have been the bright spot 77% of the economy we've seen consumers spending strong and escalating in the second quarter will consumers still keep spending when they see higher prices companies say that's their way out of higher tariffs. >> everyone trying to figure out how many hikes we're going to get from here to next spring, let's call it. where do you stand after talking to a lot of people today >> a good issue is an issue in particular today, david. when i saw the numbers this morning i really would have

thought potentially steepening we'd see the long end outperform, but that short end just piled ahead as a matter of fact, pretty parallel shift on the curve with respect to rates both on the day and on the week. still hovering just under 24 basis points on tens to twos and the reason i bring that up in your answer is because as much as nobody really thinks that the signals in the marketplace by an inverted curve with central banks distorting long end rates is the same signal it would have been 10 or 15 years ago but that doesn't dismiss all the nervousness surrounding should the curve invert and should that inversion be tagged with the fingerprints and the federal reserve raising rates. with that steepening i would think we're in line for two. but beyond that it's going to be a dicy proposition for next year >> is that your forecast >> i think the strong jobs

numbers put a lot of credence to that rate forecast for this year next year is still in question, and i think a tariffs will have a lot to do with it. we think overall the rest of the year we'll see strong growth maybe not 4%, but still strong >> so thom, add it up for us are you still strong on this market tech got hit hard. we've got now more rate hikes in the mix or at least two for the year you've been talking about, with the president throwing out on additional 275 billion of chinese imports and better u.s. data how do you add it all up in terms of the view from the markets from here? >> because the fundamentals are in place the u.s. has been subsidizing growth and i think the market is going to look at that as a good thing. it looks like it's going to work with our neighbors north, canada china has been stealing our trade secrets.

things have got to be renegotiated there i think if you look at strong job growth, finally triple economics are working, job rates are rising, business confidence, consumer confidence, these are fu fundamentals and ingredients of a bull market. >> as the s&p nears the flat line, guys thank you. we have a news alert now on "the new york times. eamon javers with the details. >> we're getting this statement now from "the new york times" responding to the president's comments on air force one earlier today. "the new york times" saying we're confident that the department of justice understands that the first amendment protects all american citizens and it would not participate in such a blatant abuse of government power. the president'sthets, "the times" writes, both underscore why we must safeguard the identity of this writer of the

op-ed and a free and independent press to american democracy. the president was asked by reporters if he thinks jeff sessions, the attorney general should be investigate that "the new york times" anonymous op-ed which had withering criticism of the president of the united states the president responded, i think so, it's national security i would say jeff should be investigating who the author of that piece is because i really believe it's national security sarah huckabee sanders, the white house spokesperson, though, backed off of those comments a little bit later telling nbc news that the president was just opining when he made those comments on air force one. and said, look, he's concerned someone is trying to undermine the executive branch, and he wants it looked at not clear if the department of justice would or could take any action here to investigate who the author of that damaging piece "the new york times" was but "the new york times" coming out with a statement defending its right to publish the piece and saying that any investigation of that sort would be a blatant abuse of government

power, guys. back over to you >> okay, eamon, thank you. eamon javers in washington well, the factory town, some believe it's a relic of the past but up next on this job reports we're going to take a look at manufacturing challenges and the new factory towns being built by the digital economy. and still ahead we're going to talk to the ceo of sarepta how its stock has skyrocketed. the ceo is goi tngo join us on "the closing bell. the dow is down 56 points.

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the pace of hiring picked up in august as the u.s. economy added 201,000 jobs, more than estimates. but one area of the economy that is suffering a skill labor shortage, manufacturing. our kate rogers is at twinsburg, ohio at a manufacturing company with more on that story. >> the manufacturing sector has really been buzzing along under president trump adding 350,000 jobs since he took office. but the manufacturing institute says an additional 500,000 roles

in the industry still need to be filled which is why companies like rockwell autoimation where we are today is looking for workers. they're essentially these mini computers and rockwell says they're willing to bring in even unskilled workers and get them up to speed. >> we want to bring people in that we can train. because of our robust training process we can bring people in with no skills, we can develop them to have certification and go through various processes in the plant and get more certification and allow them to grow in their career >> rockwell is looking to hire about 140 people in manufacturing roles across the country. they do offer a very competitive benefits package include things like health care on your first day, college tew titian reimbursement and pore the average pay for someone in a manufacturing role in the u.s. is about $80,000 a year, which

of course is a also a very competitive wage and like a lot of other companies within the industry walkwell recognizes its best future assets are the people it has right here on the floor today. they're investing the people they have here, training them, retraining them and up skilling them so they can retrain in the future, guys back over to you >> despite a low down in factory hiring one has been changing the landscape across america, ecommerce. just as communities resolved around factories like automobiles and steel, here to discuss these new factory towns and what this means for the economy the economic strategist at the policy institute and joseph cane. guys, thanks to you both for being here michael, let me start with you aren't highly skilled manufacturing jobs ones that are

better than taking something off a shelf for amazon and putting it in a pallet >> well, that's not the question what's happening here is that the ecommerce jobs have been expanding in places that manufacturing left behind. what we've seen is a pendulum swing. we had years where a lot of growth was being generated in the coastal cities, dense cities and now we're seeing ecommerce expanding in places like illinois and indiana which has generated 30% wage growth and job housing in the last year this is really an expansion in areas which have lost manufacturing jobs it's not a replacement, but it's lifting places up. >> but i guess to the spirit of the question, michael, are they as good jobs i mean what sort of wages do they pay, what sort of conditions are they? there's been a lot of heat particularly from bernie sanders of these warehouse jobs at

companies like amazon. >> what they're doing is actually taking the place of perhaps retail brick and mortar jobs and they pay 30% more than brick and mortar jobs. you know, it's interesting that retail had very low real wages for many years, very flat, low hour work. and what's happening, ecommerce, much better paid, full-time jobs with benefits. this is really about changing the landscape in terms of increasing equality and bringing up people that were formerly working at much lower wage jobs. what i see is that the ecommerce hubs are going to become centers for a new wave of distributed manufacturing, which are using custom and semi-custom products that they ship directly to consumers through the ecommerce, we're going to have this whole

new way of what we call the internet of goods, very, very different. and this is the way we get the next wave of manufacturing and bring production back from overseas >> joseph, we hear a lot about automation when it comes to these things and certainly amazon is unrelenting in its desire >> michael is right that there are a variety of different jobs here as much as we think of industry trends it's important to think of individual places, material movers, stock drivers who have different skills and tasks they have to carry out every day. so the process of automation it's really an the crease in technology of these jobs and all jobs across the economy. and so it's difficult to obviously fully predict what the influence of those technologies will be and the impact of those technologies but we're seeing complementary

robots, for example. there are many different types of warehouses, distribution centers and so on. so i would emphasize not simply thinking of as a whole replacement challenge but a variety of skills, a variety of workers and really a variety of employers that are going to have to deal with these changes in years to come. >> the fact that these, i think you said warehouse towns are sort of coming into place in a positive way, michael, for what are rural manufacturing towns, how does that change the politic and economics of these communities in these places? >> well, in many places these are the largest job projects they've seen in 10 or 15 years this is really about a recovery that is based on technology. these are tech enabled workers these are the work force of the future and, you know, i don't think you sort of think of it as standing alone. companies like amazon are automating yes, but what they're also doing is training them in a

new ways that will be helpful for the future what i look for, what i see is that across the country, not on the coast but in the center of the country there's going to be a lot of growth driven by ecommerce and by the next wave of manufacturing that is enabled by ecommerce >> joseph, you know, wages play a part here. wage growth the best we've seen i think in about nine years. but there's always a concern amazon as a huge employer, for example, still has a lot of power. how do you see the worker versus employer relationship in this world we're talking about? >> it's important to emphasize, too, there are different workers involved here at different points of their career entry level wages might be actually compettivitive for somo these workers when many of these workers may only have a high school dediploiploma or less

when we think of this wage question it's more thinking of what are the wages now but what is the wage growth potentially in the future as thee workers take on a new task, as there's demand for these workers in these positions where companies like amazon and others can't even find the workers to fill these jobs >> it's going to be a big economic story and a political one i have a feeling into the mid-terms as well. guys, thank you for weighing in. time now for a cnbc news update with sue herrera. >> hello, here's what's happening at this hour, everyone president trump calling on attorney general jeff sessions to investigate "the new york times. after the newspaper published a column from an anonymous senior administration official, raising questions about trump's fitness for office trump calling it a national security matter. "the times" responded by saying it's confident doj understands the first amendment protects all

u.s. citizens. cincinnati police say they still don't have a motive for why a shooter identified as omar perez opened fire in a downtown office building on thursday killing three people at a news conference they released surveillance video. >> running towards the gunfire officers spotted alone gunman actively firing shots in the first floor lobby of the building four of the responding officers were enable to engage the gunman shutting him through the plate glass window causing him to fall through the floor -- to the floor. hundreds of hotel workers walking the picket lines in downtown chicago striking for year round health care workers are asking for sick days to see a doctor, work loads that keep them healthy and wages that keep up with the cost of living. you are up-to-date that's the news update this hour back downtown to you guys. sara, wilf, i'll see you next hour >> thank you, sue herrera. wave got a news alert now on

riot block chain >> the sec today announcing charges against a group of investors and companies it called in a press release fraudsters for quote-unquote market manipulation to the tune of $27 million the agency charging ten people barry honet was called the primary strategist in this complaint. he was once riot's largest shareholder. the company is not related we should note to riot blockchain the company changed its name and business plan and saw its stock soar meantime the stock today is down 14% on the back of this news they were not immediately available for comment, sara. >> thank you for the update. less than half an hour to go here before the closing bell dow is down 46 points, again well-off the session lows. it was down at that point down

177. s&p flat, same with the nasdaq s&p andnasdaq both down for th week first time we've seen that in a few. russell 2000 also down presidents on the stump today. both president trump and former president obama in illinois drumming up support for the mid-term elections up next we'll go live to california for a key re atacth is drawing national attention. (guard) i've seen things i shouldn't have. unnatural things. these people they don't sleep... like ever. they reveal in extremes and defy limitations. these pursuits may seem unnecessary. but the scariest thing i can imagine is a world where this, doesn't exist.

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in california republicans have held the 45th district of

orange county for more than 40 years, but that could all change in this year's election. cnbc's john harwood joins us now. he's gate the latest on this race and why the incumbent walters is avoiding talking about president trump. >> david, president trump is at the center of the fight for congress all across the country. and lately not in a good way for republicans. here in california's 45th district outside of los angeles democratic challenger katey porter vows to hold president trump accountable. that puts pressure on the republican incumbent mimi walters i asked walters if she considers trump a danger to the country. >> no, i don't i do not believe that. i think he has a very good team around him, and i believe he's doing what he thinks is right. there's processes in place to make sure that if there is corruption then, you know, it will play itself out but what i'm focused on is i'm

focused on making sure i deliver the promises to my constituents. >> i think that some of trump's actions represent a real threat to our democracy part of congress' job is be a check. if you're not asking hard questions, if you're not asking the right questions, if you're not looking at the evidence of the corruption, you won't see it even when it's there >> and strange as it sounds when you talk to voters here it almost doesn't matter that the economy is booming they don't give trump all that much credit for the economy, saying many other factors are in play and instead they talk about different strategies for trying to constrain the president >> no one single person is responsible for the demise or the -- that's happening right now. but he's a poor representative of america trying to keep emotions out of it, i can't -- as far as his delivery is concerned, his entitlement and his arrogance is

really, really appalling >> he's never going to listen to a democrat you need a well-spoken respected republican that speaks evenly, that might say you know what might be a better idea, let's do this instead and just keep him off the crazy path >> and former president obama after president trump's been on the road in the dakotas working on senate races, former president obama is going to be here at the anaheim convention center tomorrow to campaign for half a dozen democratic candidates for congress. a big chunk of what democrats need to win control of the house of representatives is being fought out here in california, guys >> are we going to be hear from president obama, john? >> yes, you know, he gave the speech today, sara, in which he laid out of some of the themes of the democratic campaign, the

democratic argument. he's endorsed many candidates, but he's going to get out on this stuff and the large crowd he's going to do here for those democratic candidates is part of this push to really get the democratic turn out up. we've seen in special elections democrats have been superior, but they really need that energized this year, and president obama is going to do it again >> john, thank you all right, up next we're going to talk to the ceo of surep sarepta. we'll be right back. us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps.

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sarepta therapeutics, one of the best performing stocks on the nasdaq and here to talk about what is next for that company, welcome to you both. take it away >> one of the main drivers why your stock is up so much this year is of course your data update in june through your gene therapy program for muscular

dystrophy, showing really remarkable results for just a few patients that was recently put on hold by the fda. can you give us an update where that program stands right now? >> sure, to your point there's a couple of things we need to do this year. we've dusted three patients as you know, we've had extraordinary results and we need to dust more children we're on hold in part because of the manufacturing hold with the supplier we fully responded to it fda from our perspective, our goal and believe is we'll be off very soon and it shouldn't affect the timing of the things we're going to do. the real significant things we're going to do right now is getting the fund for the nfundin the path to the community. and we want to be in a position to start dosing children in hopefully what will be our registration trial or approval trial if it works by the ends of the this year, and we have a big ambition to potentially be to

the community within two years thereafter >> what kind of messaging are you getting to the fda how they're taking that meeting pretty soon. >> there's two things. first i won't know what their tone is until i get in front of them and specifically very soon. i will say the tone has been brilliant and very innovative. so back in july the fda under dr. gottlieb issued guidance to be innovative and help children. and one of the significant issues in that guidance is manufacturers like sarepta are told we need to really think about our very first trials as potential approval trials and build them that way, which frankly is brilliant because it's consistent with our goal. >> and there's also competition in this space of course from phizer and solid bio how do you look at the

competitor snz. >> competition is wonderful. thankfully, i don't have the ability to stop it, so it makes us better. we are in the lead but there are other credible programs behind us if we can't work fast with a sense of urgency, the community would benefit from that. we have great results so far and our goal is to frankly be fueled by competition to hopefully ensure that we have the most elegant program and we're in the lead and that we can get to this community as fast as possible. >> we're going to have to have you back to talk about prietsing because that's a huge issue. we'll leave it there for now >> thanks to you and doug, thank you as well. with a few minutes to go before we get to the closing bell, 15 minutes in fact, let's take a look at the broader averages here you see we're having a down day and it would be a down week as well for the nasdaq and i guess

for the s&p. >> down a quarter of a percent for the s&p. coming up we've got more from my interview with the ceo of mondelez his thoughts on tariffs and president trump and some of the emerging market crashes. that's coming up on "the closing bell." we'll be right back. your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way.

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campbells soup is now down 20% over the last couple of years. it's the mystery stock we first told you about and now seeking to replace the entire board of directors, that's right, all 12 and they are all up. cnbc's leslie picker has the latest on what's the beginning of a potentially nasty fight >> and it could go on for months, david. shares of campbells only marginally up. it's a rare move for the hedge fund which hasn't fought in a proxy contest in years when they nominate directors, though, they've tended to only unseat a few members rather than the whole board. but in a letter today they say the firm was left with, quote, no choice due to what they called the board's persistence failure to change. it's one with a high hurdle. the campbells voting founder

owned more than 40% of the shares outstanding one shareholder is standing up together they own about 8.4%. but mathematically it's likely the activists will need to turn at least some of the family members towards their side because it will be difficult to corral such a large portion of those remaining investors to vote their sway, and they need a large portion of those voting investors. campbells said it would review the slate. in the meantime the company will be focused on implementing its own plan, they say, which they say will optimize the company's portfolio, divest certain businesses and pay down debt for the reduced costs. lots of stuff going on there >> the fundamental question is what does he want to do, because the company is in rough shape no matt matter who's on the board.

>> it is much more focused on the belief at least in the third point camp that this is not a board that can successfully implement and execute on the strategy they've setout, and lobe does not believe they should be in the position to pick the next ceo. he wants to have this board which he is recommending do that and i think a lot of that will end up being the blocking and tackling they need to do, sara not necessarily this idea kraft heinz and going to be there and say we're going to buy it. >> in order to bring the company to the negotiating table and let them know that they're serious, and, you know, between now and the annual meeting or whatever the certain case may be they come to some sort of agreement, some sort of settlement, and it doesn't necessary get to that point where they're soliciting shareholders >> so the food space is complicated right now, and

there's very little growth if any. that's what the interview with mondalez is about, which you'll hear later the recipe has been sell yourself or buy smaller faster bearings which is something campbells has done but hasn't seemed to work it's going to be an uphill battle they've got a snacks edition, which is growing nicely but they've also got the soup business and a pretty complicated distribution whether loeb succeeds or not is this going to be an acquisition target i'll bring some kraft heinz comments hitting the reuters tape he declines to comment on possible campbells soup acquisitions, says they're still considering mma deals, which brings up the question kraft does have to do a deal, right? >> it's been quite a while

many people believe they would potentially be interested in campbell, but that does not seem to be the focus. it was not at the board when they deliberated and came up with the plan they have. and it doesn't necessarily seem to be front and center for mr. lobe to your point, leslie, it's an uphill battle for loeb just because of the votes you need 70% of the votes cast given his ownership and the family's ownership you'll assume they come in somewhere between 35%. interesting on his part to go here on a deteriorating interest >> and deteriorating stock price. you'd be looking at a level that they saw, you know, just earlier this year. it wouldn't be a premium to where they had historically been trading necessarily. and also loeb has been on the record or there have been discussions about him wanting to sell the company if you're a shareholder is that

what you want to see happen at these prices it seems like in his letter today he's steaken a step back from that and said actually if we take a shot at the board a sale may not be better for us, but if we don't potentially a sale will be better because i don't trust this management and i don't trust this board we've got more "the closing bell" after this dow down 91 points, six minutes until the close.

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all right, strong job growth but not officially strong market as we end the day here and the week the closing bell they ring the closing bell longer than they ring the opening bell the second hour of "the closing bell" starts right now and welcome to "the closing bell." i'm sara eisen in for kelly evans. david faber will be rejoining us in just a moment lower across the board in fact is in the s&p 500 health care was the only group to close higher pretty broad-based declines. dow closing about 77 points. the s&p 500 down about almost a

quarter of a percentage point. the tech got hit hard this week. russell 2000 index of small caps held up, though, closing flat. coming up this hour you will hear more from our interview with the ceo of snacking giant mandelz, his thoughts on president trump's trade tariffs and of course what's happening in the emerging markets, specifically china what they're seeing on the ground but we've got breaking news right now as it relates to trade and josh lipton with the story >> yes, there's some news on apple here i can confirm that apple like a lot of other companies did formally make some comments outlined in a letter, just how exactly the company would be affected, would be impact bide some of these proposed tariffs and my understanding what apple told the ustr is that if these tariffs did go through, if they

did, there would be certain products they believe could be impacted and what i'm told is they highlight some products and some very popular products including the watch and air pods you'll recall tim cook on last kernings call late july said, listen, to date they had not been impacted by these tariffs but cook told analysts at time they continue to evaluate what's been proposed. the ustr just said today the former comment period on tariffs of an additional $200 billion of tariffs on chinese goods actually end yesterday did turn negative on that headline as did some pretty keynotable apple suppliers of course apple is going to have its big show next week, next wednesday in which analysts expect you could actually see up grades to some of these very products we're talking ability here like the watch and air pods sara, back to you. >> we were just having a debate how exactly apple gets hurt.

obviously if china retaliates all those iphones that are sold to chinese consumers, that hurts there because it's 20% of apple's sales. but what about ton the supply side, josh is the risk here as president trump goes to taxing all imports on china effectively all the iphones get taxed because that's where their assembled? >> i think the risk there, at least what i'm hearing right now is that the risk they're outlining is they're outlining as cook said he would, they're continuing to evaluate all these proposed tariffs they're outlining in this letter the risk of $200 billion we talk about in chinese goods and what they're stating here is an outlined hypothetical of what that means the 20% you mentioned is greater china. they don't break out mainland china specifically analysts estimate approximately 15% of annual revenue.

it's so interesting to talk about that relationship because apple needs that market. apple sells a popular product in that market, which obviously employs millions of chinese. so the question is how much is beijing really want to hurt apple. it's interesting, and it'll be interesting to see what cook has to say about some of these very products on the 12th of next week, sara >> got it. thanks for clearing it up, josh. josh lipton covering apple joining the panel today we've got cnbc markets commentator mike santoli as always, and on a friday cnbc contributor evan numar. barbara duran is also here for the conversation trade really stole the show after what was a very strong jobs report after the president threatened to go all in on tariffs. >> you got that sort of predictable wobble in the dow and it fought its way back up. i think the muscle memory is

pretty clear here, you do get a reflex lower when you get an escalation of the trade wars but then we remember these have not been lasting or deep declines so that's why i think it's still a market that seems a little tired and seems a little susceptible to bad news. but every day this week it's some reason we were selling in the morning. emerging markets status, techs selling off and today it was tariffs. it didn't really get there so it still seemed stalled out but trade, no doubt, if it's escalating without really a negotiating process the market tends not to like that and that's what at least the threat is right now. >> are you surprised the market didn't go lower on that headline we're you're talking about $500 billion worth of imports from china. >> that's significant. but i agree with you, mike, that really the market is used to this i think longer term we have a big problem because morgan stanley has actually done some interesting work on this when you're starting to get to

300 billion, $500 billion, you're taking a chunk out of global growth. i think the bite will come next year and we don't know which companies, which sectors we can take educated guesses, but we can start to see things like this. apple may be one offs, but we'll continue to see earnings in the strong economic growth, both consumer and business. >> going to stay on this subject for a minute she has more for us on president trump's china tariff plans >> well, david, if president trump makes good on this threat to increase the tariffs on 267 billion in additional goods it would essentially mean that almost all chinese imports would be subject to additional tariffs. now, the president made those comments to reporters while he was on air force one he was traveling to north dakota for a rally where he once again accused china of taking advantage of america >> we have to be fair.

we can't let china take our $500 billion a year out of the united states and rebuild itself. >> the administration has already imposed tariffs on $50 billion in chinese goods, that happened over the summer and right now it's weighing whether to move forward with tariffs of up to 25% on $200 billion of imports from china. now, technically they can take action at any time and the president told reporters today those $200 billion are quote in the hopper and that a decision could come very soon. and trump also said that tariffs on the additional $267 billion in goods will depend on how china responds and guys, china has already threatened to slap tariffs on about $60 billion in u.s. exports. we'll see if they up the ante. we've also got a copy of that letter apple has sent to the u.s. trade representatives office discussing the impact of the $200 billion of tariffs on

their products in the letter apple says that it could result in higher prices for consumers. and it does cover a wide range of products from the apple watch to the mac mini, finished products that consumers buy here in the u.s. as well as inputs that apple uses for its u.s. operations ranging from logic boards to memory modules and other parts. so again wide ranging impact from all these tariffs >> are you suggesting that apple weighing in, ylan, might actually have some influence in washington and on president trump's decision >> well, there's some 4,000 comments that companies and individuals submitted to the ustr we're trying to wade through many of them and search for the relevant antidotes but certainly a big company like apple could have some impact and it's certainly not the only business that has come out saying that these tariffs could be incredibly painful. >> evan, you've been listening

to this. we haven't gotten you into the conversation any thoughts or just continued concerns about escalation? >> i think the equity market thinks trump is bluffing on this what we see is trump puts these tweets out and headline numbers out, 260 million and now promising over $500 billion worth of tariffs or rather on tariffs. and then they wheel larry out. then kudlow comes out. and by the way, we've been in this cycle now for five or six weeks. and i don't think the cycle is going to go away and i think what we see it's going to get harder for trump as things progress. because we saw with canada, basically canada told trump, you know what, we're going to take our time here. we're not going to rush to agree to a deal. and you know what price canada has paid so far?

zero it's going to be very interesting to see what happens on canada to see whether trump is serious about the repercussions on all this. if i'm the chinese right now and certainly that's what equity markets are thinking, he tweets out these big headlines. >> he's put in place everything else he's threatened on the tariff front >> if you believe for one second he'll actually impose $500 billion on tariffs -- tariffs on $5 billion worth of goods and watch the stock market decline by 10% in a day and he won't get freaked out more than the chinese, i'll wait for that day. because i'm going to tell you he is much more worried about that than the chinese >> let's dive into this apple question now that we have received that comment. on the phone joining us tom forte, analyst at d.a. davidson, covers apple tom, now that the 200 billion is

out there and the comments periods are public and now there's another 200 billion on imports that could potentially get taxed how vulnerable is apple? >> sure, if you look at apple and look at their exposure i think they have risks on two fronts one to the extent the tariffs increase the price of their products to consumers. although, i would argue they could offset that to the extent they've got brand power and consumers are generally willing to pay more for their products and two and also important they generate a lot of rev nigh by filling their products to consumers in china so i think there's potentially two risks to apple one from higher prices and two from an escalating trade war and that having an negative impact on their sales into china. >> you know, barbara, apple is certainly a well-known name, but it's not as if they're alone here there's thousands of comments. i don't know how long it's going to take it they want to go through them all before they

actually impose the 200 billion. but when you get to people's air pods, is that when it sort of ends >> right, with consumers china has been smart with retaliatory measures they've gone up to the farmers, the trump base and now their next stop would be the consumers. my worry is they do retaliate, which they will, if trump proceeds to more tariffs it could be things like a boycott of american goods. it could be made in china as opposed to made in america i think there's unintended consequences of risk i think trump is capable of doing this next batch of 200 billion. >> he's basically betting -- i don't think he even knows whether he's bluffing or not but my point is that so far the white house, whenever the stock market has gotten rattled over the past four to six weeks, whenever it gets rattled larry will suddenly appear on tv or

wilbur ross -- by the way, next time the stock market is down some 300 points on some trade headline, which it will be, see what they do see if steven mnuchin or larry comes on tv. >> it's a clear escalation it keeps going i don't know why you don't believe he's not going to not keep going >> the 200 billion i think we've already kind of -- you've been living with that for a while look at the industrial stocks, look at caterpillar. it's down from 170 to 140. tom, let's quickly come back to apple here i know it's early days here. people need to understand what is sourced from chine wraush wh, what actually is at risk here. but any percentages for the various products they're talking about? >> i think you have to think about as the possibility of call it the midsingle digit, high

single digit increases in their products and i think the one that's been talked about the most historically has been the apple watch, which admittedly is not one of their most important products it'd be a lot more damaging if it was hitting the smart phones. but i think, again, in apple's defense or in apple's favor is that generally speaking they have pricing power, so it may not hurt them as much. fit bit, for example, is another company i cover, and i think they're much more vulnerable if you look at their smart watches their actually playing on the lower end of the spectrum yes, i think it could be damaging to apple and could have a negative impact on companies like fitbit. >> tom, one more question i was trying to get out with josh. aren't effect 11 all iphones assembled in china if president trump goes all in on putting tariffs on imports, doesn't that affect all iphones? >> yes, if you wanted to broaden the spectrum to all manufactured

out of chine consumer electronics, then, yes, that could have a much more negative impact on apple and on others, as many companies are having their products made in china so, yes, a broader escalation could be very problematic for apple. >> final word to you, barbara. you know, you said at some point this will become a bigger concern for global growth. will we know when that point is? >> no. we'll know it as we start to see reports from the companies you listen to earnings reports, how many companies mention the impact of tariffs. either they said we're not seeing it yelt, we don't know, there's some impact. but basically they don't know yet. >> they are seeing a stronger dollar, which is in a lot of the emerging markets and this plays in a bit >> that's also another factor irrespective of the trade tariffs. if these tariffs go through we will start to see them in the earnings report.

>> all right, thanks to tom forte for joining us barbara, as well, thank you. >> thank you up next more of our exclusive interview today. find out what he says about president trump's tariffs and how emerging markets are impacting that business. plus investors have been turning to defense stocks as a safety play this week. we're going to get the fast money trait trade on this industry that's later on "the closing bell." and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business.

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earlier today i sat down exclusively with mondalez ceo dirk van de put. of course, i had to ask him about emerging markets because they get about 30% from overall sales. you're at a time when emerging markets are facing some turmoil. you're pretty exposed to the emerging world how painful are some of these crashes going to be? >>ites kind of normal. i've seen 100% 200% valuations

two, three years later it comes back usually it is riding out the storm, i would say. and not to overreact and pull back and say i'm not staying in this market. and since we have a very diverse business at the moment, we've seen the brazilian dollar or turkish lira, they're going to van effect on the business but it's not going to be substantial and not going to affect your outlook on the coming months >> do you see shifts in consumer behavior in some of these countries? where do you see some of these changes? >> brazil is big market for us and the whole turmoil with the turkish strike and i think a little bit dissatisfaction with the government and where we are all going, that's reflected in how the consumer feels about buying there day to day products so we do see some effects from that we're less affected by that than some of the more expensive

goods. but, yeah, you feel it and i would say at this moment for us brazil is the one the most to watch. >> what about china? what are you seeing in economic behavior and patterns there. >> china is booming. they buy more than anybody else online china is also a very unique market tathat we need to adapt to and need to learn the big trend there is that the chinese companies, it's the big food companies that are not doing so well. and so we need to learn to adapt to the chinese consumer. they're proud of what we do. and one of the examples we did that got a lot of press is we launched an oreo wasabi and oreo spicy chick mcen but that's the thing, we need to learn what the local consumer is all about. the chinese snacking is going to be the biggest growth in the coming years >> do you worry about boycotts

of american products or other reparations of the trade war that only appear to be escalating for the u.s. and china? >> we produce largely in the local markets. i hope that we'll be appreciated that we are producing there and using local ingredients. so we don't see too much of an effect at the moment we don't feel a consumer's negativity towards it. i think the risk is because of tariffs or barriers that commodities will start to rise, which will lead to inflation as an effect on the economy and as a consequence. >> and do you support the president's efforts to level the playing field? is the business trying to grow in china that is being beaten by local companies? >> i appreciate any company that is trying to do what's best for the country. so i also believe in free trade,

so i would prefer there is a solution that does both. but overall i think we want to be as local as we can be we want to be connected to the local consumers. we want to produce in the countries, and so we will support any country that is trying to make sure we have local employment and local production >> what about the american consumer what are you seeing right now in terms of willingness to spend? we just came off of a great quarter, 4% consumer spending growth is that going to continue? >> i think it is i think there's a very positive sentiment with the consumer at the moment we clearly see it in our categories, they're accelerating biscuits is growing quite nicely gum, which was a not performing so well category is up so, yeah, i think there's going to be another good quarter ahead of us. i see a lot of positive sentiment, a lot of confidence and we feel it ourselves >> leave you on a positive note there on the state of the u.s. consumer, which he has a pretty good feel for. just in terms of the business,

overall, this was van de put's first time really coming out to investors. the stock has underperformed like so many of the food companies. and he's really laying out a completely different vision for this company in particular, which is why i find it interesting the stock went down, prioritying top line growth over earnings growth in sort of the last era of all the packaged food companies because the problem is they all emerge and cut costs down to the bone and now they have trouble growing. so he's trying to turn that around completely and sort of talked through some of his efforts on that front, focus on local brands and not just the power brands like oreos. go into more channels like convenience and discount stores. >> yeah, the market herears that and sacrificing prices for that purpose at a time when tay seem to have a bit more power over the brand.

2.5% makes sense, but i don't know necessarily changing the overall kind of field position for the stock, is it's up off the lows but the entire group is still -- >> this one in particular gets hit on emerging market turmoil because they are the most exposed. so the strong dollar hurts this business and what otherwise is a strong section of the overall food market, which is snacking, which is growing better. i mean they are in much better categories than say a campbells soup which is trying to sell the condensed cans of soup i brought some wasabi oreos. they're spicy. i'll bring it for the end of the show >> what gets investors excited about growth like this, always at risk of changing consumer taste and all those kind of things >> innovation, i think

you just have to speak to a younger crowd. look at oreos. oreos has done really well, and doesn't fit into health and wellness contrary to, you know, that's the only thing working right now with consumers they've got good marketing and mr. van de put said we're doing 40% on our marketing you have to speak to consumers, position them in the market and continue with innovation like new flavors that create buzz and that speak to a younger generation and i think, you know, you're starting to see it around the edges but clearly these stocks -- >> you like the wasabi >> i love the wasabi >> but you didn't like the buffalo chicken. >> neither of these flavors are here what's working here are the basic and the thins, chocolate covered thins are apparently doing well it's fun to cover snack companies. it's what keeps me going >> i don't nack ever >> that's why you're so lean

up next the fast money traders are going to elus whether they are playing defense with this industry plus marijuana stocks trading higher today have been soaring pretty much all year, but now the sec is coming out and warning investors about the rise of fraud in the cannabis industry. we'll have the details for you coming up. uch. uch. purchase protection can help you replace small things that get damaged along the way. another way we have your back. the powerful backing of american express. don't live life without it. many small businesses, from kitchens to factories to contractors, rely on their equipment to serve customers every day. when equipment is broken, it means lost revenue. trusted choice independent insurance agents offer special protection that could help replace or repair damaged equipment and provide lost business income. they represent multiple insurance companies and customize coverage to help businesses get back to work. announcer: to find an agent, visit trustedchoice.com.

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on a roll this month guys, take it away >> david faber, i mean this is like can i do like a mini faber report here? we're never on-air together. i've been on here for like 30 years and this is the second time it's incredible. >> we're combined like 70 years on the air >> and by the way, great picture on the u.s. open dude, it's like david faber. >> she's awesome she's my favorite. kate ledecky >> ups just issued a great report, a name we never talk about letter b nainitiated witha buy. naysayers will say valuations are stretched. they've been saying that for a last five years. gandhi could be president in this country and defense spending goes up despite valuations it might be on the wrong side of things.

>> what are we looking at, maybe 20 times earnings on maybe lockheed obviously one they were facing some issues with f-35s i think the missile system obviously is a strength you have right there, and some people have been looking to upcoming election, that might actually do something. i don't expect it will we're not going to likely get that either way. so it doesn't seem likely there's going to be any cut in defense spending and of course the biggest name in there also has good exposure elsewhere, and that would be boeing i like all three of them >> how expensive is this group >> it's mostly a premium because of had relative reliability of revenue and earnings stream. whether the business or defense budget itself is going to potentially be hurt by democratic control of one house

of congress, i think perception-wise it could hurt the stocks because you're going to have that story line running through them if in fact look, we're going to be talking about trillion dollar deficits and nancy pelosi is speaker of the house, i don't know it's going to be a positive for stocks >> remember when president obama was running for candidate and elected in november, these stocks troughed in november and were off to the races the entire rest of his administration so while agree with you if it democrats take control the knee jerk would be to sell them, that sell-off to me would be a huge buying opportunity >> thank you we'll see you at the top of the next hour, fast money tonight. they're going to talk to a top technician that says there's one sector that looks so bad it is good here's how we finished the day, the last trading day of the week, in fact. which means about 28 minutes from now we're leaving for the

weekend. yeah, there's the dow, the s&p, russell 2000 this place gets really quiet you can see we ended a day lower on all the major indices and of course lower on the week as well tech really took it hardest the last couple of trading days. and a lot of hedge funds guys complaining to me about their portfolios as usual. >> time now for a cnbc news update with sue herrera. good to see you both here's what's happening at this hour, everyone george papadopoulos arriving at court for his sentencing he's the former policy advisor to trump's campaign who's suspicious conversations triggered the russia investigation. it was a year ago he pleaded guilty to lying to federal agents french president macron and german chancellor merkel holding talks on major european issues from brexit and how to better coordinate on policy for migrants merkel says the two countries share a common approach on migration.

the 18-year-old woman who pushed her friend off of a bridge was arraigned in court. taylor smith plea pleading not guilty to reckless endangerment. she pushed 16-year-old jordan holderson off a 60 foot bridge causing injuries she faces a year in prison and a fine that memorial honors those who have died from injuries and illnesses related to their rescue work at the world trade center site from the year 2001 there are now 177 names on that wall you are up-to-date that's the news update this hour guys, i will send it back to you. >> all right, sue, thank you have a great weekend retail stocks have been red hot this year. but coming up we're going to look at whether president trump's tariffs against china could spell trouble for that industry a lot of handbags and apparel made over in china plus the sec is warning marijuana stock investors could

see their money go up in smoke because of riding fraud in what is fast growing sector

the securities and exchange commission issuing a strong

warning this week to those looking to invest in marijuana stocks in a statement the department wrote, quote, if you're thinking about investing in a marijuana related company you should be aware of the risks of investment fraud and manipulation >> the warning comes after the sec charged cannabis fund greenview investment partners earlier this week with misappropriating more than $3 million in investment money. here's the founder and portfolio manager of cannabis centric navy capital green fund that's a long name >> thank you for having us >> it is a hedge fund, as we point out. you do short stocks. i can imagine you do very well owning them, but does there become a point in which you want to start selling them. >> and i think that time is now in a lot of instances. valuations have gone through the roof in the past few weeks partly because retail got really excited about what's happening

in the space and you've seen a lot of these u.s. listed securities really come with tremendous retail value now and go to valuations that just make no sense >> which would also it seem open the possibility of making promises you can't keep in terms of companies i think in particular one here which was promising sort of a guaranteed return >> yeah, and in general whenever you're guaranteeing a return you're asking for trouble, whether it's cannabis or paper airplanes, it's kind of the same instances here >> you've mentioned retail interest kind of goes through the roof, and you can see the flow of stock promotion i guess happening. and people say it's taking some of the energy out of the crypto space where there has been a lot of promotion how do you actually sift among the real company and the frauds? >> the thing about cannabis is it's tangible and should be something you should be able to model out with decent parameters for us we're very conscious of

valuations and what companies are saying it's a very hard number to really get your head around. so we try to find companies that are trading within pretty tight parameters sort of what we're looking for in the u.s. because the regulatory situation you're able to get really attractive valuations on the private side versus the public companies trading at 20, 2012. >> when you talk about it on a per milligram basis. if i can tell you i'm selling you a 10 milligram edible, well, it doesn't necessarily matter what the price of flowers is it's just an input that 10 milligram input is 10 cents and i'm selling it to you for 4 or $5, that's a nice

margin >> is there actually a profitability slope or curve in this industry that i just am not aware of >> it's an treextremely profitae markets. there's also very much an effect on alcohol empirical data says where cannabis is legal and accessible alcohol sales dropped 58%. so this is direct threat to alcohol. >> do you buy constellation. >> everybody's buying into it. so the thought of a company doing another constellation like deal right now doesn't make a whole lot of sense that's a lot of money without any brand equity when they can do a lot of that rnd in-house. >> what's your top holding >> we really like brand trust.

very solid management team, huge international pressance a international presence and they've got a great product. >> we had them on in the morning. >> i don't know about that one >> there's a lot of them and there's a lot more coming. >> thank you well, president trump's ready to slap another round of tariffs on $267 billion worth of chinese goods which u.s. companies would be hit by of course the u.s. consumer and fashion week is also upon us in new york city we're going to talk to the designers behind the brand badgley miskcka.

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♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. president trump saying another round of tariffs to the $267 billion worth of goods, are quote, ready to go that would be in addition to the tariffs of $200 billion worth of goods. which companies could be hit the hardest by all these proposed tariffs. >> that's right. the latest proposal list of u.s. tariff could hit u.s. retailers like the ones in this shopping district pretty hard things like leather handbags and shoes could end up costing more. that's because in 2017 china

accounted for 41% of apparel, 72% of footwear, and 84% of travel goods imported into the u.s. the items on the proposed list include handbags, luggage, leather goods and apparel, furniture, tech sales like wood, yarn and cotton. the american apparel and footwear association says that an american family of four would have to pay an additional $500 per year on things like clothing and shoes if there's a 25% tariff imposed on those items. a lot of retailers are speaking out including trade groups like the national retail federation and hundreds of u.s. retailers including footwear brands like nike and dsw they've signed letters urging the administration to reconsider also testifying during the public comment period. she it tells us most of her handbags are made in china and tariffs would hurt the u.s. employees and customers.

>> even if i were to make in the u.s. my prices would be 25% higher, i'd be importing lots of things from overseas and even when i ask my customer the question do you want to pay this if i make it in the u.s., the answer was no. >> she tells us that should the tariffs go into effect they are planning to cover those costs and absorb those kaulcosts for . >> aditi, thank you very much. big story for retail now they may get taxed on all those imports anyway >> yeah, and kind of unlikely their going to get a bail out package kind of like the farmers did. you go through the industries and you run out of room to buffer >> eta would have dealt with a lot of this, raised enormous amounts of revenue for tax cuts. >> the weird part about this is i think donald trump still has this idea in his mind that the u.s. can actually manufacture and has the capacity to

manufacture many of these things and most of these industries don't -- they don't even exist in the united states anymore there's no source for manufacturing sneakers anymore maybe that one factory, i don't know if they're still in business in massachusetts. which company was that >> new balance it would be a major shift in supply chains. >> i want to get to josh lipton. he's got a news alert for us involving elon musk. >> more news here on elon musk cnbc can confirm here that the u.s. air force has apparently started or begun to look into elon musk's pot smoking during that joe rogan podcast we've been talking about here on-air the issue here apparently is that spacex remember where he is also ceo is a government contractor and marijuana use would be prohibited for those with government security clearance. so potentially here another headache due to the podcast and what you're seeing right there,

guys >> got it, josh. thank you very much. because he's a government contractor >> yeah, spacex is a contractor. so it's not really a tesla issue. >> now sec is looking into his tweets and air force is looking into his pot smoking new york fashion week kicked off on monday. up next designers mark badgley and jane mischka joining us with their kes taon the consumer and retail market. "the closing bell" will be right back you're still here? we're voya! we stay with you to and through retirement. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement. (sighs) i hate missing out missing out after hours. not anymore,

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fashion week is under way here in new york and our next guests are celebrating their 30th anniversary on the catwalk tomorrow joining us right now is the team behind badgley mischka, mark badgley and james mischka.

welcome. >> good to see you we look at a lot of the retail stocks here and they're having a terrific run how do you guys see the consumer right now especially luxury consumer is it as strong as what we're seeing in the market >> think it is strong. you know, consumers' confidence is the highest in 18 years we've all been hearing about that which is quite fascinating and we're finding that it's really translating into retail sales for us as we came off the best year ever this year which is kind of amazing after 30 years in the business which is a lifetime >> i think we all work twice as hard to do those numbers and to get where we are today, but it's still happening. we have the right product and the right price the consumer is so sophisticated and savvy now that you really have to be on your game, but she's out there >> you still have a lot of exposure to department stores? >> we do a lot. >> i wonder how much your business ebbs and flows with how the department stores were doing. they were doing terribly last year and have sort of come back. >> they've come up a bit

there are so many other ways that we fill in the gaps now and we do some of our own retail and of course, the internet has become, as we all know, huge, and it's made it more difficult for the retailers. >> the internet is huge, amazon's huge, and i'm always wondering they appear to be building an apparel business with private label and then working with other brands. j. crew is the latest this week. >> right >> that resisted the push to sell on amazon and now it will go directly. i wonder how you see amazon changing the apparel market and whether they have any kind of stake in luxury right now. >> i think luxury to us is still a little far-fetched >> on amazon. >> on amazon >> you seem surprised at how strong things are. >> i'm happily surprised because, obviously, it bodes well for our business and it was uncertain last year. last year was a very difficult year at retail and this year it's much, much better and that's become really important >> do you worry about the

distribution that you're still using and the idea that we're having a good year this year and ultimately the demise of the mall is probably a real thing and the department stores seem to be disadvantaged versus e-commerce. >> we try to work with our retailers closely and we try to give them a competitive advantage as well by giving them a different product. there's never a pricing advantage at the department store just because of the way that they're based and we also look at our other avenues of sales, as well and other distribution channels such as the internet and such as our own website and try to make that exchange different so if you want to shop at a store, you shop in a store and if you want to shop on the internet you shop on the internet and it's a different experience for each. >> it depends on the classification our couture customer is more mature and established and she's 40 to 60, whatever, and then our mid-range tier which is our big evening collection that we do at

neiman-marcus and saks fifth avenue and nordstrom she can be from her 20s to her 50s. we're expanding in a huge way in china and building a lot of stores there, and we're always looking for categories of expansion that makes sense to our brand where we're laurinincg a fragrance tomorrow night for our 30th anniversary and zee an enormous shoe business which is international. the designer finds ways to make it happen and make it work >> and the collection, congratulations on the anniversary and on the show tomorrow thank you for coming by. >> thanks for having us. >> mark badgley and james mischka. it has been ten years since the collapse of lehman brothers. whether another financial crisis could happen we'll talk about that next >> terry duffy will join "closing bell" on monday in an exclusive interview. he will discuss the anniversary

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all right. let's take a look at how we finished up the week on wall street, closing lower and we were lower on the week and the

nasdaq down a quarter of a percent and tech was the story, mike, of the week. >> yes that was flattened and the s&p down 1%. again, it's up twice as much as the whole market and now it's down off of that, and it seems right now just a little bit of a reversal, a pullback and a reallocation, not necessarily -- >> i wonder how much of the pullback today had to do with the fact, evan that when we get really strong numbers and we saw the wage growth pop to a post-recession high, the worry becomes the fed will tighten and take away. >> the ten-year and the 30-year were higher earlier this year than they are today. so -- >> you have a pretty good move >> the bond market has been remarkably tranquil. >> under 3%. >> yeah. for the ten-year i think that and tariffs i think will be the story of the next few months >> next week does mark the ten-year anniversary of the collapse of lehman brothers. we will have a full week of

coverage here on cnbc including the premier on wednesday, 10 :0 p.m. eastern time of the documentary "crisis on wall street "the week that shook the world. there will abe lot to talk about. >> i can't believe it's ten years. >> where does the time go? >> including this show. >> time flies when you're having fun. have a good weekend, everybody "fast money" starts right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square. i'm melissa lee. your traders on the desk are carter worth, tim seymour, and guy adami. >> it was the hit heard around wall street. elon musk smoking weed and drinking plus energy, one of the worst-performing sectors this week, but the chart master says it looks so bad it's good.