80 truckloads of water at all times at the holding facilities. >> thanks for watching power >> closing bell right now. >> it's time, a former tesla says the stock is no longer investable he'll explain why >> shares of boeing easily outperforming the market

suppliers unable to keep up with demand, what it means for boeing's future and finances coming up. it has been ten years since the start of the financial crisis and former ceo will join us to discuss warning signs for the next crisis. the closing bell starts right now. good afternoon lots of store rirs to get to stocks having their best day in about two weeks or so. the dow was up 162 points. it is up 140 points now. we have had a steady rally

throughout the day >> the s&p are also up as well it is after falling four sessions in a row. first, massive evacuations in the car line flas as residents brace for hurricane florence president trump holding a meegt right now with members of homeland security and fema you can see it is pretty busy behind me. you have cars two or three deep in each lane nothing like i saw where the lines were really around the corner it has been an evacuation that has been very orderly. we are two days ahead of the storm. gasoline supplies right now, sure, thatere's a lot of demand here everybody seems to be getting what they need no gas line fights or anything like that. you see people filling up the

red gas cans with intentions of hunkering down and staying some think they will be able to make it. it is a tricky call if you speak to authorities they are saying it is very important to take safety seriously. you can see traffic is definitely heavier ton way out than it is on the way in mandatory evacuations have not gone into effect just yet. you some people try to go gauge the storm themselves, listening to the reports, seeing if maybe it will weaken or what not the authorities on the ground and federal level have said don't stay to protect your stuff. lives are more important still, we talked to one resident who had to leave but reluctantly. >> we are probably going to have to start over along with a lot of other families.

the one that is will be trapped here, i know seven families that don't even have a car to get off. they going to board up their windows and pray for the best. >> reporter: so certainly an issue here she said if it wasn't for her three children she would stay with her friends and those folks that have to stay here she said my life is here where else would i go? i said even to risk it she said if i didn't have my children i would stay. a lot of personal decisions are being made everyone will heed the safety warnings and take safety measures first earlier today president trump echoed the sentiments of north carolina and south carolina governors declaring a state of emergency. he has done that for virginia as well >> thank you our next guest says hurricane

florence is setting up to be an estimated $11 billion vent joining us to talk about the impact on insurance stocks randy, analyst at b.riley fbr. thanks for joining us. insurance stocks trading lower and the group is largely flat. why? >> thanks for having me on i didn't quite get the question there. we are having technical difficulties on my side. we think this event will be similar in size to hurricane hugo which happened in 1989. we estimated it to be between 6 and $11 billion. we'll watch it very carefully. right now it is shifting north of wilmington.

we will watch the damage assessment very closely. >> what's the swing factorhere >> i'll be talking about insurance stocks turning now to the latest, new headlines that beijing will seek permission from the world trade organization to sanction the u.s. we are in washington d.c. with the latest >> seven billion dollars, that's how much china says the u.s. should be paying for violating a wto agreement. it dates back to2013 in this

letter kline that said the united states has failed to comply and it is very likely that the u.s. will challenge request for sanctions. he threatened to pull out if it doesn't shape up nafta negotiations are still going

along. have they ever put sanctions on the u.s. before? how unprecedented could this be? >> there are about 15 trade disputes before the wto now. these are years in themaking >> you could expect trade and legal international challenges to exist for the next several years. >> thank you very much for that. slightly better the turns. what does it all mean?

good afternoon to you all. let's start with you shannon in terms of this trade. it continues to be a negative. ton flip side we are seeing pretty attractive u.s. states. we have more on that again today. >> absolutely. i think the things to think about here are continued economic strength. i think we have seen the probability of a rate hike in december increase over the last several weeks. it is not surprising given the small business optimism number i think we are continuing to see parts of the market like industrials that are set by these. technology stocks have been doing a bit better over the last couple of days social networks still under fire i think we are seeing the renewed strength in technology and evidence that this economic expansion can continue longer than we thought. >> james, you got the yield ton

two-year treasury. how concerned should we be and for the investors that have part of their portfolios invested what do they do now? >> well, we have a two year treasury that is roughly double what it was twoo yearsago. we have a couple more more it moves forward. >> steepening a little bit today? >> yes we see virtually the same

intensity as we do on the long end. all maturities were up several basis points they are obviously close maturities i think that the job of how we deal with all of these will fall squarely on the shoulders. the idea of why the distorted signals shouldn't put the fear of god in an investor will be the feds job to communicate. it is the feds job we need to kplun kate the issue at all. >> we talked about potentially the need to take a more defensive tone do you agree >> i don't think the economic

data points to that. where does that leave us into staples, utilities, wreaths? none of those seem all that attractive it will start to slow. i think it will be in the names we have seen that have lead this so far we like this here as well. >> thank you all for joining us today. okay we are going bring back randy to taukt hurricane florence's impact. glad we were able to work out the technical difficulties let's talk about what it is for the insurers that you do cover and how you would expect it to move coming into the rain and out of it. >> yes i can hear you now thank you. we think that hurricane florence will model something like hurricane hugo which hit back in 1989 it was about an $8.5 billion

we have been watching it closely. land fall looks to be north of wilmington it is not a terrible place far land fall. wind speeds look little bit lower. it could change and we watch every pupdate every six hours it is the large cap named that have the most exposure we also look as a group they traded down about 3 to 4% ahead of this. the wind speeds have come down we'll watch it closely usually the stocks trade down and trade up if the event is not as bad as expected some times it could be worse than expected. our expectation is the stocks stay under pressure until we see kind of an all clear breaking up ahead of land fall >> this time last year we were cleaning up and recovering from three very big and very

disasterous hurricanes it took a huge earnings hit out of the insurers that had exposure to that were they able to offset any impact from a storm like this if it is as bad as could be predicted? >> yeah. that's a good question the answer is yes and no a lot of capital from institutions and pensions globally has come to take the place over $100 billion of catastrophe losses companies can raise prices it is hard for the travelers of the world to make up for it enough in price. we think the compression on this, all of it should be easily absorbed and some reinsurance programs will be triggered there is plenty of capital out there. i don't see this event as a big game changer for the industry.

last year there was three major hurricanes it barely made a dent in industry capital >> step back far moment. what do you tli about the sector and what's your top pick at the moment >> so life and mortgage insurers, we really like the housing markets for life insurers i think they are relative to what we have seen. we have neutral ratings on all of the stocks i just discussed i think that influx of capital prevents the companies from earning the losses back. i think the property casualty industry will be kind of a soft pricing environment for the foreseeable future where margins are compressed people trade stocks around we try to help you understand that through these storms. it's taking a step back. i think the industry is

challenged by margin compression. >> thank you for joining us today. still ahead on the closing bell, billionaire ray dalio out with a warning for investors, the market call you need to hear coming up. it has been ten years since the collapse of lehman brothers. we'll ask the ceo of century 21 about how the market has changed and steps being taken and we want to hear from you. you can reach out to the show on twitter, facebook oren sd us an e-mail we are back in a couple. making my dreams a reality takes more than just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest.

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welcome back to the closing bell coming up we'll talk to the analysts who made this call. that's in an exclusive to make his case all right. we have been previewing ten years since the financial crisis a look at banks then and now

the total number of banks has shrunk from 8,500 to 5,500 in the last decade. the biggest banks have been resilient. they have only gone from 5-4 in number the same however is not true outside the u.s. where there were 13 banks over $100 million in 2007. there are now eight. it has fallen to 1.3 trillion. there were eight banks over $100 billion in 2007 today only one of that size exists that's hsbc. what about the workings of the banks themselves returns fell from a precrisis average.

higher capital levels weighing those down they are now back to double digits the average last quarter was 12%. it was that costs are down dramatically particularly in the last five years thanks to closing branches and using technology to drive efficiencies big u.s. banks are doing pretty well certainly relative to europe >> the j.p. number you put out there is kind of eye popping >> yes before the crisis about 180 billion now close to 390 billion. so almost doubling if you think about the big u.s. banks today bank of america are the global and most of the

europeans having to focus on spe specialities so u.s. banks have come out much stronger than the others be sure to catch the documentary crisis on wall street, the week that shook the world tomorrow at 10:00 pc.m. eastern time another area, the housing market the home builder up nearly 400%. joining us now to discuss more on the future of the housing market is nick bailey. thanks for joining me. >> thanks for having me. >> from your vantage point how do you see the housing market?

$30 trillion moving and we have also the increase of the millennial population that's double the size of the generation we are experiencing extreme demand household formation we believe will continue to be very very strong in the next few years >>. >> why is that not manifesting in demand for purchasing houses so much? do you think they will have many that are happier to rent in the same way they are when it comes to using uber rather than when it comes to buying a car

they have indicated that they would like to have that dream of homeowner ship so we are seeing the millennials now come to the market and have just as much interest in buying a home as ever before. we also know however that there are things that impact the time frame in which they can do that for example when you look at the average age of a first time home buyer and some of the reasoning behind why it is delayed with student loans and marriages and children happening later in life now we are sitting here in an absolute perfect storm for demand you a great number of people and vast majority saying we want to be a home own tier >> it begs the question, millennial or otherwise. is it ballooning student loan

debt, rising mortgage rates or something else >> first and foremost there's always a major driver when it comes to the real estate market. for buyers it's jobs. it was october of 2000 people feel good about jobs, feel good about where the economy is headed and they feel good about buying a hope -- home. >> what do they feel about mortgage rates >> there is not just one factor. had 77 months of executive price increases and 4.5 price increases year over year we have seen prices come up.

at the same time even with slight increase in interest rates maybe we'll see the price appreciation come down slightly. it's not one single component it's a number of them that come into play. >> before we let you go a quick question for you tax reform, you lawmakers looking to make those tax changes permanent. we have a cap ton deduction for state and local taxes. is it having any impact on home purchases and prices >> i think when you look at that scenario you the effective tax rates that hit each income bracket. of all home buyers 42% were all home buyers and they were 37 years old or younger it may effect a small population

of the overall housing market. >> okay. thanks for joining us. still to come, tanking today. we'll dive into the numbers next later apple moving in the opposite direction ahead of the big project, what the tech giant is expected to announce and whether it could lead to another leg higher or the stock. that's ahead on the closing bell

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revenue in line with estimates. i went public last month it is trading down 21.6% it was perhaps in line with rev flew the eps was 86% lower than last year a look at a couple of numbers. that cap is about 1.7 billion. so on a price to sales it doesn't seem expensive it is that crucial factor that revenue fell and that loss almost doubled, increased 86%. so it is hard to get your head around it is the direction of travel both on revenue and earnings

losses is that what you want to see >> i believe it is amazon, apple, google, others with their own speakers is that going to eat into their market share so we'll see shares kind of falling today it includes has decided to drop the attempt of the takeover of the company. they say risks of a trade war could make an acquisition more difficult. china is trading down about 12.5, almost 13% there was a report of this takeout offer. >> the fundamentals have been certain but the interesting

thing here is if the reports of interest and not of interest is that it was such a powerful consortium u.n. ambassador leading the u.n. security council to remember the nearly 3,000 people who died in the attacks. >> that day taught us a lot of lessons. it taught us the lesson that we can never let our guard down it taught us the lesson that evil exists. it taught us the lesson that we should never stop trying for peace and security in this

world. >> the trump administration taking the third major step this year to roll back federal efforts to fight climate change. it is preparing to make it significantly easier to release methane gas into the atmosphere. the rules requiring them to test were costly and burdensome >> traffic is picking up as coastal residents evacuate ahead of hurricane florence. it is expected to make land fall early friday morning the category 4 storm now is 340 miles wide it is a monster storm. that's the news update i'll send it back down to you.

it was other tropical systems that will soon impact the united states and its territories the safety of the american people is my absolutely highest priority we are sparing no expense. we are totally prepared. we are ready we are as ready as anybody has ever been. it looks to me and it looks to all of a lot of very talented people that do this far living like this is going to be a storm that's going to be a very large one, far larger than we have seen in perhaps decades. things can change but we doubt they will at this stage. we doubt they will be very very far off course the places that are in the way and in the most jeopardy would be virginia, north carolina, south car line folina, that area they haven't seen anything like what's coming at us in 25, 30

years, maybe ever. it's tremendously big and tremendously wet tremendous amounts of water. so we are working very well in conjunction with the governors i would like to ask our administrator who has done so well for us in texas and florida we have something that could very well be very similar to texas in the sense that it is tremendous amounts of water. texas was the one that had i would say to this point probably more water than we have ever seen in a storm or hurricane it went after seconds and thirds we have never seen anything like it fema did a fantastic job and a fantastic job also in florida. we would like you to say a few

words as to how well prepared we are. >> thank you, mr. president. unfortunately hurricane florence is setting up to be a devastating vent in the car line fl f carolinas. the bigst hazard we are worried about is storm surge that's the primary driver. as this system comes in it makes land fall. during the weekend it is forecast to stall out and drop copious amountsov of rainfall the remnantsover gordon passed through over the weekend and dropped a lot of rain saturating rivers hurricane florence as it comes in and puts between 20 to 30 inches more in isolated areas to create a lot of inland

flooding we are supporting the governors with achieving their life saving movements. we'll be focused on helping them execute their response and recovery bill. >> what are the chances that it veers off costs and that the hit won't be so direct what are the chances of that >> unfortunately i think there's quite a bit in the track forecast it is picking up i think the expectation needs to be set with the citizens in this area that if you have been asked to leave get out of the areas that are said to flood and get into an area that can with stand the winds. this has an opportunity of being devastating storm. power will be off for weeks. you'll be displaced from your home and coastal areas there will be flooding in the inland areas as well these will be state wide events.

hazards will be state wide >> you wanted to show us this one? >> yeah. this is a seven day rainfall graphic. you can see the pink areas and purple indicate 20 inches. that's ang average rainfall amounts. you may see isolated ray fall amounts greater >> it has been absolutely fantastic. fema, there's nobody like your people do you have any questions?

>> reporter: [ inaudible question ] >> i think puerto rico is incredibly successful. puerto rico was actually our toughest one of all because it's an island. you can't truck things onto it everything is by boat. we moved a hospital into puerto rico it is in the form of a ship. i actually think that the governor has been very nice. he'll tell you what a great job. i think the hardest one we had by far was puerto rico i think it was one of the best jobs that's ever been done with respect to what this is all about. puerto rico got hit not with one hurricane but with two their electric grid and electric generating plant was dead before the storms ever hit. it was in very bad shape it was in bankruptcy, had no money. it was largely, you know, largely closed when the storm hit they had no

electricity essentially before the storm. when the storm hit it took it out entirely the job that fema and law enforcement and everybody did working along with the governor in puerto rico i think was tremendous i think puerto rico was an incredible unsung success. texas we have been given a pluses for i think in a certain way the best job we did was puerto rico but nobody would understand that it's harder to understand. it was very hard thing to do puerto rico is very important. they will be effected pretty much pretty soon by something else that's on its way, is that right? >> hurricane isaac is tracking

south of the island. we had several thousand people working on long term recovery that shifted to monitor as isaac passes to the south. >> reporter: [ inaudible question ] >> we have it currently. these are all anticipated. we have no choice. this is the united states and it's -- whether it's texas or florida or frankly if it's

virginia we have a lot of contractors waiting. for the most part it has been handled by fema and we coordinated locally. we have food for days. we have emergency equipment and generators for many days we should be in great shape >> this storm is almost like hurricane floyd in 1989. successful disaster recovery is one that's locally executed and federally supported. what fema is doing is

prepositioning the government's assets to support each one of those governors that is about to be impacted. what we learned last year is we need a true culture of preparedness it takes anything from neighbor helping neighbor to the federal government when it comes to correctly responding >> reporter: [ inaudible question ] we have business emergency operation center calls it is to help stage power crews coming in from other states. largely it is fema's job to make

sure the companies can get into these areas to set up their grid we don't own it. >> you have very strong power companies. they are well man ajd in the sense that they are going to be to do a great job. they also have made contracts with other power companies that won't be effected. they will be coming in very strongly so these are really states that have very very strong powerauthorities.

>> you have people that actually go flying through these storms they are brave people but they fly through. i would say everybody should get out. depending where you are you have to listen and get out. it will be really bad along the coast. >> reporter: [ inaudible question ] >> well, you shouldn't be talking about that right now because it doesn't matter. i really appreciate their statement. they were excellent. thank you very much. i think we are very well prepared thank you all very much. >> thank you >> appreciate it

>> we have staken a on china with canada, they want to make a deal very much me, if we make it okay if not that's okay too we'll see if we can get canada into the deal we already have with mexico. we have all been dealing in good faith. thank you everybody. >> that was president trump speaking to reporters after meeting with officials from the department of homeland security and fema as it barrels towards the east coast he did say tremendously big, tremendously wet he has spoken to the governors of south car liolina, north

carolina and virginia. it generates significant and historic flooding saying there could be 22 inchesov of rain in some cases there is quite a bit of certainty. if this will bring state wide events let's get over for more on this meeting involving both hurricane florence and other headlines as well it suggests they need to listen noting that law enforcement might not be able to get into coastal areas saying that they need to evacuate as soon as possible the president saying it would be very risky to stay in that region he was bolster until that. he showed a path of approach to the hurricane to the east coast

and saying that it is picking up speed and therefore their track is getting more and more confident. >> was one of the best jobs that's ever been done. i think puerto rico was incredibly successful. that's a little bit jarring in the sense that it has the enormous death toll and a storm bearing down at this moment. people on the coastline really do need to take precautions right now. >> those comments on puerto rico i'm sure will get attention.

thank you for that i think it's very note worthy. it could have huge economic and business impacts one is because you have flood insurance that's been very limited and very challenged. you had legislation to reform flood insurance which is sponsored by the federal government and it's basically stalled in congress. the otherish s issue is that fos that don't flood it and it could create damage too. people could be walking away if this is as bad as they say >> and it's not expected to change course at this late stage. coming up next changing its tune saying his erratic behavior makes tesla uninvestable

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the stock called no longer investable siting the erratic behavior -- now the are here at post 9 why the change of heart? you're one of the biggest on the street until today >> yes it is kind of unfortunate. we are a big believer in the long-term story. i feel like fundamentals were just starting to inflect i think it's been a big d distraction. we feel like it is tied to some of the departures. >> you say tesla, you always felt will outinnovate. do you think they can do that or not anymore? >> i do.

i think this company will be significantly larger three or four years out the point that you touched on is that it's really the only company in the electric vehicle supply chain that is innovating the battery and that really gives them a big advantage versus the competition >> you have been here for a long time you say you believe in them in the long term. you downgraded from 400 to 300 is this sort of a short-term slightly weak to catch up to where the share price is >> it's a call on management i think that the management team needs to strengthen. whether it is improving the quality of the board, you know, it's potentially bringing in a strong number two to handle some of the day-to-day.

i think the crux was based on his behavior and the fact that 2 kpaechb needs to improve leadership in order for the stock to become investable >> so would you stop being if you continue to see it and you don't see the change in leadership what is your thought process some have come on and said the clock is ticking it has to happen now >> i don't know if it has to happen now i would love to see him sort of come to jesus and behave in a manner that you see with like a tim cook or mark zuckerberg. the risk is if this continues hen the tesla brand starts to erode. if the tesla brand starts to erode then i think it could spell real trouble

for people who are not necessarily in the weeds they may have second thoughts about buying a tesla vehicle >> some point to questions around accounting and whether the company can meet financial obligations in the next six to 12 months. one was a senior accounting officer. what are your views in that area >> i am not worried about accounting or the financials i think this company is making tremendous progress. they will ship over 80,000 cars this quarter it is double from the quarter before they will be shipping over 100,000 cars in the fourth quarter. put it in context they only shipd 100,000 cars they scaling quite substantially. you know, with that i think we'll see that they can actually turn a profit.

i don't have any reservations. >> thanks very much for joining us still a target price we'll be back with closing count down shortly population on the planet.olated ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals. ♪ (shelee) if we can create our own energy,

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welcome back that does it for the first hour of the closing bell. back over to you >> thank you welcome to the closing bell. i'm morgan brennan all of the major averages finishing the day higher stocks settled the dow is off highs of the day but it is still settling up about 115 points at 25971. s&p settling the day higher.

the nasdaq up .6 the russell also higher we'll bring you the latest ton path of the storm coming up. we have cnbc mike santoli thanks for joining us the biggest winner today was apple. intell was the biggestloser. it seemed like a few days of pressure when the old highs were

way back in january. it seemed like enough. you had treasury of getting released because the yields went up a little bit too. banks were okay. i think this market continues to be encouraging in the abstract you say we are 1% below the all time highs stocks were down more stocks down and new lows and new highs. it is enough to stay cautious as well it is kind of a wait and see >> i guess apple was flattering the overall indexes some what. >> tomorrow is the big day we get the flunew iphones. we get the apple can opener, whatever we will get tomorrow. it is a little bit excitement. there was a little bit of doom and gloom. no one wants to stay short everyone wants to load up ahead of the excitement. i'm afraid people doing that may

be barking up the wrong tree here some t analysts come out and try to make a name and say the parts for this aren't coming in. they tell you they actually look better that's what happened with the 8 and the 10 last time maybe that's what's going on here given how things play out it is a more downside here mike pointed out the issues with the advanced decline >> so it's fair to say we continue to shake off around the rest of the world. day in and day out he mentioned this europe closes. >> that worked again today look, there's still pressure in various parts of the world when the u.s. market can look beyond it then it remains. i don't think you would ever say that there's an inflection point

that the u.s. market is kind of spent here you also can't overlook the fact that it's a very selective market, what's working and what's not it's not all inclusive you numbers in the current economic data. it's not reflected there what the market has to say. >> co-chairman rate, what are investors may want to be more defensive in this current market environment. >> right now we have just gotten to the point in my judgment that it's more than the risk return more negative. i would then be in a more defensive posture. you know what your strategic mix is i with would be less aggressive rather than more aggressive. >>. >> that sort of states the obvious. the other thing he said is we still have two years left of this current cycle

>> yeah, a very big picture comment. i also think i agree, it is consensus. it is basically consensus right now. one of the reasons is there's no clock. the last two could be longer than the first seven on the other hand i think somebody that is putting money all around the world in kind of a black box strategy has some kind of inputs that are telling him that there's less time and less value ahead of us than behind us. what you do with that i don't flow necessarily >> your thoughts >> yeah. in the very very near term give wlan will happen and i don't agree with this we have today, i think it will be short lived i agree with ray in the short term i think he is ignoring the fact that president trump and the gop is going to do everything they can to pump these markets up

into november. i think anyone listening to him today, i wouldn't quite do that. it could be up to 86 and could get into a fight or something like that. i think it is a cycle that may never end. >> how >> how are the gop and this administration going to pump up ahead of midterms? >> we quietly heard more about how they are introducing a bill in the house we'll see where it goes. they are introdicing that bill to say these are permanent they have a lot of hair on them. i think we are going to hear more about stimulus. i think we'll hear more about the capital. they will do everything they can to protect the house and senate frankly. >> if they really wanted to pump

up a deal they are saying that is not going to happen >> you're not going win over the folks in michigan and wisconsin by playing nice. i think it's the right thing to do, make sheez deals i don't think he gains a lot i don't think he does it by making trade deals here, not the right ones that's what we are seeing here he is playing cat and mouse with canada >> let's talk about the latest data we have had here in the u.s. it was small business confidence that hit the highest level job openings also hit a record with labor department reporting nearly 7 million openings for month of july. i guess if we are looking for a risk off the back of this, if we start to pressure the feds into more action but that's not this

thing. i think this particular survey is 60%, you know, sole pror pry to ships it is true mom and pop >> i get that it's true mom and pop but one thing is that these are looking to invest more, look to go hire more etcetera >> i think it's where job growth comes from i think what we heard in compensation it was flat to lower but still high levels. is it topping out?

maybe not quite yet. there will be a rate hike on september 26th what does it mean? i think we'll be haunlted by john williams earlier this week saying we shouldn't worry about that with all due respect the markets have a way of deciding that, not him. we have breaking news hey. >> that's right. the fcc sending a letter saying it is pausing the t-mobile sprint transaction clock saying they are doing this pause because additional time is necessary to allow for third party review of newly submitted and anticipated modelling. you see t mobile shares not effected by this this is putting a pause on the 180 day transaction shock clock in this proceeding back over to you thanks very much the stock not really reacting. it is sort of paused

nothing major at this stage. >> saying tremendous doubts. it's not as if you had everybody saying yes, it is a done deal. >> i do think it's interesting they are putting now modelling into place they have seen them saying yes >> and the argument is three very strong competitors can be more competitive for consumers than, you know, two very strong ones and two marginal ones >> we'll see about that. it's open to interpretation. the thing is, number one i'll sea say they are acting a little flippity here. i think it's a cull clurl nightmare waiting to happen. you two cultures trying to say let's get stronger i don't buy it >> conflicting cultures.

>> we'll see t-mobile has done a good job on their own. they did the right thing they brought the right spectrum. they brought the right things. >> let's touch on energy it was of course relating to concerns about hurricane florence, which pushed it higher stocks are included sunoco you think this is one up >> i think i have issues with this people are overestimating global demand here. it ignores this. i'm still worried about immerging markets. i'm talking i'm concerned about demand there i think there's going to be a lot of room for producers to increase production here in the longer term. i'm not a big buyer here

once we get to some of the oil companies i think they have margin issues. we'll hear all about how there is shortages of workers, how there are shortages of equipment. it is really effecting them. a lot of that played out i don't see why we ignored that. we are seeing in energy today. it's a function of the new weather system >> it is especially when you see it jumping today as well as some other refiners kline that is still an issue of course this threat of tariffs coming to that country from here it doesn't look like it is ready to run higher.

what has been happening far while? you get a little bit of a log jam. >> what is your view the lows of the year coming just below the 60 level >> it kind of rescued itself a couple of times. below the mid-60s is when you have to say is some kind of a new phase. >> final thoughts, what's your top sector pick? >> yeah. i still like retail here i love reading the beige book. i think we'll hear more about how retailers are keeping pricing power and everything else we are seeing it might be telling us something purchases have buying power. >> are there specific stocks within that sector >> i think buying quality there is good names. >> thank you very much for

joining us >> thank you up next we'll talk about the role and if enough has been done to prevent it from happening again. a new watch, air pods, but pricing be a concern we'll preview apple's big event coming up. we want to hear from you you can reach out to the show or send us an e-mail. closing bell is back after this break. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.

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click, call or visit a store today. three new bills it is called a tax reform 2.0 we are live with what is in t the -- >> the lower rates expire in 2025 if republicans want to change that in 2.0 by making the tax cuts permanent it is the centerpiece of the new tax bill there's a reason congress went with just a temporary reduction. that is that cutting household

taxes is really really expensive. a preliminary estimate on taxation finds that it would cost $657 billion over the next decade almost all of that coming from permanent individual tax cuts. estimates from outside think tanks forecast an a bigger hit the suggestions run between $3,000,000,000,004,000,000,000 000. democrats are seizing on the numbers to slam the bill nancy pelosi saying republicans will use a massive deficit to justify ransacking medicare, medicaid and social security they have called the cost a modest investment in american families and he has the support of fiscal conservatives like the freedom caucus this bill is expect today sail out of the ways and means

committee. it will head to the floor by the end of the month back to you! question here, tax reform making these cuts permanent i get it you want a stoke economic growth. it is contributing has there been any talk from lawmakers who are historically conservative about cutting spending in other ways >> so they will say that the government has not a revenue problem but spending problem they are not expected to pay for themselves chlts that boost the economic growth came from cutting the corporate tax rates. this is something that is going to cost the government revenue it will lower revenue. they say right now they okay with that. >> just remind us the time line for all of the us. >> the house ways an means

committee will hold a vote speaker ryan has said that he wants to vote on this by the end of the month ton senate side they not expected to take this up until after the midterm elections if they take it up at all >> okay. thank very much. now, the first set of tax cuts many predicted would lead to negative impacts ton housing market that's not been the case it's another sign that the housing market has come a long way. joining us now as part of the special look and cnbc exclusive who is chairman and ceo from 99 to 2004. good afternoon thank you for joining us >> thank you >> what role do you think they played in the financial crisis erupting >> i think fannie mae played the

constructive role for the first part of theperiod that's what we ult platly saw later on they maintained the discipline up until 2007. it joined wall street in what ended up being a terrible event for our country and around the

world. >> well, the seeds of the crisis really came out of the subprim business it changed everything and it created a momentum that sucked along investors >> just to dig into that a little bit more there is the

times article to blame for the financial crisis it is given the fact that you are a critic, what would you say to them given the argument you're making right now? >> what i would say is quite simply we are on the right path in 2004. it lost half of the market share in 2004. we didn't blink. we didn't say this is horrible it is to gain back the market share. very few others would have the discipline to give up 50% of their business we have seen these financial crises over and over again

they are given time and time again by the same things, a focus on how do i get higher yields, a focus on how do i get a greater margin, products that produce a greater margin a focus on growth and market share. if you apply that to sub prime bonds and to mortgages we have seen this before unfortunately i think we'll see it again >> what is your view of how they are now organized? it is still kind of in this limbo state. some think they should be wound down, some think they should be liberated out. they will take an enormous amount of capital. what should we do? >> i think they need to be set back into the hands of their shareholders with the appropriate capital requirements and allowed to function.

i mean they are still the backbone of our housing system they are still operating and very profitably. i think we'll get past the politics and get to the practical and say these institutions are here to stay in one form or another. let's have them continue to serve the public service rule that they had. now, perhaps without the large on balance sheet mortgages but sit the heart of the service they provide to the american homeowner. >> i want to go back to the control that you said you were imposing on the activities in 2004 when you were still ceo had you remained as ceo through

2008 had it remained or are you saying it would have stayed if you remained the ceo >> everyone can write their own version of the future. all i can say is that the management that was involved in 2004 had the discipline and the experience we had been through cycles before i think would have had the discipline to maintain that. fannie had been the hero in multiple housing crisis including when it was imploeded. they were the ones that stepped in there was hardly a blip as a result of that implosion i believe we would have maintained discipline. i think fannie would have been one of the stars of the solution of the financial crisis rarther than a cause of the financial crisis it can sound very self-serving there is a value in have been

people in leadership positions who have been through the wars before >> well, sas you said we don't know if it would have been the case thank you for joining us tomorrow night don't forget to tune in about the crisis produced and crisis on wall street, the week that shook the world at 10:00 p.m don't want to miss that. >> cnbc is in wilmington, north carolina, jackie >> hey, morgan look at this, sorry, out of service. this is at the gas station running out of gas in the last hour if you need to fill up there is a lvsier lining. we have the story coming up after the break. imited plan to the powerful new samsung galaxy note9...

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>> hey, good afternoon to you. when we saw you last the lines of this gas station were three or four deep since then we have sold out of gas here.

these are being taken seriously by people. they are deaf flitfinitely makii way in let's take a listen to what president trump had to say he has a lot on his plate today. >> they haven't seen anything like what's coming at us in 25 or 30 years, maybe ever. >> and most are taking the advice of the state and they are taking measures to get out of town that's the wisest thing to do especially two days out of a storm like this.

it could be the worst we have seen there potentially over 60 years. that's one piece of the story. there are several major pipelines that bring the gasoline up and because of the flooding that's expected from this storm you could see potential delays and the movement of gasoline it could raise prices a little bit. >> we are worried about the storm surge. we are worried about the rain when the storm hovers. back to you. >> it is really notable to see that video and to see you standing in front of a gas station. they are heeding these warnings.

what we have seen in hurricanes past especially in areas that haven't experience add major hurricane is that folks don't always do that why do you think it seems to be the case where you are in the carolinas? >> reporter: everybody i have spoken to on the ground here even the people who have said, these are a small group that decided to evacuate. they haven't seen anything like this in a long time. perhaps in other areas where fierce storms hit like this they feel more prepared whether it is rational or it's not folks on the ground here certainly scared >> thank you tomorrow is like christmas for apple. we'll have a preview next.

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the dow is up by 113 points. the high was 162 but well off the low which was down triple digits, 102 points at the open

the nasdaq the out performer out 0.6% leer so here are some of the stories that got us there. >> more than a million people up and down the carolina coast are ordered to evacuate as hurricane florence takes aim >> signing an emergency de declaration. we are two days away making land fall >> they haven't seen anything like what's coming at us in 25, 30 years, maybe ever it's tremendously big and tremendously wet >> dalio weighing in on the state of the economy >> we are in the 7th inning of this cycle i think we are at the stage in the cycle where interest rates are being raised we are in the later stage. going to the sidelines on tesla. >> they said the downgrade was

based on his behavior and the fact that the company need to improve leadership in order for the stock to become investable >> u.s. and canada today >> we'll see if either side is willing to make concessions this week we believe that the deadline they shooting for now is october 1st. the dow is up triple digits now. it was down triple digits earlier in the session >> small business has never felt better >> showing a new all time high of 108.8 >> just another lazy tuesday >> just another lazy tuesday the other point of his book is free if you want to buy it i guess he doesn't need the income from it also i just excellented onthat

>> it is the size of the opportunity and the fact they have ahead start can they get from here to there? >> we willsee. shortage increased from 2016 >> we have to have more realistic approaches and some fail aid proechs where we have nothing to show for it for 20, 30 or 40 years we have plodmodels of success.

if we can scale it up we could end world hunger. as a result he failed to play 25 events in a season violating a pga tour rule. he is set to receive a three tournament suspension. you're up to date. that's the news update back downtown to you >> it has been quite a week for our major athletes >> indeed. >> thank you the countdown is on. we are less than 24 hours away from apple unveiling the newest productstomorrow

sort of every year they do sort of a big upgrade it is one of the more inkre mental years it is three new models it is actually kind of a big thing. there will be a bigger one there is one that will be like the current x about that size and another one that's a little cheaper. this is a high resolution one. internal will be upgraded but it won't be things that look and feel so different. new colors, different price points i think that's important to think about. the price point is what's happening apple right now. people who have an iphone

already have one they t way they are getting a step up i think you talked about that as well i think it helped a lot of consumers. i have the high end one. >> it's helped a lot of consumers. we permanently have a subscription >> if you look at that you would say it has been rerated for the better i think the general idea that the base of exists iphones is so tremendous right now it is a little bit of a smooth ongoing cycle as opposed to every two years. you get maybe some percentage upgrading in a big way i think it helped the stock and helped people think that the business is a little bit less

hit driven >> and the other has been as of late services. >> right >> and it's long awaited when is it finally going to happen tv movie streaming service >> they have already earmarked a billion dollars. they have blown well past that they are getting close to $2 million and also film rights and we still don't know when they will really air, how it will be sold, where it will be bundled. it might be a new subscription app where they are work to be part of it so their media strategy hasn't been the most cogent the fact they are spending as much on original content tell us they want to have a big push into it. they anticipating 50 billion a year in that business. i think it's a good goal because that's the line item that is

more stead y. so it the an important part of the businessme they should talk more about it >> it is not as impactful as netflix or something else. >> yes >> let's get over to market flash. that's moving higher after hours. >> good morning. positive drug news helping move higher here by around 2% here is the news a new drug has succeeded in an arthritis phase 3 study. it has ban big underperformer throughout the year. again, we are seeing a late day surge here on the news back to you. >> thank you the twitch cofounder is now tackling legal services. he joins us live next. be sure to tune into closing

bell tomorrow mervyn king will join us at the peak of the financial crisis hil join us with his expect takss tomorrow you don't want to miss it.

welcome back atriuc atrium it uses technology to give start ups a fast transparent legal experience >> a law firm may seem like a

big clahange for twitch cofoundr but he sees a big opportunity. we have justin here to discuss this more. thanks for joining us. >> thanks for having me. >> so you just raidsed $65 million. how did you come up with this idea >> it came from my own experiences as an involuntary power user throughout my career as an entrepreneur there were some things i liked but a lot of things i thought could be improved. >> and justin, what's the opportunity here for you if you look at the legal profession are individual lawyers charging too much for their personal abilities or is it too antiquated and not embracing technology that i presume you believe in an advanced stage of it offering? >> that's right.

the law firms themselves have a very antiquated model. >> we thought we would take a different approach and something that could improve delivery service and lower costs and can build out with a law firm that would use that technology. >> one of the technologies you're using the block chain >> we actually offer block chain related legal services in san francisco. >> but the legal area has been identified as sort of rights for disruption f disruption for a lot of times. i know when it comes to other professional services they say

look, the stakes are too high for starting a business or a merger you're going to go with the name brand that has the experience. is there something similar or can you get around that? >> absolutely. for the highest margin work people choose based on the hight lawyers. we think that's always the case. we are not trying to build ai that replaces lawyers. what we try to sbld a suite of tools and platform, technology platform that enables lawyers to focus on expert advising which is what they want to do. and focus less on the crank turning, grinder work. which is the most auto matable work out there. >> justin i want to pivot and talk about video game streaming. you are the coveder of twitch, sold to amazon august 2014 the success of the broader video game streaming service and switch included, does that make you feel you sold it too early. >> well, hindsight is always 2020

but definitely twitch has kilobyte continued to grow and really outperform any of my expectations in the past four years. that's incredibly dope to see. it's been crazy. i've watched it from the sidelines as a user. i'm a huge fan now and so i probably spend too much time on twitch actually. >> that's interesting to hear you say that i wonder your thoughts on the future of gaming because you have seen the popularity sky rocket especially with like fortnite what do you see the future of the industry becoming. >> well, i mean be, i think it's the same as it always has been it's always about the developer, developers it's about the game developers making that amtzing ip like fortnite which nobody predicted which has shaken up the industry and you now you see the clones coming in. we'll see every year amazing hits come out nobody has -- that's very hard to predict. >> justin, you mentioned you probably spend too much time on

the platform yourself. every day we hear parents complaint about how much their children are using it. perhaps they are using it too much do you think it's time that amazon takes more responsibility in terms of the effect it may be having potentially negative effect on younger people's lives? >> well, you know, twitch itself we built in tons of moderation and community to be -- dsh community moderation tools since the beginning. that's something we had in mind since the early day of the platform in terms of watch controls and stuff like that i think that's important for us you know kind of every player in the stack to consider, everyone from twitch and amazon through you know the device makers themselves and then of course families themselves have like responsibility to think about that and then limit screen time. >> okay. justin, thank you for joining us much appreciated congratulations on the fund raising for atroo treem we look look forward to hearing on the

pro. >> a new report from neemz has surprising finding about millennial viewing bts habits. what is the news are for advertising industry. >> a half time report with scott woman ner thursday, not tomorrow a noon exclusive interview with billionaire investor david teper. we're back here in a couple of minutes. my name is chris hughes

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and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. a new report from nielsen calls nimble yals, the most could havested group for advertisers. and they are viewers of news 21-27 get 37%. 8% get news from tv alone.

that's very ditch from aadults with 72% getting news from digital and tv and only 9% from digital only and 18% from tv alone. we shall also note in an online test by nielsen's media lab millennials said they find digital news trustworthy and credible clearly we obsess as the opening introduction of the report says about millennials and a lot do but if you look at the numbers, 64% of millennials watch news on tv, whether tv alone or tv plus. i mean, that's higher than people typically think if you think about the multiples that are a snapchat gets relative to a cbs or nbc universal or whatever it might be, it's drastically based in the future the broadcast is going to die and you know, social media and online is the future but 64% watch tv. >> the number of eyeball hours on tv is down a lot. but tv news is not down quite as much.

obviously this is integrated the other word from millennials were digital gnat he was they are comfortable with digital only. >> i'll just note nielsen's definition of digital news does not include social media. >> that's how you get to do it. >> exactly. >> and millennials tastes can change that does it for the "closing bell." morgan thanks for joining us fast money begins now. >> fast money starts right now live from the nasdaq market overlook new york's sometime square traders on the desk steve grass ooh appear guy adammy tonight on fast, nike soaring back from lows it hit after launching a colin kaepernick ad as one analyst calls it a stroke of genius but was it plus hurricane florence is a monster, a category 4 storm approaching the east coast energy prices are surging a top technician says this is the beginning. but first we start with the