market. >> have to wonder what happens with fitbit. saw the shares take a dip on the back of all of this new. we'll see watch this. >> watch "nightly business report" on pbs, by the way. >> but before that. >> we will, bill. >> thanks for watching "power lunch." >> "closing bell" starts right now. >> good after. a very warm welcome to "closing bell." i'm wilfred frost and i'm sara eisen in for kelly evans the dow is swinging 200 points in today's session it was up 174 points at the high as you can see, lost most of the gains and is trading just around the flat line. >> no walks today. >> no walks. there was so much news the apple headlines. >> but welcome back. >> thank you >> hope you had a nice long weekend. this weekend marks the tenth anniversary of the financial crisis coming up, we'll speak with lord king, the former governor of the bank are england

we'll get his take on monetary policy, brexit and much more from post nine here in a couple minutes time don't want to miss that. >> i just saw him upstairs and capped him lord governor which is not the correct way to address it. >> he looked it. you can call me lord governor, if you like. >> you're not a lord or a governor breaking news on apple though. let's get straight to cnbc's jon fortt live at the apple product event all afternoon long with some headlines jon? >> reporter: you got me with that one three new phones in the iphone x watch and one new watch. we'll break it down for you. the iphone xs which is the successor to the iphone x starting at $1,000 pre-orders start friday. delivered next friday. it's got a new chip inside, enhanced camera features, better color capability in the screen, and then there's the xs max at $1,099 a bigger screen. this one is at 6.5 inches

diagonal same delivery times. same capacities starting at 64 gigabytes and then 256 and 512 gigabytes also available with the new a-12 chip. we have the apple watch series 4. that starts athletes say 399, 499 with cellular. the price of the series 3 drops. here is a watch with fda approval as a medical advice device it takes an ecg. it can monitor to see if your heart rate is irregular. whether it's too slow. it can also tell through enhanced gyroscope and other capabilities whether you have fallen if you fall and then don't move for a minute it will place an automatic emergency call for you, so apple is making a portfolio approach to this also, i forgot to americans, the iphone xr. this one 749 is where it starts. it the has a 6.1-inch screen,

but it's not the old l.e.d. higher quality screen, lcd apple pulled off a trick here making us feel like a 749 phone is actually cheap. that is still expensive, even by iphone standards, but the screen is larger than the xs so it is lower quality. it has one camera on the back instead of two it's quite a lineup. apple showing, again, that it's doubling down on this portfolio approach not a single phone that they are trying to get people to buy but a wide range no matter what you want to pay, apple will take your money, guys back to you. >> jon, i'm absolutely fascinated by this by this heart monitor or the step-up in the quality of the heart monitor in the watch, particularly the fact that it has got and required fda approval on one level it's hugely commendable what it's able to do and differentiate itself from the rest of the market on another level does it open itself up to a risk of challenges in the future

this isn't a question of oh, my screen is crack, can you fix it? this is a question of the fda is regulating the process there that they are releasing. >> well, will, this is something that apple really consciously avoid for a while. we heard from apple executives, i did, in the past, that they wanted to avoid having regulators determine whether they could bring a product to market or not, but over the years it seems that they have focused in on health as the real core use case for the apple watch and determined it's worth it as a differentiator, to jump through those hoops and really focus in on that technology and make it a must-have. i think had the question is whether they have succeeded in that will this be a product that working people feel like they want to buy for their aging parents to be able to tell if they have fallen so that they can know that the authorities will be called if there is that kind of a problem, so the parent will know if there's something irregular going on with a heartbeat because of that built-in ecg that's how apple is pitching this, but this is still

expensive technology we will see if the industry, particularly if the he can air industry really gets behind this and tries to make this more affordable it really is something investors will have to watch, will. >> well, jon, thank you very much for that. i hope it becomes mainstream and saves lives. let's discuss the whole day for apple further. joining us now are ross gerber and ed snyder from charter equity rocks i'll start with you. what's your take on all the announcements and particularly on the phone front because clearly that's the biggest earnings driver for them >> the let's just start with the watch. i mean, the watch is beautiful, and they did a wonderful job they are squarely marketing this to the baby boomer generation, and they basically don't care about the other generations, and the problem with that, even though i think the device is great is that my mom will never figure out how to use this watch, so she's still working on her iphone and it's a daily event for her so i think the technology might be a little too

complex for the people that they are trying to market to, and they have just given up the kids on the phone front i think the phone is nice evolution again. they figured out how to make an $1,100 phone now, you so, so they are relying on asps to drive growth honestly, it's pretty boring you know, i'll take the elon musk podcast another day over another tim cook day. >> i'm curious to get your take, ed i thought you were the bearish one in this conversation. >> surprise. >> even though ross is a shareholder. doesn't sound too enthusiastic. >> do i have to take the bull case now >> yeah. you might have to take the bull case here. we need a debate. >> i agree with him. i've agreed with that philosophy for some time. apple has done a phenomenal time we won't relive history on how they completely changed the handset business, and they are definitely squeezing immense amount of value at the high end, but there is no doubt to any, you know, objective observer that the high end is saturated,

and what they have offered today isn't going to change that going to try to squeeze more out of it. dollars to doughnuts here, guys, a quarter or so into sales you'll see a decline in unit volumes. we'll see another flat year, and tim cook has got to figure out if he wants to move into the mid-tier segment to expand unit volumes or if he'll stay up here and squeeze what he can out of it for as long as it lasts i saw nothing today that either wasn't always predicted. we heard them bolster this stuff in february or anything that's going to drive units by themselves. >> rocks we've seen people move towards the monthly payment option is that an important factor for a toll try to move people away from the sort of lumpy once a year big purchases, particularly tied to the product lunch, or do you think it's something that could change the way about how people tend to vault company >> yeah. i think the monthly payment thing isn't nice kids know it's $50 a month instead of 35. millenials are very price conscious. they count every penny, so, you

know, i think that by offering the lower end phone that looks like a higher end phone. i think that's a smart move for apple, but their future is definitely not iphone growth their future is services and other products like the watch, and that's why they started with the watch, but i still think that apple needs to add another hardware category and another software category, and i think hardware is obviously the car. that's the next big thing like what google into and tesla and on the software side we think it's a streaming service like netflix and hulu and they have completely left the future behind, and they are just maximizing the current so it's great as a shareholder for now, but what i'm worried about is where is apple going to be in five or ten years? certainly the products aren't going away, but where's the growth going to come from? >> well, ed, it might come from higher prices which apple has proven is that your whole argument was based around lack

of volume growth and apple answer that had in terms of higher selling prices. in this event they put a $1,099 price tag on the xs, held the line on the 999 on the original x and raised the price of the watch by $100. why don't you believe that that can be a big driver? >> i'm sure there's a segment of their fan base that would pay $2,000 a phone, but do you really want to put all that r & d and design into selling 30 million phones standard curve you're trying to cap tower as much value from the high end as you possibly can and push prices up your point is well taken the services business is dependant on people holding iphones. and if they go into a 5% unit decline every year, how many years before they have cut their subscriber base in half, right this is all played out before. this is nothing new. it's spectacularly higher here with apple, but you saw this with rim, with nokia and all the other handset companies that have come before them to one

expenalty or another if you don't wake up to the fact that people are buying your product less every year, then your user base declines. with apple it's even more serious because they rely so much on services >> their base isn't declining. their base is growing. >> the base is growing of users, but the fundamental problem is the vast majority of the revenue and certainly the profits comes through iphone. >> right now, right now. >> two years ago -- wait a minute two years ago they had a decline in year over year volume unit sales so the problem you're facing and bigger picture -- look at t-mobile, the service providers, they are taking subscribers away from others sooner or later you're going to see they are plateaued here and will decline. >> i disagree. >> we've got to leave it there. >> huge regions want the iphone.

>> got the debate at the end. >> we've run out of time, thank you. with apple shares down a percent after a strong run-up into this release ross gerber and ed snyder. let's talk about the broader market so steve, this today reminded me today of the depths of the european debt crisis where we learned about a meeting happening. >> right. >> does the fact that they were coming to the table to talk injected some optimism it feels like talks are more optimistic than actual deals on trade. >> so i think we've bottomed out to your point on the rhetoric and the fear and the pricing in or the discounting within the market all the trade data and what ifs that were coming down the pike i think what we're seeing now if all of that is priced in, is anything we hear now going to be upside for the markets, so we had positive canadian news yesterday. we still have mexico that's

moving forward and now we have china which is the last shoe to drop is that going to be enough to keep the market moving higher? i think once you start to see real reality, real facts behind trade, this market is going to hit new highs. we already have seen what it's done on headlines alone. >> what's your take? how much has the market got in terms of upside when we get real kind of trade reprieve. >> the upside is much more outside of the u.s. market, right. if we think about emerging markets and how incredibly negative sentiment has gotten in that space that's where if you get any incremental positive action on the trade front, specifically with china, that's the asset class that should have the upside earnings growth has been have i, ve -- has been very, very strong you get em currency strength and that's where you get the upside. >> rick, what stood out to you today as far as the question on whether growth can continue and

how high this market has to run seeing treasury yields back off a little bit and approaching that 3% level again? >> yeah, it's not unusual to e boyant rates, tomorrow the monetary policy and bank of england, raised a quarter point from 50 to .75, but i don't think anything is going on the nonetheless, a lot of brexit stories, extension of carney by three-quarters of a year to make sure it's over the brexit hump with regard to mario draghi and the conversations both of our guests have been having, don't see any surprises. maybe he's going to talk about a slowing economy which brings up the conversation of divergence one thing i would like to add. gabrielle thought that the emerging markets would settle down steve hinted at it, and i agree. when they get trade worked out, and they will get it worked out, but i do caution there's a good chunk of the volatility in

emerging markets that isn't going to disappear if we get perfect trade deals with all our major trading partners because the central bank balance sheets are getting smaller. the fairy dust is getting thinner in terms of how much it can be thrown out and those issues stand alone will be enough to continue to pressure emerging markets into the future >> gabrielle in, terms of things back here though, you mentioned the fundamentals are very strong, does market sentiment match that or has market sentiment turned a bit more concern negative. >> u.s. market sentiment is the pretty optimistic and positive we do think investors have a lot of confidence for the outlook for the u.s. economy it's much more broad where sentiment has gotten very, very divergent from the actual fundamentals i would debate the issue around emerging market. what drives flows and performance, it's less about interest rate differentials. that's a little bit left of a rising tide lifts all boats, but

it's much more about the growth differential between em and the u.s., and as that starts to widen we do still believe that's an asset class that can do well, even though central banks are normalizing policy here and in other developed markets. >> also a zero sum game when you talk about rotation. are you better off putting a dollar to gabrielle's point to u.s. markets or going to try to get the relative outperformance with eem, but it does depend on what eem that you're choosing. >> absolutely. >> turkey, i can't imagine -- >> not going all in the lira. >> not going all in. i bought it the too early. bought it down 40% for my children, and it's still down another $10 from there, so it all -- >> how do you decide what you put in your children's portfolio versus your own? >> i put things in there as they have much more time span to outlive me i'm long square. the kids didn't get any of it. >> so nice what a good father

we'll leave it there thank you all. still ahead on the show, we'll bring you up to speed on hurricane florence as what some are calling the storm of a lifetime approaches landfall certainly preparations are underway potential cost of the storm coming up next. and we're just talking about the lira and the bank of england meeting tomorrow, some with a very educated view on that will be joining you the former bank of england governor mervyn king will be here at post nine in a few minutes and addressing the lessons learned from the financial crisis, and why he's been critical of the uk government's brexit negotiations we're back here on "closing bell." don't go anywhere. what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives.

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welcome back to "closing bell." here are your winners in the dow right now. we've got walgreens, boeing and caterpillar down. >> this week marks ten years since the financial crisis of twragt which was triggered by the fall of lehman brothers. andrew ross sorkin sat down with those who tried to save the back

and its ceo dick fold only to see the last chance slip away in a new documentary slip away premiering tonight on cnbc. >> they collected us all and said the barclays deal had fallen through and we should all prepare for a lehman bankruptcy later in the day. >> you've got a group of ceos and leaders in government, and they all wanted to know why, what happened? and that was the place to start, but right away how do you switch on to saying where do we go next >> in many ways it alleviated us how to figure out could we take on those assets? no one said oh, [ bleep ] and no one said thank god they just said next play. >> for some people a sense of relief. >> at least in my case it was. >> there is no sense of relief for paulson. >> i remember stepping out of the room, calling my wife, just telling her, wendy, i'm afraid that this is something very bad. i don't know how bad it is, but

i feel like i failed, and pray for me and she -- she went to this first from second timothy which has meant to a lot of us god has not given us the spirit of fear and power of love and sound mind that gave me what i needed and i went on from there >> be sure to tune in to watch "crisis on wall street, the week that shook the world" premiering tonight at 10:00 p.m. eastern time and 10:00 p.m. pacific time also. >> we've also got andrew ross sorkin who executive produced that documentary as well he joins us now. andrew, after an amazing conversation this morning with some of the primary players back then, after all these reflections, what have you learned? you chronicled this right after it happened. are you learning anything new about how it went down that might apply to today >> i actually am i want to show you a piece of tape, a remarkable moment that took place this morning. we sat down with tim geithner,

ben bernanke and hank paulson all at the same time i've spoken to them over the years all individually, and we sat down all together in a live interview that took place for about an hour, and, you know, there's been a huge debate and you saw it in the documentary a little bit around lehman brothers why lehman did they have to fail? did the government have a choice, and one of the things you heard over and over again from the past ten years from hank paulson and tim geitner and ben bernanke that they didn't have the authority to make a loan to lehman brothers because they didn't believe the company had enough collateral. but almost that it was like a legal decision, and for the first time ben bernanke shared a little bit more on that view, and it might change some people's perception. i want you to take a look. >> this was not some kind of narrow legal judgment. not like saying we could do it, but it's just on the other side of legality. that's not the way we were thinking about it. we were thinking about in terms of was it feasible our belief was that making a

loan against the collateral that was available would at best sustain the company for a few days, that it was not a viable business, that all we would do is end up bringing a lot of bad assets under the fed's balance sheet and maybe protect a few creditors. >> i think that answer is going to raise some new questions, even today about whether it was ultimately a choice that given for so long there had been a conversation at least among those three policy makers that they didn't have a choice, that there was no option for them because of the quote, unquote rules. so an interesting moment this afternoon. >> andrew, fascinating moment indeed we look forward to the full documentary airing tonight as well andrew ross sorkin for us. >> thank you. >> of course, in washington. we're going to continue to discuss this now joining sussomeone when knows a bit about the financial crisis, lord king. he served his government and the bank of england from 2003 to

2013 lord king, thanks for joining us >> pleasure to be with you. >> i was going to start with a different question but having watched that clip and listening to andrew, clearly the uk government did step in and invest in lloyds and invest in rbs by taking a small stake, and that was enough to stem the kind of lack of confidence in those banks. do you think that the u.s. government should have broken the rules a little bit and done something similar for lehman brothers, and would that have lessened the fallout of the crisis. >> i don't think it would have solved the problem for lehman brothers it was for the u.s. to decide what to do through 2008 we had the bank of england arguing strongly that we needed to recapitalize the banking system, that it simply was not good enough just to lend a bit more how many people do you know who said to you just lend me $20 to get to the end of the week i'll be able to repay you then they couldn't do it. they had to keep rolling over

the loans. more lending would not be the answer at some point recapitalization was vital, and the uk was the first country to do it. >> if you talk about the broader action that various nations in western democracies took, particularly for the economies, kwooezin quantitative easing, of course, the ground breaking move and to what extent do you think you and prime minister gordon brown actually led the way on that and kind of showed the u.s. the right action to take >> so i think from the beginning of the crisis there was a lot of coordination, particularly among the central banks. in 2008 the uk did heed the way in capitalizing the banks and the money which congress allocated for t.a.r.p. to buy distressed assets ended up being used to recapitalize the banks which is exactly what we recommended. continental europe was much slower in falling through on that, and i think the u.s. implemented the stress tests and

recapitalization in a very effective way. >> this morning the conversation andrew had with bernanke, geithner and paulson focused a lot on not being able to sell it to the public, the bailouts and the recapitalizations and the quantitative easing. do you have regrets how you sold this politically and how you sold it to the british people? >> no, but i think the serious issue was that when there is a crisis, and this is the point that tim geithner and ben bernanke and hank paulson always made, once you're in the throes of a crisis, you need to lend money to the banks to prevent a collapse of the entire banking system i used to go to parliament and say we're doing this, not to protect the banks, but to protect the economy from the banks. that was the key point but in order to do that, it's better to be able to say to people, look, the banks have paid some insurance premium for every year without a crisis in order to have the right to borrow from the central bank in a crisis that's why we still have yet to put in place the policies which

i think are needed to ensure that there is an insurance policy and that both congress and the public can see that the banks are paying in good times in order to have the privilege of borrowing in bad times. >> let's talk about that in terms of your views in the future in your book "the end of alchemy" which came out 18 months ago, you said another financial crisis is inevitable is that still your view and why is that still the case >> at some point in some place who knows when or where there will be another financial crisis and the reason is because banks are safer than they were before the cries, but they are not safe if people decide as happened in 2008 in new york that to go on lending short term to banks is a risky proposition, then people will run for the door, and the only institution that can then step in is the fed or the treasury, and that constitutes a crisis when people can see that the only place these

institutions can borrow is not in the marketplace but from government. >> i wonder how you see some of the populist uprising. we saw it in the brexit vote with the election of president trump, some of the backlash has well against globalization and global financial institutions. as a direct result of what happened in the crisis. >> so i don't think it's sensible to pin the word populism on very different movements, so i think in the u.s. there's undoubtedly those who feel left behind and having in fact been left behind as a result of globalization. they would have felt left behind even if there hadn't been a financial crisis i think people in southern europe are understandably extremely unhappy about very high rates of unemployment the austerity programs imposed on them from outside, that's to do with the creation of the monetary union that would have been true without the financial crisis, so there's no doubt that the crisis

exacerbated many of the concerns, but the underlying causes were not the direct result of the financial crisis and the reverend dem on brexit was a long campaign period everybody knew the issue was mekship to t mekship -- was membership to the european union. >> earlier this week a group of conservative party brexitiers outlined what they think the economic impact would be of a no deal brexit, sort of hard brexit, if you will. their outlook was fairly positive soon after chancellor philip hammond came out and said their views are wildly out of line where do you stand in terms of what the economic impact would be of a no deal brexit >> two issues here the long-term impact where the honest answer is no one knows, and i think one of the unfortunate things is that economists on both sides of the argument have claimed they know exactly what the outcome will be, and it will either be very bad or very good

that's not a helpful way of thinking about it. we just don't know my own guess of what it's worth is that it's unlikely to be terribly significant in either direction, but honestly we don't know the short run impact is different because the real problem that the uk faces now is not leaving the european union as such, but the consequences of the collapse of the political system in britain, with both major parties totally divided down the middle and one unable to govern coherently bus that have division and the opposition trying to stay away from that and actually being just as divided as the government, the consequences that have are to create a lot of short-term uncertainty, and that could be damaging now, the fact that the uk is not prepared to leave without a deal means it's in a very weak position now that's unnecessary, but that's where we re. >> how has theresa may dealt with executing brexit? >> well, it's hard to describe

what's happened as clear decisive leadership. what we've not done is do the obvious things which is to say we'd like a free trade deal with the rest of the eu but we can't guarantee that or impose that deal on them so we have to be prepared and put in place from august 2016 a program of work to ensure that it's credible to say, if we can't locate a deal we'll leave without it it's very late in the day to pry to pretend that we could do that now. >> you briefly mentioned until the next crisis. this is a time when everyone is reflecting on the last ten years and trying to figure out what it is that will cause the next crisis and how that will relate to what we saw last time around. massive piles of government debt, the u.s. dollar reserve status, i mean, all sorts of really doomsday scenarios being painted. >> it's easy toe describe lots of doomsday scenarios and most will not materialize i think the most important thing is to say that none of us know from where the next crisis will

come what we do know is that when it does arrive, the banking system will be at the center of it, and, therefore, ensuring that where there is massive maturity transformation any institutions that borrow short and land long we have the ability to lend to them in a crisis and ensuring that they don't ever again reach the levels of excessive leverage that we saw in 2008? just wanted to quickly ask lord king about china we were talking before the break about the turkish lira and sewn how with countries like turkey or argentina, a big fall in the currency can really hurt them. china's currency has been falling, not as much as that but significantly for them do you think that's causing more pain for china than perhaps we realize here, and how strong is that economy at the moment >> well, i think there's a tremendous opportunity which i would like president trump to take advantage of, to bring together the big sur face and deficit countries and say we're all suffering from this. we can't go on indefinitely having large surfaces and deficits how are we going to find a way

through it i don't think unilaterally imposing tariffs is the most effective way of doing it, but a deal is there to be had without any doubt, and we saw when china tried to prop up its exchange rate a year or so ago, it lost $1 trillion in foreign exchange reserves in a year it can't afford to go on doing that it's in everyone's interest to try to find a path in which we can navigate our way back to a balanced economy. >> lord king, a pleasure to have you with us today. sadly, no time to discuss cricket. >> i think an hour on that next time would be appropriate. >> yes, i'm sure our american audience would love that. >> lord king, thank you so much. former governor of the bank of england. >> thank you. >> time now for a cnbc news update with sue herera. >> hello here's what's happening at this hour president trump has signed an executive order laying out a process to sanction foreign countries that interfere in u.s. elections. the order was signed off

cameras, but it was announced in a conference call by national security adviser john bolton and director of national intelligence dan coates. secretary of state mike pompeo welcoming the croatian foreign minister to the state department it markets first time a croatian foreign minister has met with a u.s. secretary of state since the year 2012. a missing hiker found dead in oregon was likely killed by a cougar the bodyof 55-year-old danny bober was discovered monday off a trail on mt. hood. she was reported missing back in late august. it's the first fatal cougar attack in oregon and bob woodward's book "fear" about chaos in the trump presidency has already sold more than 750,000 copies. that's according to the publisher which is smith-schuster t -- publisher simon & schuster

>> still here on clegg shares of chip-maker micron down 20% and losing ground again today. what's behind the latest plunge ahead. >> randall stephenson taking a jab at netflix what he said that could leave fans of ennext and walmart up in arms but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us.

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welcome back hurricane florence is barreling

towards the east coast with the national weather service it could be the storm of a lifetime and we have a report now with the latest. >> reporter: as of the 2:00 advisory this afternoon, florence did weaken just slightly sustained winds at now 125 miles per hour you can see on our satellite loop the eye wall becoming a bit disorganized over the past couple of hours. that's to be expected with major hurricanes like this it will be restrengthen and be a category 4 again, likely later today, and that's what we'll keep an eye on as florence does approach the carolinas heading through the next few days. the national hurricane center track. not a whole lot of changes, still bringing it close to the carolinas by friday morning as a major category 3 storm and from there it sits and waits and turns off the coast of the carolinas. that category 2, that is saturday morning so nearly 24 hours with very little movement on florence. we are expecting landfall eventually throughout the day on saturday as a category 2

hurricane but it will quickly weaken after that so don't focus that much on the track or timing, just the idea that this will be a very impactful storm it's that stalling that has us really concerned as we head through the next couple of days bringing really impressive rainfall totals. that bullseye is right over wilmington and down through myrtle beach and charleston expecting up to 15 and possibly more inches of rain as we head through the next few days. let's break down the impacts of florence as we head through the weekend forecasts. we'll start to feel the outer convective bands by tomorrow morning. the tropical storm force winds and the latest totals and bulls eyes points, not in inches, but in feet. three to four feet of water expected to fall from florence as we head to early next week and this will linger coming through the upcoming days that surge 9 to 13 feet that's on top of the tides, and because it will sit offshore for so long, we're going to see multiple high tide cycles of that surge of 9 to 13 feet

major category hurricane winds we'll continue to keep an eye on florence as we head through the next couple of days. coming up on "closing bell" we'll take you back out to cupertino for the latest on apple's biggest product announcements and we'll speak with an analyst who just upped his price target on the stock and he's more than bullish on iphones. and neil de grasse tyson joins us live talking ouabt president trump's space force and why he's defending elon musk's pot-smoking interview still more to come on "closing bell." it's the pace of tomorrow. with ingenuity, it's the pace of tomorrow. technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow.

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all the farmers are able to get their money, pay school fees and improve their standard of living. with citi, we see a bright future for our farmers and their families. ♪ welcome back to "closing bell." marathon partners equity management pushing for a change at elf beauty. elf is the stock to watch. the firm sending a letter to the beauty retailer urging it to pursue strategic alternatives. marathon owns about 8.5% of elf and says it needs to refocus on core operations. they told me in a statement elf regularly engages in open and

transparent dialogues with our partners and will continue to do so as previously disclosed, we are re-investing in our brand while streamlining operations actions which we believe will position elf for long-term profitable growth this was such an ipo darling back in 2016 the category was hot elf beauty was growing very fast, but the growth has slowed down and the stock has underperformed, down more than 30% so far this year obviously you've got the presence of an activist in there and a big concern about tariffs. almost all of their products are manufactured in china. the next round of tariffs, $200 billion of imports do include some koss metics >> eyes, lips, face. >> so for growth call it nelf, bring out nose products. bring out another letter. >> they don't need an investor

telling them what to do, nelf. with 15 minutes to go before the closing bell, the dow is positive, up 54 points s&p positive as well, no thanks to financial and technology. both sectors are lagging up next more departures at tesla. the latest on the revolving door at the carmaker next. >> later the streaming wars heating up at&t ceo randall stephenson throwing harsh words towards netflix. why he calls it the walmart of streaming. that's coming up see that's funny, i thought you traded options.

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>> news on it's. [ laughter ] sue has it. >> hi, wilf. that's indeed correct. a news alert on tesla for you. basically here's the news. tesla's vice president of worldwide finance is leaving here is his statement, and we have confirmed this. our phil lebeau has confirmed this it's justin mcinier, the vice president for world finance. he said several weeks ago i announced to my team i would be leaving tesla because i had the chance to take a cfo role at another company. i've truly loved my time at tesla and have great respect for

my colleagues and the work that they do, and this was simply an opportunity i could not pass up. any other speculation as to why i have left is simply inaccurate i've been working with the team to ensure a smooth transition prior to my last day which will be october 7 a number of team members are stepping up for him and we should note that tesla has had a pretty good week so far after being hit the previous week because of high level departures so it's another high level departure but apparently but he says it was pre-arranged he announced it to the team several weeks ago. >> sue, thanks very much for that we did have a number of analysts on here and he's cut his target price from 400 to 300 and one of the reasons was lack of clear leadership at the top, partly eamon luc elon musk. he has another job and another role, but it certainly doesn't

help. >> last week's announcement of the chief officer leaving had an affect. >> this hasn't fed into the share price. >> sounds a little more friendlier. >> doesn't help that the job that they have to do there. >> or the optics. >> exactly. >> we've got ten minutes left of trade. art cashin might be able to tell sara what is expected on the bell he's standing there. the dow is up about 0.1%, nasdaq lags down a quarter percent. >> when we come back hbo being >> when we come back hbo being called the tfa oifnyf vide5 commissions for stocks, streaming and why netflix is the walmart of video streaming that's next on the "closing bell." trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service

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son speaking at the goldman sachs conference in new york city he discuss at&t's plans for hbo which the telecom company newly acquired in a purchase of twaim warner cable. >> he took a swipe at one of its competitor says hbo is a very unique as es i think of netflix kind of the walmart of subscription video on demand services. hbo is clearly the tiffany what he meant to say it's sort of a premium offering for retail and a lot of people on social media are mocking it because if you look at charts of walmart and tiffany they have gone in opposite directions lately tiffany down and walmart up. if you look at market cap comparisons really there is no comparison. >> no comparison whatsoever. >> we -- we get his point, but it kind of didn't really work when you analyze the other thing i'm going to say in the transcript of that which i read he talked about warner brothers saying, quote, it's a library

like no others and that they plan to use that given that hbo is the premium stuff and warner brothers are full-length movies, are you going to watch "game of thrones" on your phone? it would be like you'd want the walmart product for a describer. again, on the comparison itself, i think it breaks down a little bit, but we know what he was trying to get across. >> and netflix is the elephant in the room for all of them. that is the big threat where they are all having to change their businesses to compete with. >> more to come, of course coming up on this topic tomorrow, teleco ceo verizon hans vestberg joins "squawk alley" at 11:30 a.m. coming up neck, we'll be back with the closing countdown four and a half minutes left to trade. 's all so... smart. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields.

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♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "closing bell." just under two minutes left of trade. let's have a look at the dow intraday did get a new pop on talks that were about to start with china that pop, of course, led by those trade-related sectors like industrials. it has abated as we've gone through the rest of the session, but the dow is still a little bit higher and the likes of boeing and caterpillar are near the top. looking at all for you indices you'll see the nasdaq is in negative territory so we're finishing up close to the flat

line the nasdaq down 0.2% the tech is weighing not too heavily but it's lower financials the main lagard is down 0.9% we've seen yields slip a little bit today, led more by europe's yield slippage as i bring in bob pisani looking at apple over the course of the last month. down today on the product announcements but it had run up very nicely ahead of the announcements so shouldn't complain too much. >> a very disappointing day. we moved up so nicely on the costs and haven't been able to confirm that the u.s. is in a new round of trade talks. >> look at that little move up there around 11:00, and yet we moved down with some disappointing comments from 3-m at a morgan stanley conis fence and talked about higher material costs. again, the banks did nothing for us goldman down another $2. jpmorgan didn't help at all. you see that

got to get the banks moving here, wilf why don't you make some phone calls and help us out a little bit. >> on a story that we will be discussing in the next hour, and there goes the bell, ringing in fact is you invest, a subsidiary of jpmorgan, the event for which jamie dimon was speaking at earlier. ringing the ball the nasdaq was allscripts. up 26 points that does it for the first hour. sara, back to you. welcome to "closing bell." i am sara eisen here for kelly evans. wilfred frost joining me in just a minute the dow closed higher by .19%, second day of the row for the dow finishing in the green, third day in a row for the s&p 500 closing around the flat line, barely positive. nasdaq a liars though, down about a quarter of a%. small caps also is lagging

behind in the russell 2000 technology all day was lagging led lower by some of the chip stocks shares of apple finishing the day lower 1.5% after announcing new iphone models and a brand-new version of the apple watch. we'll have a demonstration of the new iphone coming up. and later in the show, famed astro physicist neil de grasse tyson will be on to discuss his new book, the privatization of space and the formation of president trump's space force and much more. let's talk about this market joining us is cnbc senior market commentator, mike santoli and nancy hartler and take a look at the dow. spiked around 11:00 a.m. eastern. headlines that the u.s. is proposing a new round of trade talks with china in the near future stocks like boeing and caterpillar rallying on this news at 1:30 p.m. eastern the dow started falling, even turning negative at a point and ending positive. did get that news that 3-m, biggest decliner on the dow today, had some comments from the cfo saying he's predicting

higher material costs and growth in the industrial and healthcare businesses to be weaker than expected mike, what you've got is this sort of tale of two industrials. 3-m taking the dow down 32 points, but boeing, caterpillar both adding the most >> you saw that sort of programmed reflex response to any headline that the machines can read as hopeful about talks. keep saying that what the market doesn't like is tariffs in the absence of a process this would be a process if you're actually going to be talk that is good on a net basis. also not a lot of substance to it or a lot of real meat on the bones of the story, and what that leaves you with is the overseas markets that popped on the news that mostly held their gains emerging markets underperformed so much that they are itchy for an excuse to bounce a little bit. you saw the china tech stocks, too. overall the market feels very settled in this spot right now i don't mean in a bad way. a lot of offsetting forces, down less than half of a percent

month to date. the scary month of september and volatility getting a little bit on the downside. it doesn't seem like it's itching to have a dramatic move. >> more sluggish than stressed. >> so far in september, yes. >> my top secret notes that i circulated >> very good. >> just for the team and always great prices in there. before i bring in nancy, if we did see a significant deal on china, clearly more room for a rally from china that market has been slammed >> yes. >> what kind of percentage are we talking about for the u.s.? are we almost there? >> overall market, i don't know that there would be a tremendous upside driver. it would be a little bit of a removing of the overhang for the global industrials you do have a little bit more room right there, and, you know, i don't know if it would translate over into the commodity-based stocks as well that would be more of a dollar story i think, but there's room. i've always said that i don't think the trade issue is the big swing factor, but it's one element that has kept animal spirits in check and basically

september this market from that overheat story from january. >> how convinced are you, nancy? can you be a buyer of some being down in the industrials on the prospect that the u.s. is inviting china to the table to talk about trade after just last week we got threatened of even more tariffs on nearly all the chinese imports coming to this country. >> right hi, sara listen, i do think that we have been in on weakness adding to boeing we've been adding to emerson and united technologies. we own 3-m an it has been a disappointment this year we were, you know, trimming last year and now we're sitting with still a pretty healthy position but we're not adding the holdings because it's a much different story than the direct china concern, so i think it would get a possible as well because of costs, underlying cost structure and tariffs impacting that. >> apple shares lower on a day the tech giant announced several

new products including new iphones. josh lipton is at the event and has all the details for us hey, josh. >> wilf, apple today introducing three new iphones. ceo tim cook took the stage and unveiled the devices for consumers, developers and investors. take a listen. >> it's clearly the best lineup we've had by far taking the breakthroughs of iphone x even further than before and making them available to even more people. >> >> so let's run through the new models and the specs and prices there's the xs and xs max. 5.8 inch and 6.5 oled displays the 6.5-inch display is the biggest ever for iphone. the difference in display is definitely notable there faster and improved dual camera system and powered by the new a12 bionic chip. the xs starts at $999.

the xs max starts at $1,099, actually higher than at least some on the street had expected. pre-orders for those phones will begin on september 14th. availability beginning september 21st apple also introduced a newer lower priced iphone 10 arm the new a12 bionic chip also powering that handset and starts at $749. pre-orders there start october 19th that's going to be available beginning october 26th a couple of questions here for investors to think about what is the mix of iphones going to be in the quarters ahead? obviously that's going to have a big impact on margins, on average selling prices also just more broadly when tim cook took the stage did he convince enough people that the iphone 10 wasn't the most popular but the most mainstream because he basically introduced three new iphone xs to choose

from and did he get them excited about the new watch as well which is coming with new fda-approved health features. >> josh, what's your take on overall priceing does it feed into the narrative that they are doubling down on the premium price, especially after warren buffett told becky like a week or two ago that 1,000 doesn't even such a high for a must-have item like an iphone. >> right you know, warren buffett, certainly that take is one on the street the pricing was so interesting because it was really a wild card and analysts were kind of all over the place i talked to some analysts who thought actually it was going to be $999, in other words, the same as the 10 because they told me they just thought that was the ceiling, most people would buy. others said they disagreed with that because quarterin and quarter out cook had said that x was performing strongly so their point was knowing that, knowing the x was performing strongly against a backdrop of a strong economy, why would he leave margin on the table so they have gone for that higher price

point. we'll soon find out what consumers think about it. >>okay josh, great stuff. thanks very much for that. >> mike, if we consider the rallies that the shares have had since the last earnings, was the biggest factor behind that the better than expected average selling price of the phone >> it seemed like it >> combined with relatively low expectations for high phone in that quarter as well yes, i do think so it probably helps and feeds into that story that apple keeps essentially pulling customers in that direction of newer, better, more refreshed phones and there's a huge installed base of phones that's ready for upgrade and i think it makes sense of the price sensitivity i think has been reduced among customers because of the apple payment plan zero interest for 60 to 70 a month for a one-time expense of $1,000. >> i know it's not the main revenue driver iphone is still 60% of revenues but the watch edition was interesting and all the new capabilities around it they are framing it as an

intelligence guardian for your health, and i wonder if this is going to be a must-have product versus something that was nice to have before, the apple watch. and what that does in terms of the market and a potential revenue driver for the company. >> big question when the watch initially came out is why do i need this, right what does it really do an extra little tool to see my texts and e-mails and stuff like this this is an answer to that. the watch and secondary products are becoming big enough that they matter now even though they are not the main driver. >> you're a holder of apple stock. does today change your perspective on it in either direction? >> no. i like a lot what i hear this is always the opportunity for the critics to come in and say it's not enough, you know. the year after tim cook took over there were questions of whether or not he would remain the ceo, whether he was doing a good job the next year he made barron's top ceo list, questions about services in the last quart their we heard would double the services revenue by 2021

i think this company is hitting on most sillters and that it's the kind of company that everyone likes to pick apart where's streaming? where's the content? but i'm thrilled i'm -- i'm in line for a max and i'm ready to switch over my spotify subscription to apple music. >> de la $1,099, hope you've got ready. >> payment plan, wilf. >> moore trouble there, micron shares closing sharply lower, down 4.25% after citing falling memory chip demand micron dragging down other semi stocks tame. lam research, nxp, kla, qualcomm, all hit pretty hard. not the first warning that we've gotten on the cycle and on

demand. >> the market has been saying it's been concerned about the cycle. first it was the semi-cap equipment-makers that rolled over and now the core semiconductor names and one tell is that a downgrade is still actually having an effect on the downside, right? in other words, it's not as if the market alreadyknew that there was bad news this is already a cheap looking stock. maybe this was all in there. this is one concern. this sector is 8% off its high in a broad market that's still very close to its record highs. >> micron is still up over 12 months. >> sure. >> what's your take on this, nance? is this something that could weigh on the broader tech sector which of course is more important to the broader markets? >> we own texas instruments and intel in the chip space. texas instruments was a safe place to be because of the broad diversification and analog component and then there's the china exposure so we're watching. i think this is an opportunity for value managers at some point. i don't think we're there yet

but maybe some of the equipment-makers we've been watching those. it makes broadcom's decision look not so stupid in terms of ca, so, you know, i am concerned. we are watching, but we're putting our overweight in the tech space and microsoft and cisco. we'll see what happens >> now, last hour on the show former bank of england governor mervyn king joined us, and we discussed with him the lessons learned from the financial crisis where he said another one eventually is inevitable >> once you're in the throes of a crisis, you need to lend money to the banks to prevent a collapse of the entire banking system i used to go to parliament and say we're doing this not to protect the banks but to protect the economy from the banks that was the key point at some point and in some place, who knows when or where there will be another financial crisis, and the reason is

because banks are safer than they were before the crisis, but they are not safe. >> mike, unquestionably liquidity levels and capital levels far, far higher is it fair to say that they are not safe >> not permanently safe against everything, but you do point to the exact thing. capital and leverage was the main part of the equation that was out of whack last night. it's nowhere near as stretched as it was then, and in the absence of that it's hard to see how you have a systemic issue. the obviously, you know, you can have something -- >> there's a question of too big to fail. >> you have a deep enough recession, that pervasive and global and it really undercuts the capital markets in a huge way. do you have institutions that you don't really know how to reconcile and put out of their misery yeah it's an issue. >> one of the other things that we discussed with them was china and trade and i thought it was interesting while he said bilateral tar i was are not the

most effective way to go about things, he did give credit to president trump's tactics about wanting to reduce levels. >> imbalances are not great for the world system and if this raises some of those long-term issues that people have kind of overlooked with regard to trade policy and things like that, sure i guess it all depends on how the resolution actually plays out because we don't know if this is all just kind of targeting the wrong things which are the nominal deficits and goods which seems like it's not very fruitful. >> maybe we'll get your thoughts, nancy, on the banks which is flat this year and had another rough day today. >> thanks, sara. heartland is a holding company for community banks and we've been very inquisitive over the last five years. that is one of the concerns that there's simply fewer banks available to the consumer, and

the big banks are bigger we are weighted at a out-of-market weight in the group. we're forced out of pnc in valuation. jpmorgan is getting a little bit rich for us so we recently initiated a position in goldman sachs that has had kind of a disappointing year, but i don't think that the banks are on faith. i think it's an opportunity though for community banks maybe to start sprouting up in -- in some of the rural areas because there are very few options in many of the markets that we're in. >> nancy, thank you very much for that and for joining us in the last 15 minutes. nancy tengler. >> thanks so much. jamie dimon says he's handed over some of his management responsibilities up next, we'll discuss what that means for the future of dimon and the banking giant. >> that's not all he said today. >> not at all. >> which we'll hear. later details on a another high-profile exit from cbs

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jpmorgan chase ceo jamie

dimon making news today saying he could beat president trump in an election and then was quick to sort of walking it back. >> let's just go over that first because it was very extraordinary these headlines. >> i've listened to the whole thing. we're in the allowed to play the sound. reading it out doesn't capture the whole sentiment. >> we were speaking at a you invest right around 10:00 a.m. he said i think i could beat trump. can't beat the liberal side of the democratic party, but i'm as tough as he is, i'm smarter than he is. i would be fine. i can punch back he can hit mow all he wants and he also criticized president trump for the way he made his money saying he didn't get it from daddy but made it himself and he did push back and on that he said i should not have said it i'm not running for president. it proves i wouldn't make a good plimpingts i g politician i want all sides to come together a pretty incredible statement because for me what had points to he's at least thought about in recent years and weeks the

possibility of running may have rejected that decision and say he loves his job but he's at least had that job and that's further than we've gone before denied even considering it in the past. >> i guess so. gaming it out or maybe someone like him as a show is running a huge institution sees a president with a sub 40% approval rating and somebody when he was in business, trump, jpmorgan wouldn't have banked, so there's a gut feeling on his part that says i think i could be a good challenge to him because i wouldn't be intimidated. >> i was surprised because i feel that jamie dimon's comments to you before have actually been almost complimentary of president trump and he's applauded some of his policies even on trade. he said he doesn't necessarily agree but he's been very careful to criticize the president so saying that's smarter than him twitter baked to me. >> we don't know whether he thought am i at a private event? a stream we were allowed to be watching

not allowed to play the sound out. don't know if he was caught offguard thinking he was off the record which in that case it's more interesting. >> maybe because he's stepping back as ceo he doesn't feel like he has to walk the line. on to topic if he were to stand down, no doubt that anything that happened immediately, it would be the two co-presidents and co-c.o.o.s gordon smith and daniel pinto, head of the chase bank, retail bank and head of the investment bank in "the f.t." before the quotes came out today, there was an interview. the most interesting comment that came out was the one from daniel pipto where he said jamie is a great ceo and is human. has lots of external engagements and travels a lot so essentially we're sharing among the three of us of all of the comments in that argument and article in "the f.t." that's the one that goes further than before to suggest he's really stepping back from doing most of the day-to-day

running. >> who is the front-runner >> if there was something today which is not expected to be one of them, longer term than the people below pinto and smith come into play, and that's doug patnode and marion lake and very interesting developments no response from president trump on twitter yet which is very unexpected >> remarkable. >> not running, just to be clear. >> that's certainly what they are saying. >> one of the reasons why i've always thought it's not likely is he would have gamed things out and said i can't win. >> he will, he sort of said he couldn't get the democratic nomination is what he's essentially saying which is probably try. >> which is why mike lindberg chose not to go forward, that thinking. >> and it's a very tough thing to win and he's got the best job in finance that would be tough to give up an interesting day of headlines on jpmorgan. all the bank stocks down today. >> another high-profile

executive is out at cbs. what that means for the media giant's future straight ahead. plus, tracking hurricane florence d e latest on the preparations anthlatest costs of this monster storm. we're back in a couple of minutes. t's not enough, we have more than 8000 allys looking out for one thing: you. call in the next ten minutes... and if that's not enough, we'll look after your every dollar. put down the phone. and if that's not enough, we'll look after your every cent. grab your wallet. (beeping sound) (computer voice) access denied. and if that's still not enough to help you save... oh the new one! we'll bring out the dogs. mush! (dogs barking) the old one's just fine! we'll do anything, seriously anything, to help our customers. thanks. ally. do it right.

welcome back cbs announcing today another executive is out this time at cbs news julia boorstin has the latest for us hey, julia >> reporter: well, cbs news

president david rose announcing "60 minutes" executive producer jeff fager is leaving the company effective immediately saying they are searching for a replacement to leave what is called the most significant news broadcast on television. write fog employees, quote, this action today is not directly related to the allegations surfaced in press reports which continue to be investigated independently. however, he violated company policy and it is our commitment to uphold those policies at every level. now this, of course, comes following ceo les moonves resigning following a series of sexual misconduct allegations. fager is significant in a statement, quote, the company's decision had nothing to do with the false allegations printed in the "new yorker. instead, they terminated my contract early because i sent a text message to one of our own cbs reporters demanding that she be fair in covering the story. my language was harsh, and despite the fact that journalists receive harsh demands for journalist all the time cbs did not like it one such note should not result

in termination after 36 years but it did cbs has not responded to fager's statements shares not really moving on the news there has been speculation that fager could be pushed out for months now wilf, back over to you. >> julia, thank you very much for that, julia boorstin. up next, apple unveiling new iphones, but will it be enough to keep investors excited about the sky-high stock that's straight ahead. plus, famed astro physical vist neil de grasse tyson joins us to tell us why he's defending president trump's plan to create a space force. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back let's take a look at how we finished the day on wall street. the dow was up 0.1%. had a nicer rally earlier in the day on positive sentiment around a possible china-u.s. trade meeting, but lost most of those gains by the end of the day. the nasdaq down 0.2%. >> let's get a cnbc news update with sue herera. >> here's what's happening at this hour, everyone. in michigan, vice president pence imploring residents in the path of hurricane florence to heed evacuation orders he says 3,000 federal emergency workers are already positions in the region >> this is a major hurricane

it's bearing down on the carolinas and virginia i want to assure my fellow americans here that our administration has already taken decisive action in coordination with local government, state governments, businesses and support groups to prepare for this storm >> russia showing off its new anti-ship cruise missiles during that country's largest military exercise since the cold war. the week long drills involving some 300,000 troops began on tuesday. >> the strong's national toy hall of fame announcing the 12 finalists for this year's class, including chutes & ladders, tickle me elbow and u-know and the top three that receive the most public votes get in joining the other top three submissions by members of an advisory committee. all right. you're up to guys.

>> chutes & ladders. >> is that the same of the british version called snakes & ladders >> different title but, yes, almost the same game. >> great game, great game. >> sue, thank you very much. >> chute & ladders and girl scout cookies. >> snakes and ladders. apple the big story of the day unveiling a number of new iphones today as well as a watch. in case you missed the event here's a recap of all the key developments >> apple watch is not only the number one smartwatch in the world it's the number one watch period. >> apple watch series 4. everything about it has been redesigned and re-engineered. >> the headline here news-wise is this is a medical device. williams said that this has been fda-approved. >> they position it as a category killer because amongst the smartwatches no other device

as far as i know has been fda-approved. >> i'm excited to show you what is by far the most advanced iphone we have ever created. this is iphone xs. >> the xs will start at 999. >> it is a remarkable new duel-camera system it has as 12 megapixel wide camera and 12 megapixel and true tone flash. >> the phone's camera will be a big seller if this camera has a high dynamic range of color that apple is talking about is going to be real compelling for a lot of people. >> they just announced the iphone xr. this is going to be more affordable it starts at 749 which is less than the current iphone 8 plus price. >> joining us now with reaction to today's product reveal is

neli patel and angelo scene eno who just upped his price target to the 255 on apple. neli, you're there i assume you had a chance to demo the products. what the are your takeaways? >> bigger screens are better that seems to be the overwhelming message from apple at this event. the apple watch has a bigger screen and the iphone xs has a beautiful screen and the new xr has a 6.5-inch lecd. that's the biggest takeaway. over the past few years we've definitely seen smartphone-makers as they make their screens better they are able to juice the sales. the most interesting product from my perspective is the xr. not the new xs or xs max the xr really looks like a marriage of the iphone 10 and 8 from last year, the glass back of the 1 and the aluminum band and has the edge-to-edge screen on the front with the lcd.

it's missing features. doesn't have 3-d touch or duel cameras. it's striking and beautiful amend comes in all the colors. at 749 i think that's going to be the new mainstream product for apple. >> angelo, what's your take on some of these announcements? when you be changing your price targets after these markets? >> i think a good portion of, you know, of apple has been met here the last couple of weeks. that being said, we do continue to see upside in the shares. the biggest takeaway here from this call, of course, the migration towards the bigger screens, but the fact that the low -- the low price point here starts at $750 and then you've got the two higher priced screens at 999 and 1,099 at this point when you look at some of the street estimates out there, i think they are really underestimating the upside to average selling prices here for that all-important december quarter as well as for the upcoming fiscal year, so we

continue to see upside to the estimates here over the next couple of quarters. >> you say that you think the lower-priced phone will become the new mainstream product you think that will catalyze some switching or is that the next natural step for people out there holding older phones >> if you have an android phone or an even older iphone, if you have an iphone 7 it's time to upgrade. i don't think the iphone 8 was a compelling upgrade over the 7. it looked the same this phone looks different, and i think we've always found when apple changes the look of their products, especially in a way as striking acts xr with the colors, they are going to drive a lot of upgrade behavior, and i think, you know, it's got the big edge-to-edge screen. a little bit different technology-wise than the xs. i don't think people will care they are seal an edge-to-edge

screen. >> angelo, what do you think about the announcement around the watch? is this a product that is now a must-have and if so, is that bullish for the stock? >> every year -- >> angelo, continue. >> yeah. so, i mean, we were really excited when it comes to the features that we saw in the apple watch. i think apple is doing an absolutely phenomenal job kind of shifting a lot of those capabilities towards being more of a healthcare-oriented device. they will continue to do that here over the next couple of years. it's not a device where android users are saying, hey, listen, this is a product that i potentially want to have, and, of course, if you want that apple watch you also need to have an iphone so we think it could have some broad-raininging implications longer term for the actual financials of the company. >> neli, what's your impression of the new watch >> you know, every year apple,

with a fourth sdwrenratiive gen they narrow it down. when it came out it was all things, could open hotel rooms and unlock your car and now it does communications and does fitness and health and the fact it a they are splitting health and fitness into two different use cases going into fda-approved, adding the sensor with health specifically and saying our fitness audience, they want a different thing, the fact that they are splitting it up means that they can push deeper in those two kinds of markets with more refinement the story of the match is ultimately apple figuring out what it's really for over time they have a much clearer idea that have now more than ever and the bigger screens and the lower price point for the series three, all that stuff will help their accessory sales over the iphone the story of their business is the iphones are at a saturation point and they can drive upgrades and it's flat now they are building out the entire accessory ecosystem and the watch is one of the most important pieces of that

ecosystem. >> gents, thanks so much for joining us this afternoon, neli and angelo. >> an earnings alert on pivotal software and seema mody with the details. >> reporter: take a look at the chart. it's down over 16% in after-hours trading. what is interesting is the pivotal software beat analyst expectations on its top and bottom line, but perhaps not as big of a beat as wall street was hoping for on its revenue. 164.4 million versus the analyst estimate of 158.2 million. this is a stock that's still up over 50% from going public earlier this year. guys, back to you. >> seema, thank you very much for that now, category 4 hurricane florence is rapidly approaching landfall we'll head live to south carolina for the latest coming up. >> but, first, famed astro physicist neil de grasse tyson will be joining us to weigh in on everything from space force to elon musk there he is, ready to go "closing bell" will be back after a quick break.

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s. welcome back to "closing bell." our next guest is a famed astro physicist who hosts the popular podcast turned radio show turned tv show "star talk" and serves as the director of the haden planetarium at the history of natural history and he's co-authors a book called "accessory to war. >> and we welcome now neil de grasse ties lon to "closing bell." welcome, neil, nice to see you.

>> thanks for having me, yeah. >> we'll talk about the book in a minute, but just because this is cbs we've talked a lot about investing in space, whether it's buying the stock of lockheed martin or talking about the ambitions of a jeff bezos or elon bhusk i'm wondering how big you think this will be in terms of the next frontier for investment. >> when you say this you paulina space force or space in general? >> space in general. >> well, space in general. well, space is kind of unlimited. i've said before that the first -- just kind of unlimited. i've said before that the first trillion air will be the person who exploits the natural resources of space itself. the energy available 24/7 from the sun, the mineral resources that exist diagnosis nothing other than orbiting the sun located in asteroids and kmetz, the sources of freshwater in

asteroids and other comets this can be whether or not we can accumulation the growth of our population and do it in a way that can produce and generate wealth. >> at current pace jeff bezos might get to that target even with amazon, and let's talk about his space exploits and those of elon musk and richard branson. do you think when it comes to commercial space travel only one of those three will be successful i ask that by saying whoever gets there first, will they then just get huge investment behind them such that in years to come, you know, one of them will be successful and the other two won't, and who do you think might win that race? >> okay. i'm not a betting man but in that regard in terms of industry somebody gets there first and the person who gets there first doesn't have the most inventive version of it and other people come in behind them. they get to start where the first winners began and then take it to other new levels. there's more than one computer

company and more than one television manufacturer and more than one brand of car so i'm not thinking there's going to be more than one person that takes the money and right. if somebody exploits this asteroid i'm going to exploit that asteroid if your prices are too high i think that space has had a built-in price-checking mechanism on who might try to run away with a monopoly. >> unlimited market with no -- with no monopoly neil, now i'll ask about the space force that president trump created and it was mocked. you've defend it had and said that's important how much do you think that will be a driver to speed up investment and research and development no a space >> well, it's not so much that i said it was important. i said it was not a crazy idea. >> okay. >> not being a crazy means it's a great idea okay but i just wanted to note that we already have active presence in space by the u.s. military and it's under the air force called the u.s. space command

and they have been doing this -- the air force has had space presence ever since the beginning back in the 1960s, so it's sort of an accounting shift of all the space activities from the air force to a new thing that might be called, if it goes through, would be called a space force, and for me i would like to throw some extra things in the portfolio, like how about defending us against asteroids that have our name written on it, that would be a good way to use defense money, i would think. also, space is becoming quite the -- the trash heap. space debris actually can badly interfere with space commerce because if you have a satellite minding its own business and sending transmissions, be it a weather satellite and a communications satellite and an 18,000 mile an hour stray bolt comes through, that's the end of your satellite, so clearing the space regime for commerce should be a fundamental part of what the military does in protecting our assets >> so, neil, we're talking

higher a lot about whether it's military incentives for exploiting space and putting money into space and private sector efforts, some directed to moving people to other planets and things like that is that in your mind a sufficient set a reasons to actually spend money on space? is there not at pure science exploration type of reason anymore that we should have more government-sponsored efforts in that direction >> depending on the wealth of a country there's a spending level below which it has the complete accommodation and tolerance for pure space research, but beyond that, you -- the reason to do it has to be history has shown has to be linked either to economic drivers or to geopolitical forces often that's code for military or defense, and so if we're going to go into space in a big way, it's not obvious to me that the urge to explore is sufficient and the economic

drivers havals worked, and like i said, so, too, does your need for security by the way, security in this case is not just protecting the value of the satellite that is in orbit it's protecting the value of the commerce that that satellite enables. consider the gps system which was launched by the air force and then co-opted by our business community their entire business models that only exist because of gps such as uber, such as tinder want to find out who you are going to mate in a square mile it's getting coordinates via gps, so there's the valuegation of the satellites that goes beyond their hardware, it's what they enable on earth so if you're going to have a military presence, you want the military protecting our assets in space as well as whatever else it's doing here on the ground what is going to open that i think space tourism is a huge driver yeah right now you can go -- well, the russians used to take tourists for $20 million and i

don't know that there was a waiting list for that, but a few people did it. now, that -- that seemed to be a highly sort of elastic demand curve there because if you make it 10 million, there will be more people who can afford to do it, 5 million, 1 million, 100,000. each grow down you'll grow that interest and grow that community and at the bottom you can make it a lottery, and everyone puts in $10 to get a trip into space, and so the first person who does that will make great strides, be it beadsos zos or virgin galactd i'm not going to be the first until elon musk sends his mother if she comes back alive then i might buy a ticket. >> well, we will wait to see that very quickly, neil, what do you make of elon musk's sort of quirky behavior in. >> can you smoke pot in the space? >> well, you need oxygen that you might prefer to breathe rather than using it to combust.

>> good point. >> the marijuana it's a trade-off i'm thinking, you know but his quirky behavior, you know, i went to college, i went to a highly really selective college where people were really smart and weird. and the weirdness became an element of the behavior that i just came to expect. with people who had sort of singular abilities to think or innovate or to -- to project what a future might be so i think we're giving him too -- yes, he needs to comply with the s.e.c he haste a publicly traded company he has to obey otherwise consequences beyond that, let the man be an individual >> where did gou to college? i'm just wondering >> i went to harvard. >> harvard. >> thank you for joining us we really appreciate it and the book is out. accessory to war neil degrasse tie son. >> thanks for having me. >> thank you. residents in the

southeastern states are bracing for hurricane florence for landfall by the way amazing pictures from space. we will take to you south carolina to talk about the preparations next. >> and the cnbc documentary crisis on wall street, the week that shook the world premieres u n'wa tmim.:00 p. yodot nto ss it. when you retire will you or will you just be you, without the constraints of a full time job? you can grow your retirement savings with pacific life

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welcome back the southeastern united states are bracing for hurricane florence, contessa brew ner georgetown, south carolina with the lafayette. >> hi there, wilfred i'm in the historic community right on the water front where the board walk is dead empty the businesses are boarded up. and every few minutes you hear a

loud speaker from the police cars saying we are under mandatory evacuation orders. you must leave now yet the people who have grown up on the water aren't leaving. you see john out on his boat he has it board pd up because they are in the middle of let engine swap. he extended the pilings up so the water surge comes in the boot stays tide up to the dock back in the distance you see big industries that support this town international paper has a huge facility her liberty steel just started operations back up and running ar a sale to a british firm. and the csx railroad tracks connect to the port. it's known for taking the bulk cargo, cement, forestry products, steel and moving it off shore. today that business is all but turned down- dsh shut down because of the impending storm tp it will stay closed this port, until monday morning when they hope to get things back up and running at this point. the police officer who came by to check on things said a lot of

the locals have not heeded warnings the businesses at this point they are not taking any chances and they're out of dodge, guys >> all right, contessa thank you for the update keep us posted. contessa brewer. >> sure. the allure of millennial gvorite avocado toast not lost onoldman sachs interns what the survey shows about the class of 2018 next

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welcome back every year goemds superiority surveys the summer interns consisting of 3,000 summer analyst and associates among the survey results the group naming former president barack obama as most admired figure six% use cash to pay for items on average they are willing to spend $6 on avocado toast, even more if if includes an egg. i wonder how that was worded to them do they have to write how much -- i'm not sure the interns in new york would have got that 50% would like to be a ceo when they're older. a entrepreneur if you are applying to big correspondent behemoth. >> you would hope they would have ambition in that direction.

it was a big sample. like 1,200 respondents or more. >> i was amazed there was over 3,000 summer interns analyst. >> pointed out a result for neil tyson. >> 80% would rather travel around the world than into space. >> i think 20% popped fairly big given we're not safe yet. >> and they're most afraid of ai as a long-term threat. >> the other thing, 64% with an extra thousand dollars they would receive it or pay off debt that is clearly to try and get the job. they didn't want him to think he is a freezing drizzlous tray trader opinion the people applying to goldman sachs want to save money that's not very. >> don't you think if they wanted to get the job the most admired would be lloyd blank fine, solomon. >> they'd be smart to put on solomon if they've read the news. >> avocado toast.

>> square says $6.78 national average price of avocado toast >> travel around find it cheaper. >> my next -- the take on the next avocado foeft is breakfast bull zblools breakfast in a bowls. >> different than cereal >> we've run over time my apologies "fast money" begins now. >> i love bowls who doesn't layoff love a bowl overlook new york city time zwar seem steerm cartinger werth. guy adami tonight on fox snap stock looks like it's disappearing plunging to a low after a top analyst ripped the social media company apart we will tell you what was in the report that had investors ghosting the stock plus ben bern naeng speaking out ever after the kriez and guy adami has choice words for the federal reserve chair you won't want to miss start with apple launching a cr