♪ >> that was really really good >> what a voice from such small little girl. >> wow >> watch the whole thing if you gate chance. thanks for watching. >> closing bell starts right now. >> instagram founders and what it means for the future of the social media giant >> i'm meg at cnbc headquarters. take ago big step to lower the cost of two of its drugs, what's behind the move and whether others will follow suit. earnings in just over an hour from now. we'll bring you numbers and any impact from the colin kaepernick

ad closing bell starts right now cnbc is here >> a little bit wet. >> it is really heavy rain outside. >> what were the big highlights? >> planning to say this will be a very tough speech fromhim. he will say there's hell to pay and serious consequences for iran if iran defies the united

states in terms of negotiations going on here is what he said. >> they are ripping off the rest of the world and i don't like it nobody should like it. we defend many of these nations for nothing and then they take advantage of us by giving us high oil prices, not good. >> so the president there saying not good and also saying he is not going to stand for high oil prices not clear what the president has in mind other than that defense contributions as sort of a stick to get them to behave the way he

wants them to behave >> how do you think it is likely to go down we heard the lafr tughter in th beginning especially with complete reposturing from the united states. >> the rhetoric was tough. not when we had the little rocket men reference the president a little bit differential i think world lead have been able to sort of understand on a trump scale where thiswas.

does that suggest that we are at a greater moment of tension and how will the president react to that kind of laughing at him >> i think there will be forensic to decide if they are laughing at or laughed with. that's quite something the president made this dplecom and he said so true. so true. i think what they were arguing at is his reference to his own speech, sort of commenting on his own speech >> the ad libbing. >> yeah. he says that's a really good point that i just made maybe that's what was going ochblt it might have been that the world leaders were actually laughing at him because what he said is is he accomplished more than almost any other administration. >> and i guess we also heard

today, did we kpcexpect to get o many of the other nations to unite in relatively firm terms is this crystallizing quite a big deference of isolation >> it is a dynamic but the president signified he is not worried about this but sovereignty. >> it is on u.s. inden ppendence it is what the president will like politically but ultimately we saw him say he is not going meet with him. would there still be a nemeetin here i think so we might see those two leaders face to face keep an eye on that. >> okay. great to have you with us. >> thanks very much. let's continue the

conversation good afternoon you both. jacob, let me start with you what did you make as we were just discussing? is it laughing with or laughing at the president and how do you think he might react >> well, i mean certainly to me it looked like laughing at i wasn't in the room i can't really excellent i think the significance is that these are world leaders and top officials from around the world clearly in my opinion not paying very much attention to what the president of the united states has the say. i think it's a pretty strong indictment >> for investors that are watching the various trade fights and negotiations going on between canada and mexico and europe and china, is there anything to take away from the president's posture from the

rest of the world and today's u.n. speech? >> i think -- >> that was to brett >> okay. i think that's one area where the foundation and administration is on the trade policy we believe in free market principals and we believe it is a mutual benefit to the american people and to the countries we engage with economically we would actually like to see the administration in quite a bit of ways. that being said, on the comments earlier during the speech there's no doubt that they would manipulate through the price of production and having a more free market would benefit consumers around the world and also lead to economic growth more broadly >> what do you make of the possibility that it is all part of his negotiating tactics and

president we have seen displays from him at big group gatherings in the past whether it was the u.n. today the more important thing is bilateral meetings or of the conversations he is having as well >> i certainly hope not. we are going to have a number of very important bilaterals i mean so far i have to say if he was really serious about the oil price, you flow, it's very clear the main reason the oil price is because of the threat of u.s. sanctions which he has instituted he could do something about that right away he doesn't want to quite frankly has he succeeded in his bilateral di ploemt si f -- diplomacy for the rest of the world? he has gotten 1.1 which is very similar to the one he had before

he has pulled out of other international agreements he doesn't have it with the two countries yet. it is to show for his otherwise negotiating skills >> he does have a very strong economy and the numbers keep coming in and they are better. it was a highlight how much leverage does it give him on the world stage when it comes to trade negotiations or making demands >> it is always better from a negotiation standpoint the u.s. economy has been growing. the unemployment rate is very low. now, the president mentioned that oil prices are in some way linked to the sanctions that were imposingen iran

you have to understand that the united states is looking at iran as a serious threat outside of the economic realm it has special adviser mentioned it has identified not only the support for terrorism, the nuclear program, iran's pursuit of that. all of these things are tied together making iran a very serious threat to the united states, to allies of the united states and also a source of instability within the region. these things have to be dealt with if it results in an impact of oil prices it is through other members or in the united states itself which will be a response to higher oil prices >> the president made that point loud and clear today we'll levave it there

thanks for joining us. >> thank you joining our closing bell exchange you see this speech the u.s. rejects what are the investor implications for that? >> i think there's a lot of noise. not that what the administration says is noise but unless it gets impacted that businesses have to deal with then it really is just noise. >> isn't that with trade >> i think the trade stuff is interesting. it hasn't shown up in any of the inflation data or any that we forecast >> do you agree? do you think it's noise? >> we have heard it from day one. we heard it actually before

president trump was president trump when he was candidate trump. this is on a continue uous basi. he has had a bunch of issues seems to me it's all rhetoric. hasn't had a big impact. i wouldn't think we will see anything different right now >> highest level in months what's the driver? >> the driver is best conference board consumer confidence in 18 years. the u.n. doesn't run our economy. i guarantee if they did i doubt we would see it. we always forget in the end globalization is more about -- think of the way they would put forth world war i. when it moves in that's where the issues start not to get off the topic but

rates continuing to go up. will they go through like a hot knife through butter they could i don't personally think they will but i wouldn't be shocked to see 317, 318, 320 very quickly here when it comes to rates it isn't only the u.s a two-year note is mine new 49 to minus 50 points.

>> talks through the effects >> it was three stocks, your r verizon and now you'll have all of the media companies and you'll have facebook and google. where are you going to go? you going to pull out and go into the communications sector it has been forgotten for how many years now no one wants to buy century link you're starting to see them catching a bid, indirect bids looking far growth very interesting in a marketplace. >> and that's performing well today. >> it's leading where you would normally see -- >> right >> you also get the defensive base for the telephone companies, the standard of earnings from the media and now high growth from netflix >> yeah. twitter is up today. energy is up you're seeing oil prices here, multi-yearhighs.

>> it soupds like she on board with president trump >> i think his energy would go down -- >> shake things up >> wouldn't be a question of where they are at. it would be resounding applause. >> still to come, shares on facebook taking a hit in early trade. what it means for the future and facebook at large. that's ahead and later leaping into the luxury market, buyout of ver -- send us an e-mail. closing bell back after a quick

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bell the dow is down 66 points as we speak. not far for the lows but there are the winners. nike up 0.7% it would be expertly broken. >> no pressure >> no pressure >> just destined to break, so she better deliver mcdonald's leads the pack up 2%. >> your big earnings are in the morning. >> right a pair of high level exits during the future of the app and facebook into question we have the details in los angeles. what's the story here? >> instagram cofounder are leaving the company as cto and ceo after selling their app to facebook in 2012 for a billion dollars. they were planning on taking time off to explore our

curiosity and creativity again facebook shares bouncing back. these two executives comes at a time when instagram is considered extremely important it is adding users when poor service stagnated. it has more room to grow it comes at a time when there's growing concern about depa a departures dan rose announced he is leaving after 12 yoors there was a cloud of scrutiny for election manipulation. it raises concerns about whether there was tension over a push to more closely integrate into the parent company facebook. it will replace as instagram ceo. the information is reporting the

vp of product will get that job, will >> and also some departures that snapped today is not as high level. >> no. to instagram sort of serves a unique role. facebook announcing that who is head of communications has announced he will be leaving at the end of the year. i spoke to her she has been at senate snap chat i asked her why she was levering she said now that she helped grow this company to over 3,000 employees she feels like the company is in a good place to allow her to take a step back and take abreak.

>> a lot of changing it seems like if you have been within a start up people like to take a break after a certain number of years. >> and particularly when they banked such big gains. thanks for that. we'll continue to discussion gauge for us how big a blow this is and what it means for facebook going forward and the instagram founders i guess on one hand these two stay for kuwaquite a long time. on the other hand it's another big set of high profile departures particularly from the types of companies they acquired >> i like the story, but this is probably something that has been in the works for some time i think it's only natural once the founders go ahead and sell to a place like facebook that the new owners, new ceo, that he

will attempt to exert more control and influence. probably the founders of instagram, i think they felt their influence was being diminished the key point is that instagram in my opinion is more valuable to shareholders as part of facebook that is facebook axccelerated is growth getting users up over a million. facebook dramatically increased value within facebook and for marketers and advertisers it's really one ad's eco system which shares and uses learnings across facebook and instagram so, you know, i think it serves to create on the revenue and expense side and made instagram more valuable. >> but the question is under wloz leadership was it

how independent did instagram run and if what happened you know, he was saying there was a growing tension between zuckerberg if they are out do they still get the positive contribution >> i don't think zuckerberg will be leading it. i think we could expect at instagram and very much part of its, you know, close to understanding that culture that he really oversaw as ceo we would expect him to take over and then this new head of instagram to report up probably up through mark zuckerberg i think it's inevitable when you a start up for there to be tension between the heads of those two companies. facebook understood it wanted to

be creative in its own separate way. it is so there was an easy system to buy across facebook and instagram. so i think that facebook is increasingly looking to instagram to drive growth. a lot of speculation and closer integration between the two platforms. i think he will be smart enough to know he won't want to take away what made instagram so special. >> and share prices have pulled back significantly how much of that is down to the various management questions at the moment and perhaps the best that sfoford is dealing with >> i would say two points. i would say first of all there are lot of examples where the founders go ahead and sell to a larger platform. that goes onto flourish and grow in value i think if papal is one dpafexa

of that. the other thing is that you're asking about management changes. there have been departures by standards the tenure of the leadership of facebook's top 15 leaders i would say has been long it has been pretty tenured, pretty long standing and so i think, you know, if you look at it you take a step back it has bchb fairly stable at the top. a lot of that is his inner circle i think if you're betting on facebook you're betting on the very senior positions unlike other companies have been more stable. >> thank you for weighing in not sure we would be having this conversation if facebook wasn't

facing trust issues with people over privacy concerns and election interference and fake news it comes at a bad time >> i think the founders departing you can understand it is clearly on a privacy issue. it is allowing people to under terms of enkripgs. it is quite a long time ago. the founders, you know, understand that. >> correct still ahead, nike top performer on the dow this year with shares trading near all time highs we'll bring you the results as soon as the numbers hit after the bell >> i can't wait. 4:15 >> pressure. plus a big shake-up today, what it means for a country already dealing with an kplik crisis we'll discuss that and much more here on the closing bell

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ventured at a price equal to whatever the price is that's decided after the close of market today that vote of confidence in addition to the number of active users, about 16 million over the last year and the data incites from the platform contributed to the investor demand. investors were also optimistic about the futures despite being about 14% which is lower than a lot of these companies typically have as well as widening net losses for the compared with the prior year survey monkey is a four times

disrupter company. >> 60 million kwluzeusers signe. 600,000 pay. wal watch for that argentina has stepped down after three months on the job. caputo is the second to resign this year. he sited personal reasons for this is dollar is higher. the peso is halved the main thing is how tricky it is for them to serve these issues you have them going to the imf the president saying yesterday in an interview he had thought

it would lead to a better reaction you have turkey and other not going also struggling to shake off problems >> good point. never a sign of confidence to have your central banker just leave. >> no. but i think it would be a much worse eaction. >> the finance minister are not seen as under control. the key focus is always on t

there. time for a news update with sue. >> sheer what's happen agent this hour. president trump singling out iran for harsh criticism in the annual address at the united nations. he vowed the u.s. would continue to isolate iran through economic sanctions. >> the corrupt dictatorship, death and disruption they do not respect their neighbors or borders or the sovereign rights of nations. >> iranian president speaking to the u.n. general assembly says u.s. sanctions against his country amount to economic terrorism. he added that the sanctions will harm people beyond iran. and new zealand making

history by bringing her three month old daughter that's the first baby to attend the general assembly her partner was in attendance as well >> she even got her own u.n. badge. she is adorable. >> i love that is this the first baby to ever attend at all or the first child of a leader? >> as far as i know it's the first baby to attend the u.n. general assembly >> which would make sense. >> which is leaders. >> makes sense >> by the way, i agree >> absolutely. >> sue, thanks very much we'll see you in about an hour's time still to come the highest level since may. one expert says buying the rates is foolish he'll explain why after this break. we'll dive into the multi-billion dollars buyout as

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>> welcome become to the closing bell abbott labs since 1929 when it first traded on chicago's stock exchange >> hitting the highest level since may. it is ahead of trade hike decision tomorrow. joining us to discuss where bond yields go from here here at post 9. peter, not just a ten year, a 30 year highest level since may. how does this set up look into the fed for the bond market with

these rising global yields >> what's happened is the curve started to steepen a bit as it is approaching the key 311 level. the fed will keep raising interest rates on the short end which is one of the factors in flattening the curve we are seeing rising inflation expectations we have had pension fund buying before a deadline for them to apply for a higher deduction i think a culmination of good and not so good factors leading to this but either way rates are going up across the curve. >> do you agree that the slight steepening gives the feds a little more coverage to hike rates? how many do you expect for this

year >> i think it is one more after this but i'm not a big believe their we are going to have a four year ten yore within the next ten months i have seen too many deflationary >> you're talking technology >> exactly >> do you agree that the ten year can't go up to 4% that this might be it when it comes to rising rates for the year? >> before we get to four i think we'll get to three and a quarter by the first quarter of next year the deflationary forces, we have had deflationary forces, we have had it in cases. so right now with tariffs i see

faster wage growth than fred does i think we are seeing it pretty much across the board. he is talking about williams that they don't mind getting close to a flat yield or maybe even inverting they will keep on raising short term interest rates. the bigst factor is how are bonds going to respond when they are pulling back to have to believe that lit not be sitting here next year when he is completely done? >> when we get to 4% if rates will raise is that a tron buy the banks that have pulled back? >> i don't think it's a reason to buy the banks i think it is not the same banking industry that it was 20 years ago when i was there for ten years ago. it is a very different world today. the fun of it has been taken out

of it. there is a lot of capital out there. i think the -- >> even with trump administration working to roll back -- >> i think it will happen. i don't think it will happen it won't change the universe in my opinion >> i want to come back to your comments there on german yields. i haven't caught up with you in a while. are you still in terms of how hard the economy will be hit when qe is ended in a way that perhaps the u.s. economy wasn't hit when it ended here >> i'm not as certain about how the european economy responds. i'm confident european rates are going to rise which will obviously impact growth. i'm uncertain to what extent i'm most worried about the bond market and how it responds we have already seen a rise in yields my correlation and the reason why i brought it up is because if it goes closer to 1% you can

believe that the u.s. tenure is going to be heading higher as well in yield. >> very quickly, rate hike baked in the cake tomorrow what will you be listening for or what kind of language will you be watching out for? >> i want to see whether he leans to a december hike he doesn't necessarily have to because he has time between tomorrow and that september meeting. will he bring forward 2019 hike into december in i think that's really going to be the key in listening to his body language and whether he will be explicit in leaning in one direction or another. >> and you expect it in december >> i do expect it. >> all right michael kors, the deal to buy fashion house today. that's coming up next. st job. the consequences underwater can escalate quickly.

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13 minutes to go >> they have renamed themselves and that was out there it is buying the european house $2 billion yesterday the stocks sold off because some were worried ability the price tag. had the chance to talk about the strategic rational here. he said what's exciting is we built a luxury group in a year he says versace is under developed. miking kors is the founder of their brand. we talked about the multiple he says it is what other luxury multiples are right now.

they will focus on building an e-commerce they put out a lot of stats about versace. >> are you sort of loud? >> i have lots of thatstuff. they are actually thrilled and look at it as an example of how they have been a good builder of brands and sort of giving these companies more leverage to grow and more of the back office operations they know so well.

adp and paychecks off a little bit. adp found not too much it is up 11% or so clearly another big step in the right direction. we have great performance. it is once again a payment based step and progress. it is still not that kind of checking account, banking-type service. we have details of this short

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it values sonic at around $43.50 per share. it is a 19% premium. the deal itself is dpexpected t close. sonic will operate as an independent brand. shares hit a new all time high of $44.87 a share. we have se >> it was brought out in august. mexican chain to global management back in march we also saw buy buffalo wild

wings. in november of 2017 and panera bread in july of 2017. in the coffee also owns keurig among others he said now is a full-time for acquisitions back over to you >> who is left operating independently around this size >> yes so really saying any company with a $2 billion or less is really fair game we'll see who might be next. up next we'll be back with

the closing count down we have 4 minutes 20 until we close. [knocking] ♪

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your neighbors. you like them. they always remember everyone's names. your kids love swimming in their pool. you like them. if you forget your trunks, they'll loan you some. they have a section in their stock portfolio just for pool stuff. everyone likes them. you like them. but you'd like them better if you made more money than they do. don't get mad at your well-liked neighbors. get e*trade. let's start. consumer confidence and we go to the fed meeting tomorrow what has it done they have been a little bit soft

today because of rising rates and political concern. today you can see we are near the lows of the session as we a proech the close the dow is down a little bit more. the nasdaq is performing and holding onto positive territory as we approach the close sectors today tells this sort of broader story. not many of them have energy is nicely higher. the new sector of communications surfaces also puts the rest negative earnings wimping to that topic

would be a topic we'll see if earnings can change that >> there goes the bell we are down 71 point on the dow. it is down 0.3%. nasdaq united nations development are program. it does it for the first half of the closing bell back to you. >> let take a look at how we finish up the day on wall street stocks were soft dow closing lower. 65 points at the close s and p kind of near the flat line you did see strength

consumer discretionary helps explain the nasdaq's rise today. russell 2000 higher. two big names reporting earnings after the bell this hour nike and kb homes. survey monkey set to price any minute now it aims to price above the range. we'll have the numbers as soon as they are out. joining us on the panel today talk about this. michael block is here from third seven advisers intel was the biggest decliner abiomed was the biggest and century link was thelaggard.

>> everyone reminded that it isn't resolved we had this consumer confidence number at an 18 year high. there are a lot of cross currents here. i keep going back to yesterday not letting a lot of people watch. dallas has been the strongest district that all 12 report statistics and surveys it was a little weak yesterday new orders at a six month low. no one is talking about this i'm talking about it and i'm talking about it now there's a lot of cross currents here the dallas feds showing off. you mentioned the chips are weak retail remains strong. a lot of things to buy and a lot of things to sell. >> consumer confidence as he just mentioned is pretty strong. is that something you think continues through the rest of the year >> well, it's possible that it

could continue you have seen that the economy is strong and employment levels remain excellent, 3.9% unemployment and wages are up 2.9% year to year which is the highest in quite a while we need that to continue if we continue to see as we have gdp growth there is no reason why we can't go into the holiday season with consider able strength in both consumer confidence andspending that sector will not be the same anymore. >> what do you think of the overall market levels?

is there sense we are seeing a bit of rotation? >> it has ban bizarre quarter. we have to go back two years to see a period of three months where you had this back and forth, days where the dow or nasdaq took precedence we had a third of the days in september where we had more than three quarters of a percent difference in the returns for the dow stocks that's very very unusual the dow ahead 2.5% over the nasdaq for the quarter what does that mean? it means that people bet on one day that it is going to be these big multi-nationals that will drive the economy and their stocks will perform. they have under performed for the last couple of years or that

conversely they pet that, you know what? a company like caterpillar or boeing will be hit hard. it is better to own tech stocks or names like amazon or where you don't have as much of the tariff risk. like today was a nasdaq day. tomorrow could be different. it is an unusual market. i think it will become clear when we get to earnings season when companies have to say whether they have been hurt or what the we fkt of the tariffs are. >> i want to add in two lit tle elements that is rising oil prices and rising sbro rising brea rising interest rates. i'm wondering if you have to switch up exposures. >> sure. let's take it one at a time. oil prices here. people were not concerned about

demand you get higher oil prices here i think it's a little ahead of itself she pointed out that's lot happening here it will come down to earnings season i have one keyword here, margins. maybe amazon and netflix but a lot has to do with the fact that retailers have raised prices and have been able to pass those along to consumers maybe it's not true. we have to ask ourselves, can retailers continue to raise prices when -- if gasoline prices will go up with crude it's a big question we'll have to ask ourselves i'm concerned other costs will go up. if you're try to go drill oil your costs are going higher. that's an issue. as far rates, tomorrow we have the feds i joked that's million% chance they will raise rates on wednesday. haha the bond market backing up anticipation of this we have to ask yourselves, what's going on here

it is giving us a mixed picture. are they rising enough to say inflation is going to overheat in that remains to be seen personally i think the bond market but it will come out from under their rocks and start cheering it will be put in back out on treasuries you know, we are going to see. >> there is a million percent chance >> it wasn't a classic gag but i have -- >> i have heard a couple of shots from the control room too. >> auto stocks after bmw cut the profit outlook bmw closed lower by more than

5% this is an example of more than 5% which maybe can't buy that. >> it is in the cross hairs. you're dealing with maybe they can't pass along price increases. they don't know what the price increase is. guys running companies in detroit, all over the world going into november keep loosening the screws by say we don't know what's happening with trade we have to be conservative we have to assume the worst. we'll cut our forecast by the way, consumers are out there saying maybe i can wait to buy a car too. >> what do you do with an example of a group of a trade war but other factors that

weighed on the stocks? >> if you're asking me i would say we don't own them. it's a difficult industry if you talk about who is going to be heard by trade, auto and then of course some of the auto companies in a sense to be positive towards the united states and this administration has moved more production here now that it's turning out to be a negative one also has to say if you look at auto sales they have been relatively weak. the gap between new and used autos is very very high right now. that makes new cars much less attractive it is a tough business to be in. i would, you know, i'm comfortable staying away from the auto sector. >> let's move onto the political impact on markets. taking aim at iran today amy is is here onset with us for details >> yeah.

perhaps a little more of a diplomatic opening here. here is what he had to say >> we invite you to come back to the negotiating table you left >> if you dislike because it is the legacy of your domestic political rivals then we invite you to come back to the security council resolution >> so there inviting the president to come back to the table. the president is called the iran nuclear deal one of the worst deals in the history of the world. not sure he will be able to meet him in the middle on that. we also saw the president of the united states out there today. very tough on number of countries around the world it is particularly tough on

china. she here is what he said on klichin trade. >> the united states on another $200 billion in chinese made good for a total so far of $250 billion i have great respect and affection from my friend i have made clear our trade imbalance is not acceptable. >> from the president there suggesting that the trade imbalance is not acceptable. the question is where is the offer ramp in terms of the tariff war is there a point which both sides can back away from this escalation we don't see it yet. nothing there today to indicate any sort of moderation yet it has to be out there somewhere. >> ton latest comments he is being a little bit disingenuous there by saying we invite the president to come back we are the ones open to talks.

the last month or two he says quite the opposite saying we are not willing to talk to the united states because we don't trust them >> he tweets the president by suggesting that the reason he didn't like the iran nuclear deal is because of political opposition that is barack obama and not suggesting that the reason is on the merits of the nuclear deal as well. he doesn't say he doesn't like it because it was obama's deal he says he doesn't like it because it was a terrible deal i think tweaking the president a little bit there but inviting negotiations i don't think they are necessarily prepared to meet them at least an opening there rhetorically there >> a lot of talk obviously about the president's overall message, his tone was it anything really new it was a lot of the america first principals it sounded very much like what he was saying. it play be delivered in a more

sobering tone. >> this is an opportunity for the president to package his world view and present it to the nations of the world and ultimately what he is doing is pulling the united states back from decades of globalization and from a lot of multi-national institutions that the united states helped create this president suggesting that the american voters have gotten ripped off all of these decades and saying we need to pull away from that. >> it is really tough to figure out the investor implications, short and long term of what he is describing isn't it >> it really is. we heard from president trump today. we didn't hear from him. what is he thinking? he is thinking he will wait until after the midterm elections. the checks are along the effects that they are going to be patient here they not expecting trump to be gone it isn't some kind of impeachment call it is more like the election

campaign gets down with they think it will be easier to negotiate and think by year end there will be progress made, more clarity and more working together >> and last word to you, do you think the reason is some of those sort of geo political tensions immerging from the u.n. >> i think it's likely what we have seen is the market being there a fairly disinterested in the near term with what impact there could be on the earnings for companies that could be seriously effected by these tariffs and when you have discussion at the u.n. about trade tariffs people start to sharpen their pencils, look at their models and say wow, i think my numbers might be too high and it takes down confidence so we can have an unsettled period over the next

few weeks. it could be day-to-day about how seriously they take the concern for tariffs and whether they just shrug it off. >> thank you both for joining us great to see you and have you here onset nike set to report earnings any second now we'll have analysis of the results. find out if the dow can keep out dchs performing the rest of the blue chips (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math.

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going through the numbers looks like north america was right on target with what was expected. important market has just seen a turn around. it is also the big growth driver coming in at 1.3 billion and that was also pretty much on par with what was expected so perhaps investors are seeing a chance to pull back after what has been such a big winner if you look at the after hours reaction nike shares down 4%. it has run out more than 5%. best performer, these numbers on target with expectations continue to point towards

growth >> by all accounts it has been solid but it hasn't come from nike they want to hear about the direct consumer strategy. >> the stock has run 35% into earnings here. a 10% revenue growth it really needed to be a bit more than that to keep the stock

moving i think nike is going larger than direct. it is cutting out more of the whole sale channel and has some of the best product out there in the space. >> so jan, would you look ata 4% decline here? >> i thought if they turned in a 70 today we would see the stock better i thought 65 was good enough and thought 67 would be an okay number it looks like this is saying exactly that i have been positive on nike for over a year now

>> i don't think it was for broader business >> why don't you think it was good >> because i think it thurt business in the mass market. i think it was very good with the under 5 and the under 25-year-old. i don't think it was a help. i think it is a mixed thing

>> can t channel got very clean and adidas became more exciting. they have color, newness they kind of own the space right now. i would say going forbaward youd need to watch out. they do look okay that are more exciting and they launched the falcon, another collaboration here watch out for market share there. right now in terms of product out in the market and the long-term margin potential nike owns it. if you're a long-term buyer of some stock in this space i think nike is the one to own >> another earnings report

>> yeah. earnings per share came in at 87 cents per share it is higher cost for delivers up to 2,988 homes. one red flag, the cancellation rate very high at 26%. most of the other builders are in the teens if you a cancellation rate you have to look at what the orders are and take 26% off of that going orward

>> coming up we'll find out how likely the fed is to raise interest rates at this meeting and beyond survey monkey,e' h wllave the latest details on the offers when we come back. alerts -- wouldn't you like one from the market

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survey monkey. >> people customize surveys. >> and the company that allows do you that is called -- >> survey plmonkey leslie has a picker. >> hey, good job with that one sources tell me pricing decisions should be made within an hour or so. as you know these things can be very unpredictable it could come later than that. it is based on stronger than expected deplan amand a price above that range would mean that survey monkey is raising more than $160 million higher than $1.4 billion the company and advisers could change their mind and opt for more conservative pricing after they start taking place after the close today.

survey monkey filed under the name svnk inc. the company helped gather and understand the survey feed back through their big data platform. that's a keyword for investors these days the company's board includes sheryl sandberg whose husband had been the until he passed away price advisers will often use what they call comparables or similar businesses that are already publicly traded. sources tell me investors are using stocks like drop box to find the price both stocks closes hider today the deal being managed by j.p.

morgan it will be listed under the n z nasdaq it will begin trading tomorrow >> you mentioned sheryl on the board. ser reen f serena williams is on the board. who are the competitors when it comes to reaching fortune 500 companies? >> they were the pioneers with this one they were founded in 1999 and they were the first ones that could make the surveys for public and for companies and individuals to help get some feedback on how they are feeling about things they don't have much in the bay of big customers they tend to offer similar services they really are kind of the main brand in this space. they have a nice around them when it comes to customizable surveys. >> thank you very much for that. i was sort of surprised that

drop box is comparable >> i guess a lot of this is on the cloud. >> yes >> ask the ceo about that later. he is coming up on that tonight. let's have a look at how bewe finished the bay on wall street nasdaq slightly higher as was the russell in terms of sector performance here are some of the stories that helped us get there. >> instagram's cofounders resigned from the photo sharing app owned byfacebook

>> explosive charges against am for stealing vast swaps of confidential information >> a sonic just opened a few seconds ago. they will be required $2.3 billion transaction >> michael kor's has bought versace. >> the economy is still ripping. you saw the numbers. these huge growth numbers. we said it first we know because we are listening to these numbers >> president trump making his case for america first before world leaders of the nation. >> america will always choose independent and cooperation over

global governments control and domination >> busy monday news day. time for news update see what else is happening out there. >> it is very busy today thank you much here is what's happening at this hour bill cosby leaving a pennsylvania courtroom in handcuffs to begin serving his three to ten year prison sentence stev steven refused the pleas to keep him out of prison while he appeals his conviction senate majority leader says she confident kavanaugh will say he has the 50 votes needed >> we'll be moving forward i'm confident we are going to win. confident he will be confirmed in the near future >> residents of conway south carolina shocked by the amount of water inan dating their homes

ten days after hurricane lawrence made land falls homes are under water completely th it will take weeks for that water to recede. a terrible situation down there. that's the news update i'll send it back to you >> for a tuesday >> right >> thank you the founders of instagram latest executives leaving facebook after reportedly clashing with mark zuckerberg. we'll determine whether it is foinexuteso ee aveling hassle-fre with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money.

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instagram cofounders say they plan to resign there facebook to explore curiosity and creativity again stocks closing down. >> joining us is scott from the nyu school of business if this is purely driven by them wanting to be more creative would they not have left earlier? >> it was six. >> words matter. it is clear facebook didn't

approve this press release they said they will start something and look, founders get -- i'm a founder of several companies. control is really addictive. most founders leave. a lot are trying to figure out what it reflects about facebook. generally speaking it's a matter of time before the founder leaves founders are not good in bigger organizations where they are not in charge. >> but it has been so good for facebook whether it is having them on board or having instagram? general on board that it raises questions. there was a clash over the future of instagram with facebook what are your expectations >> it doesn't surprise me. >> it is a billion dollars by any reasonable metric it would have to be between 50 and 200 billion. so amazingacquisition.

maybe instagram will be used to suppress turnout i can't imagine it right now >> and the acquisition has been fantastic for facebook whether or not they are now leaving. what about the broader question of management, other departures and the kind of difficulty they have got on their hands? they are hire ago lot of people to deal with this. is this something a company this size will be able to evolve and deal with? >> i think facebook is bad for the planet to be fair i think they have

built a fantastic team they have been around the employees. the company has shown unbelievableagility. growing 30% a year even with expectations p and g are growing at 19. it is hard to argue this thing isn't cheap. it is regulation i don't see

happening in the short term. >> all right thank you for dropping by. >> let's dig into the management question they left facebook within the last year he left and reportedly took issue with facebook's approach facebook purchasedin 2014. >> he is not 100% right. it can be retained a lot of company have lost their talent you can find companies that have

acquired the company a lot of reasons disney was buying into pixar they have retained that. they even have the creator of pi spider man he is still there not to mention the actual functioning ceo he has been there since the 90s. you can and they are very creative you can find places like walmart that they are still in there it's the same period of time ups have people in the top poe cigs that came in and they can't work we have seen media companies do this and destroy the talent that went out to buy. it can be done >> jeff, do you feel like these

founder, particularly the two instagram founders, the latest to depart, are embarrassed to be employed by facebook after all of these problems and do you think it could proliferate more widely across the company? >> yes that's the part i agree with whether or not it will be the way of my space but this is not a good day to be buying facebook it is a sense of courage and creativity seems to be displaced with something that has a lot more to do with ambition people are embarrassed about the reputation hits if not to undermining of democracy and lack of candor companies make mistakes. their repair job has been very

disappointing. it is upset people inside here also it's the intrusion. they were cross promotion was supposed to happen equally they were finding it wasn't happening so much coming from facebook >> this is just a natural sort of process if you look at most in silicon valley and beyond the founders are out >> if we are looking at microsoft they lost a lot of them they are able to hold onto

these. at disney able to hold onto the entr entrepnaurs. it is not a necessity. you takea look why are these people over the same period of time very much embedded inside disney bob knows thousand manage creative talent. they have a great pollination. sit what deeps that as a creative shop. it isn't the intrusion of mark zuckerberg >> right >> thank you is much for joining us great to have that perspective on this discussion shares finishing lower on the day as the company takes another step in the fight to lower drug prices. we'll tell you what they are doing next climbing higher as the feds expected to hike rates the impact on banks and the economy coming up.

plans to launch a generic version of one of its key drougs >> it is a new twist in the saga it plans to bro deuce lower priced versions of hepatitis c drugs. how much lower $50,000 on the sticker price

they will be identical without the brand names. he did this with the epi-pen it was in the spotlight earlier after it introduced ground breaking hepatitis c treem it offer add cure in just 12 weeks but the price raised a lot of eyebrows, $84,000 it broke down to a thousand dollars a pill since then through discounts and rebates the average price paid has decreased by more than 60% they say patients weren't always seeing the savings they say the move appears to be focused on reducing out of pocket costs for medicare patients and could shift market cost in medicare and medicaid. he says it is hard to imagine gilead would make a move like this and competitors wouldn't

respond. are we about to see a new price war in hepatitis c drugs >> i'm wondering wloz revenues this question. most folks don't think this hurts gilead because it was already seeing the discounts on the drugs. who it could potentially affect are distributors as you mentioned, potentially pbms depending how much they benefit from the reebt getting paid on branded drugs. it says a lot about the drug supply chain this this might not affect the drug maker itself. >> all right meg tyrrell, thank you interesting story see if it is a trend. >> yeah. >> the pharma companies making their own jenn across. the fed expected to announce a rate hike. how many more hikes on the horizon? what's it mean for the economy. >> and coming up on "fast money," could the ico crackdown on the which for krip o.

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welcome back to the "closing bell." the fed rate decision is tomorrow steve liesman joins with us a preview of what to expect. hey, steve. >> hey, you can't talk this without the rest of the year look at the one in december. look at the fed expect aches in the cnbc survey. 98% look for the hike in september. 96% which is good agreement and four rate hikes expected in '18 and 2.5 tells you that half of

the men and women think there is three and 3.92 the director of fixed income at has been areford in response to the survey, the fed funds increase in september and december are as certain as certain can be the fed's real challenge starts after the first increase in 2019 which will bring the rate to 2.75 or finally back to even to inflation. here is the outlook for the economy. what you see is a 3% growth for 2018 and not a drop off for 2019 as well. unemployment ticks down. inflation stays at 2.5% level. we asked folks will the fed go above neutral? the answer 58% said yes. 33 process% said no. they are looking for the fed to actually raise rates a bit to slow the economy tony from pimco writs the u.s. bond market will reach a decision point in the next year when market participants have to decide whether the fed goes beyond current market pricing.

what exactly market price something right now sarah awicht lf they are in the sure but the fed is hiking tomorrow and probably for christmas. >> how many nextier and the year after? is it harder to make the rate projections in the environment qb steve, where you have the new cast of characters on the fed and unpredictable events like the trade tensions. >> you named two key factors we have new folks on the fed as well we don't know preciselyhow the come in in terms of hawkish or dovish we are not sure how much the tariff problem matters there has been ac backing off of concern in this spray. with the new concern being the fed makes a mistake. that is the number two position. and there is also the stimulus and tax cuts nobody is quite sure if there is a piece that's a tax cut that it's around for a while. then a piece that's the sugar high, waiting to see -- there is

some expectation i was interested, sarah, in the survey earlier in the gdp outlook. i thought people would forecast more of a drop off but not much up to three this year. year over year we are looking at in 20192.8 not a drop awl all the three are big unknowns next year. >> thanks very much. we look forward to the coverage tomorrow 98% certain that rate hike. >> that looks like it's baked in the cake. >> surprisingly high 96% for september as well. >> another check on a stock and what you should listen for, next ♪

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after hours movers, nike shares under pressure here, despite beating the profit and revenue estimates. they could be taking profit after the 35% rally this year. head of the conference call, which starts at the top of the hour. >> so we'll get a bit of indication about the impact of the colin kaerp knicks. >> that's big. >> advertisement which will be key and big change in direction. >> also investors want to make sure the growth, 10% top line revenue continues, especially in china which they picked up enormous growth momentum lately

and the rebound in north america. this is the second quarter in a row nike has shone shown growth in the market. >> kb homes up 4% after reporting its earnings the broader market closed 0.3% the dow down more than that. >> obviously sticking around for "fast money" listen to the nike call. >> that does it for "closing bell." fast begins now. "fast money" starts right now. live from the nasdaq market site overlooking norkds's times square i'm melissa lie we have time seymour chyron finer minnesota guy adami. nike sinking after reporting earnings moments ago the company conference call kick-off now we bring you the headlines and get the take on the reaction plus another hit to the face for mark zuckerberg, the two cofounders of instagram jumbling ship starting off with the gladiator style battle of th