>> sit time for our check please marvin goes first and his coo decided to leave jc penny and follow him to lowe's >> the third quarter numbers look at this 7% for the nasdaq making the third quarter great again. >> closing bell is up next. good friday afternoon for you. >> worst pace since november 2013 sues elon musk about taking the company private. it reveals musk backed out of a settlement at the last minute. comments, why she is looking

into amazon and the big questions she wants answered let's talk about the markets it is the end of the week, month and quarter and it is set to be another strong one for all three major averages >> today the dow, s&p aside. the dow is looking at about a percent decline where as the nasdaq is looking at about a percent gains. today the dow ranges 76 points higher and 56 lower. >> lots of pressure on that communications component that's because of facebook a new security flaw that is impacting 50 million accounts, we have the details, julia >> that's right. facebook saying on tuesday the engineering team discovered an issue effecting almost 50 million accounts take a listen. >> i'm glad that we found this and that we were able to fix the

vulnerability. it is an issue that it happened in the first place >> facebook stez investigation is still in the early stages but they fixed the vulnerability saying they have yet to determine whether these accounts were misused or whether any of the information was accessed they did say no credit card information was taken. facebook explained attackers exploited that impacted what they call the view as feature. it lets people see how their profile appears to someone else. it allows them to steal the equivalent facebook saying because of the presaug presau precautions that around 90

million will have to log back in or any of the apps that use the facebook log in to save their information. >> thank you very much for that. we'll discuss this further he was head of engineering thanks for joining us. >> you're welcome. >> gauge for us how serious this breach is in your eyes >> well, i think any breach is serious. in terms of scale it is about 2% of all facebook users. it wasn't a network breach which would have been much bigger. >> what does that mean >> like they got through the front door and they have free access to everything at facebook, all of the databases that doesn't occur here it was just the swweb site they were able to get security keys for about 2% of users >> so based on the kind of hack that is can you tell what they

are doing with the information they took? >> it is interesting because the hackers could have posted information on those accounts but apparently it wasn't done. it doesn't look like it was motivated by something political. it might have been done because they were capable of doing it. should it damage the faith that we were starting to have again, the people were starting to have again that this company was in control of its data? it has made huge efforts >> one thing i don't believe facebook has ever really announced this tup of hack when people have gotten access. i think it was an entirely different situation. so it's a testament to how much security facebook has in place that this is the first time. also a testament that they announced it freely. they also published a lot of detail on it which is unusual. >> the facebook -- you do business with facebook, right

hackers were trying to get access to our data facebook has a big team that's trying to prevent it some times mistakes are made this was most likely an individual engineer. it has some how got through all of the security testing and everything it was a combination of three flaws on facebook to do it >> i want to talk more about your day-to-day expertise. how significant opportunity does facebook have to maximum from where it is versus amazon who have started doing that from scratch ecently.

>> do you get the sense amazon is feeling a big chunk of market care people have changed their behavior you start looking for products on amazon instead of google. >> concerned about the high level departures >> you know, it's very unusual to be a founder of a company acquired far billion dollars and stick around for five years. i know it's easy to look at that as a signal. five years is a long time when you that kind of change in your pocket >> even six years. >> that's what the entrepreneurs all say. >> yeah, exactly >> thank you

good to see you. >> thank you >> shares up tesla says it is suing, new details revealing musk may have backed out at the last minute. let's get straight to cnbc for the latest on the saga with the stock down 15% now >> yeah. worst day since 2013 for shareholders of tesla. the deal you referenced there really comes down to four key components there it is between musk and the sec he said i'm not doing this here are the four points, would have required him the admit or deny cull panlt. it would have barred him from being chairman musk and tesla would both pay a fine and required them to add two new independent directors.

what's next? he is not going away as ceo. yes, while this case goes to court he remains ceo it will be his position here he has the full support of a board. they say they believe in musk. there are near term challenges the most pressing challenge out there and we'll see this play out starting november 1st but at one on march 1st they have about 1.3 billion in debt that's coming due early next week is when we get third quarter deliveries most believe it could be decent numbers. it is to report a slightly positive quarter in the third quarter at the end of october, early november when they do earnings >> and based on all of the research you have read it sounds like a lot are changing their

tune the risk around this are so great. despite the fact that we talked through yesterday right after this and he said it could be the positive catalyst for change what is generally the street's take >> the general feeling is if they haven't moved to that a lot of analysts are saying i'm stepping back. there's a cap on how high this can go as long as this investigation and this charge against musk goes forward. that's why many people looked at this and they said look, if could still run the company they have maybe you're not chairman but you're calling the shots and you own 20% of the company that was a great deal many people believe musk should have accepted he will say i didn't do anything wrong here i'm standing by my convictions therefore i'm not going to agree to a settlement that i think puts me in the wrong light that's why you have that people are saying i'm pulling back >> if he is not an officer or director can he still have a

role as head of innovation and consulting role so that he is still actually attached to the company that would be worried about that departure >> sure but then it brings up the question -- let's say did you wa -- that you want to do that and they say wolf, would you like to be ceo of tesla, would you do that but let be honest, who is still calling the shots there? it is easier said than done. >> problem solved. >> but your point is well taken. you're referencing there other auto executives that might come in as number two or to write this ship. >> a lot of them have told me, they have said i think it's an interesting company. i think it would be interesting to work at tesla i'm not crazy about being under cut by elon.

>> just saying they have bigger hurdles and require clearer per specific i specificives >> you know who i would give the first exclusive interview to >> that's nice let's bring in john coffee and michael the sec om plaint layers on additional allegations about tweets he made on august 7th and the confusion it caused within the company they alleged the head of ir assumed the tweet was accurate

and telling people, yes, there's a firm offer out there there must be. when you get through the allegations it paints a very compelling picture of not just one tweet but a fraud that potentially unfolded over hours and even days. >> so you're saying the sec has a strong case against him. >> it is important to remember these are only allegations if they do have facts and witnesses behind him it looks like a strong complaint, yes >> do you feel like he has grounds to feel loik he has been treated toughly or not >> no. i feel quite differently mr. musk is gambling with the shareholders money it is probably 30% or more of the value of tesla depends on his presence of ceo. the sec is willing to let him stay there as the ceo and he is insisting on rolling the dice on whether he could beat the sec in

the southern district of new york or the sec almost never looses i think if the board of directors was doing its job here they would be pushing hard they sat on the sidelines as a bystander over the last six months they should be siltitting down d telling him it is time to settle with the sec it means he is still in control. it would allow him to have a stable future. the company needs to raise capital. they may want to sell equity it is hard to sell equity if you don't know who the ceo will be in the future. we are keeping things in suspense i can't think of anything more dangerous. >> it was sort of the point cramer made. you're coming at this from an interesting perspective. you guys drafted the sec rule on

social media tweeting when it comes to stock prices which sort of allows him to do what he does, did you ever imagine we would be here so soon? >> right it is an interesting point i think that the key difference is when we came out with that we were trying to make clear how it is possible for a ceo or company to use social media to put ou information about a company. very different question of should they put out the particular information i think it is a very strong statement by the sec that trying to announce something as complex as a take private deal or even the idea doesn't work very well in 280 characters. >> are you surprised as well about how quickly things have been moving from the sec's perspective and how long until this all comes to a head >> i was surprised ou quickly. typically it could have taken

months or years. would have expected it to take three to six months. you have essentially one sentence at issue. there are a limited number that will be relevant it is clear that the staff thought it was important to move very quickly now they are in itigation. it will be determined under standard litigation procedures you can imagine he would try to move to dismiss complaint and discovery will start i don't know if the judge has been assigned. it can take months to resolve itself >> if you could put on your law professor hat and tell us any f implications for the department of justice if they are looking at this potentially as a criminal charge. is there anything that draws you there? >> personally i don't think this case is culpable enough to merit a criminal indictment. this is a case involving

recklessness the one consistent thing about mr. musk over the years is that he is impulsive >> we'll have to wait and see. thanks for joining us. john coffee and miking >> the last of the week abdomen dwarter and i did that in the

wrong order. still ahead, our interview with european competition commissioner, find out why she is looking into amazon and the questions she is asking about it ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip.

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back bacwelcome back david is with us in chicago. i will start with you, rick, if i may to sort of summarize what's happening we are performing a lot better than yeuropean markets ended what's happening over there? >> you know, it's a bit of a mess italy promised to be within the new coalition bringing the budget although things aren't finalized. they transgressed over the 2% budget deficit set by the european commission. the problem is that france a bit larger economy to be sure has been a transgressor many times it looks like they will be around 2.8% in their fresh year.

it is an issue in and of itself. they really did penalize italian yields there was buyers there pushing yields down and boons for example before down 6 or 7 points for the week. they a taking a page out of our play book. they say we know we are going over a bit but we want to use it to generate more money in the economy so there is actually a bit of a debate and you take it from there the one big problem they have is they have a big gray part of their economy where things just don't go through the system with regard to tax collections. that's always been an issue in some of these southern economies.

>> they don't have the bench mark bond market everybody runs to in a flight for safety. is italy a concern there's a lot out there. >> there was a lot out there i would say the politics and italy issue are probably front of mind. i don't think there were too many surprises inflation is stable. i think it was relatively in live line with the market's expectations obviously this news is a bit concerning it feels like we are regressing a little bit headed back to where we were. i don't want to turn a mountain into a mole hill obviously going to be watching this ongoing italian saga going forward. >> we had a rate hike that's meant to be good for banks and financials are significantly underperformed during the course of a week. is that concerning does it mark the top of the banks in the 12 to 24 month

cycle or is it a buying opportunity? >> it could well be a buying opportunity. it has really spooked the sector evaluations are low. what we observed is that deposit rates have not moved up as much. so the net interest margins are stillpositive >> we think that's good long term thing there people taking better care of themselves

it is more that investors need to be thinking about a bit more of their totalreturns. >> do you need to be stock picking within it? >> so one week doesn't a trend make it is a very interesting new sector so the old guard telecommunications stocks are now lumped with really high growth stories like facebook, google, netflix. it is a sector worthwatching

it is really an interesting spot >> we'll leave it there. still to come, some investors think penny stocks are a potential lottery ticket find out why coming up >> you have seen it in a sector. so we are very interested to learn in deep detail >> particular gret rtalking abor on what she is looking into there next

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welcome back >> a judge saying apple did infringe one claim of one patent there were originally 88 claims. apple could appeal that decision also the judge not agreeing as to the remedy. remember, what they have asked sheer in fact should ban and the

judge not willing to go that far. we'll see what his remedy is it would not necessarily be the final say here either. the judge has this ruling. they could rule there in the following few months there is an additional case, that determination we would expect in the next few months as well obviously part of this bigger fight between the two companies. not willing to go as far as the remedy there not willing to import iphones containing modem chips. back to you. >> apple shares sort of flat up. >> time now far cnbc news update >> here is what's happening at

this hour. senators considered swing votes on that confirmation and say they support the one week delay. president trump responding to the move it is talking about some very important subjects i'm sure it will all be very good >> protesters chanting death to america during a rally to condemn last week's terror attack on an iranian military parade accusing the u.s., saudi arabia of supporting the attackers. >> back here at home new research shows more teens are using various forms of

marijuana. researchers surveyed over 3,000 tenth graders and about a third use the drug of those nearly 62% reported using it in various ways including vaping and eating edible products. you're up to date. i will send it back down to you. >> thanks very much. sue is back at hq. google is meeting with lawmakers to discuss human bias and the impact hi >> has been on officive all day here on capitol hill it started this morning with a roughly hour long meeting with top republicans in the house it was lead by kevin mccarthy. he has been very vocal in the past >> thank you for your time

i appreciate the time and i look forward to what we do better and have a productive discussion >> as recently as an hour ago we did see him here on capitol hill having meetings. he lost track of him the point of all of this is google is trying who say the search results are slanted he said he is worried about transparency in search results they say they discuss a perception of bias against conservative viewpoints. he also said he talked with google about protection of consumer data and whether google was committed to doing that. he agreed to meet again at a later date we know that he has agreed to come back to testify before the house judiciary committee some time this fall they say the invite is in the

mail back over to you guys. >> i guess it doesn't help that the president has also complained about the search results when you google trump or under the news function. it has to be a primary concern for republicans. >> right so we heard the rally cry of fake news during the campaign back in 2016 now we hear the rallying cry #stopthebias they say the fake news extends to fake social media as well >> we'll see where that goes thanks another big tech company is in the spotlight a growing number of officials in washington and overseas raising concerns about amazon. the european union began probing over anti-trust issues i asked her what her primary concern here was with the company. >> it is too early to have a concern but we like to understand how this is working amazon hosts a lot of little

guys and enables them to do e-commerce which is a great thing. at the same time they are a big guy in the same market how do they treat the data that they get from the little guy does it give them an advantage that cannot be matched or thousand understand this we have concerns from the marketplace and we have seen this also in a sector wide inquiry. we are interested to learn in deep detail how this works >> are you also looking into this question of whether amazon te itself is using to make copy cat products of their own and compete with them and cannibalize their business is that the big question >> yes that is one of the absolute big and high priority questions. one thing is to enable the little guy to do business. it is another thing if that once

you have enabld ed it and basically you take it. because you're a big guy you do large scale so you can sort of occupy that parkt plamarketplac yourself >> have you received any complaints >> not formal complaints, no we have people coming to us with concerns but no formal complaints >> have you spoken at all to jeff ever? >> no. i haven't. >> is it something that you plan to do? some say it was only a matter of time it has gotten so big that european union, you specifically, are bound to be looking into this company. >> we have already had one amazon case on e-books, on german and english spoken e-books. we saw that amazon was saying if you as one of our suppliers, do

something innovative, lower your prices you always have to give us the same benefit. it of course made it very difficult for the market to innovate you always have to give amazon whatever you have. then of course that puts it. that was solved in a settlement. it actually covers e-books in almost all segments. >> just for american viewers we think of anti-trust law and we define it as it has to harm consumers and get at consumer welfare. consumers here love amazon, easy access, convenient shopping. how is it so different that you would be going after this sort of thing versus something in the u.s. where it would be a hard case to make >> oh but these are of course very very important points, especially it is important that the price point is right

for many many people on a low budget of course low prices is of theessence. it may turn out we have no further questions to be asked but that remains to be seen. >> there is a big question about whether it has gotten too big in this country i know you have had meetings in collaboration at the department of justice do they sympathize with your view in general against some of these big technology companies or are they critical of it?

>>. >> can you give us an update on where you stand with google? you find them last $5 billion. they planning to appeal this. it carries other apps. it is important for us to see this change in the marketplace to show those who actually have the skills to do another

operates system from the open source code that they may be able to do that. it is for grade schoolioogle tde it is pretty open about the charges she filed and is not afraid to walk into what are very politically charged cases last one on google >> i think the rhetoric here was very much, the eu going after america's big tech companies in a very anti american way partly because she is so good at explaining it. it is different from competition. i think it's not the rhetoric anymore. people think some of these are a bit more justified >> you mean the rest of the world that's come around and privacy concerns >> i'm not doing this anymore.

oh gosh this is terribly unfair. i think people kind of were starting to agreea little bit more >> yeah. i think the heat is on these companies. a lot of people see her as a leader scott saw her on amtrak and posed far picture. he is a celebrity. >> i think she articulates the cases what they are pursuing very well. going downhill may be fun for visitors but certainly not for shareholders in that sck op not fun at all. we'll look at what is behind that when closing bell returns

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>> welcome back to the closing bell let's have a look at individual stocks to watch. shares at blackberry is up this morning. they saw software and billing growths. it allowed it to jump around 11% year to date that stock is just above the flat line. >> software sales not phone sales. reporting weaker than

expected earnings. the company missed on the top and bottom line saying lodging results and colorado and utah closing out the fiscalyear elon joins. >> the gop is willing to delay the vote on brett kavanaugh to the supreme court by one week to allow time for that fbi investigation. this is important because senators jeff flake and lisa have said they support that one week delay before making any

decision >> two questions, what if the fbi says we need more time and secondly, what will it be? will they only be able to bring a conclusion if they feel there's a criminal case to be brought? >> all of these will open questions. the fbi investigation, there are reports that the friend that is said to have witnessed this alleged attack by kavanaugh, that he will participate in this fbi investigation and in addition it is unclear what the scope will be. he has asked far limited investigation but we don't know if it will include some of the other allegations from other women against kavanaugh. what we do know is we have one week to wrap it up >> we'll see how long that investigation takes. thanks for the update. >> no problem.

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before the closing bell. dow is up 13 points. technology the up but financials, materials and those communications services sectors are getting hit hard that one partly on the 3% drop there facebook when we come back altering trading policy to eliminate one group of risky stocks. we have that when we come back let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action?

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a ban on penny stocks. let's get the details on this move what are they doing? >> it is a fairly new policy for bank of america that became progressively stricter as the summer wore on they banned the purchases of penny stocks sources told me and my colleague about six weeks later they said it would restricting sales of penny stocks market capitalization under $300 million will be subject to

a regular totory review. so the securities and exchange commission wrote a paper highlighting for investors to lose money by investing in these stocks penny stocks tend to be fairly liquid they have fewer disclosures and higher instances of fraud. bank of america is the first to really clamp down on this. >> are there any orationals for this they can charge higher on this they are not very liquid on companies it is not a huge part of that business >> right our sources said it is really a response to a clamp down from

regulators through actions they have taken have really kplun kated to the banks they not too enthusiastic about these kind of stocks and risks involved. they put these white papers out. they have done a bunch of actions to really clamp down so the bank is kind of responding to that as we wrote in our article it is part of this kind of increasing move i know you have recorded on this a lot away from morre risky ventures >> $300 million a few years ago, ten years ago would have been kind of the norm >> this is in, you know,

executing as opposed to anything they hold themselves bank of america does tend to want to move ahead of the curve with these types of things they have to backtrack on something. >> and they are reliable as well they don't want to open themselves up for any type of liability on that front. >> bank of america stock down today. we saw owl of tall of the banksy have been all week coming up next we'll be back with the closing count down. we are pretty much flat. and we'll break down the biggest wiers nnand losers this is the closing bell on cnbc

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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. welcome back a pretrial conference date set for february 1st pretrial date conference date set for february 1st back over to you >> okay. thanks very much we have about 90 seconds left of trade. we are essentially flat. s&p just negative as we approach dow is positive. it is essentially flat for the day. utilities up after a

disappointing week health care doing well communication services ending the first week of trade in positive turn. it is negative financial materials also let's look at the sectors for the week as a whole. the big performer of 1.6%. it is the first week in trade is up so we are also looking at the likes of materials and financials sharply lower, down more than 4% we are looking at double digit gains. big movers in that space next week we have job support.

this story continues will that be a part of the story? that's what we are watching. >> we are indeed >> it is not just the end of the week but the end of the quarter. s&p up about 7% for the quarter. half a percent for month and down about a half a percent for the week we are hearing the bell run by the movement foundation. the cool kids show premiers tonight. the dow up about 17 points s&p just positive. that does it for the first half of closing bell. back to you. welcome back closing bell. dow getting a small gain it's the second day in a row that the dow is higher s&p higher

so is the nasdaq russell 2000 up a third of 1%. the dow is the bigger winner of the quarter. 7% for the s&p s&p posting the bigger quarterly gains since the fourth quarter of 2013. as far as the monthly action the dow and s&p higher nasdaq was the laggard, down for the month. shares up tesla, plunging after they sued elon musk for misleading investors about taking the company private coming up what impact it could have on the tesla brand. joining us on the panel today we have mike santoli big winners of the dow this quarter was apple. intel was the biggest loser. twitter was the biggest loser.

so some action as far as major it strengthened some of the defensive groups >> it has been a mixed message for a while now. you to be comfortable with ambiguity. the trend remains encouraging. the market was up more than 10% this dwartquarter and 9% year to date you have these groups like banks and financials like semi conductors, lime some that ake e dr struggling you have to consider it to be a detriment to the overall picture. i will say, we are only a percent and a half up. it still kind of a mixed picture. >> and quickly before we broaden out the week itself, financials down 4%.

that's pretty worrying on the financials front given that we thought we had gotten past that to have a bit of a rally back up and we had a rate hike >> looks like that upward last week, the week before. the tone remains at the index level. the market is giving you just enough reason to keep your faith in the fact that the year looks okay mostly because the growth companies are working. >> i was going to say health care wins for the week quite a debut up 1%. best performing sector on the week it has names like facebook and twitter. >> yeah. >> he is giving the glass half full story >> it has been a benign quarter.

it has been a good quarter if you were investing in stocks i think it is where we have been for the last few weeks if you're a believer in the next leg higher it is hard to see where it comes from. if it's not coming from the financials, you know, energy is still such a small portion i think it's 5 or 6% or something like that. even though the price of oil has been very very strong it's not going to take the overall index higher, just strength in the energy sector. so you really need the financials and it's not clear that it's going to come as the yield curve gets super flat, you know, the action to the fed was relatively benign in the markets. the reaction was in the financials which did poorly this week >> u.s. investors moving to domestic stocks. investors took out $2.2 billion from nondomestic equity funds.

those flows, i mean it's clear that the u.s. has outperformed the rest of the world. but are those flows enough to support reaching those >> no. i view them mostly as really kind of a check on the mood of the market and really a lagging. you argue that's a late shift. you the rest of the world that it seems like it's out of those other markets as opposed to anything driving the activity here you go overseas where it is cheaper. the risk profile may be a little graer greater. >> it would be nice. the danger you have if you buy overseas is that if the u.s. market gets hit it is very rare at least in the last ten years that the u.s. market corrects and you see strength overseas.

it has not happened in so long that -- unless you're bullish on the u.s. market it is hard to believe you should be super bullish for the u.s. market. what's going on in italy is more of the same. they are busy. the italians are putting themselves into -- it's almost -- they have almost become -- >> a -- >> no. no it means it doesn't matter anymore. italy has been in a crisis for the last 15 years. it's like they don't even pay attention anymore. >> european markets certainly paid attention >> didn't see a move in bond markets. but in terms of 3.7% decline, that itself has not been contagious to u.s. equity markets but is it another risk that people have to keep kind of honest >> i think so. it is the kind that it will be

transmitted through the credit markets if it happens at all we are not at these sort of red alert levels if you look at the spreads but the european banks have been in rough shape >> and they were down today as well >> so. >> yeah. >> the one thing we have not talked about i don't want to say it's going to happen but the one thing that came out of the fed meeting this week and it's been really consistent we saw longer term rates rose quite a bit up until a week or so ago there has been -- there's still -- if you look at the bond markets no concern over inflation whatsoever just if you look at potential risks, if you believe there will be some consequences, if you believe that higher oil prices will feed into higher prices then that i would say would be one of the risks maybe not in the next month but down the road >> i wonder if something has changed in this market or the

economy maybe it's president trump, maybe it's this sort of boom we are experiencing if you would have had italy coming out with a budget deficit the most indebted country and one of the most largest with a big move up you would think it would in fact be the u.s. market it feels like we are more in a u.s. market to all of these pressures around the world whether it is trade or a low down in china which would have all effected us. >> at some threshold, yes. it would effect us i don't think we are at that flesh hold yet whether it's in terms of what's happening to the currency markets because of it i don't think you see the indicators even globally getting to a point >> yeah. >> it's because -- >> no. >> here is the reason. italy has been a basket case for -- since really 2003 or

2004 they have not had it in so long. it's not like they are waiting for something bad to happen. >>no >> it raise s the stakes >> and it's a reminder of the economic data. they continue to point to a better economy helping us versus them let's talk facebook. shares finishing lower, about 2.5% after a company reviewed a new security breach that let hackers gain access to nearly 50 million user accounts. maybe the market is more sensitive to headlines around

facebook and security breaches with all of the trust issues >> it seems like it is kind of unrelenting. it is a company that is just playing defense and seems like it is having a hard time maybe getting its arms around all of these thinls i don't think this one is decisive, just a general tone. not only do they have to do damage control and try to figure out protocols for proventieventg them they don't want to be seen as se essentially profiting through these. this is why i think it will be stuck. >> would you buy it now? >> no. i wouldn't largely because with a stock that historically has been built all on growth and on this view that this was a platform that would last into the future you basically have some of these credibility issues

that are around the future of the platform if you talk to younger people, my kids or even, you know, people who i flew used facebook i never had a facebook account personally myself. there is a negative halo effect around facebook and i can't put value on that. it is very hard to model what a future might look like where people stopped using it the way they did in the past >> and they say it is explosive especially among that. >> it is harder for them to monotize i believe the instagram platform than it is. >> they resisted doing as much >> facebook is down 15% for the quarter. only one doing worse is twitter. >> it must be 500 billion. i don't know what the numbers. >> 400 some odd billion. >> it has ban long term winter >> it is not -- it's not a small

company by any means >> so intel leading the dow today after he said the company can make enough to meet the full year revenue outlook it is up 3%. other chip stocks got pressured on thenews so there's questions about the depth of demand going into next year it was kind of a perception of shortage there was double orgdering i think people are sensitive to the idea that it might be at a

mini-peak. >> the issue is all super in the stock market and that is what they got used to now you have people, no, it's four or five times earnings. yeah it's always like that until it's not trading at four or five times. it's hard to take the time >> finishing up a few percent up up next, we will continue the market discussion and focus in on tesla in turmoil after sued for makes false and misleading statements. find out if this could be perm nntly damaging to -- permanently damaging to the brand. google meets on privacy concerns we always want to hear from you. reach out to the show on twitter, facebook or sd enus an

e-mail the closing bell back after a quick break. do you hear that?

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cnbc is at a tesla store to find out how people are reacting. >> it's the question on the minds of owners and analysts after it was announced the sec is suing the electric car founder for fraud. potentially they could impose hefty fines on musk or bar him from serving as an executive today we went over to the tesla store and we spoke to potential customers about the controversial ceo and whether or not tesla looses some of its appeal if musk is forced to step away from the company.

>> i want to know what the future of the company is. >> >> he says he is confident that tesla is going in the right direction. >> thank you in new york looking at the brand equity problem that tes la could face rebecca from kelly blue book welcome to youboth

>> in terms of some of the threats to the company a lot of people raise the question of bl it's harder to raise capital or your ceo is facing an investigation. how serious of a concern is that soond, you know, think it's one

of those things i would have loved to soo seen him take the settlement because it would have been done. we would have had some certainty interms of so it's a big problem right now. >> there has often been uncertainty about the ability to produce enough vehicles. one thing most haven't is do we have to start doubting that right now? what's your sense. >> i think it's definitely a concern. it is a big part of that appeal.

investing in it means are you going to be able to get service for that what is the residual value on that so et opens up uncertainty from a buyers standpoint and also from an employee standpoint. do you want to go to work for a company that is under these kindsover investigations musk is a big for employees. so all of these things come into play >> we get production numbers next week. you recently visited one of the factories. >> yes even if numbers come out does it matter >> probably not.

so the production issues that sha have had are clearly behind them connected to the fremont factory is the delivery center it was packed with people who were -- i mean literally dressed like they were going to a wedding. this company has done an incredible job with their product creating so much excitement it is really kind of a shame all of that is getting over shadowed i do think the results on tuesday will be pretty positive. >> what specifically, if you were to say this is what musk does for the company, i understand the strategy. i understand he is the face of the company but in terms of the specific engineering, the specific models, does he have

people around him who are good enough now to basically carry, you know, steapple didn't reall miss a beat. what is it specifically what he does that makes it more problematic if he leaves >> he is in charge of the product groups he is in charge of strategy, in charge of design they probably have enough to go from 20 billion in revenues to 10 billion in revenues people who own this company for long term need to see a business that's going to compete with uber and lyft. they need to figure out where the next manufacturing facilities are >> nobody around him can step into the design and engineering function or the marketing function that can carry whatever load that he is carrying right now, is he really that integral to all of these processes? >> i think he is integral.

they aren't qualified people that that can run day-to-day operations if et will go from 20 billion to 100 million in revenue there's a lot that has to be figured out i think he's the best person to do that. >> that is the question right now. thank you. we'll leave it there >> thank you up next, congress taking a big step towards passing tax reform find out what it includes and what will become law straight ahead. why at&t is getting out of the boxes business after 45 years and why sah rais upset about that we are back in a couple of minutes. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service

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the current laws are schedule today expire in 2025. it easily cleared the house with mostly republican support. tally was 220 to 191 three democrats did cross the

a. >> do call it a new clang would be an under statement. >> but even he acknowledges the tax law is in and out holding well and democrats do seem to be winning the messaging battle here the costs of the original tax law was 1.5 trillion the price tag on tax 2.0 is $630 billion over ten years the senate is not expected to take this up any time soon. >> thank you very much for that. up next, we will discuss whether google ceo's visit to

capitol hill today could actually lead to new regulations from congress. plus we'll look at how companies are developing the next generation of allergy treatments, targeting everything from pets to peanuts when we come back. only half the story? at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets.

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dow has a small gain about 18 points at the close s&p closing just slightly lower. the nasdaq pretty much flat as well russell 2000 was the big winner. up about a third of a percent. it was a loser as far as the monthly action russell and nasdaq down. sixth month in a row for gains for the s&p. >> time for update with sue. >> hi. here is what's happening at this hour gop agreeing to a one week delay for the kavanaugh confirmation to conduct an fbi probe after swing voters votes senators said they supported senator jeff flake's call for that investigation. the judiciary committee saying it will ask president trump for the investigation to be

completed by october 5th the judge ruling it could impact the use of race based college admissions pope francis defrocked a priest in the sex abuse scandal. the vatican says the pope ordered 88-year-old to live a lifetime of prayer for having sexually abused minors in the parish that he ran on a lighter note, the 2019 putin calendar has hit the newsstands it's now on sale it features the russian leader in a variety of poses including him with a leopard and puppy and of course shirtless. >> is this the official kremlin calendar >> apparently so i think it is the official kremlin calendar yes. >> wow >> like state sponsored? >> yes there is the puppy

there was the leopard. there is the shirtless >> you're putting money in the hands of the government. >> win-win for russians. >> i think most russians feel compelled, if you get my drift, to buy it. >> not just because of the wonderful quality of the photographs as well. >> exactly >> thanks very much. >> you got it. google ceo meeting with republican congressman behind closed doors earlier today to discuss privacy and allegations of political bias. >> the meeting comes after he skipped a meeting between other tech companies and congress last month. joining us is michael wolf thanks for joining us. >> i want to touch they didn't send someone to the public hearing. what do you think is behind that do you think it's a sensible

stretch? >> i think a lot of it is not being lumped in and being able to answer the questions in a more private setting >> and in terms of what the gop lawmakers are pushing out, whether there is a conservative bias on google, is that a fair accusation for them to be making or are they try to go search for ways >> i think president trump's allegations about try to go skew the search re results, it's not the way google works it is more on whether they will be able to keep it it follows some of the regulations that already happened the european regulations and people ask me, are they going to be here? they are already here. california enacted regulations which go into place in november. >> it feels like in the u.s. at

least -- and this is not europe. we spoke to margaret who is going after all of these companies. but in the u.s. it feels like all of the regulators are on different pages. i mean most of the republicans are upset with google because they think they are sensors conservative voices and sources which is different than protecting their privacy >> everyone has a different ax to grind democrats are upset because they know about the amount of voter suppression that took place as well as a bunch of bad actors. so of course these are two of the most important companies in our economy and they really rule the web not surprised they will be polarizing. >> for that reason i almost wonder if there's anything that the management teams can do to seem transparent enough to seem as if they are giving a good faith effort and still not have one side or both say you're more convenient to us as a villain

than it is to get to the bottom of this. >> they have already made attempts google said they are no longer scraping peoples e-mails the most important thing they can do is give access to their date data so they give some way in which people can take down their data >> in terms of whether regulation comes or not do you think this sector is most in the spotlight because it attracts criticism from both the democrats and the republicans and i guess getting through the midterms could only make that worse. >> i think they are in the spotlight mainly because google and facebook are the internet. the internet people use every day you use your android phone you're using facebook, instagram. it's not surprising that they are going to be under a lot of scrutiny and also they are very controversial the role they play in peoples lives, whether it's

privacy or advertising they are important in terms of our economy. >> my wife is an executive at google i want to talk about the interview you had earlier an hour ago with the commissioner in europe. do you think that europe will ever get over the fact that whether it's facebook or google or amazon that they giants who have been so successful have been u.s. corporations and that they will continue to kind of come after them because they are kind of easy targets given that none of them are champions in europe >> it is very hard for anybody to create a competitor. you very few places around the world. mainly china and russia where there are other search engines and networks i don't believe forever they will remain the most important companies. i think we are likely to have another strong competitor and

the way instagram was a competitor both of these companies have permeated through peoples lives and each of those plays such an important role so of course europeans don't like the fact that they are person companies there is not much they can do except for some regulation >> thanks for joining us >> thank you we have a news alert on trade. we have details. >> mexico's incoming president now insisting that canada remain a part of nafta. reporting they spoke over the phone and there is still time far deal this comes as the u.s. and mexico are set to release a text of their two way deal tonight. they are releasing that because they have been unable to reach a compromise but they say once he takes office canada should be

eventually forced to come on board. back over to you >> thank you for the update. i guess the cig any further kans is it goes against president trump's strategy to go straight bilateral to put the pressure on can canada to have to join it means they will not cut canada out >> of course congress was some what resistant to that idea. also there was the kind of maybe artificial timetable of the mexican leadership shift that would be easy to get ratified. >> to me it illustrates this notion going back a few months that trade wars are easy to win. if you can't even get canada, who is one of your biggest trading partners on what should be a relatively straightforward afwreemt, if you can't even reach with them what are the prospects for renegotiating something bigger with china?

>> you mentioned that. how optimistic do you think it was not just in terms between them but the tone that they expect as is possible between the u.s. and canada to make a deal >> we don't have a lot more details about that right now what i do want to point out is that it is also reporting that he said he will not reopen the negotiations between the u.s. and mexico this is really about trying to give assurances that it won't be left out in the cold at the end of the day >> i would just say that as far as the market is concerned, mike, none of this matters i mean this is a lot of politics it could impact our diplomatic relationships with our best frenltds like canada but ultimately this is not a market that is showing any worry about the break-up of nafta is it >> it is not in a very specifi way. you could see it but look, if u.s. auto stocks were awful. there is definitely risk in

those names. >> the fact that the president has threatened >> the rails exposed are badly under performing so in isolated pockets, yes. people say the math doesn't get to that level yet. >> if we sum up the week as a whole the tone towards canada when he gave various comments but particularly that wednesday night i think it was extended press conference it doesn't give much hope or optimism at the moment >> i think important thing is how does he feel about this? he said his goal is not to escalate any tensions. he is letting president trump set that tone some times positive, some times not he doesn't want to make matters any worse. >> thank you >> on a number of stories for us this afternoon from capitol llthhi, e battle against allergies is getting more advanced the latest in modern medicine

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these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here. mr. williams was speaking in new york sheer what he had to say he said the gdp will increase by 2.5% in 2019 he expects unemployment to fall below 3.5 ppgt he expects inflation to edge up

above 2% but he does not see greater inflationary on the horizon. it would be the sweet spot the recovery has been uneven not everyone has shared equally in the otherwise strong economy. the federal reserve will slim down minutes and statements. he says that even though they are going to do that it does not cig a -- signify a monetary and guidance about the future path of policy will no longer be appropriate. it may be the key thingment they are not going to give us as much detail on what is expected in the future back to you. >> all right thank you. they start coming out and explains whether they were ton forecast table global merger activity has shattered previous record highs of more than a decade ago. three months still remains in the year

deals worth $3.3 million have been agreed to that's a 29% jump even though they are at a record bank fees are actually going down. >> hard to read it except some times on a very big deal the fee is not going to be as large on a percentage basis. i don't know if that's why you slippage that's a big number. relative to the size of the global stock market it's below the peakover let's say 2007 and 2000 >> when we talk about the big banks cheeri banks clearly they benefitted. the question is whether the best is behind them and whether it is priced into some of those. >> first of all everybody -- i was a banker we used to puff up these numbers all of the time. they are -- this has been a

great business it is still a very very good business it just means less th so while the numbers are good and fees bha down on relative basis it is still a very good and healthy business it is in the for all of the woes at the global investment banks fixed income is more than it used to be in the past >> slack is looking at an ipo in early 2019 with a $7 billion evaluation this area of the market has been solid again. >> yeah. >> messaging apps, anything that's one of these sort of cloud based business to bis seems like it is in a sweet spot it seems like it is shaping up to be kind of the consensus winners will probably become public we'll see if the market can observe that >> it has been a stiaple

it will end next month hbo sited boxing and said offering such content is no longer unique. hbo will present from madison square garden which will be headlined by the championship fight. >> i want to know where it's going and why they are doing that >> showtime is still in boxing. >> people are platform agnostic. it is saying we don't have an edge in doing boxing >> they also know. i think it's part of the announcement they know boxing is no longer a desi

decisive factor. >> i have other platforms. zb >> i like to box myself. edo ean ision medicine has bee us ttrt cancer it may help combat allergies we have that story coming un >> announcer: the take away brought to you by columbia thread needle investments, your success, our priority.

precision medicine, which is already taken on cancer and genetic diseases with success now soon has various allergies on the run

meg terrell joins with us the latest. >> we all know that allergies are on the rise, up 70 percents among u.s. kids in the last two decades. drug companies are creating new treatments to block allergan to peanut. >> will's allergy is so severe he has had to use the ech pen four times. >> it's like then you get scared then it contributes everything snowballs. >> but through clinical trial of new approach to peanut allergy he has built up a tolerance to protect him from accidental exposure the fremont is biotech company aimmune one of the knew approaches that drug companies request are working on. >> if we treat the ten children we could get aft children through the treatment process and essentially protected from accidental exposure to peanuts out there in the real world. >> french biotech dvb technologies is working on a similar program uetzing a patch

to administer a does of a peanut retraining the immune system to tolerate peanuts this boy tech research company is taking it further this medicine targets signaling molecules that are overactive in allergic diseases like asthma and atopic determine tight zblies the more specifically you identify what's wrong with the system and overactive can you target that. >> it's testing the drug and other allergic disorders as well in combination with aimmune's therapy. rejenner on is exploring other drugs to target the cause of each specific allergy. >> we have a program for cat allergy where we know the major driver from the cat allergan inducing symptoms. >> for this scientist, the work is deeply personal her three sons all have severe allergies. >> it definitely puts a spark in everything that you do because you know i see -- i see how much this affects my children

>> and guys given how many people have allergies analysts see this as big business for the companies. brian scorny at baird estimates it could draw more than $1.0 billion in peak annual sales. a big need and market. wilf back to you. >> a look at key numbers to watch next woke. we'll be back in a couple of minutes.

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we have a news alert on supreme court nominee brett kavanaugh eamon javers with the details. >> the president officially ordered the fbi to begin the background check that has been discussed in senate in terms of a deal on brett kavanaugh. the statement from the president, i have ordered the fbi to conduct a supplemental investigation to update judge kavanaugh's file as senate requested in update must be limited in scope and completed in less than one week. so sarah, this represents the president's acquiescence to the deal carved out with senator jeff flake, the retiring republican senator who has been a real critic of president trump who wanted the fbi to have the opportunity up to one week to investigate the allegations of

sexual assault against brett kavanaugh, the supreme court nominee. now it looks like flake will get his wish the fbi will investigate and we will all be waiting for a week for the results of the investigation, sarah, back to you. >> eamon, what are the likely things they are able to conclude here if it's not to bring a criminal case is it? do they definitively give advice if it's inconclusive do they say that. >> they gather facts and report the facts to the senate at some point. you'll be interviews with the witnesses people allegedly in the room or attended the party where the sexual assault allegedly happened those people might be able to provide more forensic level of detail to the fbi than they've been able to put out in their public statements so far and they're looking for the fbi, other details that might corroborate whether or not this happened whether other people can say there was in fact a party on a particular date, who might have been there, who might have seen

something. all of that is what the fbi will be looking into. >> it's more of an expanded background check than any ruling or anything like that eamon thank you. >> you bet. >> eamon javers with the latest twist in what was a dramatic week. >> yes. >> surrounding the supreme court nomination. >> dramatic to say the least thank you for joining us on friday that does it for "closing bell." "fast money" begins now. "fast money" starts right now. live from the nasdaq market site over looking new york city's times square i'm melissa lee. tim seymour carter worth guy adami tonight on fast pb tesla tanks having the worst day in five years after the ceo gets sued by the s.e.c. for you had fraud. but musk is fighting back. will it be a win for shareholders despite the odds a retail value holding strong the third quarter but the kmart master says the party could be so far sooner than you think but first the big story, facebook under attack again. the social media giant saying 50 million users were a