also other nice ones if you know come one that might like the new putin calendar, so much i could say but won't putin on the ritz. >> bodgod, i miss you. >> closing bell right now. it's time for the closing bell financials largely sitting out the rally. analyst joins us for which bank you should be buying tesla out with third quarter production numbers the question now, can the auto maker turn a profit? we'll break down the numbers ahead. i'm leslie killing potential deals, why some hedge funds are generating big returns with this new

strategy i'll explain the tactic coming up we'll talk to the founder of spanx exclusively. the closing bell starts right now. ♪ the dow up half a percent. >> dow setting a high for the first time since september 21st. let's begin with news on amazon. tech giant raising minimum wage. we have the details. >> so a raise coming just in time for theholidays

amazon's median annual wage last year was28,446 a very vocal critic. the senior vice president david clark echoed that today to cnbc. >> we standby and listen to our

critics. we are encouraging the government to take on the federal minimum wage and increase it. we would love to see other large employers join us at this level. target is at 12 right now with a path to $15 an hour by the year 2020 >> thanks very much for that we are going to discuss it further joining us to discuss how this announcement could impact the stock going forward stock is down but not too significantly. it is a win for the workers. politically it seems with reaction it is a win there as well >> right i think there are two parts to it obviously there was a political

pressure amazon the hiring they sort of needed to do this to continue to hire at the pace they have been. first and foremost they will not end up spending more in wages. they will end up hiring less people i think liz is right that they have kind of a hurdle they need to get over but through time

they going towards an automation process that will be hiring less people >> on the wage front has this not proven they have moved ahead of the curve and now will put the pressure on some fellow retailers and fell he big corporations and take the spotlight off of amazon for a while? >> yeah. it depends if you mean the politics of it or in terms of

substantive wage i think you have certain competitors people talk about this a lot with walmart that may have a lower per hour wage but have a higher benefits cost or have higher compensation to mid-level employees. you have to look at whole picture not just politically but economically as well go wloz margins get squeezed off of this list >> i think amazon will get squeezed in the near term. they a consumer facing company and this wage upper wage pressure is good for their consumer i think you can't ignore that. i think you also need to understand that part of the problem was that their employees are collecting public benefits because they are under paid. you need to talk about the entire compensation of the employee but i think that senator sanders point was that

the government is providing entitlements to amazon's workers because amazon is under paying them and amazon is one of the most successful companies in the world. >> this is another way of doing it by attracting the best workers or put them to shame >> amazon has made it very difficult and part of the way they are done that is raised the expectations about fulfillment costs and speed. it is one other way they are raising expectations on retailers. >> it hiked wages as well.

in the u.k. the wage went up it is about 20%. >> and a little higher in london >> it is only 21% above what the national living wage is. here it is more than double. >> way higher. >> it shows the difference in term of competition. >> sit a whole other debate. let's talk about this market, record highs we have jenny. we have steve and rick saneteli. >> last week we saw the end of the month, end of quarter. i think it is lack of participation and pushing into large cap names to move this market forward you might have a little bit of changing seat as to who is getting the benefit but it's definitely coming at the expense

going into year end. >> i want today ask you about italy and the move we saw. it is a four year high on th ten year in italy and spreads gapping up significantly too the encouraging thing is far less than we have seen in others >> absolutely. i do think it's important with the third largest economy does with regard to its deficit the notion that it's priming the pump u.s. style trying to build up growth in the pipeline i understand that. the big issue in europe, this is happening at a time where as of yesterday, october 1st they are buying half of their quantitative totals. was it 30 billion? now as of october 1st it is 15 billion. you could almost say we are at that inflection point when you throw a baseball up in the air before it starts to come down it

hangs up there at that one top that's a lot like all of the stimulus in the global banking system if you look at their holdings pretty much we are ready to start turn tg ship the other way. that is very significant what it really underscores is that the ecb spent a lot of treasure trying to keep the rates low in the southern economies. it leaves unravels rather quickly. >> as far as the u.s. market industrials are actually one of the sectors that are higher today. is that more relief from the u.s. mexico canada trade deal? would you be a buyer >> i think so. we do own some large

industrials. i think it's significant we made a deal with korea. i think all of this clarity builds up and adds to that >> i think that's why it has under performed as of late the reason for the out performance is they didn't have the headwinds of trade policy or of a dollar issue. even with a dollar not making new highs and trade sort of dispating or getting off of the front page even though china is not nearly done that's the reason it is out performing. >> you know, the fact that we have seen italy and rates have gone up in europe, is that -- >> i think the value gives the

opportunity. listening to him talk about bond notes today something we are thinking about is the fact that it is very much in sight there is increase in clarity on where it will end up there is a nearly perfect correlation. it is for the past three rate hike cycles. so if we have four to five more many we'll end up with a rate of three, 3.5%. i think it goes well for the lower evaluation stock >> i wanted to ask you, record highs in the market. what does it tell you? >> yeah. i think that when you look at what the areas is suffering it's

the one that have been up to capitol hill or wanted or summoned on capitol hill but when you look at where the value is money is flowing into there i think they are taking a step back now you'll get back into the value play make no mistake about it when you the year to date performance from a lot of momentum names the average hedge fund is up 3%. there will be a chase for performance. >> does the data give investors something to give, we'll dive into that next and later shares of pepsi falling today. quite a beat on the top and bottom lines what's driving the stock lower that's straight ahead.

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. walgreens is up. >> to boeing is adding the most points it's 27 point to that rally. >> yes tesla is out with new production numbers.

sk here are the numbers that the company released earlier today. what you want to focus on are the model 3 numbers. 57,239 it was the production of the model 3 in the thirdquarter. more than 55 delivered in the third quarter. tesla shares moving around both positive and negative. not a huge move in terms of what we have seen recently from tesla shares as they report. as for the rest of the auto industry we did get september and sales numbers.

fiat chrysler, keep these in mind it because skewed number because a huge surge of replacement vehicles bought following hurricane harvey and mass iflooding in the texas and louisiana area most of the numbers look down compare today a year ago sales dropping 11.1% a couple of quick stocks you can see stocks dropping 11.1%. ford versus fiat chrysler. it outsold ford in the third quarter. these are tough times at ford. yes. they have the f series on pace for record sales and they will say we cut back on fleet sales it did outsell ford in the third quarter. back to you. >> yeah. the real stand out there for the month of september i want to take you back to

september. you're saying rectifying delivery issues is easier than production issues. so it should be something they can close the gap on fairly quickly? >> i don't know. i think they are struggling in terms of rectifying the deliveries once they are build and delivered it would be rather easy to handle it continues to grow each quarter. they will say we are building more we'll have more vehicles in transit. they do need to rectify that though >> i was struck by the numbers onchina.

>> sit a 40% tariff. it is not just tesla it is bmw, mercedes benz, the tariff is 40%. still ahead, space founder turned 5 grand into a billion dollars fortune with her body shaping attire she'll join us to talk about the state of the consumer and whether an ipo for company is in the cards. >> plus manhattan's real estate market is taking a major hit, where prices could be headed

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26743 is the level pepsi co reporting final earnings sarah, you have been following

this for us throughout the day >> the results looked strong 4 4.9 is a marked turn around for the company in terms of the underlying business. there was a switch they have been under pressure lately frito lay continuing to grow strongly and double digits the stock is lower and the company warned on profit guidance mainly because of the u.s. dollar. we asked about this. listen >> when we had the type of inflation you're seeing in places like turkey and russia we have to increase prices. we have done so. our products are relatively low cost compared to lots of other

options. >> ramon has been there over 20 years. investors want to know if there will be any kind of strategy shift. it is not a hot time for the entire group consumer staples have lagged the market interest rates have been rising. pepsi has underperformed coca-cola. coke has shown more of of a willingness to go into more

interesting places which coke confirmed it is looking into development of it doesn't feel like they are going there. they didn't give as much of a hint investors didn't seem particularly enthused about that stock is down 2% we'll see if we can get bigger changes on something that coca-cola is trying to do or getting into different renovations. >> it is down this year. struggling a little bit on that sense. shares of stitch fix getting slammed on the back of earnings. we'll hear about expansion plans and whether new markets will help kick start growth and up next a new bill making its way through congress could place greater oversite top analysts explains why he thinks it's a bad idea for shareholders right after the break.

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that are winning today utilities, consumer staples and also industrial energies as well what's lagging is consumer discretionary and financials as well >> here is what's happening at this hour. >> he did not show any to always being 100% honest and truthful which is what we need in a supreme court justice. so again, even if you feel that what happened when he was 15 and 18 shouldn't matter what happens when he is 53 does matter. >> hundreds of fast food workers across michigan converging on a mcdonald's in detroit calling

for a $15 an hour living wij and the right to union size. police made several arrests during that demonstration. several employees were fired for dumping water on a homeless man sleeping inside the restaurant after the incident one yelled at him to leave they were fire affidavit the video - fired after it surfaced online >> all right thank you. cnbc has been following the story and joins us with the latest >> they are seeking to fight this legislation their pitch straight to the american public that if there's a clamp down it could be harmful to individual investors as well.

they launched a web side today aimed at fighting back against that bill. if passed this bill would require firms to register and allow companies to fact check their research before it is distribute today investors they said it could increase investors costs. >> it is a major concern for this bill. it imposes substantial new costs in how they must do their job. i think it is intended and a good chance they will take one or more out of business. it's not good for investors

they need to be reigned in and controlled >> regardless of what people say about this bill whether they think it will help or hinder the investigation would it not be fair to say they haven't really achieved their goals in the past either, that they could make recommendations but they get very little support is fairly often. >> it is the case as you're seeing more and more beef up their corporate governance they have been able to take the reigns in terms of studying the individual proxy fights. it has to do with reaction to all of the campaigns we are seeing that makes it more critical to know how they are voting it matters when it comes to things like the makeup of the

board or things like that. >> thank you we'll see you next hour as well on another story mike joins us. great to have you with us. what's your view on this first of all were they doing enough of a job to begin with and does it help or hinder them? >> wells fargo security and i kored the banks for three decades. all i say is if you limit the ability to have tof the proxy a firm would it have made it better over the past20 years

if anything the proxy advisory firms were not tough enough. in 2012 they voted against the ceo pay it citi group and i was aligned with them then but they refuse today go along with other proposals. they need to have more do not reduce the authority of, you know, the proxy advisory firms. i love shareholders. as a corollary i love anybody who helpedshareholders so anybody that helps narrow that gap, people like myself, i think they are doing a service and ken from the constitutional investors understand who the person is and who he represents. he represents $3 trillion.

that's ohio state teachers and texas teachers this is -- i don't think this is getting a play that it should. it is incredibly powerful. if they are against us then pay attention. >> i get your point and i get that you're backing the motive i this i the concern is these two companies have become so powerful in swaying shareholder action >> we have the theory and we have the reality i have disagreed many times but it's still better than nothing if you will limit their authority who fills the void in who fills the job that they are doing? i'll take something over nothing even if it's far from perfect. >> too many ceos too powerful.

jamie said today and he called the annual shareholder meetings and said they are frivolous and hijacked by social groups. >> i agreed many times on this case on this point i disagree with jamie. he is head of the business round table. they have in favor of hr 4015. if the an jewel meetings are not functional then make it better warren buffet has a good annual meeting. why didn't we have it where they present to the shareholders. i go to annual meetings. i have been going to the last five years i'm very happy that my current firm allows me to do so. it's the only time you can ask a question and hold them publicly accountable. i look over my shoulder when i'm

asking these questions some times there's no one standing behind me >> it is stronger than ever. >> citi group case in point here you it and it has a stake and they have been instrumental over the years. we think it can double without any activists. it can certainly make a difference having shareholders can make a difference in a stock that's declined by 70% over the last two decades. >> are you going to hold up your sign >> i love share shoulders so i love anyone who likes

shareholders and helps them out. here is my sign. >> i like shareholders too so that means you like me >> great to have you with us we have about 20 minutes to go before the closing bell take a look at the major averages we are in rally mode and on record high watch. we'll pull it up for you dow up about 100 points. s&p is watching the dow. real estate falling. we'll leek into what's putting pressure on sales coming up. sales of stitch fix falling, why the company is expanding into the u.k. and the stock down sharply. we are back in a couple of minutes.

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rjs back back. production could be pulled from the 2019 time line it is on the 3.8%. it did get to $57.60 in early june and then it fell back to below 45 or so recently, so hence is recent jump off stitch fix after mixed earnings yesterday they reported an earnings beat missed on revenue even though it's growing 25% and says fewer than expected active quarterly customers posted this a little light. speaking about the company's plans to expand into the u.k >> i think with the u.k. it is

so important in the business of personalization to understand each client and understand what each client is looking for so that's lot of investment and localization of localizing stylists of bringing merchants and who are buying for brands that our clients in the u.k. will expect. all of that localization requires a little bit more work. we think it sets us up for greater success. >> on one hand while investors may be bullish they also think about on profits saying the plans are going to be costly from ahead count and infrastructure that could be weighing on the stock

a lot are still making a loss. it is a profit and still up significantly. >> also on this one. so some of these are a little bigger >> we have 15 minutes left until the close. the dow at 26782 is just about in positive territory. s&p is flat on the day and not in record all time close territory. amazon hiking minimum wage should the federal government now follow suit? we'll follow that coming up. first, prices of luxury apartments are falling robert has the story, robert >> reporter: if you like te terraces how about this? we'll take you inside this three nhtay penthouse in downtown

maatn which just got an $8 million price cut coming up after the break. let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪

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closing watch up 140 points. there are losers we would like to point out nike and pretty much everybody else is up >> manhattan real estate falling for the fourth straight quarter. robert frank is following the story from a $17 million penthouse. there prices are falling a million dollars or less. we are seeing a lot of inventory piling up. this is a buyers market in manhattan. this tells the stories it is listed in 2016 for

$25 million. check out this terrace incredible views over there. it is from your own jacuzzi. this came back under 20 million. it is 17 million and only after that price cut only now are they starting to get a lot of offers, a lot of interest. so you're seeing this across the board. discounts of 20 to 30% off of the original ask only then are you starting to see deals. back to you

they coming on the market and you not as many foreigners buying in manhattan. all of these exterior forces come in at a time you think it would be going up because markets are so strong. all of the rules don't apply the question now is how much further down would we go and for how long that's the question if you're a seller or a buyer. clearly it is sort of 1 million, 2,000,003 million, olding it better >> a year ago they were.

we don't have any of those right now. no one knew why. it corrected and in some cases was down40%. >> i have to say, if manhattan is not doing well london is doing worse. you're not getting much transaction there either >> head to cnbc.com. we have a write-up of all of the numbers and trends we need to know about we have about five and a half minutes left in trade.

we have an interview with the founder of spanx we'll have more coming up on the closing bell kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

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close for the dow. as you can see today have a look at the dow very much down and s&p roughly flat another bad day for the russell which is is down a full 1% sectors for you today very quickly consumer discretionary utilities up and consumers staples doing wegood as well >> japan is on fire. >> we had a nice program early on boeing new high.

caterpillar, united technologies were all strong. those are strtrade elated names look at these numbers here all down4, 5, 6, 7% overall. >> the u.s. banks pull back a

little bit >> they may be raising rates on the short end. the yield is slightly climbing up >> there we go thanks very much the dow record all time low since the 21st of september. 26780 the level there. nasdaq down a bit. russell down 4%. that does it for the first hour of the closing bell. back to you. >> and welcome to the closing bell join us in just a moment here is how we are finishing up the day on wall street a new record close for the dow jones industrial average it closed up more than 100 points it did hit a record high on the close. first time we have seen that since september 21st

some of the games were lost and it closed just around the flat line nasdaq has lagged. the nasdaq set a record high yesterday. there is your record high update the russell 2000 continues to suffer down 1% we'll talk about that in a moment shares of amazon did finish the day lower after the company announced it is hiking minimum wage to 15 bucks an hour record

high for the dow between the dow and slightly the s&p but slightly the nasdaq as well. >> yes very mixed i think it's a little bit of a kind of a hidden pull back that the s&p is within a quarter of a percent. how much of that pull back is related to the trade headlines particularly when you consider the small which have pulled back

have they rallied when they are now easing because of improving trade news. >> i think everybody thinks china deal is a conclusion i don'tthink so. i think that are far more resolved than that you to ask yourself, is the market starting to feel a little bit heavy to the upside? >> despite the dow hitting a record high, on that note as we

have just been discussing, is that for the rest of the economy? >> it can be a warning or it can just be kind of the way the market is metabolizing things right here if you look at the relationship it has been an unusually widespread right now in performance. you seen we have marked on the chart here this is from the dow jones indexes. two earlier periods. you saw some kind of a similar spread in performance between the blue line and s & p 500. the first one was near the 2000 all time peak at that moment it was a bad moment to own any kind of stocks big or small. the other one though happened in 2006 if you want today caed to call warning sign it was one year and 20% too early. the market kept going up after that more episodes where the s&p has done fine.

i don't think there's any magic to it. i would point out that the russell 2000 is heavily weighted than the s&p is. >> there's also this trade story out here we had portfolio manager saying all of the trade uncertainty go domestic and go into small caps.

i say again you have to be concerned the under performance of banks specifically i think they made a 52 week low today. does it make its way here or domicile quickly i don't know the answer but clearly a lot of clouds out there if you want to pay

attention. stocks finished the main point being the ten-year bond which hit a four year high italian banks trading off that i think the key point here the spread gapping that is a red flag it's nothing to worry about. we are not seeing con dteenage on >>. >> the polls don't show it yet it is still below the 3% rule if the european council rejected

it >> the other question is can it be hiking rates when it has these gaps up yet. it is a bigger fundamental shift. >> i go to exactly that point. i don't think that the yield levels are so low. we are hitting a trip wire yet it does send it into a little bit ofa seiz seizure all of a sudden we stopped

caring about it it seems like the things we worried about a year or so ago are no longer our concerns in terms of fundamental exposure it has about 16 billion on the balance sheet. it is according to the note those numbers are small. >> right >> it is the size of these >> so it's an impact on the

yield curve. it is important that the ten year yield is movingfast delta and united continental issued forecast results for the quarter. lackluster forecast for the quarter. dull delta saying hurricane florence cost roughly $30 million and it had to cancel 270 flights during the storm delta hit down 3.37%

>> i'm inclined not to overthink the market's conclusion. also just general costs and while continued competition on the fair side. you add some more disciplines. the overall index for airlines is down 10% for the high it seems like perhaps the best moment is passed >> it looks like delta got hit the hardest. american down 2.8% united and continental down. >> i don't know if we have a sign of thins to come for the u.s. airlines which have been better protected for competition fears. a lot of those names have been performing terribly over the past couple of months. is it going to play catch up for the u.s. names >> mike just spoke to it we have talked about it a number

of times, how cheap theyare. >> the airlines can't help but tripping over itself >> united continental is up 28% so far this year it had some catch up >> exactly it was a catch up. >> let's talk about regard 83% of listed in initial public offerings this year.

i don't know that we have to raise the alarm on this yet. all of these venture finance companies never want to come public they keep funding the business now they are coming public and a lot of them not producing profits today. it shows you an earlier stage company is coming public right

now. if it got to be a little sillier i think you would worry about it >> i'm always worried. i will tell you, it's one more example of people getting pushed people searching for where ever they can find it. we have a market flash on mattress firm. >> mattress firm is planning to

prepare for bankruptcy production as it seeks to exit costly store leases. that's according to quoting sources. it has been on the rise plus amazon launching its own kas per-like mattress. you've look at sealy trading higher here on this report it is up about 8% here it is certainly a story we will continue to watch. >> thank you >> thank you up next we'll debate whether the federal government should raise the minimum wage to hike salaries or if it could hurt businesses plus the billionaire founder and ceo of spanx, and explains how tariffs are impacting her business we are back in a couple of minutes.

amazon's announcement that it would advocate for federal minimum wage is getting a reaction small employers tend to already face pressure in keeping up with salaries and benefits offered by bigger employers many argues that a federally mandated wage isn't feasible or sensible nationwide. the small business and entrepreneur ship said we appreciate what amazon is doing to help some small businesses but we don't appreciate lobbying for policies they said amazon cannot be allowed to use massive influence in washington to force small employers into playing labor courses. wage advocates said all businesses, big and small, should pay a wage workers should live on. it is way past time to raise the $7.25 minimum wage and help level the playing field among

businesses groups that say higher wages are positive tend to say better pay help them to hang onto workers especially in a tight labor market like what we are seeing right now. >> thanks so much for that amazon's wage announcement has generated praise on both the right and the left of the political aisle. >> higher wages, terrific. by the way, more people working heard me say this before, is not inflationary >> there is absolutely no reason why other profitable corporations like walmart, like the fast food industry, like retail in general and other employees, no reason now why they also should not be paying their employees at least $15 an hour >> well, while there has been mounting pressure are from

political leaders amazon raised without any mandate from the government there are bills for $15 minimum wage hikes is government interference necessary? joining us now sit a fight for 15, let's go to 15 that option i have no doubt would mean fairly severe

jobless, teenagers, low income workers, that -- there's no research that says that would not be bad forjobs >> do you agree or disagree? >> i agree it needs to be increased. it has not been raised since 2009 it has a lower buying power. this is far from a living wage right now. a family of two earning $7.25 would be living in poverty nowhere in the country where you could afford an apartment. what is hopeful in the face of federal gridlock is that 29 states have already raised their

minimum wage so the federal government has fallen far behind. >> i think it needs to be increased. i think we can have it >> particularly -- >> particularly in low wage areas i think we can have an argument about whether it is too high >> i guess i don't understand why the lower risk option is obviously increasing expanding the low income tax credit where you don't find the sorts of employment disruption. the focus is on the minimum wage the only reason i can figure it is the case is because it seems like there is no cost.

>> if congress were willing to address instead of doing i would be all for it. >> i know in your heart you like this idea. >> that's obviously a great idea >> do you think amazon is going to regret kind of making this move following political pressure whether it was because of the political pressure or

not? >> you know, it's far better for them to have jobs and also take advantage of the social safety net rather than not have jobs at all. >> and states as well. 29 states and washington d.c. all pay higher than the federal minimum wage we'll continue to debate this. thank you for weighing >> thank you >> the british minimum wage is a lot higher, 783. >> 783 which translates. >> about a 40% increase. >> yeah. higher cost of living. >> probably more die vvergence we have breaking news.

>> so j.c. penney named the new ceo. she is the ceo at joanne's store. she announced she will leave anded now we know where she was going. she previously held positions at sears and kohl's she said he is highly passionate about the customer by sheerer ching and meeting her expectations so jc penney has a new ceo and it's a woman and the headline is causing the stock to move higher 9% after hours it is sort of a shell of what it used to be a very tough job >> yeah. the market is going to say fine. new set of eyes. somebody with merchandising

experience it's not clear there's a way out for all of the -- you know, too many stores and too many low traffic. >> and with amazon raising minimum wage jerry was on former toys 'r' us and he said looking at sears or jc penney they don't have the ability to talk that kind of talent >> about half a billion dollars now. >> wow >> 4 billion of that >> but up about 10% in the last few minutes. still to come, iheart radio tells us how the merger between sirus and pandora will impact radio listening. we'll have more when the closinbe rur ♪g lletns ou like from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts

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we are positive up 0.46% s&p just below the flat line nasdaq was down and russell down more than the other indexes. sue herrera has an update. >> here is what's happening at this hour. nbc news reporting that the fbi

does not have plans to interview blasey ford. a source saying the white house feels her testimony accusing kavanaugh of sexual assault is sufficient the fbi declining to comment on the matter praising intd ya fdia. antonio speaking at an international sanitation

convention useov i'll send it back down tow to you. >> all right thank you. betting on mergers can turn out to be very profitable for investors but breaking up deals turning out to be pretty luketi lucrative aswell >> while it can be a headache for management teams and advisers breaking them apart can

be a profitable trade for investors. a new study found it is about 5.5 points higher than without the intervention. as far deals that tend to be targeted, they are usually ones that aren't well received. >> a very interesting way of doing this how prominent is it in terms of a number of deals versus the other way around we saw clearly lots of hedge funds got in late in the game

this is the opposite >> this is the strategy you're referring to activists will take a position in the target and urge the acquirer to bump up the price. this is required far deal that requires shareholder approval. this idea that they are breaking apart deals is becoming increasingly popular over the years. it goes back to at least 2010 where we have seen this strategy take place we are starting to see more and more examples. it is the most active of the activists of pursuing the strategy >> it seems to me one of the appeals of it the market knows if they think it is too expensive. so you could be pretty sure that the stocks are going your way. >> exactly, in the opposite

direction. this is becoming increasingly popular as all of the low hanging fruit in terms of bringing deals together has already happened >> interesting trend sarah tells us whether an ipo for the company is in the cards. first we'll get the outlook for a merger when we hear it from the iheart media ceo. we are back in a couple of minutes chls -- minutes. oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital.

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the company is announcing hardware we are get new devices one, one, they did just introduce there that would start at $899. it would be where microsoft could compete with apples ipad pro. they also did introduce the surface laptop 2

>> the most recent quarter they did tell that surface revenue to $1.2 billion it's not just the hardware. >> agencies brands and media we are there julia, over to you >> a long time media veteran thanks for talking to us >> i'm delighted >> filing for a big tech idea. spotify owns a piece of that what does it mean?

more money to fuel your rival's growth >> we have always had a great relationship between radio where people discover their music and their musical action where they put it whether it is a stream or cd or whatever it was in the past i hi the real news is that audio is hot we haven't seen an interest in audio like this in 20 years. suddenly it is between alexis speaker, the streaming services and by the way, the market seems to love it there seems to be great opportunities. >> speaks of sirius creating a much larger rival for you. does it put more pressure on you to sell? >> i don't look at it as rival i look at it that audio is hot i think anything that brings interest to this sector is great

for us >> where do things stand in talks of liberty media >> we are not looking to sell the company. there are now owners of the company that were the debt holders. i think they are looking at, you know, obviously a completely new structure. it is fantastic for us we are excited about the future. >> i have to ask you >> sure. >> you used to run mtv do you think they need to merge to compete in this era of so much consolidation >> i think they are both good companies. one is much better than the other. i think they are great companies. the question is what is their strategy some would lead you to say put them together and others would lead you to say keep them apart. i don't sit in the board room. i think those are probably going

on those are really smart people involved i they they have really good thinkers there and they will figure out what's the right thing for them and that will do it >> thanks so much for joining us here from advertising week back over to you >> thank you to you as well. shares up and walgreens taking a high today it is giving customers a one-stop shopping experience details coming up. the founder of spanx will tell us about the impacts of tariffs on her business. you're watching cnbc worldwide the same iot technology on the ibm cloud that helps race teams improve performance and safety. bye. girls, don't wave at strangers. can now be built into everything we drive.

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independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com spanx didn't advertise for 16 years in the last two years we started doing a lot of digital advertising and we are doing ex exponential growth i would say really the focus for, you know, spanx and businesses out there is the balance between we have all of

these great wholesalers. it's the company needing to get the experience correct and consistent across all of them. so many more touch points now for consumers and how they can connect with your brand. >> we have seen the consumer doing really well. target said it is the best consumer environment he has seen consumers have been trained to accept discounts zblp yeah. it hasn't been our model for business since the start i mean we make such good amazing quality products and so much of what spanx does is we invent we hold several patents. when you're filling space and you're the first to market you can really keep your price

stable and protected consumer, you know, loves the products, so that's been our approach from the very beginning. i have never been interested in being raced to the bottom on spriesing. i have seen lot of brands come and go that chase that model >> i want today ask you about where you sort production. i know you famously have that north carolina factory we have wondering if apparel and retail is the next sector to get hit especially if trade tensions escalate >> yeah. we are watching it very closely at spanx we have not been effected by any of the tariffs or what's going on the bulk of spanx, the first seven years of span spx were ma

in north carolina. i couldn't get the quality that i want andneeded. >> how do you think about the question as to whether you want to take this company public? >> when i started spanx i had never taken a business class in my life. i never worked in fashion or retail for the first several years everyone would ask what my exit strategy was i literally didn't know what they were talking about.

i said you know what my exit strategy is? i want to exit a room and look good that became my staple response far while. now i operate the business very organically. i started it with the 5 grand i had in savings if it feels like the right time i might entertain it but i don't have any plans for it right now. >> thanks. >> self-billionaire. she is giving pledge i did because of the present company feel it necessary to tell you that spanx-men is a whole new line -- >> that's rude >> no. it's not everyone could use a little bit of shape ware for their tummy. >> the equivalent for us is a well cut suit. it probably kcosts a lot more

>> try doing spanx under the well cut suit. >> how strong is the first move or advantage anymore isn't everybody kind of in this area >> the truth is she has gone pretty aggressively after competitors and cats and protecr patants and her intellectual property. >> you can protect the material and the engineering. but anybody can i say i have shape wear. >> shape wear is in and compression is also the athletic trend right now. nike does it. >> under armour. >> mike seems to know about shape we are i wonder why he looks so sleek i think he has been. >> hiding the tummy. >> i work out. >> right ticket master introduce agnew way to pay for hamilton tickets. we're scsidiusng that in today's take away coming up. and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team

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welcome back we've got a news on president trump and a new report come out about his finances eamon javers has the details in d.c. eamon. >> wilfred, no response from the white house just yet to this report that broke within the hour in "the new york times. "the new york times" doing a very deep dive investigation into president trump's finances, his tax history and the finance and tax history of his father, fred trump this reporting goes back decades, multiple generations. "the new york times" having access to a trove of previously secret documents the times alleging the president received up $413 in today's money from his father's financial empire the president suggested he was more of a self-made billionaire dant in fact receive that much money over the years

meanwhile, we are getting a response from the new york state tax department here is what they've said in a statement just out preponderate. saying the tax department is rchg the allegations in "the new york times" article and vigorousrily pursuing all avenues of investigation the white house as i say not commenting but the president's lawyer did provide a statement for "the new york times," charles harder said in "the new york times" article, "the new york times's" amgs of fraud and tax ee vast are 100 peppers if a false and highly adamer to there was no fraud or tax evasion by anyone. the facts upon which the timings bases false allegations are inaccurate i think it's safe to say the president will be dismayed by the story. going right to the heart of his pitch on the campaign trail that he was a self-made billionaire who had enormous business and financial sense and that's why voters should elect him. "the new york times" suggesting the president in fact received

more money from his father than the president has acknowledged in the posast. i think you can imagine the president will have a response and we might want to keep his twitter file open on the phones and wait for that tweet to come in because the president is going to want to react is my prediction. >> i mean, the context is of course he refused to release his income tax returns, right. >> right. >> as a candidate, breaking with precedent. does this raise questions about that or is this before all of that. >> well, i think in the immediate wake of in story going live just within the past hour you have seen calls for the president to release his tax returns. the president said initially doled that as all candidates for president in the modern era have done but then once he was elected once he got to white house, the president decided not to do that the white house says that issue was vetted during the campaign and voters decided it wasn't important and elected him president anyway >> all right, eamon. thank you. let us know if you get the update from the white house.

eamon javers t are getting a check on some ofhe names making big moves after hours here next on the "closing bell. >> announcer: the take away is brought to you by columbia thread needle investments, your success, our priority. this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.

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let's check in on the headlines making news after hoursz j.c. penny has a new ceo the struggling retailer announcing the ceo of jones stores takes over on october 15th the stock jumping 11%. >> temper sealy spiking on a report that the mattress firm fielts for bankruptcy earlier this week. temper sealy has been suing retailer for siouxing knock off versions of products getting a boost on the bankruptcy news. >> mike, overall the take is call it ady veerjens small caps struggle for a second day in a row but the dow at all-time high. >> we are monitoring that. the small cap index, the bank index if you look they look very much oversold and primed to bounz. if they bounce and the overall market gets a rescue, from the fact that the weak groups weighing on it or no longer dragging down but it could go

the other way. >> you're watching -- >> prime minister theresa may makes the final speech at the conservative party confirmation at 5:00 a.m. ebrahim time and the pound going down to a 3-weekly. >> more dollar strength. >> more dollar strength as well. >> big theme for urngs >> the euro was weak today that does it for the ol "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site, overlooking new york city's times square. melissa lee your traders on the nengt tim seymour. karen finer minnesota the nathan and guy adami. stocks are soaring but another bull run that no one is talking about that could be the best trade. the top technician breaks town the breakout from the breakout to breakdown more bad news to facebook and the stock down 9% in the past month. it suddenly happening today that could spell more main. we tell but it but first the rally dow surging to all-time high u