different. going into the close i continue to watch shares of apple. they are down. goldman sachs a cautious commentary and could it be the canary in the coal mine? >> closing bell right now. it is a new week here on wall street. a brutal bout of selling last week is now the time to buy equities we will debate that. president trump weighing in on saudi arabia >> the king firmly denies any knowledge of it. it sounded to me may they may have been rogue killers. who knows? netflix records results

tomorrow wall street senlding a warning about the stock, what it means for tech and the broader market ahead. and an american icon declares bankruptcy, what went wrong at sears and will other retailers follow suit? the closing bell starts right now. welcome to the closing bell. great to have you with us morgan brennan. >> glad to be here >> first a check on the markets with an hour left to trade the dow near a session high. up at the moment 105 points. the high was 142 points. it has been a bit of a yoyo session. up 0.4% on the dow >> yes let's begin today with comments

from carl icon on president trump. hey, scott >> thanks so much. the billionaire investor joined us to discuss the latest battle with michael dell. he weighed in on the market and recent correction for stocks saying he is worried about the impact and a trade fight with china and the tariffs. i think trump has done an excellent job in getting regulations out and getting that tax deal done. i have to say that -- and i have said it before that with tariffs it is a very dangerous game you're playing it's extremely dangerous it helped bring the crash. i'm not a great supporter of

that >> i think the feds -- i think it is responsible at least partly or a good part for having this happening you know, while we go enjoy this i sort of disagree i think that if you kept these interest rates low, if you keep them abnormally low -- i mean i'm talking against myself but if you keep them abnormally low you'll only pay a big price for that you can't keep giving it to people sooner or later it has to go home to roost. it's not to say he can't active. he revealed the sizable stake in the tracking stock hoping to stop michael dell from

acquiring it that is his current take on where we stand in the market so worried about tariffs though. >> i have that point on tariffs. is it the impact tariffs will have on the u.s. economy itself or a bigger fear they would have a slow down? >> i think it's probably all the way around it's what's going on in china and also the companies we are also hearing from have said as we get really into earnings season, whether it is macy's or fed ex so many companies have talked about the impact of tariffs on their businesses the they are concerned. you could blame some of the market upset on what we have already heard regarding those. icon hearing it too. she adding his name into the hat that are concerned about the overall impacts and the tariffs.

>> okay. great stuff. thanks very much let's talk more about rising rates. joining us is rick at the cme. hey, rick. >> hi. it is moving higher. consider this. we sit at 316 yield we are up exactly 75 basis points on the year we settle at 241 almost 50 of those if you look at a year to date chart and then we went sideways as the stock market started to get a little nervous. it wasn't until the august volatility until we saw a delinking of equities. it hasn't been joined or correlated very highly since

we certainly do see that the yield line is still moving higher a high higher and holding what it tells me is that the treasury market is looking for reasons to move higher in rates and lower in points. it sticks in idols basically we have been moving sideways we spent a lot of time in the 270s, 280s and 290s. it wasn't until october 2nd and 3rd that we took out that close from may since then we haven't even touched 311. it is telling us it is firm. much of that is the federal reserve but it's hard for me to use them as a scapegoat. if there's a problem with the federal reserve it's that they held rates too long. this is it it really wants to start

galloping. it is only a matter of time. >> thank you, rick we have a take on the market action over the last week. >> so the outlook for the market in my opinion isn't nearly as good as it was you probably don't gate peek of substance until it is in sight traditionally that is how it worked i think we have had a bulk of the good gains >> yes good afternoon to you. thanks for joining us. what is your general take at the moment in terms of the key levels you're watching for an indication you're likely to move moving forward >> a lot of pain in the marketplace. we are watching in and keying in on the 2,800 level and the s&p cash indeks.

that was an area of overhead resistance for a majority of the year and then the last sprint we took that out. it was ultimately becoming now a false breakout i think that investors have to be eyeing that number and be very careful if we just poke our head above it. it is a 28 level in the etf is something to be mindful of >> i will bring in jim who is joining us on the phone. this is the voice of wilfred, not morgan >> i'm a little higher >> sorry about that. >> not at all. not at all i think it needs a full correction you're a little more optimist k on whether or not we talked or not. >> that's lot of headwinds out

there. we have seen mid-caps break down in the nasdaq there's been a lot of leadership there. we see leadership rolling over it does bother you a little bit. it is very much in tact. the earnings season should be 23 to 24% yes. we are seeing some signs that inflation is coming. we don't have too much of it yet. we expect it to come back in and maybe get down to the 3 to 310 area it is really accommodated for stocks you have a situation where earnings are growing nicely. you have credit lines in tact, strong earnings. there's no reason to think the economy is about to rollover indicators are turning up. we have never gone into a

recession so no reason to think that the forces of the tail winds aren't still stronger than the forces of the headwinds. we can see more adjustment i think they market pretty much as doing a regular correction here >> and in terms of where investors should be positioning here, the fact that we had seen the weakness we had and leaders the last couple of years, are those buying opportunities or should they position themselves elsewhere? >> well, i will touch on that. i think you have to be careful it is easy to look at an individual tech stock and say now there's some value here. i think you have to see support. i'm not a fan of just buying and hoping and trying to catch a falling. i think we have to see to our

other guest point we want to see good news bought and we want to see follow through stock trades up and watch the character of the take. if we see some good tech earnings and they are bought up and follow through that might be your sign to start looking for some value in some areas that have been beaten up. >> i think a similar move in bank of america stock. coming to the risks out there what do you put the recent selloff down to and why was it wrong? >> i don't think it was wrong. what i attribute it to was the sharp rise to the ten year treasure level up to 320 plus. although a lot of people were calling for that they didn't expect it that fastment we are

in october when they are repositioning anyway everybody realizes that they are overweighted in these large cap te tech names you have not enough doorway to clear. you had damage there and it started to spread to other areas of the market. you also had the notion that perhaps this growth trade was maybe getting along and maybe we should be looking at the value trade which is why you saw financials and energy names start to do better i don't think people were necessarily wrong i just think they were trying to get out of the door at the same time. now, i think a lot of these tech names will bounce. i think you like to see it start to see reversals at the upside

the market is showing resilience here in the last few days and then even today nasdaq is showing resilience i think trades can be done from the tech standpoint but from a positioning standpoint you buy what you like. there's plenty of opportunity to do that in this type of environment. >>. >> thank you much. coming up on the closing bell tensions rising on the disappearance and some are warning oil prices could skyrocket if the u.s. places sanctions. we'll discuss the potential fallout. that's straight ahead. >> a 2% jump in profit why is the stock trading lower off the back of that we'll break those numbers down

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president trump talking about missing washington post journalist it comes on the heels of the president calling for an investigation into the disappearance of the journal itself who was last seen entering the consolate on october 2nd. >> mike pompeo is leaving literally within an hour or so he is heading to saudi arabia. we are going to leave nothing uncovered. he didn't really know. i don't want to get into his mind it sounded to me like maybe these could have been rogue killers. who knows? we are going to try getting to the bottom of it very soon his was a flat denial. >> joining us now by phone to

discuss is fred kempe thanks for joining us first given where you are what is the reaction to all of this in istanbul? >> well, let's first not forget this is where she got much of her inspiration for murder mysteries and certainly everyone on the streets here. it is a buzz about what happened and what didn't happen talking off record here to officials, they seem to have much more that they could spell out including the tapes themselves that would move complicity what they don't have, and i really looked into this, is anything directly connecting it. of course in saudi arabia he seems to be the one that has the overall responsibility it is hard to know he wouldn't know something like this

i think there's a lot more they can say and a lot more they can put out that makes it even clearer what happened but they don't have that crucial link which points a little bit to what we have heard that you vus played >> he said he thinks it is really is first foreign policy crisis do you agree >>. >> it is interesting there hasn't been 9/11 and hasn't been an iraqi war if you look back we started this relationship with him on a ship in the red sea ever since then one has looked the other way there were just so much at stake in a relationship.

my guess is pompeo will be coming out to find a way around this i was really interested by the term rogue killers it may be what the king and crown prince say which is, look, we didn't like this guy. he was a critic of the regime. we thought he was a real problem for us this is not what we wanted done. it seems to me in talking with turkish officials that's probably the most likely outcome from the saudi side. they are kind of digging in and saying it one our action at all. the facts are too compelling. >> let's explore that. it is the possible removal

clearly there have been criticisms of saudi arabia breaking laws that might exist in western democracies in the past they don't usually lead to this level of western democratic allies coming together to criticize them if turkey does come out with more videos as well as you suggest how will the king not act more severely than you're suggesting at the moment >> well, and you're right. it will be very difficult for him to manage this is his 33-year-old son. it is very you unusual he would have elevated to crown prince at all. it's something that's deaf niltly in the western interest but he has taken these as i

wrote in the column for cnbc over the weekend the real question is there some solution that keeps these -- that gets this agenda back on track and leaves him injured and harmed and let's move on it is really hard to think about the path it is hard to think about a path that has seen him dumping his favorite son i think it is the diplomatic mission of the trump administration >> thanks for joining us great to speak to you. we have a news alert on one company looking to get out of a deal it had with the saudis.

>> looking to get out of this deal for the wealth fund to invest in the company. it is according to a source close to the situation a source says the company pushed to withdraw from the deal is not done but it is in the process. the deal with the reported value of $400 million is meant to have a stake and endeavor said it is monitoring the situation and really concerned we have reached out to endeavor which says no comment. back over to you >> thank you oil also moving slightly higher today the general manager writing if u.s. sanctions aren't imposed we will be facing an economic disaster that will rock the entire world it is the capitol of the world and it would effect before any other vital commodity. it would lead to the failure to

kplit to producing 7.5 million barrels. if the price angered president trump no one should rule out the price jumping to $100 or $200 or even double that figure. joining us now to discuss whether saudi arabia could do that is here with us at post 9 $200 oil is this realistic? could we get there >> if they remove 3 million barrels we would be off to the races. will they really use this oil weapon it would endanger their as a stable supplier to global markets. it is one of his big things they keep stressing, we will meet any shortfall. if they move the 3 million barrels they are after >> how likely is u.s. sanctions on saudi arabia. there have been various violations >> this one feels a lot

different. this is a u.s. resident, a well known journalist the allegations are so brutal and so whorrific the u.s. senato said the senate relations are an all time low they are pushing to potentially block weapon sales they have given the president 120 days to review whether any senior officials were involved in the case. so this could lead to some sanctions. >> are they saying let's see how this plays out >> they were out there to calm nerves essentially saying look, we are going to continue to be a stable supplier. he did say if we weren't making up for shortfalls we were already be at 100. i think we'll have to watch how

it plays out they are already reaching the limits of what they can bring on in terms of easy oil we'll have to see what happens as we approach our own sanctions. >> what has the reaction been to so far are they ahead of the curve and does it make it more or less likely >> we had a joint statement expressing extreme concern about the case they haven't proposed any sanctions. we are to see how this thing unfolds. you have had the rogue theory put out there. none of this looks good for saudi arabia >> have you changed it today >> we soo v seen low to mid-70s ending the year. again, these are the type of political wild cards that could send oil much higher threatening to remove 3 million barrels is the ultimate black swan event >> great to see you. >> thank you

>> we have got 34 minutes left until the close. we are up 53 points. the session highs is 142 points on the dow it seems elusive nasdaq is down 0.3%. and still ahead, netflix dipping into bare market territory as wall street sounds the alarm. we'll badete whether you should buy the dip. stay with us ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪

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>> let's check in on individual market movers today. reported earnings were beat on the eps line a little -- pretty much in line on the revenue front started out before the market. it is a similar theme for both of them sit a normalized fashion. it is flat it gets all of the retail banks and it's not terrible relative to expectation it is lower than perhaps the start of the year. we are starting to see a little bit of movement out of the deposit accounts people starting to move money into the internet banking

accounts it is not doing enough to offset the best part of the earnings >> it this more of a rising rate or is it potentially signal that economic growth could be used? >> i think interestingly neither of those two things one is it is only really the corporate loan growth. a lot of them are saying they don't need more as opposed to they don't have the room to borrow more. it has not been a spike in credit costs it still looks good. if you had slowing loan growth and spiking provisions you would worry it is looking weak i don't think that's the concern. it's whether we have had a great run and whether peak earnings is behind them. evaluations comes into question.

so it's not like they have had a good run down 6% today. l3 technology, a merging of equals the two companies agreeing to an all stock merger that is considered the biggest deal ever you could probably put it into question it is creating a joint company with about $34 billion it is going to be basically an electronics and communications jugger knot. it will create the six largest defense contractor l it's l3 is up 12% from harris and the way they sort of framed this is that this deal makes sense for strong u.s. economy. they have a need for more investment to deliver more

solutions to customers meaning the government it will require more scale, more investment, broader capabilities it's the reason they are coming together to do this. >> absolutely. we have seen just a tidal wave of aerospace and defense consolidation. it is the latest in what's been quite a number of deals between small and even large cap defense contractors. >> time for a cnbc news update courtney has that for us >> here is what's happening. macron says he won't consider establishing diplomatic until progress is made relations between north and south and human rights issues. this is at a news conference in paris. a staggering drug bust in thailand 22 million meth pills were seized over the weekend in the northern part of the country police put their haul on display

today in bangkok they could be worth as much as $71 million. steving schwarzman at the massachusetts institute of technology it is part of a $1 billion commitment from the university and scientists say that global warming might make beer more expensive it will hurt production of a key beer ingreed yechblt it could be as much as 17% and leave the average cost of beer doubling for consumers. back over to you i think we'll probably still pay for it >> while there are other much more worrying side effects but it did grab my attention >> there's some going on >> there is your collusion >> what would be the reason to flay that much to face

the market is taking that leg lower. it came just before the start of this show. the dow is down 12 points. quite a significant slippage we are joined here there was a report that was mentioned that the saudis preparing to knowledge that the reporter was not there >> you know, i think they might remember that this morning that's what i said that they would probably use an excuse that they had an interrogation that went badly wrong.

i'm not sure congress will buy it but i think that the statement that the couple of news services have repeated indicate that they are going have to own up that they were involved in some way that is not thought to be too good for if market if you look at the minute by minute dhart they have gone up and down it is a market they can't find a sense of direction here. it is nervous. i think it contributed to the nervousness. >> in terms of nervousness do you tli when we start to get more earnings from companies tomorrow and beyond that is going to sort of add someone way or the other >> i think it will help. the key here is that they started this out badly

they turn aid guessively defensive. will they raise the price of oil? will they cut back on production if it looks like it is on the table the market will remain nervous. >> it is clearly a massive pull back a nice little bounce on friday we are currently looking like not holding on, is that a concern for where we head later in the week? >> it could be so friday's turn around with suspect number two it was not very broad and not very

aggressive the jury is out on bl we are settling in or not you might node to go back and retest the loan and go back from there. so it is there, is that something that could allow the market to rally? the yields have come back you're in kind of a circular environment here i would certainly keep my eye on rates. if you punch back up above 3.25 it will get very nervous if you get that then you get a lot more pressure. >> thanks very much.

giving an update saying they are in the final stages of talks. we'll break down her speech and look ahead to another key brexit ekwe really, not just day coming up it could be make or break. we'll discuss. why bother mastering something?

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welcome back this weekend brexit talks had an issue over the northern border she gave an update ahead of an eu summit on wednesday >> you are entering the final stages of these negotiations this is the time -- this is the time for cool calm heads to prevail. it is the time for the critical issues i continue to agree a negotiated deal is the best deal for the u.k. and european union. i believe such a deal is

achievable >> and i said when this came out after all of the back and forth over the weekend i was a little surprised she was so positive and warm i thought she might stand tougher stance either way as does tomorrow morning's cabinet meeting. the key thing she goes to the council's summit and has dinner and is going to make a case. wednesday night and thursday if she fails to come back with some kind of significant progress on the all important issue she will be under a lot of pressure domestically >> if she comes back with absolutely nothing highly resignations would go from there. >> and how would you characterize that? has she been that positive

before >> it has been a slight step back but it has been improving positivity since the last meeting. >> i would say we are still in no man's land. she needs to come back on wednesday and thursday outside of no man's land with some kind of verbal progress or else she faces a high chance of resignations and with a threat to her leadership. there is positivity there. we'll see. hasn't gone back but a bit of positive detail to hold onto sears closing more than 140

stores up next we'll look at what went wrong. later netflix is gearing up to report earnings tomorrow. we have a preview coming up here on the closing bell.

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>> welcome back. sears filing for bankruptcy today. >> hi. so more than 125 years since it was founded sears files for bankruptcy today they have been funding through engineering maneuvers. today's debt payment was too much to cover. today's bankruptcy comes after the proposal he is stepping down. he will stay as chairman he personally owns 31% of sears

shares shoppers have been complaining of empty shelves and racks sears holdings had more than 4,060 stores today it has roughly 700 locations. as part of restructuring will close additional142 stores it is more than a market let's say $39 million. sears bankruptcy could be a positive steve is here it has been very

difficult and a redeveloped former years is generating four to five times the rent that sears was paying i just want viewers to understand that just because sears is filing for bankruptcy it doesn't necessarily mean all of the malls are in trouble further because of this. >> thank you vur -- very much. nasdaq is down 0.6%. we are well off of session highs. it has been an up and down session throughout the day it's not like we have a meaningful rally >> and the worst month since january 2016 we have a llfu report and what's leading it lower when the closing bell returns ss experiene across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts?

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>> welcome back. kate is uptown with the biggest movers >> on pace for longest and right now we are down more than half a percent. off the lows of the day the

russell 2000 also in correction territory. it is down more than 10% from the record high hit back in august about 90% of the nasdaq was either in correction territory or worse more than 70% of the nasdaq 100 was either in correction territory or worse they are all down. tech stocks having a big impact in terms of point declines today. the names having the biggest point impact today on the index. we are watching netflix. it is down more than 1.5%. we'll see how it all shakes out. back over to you >> kate rogers, thank you. amazon ceo speaking at a wire conference.

>> that's right. a surprise guest here at this conference talked about the importance as he sees it of tech companies continuing to work with the u.s. department of defense, a controversial topic here take a listen. >> we are going to continue to support the dod. i think we should. you know, it doesn't make any sense to me. some times one of the jobs of a senior leadership team is to make the right decision even when it is unpopular if big tech companies are going to turn their back on u.s. department of defense this company will be in trouble >> now of course what's interesting there you think of other tech companies, google decided not to remove that controversial contract it was artificial intelligence after receiving backlash from some employees so jeff weighing in there on a broad controversial topic here

back to you. >> thank you very much for that. we have got four minutes left until the bell up next we'll have the closing count down for you your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach

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we have the dow down 43 points s and p down about 0.4%. there is the s&p you can see how we are near session lows towards that session throughout let's have a look at all four. you can see the dows relatively speaking goldman sachs reports having a nice little bounce today. we'll' if it continued i will bring out shanghai. it is down 1.5%. europe and the u.s. have been, we have the sectors coming up as well >> important thing about today is volume is nothing like it was thursday and friday.

i was very impressed by the fact they were not just letting them completely do that >> we are entering the lows of the session. the dow is down 77 point the low is 89 points s&p and nasdaq similarly sliding a little bit towards the close ringing the bell here. it does it for the first half of closing bell back to you. >> thanks. here mike cnbc commentator the dow is down about 91 points.

the s&p closing lower, down 16 points the knanasdaq down about 66 poi. still quite the market gyrations. in terms of other movers today the dow transports ending the day higher netflix has been a poster child for recent troubles. we are going to be diving into that ahead of earnings tomorrow, whether it can turn around the tech sector but really looking at this now, joining us to break down the market move is carrie

l3 technologies was the biggest winners how would you characterize this market move? >> pretty typical after you have one of these volatilities. trader don't want to make the first move or they remember that the second get mouse gets the cheese we saw that. people thought it would be a rerun of friday. no i think the weakness and the nasdaq all day weighed on things i don't think you can make any determination as to where we are headed except to say that i think that it's going to remain a little bit tentative for a little while >> yeah. it wasn't really giving you any

clear leadership during the day. it was weak. it didn't give you a green light to say it cleared up necessarily. >> taking a look at the fact that tech stocks were some of the biggest laggards does it concern you given the fact that we have seen selling in some of these tech names and it has been a sector that's outperformed in recent years >> well, the tech sectors obviously has been the place where it is most clal lenging right now. until we see earnings i would expect earnings would be strong for a number of them you can't really imagine they will tart start to outperform

if we looked at the percent that down more than 10% from the recent high it is 60% of all s&p stocks it is to become comfortable with buying be again. it is what it became comfortable with it might start to get that bottom set from which we can begin to go higher >> the market was comfortable. what is that down to >> i think it was just like the

most beaten up stuff did get a lift today so when every stock has the same vote it was up by a quarter of a percent. it is also really the stock that drives the index it has been a fix i think the market was in. if those will be kind of a source of funds its makes the index stuck for a while. >> on billionaire investor calling into cnbc's halftime report where he weighed in on the stock market's volatile week have a listen. >> i don't think anybody knows what the market will do. it's a fun game. you have to be cautious at this point. i think trump has done an excellent job at getting regulations out and getting that

done i have to say -- and i have said it before that with tariffs it is a very dangerous game you're playing. >> and in terms of those tariffs we certainly saw a number of companies come out and make comments about those trade tensions it is there schichina. if it's a company you're look at you have to take it into account. if earnings expectations are too high and you restate or you would consider what those earnings would be with that tariff maybe the stock is already down 20% you know, you can't be a bull with blinders on

we have seen it go down. there have been many stocks that have come down 20% let's pay attention to when how much is that tariff going to hurt each individual company and what's the hit on that earnings? you can't assume it's going to be consistent across all companies in all sectors >> mike, the headline in that sound bite and the broader segment was china tariffs. if you listen to the full answer it was another sort of undertone to it. the benefits have already been felt we mentioned the tax deal have done a great deal with regulations. it is sort of priced in. it is something that is also filtering out? >> i think it's where the market has been contending with all year we did have a big push and the

sentiment that goes along with that something else is pushing against it not that we anticipated profits being that strong. it is things that weighs on the market it is not just bond yields it tis the ongoing nature, the possibility that they will raise rates into a potential deceleration of growth all of that along with very crowded trades throw it in and this is what we get. >> lest get a news alert on the initiative conference. we have that story, josh >> that's right. >> so diane green will not be attending next week.

saudi arabia is a place you could see cloud computing business diane green will not be attending that it follows other high profile dpektiv dpe executives bill ford and steve case and the heads of black stone all fallout from the disappearance back to you. >> thank you very much another high profile exit from that conference. goldman sachs and may disappoint investors apple is down 2% what's your take on this apple is one of the most on i have yous high profile companies to be hit? >> well, definitely. i will tell you something very

interesting about the note for the goldman. when you look at what consensus is, it is below it the earnings estimates are lower than what the analyst is using i found that surprising. he is negative or possibly negative on the stock. he really is right where the street is. you know, apple does a lot of business in china. it has been a factor for years sales have gone up and down for them they will clearly be worse if there's a big, you know, tax or tariff on iphones. but the consumer for apple phones even in china has been priced insensitive who knows? that might still pay up if the price goes higher. it is manager something to watch he didn't take them down very

much >> it has held up a lot better than some of the nasdaq. it 17% for its high. so i think anything that makes its seem vulnerable is probably not going to be great. on the other hand it has not been a mega growth story it is people reassessing the upgrade cycle and lifting it it is no longer the big discount >> banks earnings are underway bank of america reported this morning bank of america stock closed down 1.9% a leg down in the last half hour of trade

>> i thought if earnings report was the best of all of the large banks that reported so far you know, you had good revenue growth you had 15th consecutive order credit is unbelievable i think people are concerned with banks in general about the impact that the continued rise will have on raising deposit costs at the banks >> and bank of america did talk about that they said that there have been a decline in zero interest accounts of 4% which is not a big decline. i guess it's the start of a move and the change in direction of a trend that investors can get worried about. >> i'm not worried about it. they have grown their deposits so just in three years they have

run that i think it's a natural movement out of low yielding savings accounts into more higher yielding money market accounts what is it for tomorrow? >> how fixed are the income trading results? we saw them very strong at city. not to strong at other institutions i would bet there would be pretty good results. >> i guess the question i have had aside from the concern about deposit costs is going up it's whether they are giving credit for the idea it will last a little bit longer or that maybe they are just not as lev rejed to good economic times as hay had been >> yeah. you were in the slower growing part of the cycle. no question about that you don't want them to grow any faster

if you saw somebody growing at 15% it would make me very concerned. so it's slow and steady or as bank of america likes to say a responsible growth >> what would be your top pick if you were to buy one >> we don't own any of the big money center banks so the answer is not buying them i would say it's clear to us that really it is a bet on the u.s. economy right now their credit card volumes were decent you would think it would be comforting but they didn't buy them because there's a worry about recession, interest rates, what the fed is doing and the china problem. so that's really been the issue. it could continue for the next

few weeks. >> the read through is the economy is doing very well you could do it with the large banks. retail spending despite the government number that came out today, the credit card numbers that retail spending is doing extremely well i like buying a company like bank of america. >> in terms of gold plan sacks the n -- goldman sachs what would you like to see going forward? >> i have been very surprised and impressed by the growth of their consumer banking business. they actually developed an outstanding application through the the form of markets and they

are being competitive. they have spent more resources on the commercial banking business. >> i think it will report strong results. >> thanks for joining us thanks from asset management 7:00 a.m. tomorrow and 7:30 a.m. let's get an earnings alert on trucking company jb hunt. leslie has details >> stock was down as much as 3%. as you can see it has come back quite a bit. trading about flat on the bottom line it beat wall street consensus posting $1.47 compared with $1.38 that the

street was estimating. on the revenue side a slight miss there the company sited some disruption in the logistics process. they talked about how hurricane florence contributed to some of that they talked an an increase in interest rate back over to you >> up next tech stocks have been hit hard we'll discuss whether netflix's earnings can be a come back. find out whether growing tensions could put billions in weapons deals in jeopardy and the impact it could have on defense stocks stay with us something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes,

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high-speed connections. is the world ready for me? through internet essentials, comcast has connected more than six-million low-income people to low-cost, high-speed internet at home. i'm trying to do some homework here. so they're ready for anything. >> netflix shares under pressure can it spark a come back we have a preview for us, julia. >> the big focus is subscribers both for the current quarter the company forecast that it

will add 5 million subscribers 4.35 pll from overseas this quarter. the other number to watch is how many subscriber editions it will add in the fourth quarter. it is for 7.6 million new subscribers. the company is projected to grow revenue by 34% earnings are expected to increase by 135% to 68 cents per share. today the stock taking a hit down nearly 2% lowering the price target on higher discount rates but saying we remain bullish as upside drivers remain large and negative catalysts, loss of key content appear low we'll see what he says about that competitive environment at&t launching the consumer service next year.

>> thank you very much for that. we look forward to those numbers. we'll continue the discussion on netflix and whether earnings could impact along with the rest of the market. if i 125r9 with you what's your take on whether it will be something to calm the broader. >> i think from the indicator netflix has taken a much more active role in setting the stone than in the past in terms of the read-throughs it really doesn't have strong read throughs other than the investor sentiment and stock market we'll set the tone early on here >> netflix is facing increasing

competition. you had a new streaming service that was launched by at&t. we are expecting the service from disney. it is that apple is putting together right now why is there a reason to think that netflix could continue to grow and grow as aggressively. >> i don't believe it will i think netflix is going to continue to struggle they have more and more competition. they are losing the disney content. it is the largest libraries of movies and tv shows and a lot of channels and all of the content and channels they just picked up

from 21st century fox. >> in thinking about competition and how it matters or doesn't what do we know about how customers think about these services they are saying i'm only going to subscribe to one or does it seem as long as netflix is in the mix they will participate in the growth of this market? >> there is very little evidence of competition so far. still ton the bottom end so perhaps there will be more of that it will depend on price points chls people seem to gravitate to what they like so so long as they are able to get that type of nominal then

these services should coexist. >> so i have been going back to the comments what do you like in tech right now? >> i believe disney as far as the media play is going to be -- i think disney could as far as the dominant streaming service i do like amazon i do like apple. i like google. google gives you so many growth drivers. it is at the forefront of every major tech trend as far as cloud, mobile, video and advertising. i also do like facebook. >> what about -- >> except for netflix. >> what about your take in terms of some of the traditional media

companies? any reason to buy the company names? >> no. i think they increasingly challenging. the distribution molds changed there is a very important consequence of this. the reach of many of the distribution molds is on the decline advertising dollars is shifting away to digital they are all very challenging for those types of businesses. >> thank you for joining us. >> up next we look at whether big tech name will be able to nab a come back and whether the company can rebound without their leadership >> and i will be here for the next block we'll look at what sears's bankruptcy filing means for the chairman and controlling chair holder and whether he could

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it is largely due to the foreseeable future building on the momentum they are seeing it looks like more on the specifics with regard to their strategy and how they really get to the targets it will be discussed at the analyst day. reaffirming and 2018 revenue of $2.42 billion. back to you. mike looks at whether it could rebound, mike. >> if it would be a bit of tall order it is obviously the index on which it is based half of this index is apple,

amazon and my kicrosoft and facebook unlike the broader market where unlike the january selloff it was not until august that we recovered. it sprang back very quickly. a lot of investors lid and were operating at a much higher level even at the exclusion of a everything elsewhere it is a little bit trapped but we did get lower down here it seems as if it will be the big question first of all is there just an ongoing rotation happening outside of this tech group into other stocks if there is a rotation out this is such an important part of the market it will be while that process takes place. kind of an odd part of the cycle to give way to other leadership group. >> you mentioned the stocks that

make up 50%. have they been moving back in the same kind of bracket or has it been lead by one or two of them >> obviously apple had been holding up the best. this has been the biggest single weight also just as a note this decline through today's low was about 8% it remains about 8%. it is worse than the overall market it is a change in tone where things held up a little bit better >> and i think we mentioned coming in last week it could alter the narrative. it has not happened. does the same apply to the tech stocks how crucial is earnings season >> interestingly i don't think that's lot of disagreements. it ran so far ahead. people thought that for many years to come the earnings were going to come through. i do think there's a chance that

for example people once again are stunned at how fast a company of that size can grow i think it could help. it remains to be seen. it is a little bit of a show me market i think it goes for the big tech stocks as well >> we got that market flash. it is up 4% after dropping today. so i wonder about how those results play out for these and if you start to see a pull back in some of the spending numbers i wonder if it ends up becoming a catalyst for the stocks? >> mostly it is about people positioning differently as opposed to specific concern about the underlying fundamental problems coming up -- or now we have a news update. >> all right here is what's happening president trump touring the devastation.

more than 190,000 homes and businesses in florida are without electricity along with about 120,000 in georgia >> we are doing more than anybody would have ever done and probably that hasn't been hit like this certainly not very often. they say 50 years ago there was one that had this kind of power. that's a long time >> the pentagon says more than 80% of the f35 jets have cleared engine inspection. last week all u.s. fighter jets were grounded so the fuel tubes could be examined. a huge upset over the weekend cost a hefty sum fining the school $100,000 after the fans stormed following the victory over then number two georgia. the next violation will cost the school $250,000. this is because it was actually the second violation i got

i got the first one in 2014. it is for the safety of the crowd. that's the rchblteason. back to you at this hour >> okay. i guess i can get safety it is exciting zbli rushed the field at a game in my life i can't necessarily blame the excited fans >> all right thank you. >> thanks. coming up disagreeing with president trump's recent comments about the fed, why he is warning that keeping rates w uld adlocole to trouble. that's later on the closing bell

matching a cnn headline considering saying rogue on on -- one company that is already feeling the impact of increased pressure on saudi arabia they have built strong ties with the country with crown prince boosting the tech focused vision fund we have the latest, josh >> morgan, it is dropping about

7% on monday now down nearly 20% this month all of the bad news tied to saudi arabia just this month remember, crown prince disclosed he would a another $45 billion and the public investment fund is the largest investor in the current $93 billion vision fund committing $45 billion there as well notable investments, and gm's. i checked in with walter and he sees this given the relationship to the kingdom as pressure does mount over the disappearance i is unclear to him what the ultimate financial fallout will be since he has the committed

said di mon saudi. i'm told the company plan to keep investing here. what about uber? pulled out of saudi conference we are already seeing reaction back to you. >> we are keeping you busy this hour thank you. it might not be the only area effected between the u.s. and saudi arabia president trump was asked about the $110 billion arms deal that was brokered between the two nations last year and whether sanctions could impact that deal >> it depends what the sanction is they are ordering military equipment. everybody in the world wanted that order russia wanted it china wanted it. we wanted it we got it. >> so would you cut thatoff? >> i'll tell you what i don't

want do, boeing, lockheed, i don't want to hurt jobs. i don't want to lose an order like that. if there were other ways of punishing to use a word. that's a pretty harsh word but that's true. >> carter copeland thanks for joining us today. >> thanks for having me. >> given the reports we are getting that saudi arabia might be mulling a statement about it being a botched interrogation. it doesn't sound very good to me where would it go from here if we see a statement like that >> it is not good but it's a narrative that makes sense and provides some sort of excuse blt. i think what wasn't good is standing bay story that absolutely nobody believed that he walked in and walked out through a back door and the cameras weren't working. there's no sign of him

>> it's still a pretty shocking admission. it would be pretty severe from european allies and from congress for the president to do some -- to put in some form of punishment >> i think there will be a response if what they do is they lay outa line of argument that says there were all of these things that were concerns and all of these ties to extremists. it would get people to stop and consider and enter into negotiations and discussions i think there will be a respon and should be a response if that's what happened that's lot that we don't know and we don't know how much of what's been reported turns out to be true and how much isn't. friends that have been accused of being spies in the turkish press can tell you all sorts of stories.

i think we are perhaps at a turning point in this. it has been growing and growing and growing for ten days >> carter, i want to get your thoughts on the potential impact to the defense sector here i realize that's lot of ifs. we have to see if the results of the investigation, etcetera. he doesn't necessarily want to put a hold on those potential fore military sales because of potential jobs impacts and the other argument would go the fact that more sales drive down costs for us here in terms of weapon ri what's your take on this? >> i think the latter pafrt is exactly right. we can do a lot to push defense stock around you can add this to the list of things folks have worried about i would say year to date

you started assigning probabilities to cancelling weapons purchases i think it's an extremely low probability and frankly close to zero. it doesn't make a lot of sense boeing just got awarded the air force training program a week ago. those prices have been hailed as being low and good for the air force. part of the reason the prices are low is because you get good abso absorbtion there will be repercussions that are tough to stomach for the industrial base. >> okay. quickly before i let both of you go i have to get the thoughts on the other defense news of the day. your thoughts. >> yeah. i think it's a fantastic

transaction. i think it's one the industry thought would make a lot of sense in the years past. you need to get over the kind of social hurdles to get a deal like this done i is very technologically focused. it will be their wheel house i think for this deal it is not a last move it's a first move and really makes for a very attractive conversation. >> thank you both for joining us john and carter. >> thank you coming up tomorrow larry fink discusses his decision not to attend the big economic and his company's earnings come out. as always watch larry fink but

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they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. welcome back sears is filing for bankruptcy

we have a look at what it means for the chairman and controlling. >> that's right. for the better part of a decade eddy lampert's name but it is unclear whether his hedge fund generated returns or losses from this very long investment. he personally holds a 31% stake. it owns an additional 18.9% and he owns a significant amount of sears debt not to mention the reputational damage that comes from overseeing a master plan. he has been accused by analysts in the media and others of enriching himself as the company has been shrinking it is currently fle gauchuating a debtor in position or dip loan to keep the company operational

it is a key way for so long it is much of the company's real estate and craftsman tool line he has been seeking to participate those deals as he still holds a stake in the reit that owns the sears real estate and owns a public interest in the land's end guys >> thanks so much for that mike, your take on the latest here >> been a slow motion liquidation of a public company which is very odd to see i do think a lot of folks, unless he gets this, we just don't know exactly how much cash money was put up to buy. came out of bankruptcy, and then it was the sears transaction i actually think that it was going in this direction no matter what. it was a bad capital structure for a company though with a lot of bad locations people forget. we always talk about the sears piece. there were more kmart locations than sears, so real walmart and

home depot kind of sent this company on its way to a decline long before amazon came around or even long before, you know, eddie lampert was owning it. >> we've got a news alert, meantime, on cloud communications company twillio josh limit op has the details. >> reporter: acquisition they will be acquiring sendgrid in an all-stock transaction valued at $2 billion, expected to clothes first half of 2019. twillio's ceo jeff lawson says the company is for channels around the world and it's important to include this capability in our platform twillio is dipping here in the after hours. of course, the software developer, a big run, more than 200% year to date. guys, back to you. >> josh, thanks for that you said it earlier, morgan. keeping josh busy. he's really lots of breaking news for us today. a parting of ways of the that's

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will a new wave of quarterly numbers erase market uncertainty? bank results and expectations from netflix "squawk on the street" at 9:00 a.m. eastern. welcome back last week president trump said the fed was out of control and crazy, continuing to raise interest rates, but today on "halftime report" billionaire investor and trump supporter carl icahn said the fed is doing the right thing. >> i do think that when you have the fed -- i think the fed is responsible, at least partly or a good part, for having this bull market happening, and, you know while we all enjoyed this bull market, i sort of disagree

with donald there that i think that if you kept these interest rates lower -- if you keep them abnormally low, which is good, i mean, i'm talking against myself, but if you keep them abnormally low you're only going pay a big price for that >> kind of goes back to the point that we mentioned earlier. the theme that came through his interview which is we're late cycle and you've got to take the decisions that go with that and one of them is something that investors don't necessarily like. >> it's true. >> in fairness, he's kind of felt that way for some time. right now he's been a little bit skeptical of the market and i always chock it up to the kind of investor icahn is he wants the odds very much stocked in his favor rather than saying i'll participate in the market that goes up that fuels his philosophy there also, people have been in the markets decade are inherently uncomfortable with rates at these levels, and they feel as if almost as a gut feeling they should be higher so i'm not really surprised at that the

either. >> on the flip side, we did get the data point showing that the deficit is growing so it does make the point for the fact that we've seen more government spending those payments on interests are certainly ballooning right now. >> without a doubt. >> and i think there's going to be sensitivity to that we'll need to pass another budget, and i think you'll see another year of dev states are very eye-catching and interesting costs are coming from very low levels as a percentage of the budget but not helping. >> i guess a sign as well, but he's not the only one with the late cycle opinion on the surface the best quarter of an interest that they have ever had and yet the stock is done and it's that kind of flashing light saying is this the best it can be >> exactly. >> the market is really turning the direction of not giving companies credit for the durability of the good times, and it's not just banking, but it does really reflect itself there, i'm sure. >> with the banks, they came into the earnings season relatively well-priced

the kbw index down 3.7% this year people looking to morgan stanley, down 15.5% and 17% respectively so they are really priced to perform well. >> you would think they are primed for it. >> and the beat and also the decline. that does it for "closing bell." morgan, thanks for joining us. >> great to be here. >> "fast money" starts now >> "fast money" starts right now. live from the nasdaq market site over melissa lee tim seymour, karen finerman, steve seymour and guy adami, the man who called a big tech selloff has had a bigger warning. mike wilson says how bad he thinks the selloff could get and sears waving the white flag and filing for bankruptcy. is the downfall of the cite american icon a warning for other retailers or cautionary tale of mismanagement? we've got all the details, but first we start off with a make-or-break moment for the market as it remains under pressure earnings season, will it be,