nugget location or a caesar's. my check, please, is all about the possible reported source-reported deal for caesar's and maybe tillman operations we'll see if anything comes up with that. >> $3 below the bid so markets are not saying it. >> i'm still buying a lottery ticket. >> thanks for joining us thanks for watching. >> and "closing bell" right now. knott ♪ good afternoon and welcome to "closing bell." i'm wilfred frost. >> and i'm sara eisen in for kelly evans. >> no recorded open. someone recorded the headlines had a little late. >> i don't know if that was the problem. >> really, i'm pretty sure it was. >> busy day. >> as usual on time. here is the check in on the markets. >> this -- still on time. >> this final hour of trade, and it's been a bit of a yo-yo final hour or so but certainly well off the lows of the day. the dow was down 319 points at

one stage. it's currently down 57 with the s&p just positive. >> nasdaq still on pace for its biggest monthly decline since january 2016 cnbc's seema mody is on the floor with more on today's market action, especially after the fed minutes were released. seema? >> the market has been all over the place. as you just pointed out dow was down as much as 319 points at the lows we came back into positive territory and then sold off once the fed meeting minutes came out. now we're trying to get back into positive territory, but one sector that has led the dow lower is technology. we're here at post 6 take a look at shares of ibm, down over 7%, and it's trading on heavy volume. 14.4 billion shares have exchanged hands, five times the 20-day average a lot of concerns around earnings and revenue which declined to present. remember, technology as a sector has been developing some of the best revenue growth that we've seen over the past couple of quarters other tech names that have been

moving to the downside, advanced my crow devices and micron tech and the oil market has been also getting some attention, marathon, chevron, british petroleum. some of the energy names moving lower as brent crude tries to hang on to $880 a barrel here's the thing this market will be much lower if it wasn't for the financials out performance. goldman sachs the best performing stock on the market right now. some saying valuations are attractive and q4 numbers have been holding as well traders are still trying to dissect the latest fed meeting minutes and the future path. it's notal dividend-names from pharma to tobacco names like philip morris are moving higher into trade the dow is down about 62 points. we'll see if the outperformance on financials can perhaps help the dow break back into positive territory. for now, back to you.

>> seema, great stuff. thanks very much now the fed minutes, of course, out in the last hour or so officials saying gradual increases are consistent with expansion. some participants believe it's necessary to become modest -- gosh, modestly restrictive there we go for a period of time. >> just rolls off your fong. >> it does. >> it rolls off two people's tongues who we're about to talk to very smoothly others say they would not favor a restrictive policy without clear signs of an overheating economy. joining us now cnbc contributor richard firer, senior adviser at barb claes and former president of the dallas fed and also with us fresh mishkin, economics professor and former fed board governor richard, if i start with you, let's focus in on that lines, modestly restrictive what do you make of that i mean, the dollar jumped a little bit, so slightly hawkish. >> well, first, wilfred, you silver-tongued devil you you say things so beautifully. we'll try to repeat this

fred mishkin is one of the most articulate people i know so i'm third base here but not home run. first of all, obviously they are where they want to be or better where they thought they would be in terms of the economy. we have 3.7% unemployment. the inflation rate is hovering had a little bit above 2%, but that's acceptable. they undershot it for quite a while. if anything the signs tell you that the pressure on the inflation front would be slightly higher. not a deflationary risk at this point, but i've said this a million times. this is not what they are up to right now. having reached the dual mandate targets and surpassed them in the case of full employment and bringing people from out of the workforce and the data shows 7 million jobs were being unfulfilled, put nurse their shoes, and that's to prepare for what should happen at some point, we don't know, when a downtunchlt you wa downturn

you want to get enough rate increases under your belt without disrupting the economy so you can get back a mitigated downturn i think the path is fairly predictable, and i find no surprises in the minutes whatsoever, and i find no surprises. the market is each discounting the fed's fund future for december at 78% as we speak, so i think the market is digesting this well. i don't take the president's viewpoint that the fed is doing damage or that they are crazy or whatever it may be this is the most steady and important hand in all of washington have you to have a very serious deliberate central bank. we have it under the current leadership, and we've had it for a while amend i think they will continue down this path. >> as it relates to the policy path and the whole restrictive word, fred, is that how you see what we got from the minutes from the last meeting today? >> yeah. i think that here's the issue. the fed is doing its job properly which is that it has to basically take the punch bowl away from the party when the party is getting god, and the

party has been getting pretty good, that there's clearly an issue about how gradual you have to be in terms of raising rates. i do think there's an issue that the market may be underpricing the possibility that the fed may have to raise faster and not be as gradual because we're in territory which we've seen before where this very low unemployment rate you may start to find basically inflation may start to actually get a little bit out of hand. it's not clear we've actually had very good inflation numbers, inflation which has been quieter and going up than actually suspected, but you can't count on that, and so i think that's one of the reasons why there is a fair. a uncertainty exactly what the fed will have to do depending on what -- what kind of economic numbers we start to see, particularly on the inflation front. so the fed cannot let it get behind the curve and allow inflation to start to heat up. the fed has worked very hard for

the past 15 years or so a to stabilize inflation and anchor inflation expectations they have done a superb job, an they certainly don't want to give that up. >> fred there, was a line about decoupling of global growth being a downside risk. how quickly can had a change the bargain? as soon as next year >> well, i think the issue here is you have to remember that the u.s. economy is a fairly closed economy. we're really not much affected by what goes on elsewhere in the world than other economies are we're really the big kahuna here, and in that sense unless there's serious disruption abroad and particularly with the fed really worried about serious financial disruption abroad, i don't think that the impact will be huge on the u.s. economy. our economy is doing very well, and that's the kind of numbers they are seeing and the way they are acting. >> certainly could hurt us through the strength of dollar, richard? >> no, i agree with fred on that i think we're both on the same wavelength here. the underlying point is you can

duck policy by being a firm anchor for the economy, a reliable basis for our economy given be that your job is to provide the monetary wherewithal, and you don't throw it out window for either some political purpose which is not going to happen, and you don't throw it out the window just because of -- unless it's systemically disruptive because of problems elsewhere. as fred said, we are the big can a humida, and we're very lucky to have that position. doesn't mean you're smug about it or ignore what's going on in the rest of the world. something would have to be very serious in order to affect us. right now it doesn't seem likely but we'll have to see. last thing you want to do is give in to any political forces. doesn't matter where it comes from because, again, the world depends on the central bank of the united states, the federal reserve, to be dependable, and not to shift moves and i don't see that happening it's been work on this franchise for so long now, and particularly the last 15 years

it's mentioned to resurrect things and get them on even balance. they are doing a good job land ton do so in my view. >> just to play devil's advocate, brent, clearly you both sound like you don't want the president to be weighing in as often as he is on federal policy and perhaps as critically as he is does the president have a point? if the inflation numbers aren't a big worry or source of concern which it doesn't appear they are in the minutes and the numbers show had a little bit of decrease in inflation expectation, maybe the fed doesn't have to go as fast as it is does he have a point >> so, there's always this issue that in a sense you have to look through the chrystal ball and decide what's actually going to happen central banks frequently make mistakes each with the right information that they have the key point is when you get a president who starts to lean on a central bank and -- and interferes with its independence, the outcome is not usually a good one right now i don't see this as a

big problem because trump is trump, and he likes to say quite amazing things, and -- and it's -- you know, it's part of his, quote, charm, and so i think in that saeps it's not a big deal however, if in fact the president actually starts to do things that start to to hurt the fed, there are bills in congress that could be harmful to the fed, if he starts leaping on the fed that way, that could be bad we have an example of this, by the way, which is turkey in turkey erdogan, who is the president, has been very much leaning on the central bank not to do its job, not to raise rates when inflation could become a problem, and they have gotten so far behind the curve that thurky is nowurkey is now . and these not a play to make is trump going to be serious about upping the ante here if so, that's a problem. if it's just cheap talk, you know, it will be something that will entertain us and hopefully that will be the end of it >> well, he did say he respects their independence, and he doesn't tell them what to do.

>> and he's made -- he's made some very good appointments, by the way. have to give him credit into. >> let me be very clear. the appointments, i know these people very well it's really remarkable how good these appointments are, and that tells you a lot. >> sara, can i just make a quick point. >> very quickly, richard. >> there is a history here you don't want to go down as an arthur burns if you're the leader right now, and, secondly, people forget mcchessani martnen was beaten, and if you go into the notes at the lbj library here in texas, he says he's never lived down the shame of giving into that political force. so that's part of the dna of the fed, and i know jay powell has that deep in his system, and i think fred is right. let the president talk all he wants. let them conduct poll sit way they are conducting it. >> all right in defense of the fed, and even with a plug for texas. guys, thanks very much

richard fisher and fred mishkin. >> the last word to richard again. he always gets the last word >> he likes that. >> only in the studio. not at home. >> be sure to tune into "squawk on the street" tomorrow. we'll be speaking with stanley fisher about rising interest rates, the president's criticism and a lot more, 10:00 a.m. haven't heard from him a lot since he's been off the fed, and i think he has strong opinions about what is being said in the political sphere. >> look forward to that. joining our "closing bell" execs change rick santelli afrom the cme group. we've got at big decline triple digits, rallied back looked like the interpretation of the fed minutes was not positive for stocks, but also didn't throw us off. >> when you get as oversold as we did on october 10th and we're

moving into what everybody predicts is a very strong earnings season you'll have economic churn in the market when economic data points come out around housing and around inflation, and that's precisely what you're seeing here. the minutes did have an impact, so this is where the market is right now. they are trying to read the tea leaves and see if they can predict a policy error coming from the fed as we just heard from mr. fisher and mishkin, i agree with them 100% the difference between the jay powell fed and janet yellen fed is yalen said she would err on the side of not doing enough and get away from inflation before they fed policy restrictions jay powell said they are trying to get ahead of it and when you look at a jolts number overbs n7 million and they see wage pressures, they are trying to get ahead of it. while the market is digesting economic data come out as well as looking at the strong earnings that are going to come, you'll see churn in the market the one point that i would make of all the major indices is the

small caps which got bludgeoned most and had the most technical damage from the selloff last week they need to get back to a 1660, 1680 level and we're out of the woods and we've digested in the short term and then we can move forward. >> we're at 1580 as we speak rick, what's the main takeaway from the minute? >> you know, it's like a tale of two markets. the equity trade remembers always like madam defarming and the fed is always like the bat steel, and there's always a problem there. the private institutional investors that mostly hang out in the mixed income markets, rates continue to move up after the fed minutes and the dollar is having a spectacular day, not spectacular to the point where, you know, i'm telling you it's the best level all year, although it's getting somewhat close, but it really avoided a technical disaster yesterday intraday trade under 95, having settled under 959 since the end of september, big turnaround

i think in the end that we don't know how much jay powell and company will push past neutral, and i think that the fixed income market seems to give him and the fomc members a lot more latitude in that record. the treasury complex seems coil to me after this is going to be the fifth day we've basically been in supertight closings ranges, although we're starting to see it move out two-year note yields at 2.88, seen a few 3.17 and 3.18 and 10s. only five basis points off our highest yield close in seven year, so i do think that the fed and the fixed income markets and the dollar index markets are moving in a logical fashion. i think equities, i understand volatility, and i understand the aftermath. it's not binary when you have days like we had last week, but they seem to be getting their sea legs back, and the economy still seems to be juiced up pretty good. >> so i guess the question,

jeff, what is it all going to mean for stocks? it is the fed policy of keeping to raise interest rates gradually and higher rates going to stand in for a stock market rally. >> i think the fed will be so gradual. quite frankly, i don't even know what a neutral rate is i don't know what that means when they say that got sold out on the downside as we were on the february 9th undercut low we think we made the low last week, and we told investors to put more capital to work, that we actually raised a few weeks ago on a very short-term sale, and that was two weeks ago we think the markets are in fine shape and that the fed will raise rates very slowly and it doesn't disrupt the economy and doesn't disrupt housing or the stock market. >> the italian budget being entirely rejected and brexit, issues being talked about, but are people looking past that >> we'll see if the events

actually occur, but for right now i'm not too concerned about them at all. >> big move is banks are up a pes. >> yields are run. >> and better results, maybe digest nag. >> momentum from yesterday, exactly. cool, we'll lev it there thank you all very much. netflix reporting block buster subscriber numbers, but will an influx of streaming rivals derail that stock we'll speak with a content creator who has produced shows for the likes of netflix, facebook and the bbc he's not listed there, but he has, about the competitive landscape. >> not real el hugely popular here as much as it is back home. >> still, the british broadcast being corporation very important, declining importance. >> elop musk thinks teslwi a bargain and his big plan to buy shares that's coming up next.

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unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. some news out of tesla to tell you about today the company securing land in china for a new factory, and elon musk says he's buying more stock. let's send it over to phil lebeau in chicago for all the

details. hi, phil. >> reporter: sara, this will be a $20 million purchase that elon musk will be making of shares of tesla the next time the open period comes up for him to purchase those shares. this was announced this morning, and people often say, well, how often is elon musk buying shares and how much of the company does he own he owns about 20% of tesla shares and he's been buying tesla stock on the open market with regularity. in fact, you don't have to go back far to find him buying 20 million right now, june, 24 million, about 10 million in march. these are all announced when he would be doing the purchases and march of last year another 25 million, and these are outright purchases on the open market, separate from when he's exercising stock options and stock grants that's one piece of news fortes [ laughter ] the other piece of news, the company announcing it's bought land in shanghai this is where the company will be building giga factory three, the third plant where they will not only do final assembly but also do battery production for

teslamodels that will be sold in china, and the importance of this is that tesla has said it will move quickly. it would like to build this plant and have it up and running within two years guys, in the auto world, as you take a look at shares of tes larks building a plant from scratch in 18 months to 24 months is moving lightning fast, and very few in the auto industry believe that tesla can actually accomplish that but they are moving quicker saying this is what we're doing in china. >> have his stock purchases in the past acted as short-term floors in the price? >> too hard to tell. times when you see him purchase the stock and that day there's a bit of a bump, and then the stock will pull back there's times when he said he's going to be buying stock and it doesn't do anything. just too volatile to say this is a trigger for people to buy more shares >> well, not having that effect

at least today. >> sure. >> the stock down 2%. >> phil lebeau, thanks less than 40 minutes to go, 38 until the closing beshlg and we' - closing bell, and we've got the dow moving south still, red arrows. we'll see what happens in the last 80 minutes or so. s&p 500 is around the flat live. up next, the former president of nickelodeon will be here to join us and explain why netflix is reinventing hollywood. plus, the one thing that could derail the company's growth. home improvement stocks getting hit hard after the announcement of rising rates on the ushoing market we'll break down the analyst notes after the break. from farm, to pot, to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪

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welcome back into the "closing bell. 34 minutes left to the tray. s&p essentially flat let's check in on individual stocks to watch. credit suisse downgrading and home beat and lowe's down and they are moderating home prices. lowe's touch a two-month low for today and home depot hitting a five-month low. >> adding to some of the worries that we've seen now about the u.s. housing market. vulnerability, higher mortgage rates, inventory, all feeding

into the worries there my stock to watch is campbell's super again. key members of the soup-maker's family will vote in support of the current board at the company's highly dramatized aronual shareholder meeting november 29. investor dan loeb launched a proxy fight to laufrpt entire board. the stock is getting hammered this afternoon, down 6.3% after what was revealed in the filing that three current board members, not a surprise, that decedents of the original soup-maker, the dorrance family support the board. the math will be extremely hard for mr. loeb and his allies that control about 10%. >> amazing it's only 10% when you call for a wild change against sort of a united family. >> correct. >> the company says, look, we're putting out a strategic plan and dealing with these issues including the debt and selling

off some of the businesses to keep it focused. nothing out there that loeb is presenting that's anything new he's pointed to an a all-out sale they continue to make their case and loeb says the shares have completely underperformed, and you can't trust this board it's getting a little messy, but 41% will be a high hurdle for him to cross. >> good soup. >> you're quoting the president, right? >> every time. >> time for a cnbc news update with sue herera it is. >> here's what's happening at this hour. the first lady memorial trump focusing on newborn babe white house suffer from opioid withdrawal she and health and human services secretary alex azar visiting the thomas jefferson university hospital in philadelphia where health officials are looking for answers. >> there are few things harder to bear than seeing a newborn suffer, and i'm anxious to do all that i can to help shine a light on this epidemic. >> defense secretary jim mattis

advice visiting an air base in vietnam where toxic chemicals were stored during the vietnam war. he also attended a briefing on plans to clean up that site. and a controversy involving los angeles dodgers shortstop manny machado last night in the game in the tenth inning he hit a ground ball to short, but when he crossed first base, take a look alternate, he made no attempt apparently to avoid the foot of milwaukee's first baseman. well, on that note the benches cleared and afterwards some brewers called it a dirty play >> it's not that bad, is it? >> apparently it was to the brewers. it was to the brewers. i don't know i think it was a little iffy. >> looks a bit soft. just get on with it. >> sue, get on with it. >> you got it. netflix trading higher today after reporting strong earnings and strong subscriber numbers.

during the call they addressed the increasing competitors facing the company. >> there are so many competetives disney is going to enter, at&t is going to expand and hbo youtube is just on fire growing around the world video gaming like fortnite, so many great ways to have entertainment on a screen, so, you know, we don't focus that much on any one because no one seems to affect us that much >> joining us now to discuss more on this is the former president of nickelodeon and bbc worldwide as the former vice chairman of mtv networks herb, thanks so much for joining us first question is this subscriber growth that we're seeing at the moment fonetflix

new trend? >> they missed subscriber numbers last quarter so they are still on their game in a big way, and that's the way people are measuring the success of netflix. >> and yet so many competitors are coming up and making plans to try to snatch some of the bills. i mean, we haven't even seen the disney direct to consumer streaming platform that it will release next year, herb. how do you expect this industry to look next year, and can netflix still have the crown >> well, this is a remarkable company. i mean, they make all the right moves, and they have also done thing that hollywood said just can't be done. their whole philosophy was if we build, it they will come, and sure enough, they will come. they have got subscribers up like any other entity in streaming. they are making original programming and they don't have to buy a company, they just built a company, and they have young viewers. if you talk to people in the cable business, you know, the

hole has fallen out on younger viewers and 18 to 24-year-olds are no longer coming to tv and cable. it's more of a plus 25 medium. anybody who comes, they may nip around the edges, but i don't think there's anything that's going to make them, you know, really put a dent into this business for three to five years, and if so, it will be around the edges. >> herb, do you think disney is right to spend a lot of money to try and take them on in this area, or do you think fox is right to kind of call it a day, pull back and focus on different areas? >> well, you know, the real hall mark of why netflix is winning is because they are giving people what they want, you know. the broadcast was trumped by cable because cable was more for me if i were a team i liked mtv and a kid nickload yap and netflix trumps cable because it's all about me i pick what i want, so, you know, that's the game now, and anybody that things that they can just kind of rest on their laurels about the way they got

audiences in the past is probably missing the boat and disney and time warner are jumping in because i think they understand that this is a new media economy. it's on demand, and they have to play >> what do you think about this announcement from your former com. mtv reboots "the real world" on facebook with a studio pushing, and it will be a little more interactive this time. how do you capture that demographic, and what do you think they are going for here? >> i think it's clear, and the announcement made about the rise and taking it to other platforms and this the the validation of that strategy. i think mean has been kind of hit in the-it-p on their own chonls as well as other channel and they were the best when they were innovating and not reworking older property it's how do you revive mtv on the basis of stuff that people really want and to do it on

their own channels and not just by taking it to other places >> herb, thanks very much for joining us >> i know you wanted to talk about bbc and i know you're sad about that. >> that makes me nostalgic. >> bbc is going less strong. >> made up a big portion of my viewing. >> you like the reality shows. >> is this better than "the bachelor." >> "bachelor" is the best. >> still to come, a top technician breaks down the three charts that could term the market's next move. >> and canada joining uruguay today as the world's only country to legalize marijuana. we'll speak with the former canadian prime minister about his own move into the pot space.

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we have 23 minutes left until the close. dow now down 113 points.

it was positive about an hour or so ago we've approached the close all four indices are down, the dow the laggard. >> they held the gains pot stocks falling from recent highs as canada becomes the second and largest country to legalize recreational use. up next, we'll break down our first day of sales. >> later, check out shares of winnebago who is rallying today on the earnings report we'll talk to the ceo about the results and how tariffs are impacting the business that's coming up later on "closing bell. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain

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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 with a focus on customized insights. so you and your company are ready for today. pot stocks falling from recent highs as canada becomes the second country to legalize marijuana for recreational use cnn's steve bosa is in newfoundland, canada with more on how day one is going. dee? >> reporter: well, day one has gone pretty smoothly aside from

some supply constraints, but many canadians telling us that this is a proud moment for the company, and many of them are waiting in long lines across the country just to be a part of this history now, this is also a proud day for canadian prime minister justin trudeau who now makes good on his 2015 campaign promise. >> by controlling and regulating the sale of marijuana, we know that we'll make it more difficult for young people to access it. we'll remove the profits from the pockets of criminal organizations. >> reporter: now the aim is that profits will instead go to the canadian government and canadian businesses now, certainly american businesses are watching closely as well because the canadian cannabis industry is expected to be worth $5 billion in just a few years and that's in line with prediction from california, but the global cannabis market is expected to reach $150 billion eventually, so there's some concern among people in the

american industry that canada, with legalization, canada's government and companies are going to get a head start. now, canadian banks are already the main facilitators of dealings in this space, and, of course, the stock exchange list many of the cannabis companies we'll have to wait and see and the losers in all of this some fear could be the american industry guys >> can you get any sense of demand on the first day? >> reporter: you can demand has been huge, and there's been some supply constraints. there's only about 100 licensed retail stores across the country. there were supposed to be many more than that we showed of them. >> we have -- >> we lost the signal. lost dee there i had more questions. >> very interesting. >> not sure if we'll get her become. >> the stocks actually are down today on the sell the news rallied tremendously in the run up to this.

>> been up hugely over the last couple of months oh, well we might get back with dee later in the show and more to come in the second hour with former prime minister mulroney. >> joining the board of the cannabis company, the same one john boehner is on 17 minutes to go before the closing bell stocks have been all over the map today and now they are lower again. the dow is down 1666 points after claiming back from a 319-point deficit. now we're down about a third of a% on the s&p on thes nasdaq as well big decline in crude oil which we'll talk about small caps also down more than ha half a percent >> key levels investors need to be watching right now. >> and tomorrow on the show i'll be talking with goldman sachs' new ceo dave solomon much more today on "closing bell" today as well. don't go anywhere.

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unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. welcome back to "closing bell." we're just a few minutes away from the official ringing of the closing bell i'm standing up here at the podium with today's bell ringer.

welcome to stu shepard, the regional sales director for universal robots, america's division, and with us is the ur5-e, first ever collaborative robot to be ringing the closing bell on the new york stock exchange what's a collaborative robot >> it's speed limited so it can work next to people without any safety guarding. >> so industrial use, is that it in. >> industrial use and a wide have a right of other applications the more we learn the more places we find to put it. >> and this will actually be ringing the bell, not you. >> not me. >> what are some of the latest use cases where we see these roberts actively working >> these robots are used much the same way as others in the past but they are more affordable and easier to use so all types of industries and all economies can use it in the past most people thought the robots and automation were too extensive to be used in small to mid-sized

entrepreneurial companies and private owner companies and now literally anybody can afford to use it and it's safe. >> who is controlling this right now? >> it's running by itself and even if you were to touch it it would stop and have no impact phone? >> do you program it >> actually sensing, sensors in each joint and it's all limited in such a way that it's controlled by an industry acceptance standard for how it can work next to poem. >> we'll be watching come 4:00 p.m. eastern. >> thanks very much. stu shepard from universe a.m. roberts, the first here on the floor of the new york stock exchange as we away the robot ringing the bell. >> thanks very much for that we'll turn our attention now to the telestrator where our next guest has a few key charts to look at. jeff de graaf. first we'll jump into the pullback and the rally we've seen since on the s&p 500.

>> this is a busy chart so i apologize. back in january we got back to the 200-day moving average which is the yellow line here, undercut it most modestly so a little bit more weakness the good news is the number of 20-day lows you can see back here in january, which actually in this case was february, very close to where we are today. that or where we are last week. >> this is the number of stocks that made 20-day lows. >> there's some kind of stress and indiscriminate selling and that tends to mark temporarily some type of low which i think is good news. >> decent bounce back off of that level what if we look at international stocks excluding the u.s.? >> yes my bigger problem with this market, not that the trend is bad, but as you go and look at the longer -- >> the longer term picture of the msci world index that's a top form agent 509-day moving average below the 200-day moving average, so we have a u.s. market in a positive

trend but globally our neighbor mz aren't doing so well so that will put added additional pressure for the u.s. market to maintain its uptrend. >> i know we don't have a chart so don't change yet. is there an emerging-led market? >> it started emerging because of the strength of the dollar. europe looks like it's under pressure most of asia looks like it's under pressure and china even so it's broader than that and that's our concern it's not just specifically the em it's broader in fact, i would say the top formations in europe, continental europe, are some of the most disturbing ones i see in the market today. >> we're finally looking at seasonal factors here, whether or not the pullback that we've seen could have been expected and where we go from there. >> this goes back to 1928, a long time. even if you look historically, this is the beginning of october, usually the beginning of october, the low point. you do rally and do come down to retest and this line represents where we are today, so it

wouldn't be initial. obviously the seasonality will hold itself back a little bit more and not unusual to have a retest the good news is november and december tend to be strong from a seasonal perspective, october shapes itself up like this generally speaking over, you know, it raising, so not terrible unusual hopefully the tailwind what have we get in november and december keeps us fighting, but i have to say there's been some deterioration in the structure of the market and that has us concerned about 2019. >> jeff, great stuff thanks so much for joining us. jeff de graaf of renaissance capital. eight minutes left of trade, and after the breawek 'll be back with the closing countdown don't go anywhere. kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life.

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♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to the "closing bell." let's start with a glimpse at international picture. not much time to talk about that, starting with the italian ten-year yield hopefully we've got a month-long chart. you can see it's up pretty significantly. up to 3.55%. another issue, and it looks like the commission will reject the italian budget so yields are rising and the important thing we're not seeing is contagion across other southern european nations, but we did see safe haven movements, some buying there and yields falling so something to keep an eye on.

not been contagious but something to keep an eye on. another thing to keep an eye on is brexit negotiations doesn't look like any positive headlines have come out of that yet and they are still at dinner there's a pound chart, 131.20, down half 5% and all the u.s. dollar has been more strong broadly. >> near the one-week moves and we have to see what happens on that front as theresa may winds up that summit over the next 24 hours. back to the u.s. s&p 500 intraday chart for you, a bit of a yo-yo session, particularly the last couple of hours, and we've got the intraday chart coming as the for you indices are down for the dow, 0.4%. we saw that for the early part of the afternoon, but the fact that we're sort of flat as we approach the close is better than we we were mid-morning and that's the positive tilt that we can take all four indices and the dow and

laggards, just shy of 1% and the nasdaq down 0.1% let's dive into the sector seema mody joining me in terms of the intraday performance. banks doing well and energy not doing well. >> traders fixated on the move in ibm with today's losses ibm is down more than 11% for the year. tech sector up about 14% and ibm a key leg ard. housing stocks, we saw them sell off after the latest fed motoring minutes we saw several moving to the downside. >> and kenny polcari has joined us as well. >> ello. >> what's your main take away. nice intraday finish but not at lows of the session. >> definitely was. i wasn't surprised by the action after yesterday's explosion to the upside i fully expected the markets are going to continue to thrash around now in between the 200 day and the 100-day until it

finds some stability you'll see that as we get through earnings is. as long as earnings continue to be what they are and they are good and strong and good and the guidance is strong and then the market will ball out until then you'll have the volatility in prices >> and the banks continuing to rally. >> i think the bank rally can continue their stories are very good and with rates going up it's only going to benefit the banks. >> after the bell what are you expecting? >> you know, alcoa is one of those names that you never really know. sometimes they knock it out of park and other times they so disappoint that you're caught way off guard. i haven't paid too much attention to alcoa so i'd be lying if i told you what i was expecting. one of those names you never know how they are going to come out. >> kenny, we'll let you get back to your post thanks so much for coming over to join us go over to the second- or performance today as well because energy suffering towards the bottom and materials also suffering and partly because oil

prices are slipping down around 3.2% as well. >> a lot of discussion here on the trading floor as to whether our margins have peaked. in the only do we have earnings from alcoa, las vegas sands and travelers, an important insurance player to keep an eye on given the two hurricanes that we had florida and the carolinas, and interesting to see how these are holding up. >> another point to make from today's trade dollar got a little bit of an extra boost when we got the fed minutes which if you're really searching for something had a slight hawkish undertone nothing too significant and saw the dollar pick up and an extra ten basis points. >> what do we get with a stronger dollar? eem down another 1% fade even though citigroup came out with a very bullish note on emerging market stocks. >> we'll keep an eye on that and keep an eye on other international markets as well tomorrow, but we're 20 seconds

away from the close. down 90 points on the dow. the s&p essentially flat so we're well off the lows of the session. the dow low was 319 points but we are closing down 82 points and ringing the bell at the big board is robo global sara's new one-handed robot friend that does it for the first hour of "closing bell." sara, back to you. >> first, a robot ringing the closing bell well welcome i'm sara eisen for kelly etches and whiffle frost will be here and here along with mike santoli, cnbc's senior markets commentator. let's see how we're finishing up the day on wall street another volatile session here for the major averages which finished the day largely lower the dow closing out with with a loss of about one-third of 1%, about 89 points and well off session lows from down 319 they rallied all the way back to

the flat line and positive, and then the fed minutes came out and they slid another 100 points the s&p 500 finishing strength thanks to strength in groups like financials and consumer staples offsetting some of the bigger declines we saw in energy, materials and this is the eighth session of declines in the last ten for the s&p 500. the russell 2000 index of small caps got hit the hardest, down almost half a percent. pot stocks plunging today as canada legal use the recreational marijuana we'll talk to a former canadian prime minister about that and why he's getting in on the action coming up winnebago climbing today on strong earnings. we'll talk to the ceo of that company and get a peak inside that winnebago parked outside the new york stock exchange right now. a little bit later on, the stock did well today but tariffs are an issue for this industry let's talk about the market. joining suscnbc -- us is cnbc

contributor steve grasso mike, what were the adjectives you used, jittery? >> when you get a big volatility stock, looking at the dow down 200, 300, you say, yeah, that makes a lot of sense, giving back some of yesterday's 550-point gain and ending up flatter, in the green, yeah, i goat that, in the zone and bouncing back from oversold conditions that's the way the market tend to behave when you're coming off one of these nasty skids i do think you can look and say, yes, the banks held up well, but there were more stocks down than up you did see sort of tech not able to completely get any momentum behind it i don't think today really changed anybody's mind, bull or bear we're in a zone where we can kind of play around a lot. before we get up another 2% in

the s&p 500, that's really stuff bounce and, you know, reacting to earnings. >> steve, small caps suffering still, and they have had a bad couple of days in general. >> yeah. i think the biggest take aye way, mike, was the tech bounce yesterday, so i don't know if anyone changed their mind today, but they definitely changed their mind yesterday with that tech bounce. as long as we hold these gains in the market, as long as we're flat to mike's point, that's an overall win for the ore all market tech has to hold in. that's the key going into year end. if tech can continue to bounce or move sideways, that's a tremendous win as long as we say above the 200-day moving average in the s&p, that's a look that everyone sees to see if we break down. >> markets are staying flat is an overall win just for this week or for the rest of the year >> no, no, no, i'm sorry today after that big move yesterday is a real win for the overall markets because the

netflix sort of owe make view going into it and then extreme bullishness coming out, that's a huge win for the bulls. >> you know, if you look overall at earnings, it's being pointed through the there's a 80% beat rate right now on the earnings front so most companies are beating, but only 50% of them are having positive share price reacted. >> yeah, i mean, the earnings themselves are coming in hot once again seems like the front end of earnings season we actually do start to really overachieve when it comes to the beat rates, but, you know, this has been something that you can observe all year, right? coming into the earnings season the s&p was up a couple of percentage points. earnings up 20%. we anticipated a big gain in earnings, and i do think the market is struggling with -- it's all about in the next three or four quarters is this cycle peaking or not that's really the whole question for the markets. if your answer is no, if this growth continues -- >> we're getting mixed signals, it's hard to tell. >> isms over 60 is not late

quikly. >> if we go through next year and the fed doesn't have to get aggressive to really put on the break, then i think this market is probably a buy. >> i think that's it it's rates and it's tariffs, and they jockey back and forth on investor sentiment polls, which one is more important, and right now i think it's the rates issue has taken center stage, and if we look at rates tightening, if we look at 50 billion unloading, we talked about that, if we look at 50 billion unloading per month now, the fed unwinding their balance sheet and then they have to sell more to cover the tax cuts, it's a trifecta of rates and pressure going on. >> it's also valuations. >> right. >> particularly relative to the rest world, where there's a significant premium here in the u.s. mike, to that point, we always talk about in amazing earnings growth i kind of almost think we're not focus okay on the pact that we're talking about year over year quarter growth and quarter over quarter we're seeing all sorts of stocks

reporting and if that continues for another quarter, the valuations are very stretched. >> they are. they are stretched, especially if yields keep going up. today you have the five-year treasury above 3%. i'm talking about the very long end of 3, and that just means there's a restraint on exactly how high the valuation of stocks is going to go when you're talking about, especially for a lot of sectors that are moderating right now. >> let's talk about the fed because you said rates will be key. today's fed minutes indicating that gradual interest rate increases would be consistent with what we're seeing in the economy, an expansion of activity and a stronger labor market remember saying in the notes there might be a period where the fed even has to go beyond normalization of rates into a more restrictive stance. can you translate that for the equity market, mike? >> it's like clubber lang. pain. >> that would be pain. >> if it was new information today i think the market might have taken it heard, but it more or less reaffirms the message

that chairman powell has been putting out there. i think somewhere investors are seemingly kweepg some ho seemingly keeping some home that they will keep that alive and now they are making their peace, at least for now, having a hike in december and then relatively steady pace next yearch. >> steve, did the rates go up spook investors for a week or two and then they get used to the new levels and they can go up again >> i believe the dramatic velocity that we've seen rates higher has spooked a lot of people and all the things that we talk about you would assume that the investor knows, but it seems like they were really caught offguard with the velocity in which the ten-year in particular has spiked higher, so we see the neutral rate is at 3. it should say that the fed is coming to an end, but we don't get any sign of that end yet, so that's what's spooking the market >> is there a worry?

i forgot who is saying it, but of a potential federal mistake here, that they are on this determined path towards tightening. >> robotic. >> they don't want to be stuck if the economy turns lower at a super low rate and the economy is doing great so they have a green light to keep potentially hiking to what could be a slowdown where you see it in pockets like the housing market or even inflation which is not running too high. >> the fear is always a dogmatic thing which says we want to get to a certain point and we're going to go straight to that point. the other fear for markets is that fed officials have their eye on the markets themselves. they actually don't want the market to get overconfident or really believe they know how this game is going to play out and to make excessive risks with this part of cycle, so, you know, it -- the market is almost afraid of itself because if it gets too excited it's going to bring the fed, at least on a rhetoric basis. >> don't you think if the fed would, to sarah's point, get

back off the way it used to be under yellen, one more data dependant versus this robotic get to that certain point, that would put the market back at ease in my opinion, and when we start to look at the fed saying, okay, we want to get here and at any cost basically. >> i think that's the way that the market is, pressing the fear that's going on. look at powell's words and the committee's words. they are saying we're knowing what we know now >> they have also said map flakes is not on a runaway train though. >> that's right. >> so i think hat that point it gives them a little bit of cover to maybe skip at least one and take a pause, but the whole notion of whether it's trump that's influencing or not has gotten in the back of the brain and i don't know if they can skip at this point because they will feel as if they have already been influenced. >> i think that's a good point. >> let's dive into some stock names, early on the halftime report, lee owen cooperman joined scott wapner and talked

about his tech picks >> i'm going to keep in the family large position of google. 20 times earnings growing 20% and a decent sized position national microsoft which i intend to keep that's expense any of that group, 23 times earnings growing at probably 15%. i have -- just looking down my list here. those would be the two principle ones in technology i have adoep doan to, but i'll probably sell that by the end of the year. >> mike, i'm interested in the way that was sort of framed. i'll keep that in my family office, almost no matter what. do you think there's interesting in some of the big tech names that doesn't change regardless of a 20% pullback? >> absolutely. for as many, you know, like lee cooperman who is preserving long-term wealth and he wants to keep a certain equity allocation, absolutely you're owning a piece of the future the financials in these companies is something like what

a value investors can live with as well as participating with growth running the hedge fund, wouldn't have put his hand quite that way. >> it also shows you there's a lot of paper out there when you get the pretty high selloffs on the back end of rates and the first ones to go down are the tech rates. >> if you need growth and especially where the average hedge fund was up 3% going into october and the average hedge fund lost over 4% in the first week, you have to get growth some place to outperform your benchmarks, so you need to go to the growthy tech names you won't get it anywhere else energy, although it's been okay lately, has done nothing for five years, if you look at it and brought it back from just a bit. >> mike, are we expecting a significant read across from netflix to continue to carry through the other stocks it did late last night after hours get a boost. >> purely on sentiment because there really isn't anything that drives netflix in terms of the fundamentals that really applies tonist other companies to be

honest it's much more about netflix' platform can they dial up growth and dial it down and what you pay for it? will you tolerate the higher valuerations i don't think netflix traded in a way today that was particularly convincing. it really did fade from its highs, but obviously the story remains intact and i think it's actually healthy that f.a.n.g. is kind of fractured up here people are looking at each company on its own >> why did netflix close up 5.3% last night it was up like 13% after hours. >> you had a giveback and a huge markdown before the earnings cycle. there was an 11% options implied movement you overexaggerated in the after hours market just human nature. when you look at netflix, can you picture any other name that's at the bullseye of momentum versus value so i think that's actually a refreshing thing because google, you have privacy issues facebook you have privacy issues. >> right. >> netflix, you don't have any naff. >> what are you paying for this

growth >> exactly. >> it's not a lot of outside influences on that i also think when it came to netflix, the fact that there's subscriber growth on a quarterly basis is jumping around so much does raise some questions about whether they are just kind of doing a lot of promotional activity and signing up people for pre-trials and trying to push that numbers out and then, of course, the abiding concerns about content span which are never going to go away or not for a long time. >> let's talk shares of caesar's entertainment. they soared after sources told cnbc that billionaire tilman fertitta want to make a deal and valuing the casino company at $13 a share. that stock up a little more than 12%. mike >> dramatic corporate story. >> comes out of bankruptcy >> comes out of bankruptcy and in private equity hands for a long time and for the casino business, a lot of valuations have come down they have been hit by a lot of concerns about death and other

stuff, so it's -- it stains me as an opportunistic move. >> macaw is a huge move and china not looking great and with the falling current deand a double whammy for the macaw outlook and sentiment. >> so you get your las vegas sands and then you get your wynn and mgm which is the reverse of the macaw dependency on it, and it alls plays catchup or catchdown and the casino space has been a hard space to navigate for multiple reasons. i would sort of let the smoke clear, but once this trade deal if it ever gets done i think you see them all rip from where they are right now. >> the report said that the interest was that valuing the casino at $13 per share and 14% above tuesday's close. didn't get anywhere near there. >> won't trade up to that. too many contingencies and both whether the company is willing to talk about that and financing and all the standard stuff we don't know about yet.

>> we've got some numbers from al coa. let's have a breakdown kate >> hey there, wilf alcoa reporting a pretty strong q3 with eps coming in at 63 cents adjusted the street was calling for 36 cents adjusted and revenues beating $3.93 billion for the quarter. estimates were looking for $3.13 billion. the company announced a share buyback program up to $200 million, and we should note earlier in the date company announced the closure of two of its plants in spain. they will be laying off 700 workers, two of the least productive plants there. the stock is lower now but it had been up about 1% the corporate call is at 5:00, and we'll bring you more when we get that back to you. >> great, kate thanks for that. flat, a bit of a jump. >> big decline into earnings though, down 23% in the last three months remember when this used to be a bellwether >> it was the belle weather, and

the first one to report and all the rest. >> of course, they have split the company. >> materials, energy suffering today. >> the energy move we saw i think purely crude and the rotation was there, right in the banks picked up a bit of the slack. >> and the dollar was up today. >> the same way that netflix is in the crosshairs of momentum versus value you get these names that are the trade issue that you're worried about. al coa has been plagued by china. trade worries or surplus eds entering into our markets whether they are entering directly in or around the globe. alcoa i think was down 30% or so coming into this print, 32% or so so it's been plagued by the same story now. >> thanks for joining us. >> good to see you here in the second half of the show for a change. stocks falling back into the red at times of today, and our next guest explains why history says the recent market selloff

is probably not over >> plus, the recreational use of marijuana now legal in canada. we'll look at the big winners and losers on both ses othidf e border later on "closing bell.

dow finishing lower by about 91 points after another volatile session on wall street the blue chip intention has been all over the map since last week's selloff with big drops on wednesday and thursday followed by yesterday's very strong rally. >> joining us now to discuss where we could be heading next is sam stovall and thanks for joining us sam, let's start with you in terms of perspective on hue likely this little rebound we've had recently is going to endure or whether we were due a big pullback looking through the past year. >> well, actually we fell into a pullback 6.9% decline since september 20th, and what's interesting is that it's now the 26th year in which we've had two such declines meaning 5% or more within the same calendar year. so the premise being that maybe we didn't really reset the dials enough when we first had the

decline earlier this year so looking at all of those 26 years, what i found was that almost 70% of the time the second decline was deeper than the initial decline, so obviously not a guarantee that it's going to be keeper this time than it was back in january and february, but it does pretty much indicate that, you know, maybe we have further to go. >> what sort of time frame does decline include? so this is as of the recent highs or could we sort of rally back up and take a month before we get there >> well, typically pullbacks, 5% to 10% declines and we've had 56 of them by my count since world war ii take about one month to go peak to trough and one month to get back to break each corrections, 22 of them. they take five months to go peak to trough and only four months to get back to break even. usually the recovery time is very quirks and that's why investors sort of feel that they miss out if they end up selling and then getting back in higher than where they got out.

>> how do you interpret that, phil, as to what you're telling your clients >> i wouldn't disagree, but very soon there's an opportunity to make quite a bit of money in excan i? why. this is unusual. with this year having this election cycle facing us, another week or two of this, we get through november 4th and november 5th, the rhetoric around the election psych. on the other side a really robust consumer strong earnings cycle. an opportunity to buy stocks cheaper and then really enjoy that santa claus rally into the end of the year. >> regardless of the results of the mid-terms? >> yeah, i think the market prefer that the house and senate be combined either party but just wants the elections over w.look at the rate of return, back to the 40s, averaging 12% and with a stimulus this time to boost it even higher, i think the numbers could be even stronger >> implicit in the what you're saying is fitting with that wall street wisdom that some kind of eventual retest of the lows after such a sharp drop is what

we're likely to get. what's the likelihood that we can somehow avoid that i mean, just precedent-wise because i think today was into that air pocket from last week and we have to look over to see if that buying was real. >> i agree with phil that the history says in the 12 months after a mid-term election that the market has gone up 18 of 18 times, but technicians that i have spoken with basically say, look, are you easily -- more easily knocked off your feet when your feet are together or when they are spread part so usually you get enough distance between the actual decline and then the subsequent retest and then that retest ends up being stronger and more conviction, but doesn't say it could not be a narrow retest that we've already seen. >> what have you seen in terms of the mid-term results. this is an interesting conversation feels like the market is pricing in the democrats taking it the house and republicans maintaining control of the senate doesn't seem particularly

worried about that gridlock, is that right >> right now it does not typically what we find is that the average gain from october to october is about 12% if the house changes hands but about 19% plus if the majority stays. >> what if both changes hard, is that market negative >> never been negative what we've seen whenever we've had majority changes is several single digit price appreciation in that 12-month period but all have been positive. >> phil, the positivity you expect after the mid terms, is that just for u.s. equities or international equities as well. >> definitely the united states. lots of concerns globally. the italian situation doesn't seem to rectify itself look at the valuations we're expensive compared to them being inexpensive but just too much noise and costs of commodities have gone higher and dollar strengthening today and this is an opportunity to buy the united states and focus probably into the mid and small range and get a greater breadth and a muney opportunity for the

next month. >> when we're talking about the economy or the equity markets, it can't continue forever. so if you're so pessimistic internationally, will that weigh on sentiment or drag down valuations >> i think the opportunity is the next three months. have to see where the fed ends up in january here i would agree with you that this opportunity and this equity market is not for the next 18 or 24 months. i think by mid next year the global slowdown slowly washes up on our showers and by next year we're looking into that. >> the fed will be okay with that >> putting a lot of debt on the balance sheet and raise rates at the same time and that ends up colliding into each other and maybe they say we stop after two or three depending on where we are in the cycle. >> thanks so much. >> got through a lot there fed, mid terms, history. up next, we'll explain why this chart could give a big clue to investors about would the market

will be able to real back from the recent skeloff. >> that's a telestrator there. >> will look a lot better. >> one of my favorite segments, mike. plus, win payingo did, i meant that very sincerely. winnebago and steel and aluminum tariffs. winnebago, there it is outside, and sarra will be going inside it and talking to a robot today. th'sreat ptty small. we're back in a couple of minutes.

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protect sensitive data from millions of kinds of malware, with a cloud that's secure to the core. the ibm cloud. the cloud for smarter business. stocks rallying back from early session losses but still finishing the day lower. >> mike santoli at the telestrator with a look at one chart that could indicate where we're going next mike >> yeah, sara. this is the equal weighted s&p 500. the etf that reflects that index, so this is what all 500 stocks are weighted exactly the same very democratic index, so it shows roughly the experience of the average stock, the typical stock within the s&p 500 compared to the overall index which, of course, is weighted bill market value. and so obviously it's been very weak it's underperformed the overall s&p by four percentage points this week. it's negative on the year, so this was the january and

february declines and you saw when we lifted it out of that the average stock really did do well and started to gain crowned against the overall index suggesting it was a very broad recovery and the stock was fully participating in the rebound here as the overall market continued to grind higher into the highs in september, the average stock was lagging the s&p. narrow market. a lot of people complained about, smaller stocks lagging bigger stocks. only certain sectors that seemed to be carrying the weight is and then you have us go down here in the recent selloff of the last couple of weeks and it's further underperformed so you've had no shelter in owning some of the smaller stocks the question is can we have something else like we did in the spring when we do have a rally that's broad-based and has the typical name go ahead. >> in the spring in the rally back, that was because we did get a bit of a rotation. >> got a rotation for sure and you also had a relatively broad base it wasn't just one or two

sectors dragging the rest index up it really was, you know, essentially smaller stocks did well into june people took shelter and the lower half of the s&p 500 is on the smaller size of things because they wanted more domestic plays and wanted to be protected from the tariffs here. >> what this indicates it's a very good predictor of what had the market will have a downturn which is when the market is rallying, but most stocks are not participating. >> well, that's exactly what a lot of people were saying right in here, right >> during the late summer, everyone was like, yeah, sure, the market is clicking towards new highs. got further to new highs in september, but it didn't seem like it was fully reflected. even had more stocks making 52-week lows than highs even when the market itself was showing new records at the index level. >> got messy there by the end. >> let's take a look at how we finish the day on wall street. the dow down by 0.4 and 0.5%,

just less than 0.4%, s&p just fractionally negative as was the nasdaq and the russell down 0.45% and the key message that we're well off the low for the day. time now for a cnbc news update with sue herera. hey, sue. >> hello, wilf, hello, everyone. president trump ordering his cabinet to find major spending cuts in their departments. the belt tightening comes after a recent treasury department report showed a 17% rise in the annual federal budget. >> i would like you all to come back with a 5% cut, and i think if you can do more than, that we will be very happy there are some people sitting at the table, some people that can really do substantially more than that. >> nearly 100 people have become ill from salmonella linked to raw chick ebb.

the cdc says the outbreak has been reported in 29 states the agency is urging consumers to cook chicken thoroughly and wash your hands before and after you handle food. "consumer reports" issuing a warning for parents saying parts broke on four popular children's car seats during recent crash tests. the four seats are the britax pioneer and dinali and the harmony defender 360 so check those if you think you have one in your car. that's the update. guys, send it back down to you. >> those are popular car sgleets wish they made them extra big. >> that's all about safety no. joke that warning that sue just gave breaking news right now. contellation brands, kate rogers with the story. >> reporter: the owner of corona and a big player in the marijuana space is announcing a newpresident -- new ceo. the current president will take

over as ceo on march 1st rob sands will remain with the company as executive chairman. under sands' leadership over the past 11 years the stock is up nearly 1,000% and constellation brands has made a big bet in the marijuana space in cap by growth the stock is just fractionally lower on the news. >> that's surprising is it surprising rob sands has been, i mean, share herald returning the move into mexican beer importing corona and the bold move, the bold move into the marijuana industry. >> definitely sanctioned the strategy all the way around. i don't think it was one of the succession situations that people thought, you know, was getting close, though it seems like a handoff internally to the president is probably something that the street will want to see. >> down half a percent after hours, but we'll cover a bit of that initial dip.

canadian cannabis stocks falling despite that country's legalization of recreational mayor wan a. up next, we'll break down winners and losers of the law change and speak to the former canadian prime minister brian mulroney. >> plus, tall takes is $2 and a dream. the meg ark millions jackpot soaring to $900 million. we'll look at how that ranks among the biggest lotteries ever, and, ocosef ur, we'll tell you your odds of wing. that's later on the "closing bell." goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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pot stocks sinking today after canada's legalization of recreational marijuana. >> joining us now to discuss, our former canadian prime minister and incoming acreage holdings ceo brian mulroney. >> thanks for joining us. >> thank you >> let me start in terms of what you see is the political reaction to this domestically in canada is it universal support for the move as something seen as very progressive, or is there a split opinion on it? >> well, i think it's a strong social advance by the government of canada and widely recognized as such. across canada, of course, you

have differing opinions on it, but i think that the overwhelming majority will sort out in favor of what the government of canada has done. it's got a lot to commend, it a lot of benefits, potential benefits for canadians and citizens around the world, and so i think that the leadership position that was talked out in this important area by the government of canada is a good one. >> ketch, talk to us about your strategy of recruiting politicians. you've got the former prime minister and speaker boehner what are you hoping that they are going to help you with >> well, it's as much about the politicians as it is about the people, and when it's prime minister mulroney which we're actually thrilled to have a part of our organization, the prime minister has been a world leader, but he's also been a

businessman, an it's the combination of that skill set that we believe will benefit us greatly. speaker boehner has represented the people of the united states, governor weld has been a law enforcement agent before being the governor of massachusetts, so each person on our board brings us a different perspective and candidly it is a real sim boytic relationship amongst the group. >> mr. mulroney, what's your take in terms of how likely it is that other countries will follow suit? i guess it's taken a long time to get to two countries, uruguay and canada will the floodgates open now that canada has legalized recreational use in. >> i don't know if the floodgates will open, but canada is i think an admired and respected country with

membership in the g-7, leading country in the commonwealth, the francophonie and the oes and the united nations with a great set of credentials, but i think it's admired around the world and respected as such, and so while this is not a guarantee of anything nor is canada seeking to influence anyone, but generally what happens is its social advances occur when one country steps forward and does something and the others tend to analyze it and check it out and see if it's a value to their citizens, and if so, they tend to adopt it. that's what happened, for example, many years ago with same-sex marriage as an important social initiative that would have about difficult to conceive of 25 or 30 years ago but today is widely, if not unilersly accepted, and so i think that given the importance of what this change can do,

particularly in the area of medical cannabis, and the great benefits that this can bring to families in sorrow these days and with great difficulties, i think this is going to be widely admired and probably followedy >> >> kevin, give us a sense of where this industry is headed. we have a gold rush mentality around it, an instant reeach markets and stuff like that. is that going to be viewed as as industry like agriculture and biotech, like pharmaceuticals? it's just hard to see how it's all going shake out and really what the return possibilities are over the longer term. >> well, the excitement is it's really all of the above. it is agriculture. it is consumer products. it's also medical, and it's also wellness, and -- and various

reports whether it's 100 to a $200 billion industry, so many people can benefit, particularly on the medical side of the business, and we salute admire canada for being a leader, and we hope that some day soon the u.s. will follow suit. we have 23 million veterans in this country that are in need of this miracle plant as a substitute or at least an option for the opiate crisis, and when is 15 people die every day in our country due to opiate overdose, this can be a meaningful solve, and we, again, salute the fda for fda approval to a british company with a

cannabis-deprived drug and hope that the u.s. has been a leader in so many different aspects that they can now follow suit along with canada and take a leadership role in this business. >> mr. mulroney, a quick canada trade question if i may. do you commend or criticize prime minister trudeau for agreeing to the renegotiated terms around the u.s. mca and what do you make of u.s./canada relations at the moment? has long lasting damage been done throughout the proses >> no, i don't think it's long lasting. i think that the canada and the u.s. came through a somewhat difficult patch, but that sometimes occurs in negotiations, tough negotiations look, wilf, this is a $1.2 trillion a year deal, the largest in world history between three friendly countries there are bound to be difficulties, particularly in as much as it had not been refurbished or renewed or

modernized in 25 years, so obviously there were challenges, but i think that prime minister trudeau and president trump will continue to get along very well in the trfs our two gre-- inters of our two great nations. >> i asked mr. boehner did you take up the marijuana now that it's legal in your country? >> the answer would be no. >> wilfred, now we say good-bye to you so you can catch your flight so you can interview david solomon in santa barbara. >> looking forward to it, the new ceo of goldman sachs, and his first proper one-on-one, his views on leadership and strategies to sort of turn around trading and what he thinks about goldman sachs being

a lender long term is that his strategy or lloyd blankfein's strategy we'll discuss all of that tomorrow on "closing bell" >> looking forward to it that's going to be huge. 3:00 p.m. tomorrow up next, the late details on the mega millions frenzy with the new jackpot hitting $900 million, and winnebago is soaring today on better than expected earnings, but shares are down nearly 40% so far this year we'll talk to the ceo, but we'll go out into the winnebago parked outside the new york stock exchange to do that coming right up up so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose communications. without communications, we have nothing-- people get hurt. when disaster strikes, that is when your communication service

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the mega millions jack spot creeping on the billion dollar mark cnbc's frank holland is in new jersey today with the details. hi, frank. >> reporter: good afternoon, sara any one of us could be a billionaire. we just have to pick the right six numbers. the powerball, that's tonight. that's $345 million. kind of chump change compared to the mega million that drawing is on friday. the jackpot is at 900 million and by then it could be up to $1 billion. if you're thinking to yourself these jackpots are getting bigger and bigger and you're right but there's a catch. doesn't matter if you use one of the computers to pick your numbers randomly, that's a quick pick or use your family member's birthdays, your odds of winning are smaller now than a few years ago because the powerball and mega millions changed their formulas to enties more people

to play and also to increase the jackpots the downside is you have less of a chance of winning one of the big jackpots the other side is you have a better chance of winning a small jackpot, a couple bucks. but people we talked to here are here you obviously you want to give yourself a chance maybe multiple chances depending how much money you got in the pocket. >> that gives me a dollar chance to win just like the next guy. i try to tell people someone is going to win why not me. >> random. just random numbers. >> and the biggest jackpot and lottery history is $1.59 billion. the lot lottery officials say the best chance iss of win something playing the random quick pick any say 90% of the people here do that. if you want the best chance they say go random. back to you. >> i'll take it. i never go random. you always have to choose the

numbers. thank you. one in 302 million not bad. you are looking at the inside of the latest winnebago model, the refle, we will talk to the ceo about it, find out who the buyers are, next on the "closing bell." let's begin. yes or no? do you want the same tools 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 of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

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ceo michael happy. nice to see you. do you think that's why the stock is under so much pressure because of the rising costs of steel and aluminum. >> i certainly think that's one factor but we are an industry with tremendous growth the last eight or nine years and we have been transitioning to a moderate growth level in the single digit and seen elevated dealer inventory levels the combination of those factors have combined for some of the market pressure. >> what about the demand side, michael? it seems that consumer confidence at high levels it would be a perfect time for big ticket purchases like this. >> we continue to see healthy demand within the rv hieflts people are flocking outside. they want to be active they want to be healthy. and there are tremendous options whether you want to spend $15,000 or half a million dollars to get into the rv liechlts and be active outdoors.

the lifestyle remains popular and we think retrail trends in the future will be steady. >> what about higher rates has that impacted the demand or the financing costs of buying one of these >> that is something we are watching carefully obviously the fed and interest rate hikes are something that we'll maren. we'll monitor fuel prices, monitor the volatility of the stock market and consumer confidence and those are things that we want to keep an eye on because combined with elevated pressures due to material cost increases that could put some weight on this sector. but the reality is that we're being able to manage through those pretty well in our fourth quarter earnings were reflective of that with decent margin performance for winnebago >> michael, we are out in front of the smaller format rv. >> wilfred couldn't fit. >> what's the idea behind this small are format as opposed to the big quasi homes we are used to talking about >> what you guys are looking at

is called the winnebago revel, a class b mercedes sprint are chassis van with a 4 x 4 off road component to it really that's a vehicle designed specifically for the outdoor enthusiast and it's one of the products that we're moving that is really intended to bring the rv element into the mainstream. what you see with this product are 35 to 55-year-old very active outdoor explorers that want to get off road and close to the activity they want to partake in, whether biking, hiking, kayaking, skiing it's a great ewe till tanner product that allows them to get closer to the outdoor action. >> only for $149,000 michael we have to leave it there. thank you for joining us to talk about the quarter and this rv that we have here on the outside of the stock exchange. michael happy. >> yeah. >> ceo of winnebago. you group in rvs.

>> not new they were used we did. but honking one that is were terrible on gas. you are more of a tent person. >> i'm not an outdoor enthusiast but the industry has been doing so well in the recovery up until this year where it has fallen off. >> and it seems like a millennial thing that's what they tell me. >> millennials and rvs that does it for us on "closing bell." toss it over to "fast money" starting now. "fast money" starts right now. riff from the nasdaq market site overlooking new york city times square the trader on the desk with us and tonight on fast, ktd going wind wild for cannabis the lines are long as gathers around for the first part in the century to get high on marijuana. but the stocks are plunging is this a sell the news event we tell you what pot ceos were saying today plus what happened to the net flex ral