congress is debating whether or not to make individual tax cuts available that were included in the current law. >> thanks. >> yeah. our expert in d.c. >> going into the close watch financials, session lows right now as stocks are trying to come off of those lows. >> thanks for joining us >> closing bell is next. it's time for the closing bell another volatile day on wall street on this, the start of the busiest week we'll break down what to expect there. plus seeing the biggest one day in years top analyst says it looks like a mine field we'll tell us what's behind that warning. shake up in the sea sweet at kimberly clark sending that stock sharply low are today. we'll discuss whether it can reverse her double digit decline

so far this year facebook looking to do damage control we'll talk to the reporter who broke the story that facebook is looking to buy a cyber security firm the closing bell starts right now. >> good afternoon. we have a check in on the market action it is from a triple digit gain to triple digit loss it is currently off the lows of the session but still it is down 52 points. >> it was up 117 points. the nasdaq is up half a per tcet we head into the final hour here it is a big week for earnings. it can fuel a rally.

>> we are getting good numbers about 20% has reported earnings so far this week it will shift to technology companies now, the number one theme for earnings right now is margin pressure particularly for industrials and includes higher labor costs, tariffs, foreign currency, weakness the impact of higher rates are also a major theme in earnings calls. a new issue immerged, the isolation of saudi arabia since the company is a major investor. tech is expected to be one of the leading drivers of earnings. growth of 20% compare today a same area a year ago the problem right now is the market is a forward looking ameri mechanism. earnings growth is about 9% is

the current estimate for growth versus 2018 due largely to the tax impact waning. revenue growth estimates still are well above the recent normal of 3 to 5% growth. the question here is will it be enough to keep the markets moving that's what is being debated right now. back to you. >> we will find out this week. thank you. joining our closing bell, steve is here. tony is here jack is here and cofounder goorc good afternoon to you. i think of you as the biggest bull on wall street. you have been very positive the whole way up how are you feeling about it right now? >> i think this correction and we highlighted it on september 17th we did it on fast. you know, the market was right

for a correction i think this correction has a lot more to do with excessive optimism you had more than 60%. you had a historically overbought condition so from a standpoint it was a market that was set up looking for a reason to sell while a lot of folks are blaming the immerging markets i did a little bit of research i wanted to get it right it is really kind of highlighting it. they are like really it was up that much? to the peak in january of this year were up 86% you're down -- you were up 16% just in the last month of the rally going into the january peak now we are down 25% of that. in january everybody was -- it was rolling off of their tungs now i think it's -- we think

it's definitely getting overdone you have spiked the volatility and the extreme overbought condition is being relieved. the process is difficult and very painful it feels painful right now >> that was the january pull back we are right in the midst of another one. somehow this one relative to the most recent ones in terms of where we are >> so i think the market has told us that the 200 day moving average is most important level to watch that's the one to be cognizant of you're running out of daylight there will be a catch up in performance. the problem is when does it happen >> it feels to me like funds are sitting on their hands waiting to see whether it is real or

not. sit a move higher in rates where china trade could be resolved in a month. >> who knows about that? jack, maybe you could bring international elements in into play here. you this huge balance overnight. concerns though still about trade and saudi arabia and italy, how does it impact the bond market which sounds like it will give cues to the equity market >> if he were sitting right here there is one market to pay attention to and that is the dollar index it is taking out 96. it is basically the entire immerging market's trade it is every time you see the dollar go higher it is something that we'll have to deal with for the rest of the year because of it remember, you're bringing home a

trillion and a half dollars. they are not dollars that are sitting abroad they are sitting in other currencies they are for the purpose of the corporation. the swap activity has put upside pressure on the u.s. dow it will continue for the rest of the year it will hurt immerging markets and it is also going to put into question whether the feds will be able to move four times next year all of that is why we are having the price delocation and volatility it is something that will have to play out and decide >> are you concerned about the situation in europe whether it is italy or brexit terms or is it really the china story that's a concern internationally is this. >> well, i think it was all of these things that when we came into september and the trade and tariff kind of kick started all of that you have the italian yields to blow out i think it's seriously important

that ifyou guys think in your careers and all of viewers think of their careers the only time you wanted to get defensive on weakness that already presented itself is when you an eminent recession in site. the market correlates most cloegs closely with direction of earnings you can change earnings that creates an environment where those things can lead to a correction, 1998, earlier 2011/2012. i have never come on and said we can't have a correction. my point is what do you do with it corrections are always considered natural, normal and healthy until you get one. we are famous for talking about it and we get it and they all run away >> yeah. >> but when you look at rates though isn't there a fear that the fed can be this robotic

movement moving forward? i know that it's become less critical of the fed in the financial markets but the truth is the fed can end this rally. can it not >> yeah. when we look at rates if people like me come on tv or you or me come on tv and say the level of rate that will do it, we are making it up you can never tell which level it is going to be. it was going to be the first rate hike. it was going on all of those things ultimately it comes down to the environmental credit it already started in the yield curve. pay attention to the two to ten year spread that is durnd -- >> all right let's -- let me answer that really quickly let's say the yield curve

inverts in the next 25 15 minuts so i agree with you. you can have a correction. it's whether you buy it orsell it >> quick final word, jack. >> he is absolutely right whether he can see it or not it would take a full 10% that is probably a good place to get in the question is what is going to happen for 2019? if the fed is going to be aggress ifr it will stop any growth more than likely we won't see appreciation of 5 or 6% in stocks with the dollar going up it will be difficult for the feds to do what they want to do and that is what is going to be playing out and decide whether we'll see a big year next year >> thanks very much.

president trump continues to make his case for weapon sales as questions and controversy kwirls around the death of washington post journalist we are taking a look at what it means for the defense industry >> that is the big question. said udi arabia is the biggest importer of weapons in the world. it includes $110 billion worth of orsd, there has been question marks about how big it is. lock heed martin and bae systems which is british but has a big operations here state wide some have been held up because of involvement with critics including lawmakers from both sides of the aisle calling this latest incident a tipping point. we'll see. for now analysts not terribly concerned since according to

saudi accounts for about 5% of sales at the u.s. defense companies. as they pointed out earlier today these tend to be high margin they are sales that help support jobs here in the u.s. and they do help keep production costs in check. shares have been hit over the past month you can take a look at that chart right there. while none have commented so far on this dwe do get earnings for the group. the way i would think about this at least in the near term, this is one more uncertainty for a group that's been called richly valued it has been swept up in this broader industrial selloff especially as we get two weeks out. >> interesting, the u.k. down to most of those. the president has always said this would hurt the u.s. more

than it would hurt the saudis. how quickly could they quick their attention? is it a reasonable replacement to do or are they kind of tied to the existing suppliers? >> i think there's always a risk of that. we have seen it play out with some of our other allies turkey comes to mind with not only have there been controversies but also around the fact that they decided to buy russian made missile defense system so there's always that worry and concern. you would rather see it coming into the u.s they are tied. what i mean by that is just like you see with any sort of manufacturer it is all about the scale. the more orders you have the more aircraft you have that are going on in production line the more you, the more jobs that are supported and the more you can help keep costs in check it does have a direct impact in terms of the prices we are

paying on some of weapon systems here including some of the newly won competitions boeing comes to mind for example. they are selling f15 fighters to the saudis there are implications in terms of it translating back here for things like the tx trainer. >> thanks very much. still to come the sit to boost china's exist. a top analyst says it looks like a mine field he'll tell us why next later facebook's reputation is taking a major hit. those breaches pile up they looking to buy a cyber security firm to gain back users trust. we'll discuss which names facebook could be eyes

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welcome back there is the dow sit down a quarter of 1% the spread of the day has been up over 100 or down more than 200. we are some what in the middle of that range as we approach the close. it is 0.2% for the s&p shanghai poeed the best day since march 2016 it is still down over 20% year to date. it comes as chinese president saying that supporting the development of private enter surprise is the policy consistent it is over the growth of china's economy. is it investable joining us is charles who says the near term picture looks like a mine field thanks for joining us.

i guess in the short term are the tariffs likely to criticize some of the cracks in the chinese economy? >> they certainly could. the question is are the tariffs sort of a short term blip or is it part of a longer term strategic shift by the west? president trump is often out in the weeds his thinking here is not as off based relative to other western leaders as a lot of people might think. there is the perception 30 years ago was if we give preferential trade terms to china that will spur the economy which will in turn spur the development of the democracy and a more prowestern stance it hasn't actually happened. you're seeing a shift in western

thinking as to whether it makes sense to give preferential trade access >> but one question investors have to be asking they have unwaiver support they have a plunge protection team to make sure the stock market doesn't fall too hard they are working on try to go paper over some of the problems. should investors have some sort of psychological comfort that they are on top of it in a big way? >> well, you have to ask yourself the question, do you want to invest in a market where the government feels like they have to get on tv to make people feel confident that to me the a sign of desperation. when you look at the numbers, now, of course economic numbers are unreliable you need economic growth at

about 6.5% in order to actually increase employment? we are at that level now it is going to wrong direction >> i guess i would answer that -- sorry to cut you off we have seen that during the height of the financial crisis when he came out and said he will do whatever it takes. that's what leaders do to try to calm fears i don't think it's unique to china. >> it's notunique to china, of course not when you see it with any market you do have to look at clues before it really becomes reflected in the published data. when you see angry mobs protesting falling property prices that's very problematic they have a big thoil climb when you have homeowners. it shows a big lack of confidence in the short term i think it gets really murky.

the biggest up days tend to be during markets that's every stock market. the bigger down days tend to happen when stocks are in correction is today's move just one of those big up days in a broader correction we'll see. i wouldn't put too much faith in one day's price action >> thank you for weighing in >> be sure to tune in tomorrow kyle bass will talk trade tensions with china. that interview 10:00 a.m he has been betting against the chinese kurn sichlt it finally paid off this year >> yes it is down well over 20% >> kimberly clark down double dik di digits this year plus on the move today following new data from a kans meyoncsearch conferee. nas u need to watch ahead on the closing bell with chantix.oking

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welcome back to the closing bell s&p down 35 minutes left on trade let's focus on individual market movers there we go. reporting an earnings despite seeing a slowdown in north american sales

management said it will due to steel and aluminum tariffs it is gaining 3.7% it was down earlier in trade it has been down wechb today's move it is very much reaffirmation. >> they will also try to appeal the tariffs. i think people were hopeful. maybe they have a competitive edge but the president is sort of in a fight with their competitor >> exactly the stock is falling in today's session despite an earnings in revenue it is naming president and coo. the it has been the ceo since 2002 that's a long time he has been number two he is a long time veteran that used to work at craft foods but has a new energy

it is something that this company needs. the truth is proctor and gamble implementing a lengthy turn around plan. it has taken a lot of pain shedding plans, employees, streamlining decision making and products we saw the fruit of that last friday when p and g reported and jufrpd jumped 8%. we have a higher commodity cost. there's a number of challenges for him to take on >> both down year to date though >> it has been sluggish here for consumer and higher rates makes them less appealing. still ahead, a new report from the information that says facebook is looking to do reputational damage control by a cyber security firm. we'll speak with the report that ha had that story next.

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the ibm cloud. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

welcome back consumer discretionary and helps explain why the nasdaq is positive the russell also going slightly positive it feels like this market wants to go up it is still down a quarter of a percent. zb. >> does it feel that way >> look at the banks today though >> yeah. >> rates are lower >> jazz the nasdaq as well we lost that pretty quickly. time far cnbc news update. hi >> hello here is what's happening at this hour everyone. the united states wants full details on the killing of saudi journalist and is in talks with authorities on that matter that is according to john

bolton richard branson stepping down as chairman of hyper a lot of 1 telling h telling them they need a more hands on share it is reporting that saudi arabia ended a planned deal after branson halted investment talks with the kingdom sandra day o' connor is experiencing memory issues she has been retired from the court since 2006 a racist rant has gone viral. it shows a passenger making remarks about the skin color of an elderly black woman the airline under fire for fail to go kick the unruly passenger off of that flight [ bleep ]. >> that is the news update >> it is all over the british news yesterday

>> i know. it is terrible guys, i'll send it back to you >> goldman sachs announcing it is experiencing consumer digital finance. >> they have already been offering deposit and savings accounts the new move is to go to investment management as well. it is the platform and only if you had a certain amount of wealth they will move more broadly on all levels. >> we are very very kplit today continuing to diversify funding that way we want to build a digital store front. we bring a variety of products

and services the customers completely digital that's where the world is going. we have the advantage of being able to build it from scratch. i think you see these businesses would grow they would become more meaningful and we'll offer a range of products and services to individual customers. >> i guess i'm wondering whether wall street is impressed with this we are down more than 12%. >> yeah. so i think the interesting thing is hearing how committed he was to all aspects the street is not paid up for this yet spending capitol is in the short term just hearing david and the team whether it was on that interview talk about how committed they were and they wouldn't speak to any of this unless they were confident it would boost in due course it is not boosting it yet. they are worried about why they are lending when we are starting to see a slow down in loan

growth no risk attached to that i think they can finesse it. they certainly are confident it will boost returns in due course i think the market is paying up for that there let's get to another executive departure. tweeting out today six years after we launched i'm moving onto the next chapter. the departure follows a trend of exits among the foundersov of companies that they have announced. they resigned and back in april the cofounder said he was leaving the company just one year after his cofounder also departed the cofounder stepped down back in 2017. it's a notable trend given some of the problems facebook is dealing with right now

the company might argue this always happens with founders they stay on and make sure it goes smoothly and they get a lot of start up. >> and i think with all of these people they have lasted quite a long time. it is interesting that they hired a new head of communications last week former u.k. -- >> yes >> it grabbed so many headlines in the u.k. adds wes well it is like crossing the aisle. he will argue that he will be able to make sure they stay ton right track moving forward >> they will have to fight on a global scale >> and it is in the government but also before that he was a member of european and commissioner for trade he was well connected on that side so we'll have to see how all of that goes. on the topic of facebook the information is reporting the company has approached several cyber security firms

this is facebook continues to face scrutiny over how it handles user data. >> we have one of the riders behind the story thanks for joining us. so your overall take on this is that it is in part them trying to do it for pr reasons as opposed to wanting to boost cyber security capabilities. >> yeah. i mean i think there's a couple of different reasons facebook would look to that there is the technical piece they can boost, you know, some of these capabilities where they are missing or they add talent when they are trying to hire in a very competitive field there is also an element

you get no data breach if you make it you are kind of taking a stand here and saying we are investing big and we have a commitment to this i think that's definitely part of it. >> which names are they looking at what does it tell us about what n they want? >> it is echoed from the people we talk to and people they approached it looks like there are some thoughts about analytics and things for like digital risk management, account security, categories like that are very interest to go facebook. you know, just from an outsider and the cyber security industry, those would make a lot of sense for a company like facebook. >> when we think of the big issue on the pr front they have been facing it has been one of data pr data privacy it is not something cyber security could help with is it

>> yeah. i think there are two issues that often overlap they both come down to protecting the data and make sure sthey have access to it whether it is hackers or a developer that might be misusing it they overlap. if you can acquire technology i think it kind of helps improve the overall posture of the company. >> is there a sense that i mean facebook needs to have a new cyber security capability to prevent the kind of hacks that we saw this year or is it -- to the earlier point, purely acquisition. >> yeah. they made some in not recent years. they acquired a company which is cyber security technology. i think far company like facebook that builds a lot of its own technology internally, you know, speed of of the esz

enrige -- essence right now. >> it is the public relations boost. we are investing big and making a stand and acquiring this company. >> thanks very much for joining us next hour we'll have more on cyber security it is making sure it is safe from foreign meddling. you don't want to miss that. we have 20 minutes left before the close. markets are lower. the dow and s&p are down a third of 1%. nasdaq holding onto half a percent of gains 149 companies due to report. we'll preview the big reporters and which stand to gain the most

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welcome back we have 16 minutes left of trade. shares of hasbro falling it is the wake of the liquidation. it is down 2.5%. tonight jim cramer will talk about the results. that's 6:00 p.m. eastern time. we are minutes away from the closing bell we have a special guest with us. it is the winner of the discovery education young scientist challenge at just 13

years old. he developed an algorithm. he will be ringing the closing bell he is joining us congratulations. can you explain what you did to win this competition >> i created an artificial intelligence based tool to include pancreatic treatments today. it works to make the current radio therapy more effective >> i have to say, there's no doubt we would not be any where near able to do something like this but how do you get into. >> -- not something that kids are usually exposed to which i

think needs to sort of like -- more kids need to get involved in >> what you have done, i'm just reading background it is to reduce evasiveness. it is one of the worst and hardest to treat cancers is this something that is going to be put into practice? >> yes it is part of my future work to develop my tool further and bring it in line to hospitals for guided radio therapy machines what it can do is instead of manual doctors having to do that it can do it in realtime using an artificial based. >> congratulations on winning. you win $25,000. do you know what you're planning to do with that? >> i decided to split it in three main areas

i want today develop my tool and bring it to the next level the second would be to set some aside for college. i'm planning to go to medical school to become a doctor. it could be one of the things there. >> i have a feeling you'll get in >> and what's the third bucket >> the third is to put some money, i'm creating a nonprofit. so i believe that like all children of any ages should be exposed and i want to help make that a reality today >> how did you get interested in pancreatic cancer? >> last summer i went to visit my brother in boston i came to learn about research i learned about the survival rate and other surprising statistics it was intriguing to me this had not had much work done on it already. i wanted to change that. i was working on programming, artificial intelligence so i combined those two areas >> outstanding stuff

we have a lot of special guests but none more so than you. >> you haven't even gone to high school yet >> you should carve out at least $500 to pend spend on yourself. >> yes >> congratulations we look forward to you ringing the bell in 13 minutes time. as we approach that close we have losses. new cancer data having a big 'll ct on stocks webreak it down when the closing bell comes right back. (bicycle bell sound) ♪ ♪ (bicycle bell sound) ♪ ♪ (bicycle bell sound) ♪ ♪ explore more with a guaranteed 4pm checkout at over 1,000 fine hotels and resorts. it's another way we've got your back. ♪ ♪ the platinum card from american express. don't live life without it.

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welcome back to the closing bell nasdaq is a rare bright spot up about half a percent after three down weeks the dow is down a third as well. biggest loser is in the dow right now include goldman sachs, american express you little mix there of financials and little industrials. >> a european cancer research. we have all of the details that we need to know.

over to you. >> the medical community for the conference as the european society for medical oncology they have been largely negative. all eyes have been on bristol myers and its race with merck. bristol stock has been selling off as concerns it is losing further grounds to merck their declined results for their cancer drugs loxo has been try to ing to han onto positive territory. it gained more than 90% this year it is first expected to be approved within the next month

>> can there be relief for patients paying unbelievable out of pocket expenses to have medicines? oncology pricing will be to the premium of an antibiotic so there needing to be a mechanism to the financial basis they face >> it will be a huge question weighing upon the sector >> just wondering about the process and whether the approval process has sped up at all under the trump administration and whether these get any sort of priority >> this drug is expected to get approved on or before the due date of november 26th

>> okay. thanks very much up next we'll be back with the closing count down six minutes left of trade. >> and after the bell how to invest in tech we'll look at the companies that could see the biggest jumps on earnings this week stay with us you're watching closing bell, first in business worldwide.

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it was a key high. shanghai followed a 2% gain on friday decent change in sentiment the last two trading sessions. it didn't carry through to europe but did carry through to the open in the u.s. this was a positive open it didn't last long. it was green at the start of the day. we are off the lows as we approach the close what about the other indexes in the dow is down and nasdaq outperforming holding onto 0.4% of gains let's have a look at sector performance. tech has done well the nasdaq is outperforming communication services in positive territory

it is consumer discretionary we are looking at handful, two or three other sectors that are down over 1% we'll bring in bob, a one week chart. up last week and up significantly again today. it is something to keep an eye on >> slowly moving up. >> we are not seeing heavy selling. the volume is not there. we are also not seeing the big spikes up in volatility. it is relativelycontained around 20. it was 28 a week ago that is good news. the bad news is there's still technical damage being done. material stocks, bank stocks, energy stocks. they all look terrible they act terribly. it is really something to watch. we were seeing 52 week lows.

>> you can see closing some key fi financial names. the market is trying to work something out here it's not -- you're going to have a hard time moving the market forward with finances like that. we are going to get the big tech names this week. you'll get amazon and google moving forward >> it has been very interesting. netflix, great numbers first day it was up on the earnings and the rest of the time it hasn't been doing anything at all. >> and brexit headlines and europe but better news out of china over the weekend it has not supported the general market as well >> not only do they support the market they talk about tax cuts.

we didn't get much of a follow through here >> we did not. we are down 116 points on the dow. so we have a little bit extra in the final few minutes. it is 119 or so on the dow ringing the bell at the big board at 3:00 a.m. and joined us moments ago. congratulations to him back to you. >> one of the most impressive 7th graders. welcome. mike is here let's take a look at how we are finishing up the day on wall street some selling there dow closing lower by 128 points. so losing the triple digit gain from earlier closing off the

lows but still, lower s & p 500 now declining for 11 days out of the last 13 sessions down 1%. managed to gain but some ugly action in the real estate. 2% decline for finances. not helping out this market. the nasdaq did close positive. you got a lot of strength in tech names microsoft and twitter up to date big names set to report earnings this week. we'll break down why it could be a make or break for many of these high flying stocks joining us to talk about the market today is destination wealth management ceo. leading today is intell. dowdupont was a leader so you did have strength in technology but couldn't lift the overall market >> it was pretty well mixed

actually a lot of the hard hit areas recently bounced as well it seems as if we are trying to figure out if last week's lows were going to be okay. we finished and it's just a few points above where it would be closed a week ago on monday which was before the big tuesday bounce i don't think the market did anything decisive today. it felt like the index was under stress the fact that it was flat was a big buck it is one thing you don't want to see >> and some of the smaller ones selling off. and mike, the fact that we lost that so quickly, is that a worrying sign or not >> it is a worrying pattern. it has happened repeatedly.

>> it is not encouraging action. i think it was a lot of back and forth. it is the kind of behavior you some times get i would not be sounding at all clear. i don't think today was ugly >> and it was lead by china. 4% move up in the chinese stock market it has been hammered this year >> it looks like they are very active the question is does it broader global equities like the u.s.? >> well, i think china will certainly do what they can to stabilize the markets. i would warn against reading too much into a 4% bounce. you bounce 4%, you know, i think there's still lots of issues in

china. it speak to what we are talking about. the market is looking for some sort of push up. i don't think until earnings come out there will be a push up >> can you buy the banks at this level? >> i think so. we'll see what happens in terms of the rate increase jim cramer came out and said that he thought that the fed would raise once this year and then maybe pause next year which wouldn't be great for their margins but would certainly be a reasonable thing for the economy whether it would push with too many rate increases. i think it's a reasonable buy, yes. >> the question, it's a question of stock price reaction and bl they are good enough to justify

that they are not getting a big boost. >> i has been a hard to please market so the difference is stocks are beaten up heading into the reports. i don't know if it will create a different reaction it has so far. in the first three quarters the earnings will be up more than 20%. s&p up 3% year to date so clearly the market is not on an ongoing basis been dazzled by the growth numbers >> i think we are getting into the third quarter of the year that's blowing the numbers out big tech names reporting later this week. google and amazon report thursday are they set up to fail given the sort of expectations

people worried that about netflix. >> i don't think they are set up to fail. netflix is one of those rare stocks that -- or one of those rare stories where they blew through earnings remember these names are up a lot. >> if they trade in for a while i don't think people should be terribly concerned so i think tech is a place you need to be if they disappoint i think it's a buying opportunity because it will continue to participate in what's happened in the united states on an kpleconomic basis >> intel, the chip maker got an upgrade. they expect it to be the only chip maker they see raising estimates this month or in

november we covered everything from china concerns to falling prices for some of these products >> yeah. and it is kind of the quality sort of defensive name in a way. it is down 20% or so off of its high it don't think it was a high in a way that lasts it is a real down trend. it will be kind of a show me situation in terms of whether they can work through the supply so to me it goes in the same bucket with housing and autos and all of these parts of the market that are leaning in the direction of saying this cycle has given you the best of what its got. >> what is your view on this

>> chips are under a lot of pressure they are seeing all sorts of challenges at this point i think the chip companies are really a part of the market that could be a cause for concern. >> want to talk about trading like a lottery ticket. of course we have numbers. i would be interesting to see what it will imply for the move right after the close. >> a big one >> probably a big one. basically the leadership group that was giving everybody comfort that the technology was insulated for many downturned has underperformed for many

months >> let's talk about netflix that it is saying it would be used for general purposes including protection and development its earnings report showed almost 12 billion as of the end of the third quarter why are they not issuing equity? >> if you're strictly trying to maximize what the market would give you maybe it would be the way to do it netflix would think of it as kind of a working capital. it is not something you just show for a season and it goes away i think you'll stay on the

treadmill as long as the market allows you >> they are still able to do it. a high yield loan. it has been generous i don't think they would want to leave that they will come and dl dlut their shareholders. >> what is your take do you think it is shortsighted or the right move for them why do that in terms of cable connections. they are probably saying i don't have to make a commitment that i will do 10 billion and cap it at

that i think if you can get free money it is very very cheap money particularly considering what the earnings growth looks like so i think it's the right move i think it will be the move they will continue to play as long as rates are low and as long as bond market is willing to swallow these issues >> i guess they can also have the equity cushion sort of argument in the strong stock price. we do have these earnings issues >> the fourth quarter results beating for earnings reporting 92 cents per share that is an 88% increase increasing dividend to 40 cents per share. if you look at the revenue guidance it is a bit

conservative compare today where the street had their expectations you can see shares are a little changed. we had been down for about a percent, sarah >> yeah. coming back from that early loss thank you very much. stocks have been trading pretty poorly it is kind of how they make their money in terms of collecting assets and treating them as deposits in a way. we'll have more on the closing bell let's get to a news alert from sue >> uber executive stepping down following a wall street journal

report it is an article that revealed allegations of prior sexual misconduct in the office according to an unnamed source he was a very trusted adviser to the ceo. irt was as well as the sale soflt asian operations the cfo will take over and his resignation is effective immediately. back to you. >> thanks very much for that president trump says his administration is working on a tax cut for middle income earners. >> the president had teased the possibility of another tax cut over the weekend he gave a little more detail to reporters as he left the white house for a campaign rally in texas this afternoon >> we are giving a middle income

tax reduction of about 10% we are doing it now. it is not for business it is for middle >> a 10% tax cut for the middle class. the white house decline today provide more detail of how they are planning to do this or what it would look like treasury secretary did tell reporters this weekend that more details are coming shortly trump knowledged there is no time to vote on more tax cuts before the midterms. any action would have to wait until after november 6th remember, there is already a tax package before congress right now. the house passed tax 2.0 last month and would make a lower individual tax lower the senate punted that bill. house ways and means will be in houst houston with the president tonight. perhaps we'll learn something more there back over to you >> thank you very much

>> the skepticism is whether anything will get done >> right whether there is anything being formulated leer. right. we have this other bill out there. we also need the federal budget that will have to get done again. it seems like a signaling effect more than anything else. >> is it something the market would take positively or do we get to be the point where it starts to weigh on markets >> it was really the thing >> essentially not on the deficit side but it will be less no matter what it is not as if it is going to equal what we just had it seems as if i don't think the market is necessarily honed in on this idea as a them >> finally market expectations as you see them around policies

from the trump administration into the midterms and beyond and where they are likely to trade based on their results >> i think that obviously these kind of ideas get floated out there will be middle class tax cuts is a very very helpful suggestion prior to midterms. i think the market is perceiving any time you get money injected into the system whether it is infrastructure or tax cuts, not so much tax 3 2 .0 that it takes presence dense over deficits for most people. while i don't think the market will really go crazy up like id dit a year ago i still think it is going to be very very well received by the market so, you know, it all depends on what happened with the election. if there's a big swing the concern is that it will get undone it's obviously a negative for the market >> thanks very much for joining

us >> thank you tech earnings take center stage. we'll tell you why it could be a make or break kwquarter and whi names could be the big winners plus airlines are warning that the cruise industry could end up squeezing jet fuel prices a look at ticket fares coming up what do advisors look for in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. 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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top earnings include amazon, snap and twitter >> which of the companies have the most to gain and which have the most to lose jason is here. good afternoon to you both if i start with you do you think these stocks are set up to bounce i mean it is the likes of facebook well off highs but still in the long term some strong performers.

clarity on that should be a positive note. it is not until next week. i think it should be a clear outliar outlier. they have a new approach here in terms of android on the flip side we think about amazon it is a different type of investor that is thinking about theesz earnings, more critical earnings it could be little bit of ahead wind they will have more tough news coming out in terms of engagement i think you'll see that kind of a split. >> which are you most optimistic about? i think all of them are doing very well if you look at them broadly speaking i don't think any one of these companies will be made or broke based off of one quarter because they have such secular dynamics. as far as stocks looking at it

over the shorter period, you know, those that sold off the most have the most to gain in terms of a throw back rally. it is in a bear market down 22% off from a variety of reasons. it is down 13% i think if any one of those companies have a good quarter and beat expectations they re i an upside ahead zblichlt. >> it is not necessarily just the case that earnings expectations shifted around and correspond very well to what stocks have done in the near term it seems if they are telling us how crowded it has became or overowned and we have to worry about things like macro and yields what are you looking for to tell us whether that stuff matters

more or less at this point and we can start trading on the numbers again? >> i think there's a psychological hit that we have had over the past month in terms of giving the vast outperformance it is understandable that they are kind of on pins and needles. it doesn't get solved on necessarily one quarter. each company is slightly different. it should give confidence it is not just a product cycle story there is more of a shift as a service. i think investors should be reassured by that. in facebook obviously it will be this engagement question they have new privacy controls rolling out here they will bring them to the rest of the world and how it impacts the critical user growth

so each company is slightly different but they all consistently have one key issue that i think investors will hone in onto feel more comfortable about owning these longer term >> what is your view about what will win this quarter? >> if you look at this they are about four times bilger. it will be hard to unseat what they have there. >> i think microsoft is the one that seems to be driven. it seems to be holding steady or decelerating it will move that stock more than any other as far as cloud numbers are concerned.

>> thanks very much. up next we'll look at why this recent selloff may not be the long awaited rotation. it is happening more and more to teen shoppers. it may be bad for those running private labels the details coming up. alpha seems more elusive today. is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd, the investment managers at pgim take a long term view. uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc.

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>> they say now may not be the time for rotation. >> it remains to be seen i can understand why a lot of managers want to see this happen that's big performance spread here this is the growth index in the white and this is a proxy for pure value stocks. they are the cheapest. it is called the invesco it is a 40 percentage point spread this was one of the biggest shifts in style. you had banks and all of the rest open up why might th might not be

happening right now again is where we are in the cycle. if you look at what is inside this value index it is 25% financials which have not been able to get out of their own way. you own basically all of the auto stocks, all of the old media stocks, aulg of tll of thy very old technology stocks essentially all of those things are kind of disrupted or they are handicapping potentially the end of this cycle before very long >> and the other thing is how broad and strong the rally has been in the median term. even if the laggard portion is up 40% it sort of shows you that >> it all came kind of at once here you can see from the low here in 2016 and then you have brexit right here or in there somewhere. that's where it all came the markets have done great. they owe us nothing. i think at some point it will

make sense to have the very cheapest stocks work or at least that usually when you're at this phase it's not the time when basically you have one of these seamless leadership handoffs the times and value have done the best were in the bare market of 2000 and 2002 you to have a more pronounced downturn to have another leader come >> every dip we have seen in this, you know, long wrap in stocks has been bought >> it has. even today you saw the nasdaq 100 stocks bounce when others didn't >> all right it owes us nothing >> i thought that. >> yes >> it could be telling for more on this check out the latest article time now for a cnbc news

update the mexican forder tried to stop hem but mexican citizens are now handing out food and clothing, helping them long lines ahead of the president's visit tonight. thousands lined up outside the toyota center hoping to attend more than one thousand requested tickets. the arena holds only 18,000. the rest will be able to watch outside on big screen televisions. a rally outside today to the legal definition of gender reporting the administration is considering defining gender as the sex determined at birth. the department called the report misleading but also said it does not comment on alleged leaks finally, take a look at that get a load of that guy a deep sea swimming cucumber but also known as aheadless chicken

monster. it was caught on camera near antarctica which is way out of the way from where it is normally found i don't know where they got the headless chicken thing but there you go >> what was the actual -- >> it is a sea cucumber. >> so it's not an animal it's a vegetable of forms? >> got it. i don't know >> i'm serious i'm baffled. >> i'm totally baffled >> why is it called the sea cucumber >> because when it swims it gets longer and is basically one of the different species of sea cucumbers. these are things i never thought i would have to know being a newscaster but apparently i do >> you put it in there >> thank you >> back to us.

>> i think more legitimate is why it's called the headless chicken monster. i don't know if there's an answer energy is one of the weakest sectors. jackie has the details, jackie >> good afternoon. >> it's wait and see on so many issues it was surprising to see supply tightened a little bicht. it has been unseasonably cold. it added some upside to these.

extreme cold it gets a little harder think early 2018 that bomb cyclone. the weather models are suggesting this won't be too brutal staying over $3, that's probably likely in the short term the optimism isn't enough to get prices under that $3 mark. >> thank you >> cruise lines, ship owners are expect today switch over to cleaner burning diesel starting next year. that could lead to more expensive jet fuel for everyone. >> it is the bottom line joining us now is former continental airlines chairman. good afternoon to you both

starting with you, the age old debate for airlines about fuel prices i guess is how quickly the rise comes and how severe it is what are we looking at and whether it is going to hit the earnings >> exactly right now it is anybody's guess. there are multiple factors it can impact and the refining margin we had a big increase in fuel this year for airlines if it stays steady we'll see margin expansion next year we'll have to watd ait and see it is kind of an increase next year and bigger jump in fuel prices next year as you point out it's how quickly it moves up and what level it moves up and right now it's a bit of an unknown >> take us inside of the decisions on all of this how high up and how fast do these fuel prices move before it trickles down to the consumer

and we have to pay higher air fare >> it is really crude drives it at about a third of your operating cost tickets are sold not further out than say 90 days you have a chance to price and in case there is a huge spike in oil but this particular issue, i think can be solved with technology it's not just necessarily going to diesel fuel as a result of this new regulation. >> i wonder if the relative size of consumption kind of pulls here so in other words do cruise lines burn enough relative to airlines and it will be a major factor in terms of the use of these fuels? >> actually cruise lines don't use bunker fuel. it is really not even that the u.s. are impacted by this. but it doesn't take a lot in demand to really move the global

jet fuel prices and so i think, you know, there's definitely going to either keep fuel prices high or it's going to move them much higher. it doesn't take that much to put that pressure on so we will have to see it. the global demand is an important factor as well i think there's a lot of factors that play into it. i'm not an energy analyst. i know the airlines side what i can tell you is one-third of their costs are fuel. they will have to pass this through. where they can't pass it through you'll see capacity adjustment as you have done in the past if fuel goes up slowly then you can gradually adjust to that if it goes up fast it will be painful because of high costs. >> is the economy and demand strong enough to upset all of this and maybe that's not the case if we look at international

roots but it looks like it is domestically >> i think the airlines are doing a great job managing costs. so if it's going to happen i think as an industry we are a lot better off than 20 years ago when oil went to $100. so while this will have a negati negative effect on earnings i think it is manageable >> stocks have done well they are still down 8% for the year are they buying into earnings? >> i think so. a few -- >> yes >> go ahead. >> i mean the airlines are making their adjustments the caveat here is if you get another big leg up in fuel, if brent go to 100 it will be hard for the group. sit a much stronger industry at least in the u.s. face

if you look to europe it is much more fragmented and weak but i think it's an opportunity for stronger players to take share over time. so i think it's a buy because right now you're seeing airlines doing the right things and fares going higher or some of the other initiatives taking place to start to get margins to expantd again possibly in 2019 >> all right thank you for weighing in. nice to see you both still to come, the midterm elections safe from hacking? plus competing with china, his first interview since stepping down. we'll be back with that and much more

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u.s. intelligence officials there is it was an fascinating conversation with him. i asked him if upcoming midterm elections would be safe from russian interference given what we know. here is what he said >> i'm out of government now and have been for about five months. i don't think there should be any doubt that it is a priority and something the government across the spectrum of government capabilities and organizations is clearly focused on >> are you confident the russians will have no impact zbli am confident it is an issue we are applying a broad range of capabilities and something we are very focused on. >> so no declaration there from the former chief that it will be safe he says that the american intelligence community is focusing on it i asked him what he thinks of the president's approach to china give tennessee trade war we have seen break out and the

tariffs between the united states and china given that all of this the trump administration is about getting the chinese to stop stealing property it is a goal rogers was focused on as well here is what he said on that >> i like the fact that we are trying to put a light on a very important topic. how do we ensure america's long-term competitiveness against one of the largest in the world? it is something pretty foundational we have to compete well. i'm not a business or economic individual i know that tariffs are considered kind of a last resort we'll see how this plays out i hope they drive china to change their behavior. >> so rogers there saying he is aware tariffs are sortof a las resort economically but he is glad for the focus of the trum administration and saying ultimately that he hopes that it has some impact on chinese

behavior back to you guys >> and what was his take on his issues with saudi arabia did he side the stance the president has taken compare today other world leaders? >> he did. i asked him what he thought happened to the said di journalist he said he believes that he was murdered he believes it isn't a behavior the united states should tolerate and the united states needs to do something about it to make sure it doesn't happen again. ultimately though i asked him whether it was possible to get those recordings from inside the turkish consolate. they specialize getting secret recordings from places they are not supposed to get them out of. he wouldn't say how that is capable that he believes that the turkish intelligence believes what he is saying

>> good to get him ton the recor there. >> teenagers, we'll tell you netih companies have won over geraon z some of them may surprise you. obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

welcome back. teens can be a fickle bunch but they're the next generation of consumers so we pay attention to their tastes and cnbc courtney reagan has all the latest data. >> they talked to 8,600 teens from average and high income house holds and they asked questions about shopping, social media, tech preferences and a lot. total spending is up 1% from last fall but it is below the

spending increase from the spring and when it comes to clothing and shoes, fashion still matters more than brands, but brand is more important than it has been for teens in at least five years and up as you can see are 12 percentage points from fall of 2013. its ironic because more retailers like target and massy's are adding to their private label business, those not national brands because other data suggests the young people in particular are actually less concerned with brand names. not according to this piper jafery survey. brands matter, which ones? athletic brands still rein although it wasn't strong as it once was. nike holds on to the top stop but its share is falling. van's that's own by vf port the second favorite shoe brand gaining eight percentage points and its closest to nike that any brand has been in years.

van's also the third most popular top trend and for upper income female vans was the top shoe brand unseeding nike. crocks actually ranked at number 13 of a preferred shoe brand up from number 27 last year. it puts crock at the as a historical average. >> all the kids wear the crocks, i guess aging and so -- >> and also crocs. it doesn't have the old clogs you think about. >> that's right. >> good point. >> this is no joke. these teen surveys, this is a big one and its a pretty interesting indication especially if you overlay it with some of the stock performance. it tells you who's nailing the trends right now in retail. >> it really does. this survey i believe was one of

the first to identify sort of this streetwear popularity and identify supreme. its gotten a couple of really big investments and it showed up in this survey before many other places and that's a recent example. that's not a publicly traded stock. it still goes to your point, sarah. >> favorite restaurant among teens, mike, can you guess that one? >> chipotle? >> no. >> chick-fil-a. >> yeah. >> chick-fil-a number one followed by starbucks, number two. >> starbucks isn't a restaurant, though. >> an instagram overtook snapchat. i could go on and on. >> thank you. what a treat for blumhouse production. the reboot of halloween which we talked about on the show scared up big numbers at the box office this weekend. you'll hear from the ceo .

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add the perfect hotel when you're ready, and save. add on advantage. only with expedia. . october's box office keeps beating estimates boosting numbers this weekend was "halloween," the reboot made $77.5 million on its opening weekend setting a box office

record. >> one of the reasons i wanted to do "halloween" would see if my system would work on a franchise that's been around for ten movies and it aligns interests so we take the actors, the writer, the director, we -- none of us take a fee and if the movie's don't work, no one gets paid or they get paid the minimum you're allowed to pay by scale and if the movies do work, you get a check. and sometimes you get a really big check. so we have a relatively easy time getting people to roll the dice on their own work. >> i mean, it certainly won't be me contributing to that 77.5 million. scary movies, what's the point of watching them >> they're the ones that actually -- people do want to see in the theater as he told us. >> i don't want to see them,

period. >> being dark and being scared. >> its very scared. making headlines today, has bro closing down 3% after disappointing numbers. >> toys 'r' us for us last year, this was our largest quarter q3 followed by q4 as we get through the holidays we said we'll return to growth and profitable growth as we expand operating profit margins absent one-time costs and again as we go forward, we'll be beyond the toys 'r' us issue so you had to get through 2018. >> you can catch more of that interview tonight. "mad money" 6:00 p.m. eastern time. you don't want to miss that and, mike, bring it back to the broader markets. the nasdaq held on. >> before that, watch china tonight. the ipt play's been very interesting. 4% rally in china didn't

translate here. >> neither did the 20% decline in china. >> exactly. it works in both directions potentially. >> mcdonald's is going to be -- >> that's when it really starts to get noisy with earnings in a good way, probably. >> okay. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market side overlooking new york city time's square. tonight on fast, a top strategist on wall street says we're enduring post traumatic volatility disorder but he says that's what makes it the perfect time to buy. he'll be here to explain why. plus is the potpocalypse here. we have stocks getting crushed today. our own cannabis king is here to tell us what is calling this stock to cool off. the nasdaq jumping today. it all comes down to a matter of