the long term, i like it >> this is over $30 over the average analyst estimate i like it, they're buying calls in here today. >> stocks off their best levels, dow still holding on to a triple digit gain >> all sets up for a very interesting afternoon. >> we'll see you shortly, stock. >> stocks back in the green, earnings give a boost to sentiment. your volatility playbook is straight ahead we'll speak with the new ceo of kohl's her first tv interview since taking over. will history repeat itself, or is it different this time around count down to facebook, we have your set juch into earnings

tonight. power lunch starts right now welcome to power lunch, i'm dominick chu the dow had been up more than 280 points at the highs. despite today's gains, the nasdaq is on pace for its biggest monthly drop since 2008. the nasdaq is the only index up so far for the year. real estate and communications services are your leaders, right now for sectors. utilities are lagging. and leaving the dow right now, have you shares of intel, also nike and verizon, ibm is a lager down for a second straight day underarmor soaring on a strong beat for earnings. after reporting its highest profit in five years coke in the green as well as organic growth rose by 6%. we have every angle of this market volatility covered for you. bob tasani watching today's

moves. a wash out in stocks julia borjsten >> much smaller moves today. we've seen only 30 points on the s&p. the vicks, well, it's down fractionally still near the highs for the month. it's never gotten near 30, remember in february, it was 50. so still not dramatically -- amazon is down 1% higher volumes. generally better picture overall. flattish is certainly good at this point i watch the most beaten up sectors. watch energy, watch builders, watch metals a horrible month generally positive today, this is the first overall positive day we've seen in a way. watch the housing stocks, 52 week lows.

they had not worse than expected numbers. as you can see, it's up, owens corning, up, first time in a while we've seen a bounce. mining stocks, another awful sector the fact that they're not dropping any more, positive, we haven't resolved anything, at least this looks better. as for the rest of the couple weeks, get out of october. let's get into november, where we might have a chance of improvement. we'll have a pension fund rebalancing. bye back activity we'll usually increase for the next couple weeks. volatility declining even a little any progress on trade. let's get into november. guys, back to you. >> the elections will be over too. >> bob, thanks markets continuing to bounce back, we saw late yesterday after a steep and sudden drop, was that the bottom, or are we still waiting for the wash out mike has been looking at that, mike >> if it were going to need an

absolute washout that's clear to everybody that that was basically the final flush. don't think we quite got it yesterday, here are some statistical evidence of what we might be looking for that you sort of started to line up after yesterday's reversal there's something called the tick index don't get into what it means, it's basically how many stocks are trading in an up tick or down tick in the last move it shows you how these waves of selling and buying are yesterday was one of the biggest ranges that we've seen the last 25 years that shows a very violent reversal sometimes that means the sellers have gotten exhausted on one of these upside reversals bob mentioned definitely not at super extremes, but we did see yesterday it get up toward 30, and back off by more than three points, sometimes that's a spike activity, it's a little bit of a tactical signal that maybe the fever has broken, things are calming down

even if all these things line up as a washout, and it creates a strong balance, a balance is not necessarily the bottom you often have a little bit of a rally when you've had such intense damage done to so many stocks all rallies are suspect until they prove they really have some continuity momentum behind them. >> it's a process, not exactly a point, we've heard so many technicians say that >> jim cramer weighing in on the volatility last night on "mad money. this is what he said the stock market is signaling that the economy is in for pretty rapid deterioration just like in 2008 that's not very good fortunately, there's no systemic risk so will we see more downside from here? let's bring in jason pride, he's the chief investment officer for glenn meade also the ceo from hennessey funds. perhaps neil we'll start with

you. it's been a while, i used to work for you back in the day i was your head trainer for a long time. has the environment changed a lot since we were in the business together so many years ago? >> i think volatility has crept in, and i look at jim cramer's comments last night. and when i start to look at the market, and then i look at the economy, they're completely different, i don't know how a algorithms can tell us where the economy is going honestly, i think we're marching toward 30,000. the economy is in great shape, corporate cash is in great shape. cashflow's up, the whole nine yards. in the bottom line, even when we work together. we look for value, and there's always good and bad times value in the market. >> jason, we know that even if you're right, the economy is still constructive, markets are still okay, these pull backs can't happen are you bargain hunting?

what are you looking for, jason? >> you know, to tell you the truth, we're not changing portfolios all that much there's a little bit of rebalancing going on the way we're looking at this is that we've had an increase in volatility from what we've seen maybe last year, but in reality, this volatility is not that abnormal, and it's particularly not that abnormal for the late stage of the economic expansion. our strategy right now has been to position portfolios at a modest tilt toward defensiveness and toward value one thing that's been worrying us with this market for maybe perhaps the past year, year and a half has been this kind of narrowness and growth associated with the highest growth glamour stocks, relative to the overall market it's been very narrow. to now broaden the base, come in at lower valuation levels. set up for the next part of this ongoing bull market, we think makes sense. it doesn't mean the investors

should be really reacting that dramatically >> people are so hung up on whether this is a continuation of the bull market, if there's a bear market, the bottom line, investors want to know if there is an environment in which you can make money whether or not you think the bull market is still on and strong or not. so neil, i pose this question to you, in terms of where we go from here is it going to be harder to make money in the next 12 months as it was in the past 12 months? easier or harder where will we stand? >> this whole market reminds me of the 1982 to 2000 market the market was up each and every year if you go through those 18 years, we had 21 1/2% interest rates. we lost 25% of market capitalization, and one day in october. banks and savings and loans were crashing and going out of business in '89 and '90, and then the dot com the market was up each and every year, except for 1990 when it

was down one half of one%. if you're just patient, you're going to make money, you're not going to make it like you did in 1999 when the nasdaq was up 86% in one year. the difference is, there's no euphoria in this marketplace, and that's what will actually end the bull market. >> jason, we're going to get the last word to you, here these stocks and communication services and technology are on sale semiconductors social media companies are they worth buying right now, are we still going with that value trade for things like defensive sectors. utilities that sort of thing >> i would argue that the amount of valuation pull back they've had so far hasn't been enough to collapse the value of those securities relative to the others this market over the past year, year and a half, has overly rewarded future profits at the expense of current profits, there are a lot of companies making great money today that investors should own

that tilt is alive and well, and probably has a little longer to play out before we have a truly broad market at this point >> thank you, both for joining us here. let's take a closer look at general electric, the stock is down sharply today, down about 9% right now, after earnings and revenue missed the estimates they slashed dividends starting next year to one cent a share. here to break down the road ahead is an industrial analyst with gordon haas just to pile it all in there, john, we've got the fcc and the doj investigating some accounting charges from the first quarter as well as the third quarter. >> is this down a 9% move, is that warranted >> absolutely it's warranted you have to remember ge is roughly a third by retail investors. now retail investors should have no reason to own this company.

it is not the ge of the past, the dividend has gone to almost zero there's really no expectation as to when that dividend can come back the sec and doj have widened their accounting probe retail investors should not be owning a name that is under accounting investigation the company took an equity capitol raise after the table. we think ge capital is going to owe billions more in the future. it would be better if they could raise the capital to plug a lot of these leaks they took it off the table because you can't raise equity capital when you're under sec investigations this is going to take a long time to work through >> it wasn't that they don't need the capital race, it's that they will not be able to do the capital race because of that investigation? >> 100%. the sec does not have to tell you how long their investigation is going to last, frankly they can do anything they want. they could widen it to many other areas.

we're just starting to see the covers start to unravel here in terms of a lot of these different issues this is a real challenge larry kulp is an accomplished ceo. there's no question, he's just one person as i said, this is going to take a very long time >> a long time is one thing, but the things you need to do in that long timespan are also important as well. let's talk about the bullish case, we've been talking about the downtrodden side of ge what is it that ge needs to do to get investors back into this stock. especially that one third of the retail side? >> it starts with establishing a credible base. and the company basically did not give any update toward its guidance for cashflow, which has been horrific, or its earnings power. the power business, which is one of the primary segments had 11% negative margins they probably don't know larry even suggested that power and aviation, the two principle

businesses were not his background it's right now working for power, they still have to work through ge capital i think establishing a credible base is the first test of what you have to do from there. coming up with a plan that's plausible. right now we don't know what the plan is, the company is pursuing the sale of its health care business and its owner ship of baker hughes, for reasons that seem obvious that they just need the money, these are crown jewel assets why are they pursuing this there are so many unanswered questions, it's hard to establish those questions. >> is it not some of the parts analysis one analyst said yesterday the value of power -- excuse me, aviation health care is equal to or more than, less than the entire enterprise value of general electric >> i think that's a false narrative, because of the liabilities associated with ge capital. power aviation -- health care and aviation may be indeed worth

money. whether it's for new insurance, other types of liability it doesn't matter, right >> just being the best house in a bad block, doesn't mean you're going to be worth a lot more money. >> that's the first point. are some of the parts, the market is obviously corrected. some of the parts says it's not worth much more than where the stock is trading today, and that's subject to revision, because there's so much uncertainty with respect to what is the earnings power with this company. aviation, i might add, we're in the 15th year of a 10-year cycle. this business by all intents and purposes is close to a peeking point. you don't ascribe big valuations to peaking types of stocks look, global slowing is not going to be great for the global aerospace industry particularly given all the planes that china and india buy, for example. that's just one example. i think holding up aviation and health care, which they're going to be selling health care is really not the right answer.

>> john, thanks for your time. we should point out too, that this is general electric's worst day since 2009. big losses there for ge. stocks holding on to their gains overall at this hour the communications services sector among the best performers so far today off the best levels of the day, those big fang stocks have been hit hard this month. will facebook turn it around everything you need to know ahead of the company's big earnings results coming up next.

at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...

bit ing this month google and facebook have held up relatively well. each off by 15%. two hours and 40 minutes from now. will that health turn things around for that fang trade julia boorstin joins us now with that record. >> reporter: there are three key things in facebook's earnings report that could have a dramatic impact on this stock. user growth and engagement those are under the micro scope after last quarter setting new privacy regulations. this quarter, analysts projecting users will inch higher to 2.29 billion daily users are expected to grow

to 1.5 billion opinion second is decelerating revenue analysts expect revenue to grow 33 1/2%. that would be facebook's slowest growth rate since 2012 privacy and security investors will be looking at updates on the costs and on efforts to battle fake news and manipulation ahead of the midterms how much more those costs are going to increase in the coming years. >> julia, thank you. will facebook's results be enough to turn this stock around >> $210 price target let's bring in aaron kessler great to have you with us. >> how are you >> when you're fielding calls from investors out there, your clients. what is the number one thing they're worried about. >> right now, the number one thing is actually core facebook engagement we all here stories of people

using facebook less. whether it's daily active users or time spent. the positive thing for facebook right now, is instagram, which we think is offsetting those concerns facebook core is decelerating, we think instagram is making up for that right now >> it makes it up in terms of monetization >> yes, facebook you're seeing decelerating user growth in the u.s. and europe. they talked about that, we expect that to continue going-forward. we're starting to see revenue growth desell. we're about 35% growth versus low 40s growth in q2. that is a concern for investors,

however, we think that is factored in. it's only about 20% of revenues today. we are growing very quickly this year by our estimates. and if you look at 2019, we think you'll monday ties also, which has another -- core slowing, we think instagram is doing well as we move into 2019. >> you mention all those properties, is there ever a scenario you can picture in the near or medium term where facebook tries to change the narrative of all this monday etization by charging a nominal fee for some of these services, maybe this from whattsapp or inning is a gram is there ever a business model facebook for has for any of its units, where paying for it is going to be part of the story? >> we don't see that coming any time soon. there could be other types of monetization there has been talk about

facebook launching an e commerce app. we think it's unlikely at this point we're going to see them charge for usage it's too tough for them to start to charge a large user base and risk losing users on the platform >> what's your sense of how much effort facebook has been putting into make sure the midterm elections, everything surrounding it is clean. and are you confident there's not going to be a shoe to drop that goes on with the midterms >> yeah, obviously the effort has increased on facebook's part from a people perspective as well as technology, they've been investing in it, a big reason for the increase in investments this year in 2019 and last quarter. that said, we continue to see some data breaches, privacy issues over the last few months. you can never say there's going to be zero issues going-forward. they have stepped up their effort as well as others that need to as well. it's something we're here to watch. but it remains a problem as

we've seen >> all right, we're going to leave it there aaron kessler, raymond james. coming up on the show, we're checking in on the consumer first, the ceo of panera bread about to join us a big look at the consumer dining scene there and then a look at the holiday season is shaping up, the ceo of kohl's will join us since taking over as ceo of the company earlier this year. two big hours of power lunch are two big hours of power lunch are continuing after this break. and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

during this october selloff, consumer discretionary has been down 14% if you look at just the restaurant names, a much better picture there many check out mcdonald's, actually higher amid this month's carnage, up about 5% out of a month to date type basis. even darden, chipotle are lower. so are the restaurants going to hold up if the economy and markets turn south you still have to eat, right over to you. >> all right, dom, thank you very much. the ceo of panera bread, which is doing very nicely, good to

have you with us >> your company is private now is it better to be public or private? >> difficult question. there's no right answer. i would say today i'm excited that we are private, because that enables us to make investment decisions into the brand, without worrying about the machinations of the stock market we can do it because it's the right answer for the long term, not simply -- and then we don't have to worry about what does it mean for the stock price >> what are you seeing on the street, in your stores lately from the consumer. consumer confidence 18 year high today incomes up a little bit. wages a little bit higher. is that trans lating into more volume, more visits, more sales in your stores or is it not what you would have expected? >> as of a couple weeks ago, there's another report that came out that said sales are

declining. the month to month decline from august to september is one of the greatest >> hurricanes are probably the biggest part of that we saw some of that decline -- we have some stores in the hurricane areas. question have a metric that we measure our performance against the industry called a black box metric. and that allows us to see how we're performing this year versus everybody else. we continue to dramatically out perform the rest of the indexes, while we were slightly below our expectation it was much better than other people saw. >> you just told me something i didn't know about -- there's a lot i don't know about panera, you told me a couple things i didn't know. the store by store basis, you have the most volume of anyone >> our volumes are approaching $3 million, which is particularly with the growth of our channels and delivery,

catering, things people are starting to get into the business of. we've been there for a while we're starting to see the year over year growth that's helped us out perform >> we're here at a cnbc event, at work today. productivity is a small leap to digitization. >> right >> you have seen the growth in your digital ordering go from what to what today >> in 2011, 2012 it was zero today it's just about a third. just shy of 33%. >> could you have imagined that growth >> we have dreamed about that growth it was in the realm of possibility. we did not expect to be here until 2020 we're nearly two full years ahead of our target. >> a third of sales coming in through the digital channel. much of it i'm sure is colliding at -- in a window, between 11:00

and 2:00, and you have to get that order right let me say this, amazon doesn't care if the -- and i don't care if my amazon package doesn't get there at 2:00. if i'm coming for lunch, it better be ready. >> you're not going to be happy if you show up to pick up your rapid pickup order and the food's not on the shelf. it's not rapid at that point we were extraordinarily good at -- we figured this out in advance. we made investments in our kitchen, we put technology in our kitchens to help handle it, we are hitting a point where the volumes are so great, and we got there sooner than we expects, that we have to take a step back and say, how do we get better at it again >> a lot of investment has gone into using kiosks to point and shoot, and pick at that. is voice ordering the next thing around the corner? and how soon will it be here if it comes and it's not right, i'll be ticked off >> i think voice ordering is

part of our future timing, tbd. i'm worried a lot of the voice orderering we see today is basic. there is technology coming whether it's an integration of voice and actual -- the device itself, how that works, i see that coming, but i think it's multiple years away, not to the point where we're doing work on it right now, we have to >> if i order french fries and the automated voice says, we don't serve fresh flies. i'm not going to be a happy camper >> voice recognition is very good what to do with the intelligence i ordered a salad, and went to modify it. we have five different ingredients on the salad >> last question, quickly, if you would. >> how do you see the consumer evolving over the next year. if the market is challenged and the confidence goes down a little bit, is it going to show up in your business?

>> it may show up in a positive way in our business. and the reason is, when you're talking about great bread, made with whole grains, clean food. some of the initiatives we put in around digital. we have this opportunity to continue to take share and that's the plan. we will always -- we will go after share when everybody else is in die kleecline that's how you pick stocks, that's how you pick restaurants. and now, back to you, don. >> tyler, thank you very much. >> the ceo of panera and stay with us, another big ceo interview is coming up, more insight into the strength of the consumer on the retail side of things with michelle gass. she's ceo of one of the biggest department store chains. stocks outperform big in the fourth quarter of election years. will history repeat itself or will history repeat itself or will thivotitys lali collapse.

to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. is my competitive edge. it senses our movements and automatically adjusts to keep us both effortlessly comfortable. so i'm at my best for this team... and the home team. sleep number proven quality sleep, from $999.

you sleep in your bed and i sleep in...les. oh no, max, did you teach him puppy eyes? [ whimpers ] fine, this one time. ooo! [ grunts ]

let's get a check of the markets now. the dow is coming off a high of 290 points right now, the dow is -- the s&p is up by a point close to the flat line, the nasdaq is down by 15 points here a good day for the stocks and video leading the group there. energy stocks are popping, despite a drop in crude oil prices devin valero resources are leading. and let's take a look at netflix if we can we're back down more than 3%. the stock had been up 2% we often see netflix roll over before the broader nasdaq composite does ge falling below $10 a share we're watching that, of course now, let's get to sue herera for a cnbc news update >> here's what's happening at

this hour, everybody federal officials telling cnbc news that whitey bulger has been found dead he had been moved from a prison in florida to a transfer facility in oklahoma city. the fbi is investigating his death. at a news conference in oslo, britain will look to negotiate an agreement to allow north whetheren citizens living in britain to stay. >> we confirm that people from norway, and those others who are living in the united kingdom, who have made their life choice to be in the u.k., will be able to stay in the u.k., we want them to stay klay thompson was in the zone last night, making a record 14 three-pointers. he had a staggering 52 points in 27 minutes the team itself made 24

three-pointers one shy of the team's record you're up to date, that's the news update at this hour, i'll send it back to you >> making it rain from downtown all over the place, those golden state warriors -- i love the fact that they're doing so well. >> thank you very much, sue herera we're one week away from the midterm elections, what does it mean for the markets according to our data partners, it's a bullish time of year. in the fourth quarter, during midterm election years, going all the way back to 1982, if you look at the dow, it's gained an average of 8 1/2% during that span and it trades positive 89% of the time that's something to watch there. if you're watching at the s&p 500 it's gained an average of 8 1/2% it trades positive 89% of the time as well and if you look at the nasdaq, the nasdaq has jumped 10.5%.

since 1982 still, though, if you look at the way the markets are shaping up right now, we should point out average performance is nearly double for all three indexes compared to all other fourth quarters since 1982 scott walker joins power lunch with some of those details. >> for more market insight as we countdown to the midterms, let's get to our panel now, senior market strategist with lpl financial. the senior vp. good to have you both with us. how much of the weakness that we've seen in the market is in anyway related to the midterms. >> scott, you know, some of it is global. we clearly have a lot of markets that are pulling back. the u.s. is pulling back too let's not forget, historically, look at 2014, for instance a couple days -- a really nice rally higher we think that scenario could be

playing out. it's a positive seasonality point of view. november and december are really strong during midterm years. once this is out of the way with a lot of the positive fundamentals, we will probably have a nice end of the year rally here as we've had a really rough october. as you know. >> we have fears of the fed playing into it. i haven't heard many people other than the president in his tweet today suggest that the midterms are having much to do with what we're seeing in the stock market >> i think it's more about what we're seeing now and where we'll go in the first half of next year who wins the midterm elections the chamber, is controlled by which party. >> the democrats winning the house seems to be -- seems to have been priced in for a while. the big wild card clearly is what could happen in the center. >> i do agree with that, the one thing that i talk with

investors, they seem to be missing despite expecting a democratic senate, how hard it may be to vote on this renegotiated nafta despite the fact i don't think -- maybe the day after the election, there's going to be a big surprise about what happens, i do think that most investors are not appreciating how hard this is going to be. >> if the democrats win the house as expected, the republicans hold on to the senate, what are some of the outcomes when it comes to key policy pieces, that's what the markets are focused on, things like infrastructure, making tax reform permanent >> i think there's no scenario where making tax reform permanent can go this year >> i think it's out no matter what the structure -- the only scenario where an instruction could get done is under a divided congress if you can work together bipartisan, i think that's how that's done. i think the vote on the rene

renegotiated nafta, is going to be a nancy pelosi/donald trump shutdown >> we know the midterms are part of the calculus, is it just noise? can we look beyond the midterms, is there anything else that's going to be driving the trade, besides the fact that we have this uncertaintyover the election in a week's time? >> surely. we'll talk about elections for a second, we had a nine day losing streak ahead of november 2016's election you talk about what's going on on the surface, this has been one of the worst months we've seen in a long time. this could be the first october ever without two consecutive up days what's happened this month earnings, 2019 earnings for the s&p 500 increased so far this month. to us, that's a really good sign we still believe earnings drive long term stock gains. earnings are getting better when you lose the estimates maybe that's a good thing.

>> i'm told by a former administration official that the market is underestimating the vote on the new nafta if you want to call it that do you think so? >> i think the recent stock market volatility we've seen clearly, investors are worried about tariffs. i think in washington, folks are blaming the fed. if you think there's a disconnect, maybe there is an underestimation about this being an easy vote >> you get to next year, you wouldn't have the vote this year, that's for sure. >> there's definitely walking back, holding a vote this year, it's difficult to envision the process could happen this year i think the administration is trying to downplay how hard it will be to get this agreement passed in a democratic house let's get to the bond market rick santelli is tracking all the action >> if you look at one week of tens, can you see it, it's starting to round, it's starting to turn up

we toyed with 312, 311's key level. everything today seems to be about 17 months and the dollar let's look at june 1st start of the dollar index that's 2017, that's the area where we're hovering, should we close at these levels. that summer of '17, it also stands for the dollar. i know that in august we haven't quite taken out that area yet. you see on the chart it certainly looks like the momentum is there to do it the same could be said for the dollar yes, we have that august bottom there, but most likely the momentum is going to carry all three of these to 17 month extremes and finally, there's the big outliar, the dollar one. it continues to get power ahead. that's the dollar versus the chinese currency the dollar is the best level since may 2008 dom, back to you >> thanks so much for that the markets have been selling

off in october shares of kohl's have been doing just fine. that stock is up about 4% during this selloff season. what is kohl's doing right and can that momentum continuing the ceo about to join us in her first tv interview scein taking over the company power lunch will be right back

the meeting of the executive finance committee is now in session. and... adjourned. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it.

you're in the business of helping people. we're in the business of helping you. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. retail has been hit in the recent selloff not as hard as some other groups luxury names getting hit as well tiffanys down 16%. home depot lower 16% this comes of course as we head into the crucial holiday shopping season. >> thank you very much, i am here at the women's daily ceo

summit, i'm with michelle gass your first live interview, you've been with the company for five years, but took over that top job in the spring. you knew the dna of kohl's, how it worked. you are in on the greatness agenda and strategy. what way are you transforming kohl's for the fut tour. a shopper, you really haven't grabbed as much of as perhaps you'd like >> it's a great question, courtney, and i couldn't be more excited about what's ahead for coles. as you mentioned, i was part of the leadership team working with kevin manziel and the rest of the team our greatness agenda, our key priorities of driving traffic. and all those maintain but just as we have the last couple years evolved, we are evolving as we speak i'd say a big focus is while we maintain the discipline of operating a great business, driving more innovation, more excitement >> and you mentioned both for

us, it's the core customer, and it's that millennial shopper, and we have an entire team that's energized about that opportunity. >> great example is the new line of apparel we introduced in september. partnership with pop sugar, and it is aimed squarely at that millennial customer. >> in your presentation here, you said pop sugar reaches one of every two female millennial shoppers, that's a pretty big deal >> they have over 35 million followers. we had done some work with them prior, in our advertising, so we knew that we would be resonating with that customer and we're really excited about the early days of how that new line is doing for us >> kohl's has had some good sales momentum, here you go, it's holiday season, how are you going to continue that momentum, what's your holiday plan to really stand out in a sector, the department store sector that has been critiqued a bit over the years. >> first off, i'm excited we do enter into the holiday season with great momentum.

the holiday season for kohl's is where we really shine, i mean, we're so known for black friday. and now cyber monday cyber week, and a lot of the things that we look ahead for holiday are things that are working for us right now our active business is working w our active business is doing phenomenally well. people are doing great for gifts for themselves and the holiday line we have a great proprietary brand. there are new categories for us, like toys we introduced the lego brand and feo schwartz we are able to catch a lot more of the market share. >> we seen stock market volatility of course, there is some turmoil in washington and some us thetur rising interest rates. is end of that going to impact how they smend thpend this holi season

>> all our core is the been of the backdrop from the macro environment. guy back to things that kohl's can control, creating things for the customer omni channel is big for us now in terms of how our stores and digital channels work together what we have to offer in value, though our customers come, they love kohl's cash and the great product we will our them >> that amazon partnership you talked about a little here you are still in the pilot stages it's been a year so you have to have some learnings. is it bringing in traffic. is that traffic converting into sales for kohl's >> one thing for kohl's and i respect since i walked in the door, we are really good at testing. we make sure for the long run we understand it. in amazon, we are in 100 stores across three markets, chicago, l.a. and most recently to wisconsin. we're really studying to make

sure we can make a great examiner experience. so it takes time to ensure we can deliver on that experience and ultimately the partnership needs to work for both of you was. but when you think about what we've created, the whole of accepting returns from another retailer and amazon, nobody had ever done ooeanything like thate fact for a customer, they just have to bring it in. we will package it the one thing the customer does love it. i've spoken to many of them myself so the amazon customers the kohl's customers, now we have to see if the thing will work long term >> we will continue to ask you that we appreciate you being here with us. i will send it back to you scott. >> thanks, michelle. let's stick we are tame. do not miss the ceo of tapestry 3:00 p.m. on the "closing bell." coming up, much more on the

markets in the volatile hour apple showing more gadgets we will show you all cool gadgets next on "power lunch." i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. . apple holding a product event in brooke linl today,

showing off new imaks and i phones josh lipton is there. >> reporter: scott, let's start with the ipad. they will have an lcd stretching edge to edge powered by this a12x bionic processor. it will mean a boost in energy efficiency all day battery life two screens here, an 11-inch version that will start at 799 and a 12.9 version starting at $999 both available today i cat up with previous strategies and the point is listening the ipad's held over the next quarters will come down to how many people think of this device as a necessary tool for work creating content, not just consuming content. you saw apple kidding that in the presentation with this apple pencil and smart keyboard, execs on stage, trying to make the

stage this new device becomes your moment office in their word we'll see how many consumers agree ewhewith that. the new macair, they have competition. microsoft, dell, hp, all telling its clients, listen, they thought the update was notable only because it's been a few years since the last major refresh and apple finally unveiling this mac mini starting at $799. >> thank you so much for that update from apple. shares of boeing bouncing back today after being in the red after yesterday's sale justify. is boeing a safe bet or should you put it on the not buy for now. don't go anywhere, because the 2:00 hour of "power" is when markets tend to make the pretty big moves. stick with us. we'll be back with the second we'll be back with the second hour of "powercapture opportuni.

we enable you to reach global markets and drive forward with broader possibilities. break. ♪

♪ ♪ ♪ ♪ comfort. what we deliver by delivering.

. i'm mellissa lee welcome to the second hour of the "power lunch" the name of the game typically in the next hour, for the past few weeks or so should investors brace and a

wild close to the day. the defense sector trying to trade concerns with names down nearly 20% are there buying opportunities and here comes facebook 17% in three months will tonight's earnings bring back the bulls in the blame game, how big of a roll do etfs play when it comes to market volatilities we'll debate just that "power lunch" starts right now >> welcome to the second hour of "power lunch." i'm domenic chu the dow rallied more than 300 points at one stage the nasdaq had been up about 1.5% it did turn briefly negative just in the last hour. can you see right now the s&p up by 2-3 of a% as we tack a look at what's happening with facebook shares if you look at that particular stock s&p 500 versus its 200-day

moving average that's something we're watching. because we're about 4% below there right now. facebook over the past year has dropped again deeply below that moving average as well can you see there a move lower that's one we will watch only because of the way things are moving another we will check out is applied materials, it's down over the long-term average, down 34% during that span it's something we will keep a close eye on >> that semi conductor plan playing marketedly, again after what's coming up here, a lot of these stocks will tell us, scott a little of the motion or momentum of what's happening in the markets right now. over to you. >> thank you so much, "power lunch" all over the volatility the vix soaring over the past week plus, will the downward turn in the defense sector last? is the consumer healthy headed into the shopping season and will facebook face plant into tonight's earnings a lot to discuss

bob is watching the action from the floor as always, bob >> reporter: what's important is it's a lot quieter although, i'm not convinced we are lower. we've had big moves, much smaller amplitudes today, 30 points from the high to low. bigger in historic not so compared to the last couple of weeks the vix quieter. we were 27, twags a few days ago, we were 50 if february. so we never got into panic territory on the vix it's been fairly quiet where are the markets? let's say generally lower volatility we haven't seen big sell-offs in the middle of the day. not so far the worst performers are the leaders. that's a hopeful sign, home builders and semi conductors i'm talking about. let me show you the four sectors that i'm talking about that have been most beaten up this month

the home builders, semis, a nice little bounce. minings, including steel stocks, they're not doing anything and energy stocks have been terrible the oil service is not doing anything so let's call it two out of four that's a little on the indeterminate side general electric, cutting the dividend to one penny, broke below $10 now as can you see right here this is the lowest that's a ten-year chart you are looking at we're going back to april 2009 to last see this price ge was $3015 months ago. if you look at that, for those of us who are exge employees and mr. were, in 2000, ge had $60. bear that in mind. another painful day. i go es the question is, guy, how many more kitchen sink quarters are there for general elect rick this is another one where we got a new ceo, call it a kitchen

sink quarter, we've done that a lot in the last few years. >> thank you very much so strong earnings growth isn't enough to calm the market. what will? the president and cio of henian and walsh asset and the director of o'neill securities and cnbc contributors, what does today's action tell you where you are, if you this i? >> listen, it feels a lot easier than yesterday, like bob said, less volume, less pressure on the market i don't think the down side is overity. i think they will, after the third new low in this sell-off correction period that we have i think the markets will test it again, just like it tested in 2010 and 26 knif95 we'll see if it holds, if it doesn't, i think we go to the february lows. i think today is more of a bounce, a relief rally, there is no real push there is no -- there is no -- it

doesn't feel like it has guts to it right? it feels like it's a bounce. >> we lower the rally and tempt it back. can you agree with what kenny said >> i was pleased to hear from the kohl's ceo in the last segment. i think there will be a strong shopping season. once we get past that g20 meeting, hopefully, we receive some form of positive comments on that trade impasse between the u.s. and the china i do think the confidence consumer will spend more >> that bodes well for people in that e-commerce system, amazon and the other companies that tend to benefit from e-commerce as well. >> do you think at that point it's a resumption of what had been the trend up until september? >> i think there will be different leaders going forward. i think it's smaller capexs that will lead the way. i like biotech and e-commerce growth >> kenny, what about the fact

the market can't go forward in any magnitude unless the fed blinks >> i don't buy that at all i don't think the fed would blink, it looks like they will bow to donald trump. >> that's blinking but proing with the rate cuts >> it's a win-win actually >> you were both talking i didn't hear what you said. >> what happens if the fed raises in december >> right. >> and takes a dovish tone for the rest of 2019 >> right so i this i if they do that, yes, then i think maybe the markets, then the market finds its footing and moves higher i think it will move higher into the year that santa claus rally that you have been talking about is coming i don't think -- unless i've completely missed something -- i don't think the feds will do it. they destroy their street credit if they take this dovish tone after telling us for months and months, we're going slowly, it's

steady, no reason to stop, we have no normalize rates, all of a sudden they go dovish. >> they lose credibility >> ketch, can you haiku the argument they have just as much credibility if they reaction to an economic environment. >> they have been independent. they've always told us, they suggest they don't have to tighten as much, i don't think a november tightening is a certainty at this point. >> so they react to what is a changing environment, what itself wrong with that >> wait a minute, whatt the changing environment >> have you heard the tariff commentary from ceos >> listen, but we have been talking about the tariff commentarys for nine months. there is nothing new in that quite honestly, i think there will be a deal with china. so, therefore, i think all that hoopla and that concern, i'm not buying it. i think that there is going to be an answer, that there is going to be a trade deal and the market is going to move on >> well, we're going to see. we are going to see what happens. kenny, thank you

kevin, our thanks as well. all right, defense stocks are bouncing back a bit today with aerospace and etf, the ita, that's up a percent today after seeing its worst day since february in its worst nine-day losing streak since back in 2012 still, though, today's move isn't enough to push big names, northrup, grumman, raytheon out of their territory that 20% drop or worse or in boeings correction, a 10% drop or worse. what is it going to take for these defense stocks to aim higher let's bring in the ceo of aerospace equity research at jeffrey's. i got to say the move yesterday was driven in large part by boeing it has a massive weighting in that etf index about 12.5% is boeing right now probably one of the best position companies it sure seems like the markets loved it for such a long time in >> i think boeing industrials is seen as a safe haven, it's

proven out once again over earnings, it continues to raise estimates. last week it was on commercial area ro space margins better than expected. boeing is seen as a safe haven, especially with regards to what's going on, if you look at defense, they've lost driven billion since october over bucket fears, of bug falling potentially from $733 billion to $700 billion 43 billion lost value over 33 billion in the budget. >> it seems when we cited the trump trade the defense stocks were amongst those leaders is it a sign right now of that uncertainty in washington that these defense stocks are pulling back to the degree that they are after being such winners over the course of the last year-and-a-half or two years or so >> sure, there is uncertainty in the markets as we approach mid-term as we get through that hump. we are looking forward it to once they digest that, the

defense billion will be $700 billion. that is up off of 10% of fiscal '18 and up 3% in fiscal '19. way above the levels we saw in fiscal '16 and '17 of $350 billion. >> i'm sorry, can you really call a stock like beauing a safe haven so closely tied with the outcome of china and these trade talks will be? >> it's been surprising how far boeing has performed, considering the headline with the stock. i think it has managed its risk very well. it's the largest u.s. exporter it's managed customers and had a dialogue with the administration i think it's a burden that's the issue. >> it's the one that has the most lever annual to general commercial aviation. is that a reason to like boeing more so than the rest of the pure play contractors? >> sure, we're talking consumer spending, air traffic is driven by consumer sentiment. so the way to play that is through boeing

if you are bullish on consumer spending >> what about -- and this goes to what melissa is talking about -- commercial aviation, the terrible accident we witnessed with this new model of the airplane are you not concerned about that over the longer the earerm? >> we'll wait for the physician cal evaluation there hasn't been a stop >> the company has a lot riding on this yet. >> it's gone through sert fichlths it's gone through testing. i don't know how many aircraft are currently riding in the air. there hasn't been an incident so far. >> we talked about boeing for a big reason, it's the biggest waiter in the dow and one of the biggest drivers in aerospace you cover many price what is your top pick if it's not boeing >> we like boeing and northrup they were given the level in okay we met with management yesterday. we feel pretty confident in the outlook. even though folks are worried

about defense budget, we think we have visibility for top line growth we think the company is one of the defense that have leverage to potentially expanding margins, given they're early in the cycle. they started with a b-21 two, three years ago. so they're now reaching milestones that help them expand margins. we think the stock the trading at a 15% discount multiple at a 6.5% yield we think there is no big impediment to working feel >> northrup and boeing thank you so much. coming up, consumers feeling good about the economy, confidence at the highest level in 18 years. will that translate into spending during the holidays that's next. plus, this stock soaring on earnings it's a turn around story the name and what to expect from here. and facebook needs a good quarter. will the company deliver after the bell today the bell today the key things

and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies looking for coming u sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ whooo! want to get a move on your next vacation? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new orleans! from cooking classes, to airboat tours, tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so your whole trip... will be smooth sailing! read reviews check hotel prices book things to do tripadvisor

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. . the conference board's consumer index risingings to 139.9 in october >> that is the highest level in 18 years will the optimism last does it mean consumers will be willing to spend more this holiday season joining us the president of the confidence board and cnbc contributor. great to have with you us. >> thank you >> you are the ceo of the

company, a retailer before when you see consumer confidence being that high. what does that tell you? >> well, this is the highest level you said since the fall of 2000 and consumers are focused on what's impacting them the jobs market is very strong wages are moving again they're feeling like they've got money to spend and more importantly, when you look at the consumer expectations index, they continue to think this will go on through the first quarter of 2019. >> that says that the holiday season should be very strong as we all know the economy is 70% consumer and holidays are so important, the fourth quarter is so important to gdp. so we got a good gdp run going here it should stay wrong based on these consumer confidence numbers. >> they're feeling pretty good now, i'm guessing the survey was taken before the time of the most recent market volatility. so come november when the next numbers come occupant and we are

in the thick of holiday shopping season, how do you think the consumers will feel then in. >> well, you don't see a lot of consumer confidence bounce because of volatility. what we've seen is up and down we're down to single digit off all time highs as we all know. if there was a sustained trend down for a long board, we got into a bear market then it might begin to force people to look at their 401ks and readjust, typically, market volatility like this up and down does not affect consumer confidence so that's why we think that this looks like a strong season for us here because of the expectation index. they don't see anything here that will derail it. >> confidence good, steve, suspending this week was good. you think incomes, though, have peakl peaked? >> you know, it's hard to know, as the margin tightened. that's uneven.

you seen shortage in blue collar markets. the trades and everything that affects the housing market and gee traffic tightness certainly in the coast and urban areas so it's uneven in that if that continues, you would expect to see unemployment levels come down sooner and wages rise even further. so that's the expectation here >> i ask you because the index gained was the smallest in month, which would suggest perhaps it's unsustainable that trend remains intact >> yeah. but you then also have all the seasonal hiring. you have amazon alone is having tens of thousands of jobs. all retailers do >> that should add more spending into the market on top of what we're seeing going into it so i think this is going to be a positive trend

you look at the situation, people worried if it will derail things it hasn't affected the u.s. gdp, our imports into china are relatively small unless we get into a big bear market, unless some event happens here, it doesn't look like anything that would derail consumer confidence going into the holidays >> if the economy is so good, people are so confident, how is that not playing out in these election projections we are seeing for the mid-terms >> well, i don't know if there is a correlation between consumer confidence and the elections and, of course, we'll find out what happens next week. but i think that you see the focus here on the job -- their on job situation and their own wage situation and that's really what ties to the consumer confident, so again and if you look at what they are projecting here, as far as you can see, the next six months, all of it looks

positive they don't obviously think whatever is going to happen next week is going to derail that >> thank you so much for joining us this afternoon. >> thank you. all right, coming up, this stock is surging on earnings it's up over 20% on pace for its daily performance since 2015 it's the mystery chart we reveal the name next. ♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai.

the ibm cloud. the cloud for smarter business.

welcome back to "power lynch. before the break, we highlighted today's sunshine stocks, surging more than 20% on strong earnings on pace for its best daily performance since late january of 2016 and the name is -- drum rom -- under armour, for more on what's propelling the giant into the green today, let's head to sarah eisen at the new york stock exchange a big quarter for a lot of traders and investors out there? >> yes hi, dom, more that under armour's restructuring is beginning to take shape. behind the strong top you just showed is actually a string of very boring beasts here's what i mean gross margins, higher for the first time in about 13 quarters.

that's probably what had wall street most exciting inventory levels, off loading through off price retail the inventory glut looking better than the last few quarters profitability, improving and costs are being managed. >> that itself the story a healthier until picture for this company sales, though, were sort of under welling. north america has fallen for the past five quarters rivals like nike and adidas have seen growth here international continues to shine up 15% that's a deceleration from what under armour has been seeing despite the momentum kevin plank is telling investors he's cautious. >> we're not declaring victory we have a lot of work to do. we're not crazy of the you overall position if you ask me, i'd say, is business great i don't know if it's great i'd say if it's not business not great, i'd say it's not great. i think this is fine

if we can do this restoration of feeling and making strong this team and this operating structure, i think we will have, we will be something to deal with in about another 12 months or so. >> reporter: guys, plank has been promising wall street he has been fixing the execution issues borne out of growing too far too fast >> that is what propelled under armour in recent years, also starting in 2015 that led to a big plunge and questions about the maturity and the profitability. now their right-sizing the business and making a lot of improvement. that's why the stocks, guys, is up so sharply. keep in mind he's taking it to levels we saw in june. >> thank you, sarah eisen. next on "power lunch" a look at next on "power lunch" a look at what is behind the big firm' ♪

daddy, mommy's on the phone! push to get them on board. how are you guys? at&t proudly offers wireless and tv discounts to military, veterans, first responders and their families. visit att.com/hero.

big corporations are making and just got a huge tax break. but the middle class is struggling. prop c is a common-sense plan. the top 1% of businesses pay their fair share to tackle homelessness for all of us. companies with revenue greater than $50 million pay, not small businesses or homeowners. the prop c plan is supported by the democratic party, teachers, and mental-health professionals. vote "yes" on c.

big corporations pay for it, not you. well, let's get a check on marks right now the dow down about or up, rather, by about 130 points, down about 20 points in the last minute or so here. can you see the s&p 500 up five points, the nasdaq up about 12 the relative lager tech lagging the overall mark

how is it stocks are surging masco, whirlpool all jumping the home builder is moving higher pulte, tripoint, lennar up 3% or so, finally check out the media stocks, comcast, via com, disney in the green right now over to sue herrera for a cnbc news update. >> reporter: thank you very much here's what's happening at this hour, everyone, tesla says there is no reason to believe an auto pilot feature in a model s vehicle malfunctioned despite a florida driver's claim in a lawsuit. sean hudson suffered a broken neck when his tesla model s crashed into a disabled car on a florida road on the turnpike last year. >> no warning. no light, no slowdown, instead it plowed about 80 miles an hour into a disabled vehicle. >> the fda is ordering hair dye

makers to remove led from their products led acetate is used as a color additive known as progressive hair dyes. the agency is giving manufacturers one year to change those formulales. and hundreds of mourners dressed mostly in block, arising for funerals for cecil and david rosenthal, they were inside the tree of life synagogue if pittsburgh the two brothers were both if their 50s. you are up to date that's the news update this hour mem lisa, back to you. >> sue, thank you. sue herrera. the oil marks for the day >> oil prices are coming under pressure that closing down more than 1% amid signs of rising supply and concerns that demand could be hit by escalating trade sessions in china.

crude hit its lowest level since mid-august it is now tracking for its worst month. oil has been cut in the broader market sell-off this month it is priced to sell as a whole. >> that is down 13% this month it's the second worst performing sector in the s&p 500. >> thank you so much private equity juger knot blackstone is a few years into its push, already, roughly $60 billion of the firm's 50 billion under management comes from individuals and blackstone is not stopping there senior management director predicts in ten years, individuals will account for half of assets unmanagement. joan joins us now from the schwab impact conference in walked nice see you, joan. >> reporter: great, thank you. thanks for having me >> i go es the fact that are you at schwab says everything that you want to be in the retail space in years to come

>> reporter: exactly this is our second year at the conference we're meeting with a lot of independent advisers, still very early days, very large untapped marks for alternative investments. >> you probably have unsettled investors these days given what's going on in the markets what are you asking? what are you telling them? >> well, it's interesting, i'd say one of the most often asked investments is how do i protect my investors from interest rates? we talk about growth oriented investing, floating rates, credit product, and all the different types of funds that blackstone can off >> do you think we are about to enter in maybe we are already into it. a new era for active management? >> i do. so i think if you go back a few years ago, most individuals had no access to really high quality

alternative products that's because there weren't a lot of quality products, number one, but they also didn't have the technology or access it to i think that's what's changing when you are in a market environment with added volatility, concerns about rising rates, i think advisers are questioning what else can i do besides stocks and bonds to protect my clients >> have you seen an increase in interest and inflows into blackstone funds given the market volatility? >> we really v. and so as you know, we're not trading daily. i would say this year we'll probably raise about $15 billion from individuals, you knowback backed up about fourfold from what it was a few years ago. we have about 15,000 advisers putting blackstone products into their client's portfolios this year 4,000 of those have never put a blackstone fund into their

client's portfolios. so it's a real acceleration. >> joan, one of the things that we looked at when we talk about alternative investments is the suitability of appropriateness for a certain market are you going after retail type and investors and traders out there. what are you looking to do in terms of allocations what are you trying to sell them as to why they should be in these types of products? >> it's a good question. the qualified top purchasers, they've had the most access to alternative products the same funds institutions are buying. but the accredited investors, people who have 500,000 up to $35 million until recently, that i haven't had access so we have been creating the spoke funds for them, taking institutional quality product at institutional pricing and putting it in the hands of advisers and their clients so it's anything from a private reit floating reit, credit product a

direct lending product a daily liquidity hedge fund all of these are accessible now to the accredited investor >> are you hiring or partnering out of shop so to spoeak? >> we are partnering with wholesalers. we have people in the field working with advisers. then i have sales people on the desks supporting those wholesalers. so we have about 60 channelized sales people, whether they're focused on family offices the big warehouses, independent broker dealers or the iras >> joan, it's good to talk to you. thank you so much for being here >> thank you. well, nashville is one of the 20 finalist cities hoping to secure a head quarter. how likely is it the music city could score the $5 million project? scott cohn is in nashville

scott. >> each year we rank business rankings and tennessee has done very well kind of quietly over the years, finished 13th i don't have all this year quietly but with amazon picking nashville as one of the 20 finalist cities, maybe not so quiet after all. big haslem the 49th governor of the state of tennessee is with us a republican, in his second and final tour >> term. >> term that is, you go out in january, hq 2 would be a nice way to go out? >> it would, we are excited to be in the conversation with amazon we're a part of a non-disclosure agreement so we can't do too much i have been impressed by the data driven and human driven way that they've approached the issue. >> you said as recently as a couple weeks ago, you are in talks with them. which not all cities can say, can you give us any insight what are you asking them, what you are telling them

>> i can't they're asking all the questions you'd think you would be for a project this size in terms of the availability of tam ent, to where we would be in terms of providing the work force and i think they're being mindful on the impact they're coming into as well, again, we'll see. i don't know anything that you don't know about their selection again, i have been impressed they are being thoughtful for what works for them, also, they realize wherever they go, they will have a huge impact. they will certainly fault that out well. >> what's the case you are make income a nut shell >> two or three things, tennessee is in a great position on the map we gain about 25,000 net new jobs in the last eight years a lot of that because people realize how well they can reach their customers. we have the lowest taxes and death per capita in the country. people realize, we value people here we appreciate capital investment also the quality of life you talk to a lot of people and

move here and say, man, i didn't know how great it would be here, but this is a bright place for my family. >> let's go through some of that as you know, we use top states for business data. we graded nashville. pretty strong i don't have all, b plus a plus for population. you got that down. a minus, is business friendly. you said the economy is good b plus for location. infrastructure is good and all of that. where we ding is talent. a c minus. some because you talk about the work force the lowest concentration of the stem workers, crime, do we have opoint >> obviously, we'd quibble some. we've started addressing that several years ago, we announced our drive for 55% of our population have a degree or sert indicate

certificate. if you graduate from high school and don't have a degree, we'll provide you two years free of community college or technical school, fire chief are you 60-years-old and haven't been to school in 42 years so we are attacking that we are putting a lot more of our money into the stem areas, whether it be everything near income our four-year schools or specific trade type schools in our technical and high schools >> you said your non-disclosure agreement about what your bid is >> that has been the subject of debate here. you know there are states upping a lot of mo into companies look at wisconsin. what can you tell people to say you will not give away the store to get amazon here >> i look at this as business does it's a return on investment. we are average the number of jobs, average wages. we can calculate what that bheens mean to the stated and say is this a long-term yield? i think we have been competitive. i don't think we've done it in a way the people will go, hold on a minute, you are robbing from

our schools to do it tennessee 35 years ago attracted the first direct foreign investment from auto manufacturing when nissan came here because of that we're one of the largest automotive states. you have to go out and play offense. you can't sign a unilatera dis-- disarmament. is this our taxpayers? >> bill haslem we will see what happens amazon promised a decision this year, there is only a couple months left, a reminder, all of our top report cards for finalists. >> sauchg to much. coming up on the show, it's been a wild ride for the markets lately, what is causing all this volatility are the etfs to blame. e they hurting or helping?

e they hurting or helping? we will right before our eyes,expln aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for? minutes. so what else is new? how's your mother?

umm..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. 2018's volatility and sell-off had market watchers making comparisons to 2008 it could be a part of the problem. let's take you down to the new

york stock exchange where our own brian sullivan and problem pasani are standing by i heard you saying etfs own a roam your thesis is what, they're making it worse? >> some say, mellissa, it may have here's the problem you need a 100 page white paper to dig into the data to figure out what roles the etfs are having. talking to folks out there, names you would know about the role etfs play, they're saying, we're not sure what the role is. we know there is a big role because of this. look at the number of etfs where the fang stocks are top 15 holdings facebook is a top 15 holding in 98 etfs. that looks small compared to apple. 125 amazon then you say, okay, i'm going to buy an etf because of the diversification. we hear that "d" word all the

times. you hear the etfs, like the qqq 38% is the faang stocks. took at the bottom ones, fdn and pnqi 28% and two% without apple i'm not saying they cause a problem. but they have to be playing some kind of a roam >> that fdn is fairly small about $8 billion here's the pointant etfs, e -- point about etfs etfs are a wrapper if people want to sell, folks, it doesn't matter what the wrapper is you can own mutual funds, stocks if everybody wanted to get out, if they want to own fang names, if everybody wants to own them, suddenly they're not so popular, they will sell the etfs the mutual fund and the stock. brian, you know the mutual funds have had redemption in the tech

sector, they're selling because they want out of the same thing at this point. everybody gets out at the same time i'm going to ask you a question. >> i was going to ask you a question >> who owns amazon amazon is 60% institutional ownership, that includes the big mutual companies, jeff besos owns 16% the retail part is about a quarter. etfs are about 5% of the ownership of amazon. mutual funds own five times as many so my point is, the mutual funds you know are seen selling, nobody is suddenly going out saying the mutual funds are the reason the fangs are selling off. >> so fair enough. good stuff here's my question back to you, though let's say i own the fang stocks individualally i own five stocks. i decide to sell those, i put the orders in, they get executed or i own etfs heavily

concentrated i am told, you are getting fang exposure i sell the etf they were affected because the great weight of some of these names. if you are 40% of a 200 stock etf. is that difirstifiversified? >> it's an internet fund >> i'm not picking on you, i picked them out. they were heavily weighted with those names. >> clearly, we are concentration with a small number of stocks. it happened in the past. it happened in the 2000s with tech names >> i will say something that will drive you insane. i understand the law of large numbers. we need to talk percentages, not numbers. of the top 20 points decline for the dow. i know it's points eight have been this year. >> i believe that. >> because the market has gone up, the numbers are bigger only six the biggest point declines have been this year, of

the last four years, 11 of the biggest gains, only six of the biggest drops. >> in other words. >> are you following this? >> here's my point, elvis and costello >> which song? >> let's go until 10:00. >> you guys are good >> go ahead. >> we got all day. >> the show end in five hours. >> it's all good >> volatility seems to be exacerbated on the downside, if it was all equaequal. wouldn't we have the same points it's moves up and down >> guys, i would point out we're not talking etf rz second to liquidity. can you buy and sell them interday >> and i didn't want to say that, because i felt it was complicated enough >> are you guys done now >> the wrapper doesn't matter, when everyone wants to sell, it doesn't matter what the wrapper looks like >> i understand. good debate, guys. thank you. >> we should take this on the

road coming up -- >> i'd stickio your day job -- to your day job. >> social media surprised to the upside what you need to know headed what you need to know headed into whooo! that's coming up next. w heights? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new york! from bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so you can make your next trip... monumental!

. solid gains for stocks across the board the fang stocks have been under fire in the previous two market sessions four fang names they have lost 200 million dlard $20 combined market cap. let's bring in senior analyst over at pif toll votal researchp what does facebook have to tell you today to get you more optimistic on the stock? >> that is up to anyone's imagination here i don't think that they have complete control over what's happening to them. i don't think they are aware of

the scale despite statements they have made i think the things that would probably make me more confident in the long run would be disasterous in the short term. problems like what happened in brazil where they didn't shut off features that encourages further fred of fake news there there is a lot of problems they don't seem to have a handle on >> it almost seems your price target is generous >> i look at it tlau long term lens there is something very durable

about facebook a lot of infrastructure. that's lot of capabilities the sorts of things they might need to do could be very damaging in the short term but they are probably necessary in the long run what's the right price target? i think it depends what expect ta ations are the revenue decelerations are the main thing i have been focused on everything else is like trying to anticipate further disaster at a special sense the revenue deceleration story is important most don't understand that digital advertising has true limits to growth it has been a main factor if they come in and give up margin guidance will you believe

them >> you know, i would take them at their word that this is their best guess i think generally they have been overly optimistic about their ability to handle problems i this i the risks are still to the downside >> all right great to speak with you. thank you. stocks are gaining steam as we head into the last hour of trading. we are off of session highs. 1% gain. a 1% gain clean on the dow jones and nasdaq is up what to tcwah as we head into the afternoon straight ahead

♪ a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief... or a cause for celebration. ♪ what's inside? ♪ [laughter] possibilities. what we deliver by delivering.

picking up some of the areas that have been beat down the hardest. >> they could be >> i am watching they are going back up to session highs right now up more than 3%. as we mentioned, this is another area of the market that we lost. the question is this a real bounce or just looking for the junction in the market

>>. >> dow is up and our show is dpoing to -- going to end on the highs of the day nasdaq, watching that. facebook is down 5% from its highs. a lot of stocks if that space were up today except for amazon. >> that conference call starts at 5:00. thanks for watching. >> closing bell starts right now. >> it is time for the closing bell will the market be able to close in the green stay with us to find out >> after the bell we'll get results from the last fang name to report. facebook, can the social network save the tech trade? we'll have full result