>>. >> 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 results coming

up . >> tim cook taking the stage in brooklyn >> i'm excited to introduce an all new mac book air. >> we'll talk about the new g gadgets. closing bell starts right now. >> let's check on the markets. to dow falling now we are going bab up about 300 points on the dow. you remember yesterday we had what cramer called two sessions during our final hour of trade here >> we really did how often does that happen we are doing that with bob a few minutes ago talking about these big swings we are up a percent right now.

nasdaq a similar story in this last hour given the volatility anything can happen the nasdaq continues to be on pace even with today's gains for its biggest monthly loss since october of 2008. kind of an ominous date. michael is looking at whether it was the wash sout that many were looking for. ge sinking again michael, let's begin with you. wez yesterday the wash out >> in the enough evidence to say that it was. you didn't see that really decisi decisive lower you have over the course of last couple of weeks seen a build up

that leads to the question one incater we did hit yesterday was something called a tick index. it had the widest range since 1990 it means it was a massive all inclusive selloff followed by an all inclusive respond. it goes straight down like this. you have to reassess the rallies as they come you did see it come down that's one of the ingredients but i don't necessarily think you can have an all clear. it is a process. it was probably a big piece of that process of at least getting us relief on the upside. >> all right we'll see you in a couple of

minutes. the story here was not just a beet but actually the best growth we have seen. i'm talking about 6% organic revenue growth coke is growing, that is brand coke diet coke is finally reasonating after years after declines perhaps thanks to the new flavors and slimmer packages waters have also doing well those are some of the highlights it has been a much more difficult environment economically >> i think it's clearly as we have gone through the year the headwinds have got a little tougher. the macros around the world are perhaps softening a little particularly in some of the immerging markets are coming in and we have seen that effect us.

we are bringing money from around the world back into u.s. dollars. it has turned into more of ahead wind coming into the second half of this year >> and the strong dollar did shave a few points off the bottom line. coke has implemented a turn around spinning off all of its bottlers focusing on beverages that are growth brands, simplifying the business and heavy m and a they both came in the last few months. sit a pace he says will not necessarily repeat itself going forward. also realizing the multi-year turn around. they are dealing with the strong

dollar and everything else >> would you dare say soda is back >> i would say it is coming back thanks to a mix of marketing and innovations like flavored diet coke it has been declining for the last deck died they are getting a lot of growth out of waters and teas and that sort of thing. >> maybe ge should start selling soda >> maybe they should start doing something different. let's turn to the former dow component. the stock is getting crushed after the company slashed its dividend eric has more on the quarter >> the stock briefly dipping below $10 for the first time in near l nearly a decade. it is a decision to free up more cash it is one of the first notable

moves from larry today he reiterated earlier plans to spin off the health care unit. he also announced they will divide the struggling power business into two units. there is no upgraded guidance. ge did see an initial positive reaction to the report the news that sent shares lower is that it has expanded the ongoing investigation to include the $22 billion power charge and that the doj has opened an investigation into those accounting practices ge shares at their lowest levels since march, 2009. they have lost all of their gains and more back to you guys >> all right thank you very much. we have got now a market flash on papa john's it is moving in a big way. kate is telling you why. >> stock moving higher by nearly

7% they are among the firms that are looking to acquire papa john's snyder has multiple lawsuits against the company since he resigned after admitting to making a racial slur earlier in the year if you remember they did tap bank of america earlier to kind of work with the company as this crisis is going on the stock is up by more than 7.5% it is on a report that they are among the pe firms that are to acquire papa john's. back over to you >> all right thank you very much. stocks still down 21 bank account ov-- 21% over the last months we have barbara here, sam and

rick i have a simple and some what porcht question -- important question for you is what we have seen for you the start of a correction that will ultimately reverse or bare market that could last quarter or years >> in my mind it is very clear it is not the start of a bare market market is very concerned about rising interest rates what is interesting to me is revenues you have uncertainty any worries about the trade, the feds, thinkty market will stabilize near a bottom. i don't know where but i think it will happen after midterms. i don't think it has been a factor in the correction i think

it will be over the next ten days waiting until things stabilize. >> do you agree this is a correction inside of a still stronger market or the start of something more worrisome >> i think we did not see the flush out yesterday as michael had mentioned earlier. basically 70% of the time when we have had two such declines of five plus the second one has been deeper than the first my estimation is mor -- technicals it would represent about a 12 to 14% decline which would satisfy my opinion the need to reset the dials. >> so one question is what stops the bleeding here?

>> everybody likes to wine about the messenger. listen, whether it is mr. powell or somebody else, somebody had to get the broom to sweep up after the central bank parade. lights went on the rooms messy. the stret is messy they need to do something. we should thank god we have a central bank that is trying to find some normal activity and trying to set the stage for a more normalized policy in the future >> there is nothing wrong with the real economy nothing wrong with it at all it doesn't mean there isn't a logistical pile up on the

financial assets that make up the capital markets. i think that's what we are going through. we have had some pretty decent policies in this administration that are good for the economy. it is evident by an 18 year high not all of them are on their highs. in the end we have seen a lot of piling in over the last five or six years. they will have to get their legs back and recalibrate with the real economy >> most agree the stock market is not the economy it is supposed to be a discount ideally. >> i think if we have reality not a lot is going to change >> even if we had democrats not

like we have democratic sweep, if we do then the perception is going to have an effect on the market in terms of what can be done i don't think it is a factor of what is leading into it. >> it's called politicking >> history would dictate it isn't as business friendly if both houses remain as they are today let's see how the market trades the day after the election >> sam, do you agree with that i'm not asking you to wade into that world of politics we all might need a hot shower after that let's say the democrats take the house as most are predicting maybe they try to impeach the president during nixon's term

when he was being investigated for two years. the market slowly bled off for two longyears. the if the republicans lose control i would say we go into a gridlock kind of environment it is a republican president with a split congress provided about a three and a half percent price appreciation. >> big closing bell discussion

and one we appreciate. >> we'll have much more on this late day rally we sit near session highs. the dow is up 306 points we are less than one hour away from one of the most crucial moments of earnings season they are gearing up to report results. last quarter they lost more than 100 billion in market value on disappointing results. >> after the break the ceo joins us to break down the american consumer his stock had a major reversal his stock had a major reversal we'll be right back. checkout is at 4pm. plenty of time to enjoy your ride. (bicycle bell sound) ♪ ♪ (bicycle bell sound) ♪ ♪ (bicycle bell sound) ♪ ♪ explore more with a guaranteed 4pm checkout

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street has been praising as very good results >> we are excited by the quarter we just put in investors take time to absorb the results and the stock price will reflect the fundamentals. at this very period we are celebrating with this acquisition one year ago and continued progress and trend following some of the executional issues >> you know, on your call you talked about things we normally don't hear you talk about an sap. you talk about merging all of the software systems you talked about bringing it down how much of the retail story is this underlying economic

strength versus being able to manage a leaner organization on the internal stuff >> i think it's both we are very excited about the platform that we are creating for sustainable long-term growth our strategy has been the transformation of the coach brand having transformed to a brand that is more relevant and at the same time creating a platform where we could leverage the strengths whether it be somes to allow for sustain ability and the platform and talent we have to help brands grow globally. we have seen great performance over the last few years. >> i wonder if it is the source of some of the anxiety you said you don't force a lot of products from china

>> that is correct we started in 2011 diversifying to other markets across the world. today in fact between 3 and 4% of or handbags come from china we don't see a great impact from any duties. >> sit much smaller parts. the team is working incredibly hard >> the mall has been shrinking have we seen now the smallest mall we are going to see has the death of the mall finally slowed down? i'm not sure it has.

>> we tend to be a little moreov moreover -- more overstored. some don't have the differentiation that allows for survival >> how do you adjust your retail footprint given that >> we have made tremendous strides. today for example coach has approximately 500 locations. less than that actually. we feel that we have right sized our footprint and we will value as leases come up whether further shrinkage is verified. >> we are sort of following in your footsteps of a house of

brands >> as brian stated earlier we have been incredibly hard at work and we would love to leverage it. at the moment we are incredibly focused on execution around our organic business we have been very consistent it would be the second priority and we are -- we'll be there as opportunities come >> what do you see for the holidays >> we remain optimistic. you guys have been talking about it all day when we look at the consumer and look at an all time high obviously unemployment quite low, inflation some what under check and a holiday period where thanksgiving falls on the earliest day possible allowing for a couple more shopping days

it bodes well. globally we see a very good signs as well irrespective >> and he said it was the strongest consumer he has ever seen is that what you're seeing >> it is pretty robust all of the data in that direction. >> thousand dollars bags under the tree this year >> we have a very wide range >> i knew you were going to say that >> we have small gifts in the 50 to 60 to $70 price range it is in the 300 to 500. >> it is a tapestry. >> our product line up -- >> dare i say that >> it doesn't include the outlets which are also very popular. >> yes >> thank you >> thank you >> victor, the ceo of tapestry looks like we have a little under 40 minutes to go the rally holds on s & p 500 is up a full

percentage point all sectors are green right now. 2% gain in materials and energy also leading the charge higher shares of under armour surging today on the back of a block buster earnings report later on $200 billion in value lost on just the fang stocks in the previous two days. more than half a trillion evaporated since july. we'll discuss facebook's upcoming earnings in a few minutes and the tech sector at large. large. stick aroundt first, but jj can. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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welcome back the dow holding a 350 point gain let's check out individual movers i'm watching under armour surging today. part of the revenue beat thanks to strong demand overseas. it was really, brian, the boring metrics like margins which actually were higher for the first time in 13 quarters. inventories which were sharply lower. now they are below 1%. the financial picture of under armour is improving. that is something that kevin promised that he would turn around he hired a good execution team

like patrick, for instance, who is now his president and number two and they are turning around the business on the bottom line. >> they will hear about how we'll improve the top line which is the big star for under armour there is a lot of optimism going into that. i would say a 20% surge is one of the best days ever. it takes us back in june it has gotten up pretty hard >> up 20%. >> for sure. >> all of the boring stuff >> absolutely. >> you need to cut down the costs. pricing is everything. he is building up this hotel empire he has his horse racing. people might be happy to see him

like he is a little more focused on that business again >> and you heard a complete change in tone from him highest profit in five years on the back of strong crude prices. i get it last quarter prices came up. get this bp said it is generating so much free cash that it could funtd its entire $10.5 billion buyout of business just with cash

here is the theme that we hear so many investors got burned by the oil and gas companies that they have kind of given up on them we are hearing this frustration. it doesn't matter the kind of results our company is putting forward. investors have left and said i can't handle the volatility. the oil prices or gas prices, these stocks have been up and down and moving onto other things we'll see if these kind of corners. time for cnbc news update with sue herrera >> sheer what's happening at this hour. during an event in washington vice president trump's efforts to end birthright citizenship is part of fixing a broken immigration system >> there are things that human

traffickers actually use to entice families to make the long trip north of the peninsula. >> he will run to succeed as leader of the christian democrats. merkel saying she will step down ending a 13 year run here at home the world series ratings declining from last year. a mere 17.6 million people tuned in to watch the red sox win their ninth championship it is down a full 7% from last year and 25% from two years ago. all five games trapped from the match up from last year as well. some of those games ran really late that could be part of the

problem. back to you guys >> i was not up for that >> he woke up and watched the end of the game? >> no. you it happened to be 5:00 a.m. and my husband was asleep in front of it watching the end of the game we have about 27 minutes left we are seeing more volatility. it is now benefitting us the dow is up 360 points bob is watching what is driving the moves here >> let's take a look at the s&p. what we'll notice here is we are not getting the wild sell offs

to take us deep into territory the dow moved 1% in either direction four times today it is rather remarkable. here is what you want to see right now. the index down today, 23 and change that's certainly very nice by the way, what that means is participants think it will move up or down 23% in the next 30 days here is the bad news, it's very elevated there is your cash contract. futures are much lower, 21, 20 and 20 that tells you participants are freaked out. this is very unusual it means that generally the market will calm down. yet it has been this way three weeks. i can't remember the last time an indication of the high volatility we'll see what happens tomorrow. back to you. >> thank you very much

the nasdaq is on pace for its biggest monthly slide since all the way back in october of 2008, ten years ago. en with today it has ban lousy month. >> yes take a look. having is best bounce back since march it looks like. it includes the equipment maker. it is saying it is one of the narratives people are trying to figure out whether some of these companies that are talk about poor demand, it is a secular thing or whether it is really an industry wide thing. we are also seeing an upgrade over at jp morgan. it is helping things move higher overall.

back over to you anchts new wave of tariffs that could be coming. we have more on the reaction that we saw overseas >> worries of an escalation initially sent chinese stocks lower and they quickly rebounded after they rushed in to boost investor confidence to enhance liquidity measures it is another attempt to calm investor concerns. in the month it is down about 9% basically in line with decline we have seen for the year the chinese market is dramatically underperforming. we'll get a read on manufacturing activity and it will likely show another slow down keep a close eye on that number

when it comes out around 8:00 p.m. eastern, brinan >> all right right now let us bring in chief investment strategist who says a major bottom is approaching in the market right now all right. major bottom, what are you seeing that makes you say that >> our short term model flipped a cell signal. we wrote about it and told people to sell short-term trading positions. we did nothing although in some cases i wish we had. it is targeting mid-november as the first logical place fa major market low and beginning of the year end rally. >> okay. so if you believe -- if our viewers are watching you and they believe jeff is right again a major bottom is in where are the opportunities? is it buying the stuff that is sold off the most or is there

some kind of better rotation that we are seeing now >> i still like technology hlt care has been in pretty good shape. i don't like consumer staples. >> everybody comes on this show and on this network and says it's improbable to ring a bell what is this trading mad mod l and how often have you called it before >> it flipped positive in october of 08 when most of the stocks bottomed. the averages went lower because the financials kept going down the long-term model has never turned negative. the short term model flips more often than the intermediate model. we called it on september 23rd of '99 we called the bisignal in june of '03 we called the bottoming process

between october of 08 and march 2nd of '09 >> those are the mustache days >> you got that right. >> it is good you have all of the dates on the top of your head like that what about some of the concerns, higher interest rates, tariffs, you name it? >> i have been hearing >> are they sort of repriced >> the s and p was trading at 13.4 times forward earnings. it is in the about repricing for earnings next year it is about china, midterm elections and this is about the fed having a more hawkish tone >> why is it such a surprise though sit the measure of freeds expectations sit forecast, light braight, whatever you want to call it

suddenly everyone fears the fed. i don't understand why when the fed now is not much different than the fed 21 days ago >> i agree with that i think stocks are cheap and i think they will bottom here in the next few weeks after raising cash at the beginning of october we are looking to put that cash back to work >> i think what the problem is that the fed has been raising rates, yes through 2015 and isn't change up the forecast the problem is there are signs that the fed is missing saying housing and semiconductors, you name it, you look at industries and you have a fed hiking into what could be a turn in the cycle. >> we could also point that the economy remains strong and housing is slowing down. maybe if people buy fewer homes they will buy other things if you buy a home you're not buying a lot of other stuff.

>> yeah. that's fair point. >> it shifts it. >> analysts have told investors they would get back to a 1.5 million unit run rate. 40% of that is first time buyers they are not buying the first time homes they are saving their money and buying the higher priced move up homes. so i think that's disappointing. it is just as impactful as a slight increase in mortgage rates. >> a major market bottom call and plucking the dates right out of the air >> that is impressive. >> you got it when you a track record like that >> thank you very much >> thanks, guys. we are about 19 minutes away before trading closes. we have the kind of wild moves like we did yesterday. you have to stay tuned to find out. >> tech focused hedge funds. we'll hear how smart money is

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>> when we come back how top hedge funds are making money 6 off of all of this volatility. you'll hear that coming up >> counting down to facebook earnings we'll preview the things investors will be watching for investors will be watching for in the report coming up. what do advisors look for in an etf? investors will be watching for in the report coming up. i tell clients, etfs can target your goals?x,but whis it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs

are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

takes more mathan just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest.

i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. all right. welcome back we are in the middle of a market rally. the dow is up nearly 400 points. what a turn from yesterday or the way we closed yesterday because we opened like this yesterday. then we sold off the 900 point swing. all 11 are higher. energy up more than 2% right now. >> the common thread is nasdaq

dipped into negative territory early afternoon before rising again. this has been very characteristic of this market all over the place >> it is all over the place. >> once it calms down somebody will have to figure out why we are seeing massive swings. the volatility is certainly still there. top hedge fund manager gathered at the conference offering incite into their latest bets and of course this market volatility. leslie is there with highlights. hi, leslie >> those recent price swings especially in the tech sector you guys were talking about, very much in focus in san francisco yesterday. the vent comprises of about a dozen hedge fund managers right now. this year there were actually very few tech ideas and only one long in the internet space touted farfetched the british e

commerce company it was up almost 30% last year thanks to the technology shares. we asked him how he is repositioning this year amid the recent selloff >> we, you you know t trade that a lot of people talk about, we did have a large position in facebook we sold that several months ago. we have -- we have kept a large position at amazon >> another presenter told us he had been spending the last few weeks shorting names that people loved that are now down 30 to 40%. >> we observed there is a lot of crowding in the tech space

>> it is kind of the anointed winners. >> simon decline today say what he was shorting. on the long side he has been adding to netflix among his names at the moment. he presented along in the new york times a former employer at the vent yesterday, guys >> you know, leslie, i don't want to throw your under the bus not in the electric trolley or what they have these days. >> charlie is still there. >> were you able to be in the room >> yeah. we were. we were able to be in the room >> was there the ah-ha moment? a lot of times a big lead up, reveal the name and sort of the whole room would scatter people typing out their orders on their phones immediately. was there that kind of a moment? >> i think there were a

coupleovcouple of surprises it was unique for the conference where you get a lot of people in this technology media. here is a known tech investor choosing a media name in this current environment. a lot of talk. there was a funny joke before doing that he said i would like to buy everyone in this audience a drink, if i could, but instead i will do the next best thing and pitch a company that makes beer instead it was clear that the elephant in the room was this volatility. people were almost using the event as a way of sorts to try to bounce ideas off of each other. it is no secret that hedge funds have not been handling this market very well >> absolutely. thank you very much. just want to point out what's happening with the dow up

more than 400 points we promised you a dramatic closing session. that's what's happening. pushing the dow almost up 2% energy is leading the charge after the bell today we'll get more earnings results. electronic arts, t mobile and many more. we'll have those results coming up at the top of the hour. >> so a lot of earnings are due out. it has got to be facebook. the last of that group to report their numbers. investors grading facebook with an f this year facebook is down more than 30% since it last reported in july of course much of that coming the day after. it fell 20% and lost over 100 million or 100 billion in market value on the back of those disappointing numbers and costs

going back up. tonight's earnings could set the stage for not just within this group but maybe the broader technology sector as well. amazon, netflix, alphabet all lower. amazon down 8% netflix off 14%. alphabet down by 5% as well. the so called fang names losing more than 200 billion in combined market cap just since last thursday. wow. >> all right let's talk more about the media. we have the one key thing to watch from facebook thoon side i have to imagine it is the cost and security >> perhaps the most important thing is facebook's user engagement and growth. the numbers will face scrutiny after twitter and snap reported greater than expected user declines and after last quarter facebook showed declining users

which attributed in part to european privacy laws. so they are eating into usage and how user stagnation could impact the financial resolves. they are expected to decelerate and earnings expected to decline. back to you. >> thank you very much we'll watch those engagement numbers. want to bring in mike. five minutes until the close facebook shares up 3% into this report it is sort of what's happening now with this bounce back in tech and communication services and a lot of other sectors >> markets sort of flowing a little bit into the names that have been undually punished. one of these rallies was going to stick we finally got this balance. i think on the short term because there's an impression you might get relief it seems as if you expected anymore of this kind of forced

selling, this systematic stuff we have seen did not see that today once we got to about 2:00, 2:30 this afternoon. i think as wild as the swings are it is perfectly expected once the market has gone straight down by 8 or 9% this is exactly how you kind of -- you know, you're always on a bungee cord but you don't know how long it is >> it is kind of a you move first and i'll react to that >> you have been thoroughly unimpressed with some of the rally attempts does it feel different for you >> i don't think the sort of characteristics of this exact bounce are necessarily more persuasive it isn't that great. it is not necessarily a furious buying it is coming at a level after enough of a kind of success of selloffs here. it all makes sense it could be one that matters the market has been fighting out

this battle far yeor a year to flat line. i don't think the market needs to go down much more so i think we can lift here. s&p in the middle up 1.5%. want to go back down with the count down >>. >> thank you very much obviously a big day if stock iss coming way back. it is one story that did not get better investors hated the numbers and hated everything they heard about it ge has not been able to get out of its own way this is one of the widely trade

etfs the reason we bring it up, kevin said listen, if you want to know where the stock market and the economy is going you look at the bond market. you look at junk debt. this went up in other words the market not selling off some of the bad debt out there today. of course you got to watch this as well. facebook, a lot of earnings tonight. facebook is the big daddy. it is the f in fang. in the last earnings those earnings will be crossing. we'll have those and immediate instant reaction wow, yesterday we were down and volatility is going both ways. >> it is remarkable. the s and p moved 1%, four times today from the top to the bottomment y

bottom you don't see that four times today up 1% down 1% >> and you had a bit of ahead fake on the close. most of that was in one stock we are off of the highs here. still a great close. they are energy stocks, all of them are up today but not dramatically >> a rare valley >> those are good moves. oil services, energy beaten up >> let's see if we can get back to back updates. >> we have only had a couple of up days in october >> it had ban long time.

>> all right ringing the bell at the nyc and microsoft ringing the bell i don't know if bill gates is in there. what a day >> let's kick it off with a big final hour here. >> what a day. markets go for another wild ride welcome to the closing bell. brian is here in just a moment senior markets hasn't had a lunch break in a few weeks >> it because strong finish to another volatile day s and p closes up 1.6%

the dow pops 1.75% this was enough to send it back too positive territory for 2018. still an ugly month overall. it is a big day for earnings get ready after the bell here. we are covering facebook we'll have results from e-bay. meg is honoring and we'll have m gms numbers. we'll have the results let's get to the market and talk about another wild day we have managing director and market strategist here along with cnbc contributor who is up at our stock desk to react to the facebook earnings as soon as they come it

biggest winner was intell. ibm was the biggest loser. it is up 60% how did the rally feel to you? >> the market was conditioned for one of these >> only six days up in the month of october >> today's rally got it back exactly as much as we lost yesterday. we are kind of toggling around what we hope as opposed to making think new hedgeway. >> you heard him talk about how we feed back to back updates we have had exactly zero back to back up days this month. >> yes and there have been only a couple dozen such streets, 27

days in the history of the market so yes, you have due for something like this. it is not something you want to sfleez at. you need it to start with something like this. it is which wl this comes out. >> was there anything specific behind the bounce today? yesterday we blamed the sell off on talk out of tariffs the day before it was an earnings stories >> from a timing stand buoyapoi, you know, welcome back to the yoyo we had the amazon and google earnings yesterday we were chugging

along. >> we need something here. i'm seeing a lot of companies getting pounded on for no reason look intell earnings not bad last week not bad >> earnings have been good for the last couple of weeks nobody seemed to care. i guess my question is to mike's point why suddenly now the volatility the 1% moves, why now? >> 1% moves in today yesterday it was 103 points. that's not healthy >> 900 in the dow. >> sure. >> not healthy either. >> i'm getting to the point where i'm starting to hear about how people are doing october there are some throwing in the

towel. next tuesday we have this midterm election if it doesn't it is a big overhang it will be out of the way. people can focus on other things >> let's talk act what we got from earnings. there were a few notable winners tonight the focus has been on the negative >> no. i don't think it turns the tide. what it shows is that the market is still capable of reacting at least in isolation i don't think it will be everyone deciding that oh, wait, we were wrong. earnings are worth buying here as across the board proposition. i think some times earnings season goes like this. stocks go down enough that they

are susceptible. i think you can probably do it. >> facebook number have a revenue miss let's go to meg. >> share at $3.69 on adjusted basis. revenue 5.9 billion in the quarter it is being raised to $14.25 per share back over to you. of. >> thank you >> let's get straight to the facebook earnings. julia has the details. >> they are breaking down the

results here earnings by a hair coming in at $1.76 per share. i'm sorry. earnings beating estimates coming in at $1.76 per share versus estimates of $1.47 per share. a big earningsmeet daily active users coming in at 1.49 billion for september and that's an increase of 9% year over year. it is a declining growth rate and lower than 1.51 billione 1.51 billi

1.51 billion estimated if you look at the totality more than 2.6 billion use it higher than last quarter. more than 2 billion people use at least one of the family of services every day on average. >> it is a quote saying our community continue now they use one of the services daily it is for private messaging and stories. so trying to spin that story forward. back over to you >> thank you very much a couple of other things that stuck out on a facebook story, guys, here is what everybody focused on last quarter was the cost

facebook adding nearly 50% more people revenue up but costs up 53%. one thing that may have helped that big eps was the tax rate fell to 13% because of some supreme court decision it sounds like it added a bottom line >> which explains why the market is sneezing at the moment at least. >> it's kind of your story going up that are up 33%, something like that. >> so obviously i don't necessarily think it is the verdict in terms of how the stock is going to react. we are at this level where we kind of broke out. >> it was good but still a touch lighter than expected both on daily and monthly. it is revenue growth as well the stock set up was ugly and to the results down year over year. to get a reaction like that.

>> when they don't make that much money, if you join and i join they don't make that much money. they need it to go up. it kind of went up it went up year over year. it is a cost story as well when i see costs go from 5.2 billion last year to 7 7.9 billion they can say they are investing to make sure they are secure but it is a huge jump in cost. >> when it came out i was was here everyone is going to leave it is going to zero. it didn't happen 9 to 10% increase in users, i look at this stock and it has a lot of people hating it. a lot of pain being felt out there. they are still in the process of throwing in the towel. it is happening in the past couple of months in these moves. i still say the kind of both these companies show works

this is where the growth is with retail that's where i am right now. >> it is called the death star not the terminator >> yeah. >> it was the conference call that really shook investors last time when they predicted growth would slow very much it is a risk there >> it is a risk there but also the opportunity for clarification here i think what the street will want to know is what you project to be the run rate of this operating cost what can we expect from origins down the road? i don't think i have been saying it for months, this team had no incentive. >> all right let's get more on the facebook story. very important here. ed is joining us

the market is reacting what is the take on the number >> i am looking at these numbers, the monthly active user and daily active user. they missed on both by a little bit. you could argue they were in line or in range facebook as you have been talking about, they have been warning us for a few quarters that growth will start to slow i think it tells us look for more add vvertising to start flooding the time line i think it will be the tough call they will have to make. with am son that is another alternative that they are looking for. they need the third alternative. they want to break that. this is one of the first signs of you know what you'll see more ads in your time line

that might hurt them >> thank you stay with us we'll go back to julia who has more details, julia. >> just want to pioint out it grew year after year last quarter both of those numbers were 11% growth. we are seeing a desell raticele growth here. we see trying to draw attention to the entirety. it is trying to say we have what's app and instagram and messenger. we are trying to see that the growth is really slowing if you look at why it was so significant it comes down to the fact that capital expenditures were much smaller than expected. the company saying it was 3.34 billion the real question for the earnings call is what the gui

guidance is for capital expenses for the full year and for this fourth quarter in particular it was last quarter and a couple of quarters as well when they talked about it being much larger than expected, that the stock took a tumble. we see what happens when they say that again a lot of focus on that >> thank you as you're peekispeaking the has recovered. i would point out facebook gets a lot of bashing on this network and the privacy concerns and it has been an under performing stock. l 6% still have a birating on this stock the target is 203. we are way below that. >> you don't necessarily need it

>> i think everyone's earnings model, it stimkind of works. we got used to high evaluations on these names it is a much more value. >> i don't want to knock analysts we have them on this show. the average price target ranges from 131 on the low side to 275 on the high side the same people who probably went to the same business schools have such a widely different model or variance of where they think facebook will go >> on the way down here i was reading a letter from a very well represented tech hedge fund the insinuation was they lost money on the long side and short side a lot of names crowded names with 86% rating. the analysts having a buy out. they may have covered it a

little bit earlier it went away i'm starting to wontder if it is coming back now. maybe that is what we are seeing now after hours >> after hours first the second kwartder report not comparable q 3 and full year 2019 guidance is light that is why the stock is moving. a bit concerning that stock is now down 4%. let's pivot that is up an earnings and revenue t-mobile

did beat for phone subscribers you're blooking at share higher here back to you. >> all right thank you very much. >> you talk about kind of the mighty falling it is way down it had the same kind of ramp to the acceleration that facebook did. it has a huge private investment if you want to analyze this you need a lot of 14-year-olds in about five different countries

lts get the latest >> hi. the big beat here on the top and bottom lines it comes in at 24 cents versus 19 ets mat revenues coming in at 0,303 billion versus 2.95 billion. the games and nongaming was down they say in part because they had to spend to open up the m gm springfield let's take a look. they opened up the m gm in february but it disappointed this here. it was an estimated 662 million download jim said he does not want to give guidance anymore. he thinks it disappoints the analysts he said they are expecting

numbers to go up on revenue per available room in las vegas next quarter. he is exchied about focusing on opportunities in japan and winning a games license as well as opportunities in sports m gm purchased 6 million shares at an average of 28 million per share. you can see they lost money on that deal. >> thank you very much it has been a bizarre sector. m gm down 20% this year. >> in terms of what's going on

with boid it is secular change we are talking about how great fortnite is. i don't think kids are aspiring to go to vegas there is a feeling, it could kmang very quickly there is a lot of uncertainty. we are seeing that let's see where that all goes. i think there's a lot of wood to chop there >> yes certainly coming in better than expected >> it has been down for months it shows you there's a lot of consumers where it is a show mf me situation >> let's show everybody more on facebook at least. had some time to dig through all

of the numbers >> i want to look at how it is looking at the u.s. and europe the average per user is flat they spending more there is a lot of abuse on the system there is fake news it is costing them more to get the same return at least in the u.s. and in europe i think asia is growing a little bit. it is not as fast. i think there's a lot there they need to address. >> hey, i will ask you to opine. whats app and instagram used all over the world is there a way facebook can

better monotize whats app? you know the fine line is if we all -- if sarah starts to see more ads it becomes less cool. >> there is a shopping add >> yes there is -- well, so advertisin for whats app it will be a part of key monotizing it that's the reason why the founder left they clashed with over finding ways to find spon or ships. how much more. >> i left snap chat to go to

instagram. >> kpp tagtss got pounded down enough i won't say up 1.5% is the verdict either it will have to find its stock >> i feel like no one died you know, am zone, you look at guidance is why. google same thing. they fell a little short there's nothing incredibly surprising here. they spend a lot of money. let's see where it all goes. >> and the question with these stocks is when they were soaring every day people were too confident in thinking it was a one way trait.

you don't know if they have to overshoot more to the outside or not. apollo global management is in advanced negotiations to buy arconic. at the current offer it works out to about $23 per share the source on this says that the negotiations are ongoing the price could change so it would be an $11 billion deal apparently they are very advanced we reached out and they gave us no comment on this story that's what's happening. that's why the stock has been moving after hours trading now up almost 7%. back to you. >> thank you, sue. comment on this stock which is down 20% over the last year?

>> it became a special situation. >> it was the first stock that reported an earnings from the dow. it wasn't the dow. then it split in half. the ceo got fired for some bizarre letter >> we are talking about the public stock market here i spent a lot more than i did a year ago people were still guns ablazing there. >> you're talking deals >> yes there is a lot going on. we have seen the news stories. >> why hasn't the market swooned down in october? >> because you're still seeing the opportunity and you're able to think longer term you're not playing pinball all of the time. >> it is the scorpion and the frog deal makers make deals they have not sits on hundreds of billions to not do anything

they doing it that as the public market shrinks has gone down from the first time i reported here in 1998 it has expanded. they will keep coming in like papa john's. >> when the average stock is down and credit markets are saying fine, we'll finance your deals what are they suppose today do >> thank you for joining us. >> thank you stick around with us >> facebook shares have been volatile after reporting some weak are than expected refr knew and weaker than expected monthly active user numbers. we saw a huge eps as well. we'll tell you about facebook wland it could mean for the sbir technologiesor f the entire tech sector as well stick around 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. >> here is what's happening at this hour. president trump plans to pay his respects follow ago deadly

synagogue shooting over the weekend where 11 people were killed the president is expected to visit the tree of life synagogue where that shooting took place a federal law enforcement official says mobster was killed at the west virginia prison that he was just moved to he declined to offer any details. he was 89. he had been serving two consecutive life sentences after participating in 11 murders. new york mets introducing their new manager. she a former agent for some of baseball's biggest names including the mets players he will have to divest from all of his clients and turn them over to other agents you're up to date.

that's the news update back to you. >> all right thank you very much. appreciate that. now let's go back and get more on facebook after being initially down when the numbers came out facebook stock is higher now despite some little bit weaker than expected revenue. the stock nearly 2% higher the revenue a hair light of wall street expectations. they are saying there were foreign exchange headwinds totaling $159. the revenue would've been pretty much in line back over to you >> thank you very much he has power points.

scott is here from cfra research i will start with you because you're here. your take on the facebook note costs up >> clearly the knee jerk reaction the headline is that you missed your top line number it will take you to the wood shed when you peel back the onion the fact that they increased and they were able to beat earnings by that much you see that. >> they had a better tax rate. >> to your point 33% revenue growth was a slight plisz. the context is key it was down 30% from the last earnings call. >> the margin was so important because they threw out this number that margins will di grade to mid-30s >> what's your initial take?

>> what i think about this is actually quite different than what john was saying look, there was reference earlier that this is 20 times earnings one of the reasons we have seen the stock decline to much is not just concern about the fundamentals but a substantial turnover going from growth investors to value investors the expectations reported $13.7 billion in revenues. the fact that facebook was able to deliver that it really says a lot about the company. it is not going any where any time soon. the shares have fallen 30% from their highs i think in july and so we have seen this as a buying opportunity really for the last week or two. >> okay. i mean if you really want to

dial back a big picture you're not seeing any evidence in the numbers of users flight or, you know, advertiser departure if you were worried about the weight would impact the platform itself it's not there yet. >> i guess are they a 45% jump in head count? do you believe it will result in higher earnings down the road or is it just the cost of doing business in a world where facebook and others are being scrutinized by congress? >> i think it is a definite factor in terms of the idea of getting the cycle back up so that the next cycle you'll see it on the top line they miss on the top line. it is interesting that we are seeing with the big tech issues

where you know what, the growth isn't quite there but we were able to hold a lot more of money back reinvestment will be key i think the slow down is an important factor to look at. i think he started to clang the nar ti narrative a little bit every time you give a new number you're trying to change it a little bit i like to hear more about that on the call. >> i'll go to you. how do you put these numbers which vindicate the case into a context where the company has seen at least a dozen high profile high ranking executives lead over the last year. it is bashed by both sides of the aisle. we are heading in where there is always sorts of talk of regulation and facebook has become the poster child for issues around election interference, privacy concerns,

hack attacks of personal information, you name it >> well, yeah. it's a handful of issues to deal with for sure. i think a lot of those are priced into the stock. facebook has over $40 billion in cash and investments and has a lot of financial flexibility they will spend away for a variety of reasons it is to prove they are serious about addressing some of these problems it is trading at 20 times earnings they grew the top line after significant deceleration at 33%. you know what? thaw have they have a lot of new heads for the whats app, messenger i think the new heads of those businesses will be more in line with the way facebook does things and look to monotize a little more aggressively i'm saying striking a balance that will be more financially add van teenage use that is

better for shareholders. >> you know, facebook made one of the greatest of all time, buying instagram for a billion bucks and the other was probably google buying you tube is there anybody whispering in mark's ear that hay would say you should spend some of that 40 billion on >> there is a lot more money coming in. i think one thing he has been looking at is technology as a way to move products around and move information around which is a lot of what these companies are all about. big investment i think he is probably looking as well. >> all right we got to go thank you all for weighing in on facebook shares up almost 2%. stocks are all higher. coming up we'll look at whether this is the start of a tech come

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>> facebook reporteding big earnings report beat just slightly t mobile and mgm on the top and bottom lines a better stock price reaction here >> a lot of numbers here but that is not it we have another earnings report that is on chinese giant baidu. >> hi there. it was a beat on the top and bottom line. it has been flip-flopping. it is up more than 2%. it is down about .20%. 16.7 estimated 28.2 billion are versus 27.53 billion. baidu app peaked in august

averages 151 in september. that is a growth of 19% as it tries to shift of course you know it is a tough backdrop they have been under intense selling pressure baidu has faired a little better but it is down about 23% year to date even though it has consistently beat expectations over the last few quarters we'll shave to see if it is enough another big change on friday morning. >> all right thank you very much. let us go back to the big name out there that is obviously facebook up next we'll look at whether it means the recent tech reck in general is now over. we'll look at whether today's rally coulma td rkhe return of the bulls on wall opportunities firsthand. like e-commerce

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we have a news alert phil has the story >> the state of california has given waymo the first permit to test driverless vehicles on public roads in the state of

california why is it significant? there are about 60 companies testing but always doing it with a safety driver behind the steering wheel waymo has been given the okay by california to take the safety driver out of the vehicles there are restrictions as you take a look keep in mind waymo will be starting a driverless ride share before the end of the year. we also want to point out that crews testing vehicles in san francisco, it is moving forward with plans for developing a ride share program in california starting likely next year whether it is in california or somewhere else that is the plan right now but they have yet to get that approval take a look at shares of general motors it reports third quarter earnings tomorrow morning. that is when we'll have a first on cnbc interview with the new cfo of general motors. want to hear what she has to say

about crews and gm's investment and a host offer issues after they post their third quarter earnings back to you. >> thank you very much shares of facebook a higher of an additional drop on earnings it was a giant eps beat. will it help save if you will the overall tech trade joining us now is a facebook shareholder and paul from sector and sovereign research you believe that digital advertising has a lot more room to run than maybe even some of the most optimist k out there. is there anything in these facebook numbers you have seen or heard that changes that belief >> no. there is facebook having to find the fake news and bots and this and that it will take a little time to

get through. they addressing over a trillion dollars globally on spending advertising and marketing. people tend to only look at print advertising and trying to understand how far they penetrated the market. >> you wonder how much bigger that adjustable market will be do you have to look at the growth or is the facebook itself platform still going to grow >> mark is making a bet they can monotize the third billion people it comes from the growing middle class in the economies we have had billions of people lifted out of poverty in the last 20 years. it is facebook's bet i still think facebook probably needs to focus a bit on monotizing the first billion, the ones paying the bills now. it is a lot more ways.

it is very promising i would like to see kind of more air tension paid to that and maybe a little less in the next, you know, billion users. >> so the facebook results are now being warmly received by the market with shares up almost2% >> so hitting revenue numbers is huge for these companies facebook is growing. 30% plus and people for better or worse put them all together it will likely help. our opinion is that you do have amazon and netflix >> there are plenty of advertising dollars as a whole

there is a lot more competitors moving forward every ad is a political ad all over my facebook and instagram people are starting to get being you can add the privacy issues and there is a decent chance facebook has issues moving forward. >> all right, guys we have to leave it there thank you for joining us. >> thanks. >> coming up, fresh comments from former fed chair janet yellen on market volatility just crossing we bring you those. >> the first while big technology remains under pressure overall a terrible month mike santelli is seeing a potential bottom he is chki tecnghe charts on the telestrator, coming up

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former fed chair janet yellen weighing in on the economy. ylan muy has the details. >> sarah yellen was speaking to steve liesman at the impact conference and she said she is worried we are headed for an economy that may overheat she also said that several more interest rate increases will be necessary in order to stabilize growth yellen also touched on the recent market volatility, saying she believes it reflects uncertainty in the global outlook. she mentioned trade and tension with china she also said that investors are trying to figure out what the

fed is going to do on rates. she did say that her former colleagues have been able to approach tightening in a gradual and thoughtful way but, again, there raising the possibility of an overheating economy and saying more interest rate raises will be necessary. back to you. >> all right ylan, thank you very much. i'm sure we'll get more on "fast money" tonight in the meantime we have the earnings alert on yum, china kate rodgers has more. >> that's right the stock moving high ner the after hours this is a mixed third quarter. eps coming in as a beat. 51 cents not adjusted number the estimates we are looking for 45 cents revenues slight miss $2.21 billion. versus estimates of 2.23 billion-dollar comps down 1%. a little better than expected kfc up one% in pizza hut down 5% they mentioned loyalty members

145 million to pizza hut 50 million mobile accounts for 64% of sales in the quarter and delivery 17% of total sales in the quarter, two important metrics within the restaurant category. they said they opened up 195 restaurants in the quarter the stock is higher by more than 5% yum china back sfwlu up next we look at why there could be a bottom forming in the market bottom forming in the market when we come right tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that. schwabbb! back.g schwab. we don't have a satisfaction guarantee, but we do have tecky! i'm tecky. i ca... are you getting low costs and award-winning wealth management? if not, talk to schwab.

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all right. stocks soared today. the dow up almost 2% 431 points recovering all of yesterday's loss and then some but while some markets remain in the red there is one area which may have bottomed. >> and michael santoli is at the charts >> this is a tentative side of a potential bottom based on the rsps. this is an etf the equal weighted version of the standard and poor as 500. same stocks as in the s&p but weighted equally to by market value. this is the he'll weighted version. here is went down the early part of the year, the biggest stocks

in the s&p were outperforming the average stock for a long time until you see recently this little spike including today, the average stock the equal weight the version started outperforming the huge tech stocks dominating the index. what this might mean is the market is rounding into the stocks that led the way down and maybe picking them up. this is by no means an all clear signal but it shows the market in the pr of trying to figure out where the greatest damage as was unduly done. >> we will watch to see in that outperformance continues for the bin winner >> for the kippingle stock. >> the check and the headlines it has been a roll till session for president bush the stock now higher after beating the earnings estimates missing revenue slightly monthly active user forecast as well the company earning call starts in a few minutes and that sent the topic lower sharply last time. >> "fast money" is a big one

trk mobile shares higher after reporting better than expected profit and revenue and arconic spiking on a report of talks to akwoir the parts maker for more than shh 11 billion. >> what's the key you are watching for tomorrow besides equal weighting. >> to see if we g goat gol are follow through. >> we are getting follow through and "fast money" which starts right now. families starts now. live from the nasdaq market site the traders stim teerm brian kelly steve grasso guy adami tonight on fast we are all over the big earnings reports after hours. facebook the big one obviously but watching electronic arts mgm reports and amgen. and julia boorts isn't all over the earnings call for facebook we check back with her a in a few moments. but first the market valuey and stocks fighting back at least for today