strong you see a slight tick up in rates always, in the 10-year, it's been a pure proxy for that. baltimore city can move higher >> dow's moving on to a pretty good gain as well. >> right now you're up 330 points after what's been a dismal month we'll see what november holds. this is the final trading day of the month. that does it for us. power starts now >> yes, it does. >> a disastrous month trying to end with a ray of sunshine the s&p 500 on pace for its first back to back gains of this month. could that help get the rally back on track? shares of gm up sharply after blockbuster results. is the american consumer flush with cash and ready to keep spending the streaming giant, is our urge to binge going to keep hollywood

happy and healthy? >> welcome to power lunch, everybody. it is happy halloween day for the market it means october is soon to be over we're ending on an up note it's the best two-day rally in two and a half years the month has been a house of horrors for the markets. the dow down 5%, other barometers down even more. earnings helping to turn things around today gm soaring, much more on those companies, coming up, one stock that is not joining the party is ibm. it's down 25% in just a month. trading at its lowest level since 2009 >> we have our eyes on earnings, because that is what's driving today's action in large part, gm's results revving up the auto sector facebook putting the bite back into those fang stocks, and we're all waiting for apple. we begin with the action on the floor of the new york stock

exchange that's where we find bob pasani. >> we're sitting right near the highs today. we're moving in a wide range, 30 points from a high to a low. this has been one very impressive rally in the last two days sectorwise here, technology is leading, the fang stocks are doing better, that's helping a broad swath of stocks overall. consumer staple stocks are lagging a little bit how strong has will rally been since the monday lows. s&p 500 up 3% since the monday low. dow jones average, 4 1/2%. nasdaq 100 up 6% since the monday low watch the beaten up sectors i've been paying attention to they're all above the s&p 500, industrials in line. metals and mining is the one that's been beaten up. how about november, what do we have to look forward to? i think we've seen some pension

fund rebalancing in the last day or so. i've been talking about the oversold conditions, have you been seeing buy back activity rising in the last few days. the fourth quarter, always is up after the midterm elections, every year since world war ii. want to mention the bye backs quickly, i said they would increase, watch what's happened in the last 24 hours isis announced the buy back. sd lauder about 11% of the shares maxim, a number of other companies, they're all starting to come out, i think they're going to be a help, a positive for the markets in november. guys, back to you. >> thank you, bob. at the nyse. shares of general motors having their best day since may, still down 12% today phil lebeau joins us with the reasons for that rise. >> three things were driving gm in the third quarter, north america, profits were up 33%,

they brought in $2.8 billion in china, record profits there, almost $500 million, gm financial also kicked in $500 million, in terms of its two big markets, you look at north america and what's going on with the truck sales for gm remember they introduced all new full sized pickup trucks in august their profit per vehicle up $605 in the month their truck sales have been moving steadily this year. in china, its profits were a record for that country. just over $500 million and its profits are up 20% -- or sales, i should say, down 15% in the third quarter, its profits up 20% year to date. as you take a look at shares of general motors, this is the biggest day since may, and it's on track right now for its best up month, it's first up month

since may. >> what stood out to me, is the fact that they were able to pass through pricing and the increases. will those price increases stay? and do they plan on more price increases down the pike? >> i think they're going to push prices as far as they can go they're not seeing the resistance from customers right now, we heard stories from dealers, from all brands saying that people are a little more hesitant, especially with higher auto loan interest rates that's not showing up in the numbers so far, that's why i think you're going to see had this pricing strength for gm continue for some time president trump taking note of the rebound today, tweeting about the stock market eamon javers is live at the white house. >> take a look at this tweet from earlier today, touting the strength we've seen in the market, the stock market up more than 400 points yesterday, today

looks to be another good one companies earnings are great, says the president yesterday, he was focused on the consumer confidence numbers, saying just out, consumer confidence hits highest level since 2000, the president obviously seeing some positive signs here in the economy that he wants to tout, even as we've seen market weakness in the last week or so here in the next hour or so, we're going to see the president focused on the economy in the state dining room today. they're going to be focused on apprenticeship, worker retraining, and worker training generally. he's going to create a new national counsel to focus on american workers he's going to have a bunch of ceo's in the room with them. their companies are going to contribute significant resources to training workers and retraining workers and apprenticeships which has been a key idea of this add men since

day one. >> as we have mentioned, despite today's gains, the big ones over there, the dow is on pace for its first monthly performance since january of 2016, and the s&p 500 still having its worst month since september of 2011. so can you trust today's rally as we heads into the final couple months of the year. chief investment strategist with oppenheimer investment management scott oppenheimer with us. and scott, only because you're here next to me, we're going to start with you is it okay to step back in and buy this market, given the bounce we're seeing today? >> it's okay this is the 15th correction we've had in this market cycle, going back to 2009 what we've experienced isn't one of the largest ones. i don'tthink it speaks to any underlying fundamental weakness. the tide is still coming in for equities >> this is not the start of something bigger in your mind. >> no, it's not the start of

something bigger, it's a buying opportunity. >> as we talk about this idea that the market is rallying for a bit, are there places that you are finding opportunities rights now given the market melees, and is this something we can believe in this bounce today? >> we think so when we wrote this week, we said in hindsight, what you saw last week is likely to be one of the best buying opportunities investors have had in years many this may be the start of it, the overhang remains in terms of china, u.s. trade war, and the -- all the worries about the fed, but we think we get beyond those as we get toward the end of the year, so we like technology, we like industrials, we like consumer discretionary, we like health care as a value play here, that has growth year aspects to it, and we also have to say, we still want to give financials a chance, today they look pretty good >> john, i'm curious, compared

to last week, were any of the reasons behind last week's volatility, have they been solved have they been resolved in your mind i ask this, because if they haven't, they could come back to the fore >> the risk has not gone out of it, the issues of the -- of a trade war becoming protracted haunt this market until we get some kind of an agreement, or at least something that leads to an agreement. the fed, this is going to take a while for the market to get used to jerome powell, as it always takes the market to get used to, the vulnerabilities are continuing here. we remember 2016, 2016 is perfectly awful, the first seven weeks, when people were concerned about oil, was plummeting the chinese had devalued their currency for the second time they did it again in january and, you know, this year, chi

chinese currency has dropped significantly. it seems like the market can get over this. >> scott, jim cramer has been very concerned about the sort of twin threats posed by tariffs and by tightening monetary policy it's not just rising interest rates, he's pointed to that most particularly, it's also the removal of quantitative easing, cleaning up of the balance sheet. he's very worried about 2019, why shouldn't we be? the history would suggest that as rates go up, the economy slows down. >> the level of rates is important as well. where we are right now, the real level of interest rates is still pretty low pretty accommodative even. >> almost negative even. >> i share some of jims concerns, but maybe a little further out in the year 2020 what i'm watching in 2019 and probably most concerned about is the twin inflationary effects of

rising wages we got more information on that today. >> big number today. >> plus the tariffs as well. they are able to pass those prices on, that could be the start of something inflationary, at which point interest rates have to rise more rapidly, that becomes disruptive, i do think it will take a while for that to play out >> as we talk about the environment, we're going to give the fed the benefit of the doubt and say they're data dependent can we say that the economy is supportive enough to accommodate the rate path that the market expects for right now? >> i think the fed is in the goldilocks situation in which there is plenty of strength to allow them to continue to raise interest rates there's not enough inflation airy pressure to require them to do so. they still have control over the pace of it, if this inflationary story plays out, they may lose control of that pace, they may have to raise more rapidly than

anticipated. that spells trouble for markets and economies. >> last question here, let's say the fed was in control, and did decide to raise rates in december maybe leave the door open a little bit taking a dovish stance into 2019 would that be a good thing or a bad thing for the markets. it's a psychological question, the markets could perceive that really well, or they could say holy cow, what's going on with the economy that maybe we don't see. >> i think we'll need to see the numbers we get tomorrow. rather on friday the hourly wage number we'll want to look at those. overall, we don't see inflation as being the real risk here. the fed has proven remarkable over three different leaderships so far jerome powell is fairly new. the fed has been remarkable in judging strengths and weaknesses checking vulnerabilities and also putting in check animal

spirits when they occur. we think the fed's going to maneuver this just fine. if it feels that the market is getting too caught up with itself as we get close to the end of the year, i expect they will put in that 25 bit hike just to remind the world and the markets in particular, that they're serious about the process of normalization, which we think is a good thing >> gentlemen, thank you. coming upon power lunch, facebook shares are surging. our investors are looking past the company's issues and focusing on what the company is doing right. take a look at this mystery chart, i love these. we'll tell you what this company is doing right, and what you are doing ong csehiwrtoau ts company a lot of headaches might be a clue there.

power lunch will be right back

all right, facebook, it's not at -- above $200, but it's at 4% today, at 152, best day since late april, shares 4% up, and here to tell us the three things you need to take away from facebook's results is our jul julia boorstin >> next year will be another big investment year for facebook users are shifting away from facebook's news feed and to

stories. the company is working to build up its ad products they don't make as much money from stories yet as they do from news ads users are shifting to private messaging on messenger and whattsapp. to better compete with apple's i message. facebook is continuing to invest in safety and security, saying it expects expenses to grow 40 to 50% next year it expects to be where it should be in terms of protecting the platform tyler, back over to you. >> should investors think about friending facebook once again? it's a remarkable reversal reversal we saw the stock down as much as 6% and move back up here we are with a 4% gain zuckerberg was cautious about

growth potential and the potential toward video and private messaging. and in the q & a session he kind of loosened up how comfortable are you in terms of the catalyst for growth here? >> i think facebook is guarded in the short term. revenue will decel into next year they're setting up for a nice base to go beyond 2019 2019 is another transition year. we see 30 plus% margins, you won't have a lot of earnings growth in 2019, but beyond '19 you start to look at it and say, is this a 20% earnings grower. the stock is trading beyond that revenue growth this is an earnings story that has support when you look out two years long term investors

are getting brought back into that, that the magnitude of cuts are less than what we've seen. we like what they're doing with the strategy, again, it's -- we've been wrong short term, i think long term it will be the right call to stick with it. >> it may also be a story. on one side you have what they plan on doing, and what you project for operating margins. what they project for revenue growth you have zuckerberg saying they don't have a firm grasp. keeping the news feed clean, they won't have a firm grasp until the end of 2019. how much of a cloud is that in your view over the story >> i think the privacy and security issues are going to continue to evolve these are major challenges for every cloud player, we don't think that ends. if you look at the cap ex spend,

it will start to moderate into next year. they're going to continue to aggressively spend in security and privacy, but i think any of us that use instagram realize it's getting smarter, and i'd buy half the goods from my home off instagram now on the actual commerce capability. you see something that's targeted toward you, you need it, you hit one click and you purchase it, we think there's so many avenues of growth for the company. and they're doing -- >> that's whey want to ask you, brent. you describe this as a growth story. and yet it seems like the core product isn't. where is the growth going to come from mostly >> remember, you're still going to see 25% growth in our view. even if we're wrong, we still think this is a 20% plus top line story with an inherent margin structure that's north of 30 if you look at google, google

went through the same thing. we still think facebook is similar to microsoft, and adobe. remember, core facebook today instagram is a big growth engine there's other initiatives around travel many are asking, what's the next big thing for facebook i think the answer is, many of the opportunities are right in front of them. video, instagram, commerce, there's a tremendous amount of opportunity that they still have in the core. >> so let's talk about the competitive dynamic, brent we have nice gains today in facebook, it's bouncing off lows snap is the same situation twitter is also balancing today, so when you look at your coverage universe within social media, what does represent the best opportunity and how do

twitter and snap just by comparison go against facebook >> between the three, facebook is the next two-year call for sure twitter short term really has no risk, because there's no more earnings risks for the rest of the year through the rest of the year we think twitter will be considered a safer story, because there's no earnings risk left and they're doing a good job as we've been talking about on the road to recovery snaps a whole other ball game. they're not going the right direction. we believe there are many things that have to happen for snap to mount a turn around, versus getting the android product out. third is growing the user base, i mean, there's multiple things, there's more than three that they have to go after, we think snap's probably the one in the biggest need of a new friend whether they find a partnership or a potential strategic partner ship going-forward, but they definitely have the most to

prove from our perspective >> brent, he's got a buy rating and a $200 price target on shares of facebook >> october has been one to forget for the markets but it's ending on a high note, at least for now the best two day rally in more than two years and some names you know are on the move today we have coors, kellogg, clorox, we're going to tell you what's behind those particular moves and a big day tomorrow on cnbc as we are live from the deal book conference the ceo of google, the list goes on that's just a partial of those speakers sidewalk box andrew ross sorkin leading the conference

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the up side. also what's happening here, eating less cereal, a decline in the morning foods division kellogg betting on single serve packages like pringles and chee cheez-it products. earnings did beat expectations, hurt by the cost of the dollar those shares down by 2%, pairing some losses right here, on a year to date basis, probably one of the positive ones there, up by 1%. we'll have much more on clorox's results and the issues facing the company, when the ceo joins jim cramer on mad money, 6:00 p.m. eastern time. an interview you do not want to miss we're counting down do apple's results due out after the bell tomorrow. everyone wants to know how many

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let's get a check on the markets right now. we're holding on to that rally not enough to wipe out october's losses a little off the session highs right now, the dow is up by 1.4% s&p 500 higher by 44 the nasdaq is up by 1.79 or 2.5% so far communications services also strong, helped by our facebook earnings after the bell yesterday. by the way, all the names are higher, amazon, netflix, google going along for the ride >> the safety trades that have been doing well, you don't need safety today the only two sectors lower in today's session. now, let's get to contessa brewer for an update >> dominick robb telling lawmakers he expects a long elusive divorce deal to be

finalized by november 21st his october 24th letter to parliament was rewleesed today the search for the craft line airplane that killed all passengers on board, has found passenger debris and belongings on the sea floor strong current prevented it from being recovered. rescuers pulled out four survivors and three bodies after a massive landslide. 18 people were missing after the landslide. fifa's president says the world cup is considering increasing the number of teams from 32 to 48 fifa decided earlier this year to expand to 48 teams in north america. that's your cnbc news update at this hour, dom, send it back to you. apple reporting results in a little more than 24 hours, a

you can see from now one key area investors will be watching, have those trade tensions hurt the company's business in china? josh lipton joins us now from san francisco with a preview of that the shares are up 3%, near the best levels of the day right now. people do like the apple story right now? >> analysts estimate it accounts for about 15% of the companies annual revenue it's also that vital linchpin in the company's supply chain too, where most iphones are assembled, employing millions of chinese. investors will want to no what additional demand looks like over there for the new iphone 10s and 10 x especially the x market share is one important

metric, whose actually making money is another strategy analytics estimates apple captured 70% of all operating profit for the smart phone industry over there in q2. also important, how are trades impacting apple. they hadn't been impacted by tariffs, are there other impacts investors may consider are they seeing an impact in china toward the company we should have a better idea tomorrow after the bell, guys, back to you. >> thank you very much >> china's purchasing manager's index, falling to its lowest level since the summer of 2016, this to 50.2 in october. as the trade war with the u.s. intensifies. the shanghai composite down 21% this year. how desire is the economic and market situation in china. let's bring in nathan resnik,

ceo of sourcefy. and patrick chovanick. nathan, what's going on with chinese manufacturing? and what are the companies you work with here in the west doing to prepare for the possibility, maybe even the likelihood that tariffs will move from 10% now to 25% january 1 on more than 200 billion of goods >> that's a great question i would say what we're seeing is a lot of american companies are front loading production, meaning that they're actually producing more now before this potential tariff comes into play this 25% increase in january they're front loading production, trying to import a bit more products than they might usually during this time of the year, in order to front load some of that production in order to hit that 10% tariff right now, instead of the 25% that may be coming in january. >> what will they do when they can't do that any more

and the 25% tariffs go into play >> they have to diversify the supply chain i've been saying this since the china tariffs came to play you see a lot of chinese factories starting to transition facilities outside of china, the philippines, vietnam a lot of these companies both american importers are starting to diversify outside of china. as well as factories transitioning outside of china as well. >> one of the things you point to is maybe not so much the e23ek9 of the tariffs per say. but that the chinese will perceive the tariffs as a real threat to their existence that we mean not merely to level the playing field, but to harm china. if they interpret things that way, what does that mean >> i think that is a concern,

because the way that we would like china to interpret some of these trade measures, is that their bargaining chips and they're an effort to get china to compromise on some key issues but the way that it's been interpreted by many in china has been that this is simply the u.s. has decided china is an economic enemy that needs to be taken down and the vice president's speech, although many of the issues he raised were quite valid, and quite real, was taken in china as verification of that, that this was not just things that are being put on the table to be hopefully taken off in a positive resolution, but things that china really -- the hammer was coming down on china, and china needed to go into lockdown and in many ways go in the opposite direction, try to insulate its economy from the u.s. rather than open it up. >> it's a very bannon-esque

approach to china. >> if you were to place yourself in the negotiating room, in that -- around that table between china and the u.s. what exactly could the u.s. and china come to terms on, how would they find that path forward then to get rid of this feeling of an existential threat to both of their economies >> that really is the key to every negotiation, which is, what are the practical takeaways. you know, assuming that there is some common ground, what does that look like and this is where we get from the broad issues of the things we don't like about china, and things they don't like to be told what to do. to the more concrete issues of what if china were to stop engaging in ip theft or engaging in mandatory technology transfer, what would that look like, in a way that would make it acceptable for the united states to back away from tariffs. what would the benchmarks be, what would we like to see in

terms of path to progress, it's not like flipping a light switch, it's not like we're going to get an immediate change, we've had this discussion, this is not something new. back in the 1990s, there was rampant piracy we confronted them on this and there was a pathway that we agreed on in ways we would look for practical improvements if that didn't happen, the tariffs would go back on >> it's translating these broad demands, to specific demands that could be met. >> nathan, you mentioned that manufacturers, companies were sort of front loading, so they're pulling forward what they normally you might have ordered later this year, or maybe in 2019 before the first round of tariffs gets up to 25%. does that mean that the numbers we're seeing out of china in your view are artificially inflated even though they do indicate a weakening >> i would say they could be, you know, really what we see is

a lot of companies are front loading some of their production, they don't want to get hit with that tariff increase come january. we'll see president trump and president xi from china are supposed to meet in the coming months and decide what's going on with these trade wars and decide how can we create a win win situation for the countries. the dallas is very strong right now. i predict that, you know, the dollar will go to about 7. the dollar is really strengthening versus the remenbid right now >> yes, the yuan is already higher than the dollar to the bond market we go, rick santelli is tracking all the action at the cme. >>. >> we're stacking. today's range virtually on top of yesterday's range

that is an aggressive sign to pay attention to you can sigh they weren't dramatically affected by the volatility equities. they're higher than they entered the month, if you look at what's going on with the dollar yuan, it continues to march toward 7, a month to date of the dollar drives home the issue we can talk about tariffs, this is a mitigating factor in the currency dpinly, month to date of the dollar index, it is the protagonist and most of the foreign exchange trade it's been super strong with near 17 month highs >> thank you so much the overall markets have struggled in october, traditional media was the place to be. those stocks including comcast our parent company, out performing in october. can that trend continue? and mgm shares rising today as the company makes another sports betting deal. we're going to tell you about 's newest gambling buddy when

power lunch returns after this break.

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♪ shares of mgm resorts higher, as you see there, the company plans to plant its flag in the sports betting business contessa brewer joins us now with those details, this is a budding partnership between sports and casinos >> here's mgm really making a run at it, mgm is going to be the official gaming partner of the new york jets. jets fans will get access to a game they can play along with on their phones mgm gets expanded marketing opportunities. mgm is proving to be the most aggressive on maximizing

opportunities in the sports betting world. on the heels of the nba, nhl and wnba add these deals to a strong outlook today. mgm shares just climbing today >> they've had a rough quarter >> the jets, all of these sports deals, is there a fear that with all of these deals coming together, there's going to be a dilutive effect on the sport itself >> i think what the sports franchises are looking at is the opportunities to really energize their fans, to get them more committed, more involved and more likely to go and sit in the football stadium when they can play along on their phones and make these predictive bets on plays to come they think it's going to be exciting, we're waiting to hear what happens with the league more broadly here. with mgm jim told me this, before the supreme court handed down its decision, they were paving the

way ahead of time for the plans to be put in place here, and he's really been aggressive in making those deals happen. >> take the jets and the points. always >> what else can happen? >> thank you very much, contessa >> since the s&p 500 last had an all time high, one group that's held up surprisingly well is legacy media stocks. the s&p is down, netflix lower by 17% comcast, disney, viacom are up by single digits let's bring in propegate ceo they're responsible for running wild with bear grills. welcome to the show. great to have you with us. >> in terms of what we've seen with the legacy media stocks it seems like a lot of them are placing an emphasis on developing some sort of

streaming platform, mostly for their own content, what does that do to the likes of propagate when you're selling content to various platforms >> i think we're entering the next phase of this contents arms race, with comcast acquisition of sky and the potential for them to go over the top and start a streaming service. disney's acquisition of fox and majority control of lulu apple's entry into the game, amazon, netflix, you have these mega companies looking to double down on content with their own services and to be really ahead of their competition. for us, we're deep in the bottom of the mines here, looking for the gold that they need, and they have always have been and always will be dependent on top tiered producers and creatives to deliver their content if they only feed on themselves, they will produce two headed

children they will not have the best of the best i think there's always a position for great stories and unique voices to breakthrough on these platforms. >> does that mean an ott service from the likes of a disney let's say. might be a disadvantage unless they buy outside content to supplement their own >> they will always need unique outside voices to augment what they're doing. you don't get the brilliance of a simpsons unless you are relying on the brilliance of a jim brooks and matt groening you don't get the office unless you look far afield to england where it was first produced. it requires these companies to do what they've always done. which is bringing in outside forces to work along their executive teams. and if these companies have as much ambition as they're stating and want to compete with the likes of netflix and amazon and apple, they're going to need a

lot of content and it's really hard to put a single show together let alone 50 a year or 100 a year which are going to be the kind of numbers they need to compete. >> where are you in terms of providing the content -- >> the face books of the world, we heard on their conference call, they want to dedicate their next legs of growth to private messaging and content video. and then there's also the likes of the start-up of jeffery katzenberg and meg whitman they're doing various forms of content in smaller sizes are you feeding into those new delivery systems >> we absolutely are and this fall has been a great fall for our company we have haunted that just launched on netflix two weeks ago, lower that just launched on amazon two weeks ago and charmed that just launched on the cw two weeks ago. we never would have years ago

been supplying that kind of content across that many different kinds of platforms across different forms of genres as well. as we look at what jeffrey and greg are going to build, we're already in business with jeffrey's new venture and leaning into it. you just don't know who's going to become the more successful real estate builder in the future i think there's no question how people consume content, and specifically with what you use -- i didn't mention going el when i was talking about all those big companies, obviously

they have youtube, it feels like they haven't unleashed what could be the power there also. >> exciting time for the content producers. ben, it's always great to see you. we hope you keep us posted >> thank you, good do see everything in green for cnbc gilead is moving sharply lower. >> they're having their worst day since early may. the insurer has put out an incentive program to try to get patients to switch to lower cost hiv drugs this is an born franchise for gill yacht, there's concern in the market that this could lied patients off of gilead's higher priced messages you are seeing gilead down more than 5%. people are over reacting here, gilead's regiments look really good and there's nothing to suggest that the health of their franchise is declining in hiv

there, you are sighing the stock sell off more than 5%. >> thank you, it's a dirty job, someone's got to do it we're talking trash. one company is finding the gold mine in the landfill that's where we find jane wells. >> we are talking trash. the trash business is great. the recycling business, however, is garbage what is it going to take to x fi it and do you and i need to learn a few things 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.

we have heard it before. one man's trash is another man's treasure, and your trash has been a treasure for republic services that mystery stock we showed you earlier is up 65% in three years thanks to its core garbage business its recycling business, however, has been a drag on the company jane wells joining us from one of the company's recycling facilities in anaheim, california jane, it can't smell good over there right now. >> reporter: hey, dom. you know, every day about 600 tons of recycled materials comes through here as you said, republic service is doing very well on the trash side, but the ceo calls the recycle model broken these people are busy pulling

out stuff that has no business being in the recycle bin if you look at the mountain of trash that comes in from the bins, 30% of that ends up in the landfill 30%. here's the deal. for years trash companies basically collected your recyclables curbside at break even or a loss because they could sell it at a profit to china. china is no longer buying dirty recyclables because they have a dirty air problem. >> we get $100 a ton in value when we sell it. it used to be $150 to $200 per ton. so the value has been cut drastically. you know, in half or some cases less than half. >> reporter: another problem happening is we are throwing more and more stuff that doesn't belong in the recycling bin. you are collecting at a loss you are paying more to clean it, like these people are doing. the value of the resale side is lower. what is the solution

probably your trash collection rate will go up maybe $1 a week. that could be mitigated. this is good a plastic bottle this is bad. don't put these in they muck up the machines. they had a ten-minute stoppage because of it. also, clean cardboard. put in the amazon boxes. that's great but you throw in the greasy part of a pizza box and it contaminantsnates a whole load. >> that makes me angry when i see dirty pizza box in there that's trash, people thank you. >> reporter: put it in the regular trash. >> jane wells, news you can use. coming up on "power lunch," we will take you inside the most expensive hotel room in america. if you have to ask how much, you can't afford it. and we are watching the markets. at two-day rally holding up for now. urme big swings in the 2:00 p.m. howill there be another one with the dow up 1.5%?

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good afternoon welcome back i'm tyler mathisen here is what's on the menu for hour number two of the "power lunch" rally s&p of the biggest surge since

2016 now, the santa, is santa set to start the year-end rally before halloween is done with well, oil slick crude getting crushed this month, and taking lots of energy names down with it in this sector, can they stage an end of the year comeback as crude settles at $65 beer you put the pizza box in the recycling? apparently not cheesecake, we will take you inside the number of those things beer, pizza, cheesecake. see if the strong economy and healthy consumers will power these sectors. a second tasty hour of "power" starts right now we are seeing a big market rally today continuing yesterday's bounceback the dow up 1.5%, nearly 400 points, as you can see here, and

the nasdaq faring even better, up more than 2% at this point. about 2.5% the stocks all higher as facebook earnings easing some of the concerns about that big tech com services trade estee lauder saying they are not seeing signs of a slowdown those shares up by 5% right now. >> all right with october coming to a close, the question is, will it be a november to remember our team coverage continues. bob is at the nyse diana has what's in store for housing. keying apeye n eye on data. starting with bob. >> we are certainly moving into november with a little bit of a bang take a look at the s&p we are looking like yesterday. we are looking like we want to end high and move up going into the close communication services, bank stocks doing fairly well. since monday's low, 3% increase in the s&p

4.5% in the dow jones. 6% in the nasdaq 100 since the lows on monday how about november lot better chances number one, you will get pension fund rebalancing i think you are seeing that today. and semis and energy and energy and home builders. and that strong seasonal flow, remember that fourth quarter after midterm elections, it's been up every time since world war ii the buybacks, they are coming in now, we are halfway through here the last through ways intercontinental exchange announcing a big buyback large percentages of the shares that will be buying back next several months here. is it important? yes, it's very important in fact, corporations are the marginal buyers of stock right now. $1 trillion likely will be announced in buybacks this year. that is a historic record, and there is plenty of dry powder left what's that mean a lot of it hasn't been spent

yet. there might be two, $300 billion sitting around that could provide fuel for companies saying, wait, our stock is down 6% had this month let's pick up the buyback this year i think you will see more announcements in the coming two weeks. guys, back to you. >> bob, thank you very much. and stocks on sales a big theme and has been for some of the biggest names in america in terms of the stock market. so entering today on a month to date basis the s&p 500 is estimated to have lost around $2 trillion worth of market value. some of the scarier stock drops in dollar terms are behind me. we talk about these in percentage terms often let's put some dollar amounts it them amazon on a month to date basis has lost $163 billion. to put that in perspective, that is the size of losing a whole pepsico as a company to dgive a idea

alphabet shares have lost $74 billion. berkshire hathaway lost $46 billion. microsoft around $42 billion and apple has been a steady performer only losing $8 billion on a 1 trillion dollarsing market cap level that's a big deal, but still amazon, alphabet, berkshire, microsoft, apple, losing a lot of money in terms of dollars in this past carnage. >> what is the true picture for investors heading into the final two months of the year is this two-day powerful rebound really the way we are going to head, or is the correction that took hold of the market for most of october the way it's going to go david laverty is chief market strategist at natixis. gentlemen, welcome david, let me begin by asking you, you, in your forecast as you look deeper into 2019, you begin to see some hints that

maybe the bull market may get a little tired and roll over the economy may slow my question is has the market started to look at that same thing and started to discount a downturn >> i think it has to some degree it's certainly not completely across the board but just think about the earnings season we have come through. it's been very solid, very good, and we have seen very little reaction from the stocks what that tells me is the market is not pricing the here and now. it's beginning to price further out on the horizon i think you can make sort of the laundry list, fed tightening, higher interest rates, trade and tariff, china slowing, brexit. you have a whole bunch of things that will sort of, you know, come to a head in 2019, likely to slow the global economy i think the market is starting to look at this. it knows that after the tax cut we were going to get 20% earnings growth this year.

that has been recognized for a number of quarters i think the market is looking more at 2019 and a little bit less than what's actually happening today. >> i want to bring lou in. does what you just said mean that this is a tricky time to invest not that any time is not tricky on some level, but this is a particularly fraught time to be putting fresh money to work? >> yeah, i think it is a tricky time that doesn't necessarily mean we are bearish. the way i think about the market is, you know, investors, it's a little bit of you are dammed if you do, damned if you don't. if the economy slows, that will be priced into risky assets. if the economy remains strong, the fed and central banks, higher interest rates, higher inflation, lower profit margins, these are potential headwinds. if growth slows, the market struggles. there is a really narrow pathway

for the market to do real well going forward. >> lou, over to you. i want you to sort of punch back to the extent you want to with what david just said because my notes tell me you say, quote, right now people should be looking to put money to work the bull market continues. still troroom to run. >> absolutely. as we look into 2019, and i think you're right that the market is concerned about what 2019 looks like and given some of the headwinds that are emerging, whether it's trade and tariffs, whether it's a higher cost pressure, you know, whether it's higher rates, all of those things are starting to be factored into 2019 earnings. and as we look at 2019 earnings, yes, of course we see a deceleration off higher earnings rates from the tax cuts and a stronger economy we don't think earnings are going negative with multiples and valuations where they are at and interest rates relatively low, we think it's a great opportunity to buy

your favorite stocks. >> when are your favorite stocks in terms of sectors? do you bet on the sectors that brought us here? >> yeah, that's right. there is a great opportunity in the secular growers that continue to grow at high rates a lot of those names have come in 20%, 25%. it's a great opportunity to be dipping a toe in there there is good companies that are, have a lot of visibility heading into 2019. i think that's important you can find those within the health care paspace. you had a segment on waste management i think that's a good area to be because of the visibility and pricing power. lastly, areas of the markets are so beaten down, whether it's within autos or housing, you know, some of those stocks are down 40%, 50%, 60% and there could be opportunity there, assuming a reasonably healthy economy as we head into 2019. >> david laverty, a few moments left here. should we be concerned about the

midterm elections or is it just noise, should we be looking beyond that for our investment thesis >> i think the issue with the midterms is how extreme are the results going to be. most of the political pundits say we are likely to get a democratic house, the republicans keep the senate. i think the market sees that as the most likely outcome. that's probably a non-event. if the democrats do significantly better than expected -- >> looks like we seem to have -- >> i think we lost him. >> there went david, didn't he >> lou, are you still there? >> i'm still here. >> well, thanks for being here great to have you. we will leave it there we appreciate it he is all fine, everybody. it was just a satellite malfunction. >> just a satellite issue. >> let's turn to the housing market heading into november could we see a housing comeback if california, my home state, is any indication, the answer might

be no. diana olek is live in washington, d.c. with more details. diana, why is california so bad? >> yeah, sorry california is often a broad indicator for the nation right now it's not such a good thing. southern california of new and existing homes plummeted nearly 1% in september year over year that according to core logic that was the slowest pace since 2007 when the national housing and mortgage crisis hit and it was the biggest annual drop in eight years, more than twice the annual drop seen in august part of that is likely that mortgage rates the 30 year fixed has been moving higher. a full percentage point higher than a year ago. southern california home prices are still up, but only about 3% annually that's the smallest gain in more than three years so like california, we also saw the annual home price gains nationally fall on the s&p index. they are below 6%.

demand and sales are softening you can expect the big price gains we saw last year to continue to shrink as we head into the coming months and we just got the numbers in on the san francisco bay area home sales even worse go to them they are on cnbc.com right now back to you guys. >> diana, thanks. >> i am clicking on that for sure. >> i am right now. >> i want to take a check on the markets. we are climbing back towards session highs. the dow is up by 414 points, a gain of 1.7% the nasdaq is up by 2.75%, a gain of almost 200 points here. >> coming up, shares of general motors surging what helped them deliver in the last quarter shares of experian more than 5% today. new data on the cholesterol drug how does it measure up against the competition? the ceo will join us ahead and a behind-the-scenes look at america's most expensive hotel room cnbc cameras the first to go

inside this, get this, $75,000 a night room "power lunch" is back in two 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. shares of general motors surging up about 8% after a

blowout earnings in this past third quarter. sales in north america jumped an eye popping 33% in the last three months driven by strong truck sales and suvs as well, also higher prices for about every car it sold. interestingly here, gm sold fewer vehicles in the quarter, but sold them for more money apiece so what does gm's big beat tell us about the health of the auto sector and the consumer more broadly. mike ward senior analyst as williams trading take us through this is it the idea that the consumer is still spending on big-ticke items like cars and paying up for them >> absolutely. no question. you know, one of the things you have seen over the last couple of years is a divergence car sales are down about 30% and truck sales are up about 10% truck sales sell for $11,000 more than a car. gm and ford are much stronger in trucks than they are in cars >> all right so if we take a look at the way that ginnie mm shaping up, this

a favored stock. none of the auto stocks have been can we now say that there is a perhaps all-clear signal to get back in it, or it a pain train ahead given consumer outlook >> there is no question you need to be in the stocks. the market is discounting that the cycle in north america will be down. people have u.s. sales down 5% or more in 2019. since 1980 there have been seven times where the industry sales were down 5% or more, and each one of those cases, except for one, there was an outside factor like the collapse in the financial community. in an environment where the unemployment rate is low, confidence is high, interest rates at an all-time low and income fwroegrowing, you will n have lower car sales you might be down 1% because the industry is not goosing it up with incentives. i think you will see industry sales 17 million i think that's what the market is missing that enables companies lake

general motors and ford and suppliers and dealers to generate record profitability. >> michael, are you actually more optimistic on general motors thanks to the earnings report the stock is surging today back in july the company took down full year guidance and it's raising the top end of the guidance where do we actually stand the market is acting like this is an all clear, but i am not sure what precisely you point to to say this is better than it was a few months ago. >> right first of all, on the guidance, they know as much as we do in a lot of respects. so you are throwing a dart into the wind the guidance for this year would be at or above what they are looking at and it could be well above what people are currently looking at as far as gm today versus the summer, one of the things -- i don't pay too much attention on one quarter, particularly one that's not audited however, if you listen to a couple of things gm said, they are very clearly a different company today than they were three, four, five, and ten years

ago. just as an example, one of the things they talked about was cap spending coming down over the next couple of years they talked about gm financial being a source of income as much as $1.5 billion in 2020. from a balance sheet standpoint, go to 2008 they had a legacy liability. underfund underfunded pension status of $20 billion. one of the surprise things at year end because of a higher discount rate, you will see gm's underfunded plan in the u.s. be funded or close to it. insignificant. very different company today i think those are the things that i took away from the quarter that gm, despite going through a changeover of their most important vehicle, they made 10% pre-tax margins in north america. ten years ago they would have lost money. >> a few moments left here electric vehicles. who ends up winning that race five years from now? >> well, if you look at electric vehicles there is a little bit of a miscommunication.

electrified vehicles include hybrids. that is where you will see the most growth because they can be in trucks, they can be in cars, every size of vehicle. fully electric vehicles is going to be a small portion of the market 1%, 2% in the next five to ten years. >> all right thank you so much for that view. the ev space as well we want to look at what's happening with the markets we are near session highs right now. the dow up by 421 points nearly, well not every member, a lot of the members of the dow moving higher. gains are led by visa and goldman sachs and microsoft. five stocks in the red veshz, walmart, ibm, procter & gamble lagging today not enough to weigh on the dow for a 421 point gain. >> thank you very much coming up, energy stocks higher today, but sector having the worst month since 2011 will things turn around when exxon anchrod evn report earnings later this week trading nation

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welcome back to "power lunch. this is trading nation energy stocks getting a lift

today, but still among the market's biggest losers for this month. take a look at names like these. valero, hess, anadarko sinking between 15% and 18% in october ahead of chevron and exxon earnings on friday, any sign boris, anything to like in this group here >> yeah, i mean, i think basically they have gotten better because they have had lackluster earnings, litigation risks, capital expenses. a lot of the numbers are priced into the market at this point and the defensiveness is attractive because, for example, chevron and exxon are yielding more than 3% at this point and with higher crude, they should print better numbers going forward. in addition, exxon has an interesting catalyst they have a find that could be 75% of the current flow rate looking forward, if you basically assume that energy is not a secular short, we are going to be using oil going

forward, both of these companies should bounce quite nicely going forward i think. >> craig, boris mentioned the defensive nature of big oil. of course, some energy stocks are more aggressive. is that something that you think is suited for this tape right now? >> mike, absolutely i 100% agree with boris on that i think what a lot of managers are looking for is they are looking for the escalators down, not the elevators down in this markets. it's been a rough october, off over 9% for the s&p 500. and when you look at the energy names, it's a sector that hadn't performed very well. we are seeing the relative performance of energy pick up and you look at stocks like exxonmobil in fact, mike, all the stocks with greater than a 20 billion market cap are up 3% to 4% for the year exxonmobil looks like a name that's been consolidating when you look at the chart over the last couple of years from our performance, those usually resolve themselves to the up side, not the downside.

>> all right if our onlies are the escalator or elevator down, you want the escalator. thank you for your help today. for more trading nation head to our website or follow us on twitter. back to you. >> thank you very much still ahead on the show, just a little over 90 minutes of trading left in today's session. this is when volatility tends to pick up, at least it has over the past month we are back at the new york stock exchange that's ahead plus, if you have an extra $75,000, you can check into the mark hotel for just one night. robert frank has that story. robert. >> well, pack your bags. the most expensive and largest hotel suite in the country we will take you on an exclusive tour inside the 10,000 square foot penthouse suite from the ballroom and a dining room for 20 to a bathtub that fills from the ceiling. the ultimately event.

>> now the latest from tradingnation.cnbc.com and a word from our sponsor. >> a double bottom is a chart pattern that suggests a down trend may be ending and ready to reverse. sometimes called a w formation because it looks like a w, a double bottom occurs when prices form two distinct lows on a chart around the same velel. traders view a break of the highest high in the formation as a bullish signal

markets right now, they are soaring as we head towards the closing bell all three indices on pace for the biggest two-day rally in more than two years. the s&p 500 right now and nasdaq haven't traded higher on consecutive days all month let's look at some of the stocks making new highs today you got mcdonald's it went public in 1965 it has never traded higher than it has today merck at the highest level since 2001 retail, nordstrom the best level in three years one of the best performing stocks in october. only two s&p 500 stocks are hitting new lows today ibm at its exist level since 2009 and baxter at a 52-week low

as well. over to contessa brewer, she has a cnbc news update. >> here's what's happening right now. robert bowers, the suspect in the mass shooting at a pittsburgh synagogue that killed 11 worshippers, has been indicted on a total of 44 counts, including hate crimes. that's up from 29 counts previously he is due to appear at a second hearing in federal court in pittsburgh thursday. federal prosecutors are calling the bail bombs a domestic terror attack cesar sayoc faces five preliminary federal charges in connection with the pipe bombs sent to 15 people. investigators claim sayoc started planning the attack in july a former federal investigator tells the ap a mafia hitman is a suspect in the policen slaying of james "whitey" bulger he says freddie gesh and one other inmate are believed to be involved an artist was arrested after he painted on a tomb, and declarations, he says he wanted

to make a statement on behalf of franco's victims that's the cnbc update this hour back to you. >> thank you. the oil market closing for the day, jackie deangelis covering it. >> good afternoon. well, the worst month for oil in two years. oil prices sliding 10% this month. first, stock jitters when the market falls, it could bode poorly for oil demand supply concerns. the market is well supplied. inventories climbing there are questions on how effective the iran sanctions will be. third, the dollar crept up more than 2% this month up 5.5% this year. that pressures oil prices. session low 6524 you can see we are loesiclosing around those levels. major average near session highs with the dow gaining 400 points but october has been a month to forget for investors the dow is down 5% the s&p 500 off 6% the nasdaq hardest hit, down 9%. so as we look to the final two

trading months of the year, will we see a turnaround? director of institutional sales at stewart frankel and a cnbc "fast money" trader. president of guide stone capital management steve, how is it feeling on floor today? do you think we see february lows >> so i would like to see february lows because it would give the buyers a little bit more conviction going into year end. but the major question is today, is this a facebook effect or is this month-end rebalancing if it's a facebook effect, then you have a couple of weeks, maybe days, whatever of it if it's a rebali vent, it's one day, two days tops. >> just the normal month rebalancing could cause this >> you had a tremendous sell-off in october very volatile. so now you get 21 billion in equities that need to be purchased by month end that's a huge event. >> david, you wanted to buy this pull back and you are added

defensively, right >> yeah, i think we need to be careful of the sustainability of this rally, which is pretty prototypical given the big downturn and the types of companies that led the downturn. i think we need to be focused on the fed. so friday's job report is going to be very important it will play a big part in determining whether or not investors are still concerned about the fed being too aggressive to me that's the biggest factor. if the fed continues to raise rates at the pace they want to, that will have an impact on risk sentiment and an impact on the economy. that's something that's going to drive market action. so having some staples exposure, some defensive exposure i think is prudent at this time. >> you are not convinced we are out of the woods even though the seasonality would suggest otherwise going to the end of the year >> i think the market will move higher from here i think there is reason for that given seasonality, given valuations, given some of these other factors. but i don't think that we are back to the races. i don't think we are going to go back to and set all-time highs

like after february. we are three years in the fed tightening cycle there are too many headwinds and investors are realizing that risk assets are dicey. cash is a viable asset there are options today. >> how does the three day rule apply to the major indices >> you have to wait until after month end. you have to wait for month end to settle in, see what the rebalance looks like i would say probably tomorrow or friday could be a real head fake sell-off and could hurt a lot of people and dip this market way down below the lows that we have seen this week that will be a turnaround event. so to david's point, i don't think we are out of the woods. and he just gave you the benchmarks, right? if there is going to be headwinds going forward, you can't look at old highs. this could be sell the pops at this point. >> let's say it is sell the pops at this point. the other side of the trade, if you are compelled to put money to work and put a shopping list together, what are the types of stocks you would put on that

list given the current environment? >> yeah, i think you have to look at the places where the money has not been flowing so you don't want technology, you don't want consumer discretionary. i think consumer staples, although it has a good month, as a place given the defensive characteristics and the performance over the last couple of years health care clearly has a place in a portfolio given earnings visibility and the defensive nature and if you want to have some economic sensitivity financials. i think there is valuation support there and there is a reason to own financials in this environment. particularly given the lack of regulatory headwinds and the capital cleanness and stability of the financial sector right now. >> steve, are you a believer in the financials we are up 5% week to date. >> yeah, i don't like the financials even though they have lagged i don't think there is a lot of the environment for the financials to succeed. i do believe in a laggert that we have talked about in the housing names, auto names.

but it's all predicated on stocks not working if faang stocks work, none of those things will work laggards won't work. underperformers won't work in the netherlands, in the nvid nvidias, in the facebooks, if he the they /* they don't work, different scenario the s&p cash, that's a level of resistance we are almost there now. watch to see if we can take out that level in the close. >> you are looking for a 2532. that's a february low. >> i am looking for the february low 2532 the next couple of days, need to take that out before midterm elections because then it gets dicey if you can hit those prior lows. >> all right thank you. the mark hotel in manhattan is offering the most expensive hotel room in america, and cnbc cameras were the first to be allowed inside because we are just that good robert frank is here with more on that. robert, this is one heck of a

story. >> yeah, one heck of a hotel bill, too. the mark hotel is a favorite of oprah winfrey, the saudi royals. it's about to become more exclusive with the opening of the grand penthouse suite. take a look at what you get for, that's right, $75,000 a night. >> reporter: straight through the mark hotel lobby and up 16 floors is the most expensive hotel room in america. >> welcome to the mark penthouse. >> reporter: general manager olivier lordonnois is giving the first ever on-camera tour of the $75,000 a night hotel suite. how big is this suite? >> 10,000 square feet. it is the biggest in the city. this is the main living room of the penthouse. the ceiling height is 26 feet. >> reporter: there are five bedrooms, including not one, but two master suites. heads up in the master bath where water flows right out of the ceiling. >> let me show you the best views of the house upstairs.

>> reporter: one flight up past a sunlit lounge area is a 2,500 square foot wraparound terrace this is a great roof for a big party. >> it is the perfect roof for an amazing party. >> reporter: and the views here, i mean, you get midtown, central park. >> there is nothing like it in new york. >> reporter: what's the longest stay that you have had here? >> 16 months. >> reporter: you said months >> months. >> reporter: not days? >> months. >> reporter: that's a big hotel bill. >> it is, but obviously they could afford it. >> reporter: if all that's not enough, the mark hotel throws in access to the 70 foot sailing yacht, private shopping trips and a $6 hot dog from the jean george hot dog cart. >> only one hot dog per night? how many people can fit in this room this may actually not be that expensive if you throw a party

there. >> yes, if you use it for entertaining as an event space so there was family that had stayed there for 16 months, as he mentioned they had a party there there were at least 300 people. >> 300 people in that room >> you couldtize that $75,000 pretty well. >> the hotel tax alone >> right, just the taxes per might is over 11 grand but for perspective, thety warner suite is 46 grand a night. it's half the size and only one bedroom. so if you are one of these royal families that wants your security, your staff, your family all in one room, that's the audience, that's market for this, and they are selling this a lot more than we would think amazingly. >> fascinating. >> $6 hot dog. i want to try that that's about all i can afford. >> i can afford that one. >> thank you. let's get to contessa brewer for a market flash. >> breakfast included? here we go itt, international game technology, these are the guys

that make slot machines, game technology, lottery products and services internationally on pace now for their best day in six years, up almost 12%. and they are also competing with scientific games, which makes, again, gaming technology both of these companies looking to enter the sports wagering world. as you can see, scientific games popping up now more than 12% great days for both of these companies, scientific games on pace for the best day in a year. >> thank you. coming up, shares of esperion higher today. out with new data on the cholesterol drug how does it measure up against how does it measure up against th how does it measure up against th etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. esperion's ceo joins us next

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is a large one nearly one in three american adults has high cholesterol according to the cdc heart disease and stroke are two of the leading causes of death in the united states esperion has an experimental drug shown to reduce levels of ldl by 18% in a clinical trial compared with placebo. it was given on top of statins a key question is how it will compete with what's already on the market lipitor statins are generic and cost just a few dollars a month. there is a new set of drugs from amgen that lower cholesterol levels more. they are given by inskreks and they are pricey. joining us is esperion's ceo tim mayleben thank you for being here so tell us about these new data and where you see your drug fitting into that paradigm if it's approved. >> sure. the data we announced earlier this week, as you said, we dropped cholesterol, it's an oral once a day pill, and it

demonstrated that you could lower cholesterol by 20% on top of the most prescribed drugs, statins, and was safe and well tolerated as well. and what we see this drug being used as is for, as you mentioned, the one in three people today who are taking a statin or taking the maximum dose of a stat in that they can tolerate and not getting to their ldl cholesterol low are goal again, one in three patients we think will be able to get to goal that are not getting to goal today. >> these patients typically are patients that have had cardiac events so heart attack or a stroke. there are maximum statin dosages and they still can't lower their bad cles all so this helps them reach that last step. >> right

this term maximally tolerated statin connotes there is a problem with tolerability with statins. what we have seen in our clinical studies is that bempodoic acid doesn't seem to cause the same muscle aches and pains that statins have been known for, and so we think that could be an important differentiator for our drug. again, it's an oral -- it's a once daily pill. so super convenient to take. again the results have been very good efficacy, 20% ldl cholesterol lower, which can get six or seven million patients to their goal. >> the safety, that came up earlier in the year when you had a trial which looked like there may be some safety concerns about the drug this one seemed to allay some of those fears, this new study. jpmorgan came out with a note, skeptical about the data what can you tell us about the safety >> first of all, we call ourselves the lipid management

company. the reason for that is we have asem bltd what we think is the greatest concentration of lipid drug development experts anywhere in the world. so we are looking at that data just to remind, we have 4,000 patients that have enrolled and taken our drug, most for more than a year. when we put that data together, and this is one of the announcements that we made earlier this week when we put all of that data together, our drug looks as good as the sugar pill or the placebo that we had the patients not taking our drug taking so very, very well received. >> fda approval is expected. this could hit the market in 2020 let's talk about pricing you expect the price to be, what, $3,500 list price. it's an oral, as you mentioned, pill

pcsk9 inhibitors are priced at $14,000 annually how can you price your drug at a quarter of the amount of this rival drug and how do you thin t sorts of patients opt for your treatmentaz treatment as posed to pcsk9s >> from the beginning, we have said, and again i would highlight that most of the folks on our team have been involved or were involved in the development of statins so we have a history, a legacy in the development of ldl cholesterol lowering drugs we are developing a new drug now that can compliment statins, but for the many, not for the few. so not the few patients that have super high levels of ldl cholesterol need a specialty drug like the pcsk9s that you're talking about, and have to inject themselves every couple of weeks our drugs are really positioned for the many patients, the millions of patients who are taking the maximum dose of a

statin that they can take, but still need additional ldl cholesterol lowering in some cases that's no statin at all for those patients we have a convenient once daily pill that they can use and get their cholesterol down to their targeted goal. >> so when you look at your company's you know, you're really a peer play. this is what you're focused on how are you looking hat business development in terms of acquiring a partner outside the u.s. to potentially help you sell the drug, or are you looking to build out your own internal pipeline or both? >> it is the key business question that i think we get from everybody, and our philosophy has always been we're going to put a structure in place from a commercial standpoint that -- that will benefit our shareholders, so if that is a worldwide partner, it will be a worldwide partner. if it's a more regional partner it's something that we've talked about more recently or emphasized more recently and then it will be a regional partner. we're also open as lots of

companies like us. we're also open to more strategic considerations as well i think at the bottom of all of this though is we have incredible conviction that what% we're doing is valuable, and it's going to benefit millions of patients who don't have good options available to them today, and, you know, i would just highlight that my own wife is someone who has genetic cholesterol issues she was born with very high cholesterol levels and is also someone who can't take a statin so i've lived for a long time now with someone who experiences what a lot of patients across the u.s. have experienced. >> would she be taking this drug >> would love to have her be taking this drug, absolutely. >> tim, thank you. >> the ceo of esperion and our own meg tirrell. dom, over to you. >> thanks very much. it's a food frenzy right now

as the biggest restaurant chains roll out their earnings reports. we've got pizza, beer and a whole lot of cakes on the heotr side of the break. it sounds appetize, and i may need statins after this.

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up throw major u.s. dining chains reporting their earnings, and here's kate rogers with a look at what's cooking. >> reporter: that's right. yum brands will kick it off with reporting better than expected revenue boosted by sales of new menu items and deals like $1 nacho fries at taco bell which contributed to a 5% comp boost there. kfc comes up 3% and pizza hut fell short of expectations with comps down 1%. the ceo told cnbc today the company needs to do a better job of communicating that brand's value. the stock though is up nearly 5% dime brands also reported top and bottom line beats this morning. the company is seeing a big boost in comps, especially applebee's ihop costs grew by 7% and also in the casual dining space cheesecake factory with a miss on revenue, but comps were up 1.5%, less than projected the company is set to open its

200th cheesecake factory location next month. it was noted that the brand could benefit from a revival in retail as many of its locations are in top-tier malls which is an interesting point, called class "a" points but the stock is lower today. >> thanks, kate. kate rogers. after the break, rays of sunshine and despite this two-day rally the month of october has been pretty miserable. "power lunch" will be right back

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heart, folks a market rally today, and we finished the month with a nice two-day rally. in that vain while much of the focus will be on the scary drops for a host of stocks this month, let's take a look at some of them amd down 42% nvidia 24% amazon almost bear market, down nearly 20% it was below there at one point this week. netflix down 17% ibm down 23% melissa? >> on the flip side though, there's been a lot of big names bucking that trend it's la up 26% twitter up 25% walmart up 8%, mcdonald's trading today to a new all-time high. >> yeah. >> that's up 5, and our parent company, comcast, one of the only nasdaq 100 winners this month, it's up 7%. >> for mcdonald's it's got to be the mcrib. >> i have a soft spot for the mcrib, i have to be honest >> 26% gain in tesla that makes all of musk's sins disappear or papers them over.

>> something that ryan dietrich said yesterday on this show. the if we didn't get a gain today, it would be the first october in s&p 500 his interest where we didn't have at least one back-to-back rally one back-to-back up day. something to keep an eye on for sure. >> got an hour to go. >> yeah, we do. >> thanks for watching power "closing bell" right now it is time for "closing bell." i'm sara eisen here at the new york stock exchange. final trading day of the month it was a scary october for the market does look set to close out on a high note. we'll survey the damage done and take a look at what november may hold for stocks. plus, general motors skyrocketing today with earnings per share smashing wall street estimates. a top auto analyst tells us why gm's rally could just be getting started. >> and i'm brian sullivan. facebook flying after earnings, but mark zuckerberg outlining big challenges for his company on the earnings call