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 we'll talk about facebook and what it means for the other

faang stocks as well and it's predicted stocks will rally from here but only in the short term and we've got a big-time long-term warning and he's here to detail that as "closing bell" begins right now ♪ welcome to "closing bell." welcome back, brian sullivan this is the final hour of trading in what has been a very volatile october for stocks. markets staging a big rally today, second day in a row the dow surging right now 430 points first back-to-back gain we've seen in the entire month of october. >> yeah. how good exactly is it well, if somebody comes up to you and says when is the last best two-day advance for the s&p 500 you'll know the answer because you watch cnbc, and that answer is june 2016. that's the last time we've had two days on the s&p 500 that have been this strong. as always, we've got your full team coverage of these crazy markets. bob pisani, of course, is here,

bertha coombs at the nasdaq and dom chu with a look at the stock that suffered the biggest drop so far bob, let us start with you in what has been an incredible two-day turnaround. >> i know it's been a lousy month but the dow up 4.5% since the bottom on monday, and it's across the board, including the stuff that's lagging the most. financials had a horrible month, but, look, gaoldman sachs was 22 on monday afternoon. that's about an 8% gain. industrials had a horrible month as well. caterpillar. caterpillar on monday was $112 look here, 121 the do the math. about a 9% gain. home building stocks, awful of the straight down the whole month, and here's home depot home depot was 171 monday. it's 177 today do the math here about a 4% gain. that's even better still in the s&p 500 healthcare generally held up better, slightly more defensive

names, but even here we're getting nice rallies on merck. merck was $70 on monday and here at 74 right now. you'll do the math there that's about a 6% move and pfizer has done fairly well. materials also another awful sector overall in the month. dow dupont monday morning. it was 51, low 51s and now it's 54 another 6% gain overall. now, the only sector that is lagging a little bit, energy stocks, because the price of oil has been holding -- has not been doing too much there's chevron, and chevron was somewhere at so 3. now you see 112. even there you're seeing with a 3%, 4% gain so it's going in hine with the s&p. it's not outperforming that's the one sector that's badly beaten up that's not outperforming in this particular bounce overall, we'll end today exactly like yesterday it looks like we want to close on the highs guys, back to you. >> and have not been negative today. >> no. >> the low of the day was 134. >> same as yesterday we're at session highs

bob, thank you. a brutal month for the nasdaq in particular index currently on pace for its best two-day gain since 2016 and still having its worst month in years. bertha coombs, what's driving the index? >> that's right, sara. on pace for its first back-to-back gains for the month and poised to finish out of correction as a result as is the nasdaq 100 which i'll remind you started the month at an all-time high the large-cap tech is really that -- that sector is the big driver of the day's rally. the day's best big-tech holder, t-mobile, the deal with sprint which beat on earnings the real strength coming from netflix and the faang names though which are all rising on fairly strong volume facebook up after its earnings report and amazon ends the month still in bear market territory, down more than 20% from its september high but substantially cutting its losses for the month. now just down about 20%. at one point it looked like it

would be down 25%, and apple is on pace for the smallest losses of the big momentum players. less than 6% below its october 3rd all-time high. apple is rising here ahead of its earnings tomorrow. we'll see, amend a lot of folks, brian, are watching to see whether apple's earnings can help be a bit ofa catalyst for a turnaround for tech stocks as we start the new month >> yeah. those are going to be big numbers. bertha coombs, thank you very much we'll see you in a few minutes all right. maybe we should call this the tums market because it's been a gut-churning ride the last couple of days even with today's gains, hub drefds billions of dolla-- hund of dollars lost. let's find out what that is. the always generous dom chu back at hk with a look at the stocks that have been beaten up the most this month. >> that's right. sully, sara, bertha and bob.

we speak in percentage terms often, and that's how professionals like to view it. sometimes it helps to put dollar amounts to how much shareholder value has been lost because of the kinds of declines that we've seen so we took the five biggest companies in the s&p 500 and looked all the way back to september 20th that was the last closing record high for the s&p 500 how much market value have they lost since that market peak? well, for amazon, from a percentage basis you heard the numbers from bertha. that's translated into a loss of $164 billion for the likes of amazon that's a massive move lower we know it's a very large company, and to put it in perspective, alphabet has lost $174 bill crop microsoft $45 billion worth of market loss and berkshire hathaway $35 billion there, and apple has been the real standout because in the whole market

melees we've seen it's only lost $2 billion on a $1 trillion valuation. that's good. if you're looking for a silver lining here, the market moves lower have put a lot of stocks on sale from a valuation perspective. if you look at forward price-to-earnings, one way to measure how many money in stock price you pay for anticipated dollars in earnings, we're at the lost levels we've seen since the begins part of 2016. now around 15.5 times forward earnings hit a peak of around 18.5 earlier this year, so a valuation argument might be made given the kinds of losses we've seen not just in percentage terms but also market value as well. guys, back over to you. >> that's a good chart, dom, thank you. let's talk about all of this with our "closing bell" exchange renee norris joins us, caleb sels biand rick santelli is joining us from chicago and rick trust as well. keith, lowest valuation for the stock market as dom just showed

us since 2016. does that mean it's cheap? >> buying opportunity. we got massively oversold at the beginning of october caught our first buy signal on october 4th and got one of our best buying signals on october 10th you can see it coming at the end of september, breadth and momentum really starting to deteriorate as we got into the beginning of the month a lot of people made the mistake, and they were kind of scratching their heads, wond yerg is th wonderring why is this market going down if there were fundamental issues inside the marks, mostly around tech and financials, they gave people pause when you talk about the exogenous events >> the bye-back blackout how much does that matter? >> it matters a lot when you have companies with massive billion dollar buybacks going on and doesn't give the underpinning to the market. >> that happens every quarter. >> it does, but the other thing that you have to remember is how

the market is structured fundamentally these days lots of program trading. lots of etfs i know we talk about this a lot, but when markets start trading lower or higher, a lot of programs kick in and on the redemption notifications, it was a mutual fund, a manager would pick one or two stocks to raise cash and now you have to sell across the board. >> brian talked about that a lot. >> keith, welcome back, anytime, by the way renee, let's go to you because you don't believe what we saw the last couple of days, not including today and yesterday, i mean, the downturn was the mark of something bigger, but you do believe it marks a shift in how we should look at investing. how and why? >> you know, i think that everybody has been waiting for a big correction in this market, and so while i don't believe it's the end of the bull market, it's not the beginning of a bear market, but it definitely is creating a shift so, i'm more interested right now in mog more defensive issues growth stocks have been really

building and crowing this market, but, you know, this market is a six to 12-month looking forward beast so it's signaling to me that we're going to have. impressed or expressed different kinds of profitability, that that is going to be depressed, and so we've had a nice pickup this year because of the tax cuts that made it easy for them to be profitable so next year i don't think that the profitability is going to be as high, so i'm more interested in adding some more defensive value-oriented stocks and taking into consideration that we've got higher interest rates, tighter job market, tariffs. there are certain sectors that you want to be in and certain sectors that you don't want to be in. >> caleb, it sounds like from the notes that we've got on your positions that you're also feeling a little bit cautious and not quite ready to dive back in. >> yeah. i think the way we're approaching this is we're looking for the secular winners that are trading at cheaper valuations, so a few names, sherwin williams which over the

past five years has traded between 18 times and 36 times earnings it's now trading at 18 times earnings bolero another one trading at eight times forward. if you look at valero since 1977, the u.s. has not built a major downstream refinery and so over that period the stock is up over 1,700% so to be able to buy that name we think it's a buying opportunity. but when october sells off as it has, november often follows with volatility as well then we have better seasonality going into it. >> valero is really a refiner. you drive more and refine more oil. sherwin williams, a paint company, directly on the consumer buy a house and paint the walls. >> right. >> are you still optimistic on the consumer are those bets specifically on the consumer or they are more than individual stocks and we

like the valuations and fundamentals it's not necessarily a broader market call. >> it's both, but if you look at the data today, adp data overshot and eci came in higher so we're seeing wages pick up. the highest wage growth in year and that will be tough on profit margins for some corporations but, you know, if you're selling paint or refining crude, it's probably a good thing for you. >> we were talking about the dollar it's had a 2% gain on the month, and it's sort of quietly been marching higher every single day. the what levels are you wamp, a -- you watching, and it's been such a big theme of pain for earnings this season. >> and the paint probably gets worse because dollar liquidity will continue tobe an issue. it will get lower as the fed continues to tighten the debt around the world, of course, is at quite left levels, so it is something to contend

it it isn't only emerging markets there is a scramble. the swaps market, the forward markets that continue to weigh on balance sheets of european banks, it will reverse a bit because of the disparity between the economies of the u.s. and the economies of europe. that divergence actually will relieve some of the purchases and dollar swap needsch overseas investors. i think it's easy. i think it's marching to 100 it's currently hovering just above 97 i challenge anyone who has any technical interest to look at any chart more than five years long, and it certainly looks like 100 will be a magnet. one quick thing on the fixed income market. the curve is steeper than it was, but just to give you an idea how little treasuries paid attention to a lot of the volatility, we're currently trading 3.39 in a 30-year. the high yield close was october 30th we're less than a basis point

away from that. >> thank you all for joining us. appreciate it. all right. on deck right here on the worldwide leader in business news, we're all over this big rally here stocks looking to close out a brutal october on a high note, but coming up, a man you need to hear from. guinn heim ceo scott minerd on why these calls won't last for long, and then you'll need to get ready for an even more wild ride. >> after the break, shares of general motors spiking today as earnings trounce expectations. what does it mean for the rest of the auto sector, and should you be buying? stocks are up more let's get started. show of hands. who wants customizable options chains? we'll discuss that next.

good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. it left behind an when environmental issue.down, it was environmentally contaminated. one of the biggest successes we had early on, was entering agreements with the epa on cleaning up the property. we're recycling over 98% of the products on site. the impact that this project will have on the community will be enormous. ♪ ♪ whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research.

is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

i am a techie dad.n. 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. general motors flying today. now on track to close positive for the month after a massive earnings beat this morning that sent shares higher. our phil lebeau is higher. >> sara, this earnings beat comes down to gm's two largest markets. china and the u.s. and the first of the u.s. is a pretty simple

formula. here's how they did it you look at the average transaction price. up $800 per vehicle in the quarter. they are spending less to get you to buy down $500 per vehicle for incentives, and that means the profit per vehicle last quarter, up $605. the story in china is that this is a market. while it's starting to feel some pressure that general motors is doing pretty well in posted a record half billion dollar profit. here's the cfo of general motors >> we've had record cadillac sales in general and we're up 20% year over year, and as in an overall strong luxury market cadillac is dokesceptionly wein well as well. >> the company is now offering buyouts to 18,000 salaried workers here in north earning in

they have about 50 no,000 of th. they haven't said what the target is or what they would like to take the buyout. this is an example of keeping costs in line as much as possible take a look at the major automakers when it comes to the returns in the last month. gm, it's [ laughter ] you know the story there that's a it's la specific story. gm and ford had their own specific issues and fireiat and chrysler is under pressure and they also announced a massive charge of practically $800 million as it continues to negotiate a settlement over the diesel emissions of thousands of vehicles here in the u.s guys, this is a long overdue relief for the most part for auto stock investors >> all right phil, keep the car running and stay right there let's also bring bring in-- brig into the conversation. ivan, the stock is now up 21% this week. are those the gains that you've been looking for, and, thus, do you bring down the rating just a touch or do you keep the pedal

to the metal on the strong buy for gm >> i think gm continues to go higher first, the average age of the car right now in the u.s. is still close to ten years old at the trough of the auto cycle, it was about 11 and at the peak it's about 7 so auto sales as far as an upgrade cycle or necessity purchase cycle have a long way to go you also have people who buy new cars every three years because of a lease cycle and also one of the biggest motivators of new car purchases is all of the infotainment and collision avoidance features that are now available in new cars. so i think that the runway still has got a ways to go i think there's further uniside in gm and ford. >> so on ford, phil, anything that you can extrapolate from the gm quarter on how it bodes for ford which is having a much more difficult time for its business >> those are ford specific issues i'm sorry. let me quickly enter those and with regard to ford.

those are ford specific issues weighing on the stock over the last -- really over the last 18 months as they work through those, and if you're just strictly looking at the auto birks the good news sheer what gm and ford and fiat chrysler are seeing. >> you're saying ford is a buy, down more than 20% this year. >> yes ford dominates the pickup market the ford f150 is the number one selling vehicle in the history of the auto industry and general motors dominates the suv crossover, the luxury model with buick and cadillac and the large suv model with the chevy suburban, tahoe, gmc, dinali and yukon, and the demand for those vehicles remain strong those are the most profitable vehicles gm has a 3.6% dividend yield and

ford has over a 6% dividend yield so those are pretty good dividends to pay to you wait for ford to recover. i believe gm will also continue to go higher >> ivan, it hasn't been a great 12 months fornist carmakers, right? fiat down 5%, dollar eke jent and ford though down over 20%. to sara's point, we're in the strongest consumer economy in decades if not at all time and ford doesn't seem to be able to sell a car does jim hackett, the ceo need to be pushed out now or is he ultimate lit person for the job? >> i'm really not sure it's not totally his fault ford needs some redesign in a number of their vehicles, and they need a bigger push in the luxury market. lincoln still trails cadillac significantly. cadillac is the dominant american luxury car brand, and also in china and also buick

offers a tremendous luxury value product, so ford is missing out on a couple of areas they are winning in pickup trucks they are winning in sports cars. the mustang is doing very well there's a number of different models across all product points, all doing well gm right now has the best lineup it's ever had as far as vehicles in the history of its -- in the company's history. they are led by one of the best ceos in the company's history so i think the wind is at their back yes, the strong employment picture bodes well for the car market because the first thing that somebody does when they get a new job is get a new car so that's also why i think the car demand cycle has a ways to go. >> maybe why we saw the u.s. as a strong point in that quarter for gm, phil though. you highlighted china and through the sound bite from the gm cfo is that a sustainable gain for these automakers in china in the middle of this trade "frost/nixon" and trade war

which could get worse? >> china is a concern. there's no doubt about that, sara, go ahead china is a concern look, september sales were down 50% for gm they still manage to post record profitability in china, but if it's weak in october, which we expect it to be and there's not some type of a sales cut reduction in china and which see sales down double digits for november and december, yeah, that's going to weigh on the bottom line for general motors and for all the automakers. >> we'll leave of it there guys, good discussion. >> on what is the big winner of the day, general motors. right now we've got to send it down to weese because our own eamon javers is joined but formerly our own and now economic national economic adviser larry kudlow like a cnbc reunion. take it away. >> feels like that in the state dining room, here at the white house with the national economic director larry kudlow. you guys just finished up an

event on worker retraining and apprenticeship the president said something fascinating and that's if republicans don't do well next week in the mid terms he thinks the stock market will take a big leg down what's your prediction >> i'm not going to make a prediction i do think part, part of the uncertainty in stocks is about the election and i will say this i think a lot of investors, maybe not all, but many investors are concerned that a big change in congress would cause a rollback of the chief factors driving in strong economy, lower tax rates for businesses and individuals, deregulation, opening up energy and so forth i think folks are worried about. >> but if democrats only take back the house, the president is not going to sign anything that they send him so how dangerous is that for the stock market and for the trump agenda, do you think? >> well, i don't know. i mean, again, i'm not in the forecasting business we have a lot of smart political people in the white house.

i myself, i can't help myself. i think it's going to be close in the house i think we pick up a couple in the senate lord knows i could be wrong. >> let me ask you. earlier in the week the stock market was spooked a little bit by the report that the president is set to impose tariffs in december on the chinese, all the rest of the tariffs up to 500 billion if talks don't go well in argentina at the g-20 is the president set to do that in december? where do you think we'll land on tear sniffs. >> one of the things in this whole game is don't get ahead of your skis. we may have a very good meeting in argentina with president xi i'm not sure the agenda hasn't been worked out. these things are very hard to predict. i would said nothing is set in stone right now. by the way, the president on one of the cable shows did say, and it didn't get picked up that if some kind of amicable deal with china were to happen and a lot

of tariffs would be pulled back, not promising or forecasting, but giving a very important hypothetical. >> what is that deal though? what ultimately with the president accept from the chinese to pull back those tariffs? >> well, i don't know. i don't want to put words in his mouth. i don't want to get ahead of that story certainly the chinese understand, you know, we need remediation on intellectual property theft, forced transfer of technology, ownership and tariffs on various ag and non-tariff barriers. i said ownership and licensing they know what our list of asks are. they have been looking at them we haven't had intense talks lately, but there's always communication so they know and who knows. maybe -- i'm not forecasting i'm just saying it is possible some good positive things -- could, i say, could come out of president trump and president xi

talks. it's possible. >> and are you saying that those talks are not necessarily set in stone in terms of a face-to-face meeting between the two leaders or are we guaranteed to see that in argentina at the end of the month? >> i think there will be a face-to-face meeting and what the agenda will be is all in the planning stage but, yes, we will meet in buenos aires. ever been to buenos aires, pretty cool. >> no, but i'm going with you guys at end of the month. >> we'll seat pink palace. >> one of the questions surrounding all of this is what's the timing for the president's decision does it necessarily have to be december, or is there some, you know, kick the can down the road of the first quarter in terms of imposing these tariffs what is the trigger point for the president to say, yes, we're going ahead with another 275 or 767 o 267. >> the positive talks determine this, not an arbitrary timetable. that's not fair. if the policy talks go well, we'll have a much better

situation, and if the policy talks don't it may deteriorate there's no timetable here necessarily. the president said this the other night on the air, another network. he said, look, if we have some promising policy discussions, i don't know about a full-fledged deal but if things go well, maybe some tariffs get withdrawn and maybe not so it's all about the policies, eamon. >> let me ask you about the policies that we've seen market weakness and really white knuckle last hours of trading over the past week what do you think explains that, and where do you think we're headed in terms of market weakness in the dow has been what, essentially flat at this point. >> i think it's up slightly now. we've got, as we talk, we're up about 800 points the last two days, but it's been a very difficult correction, i understand that. look, there's a million reasons for corrections. they come and go heaven forbid i'm going to weigh in on a forecast what i'll say is this.

early on you said it was a healthy correction, and is it still health >> i think corrections come and go, and i think that's part of the business cycle it's part of the stock market cycle. now, look, my view is the economy is in excellent shape. i thought the president's remarks today were spot on we're running better than 3% growth, phenomenal consumer and small business confidence. blue collar workers are running as best as they have since the 1980s. labor force participation rate, women, asians, hispanics, african-americans, a low unemployment rate. by the way, the inflation rate is starting to dip down in recent months. i -- i think it's a terrific economy, and i think the confidence numbers really tell a story. >> great larry kudlow, national economic council director thanks very much. >> thank you very much. sara, back to you from here in the state dining room here at the white house today. >> always good to hear from mr. kudlow eamon javers, thanks very much

for bringing that to us from the white house reiterating the administration's positive stance on the economy, 3% plus growth and better environment for workers, higher confidence numbers all true wouldn't say it's a healthy correction though. >> yes, and getting in a little comment about the mid terms next tuesday saying, hey, some of what we may have seen could have been fear that the democrats take the house so kind of a gop line got into the interview there, but it's great to see larry as always. >> something that we'll talk to our guests about in the next hour and a half or so. time now for a cnbc news update with contessa brewer. >> here's what's happening right now. vice president mike pence is making a quick campaign trip to ohio to boost republican candidates he mentioned president trump's to the pittsburgh synagogue where 11 people were murdered. >> president trump and i have made clear what happened was not just criminal it was evil, and we will never allow violence or anti-semitism to take hold in the united states of america. >> the duchess of cambridge paid

a visit to the imperial war museum in london where she viewed letters from the brothers of her great grandmother, all of whom fought and died in world war i. a new stud from florida state university suggests eating 30 grams of protein at least half an hour before bedtime may be good for the body researchers found proteins such at cottage cheese had a positive effect on the body's metabolism and also improved mental health. 30 grams that's the cnbc news update. brian, back to you. >> i don't think there's any protein in my ice cream. >> a little bit. take comfort >> cottage cheese before you go to bed the somebody get me a gallon of shottage cheese most nights. contessa, thanks very much 24 minutes before the bell and we've got a big-time rally on our hands. the dow is soerg up.

the a 3.5% gain over the last 48 hours today first day this month, by the way, that we've had back-to-back gains on the day. >> gunk him says the's lre aot more to come withthis

all right. the dow is you have 348 points with about 25 minutes left in today's session. let get back down to our whole team coverage following the biggest movers as the stock rally in the last day of october. happy halloween, by the way. bob pisani is here on the floor of the nyse. bob, first to you. >> off the highs, 56 points in the dow. no matter. we've moved 1,100 points in the dow jones industrials since the bottom on monday, 1,100 points let me show you the big gainers, again, from the bottom on monday of course, industrials had been a big loser this month and caterpillar came roaring back. 9% since the lows. financials with an ugly month and goldman up 8%.

decent not as much of a selloff in the pharmaceuticals and merck rallied nicely and pfizer a horrible month for the home builders and anything home-related and home depot is moving chevron is okay. i would like to see a little more movement from the energy stocks and given the weakness in oil. here's the important thing, the vix has been dropping all throughout the last couple of days look at that down two points. that's very important because we've been highlighting that the cash contract have much higher than the futures contract. that's a tine that traders are freaked out about the momentment that we've been seeing recently. you'll get the vix contract way down again, you want that vix lower than the contracts contract in the future. >> bertha coombs watching what's happening at the nasdaq

including all the faang stocks which are back up. >> all back up one of the things that intrigues me today is that virtually all of the major chip-makers are up as well. the philadelphia semiconductor index hit a low on tuesday, and it is up about 8% from that low. we are still on pace for a horrendous month certainly a scary month for those who are long chips, down about 12% and down about 3.5% for the year so still very much in correction territory, but out of that bear market among the best performers for the month, amd it's up for the month -- actually among worst per formers. amd is down 41% for the month and micron which warned about issues involving demand, also down 6% for the month and xlinx reporting good earnings. we're starting to see a little bit of recovery, but it's very,

very faint when it comes to the chip sector. back over to you. >> all right, bertha, thank you very much. back in august, your next guest warned, that yeah, stocks may have a little more room to run from here, but it could be a very rough ride over the next year, year and a half. >> a look at scott minerd, ceo of guggenheim partners back in august you said,ia, we could go out in a couple of month and you believe you have recession and are you skill sticking by your stocks could follow 40% >> reporter: yeah, i am. i think we're going through a standard seasonal krefnlgts i think we've probably put in the bottom by now and that people should be buying for the trade, but, you know, i think by the time that we get into the second half of next year, you know, stocks will have seen the best

part of their run, and i think we'll see, you know, a bear market probably maybe 40% to 50% from the highs that i expect to hit next may or june. >> okay. we'll get into that. i'm sure sara's got a lot of questions in a section let's talk about this. where exactly do you stand in we've got a couple of weeks to go a couple of weeks or do they stock market rally and have a couple more months left of life in it? >> i think there's is a% to the upside here. the market is doing everything that you would like to see it do to tell you that this is just a correction we broke the accelerated downtrend this morning we got a buy indicator out of the trend indicator last night and got strength indexes that are telling you that this is the end or we're nearing the end of

the correction, and -- and, you know, given that the stocks, you know, traditionally continue to rally until about six months before the end of the beginning of a recession which we think will occur in the first quarter of 2020, that tells us that we probably have room to run yet for stocks. >> so, a bear market call for next year isn't exactly consensus, scott i get that you're seeing recession develop in 2020. what's -- what's going to cause that is it the trade stock in the fed raising interest rates what do you see so clearly that some of the more optimistic folks that are looking at the data coming in, confidence data yesterday at an 18-year high, the gdp data which continues to trend above 3%, the employment data which continues to point to a multi-decade low in the unemployment rate, what are you seeing that's not a rosy picture for the u.s. economy >> well, when you look at, for instance, the shape of the yield

curve, the shape of the yield curve is accident with what we would expect to see 18 months before a recession starts. the monetary policy. every expansion in the post-war era was the result of the federal reserve raising rates too much as i like to say, expansions don't die of old age they die because the central bank takes them out behind the wood shed and kills them you know, we see that the fed has no choice based upon its dual mandate as long as unemployment continues to fall, and we continue to see price pressures month, they will have to continue to raise rates. they don't have a man tate for -- by the time we get into the first half of 2012, all the physical stimulus that we've had that gives us a lift at this point of the expansion turns negative, so you'll have a confluence of higher interest rates and a drag coming out of

washington's fiscal policy that's the formula for recession. >> okay. so if you're listeners and viewers are watching and hearing you and believe in what you say, scott, what do they do i mean, they don't want to get taken out behind the wood shed with their money do they put it in a milk crate and bury it in grandpa's backyard ful market is going to fall as much as you think, what do we do >> rook, brian, it always depends on -- whether you're an investor or you're a trader, if you're an investor, regardless of, you know, the opportunity for another is a% in stocks. after we've had a run that's as big as it's been since 2009, you know, it's time to start reducing your exposure to equities and to use strength that i think we're going to see over the next calm of months it's a chance to rheal lotion -- you know, store up some powder

northerly what i expect to happen after the pearl spective begins if you're a sec lator and grade them until you begin last year and look at the opportunity before the seasonal president bush ours take over in the second half of the year. >> scott what if the republicans surprise and get more control of both houses next week would that change your view if we could see more of pro-growth stimulative policy out of washington, make the tax cuts permanent and do a round two, more deregulation and that sort of thing could they prolong this? >> i think so. look, if republicans take both the house and the senate, i think we'll get a near-term lift to the economy people will be looking for more stimulus and i think that, you know, congress have have have the opportunity to make the tax cuts permanent or deliver on

their trim for a middle-class tax cuts that will limit -- we've seen many excesses in the system. we've got more jobs available than workers to fill them. if we prolong the expansion, that will put more pressure on wages and prices to the upside which means the federal reserve will be even more aggressive in increasing interest rates, so, you know, ultimately i liked larry kudlow's comments earlier in the show. you know, recessions are normal and healthy, and -- and it would be good for us to have a reless so that with -- if the recession

occurs the downturn will be greater. >> we've got 15 minutes to close here before the "closing bell. dow holding on to a 300-point rally. up more than 400 but still rallying into the close of the trading day and the month. >> technology is doing pretty well facebook is helping to drive the whole technology sector and coming up the risks that he. sees our watching "closing bell" on the worldwide lerd in business which is which is we're dodge after. so lionel, what does being able to trade which is we're dodge after. 24/5 mean to you? thrs

ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? whooo! want to take your next vacation to new heights? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new york! from bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so you can make your next trip... monumental! when you retire will you or will you just be you,

without the constraints of a full time job? you can grow your retirement savings with pacific life and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. that's the power of pacific. ask your financial professional about pacific life today. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for?

to go before the closing bell. 1% gains across the board and 2 it is for the nasdaq heading into the final trading day of the month of october a painful month set to end on an upbeat note with back-to-back gains for stocks first time we've seen it all month. >> a lot less than we were. >> right, true. >> cooled off a little bit leading was goldman sachs, apple and visa in terms of the point adderers we lose a bit of steam here as

brian said heading not close the stocks making a big move. >> coming up tomorrow, cnbc's own andrew ross sorkin will be hosting his deal book conference, and we'll bring you all-day comments from a lot of great speakers throughout the day including evan spiegel, lloyd blankfein and theater thiele and that's all during "closing bell. the al let's begin. yes or no? do you want the same tools and seamless experience so stick around. what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left.

let's do some card twirling twirling cards e*trade. the original place to invest online.

i am a techie dad.n. 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. facebook shares are soaring today after reporting a beat on earnings yesterday some even numbers on bottom line what's in store now for the social media giant in the future nathan, you guys downgraded facebook in september which was a good call, and you're not turning positive after last night's release in. >> no. i think people were really bared up into that print most people were worrying about the guidance on 19 and they gave

you pretty kind of cost guidance on 19, and i think was really oversold today was a bit of a relief rally. the problem is still about the revenue acceleration and the ability to have monetized stories, and our feeling is for the next couple of months it's kind of stuck there. >> why don't you have confidence that they will be able to monetize that with a news feed still a company growing 33% top line >> because what i worry about is stories is a different ad format have you been trained now to swipe away and scroll through story ads? >> you can do that very quickly. >> right we do focus group work on snapchat we always ask them about the advertising exposure they don't even see ads because they train your brain and finger to go like this so what i have worry is there's a smart team, a great product people but is the transformation let accretive is it a bad trade going from

fees to stories and at this point i'm not making a paint on that situation now we're talking about tax rates, buybacks and expense control. >> can i say something we've been saying all along the expense side of social media is kind of the dirty details. everybody wants to focus on top line and tam. >> because it's fun. >> our twitter call, like the facebook call is expenses are rising due to the -- you have to satisfy to lawmakers that you have this under control and then you will saw -- we thought what they said about cost was, was a -- right now we've got to get

safety cleaned up in their regulators the price target that you have right now, it's not coming down? >> receipty real interested to talk with you again. os when we come back, the cling countdown. the dow is up 280. thbroad coverage and still may save you money on monthly premiums and prescription drugs. these are affordable, all-in-one we're back right after this. udeg coverage. in fact, last yeareg humana medicare advantage prescription drug plan members saved an estimated $6,900 on average on their prescription costs. call a licensed humana sales agent or go online to find out if you could save on your prescription drugs. this plan

delivers coverage for the three things you may care most about; prescription drug coverage, doctor visits, and hospital stays. plus, potential cost savings on your plan premium. humana has a large network of doctors and hospitals. so call us, or go online to find out if your doctor is part of the humana network. ready to learn more? call the number on your screen for this free, fact-filled decision guide. there's no obligation, just good information. call the toll free number on your screen, now. you'll learn all about a humana medicare advantage plan and how it compares with your plan. with most humana plans, you get coverage for prescription drugs, doctor and hospital visits, and more. all for zero dollar monthly plan premium in most areas. most humana medicare advantage plans even include dental and vision coverage. and, most humana medicare advantage plans include the silver sneakers fitness program at a

local fitness center. so call or go online to find out if your doctor is part of humana's large network of doctors and hospitals. and see if a humana medicare advantage plan is the right plan for you. pick up the phone, and call the number on your screen. the call is free. and licensed humana sales agents are standing by. so call now. ♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo.

all right. welcome back three things to focus on number one, we'll do the god, the bad and ugly theme why not. kind of a wild west bharkt the last couple of days. tap, moulson coors best performer in the s&p 500. the earnings, they weren't blowout. nobody is saying the good times are here again, but you might want to pour yourself a cocktail because the stock is up nearly 10%. the earnings not as bad as some thought. the bad is the xlu etf for the utilities is a risk-off mode here so we're starting to see risk on, and guess what nobody wants it on the utilities when they are buying regular stocks and the ugly. not today, but this week ibm, folks okay the stock is up a little bit but not as much as the rest of the dow, down 22% this month hand islamist ott liking that red hot deal the good, the pad and to the

smart and handsome >> ibm down 23% this month. >> down 6.7% in the s&p 500. worst since 2011, but one heck of a rating in the last couple of days. >> one whether of the biggest banks at the nasdaq and virgin islands. >> sara. and there you have it. call trading day of act in the books. welcome to choicing develop in brian sullivan here as always with mike stoney. let's take a hook at now we finish the if i and the dow managing to close by loy -- but,

fill, the first back-to-back gain for the month and that and the 1 has fain today, technology, communication service wiz bore the brunt of the selling in october and led the market higher. that's why you saw the nasdaq pop 2% still, for the month of october the market is down 1.2% making it its worst month since the financial cries back in 2008 the russell index of small chaps game back only a third of a percent. that, too, got beat up of the aunt, a look at the big new york chance movers 3z bertha coombs is tracking the numbers at nasdaq bob, let's start with you. >> an amazing close, dow flrmt -- it was a big numberin

led me kney. the red rat did not help them that will caterpillar is down 20%. again, not a typo. two-year low and after a 9% real in the last couple of day. dow dupont, all the materials had three-year lows. down 16% all the building-related stocks down new lows in there home depot was straight down throughout the whole month and even energy stocks down 9% of course, the low price of oil hurt them. there were some winners on the dow. they were all defensive names, not suppressingly. underperformed and procter & gamble, boston, and all of these haddies in gains i do want to emphasize the big

turnaround that we saw here the last two days. caterpillar, goldman, merck, home depot, all turned around from really horrible months. the vix breaking down a tier to 20.21. we got as high as 28 two weeks ago. that's a very good sign that things are starting to calm down we'll see what november brings us tomorrow. guys, back to you. >> november tomorrow gosh crazy market day bob pisani, thank you very much. meantime, the nasdaq posting its first back-to-back gains also for the month let's head uptown in new york to the nasdaq bertha coombs looking at the big movers there bertha >> reporter: the nasdaq composite finished off its highs and it was the large caps that moved just out of correction here to close out the month when we had the big rally that we've seen here over the last couple of days. the tech strength coming from the faang names. they have moved things higher. amazon and netflix both closing

out the month tonight 20% for the money. nas das is fun 23% take a look at in okay, some of the ones that -- the big losers, getting killed because they offered some real equivocation on that i recall, particularly the chip patients, who talked about demand not being necessarily as strong and aliant technology, the -- the invisalign manleyer had been a huge inner this week and just got killed this month. back to you. >> noing us to talk about the market, and leading the dow today was visa wall mort was the biggest lag yard line. moulson coors was the biggest winner, and baxter was the

biggest decliner mike, how many times have you been saying you want to see follow through, i want follow through. we got it today. >> you saw follow through. you put it in the win doll um. the score at the end of the day was better than midday a lot in the s&p to make up on the s&p. 10% decline in the prior 30 days so i think it's a pin, you have pew games -- >> we were up 4:30 an hour ago so it wasn't like all. >> that is the way you'll quine -- i do think you put some breathing room in between the markets and the lows, and we'll have to see how november dawns. >> certainly a big and good rally today. not as big as it was, but, still, as everybody has been noting, a rough month overall

for most investors and we've got you covered through all of t.phil lebeau wrapping up the autos and dom chu looking hat the banks and diana olick here to recap the moves in the home builders. >> jackie deangelis on the energy sector and josh lipton on the big tech moves and meg tirrell has biotech's biggest monthly movers is. >> we haven't seen a day like this in the ault-makers for the first blame take a look at the cars and automakers and etfs that the downward trend. if you were to stretch that out over the last six months it would continue a bit of a pop over the last four days. what's driving the comeback for the auto stocks? a couple of things one, sales remain strong as the auto reports remain in and gm talks about that in a bit. we've seen strong demand continuing yeah, they are seeing higher costs in part because of the tariffs, also higher commodity

costs, but they are also passing those along in the form of higher prices that consumers are paying and as a result you've seen a number of the auto stocks beating the street general motors, the most noteworthy, beat the street by 62% today. this was driven by north america where they had profits jumping by 33% ford, we got their earnings report last week now ford's issues are now more forward sector when was the last time you saw it refunding around and finally there's tesla. posted much better than a lot expected and a profit which is why you've seen shares it of tet la approaching 240 a share >> now let's head over to hq and look at how the banks did this month. >> sully, sara, mike, a look at the bank frayed overall.

a relative outperformer compare to the rest market you take a look at the s&p 500 financials over the course of the month we're down better than 5%. better than the overall market and better than the communications services stocks we saw a little bit of an uptick over the last week or so on that particular shares. at least on a relative basis that's going to be something to watch. elsewhere if you dig into the charts a little bit more with regard to the relative strength and weakness in some of the bank individual stocks, we want to look at two of the standouts on the thank side of thing. just the banks

svb, silicon valley financial, pshl it's seen by some as a leading indicator for the venture capital stuff. that's one to watch with the weakness in technology also wanted to show you, a longer-term chart of the spooider and that ticker kbe over the course of the past three years, the it 200 day moving average and a bit of a pounce on the last walk of days. the last time we saw a move like this below its trading market, we'll see if that plays out in the coming month guys, back to you. >> good set of charts. diana olick with a check on how the home builders did during the month. >> despite strong, from the biggest buildings. the his shares and u.s. home construction heatiev including names like d.r. holton, home

depot and sherwin williams is off 11 percent for the month and 30% year-to-date the first drop in the year coincided with a pop in mortgage vats and then this month even a reaction to another bump in rates in sense they lowered its guidance siting softening demand and they are down 7% for the month. the builders do have a long run weigh ahead. the problem, of course, is price and weaker affordable. guys, back to you guys. >> plenty of concern about housing. thank you. let's get to jackie d'angelis at the commodities desk with energy's big monthly moves jackie. >> good afternoon, sara. an ugly month for oil prices which typically drive the action in oil stocks as well. wti falling about 10% in october. that's its worst month in two years and the s&p energy sector.

it also dropped a little bit more than 10%. no coincidence there the reasons that oil dropped concerns over global demand. supply concerns. they seemed a little bit overdone, and the dollar, it's been slowly creeping higher. that, of course, pressures oil prices let's take a look at some of the stocks the etfs first the xop and lih and oip, down 20%. big oil, conoco, exxon, chevron, month to date, single digits, hess saw an 18% drop in october. oil services, baker hughes, schlumberger, 15% to 20% lower on each of the stocks this month. the pipelines, however, lower, but by a little bit less some hope there that bailedouts wi -- that buildouts will continue guys >> now let's move from oil and energy to energy josh lipton here to wrap up a month to forget for most technology investors >> that's right, brian so a lot of green today but a tough month certainly as you

said for tech investors. even with today's gains. nasdaq got hit hurd, worst month since march and faang names taking it on the ship. facebook, higher earnings and a tough month for the social network and amazon also ugly, its worst month since 2008 netflix down 20% in october and alphabet down nearly 20% apple, actually outperforming its faang peers, the iphone-maker, of course, reports after the close tomorrow big test there for apple can certainly help set the tone for tech investors as we kick off november also the semis in focus. check out the smh, down some 12% in the month of october. one notable name there, amd dropping hard. down more than 40% still up nearly 80% so far in 2018 sara >> yeah. good perspective josh, thank you. finally meg tirrell has october's big biotech movers

>> it was a tough month for biotech as everything else the xbi which reflects more mid-sized names lost 17% among the hardest hit were synergy pharmaia which yielded no offers above its market value. clovis oncology sank after a research conference and those are all smaller stocks but the large-cap biocaps weren't immune alllousing more than 10% and many expect the fear around biotech to continue, at least until after mid terms, next week, because, of course, drug pricing is a very popular campaign issue sar-and-and brian, back for you. >> seen that in previous elections. mike, thank you very much. have to start with technology. that was the center and ground zero for the selling in the month of october. >> yes. >> where did it leave valuations >> today you actually got the biggest bounce there facebook got a little bit of

traction on reaction and lifted the whole group. i think it's indeterminate earnings have been i think fine in general and unless you were looking for tremendous new highs in performance you're okay with the numbers. to me it's about looking a little bit with squint eyes with a mean reversion bounce. bounced the hardest. doesn't seem like there was much more behind it. >> i think meg was on to something. biotech does not get a lot of attention. not considered a leader but the average return of a biotech stock is down 15%. 47 biotechs lost more than 20% this month. >> yeah. >> i know no one cares about biotech unless there's a hot new drug out, but, man, this was -- it was not a good month. >> pure sentiment and momentum for a lot of the smaller biotechs unless you're one of the huge ones that has long-established drugs so that's why i think in dunn drafts they do get hit that

much harder. >> charlie, are you buying or beware the tech bounce >> well, these tech names have gone from ridiculously overpriced to just outrageously overpriced still a long way to go before they look attractive so we've been thinking this was going to happen for a long time and it hasn't and now it finally is what i would just warn people is momentum is powerful in these names. they tend to go up because they have gone up and they can go down because they have gone down no, we absolutely would not be investing in any of those faang names. >> a lot still comes down to apple earnings which we've not gotten yet what are people saying about apple which has been actually an outperformer during some of the tech carnage in the month of october. >> that's absolutely right if you look at apple, it's down about 3% in october. that does outperform its faang brothers there i think tomorrow it will certainly be interesting big important trends for investors to watch out for

you'll see a lot of attention. one of the early demand signs for the new 10s and 10s max, services are business grows about 20% to more than 10 billion. again, mainland china, certainly a hot topic there. remember apple is a top five it's actually in fifth place when it comes to the smartphone market in mainland china on the last earnings call we know tim cook said listen, his approximate were not being affected by tariffs implemented by the trump administration. more questions like that on the call tomorrow for tim cook and company, guys. >> what are we watching, josh? what's the key tomorrow? this time tomorrow, all we're talking about is apple the world's biggest company, maybe the most important earnings in the world. what will we be focusing on, and don't say retina display >> oh, man that's where i was going, brian. i was going to lead with retina. >> the key metric tomorrow when

that print hits, they are going to make a bee-line for the december guidance, the guidance for the holiday quarter. you'll quickly look at that revenue. the street will see what that suggests about iphone units in the december quarter such a critical metric set the phone for how the high phone cycle can play out the next 12 months and that's the metric to watch. >> if you look at some of the pockets of weakness that we just laid out for you, charlie. home builders and automakers stand out because they have been weak, not just in the month of october. they have been weak for a longer period of time, and that's partially what stoked some of the fears about the broader economy. are you doing any buying in those sectors? >> yes i'm glad you called those two out. those stocks have been weak all year long. we've got a lot of home builder and home supply companies down 30%, 35% this year we're still thinking we're at start numbers that are low by historic levels. people are reporting softer numbers there. we just don't think at this

point when you're tearing down 300,000 homes a year that we're going to see a downturn from what we think are still depressed home start numbers, so we still think there's some great names in the home supply auto is not as bad as people think. still about 17 million cars being sold a year. names like borg warner are a great value. we've been buying those names. >> for some reason over 20 years, you and i have talked about banks. so i'm going to ask you about banks. the kbe regional bank index is down 8% this month how about to sarah's question? are you a buyer of the bank? just made a strong case for the consume are? >> no. i feel good about the banks. you and i have talked about them but there's different kinds of banks. the regional banks got too expensive at close to two times book goldman sachs and morgan stanley had very good octobers their earnings were excellent. the stocks got below book value.

goldman is earning close to 14% return on equity goldman and morgan stanley, great opportunity. regional banks still not that cheap. >> diana, you know, part of what started this whole fear that shook the entire market was fear of rising rates and we saw a big move up in treasury yields ten-year past 3% and that's in part hurt the home builders. how are they dealing with higher rates? what's happening with housing demand as we look ahead to the end of the year? >> housing demand is certainly weakening as we saw in the 30-year fix cross that emotional line but the builders were in trouble even before that at the start of the year. they are reacting to tariffs and the high cost of material and the labor shortage and all sorts of things that are keeping them from building the entry level homes that the market really needs. when you talk to the builders and say why aren't you getting in on that market where there's so few homes for sale, that entry buyer that is so in high demand, and they say we just can't make the margins on that we can't build these homes given the costs that we have, and so going forward, yes, there is a

long runway for these builders because we do need more housing supply but they are not able to build the kind of homes that the market essentially needs. >> as we look, mike, to november and try to figure out signals on the economy, on the stock market, whether there's a rebound and this was just a scare or something more ominous, which sectors should we watch? >> in terms of sectors, it's going to be the cyclical sectors, because that's what's been handicapping a strong acceleration. >> industrials >> yes, industrials in terms of the global growth picture. i would want to see how the market reacts to the jocks number on friday essentially what does the market wish for right here right now? >> by the way, we do have a little election thing coming up. politics is maybe for other people to do charlie, if you go through -- i know we talk about faang all the time i went through some of the stats. listen to this we talked about it 48 biotech stocks fell more than 20%, four lost more than half their value. every single oil and gas company

but cabot oil and gas dropped and the average drop on the big-gap, occidental, hess, whatever, was 13%. we can end on a high note, but it was a bad month. >> no. very, very bad month for the cyclicals. i agree with mike on that. that's what we've got to look to is how are those names going to perform? we feel they can make a lot of money and they can make good money at prices where they are there's still money to be made, but there's supply issues in texas, a lot of issues else getting the oil to market, but longer term we think the companies with well-positioned. >> thanks, charlie thanks to our full team of reporters. that was a blockbuster look at the month of october 20 years, that is how long it's been since cbs had an earnings call without les moonves as ceo up next, a preview what have to

expect tomorrow. >> thanks for having me. >> and the moves being made to replace moonves in the "c" suite. >> and more on the china factor and the trade factor there is impacting your money, and speaking of you, we love you, and we want to hear from you reach out to us on the twitter, facebook, or you can send us an e-mail or letter today but we won't get it today "closing bell" is back after the break. hey, what are you guys doing here? we've been helping you prepare and invest for retirement since day one. why would we leave now?

because i'm retired now. so? we're voya. we stay with you to and through retirement... with solutions to help provide income throughout. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that, uh, tie. or the suit. or the shirt. voya. helping you to and through retirement. big corporations are making and just got a huge tax break. but the middle class is struggling. prop c is a common-sense plan. the top 1% of businesses pay their fair share

to tackle homelessness for all of us. companies with revenue greater than $50 million pay, not small businesses or homeowners. the prop c plan is supported by the democratic party, nancy pelosi & dianne feinstein vote "yes" on c. big corporations pay for it, not you. i am a techie dad.n. 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.

welcome back always a challenge to cover breaking news. numbers crossing out of no stuff. harder so when you cross two names that have absolutely nothing to do with each other. fitbit and aig go together, seema mody, but i have no idea how. >> let's start with shares of fitbit because they are on the move higher. five-sent beat on its bottom line and posted a rise in third quarter revenue, $390 million versus the estimate of $381. it exceeded by growing its health care business by 26% and

diversifying its product and they sold 3.5 wearable divisions and average selling price incleeses year over year to $108 per quarter, and you're looking at shares up 11% now, let's switch to the insurance giant aig posting a surprising loss of 34 cents per share versus the estimate of six cents. way down -- weighed down by catastrophe losses related to the foods in japan and hurricane warnings and mud slides in california so certainly a tough quarter for aig. the stock is still down fractionally here in after hours trade. back to you guys. >> seema, thank you. just looking at a nice pop for fitbit, burks boy, is that an ugly chart going back to its ipo. >> it's been tough still very heavily shorted stock, a little more than a billion dollar market cap and

the holiday quarter is still make or break for the company for the year at least category is still growing >> almost a $50 stock. >> durables were supposed to be everything. >> fitbit -- this will be the first report since former ceo les moonves stepped down from cbs. what should investors be looking at >> dan, listen, it's going to be a little bit different you known the know where the management is. what is the key number or numbers to watch >> well, i think that are you have to look at the advertising numbers and you want to see continuity and stability, and the other keep is recall he can accelerate club growth joe has been at company for a long time, dealing with

investors for a long time and analysts for a long time it's not that much of a departure from the status quo to be honest. >> you don't expect a major change in the format of the call for investors that have gotten used to the way that it's handled? you think the actual struck tour of the call will be relatively similar to the way that it had been >> yeah, i don't see any reason for them to change things up in fact, i don't see a reason to change up the operator strategy. joe has been involved in the high-level decision if we could get -- and i think if we could get beyond that we'd have -- what's been happening behind the scenes and what kinds of moods and whether lids do we have -- >> obviously dick parsons jepd down as recently

had a lot of moving misses behind the scenes, earl -- overall it feelings like the underlying corporate bench is relatively intact. so, you know, yes, an update on whether or not joe will be the permanent ceo would be welcome i think. uncertainty is certainly really hurting the stock at this point and some stability and some certainty and clarity i think would really go a long way towards having people refocus on what's going on with the company fundamentals. >> dan, you say the strategy is working. get a little more specific about it obviously the retransmission feeds. >> is that gaining enough momentum to where it's going longer term does -- it would certainly make sense for them

to -- they are sitting be okay on the unmonetized congressional content in history and had a lot mate around. trends and some companies reporting up over 70% over 2014 levels like e.r. scripps, the fundamentals are absolutely moving in the right direction. starting to get market acreation over time but question is can they maintain the top-p flight growth >> $390 is that where you still are. that wes -- that was a stock

that was already best in trade trading at 19 times ebitda with most networks outside of the guys losing subs trading double digits plus. >> got it. >> so if you want to quibble with me at 90 versus 70, doesn't matter but if you're at&t why don't you come in understanding that the -- make a contract and get began, had a good day. >> could be a by the better because the dour -- we were up 450 points when the 3:00 eastern time and the market was the big one. small caps living to its name was the smallest.

>> time now for a cnbc news update with contessa brewer. right now thousands of central american my grants in a caravan that's already advanced 250 miles in mexico are pausing to rest. some considering going home. locals have been providing them with some assistance a group of women handing out meals. >> a u.s. pledge not to withdraw its forces from career was entered into former vice president joe biden campaigns for democrats across the country. biden blasted the testimony's program after shore lots and new yorkers are remembering a terror attack a year ago when a man drove a truck into runners on a bike path in new york city

many families of the victims have not been forgotten that's your cnbc news update now back to you. sara, bruin. >> contevita, thank you. stocks rallying for a second day in a row after a very volatile month mike santoli over at the telestrator. what have you got? >> a little check on sent in the. this is a weekly survey of investment advisers and newspaper writers, been going on a very long time this higher. when this line is high it means you have a lot more and people are mo cautious. here's the latest. >> right is here is bewere were -- that means you're building a market and. obviously it does sort of track

generally acongress will wrong with the markets and what it suggests it's not has if everybody is super bearish and this pullback has definitely kind of created a wall of worry that can be construct federal we're going to build some kind of a base but also, you know, for good context here, this was the low in terms of bearishness at the end of 2015, early 2016 that was a more comprehensive downoperate and a re -- this is a good well up of vashs. >> i'm-ins -- on days that felt stomach-churning on the moves back and forth and the bearishness is not that well pronounced >> what you're looking is the amount of time you went from august to brady in

a cut. the fundamentals haven't changed enough for people to throw in the towel. >> it's also big gigantic heavy important it canp. >> speaking of -- mike, thank you. speaking of big chevy chicago. earnings from apple. it is not only the last week is. sports it's the biggest as well the only with in the world wh it a $1 million market or manufacturemore. a full preview for you com for your heart... your joints... or your digestion... so why wouldn't you take something next prevagen has been shown in clinical trials to improve short-term memory.

prevagen. healthier brain. better life.

♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business. the ibm cloud. a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief... or a cause for celebration. ♪ what's inside? ♪ [laughter] possibilities. what we deliver by delivering. anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way

to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. tomorrow is the first day of november that often happens after october, and a day of hope for turbulent markets and they are vows investors apple reports earnings after the bell despite the recent technology pullback, apple shares still up mohan re t23% so far mohan re t23% so far we'll give you a fullry view of for retirement and life insurance solutions to help them reach their goals. apple. that's the power of pacific. ask a financial advisor about pacific life.

i am an independent financial advisor. for our firm, it's about trust and transparency. transparency in the way we're compensated. our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

today's gains aside, to not lose sight of the fact that china and trade are still hanging over the market. some individual companies as well seema mody has a look at the various ways that china is feeling the tariff pain. >> phil lebeau is digging into the china auto sales slowdown effect on general motors earnings, and josh lipton joining us with a pre-view of important pop company could be with the results that tom come out starred? the clowedown in the wrg --

tariffs are dampening demand for chinese goods. weak data has pressured the chinese currency which is now trading at a fresh ten-year low against the dollar growing concerns over china's economy has also sent stocks lower. for the month of october the shanghai composite lost another 8% similar losses in it japan and south korea as a series of economic reports and those countries also point to a dellration now, hits to earnings from alibaba. looking for any kinds that the consumer in april is looking forward and ending and all eyes on the meeting with president x jinping. any progress on trade could potentially be market-moving guys >> i'ma, tha -- seema, thank yor

much. >> shares are scoring a on stronger than expected earnings and a look at how this gm hate just under a hifl i don't know in china over the quarter and expects to make a couple of win to that includes the month of september when sales were down 15%. not just general motors but all automakers the question is future demand going to be under pressure, and that's the reason you saw the reports yesterday and two days ago when it started to give a bit of a boost to auto stocks about whether or not china might say, hey, let's cut the sales tax that people pay in the country, from 10% to 5% and that in theory would bring people back more in the showroom. shares of general motors, one half night to keep in mind

regarding gm and china, on the earnings call the ceo mary barra was asked whether or not they might change its joint venture agreement with saic, a 50/50 agreement as are also all the ajoint ventures in china there's talk others might be getting more of an equity stake. no plans to change that this agreement and very happy. >> guys, back to you could have have a rouge. it's business in mainland china. they account for 15% of the company's critical revenue and critical to the company's supply chain, where most iphones are assembled. tomorrow investors will want to know what initial demand looks like for the iannone x and x-s

especially the macs. apple is in fifth place in the esphonoand some worry about them being -- apple does sell a very popular prock there on apple's last conference i think it will be brian, back to you. >> we certainly whether. i think this >> apple's earnings are the most anticipated out there and out tomorrow what exactly do you need to pay attention to in that release joining us now is tom ford from d.a. davidson and a member from kroul financial. what are the numbers that you're looking for?

>> absolutely the reason for them saving them last quarter was buffet's buyp and key number in the earnings report was the price per phone. that took everybody by surprise. we don't think that that's a sustainable metric at all. we think people who have wanted the $1,000 phone went out and bought it, and i think that's what investors cue in on and could be very disappointing here for apple. >> tom, to josh's point about china, we're not expecting it to have a big impact in terms of the tariffs on the quarter, but one of the reports that shook stocks this week came from bloomberg that said that president trump was ready to go all in on inches impact. if the meeting doing food risk to -- you have two risks one, the christian that you're

talking with was the next group coming out of china and number two, give or take 20% of apple revenues, come from chinese consumers. but specific to the september quarter i do think strong asp growth from the "x"-s and "x"-s max will enable them to have a very strong quarter >> perhaps follow up, despite the nice run that apple is having and have been disabled, are investors a little bit complacent going in here seems hike they are comfortable with the overall story the idea that services is growing. not to say that any of that is going wrong and how are investors set unfor this report? >> so acnoning that china is a very big risk for apple, i think the shares are set up beautifully. what you're seeing is apple is making refinements 1 to its major product line, smartphones, and then we attended the event

yesterday in brooklyn, and you're seeing this with the tablets as well, with the face i.d., maximizing the display size on the device we think the consumers are warmly reacting to that, and independent of china i think apple is amazingly set up for continued strong performance. >> we'll leave it there. apple popping 2.6% still ahead, a big day for the market we'll recap the final day of the month, plus take a look at names are moving here after hours. >> and a quick programming note. "squawk box's" own daniel ross sorkin wilbe jl oining us. don't miss it. don't miss it. that's tomorrow.up the country. love mom and dad' i'm takin' a nap. dude, you just woke up! ♪ we're back after this.

geico motorcycle, great rates for great rides. whooo! want to take your next vacation to new heights? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new york! from bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so you can make your next trip... monumental! read reviews check hotel prices book things to do tripadvisor

listen up, environmentally conscious americans. you could be recycling wrong processor. our jane wells has the story jane. >> sarah, somebody put a coffee make ner the recycling bin no there used to be treasure in the trash. but right now it just garbage. the recyclingbusiness model it broken whathat an tmes as an investor whathat an tmes as an investor and a consumer, when w (indistinguishable muttering) whathat an tmes as an investor and a consumer, when w that was awful.

why are you so good at this? e comehad a coach in high schoo. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches back just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

it is clear, jane wells told you, the current recycling model needs to be trashed. she is in anaheim, california with more on why >> reporter: brian, you know, that's according to the ceo of republic services. this is one of their recycling centers. they make plenty of money on the regular trashside. but like the whole industry recycle something garbage right now. here is the deal for a long time trash companies collected it at not profit because they could sell it at a huge profit to china but the profits have stopped it's not accepting in stuff unless it's really, really clean we put more unclean stuff in it like greasy pizza boxes. >> contamination levels are as much as 30%. so we are sending a separate truck to your home to collect what should be clean recyclables and having to spend a lot of

additional time, effort and money frankly cost in cleaning that material up >> all right now he says he used to be getting about $200 a ton it's now half that well, until those prices come back he is warning to keep the model afloat, guys, collection rates may have to go up. back to you. >> i always wondered about recycling. i always wondered, jane, about recycling and whether everything we recycle in new york city gets recycled. >> no. you know what he is saying sarah as you look at this. -- these people work their butts off. 30% of what comes through here ends up in the landfill any how if you put the jar of peanut butter in a plastic bag of recyclables you contaminate the whole thing. and it's too much cost to clean and there is not enough market >> what's the weirdest you have

seen today, jane keep it clean. >> believe me i asked if they've seen body parts they reluctantly told me. i saw a carburetor and a tire. somebody had a tire. it's rubber, recyclable. not in the recycle bin put in clean card board, plastic battles not bags they muck up the machines. bottles. >> good tips for all of us jane with the amazing live shot as usual jane wells i think she was kidding. >> i hope she was. >> a rally on wall street to finishut o the month finishut o the month you've gothewith edge-to-edge ie near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer.r next it can do so much for your business, the list goes on and on. that's the power of &.

& if your customer also forgets socks! & you could send him a coupon for that item. is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd, the investment managers at pgim take a long term view. uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc. the global investment management businesses of so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. you're in the business of helping people. we're in the business of helping you. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds.

the powerful backing of american express. don't do business without it. air velocity is reading at fifteen fpm. why would you need to learn every detail about a company? firmness... nine. it's how ibm services helps retailers around the world drive growth and save millions. he's very into this. yeah. is that the standard amount? yes. feels good. when your partners are obsessed with business and technology, you can put smart to work.

let's check some of the headlines making news and moving stacks after hours shares of fitbit an unexpected profit for the third quarter up 10%. >> keeping an eye on big names reporting earning apple, cbs, starbucks and more due out after the bell. >> final deep thought as we wait for tomorrow and check for more follow through. >> the late fade we had in the market not greatest. everyone say bottoming a process this is part of the process see it's reel real. >> what do you mean by that we

were 450 an hour totting. >> you ended up 1% you gave up 1%. >> apple earnings, job report on friday. >> yeah. >> mid-terms. >> that stock held up. it's not a bellwether for other companies but it's a sentiment indicato >> that does it for us on cloebls. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlook sometimes acquire the trader are pete najarian karen finerman abdan and tim seymour. julian emmanuel says a rally is coming you will not believe now high he thinks it goes we start there with the epic rally to end october adding to yesterday's huge move. the dow and s&p having the best two day gains since february it was an october surprise on wall street as stocks got crushed and it looked like the selling would never stop but the