is it 200 points the nasdaq including apple is down marginally. thank you for watching power lunch. >> closing bell starts right now. i get to say it? >> you do. time for the closing bell. good to be back. a chap pi day today trade tensions with china today as jack speaks out. >> trade war is the in the war >> we'll look at the cost of tariffs on american companies. >> apple shares dragging the entire tech sector lower today

we'll debate that coming up. details on amazon's new plans to win the holiday season. fresh clues about the company's choice the closing bell starts right now. let's check in on markets. sessions up 0.8% >> look at the nasdaq. it has been red all day long off the lows for the day tech sector remained weak thanks in part to apple it is down a third of one%. our reporters are watching the

biggest stories right now. bob is on the floor of the new york stock exchange. we are look at the impact of iran sanctions we have the latest on the trade war withchina. >> first ibm is a very strange day. they are up 4 and apple is down 3. when was the last time you saw that happen in i can assure you it has ban long time i want to show you apple versus ibm. it has been a complete die v divergence it is up about 18% wouldn't that be something

this is a price weighted index boeing is up $4 here some of the industrials on some kind of deal on china. nothing in particular there. finally an energy complex, up 8% all of the energy complexes but particularly anything that is related to natural gas you southwestern, southern company, all of these companies are moving to the upside right now. speaking of energy let's get an update on the iran sanctions, jackie >> thanks so much. economic sanctions went into effect at midnight last night. the reaction was muted in the oil market today while the deadline made it feel like some light switch was going to go off the market has known about the sanctions for months it got nervous pushing oil up and then it backed off

the reason for the drop is when the market realized that all four barrels of oil wouldn't disappear off the market waivers are being granted that depend depend on the oil. the top three importers of their oil, china, india, south korea despite they wanted to pressure iran but doesn't want to hurt allies mike pompeo had this to say today. >> the regime has a choice it can do 180 degree turn and act like a normal country or it can see the economy crumble. we hope a new agreement with iran is possible until iran makes changes in the 12 ways that i listed in may we will be relentless in exerting pressure on the regime >> the president expects that the sanctions will have a

gradual effect i'll send it over to washington with the latest on china and trade. >> thanks. between the u.s. and china the frosty relationship appearing to thaw. addressing a major investment conference pledging to import roughly 30 trillion in goods over the next 15 years it comes after president trump spoke over the phone last week he said that china wants a deal and that they will sit down over dinner at the g20 to talk it all out. hanging over that meeting though is the threat of even more tariffs. we got exclusive data from industry groups that show the cost of president trump's tariffs $1.4 billion in september alone. businesses are paying about 50% more in duties than they did last year. china is striking back with tariffs of its own products got hit and went down by about 26% in september.

so though the tough talk has moderated lately the big question is whether this tone will change after tomorrow's elections. we'll send it over to you. >> let's talk about how the markets will handicap what will happen in the elections. as things currently stand we do have a consensus building right now that is the democrats that will take control of the house of representatives while the gop, the republicans do keep control of the senate. you'll see that as the likely scenario there is aless likely scenario that the republicans actually control both the house and senate we'll call that kind of like maybe it will happen the least likely outcome will be a democratic control of the house and senate so that's not likely to happen where we will see interesting reactions is in the marketplace. how do stocks fair in this kind of environment the folks looked going all the way back to 1950 at the s & p 500

it turns out if you're looking for reasons to be bullish check out what happens when there is a gop president and a split or divided congress that's here. we actually get average gains of around 16% of the s & p 500. a republican president with a democratic controlled congress gets around 9% the gop controlled congress with gop president is around 11%. if you're wondering what the best scenario is, guys, i will tell you this, it has been over the years and this is on average, a democratic president with a gop controlled congress believe it or not this is around 18%! thanks very much for that. also a good sign if you go back to around 1950 it is -- >> yeah. across the board joining our closing bell exchange today to talk about all

of the stories and the impact of money and investments steven cnbc a very good afternoon to you all. i'll start with you. on the topic dawn was just suggesting you have been looking into this do you think your clients are super concerned about it >> i think they are concerned about it i think they are concerned it would put ahe head wind in markt the stock market is telling you it doesn't matter if the house of represent atives is retaken y the presidents >> because that's already factored in you're saying? >> again, if the stock market is a forward looking mechanism it is supposed to discount future events it is telling you it doesn't matter if the democrats retake the house of representatives >> or it's telling you that right now the market is focused more on trade.

he is seeing softer headlines coming out of trade for the last couple of sessions we have seen apple now it is seen where bob pointed out it is outperforming am let's see where it finishes us off. i think i wants to move higher >> i think the big question is what happens to the -- do you have a sense no matter what the outcome is what happens to bond? it has been a sensitivity point lately >> i think you bring up a good point. i do believe unlike that it would move equities a bit more they are not crystal balls the way they forward priced in november of 2016 before and after the results were out i think really underscores that. i do think that the fixed income market is a bit isolated from the direct volatility of the midterms, not that the grand

scheme of things, how you believe it may be better for business, won't effect the bond market but i think the effects it has on equities will be taken into consideration i don't see a knee jerk reaction in the bond market you're absolutely correct. it has been real consistent all year it moves higher and it sticks. it has been very orderly today for example the ranges weren't large but the long end might have given up a basis

it doesn't mean individual tech stocks can't do well they are likely to do better especially if we continue to see signs of solid growth and the election doesn't disrupt those expectations too much which i don't think it will do >> what if democrats get more power than expected? zbli think you want to buy tech, energy and financials no matter what happens in the midterm elections. >> why doesn't he lose either way? both parties beat up on them >> i think some of them had been sold off enough financials

should be doing better than they currently are. >> in general whether it is midterms or other tafactors. >> you have had funds that underperformed it gives people the conviction to get people back in and wash out the weaker players >> i would be a seller first quarter of next year but i would be a buyer >> and one of the reasons is because a lot of people are watching the banks into tomorrow they say that if the republicans keep more control than expected it is good that the president has been making. if democrats debt more control it could be rolled back.

>> the senate is not going to change but the headlines will be fast and furious coming out. it is enough to go out >> i think it's overplayed you say the senate is likely to remain public. he has made quite a few crucial appointments the guidance will come from the people that have been appointed in the last couple of years. we have got some from the smaller banks. it will be a win if we get it for the big banks. we are not seeing ongoing incount incountry -- >> there is a little chance they can keep the house and the senate there are 20 races in the house that are within the margin of era. >> where would you want to be if that happened? >> you will not roll back any standards. i would think you want to be

financials they have not reacted that well. i think tech or industrials, that's the wild cards. >> okay. we will leave it all there thank you very much. still to come on the closing bell we'll have much more on how it could effect your money and how the pot industries have so much riding on tomorrow's results. plus share of apple getting hit pretty hard far second straight session we'll debate whether investors should be concerned or buy the pull back. the closing bell will be right back [ phone rings ] what?!

ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. apple lower again today after weak demand for new iphone xr they have told them to halt product to the relatively cost effective model. joining us now is analyst from maxum group. he lowered the price target to

212 to 221 a share also steve, welcome. we haven't had you on the show what do we make of these reports. there are supports told of low demand usually they are wrong >> yeah. this one is based on one source. there cab ln be a lot of factorn here it could mean they are getting indications the xs is more popular than the xr is going to be i think jim cramer said that it didn't smell right to him basically. >> the timing of this report couldn't be worse for apple's stock price. as well as the report going forward many analysts thinking they are trying to hide the decline in volumes going forward. what do you think of that? do you think it has sold off so much in the last couple of days?

>> first of all the key thing that we need to know is investors is how is that install base growing or is it kbrgrowint all? getting that gives you a view into whether or not it will happen or not. now we don't know whether or not it will happen or not. what we did get on the last earnings call is that the overall device is growing double digits we think that the iphone is growing low singledigits you're not going to be laying off workers unless you're going to have your declines. that is a perspective until hey, look, iphone units are likely

going to be declining year over year in a pretty significant way. what does it mean for an install base we don't quite know. it will probably be growing most single digits. >> if the whole premise that you're saying is that they are not going to give us yunlt growth and it must be slowing and it's not doing well and that's what's happening haven't they proved that that happened it barely grew with iphones but as long as average selling prices go up they can come up with new flashy gadgets they can do that. >> how long can you keep on increasing prices? >> it is not about increasing prices they are building services around it part of the story they are trying to tell on top of saying we made this much money off of each iphone they are saying we are packing in more. they are learning the new subscription that's coming this year they are dumping a billion

dollars of original programming. all of this will be a way to drive more revenue >> it is also i guess with a change of an attempt to try to continue that narrative they have been pushing for a long time how close are they to believing it >> we could find out when they report for this quarter is the margins. maybe we are getting less data on unit sales but more on how much the margins are >> you know what the services argument >> services now i think somewhere around 20% of revenue. it is a pretty small percent it has been growing and we have been hearing a faf narrative it must be or they wouldn't be saying that story. it hasn't been going up. on the other point you're saying it is bundling and trying to drive up our food. it has been to drive up and

higher price average speeds. >> yes >> the next you'll bundle in more services. it is not sheer if it will be bundled in directly intophone. >> if you're units are declining but it is constant you're getting more revenue per user. it is flattish you're annuity base is declining. that's the risk. i don't think that's happened but that is a risk >> quickly, you downgraded your price target and the rates you need to hold still above the current price. >> it is modally above the current price. that is a hold rating.

>> okay. >> and that's blue phone >> there is a blue phone this is a 10r. >> this packs it into a cheaper factor it has cool colors on it >> i never put a case on it. >> clear cases now >> so your colorshows. the dow is going strong despite the apple dow. you have strength in names like ibm, shchevron all going strong

nasdaq remains down. he bought for stock than he has in four years. we'll discuss whether you should be following warren buffet's lead a move to attract more customers for the holidays we'll discuss whether amazon icanm e al christmas froth brk d mortar. we'll be back here on closing bell in a couple of minutes. alpha seems more elusive today. is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd, the investment managers at pgim take a long term view. uncovering opportunities for alpha

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russell 2000 it is the session highs. >> we have better than the morning and we haven't seen that kind of diverse jens sit clearly up for the dow and the s and p. >> let's check in on some individual market movers up first the market movers upgraded the stock to overweight the firm saying under armour is depreciated and maintains that view despite the recent jump after reporting earnings last

week think it eludes to this is in the margins now that they are focused on the margins we have a lot of room to grow to catch up to competitors like nike and adidas they really take the polls to the consumer they do all sorts of surveys they note both for male and female surveys they have done better than they have in recent months and years >> chevron was second now. ibm has surpassed it an upgrade they said it is compelling and the oil giant continued to execute on its already superior

growth outlook it is up today it is in fact year to date down 5% which talks about evaluation attractions that they say is trading at 0.8 the 500 average pe and five year average for chevron is 1.1 times the average. it sits evaluation call on this. it is as it was before it is up 3.5%. >> energy has moved lower after being higher off the sanctions time for a news update with sue. >> good to see you again italian search and rescue teams still dealing with severe weather a week after 30 people died they promised $284 million will be handed out to the areas effected by those storms

french president macron has become a yearlong tour marking the 100 anniversary of the end of the war he laid a wreath at the memorial estimated 5,000 french soldiers killed at the battle in 1914 the u.s. navy releasing video of what it called an unsafe intercept of a jet by a russian fighter jet. it occurred in international space oversea. they say the u.s. aircraft was operating in accordance with international law and did not provoke this russian activity. >> the last time he knocked out mma fighter mcgregor in the tenth rountd that's the update. i'll send it downtown to you >> thanks for that

i can't believe he is 20 years old and facing mayweather. unbelievable these guys can make. >> and it will be highly followed it is -- it is a big money sport. >> mayweather is the best. >> yeah. >> okay. thanks very much now, banks and buffet are driving the market higher today. robert frank breaks down buffet's big buy back. >> just off the highs. everybody is waiting for the elections. there are a lot of issues that are moving the market. had an excellent day a strong natural gas figure. november may be a little colder. chevron gets 15 to 20% and it had a big move 107 like a week and a half ago today it is 119. you have had a 10 sent move.

biggest one today. the other want i want to point out is ibm last week it was 115 now it's 120. maybe finally we are finding some kind of bottom here we do not have historic highs in the market today mcdonald's 180 today it hit 180 that's a historic high for that. 167 a short bliwhile ago. primarily in the consumer section. coca-cola historic high. we have clorox and the consumer group also 52 week highs not a bad day considering that we have the elections tomorrow and a lot of uncertainty a lot of uncertainty today we are standing by >> thanks. it used to be an uphill climb. the weakness coming from large

cap tech those sectors today once again under water lead by apple. apple and amazon, both of them down here two days in a row. act vision is one of the biggest decliners in the large cap tech names. it is this new game not getting very much respect on that one but the mid-cast today, they are the leaders of a fairly flat market and names like sienna is actually one of the big gainers. that has a new high today. finally bio tech and health care overall also attracting that there. let's move onto what warren buffet is buying >> when he looked around for companies to buy there was one

that caught his eye, his own 928 million of its own stock during its quarter it is the first time since 2012. the cash pile is now over $100 billion it spent 12.6 billion in total stock purchases. the 900 million is actually small. when done at the right price they can for berkshire it used to be when the stock was below 120% in july they changed it to be below what they believed to be berkshire's intrensic.

the effects of the tax kuts and repatriation begin to fade back to you. >> thanks very much for that what does the latest moves signal to investors? david joins us to discuss this let's start with you do you think it suggests he thinks the market in general is cheap so much that it's not worth buying individual stocks >> i think that when you look at his largest holding he has a barbell approach here. on one end he has apple which is one of his larger positions. the other he has financials which have been laggards for longest time buying back stock i think is good because they only brought back really a little bitof

stock he is in a period where he is doingerer search. i'm willing to bet within the next quarter to two he will buy a 25 to $50 billion company. >> everybody reads into this trying to figure out what it means. is it that buffet thinks that his stock in the market is inexpensive and he should be buying or is it more negative and there's no better use of cash for him >> i don't think it means either of those things. i don't mean to be critical of mr. buffet but this is some what hard for the course, do as i

say, not as i do there are standards around stock buy backs seems to change when you want them to if you can fluctuate when you buy back what's the point of having any rule at all the fact of the matter is he did buy a bunch of companies he bought a billion dollars of his joown stock that owns all of these inentities if those were considered to be overpriced why buy companies of your own share that holds them i believe it was 18 billion of net income so a billion in stock buy backs is insignificant i don't think an investor can read into that it is hardly the first time mr. buffet is doing something he advices others to do >> you talked about some of the positions at the moment including the financials, bank

of america and wells fargo the position is so large it doesn't give him much flexibility to exit even if he wanted to. >> to some extent it is an index fu fund 20 year ago it was more of a hedge fund that looked for opportunities. it doesn't mean that warren buffet can't look for opportunities. the problem is he is handcuffed by some underperforming positions. the way that he thinks it made a lot of sense by those financials when he did. now it doesn't make sense to hold those financials. if he begins to sell those the

rest of wall street will know and they will be, you know, a flood to get out of those. i think he needs to hold them and accept the dividends they pay and then use whatever cash he has to look for other opportunities. i like to see him enter into some fields that he isn't in let's get away from financials and let's get away from some of the food stocks that he really likes. let's get into some of the areas they are really growing. >> maybe he is listening to you. >> i know you don't make much of the move in a bigger way to buy back the stock but what about the impact on .5%. >> we are not holders of berkshire.

but no i wouldn't. there is a lot of reasons relate today berkshire as far as what exactly their business model is. i will do it earlier as far as the weapons of mass destruction than most hedge funds. i don't necessarily care for that particular inconsistency and how it relates to investors. i will say that i think the stock is is up because they had a remarkable quarter you add on a billion dollars in stock that doesn't hurt. it isn't driving it though fundamentally there is an awful. these guys are highly levered. that's it. he takes other peoples fear and

buys america with it he has done it for over 50 years successfully this quarter is just proof in the pudding. >> that's a point. it is up more than 8%. thank you both for weighing in we have got 20 minutes, 19 minutes now before the close nasdaq in the opposite direction is down coming up to talk about the u.s. trade relationship with china. we'll bring you full comments coming up.

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nasdaq down half a percent s&p real estate and energy in the charge

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rjs giving thoughts on increasing trade tensions. here is his take on today's frostbite. >> we have to make sure we are not awarded by those things. trade is to communicate. nobody can stop the free trade

>> china is hosting the expo at the moment to bring together foreign companies as a way for the country to highlight its importing potential it is give tennessee fact that he has benefitted from the fact that china was never opened to the big u.s. technology companies. it is as if amazon would have gone in there earlier. so he has been fitted

significantly. >> that is a good point though he has also been a point as the buyer. he also hosts all sorts of companies like knnike and they have been trying to bring in brands >> he has been trying to get small business in the united states he met with president trump. >> right >> right when he got elected to sort of champion u.s. jobs and bringing more cohesion >> it is the most stupid thing in the world i think it's worth pointing out the side >> right from the domestic market in china. >> he also has felt it in terms of pain in the stock price he is down 20% over the last year ten minutes to go before the closing bell i'll show you how the major

averages are doing at this hour. dow is off of session highs. it is still up 181 points. apple's weakness is being felt today. nasdaq is down about half a percent. s and p up about half a percent. it is offset by strength in groups up next we'll preview the big earnings set to be released after the bell >> shares have been crushed over the last month we'll look at why those stocks could be in for more pain regardless of the outcome of moow midterms. don't go any where closing bell back in a couple of minutes. our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story.

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including china's trip and $200 million for marriott the focus lab bit mo -- will be a little bit on the macro. >> in the third quarter report look for 8 cents on $61.1 million respectively and tariff impact in 2019 is the big question for the street.

they increased to 25% investors want to know if they are listening to marathon partners that group is urging to sell itself or refocus on core operations >> great stuff we look forward to those numbers. coming une wllp xte' have the closing count down for you don't go any where kevin, meet your father.

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welcome back to the closing bell let start. it has ban much better afternoon than it has been a morning in fact the last 15 minutes we are getting that close to the highs again. we are up about 0.6% or so let's look at all four it is not the same story when you factor in the nasdaq which is weighing down 0.4%. if you dive into these you can see the differentiation. apple is down sharply. this is moving up 8% november will be colder. apple on the iphone sales.

i want to know we have great new highs. historic highs on clorox today >> there goes the bell dow is up 190 points or so ringing the bell at the big board here the nasdaq, that does it for the first hour of the closing bell back to you. >> welcome everyone to the closing bell mike is here with senior markets commentator. dow closing up almost 200 points s and p closing up about half a percentage points.

so nasdaq couldn't get there down .40%. it wasn't just apple it was big tech stock communication services as well dragging down the overall market ending the day flat. politics and profits we are a day away. under what president trump has looks like for investors why bio tech investors are anxious about results and we have earnings after the bell we'll have results from elf beauty as for the market though let's start actually with today's

action a little bitof pickup. i do think we didn't get back friday's loss in the s & p 500 it was very tentive. i think we are still in this process of figuring out what the right level is and whether it was more than a bounce last week it seemed like low volume settling down kind of picking up and selling the winners. >> that's the headlines.

let's dive into some of the individual stories we have what the trump economy has meant for investors so far >> well, trump is enjoying one of the strongest economies of any first term president in about a generation what really jumps out here is job growth take a look. about 4.3 million jobs have been created under president trump. that compares to about 4 million that were lost during the first two years of president obama's term now more jobs were created under president clinton, roughly 6 million. the unemployment rate at that time was nowhere near this low growth, that's also working in the president's favor. he promtsed a 3% growth rate or higher third quarter came in at 3.5 all of that growth comes at a cost take a look at the deficit it has jumped 17% under president trump's watch. now it is $779 billion and expected to hit a trillion next year then there's wage growth

the jury is still out here it has been slowly ticking up. it is now at 3.1%. the question is will it last most people experience the economy through their paychecks. that number will be important for undecided voters back to you guys >> thanks for that bio tech has been slammed over the last month meg joins us with why investors are nervous. >> you only have to get a sense of the volatility here if we look which tracks large healthcare names the thought i thaw it would be less aggressive than anotherone.

if not in the form then as they put it by holding quote many many hearings. that's not good. back to you. >> they don't like that, many if many hearings. joining us is john what sectors will you be watching going into the med terms as we get these results? >> to me the big issue will be financials one of the issues behind the trump administration is deregulation if you see a sweeply the democrats will will come under pressure by the banks. >> i don't know if i agree with that i think the regulators are largely appointed now unless we are talking about both houses and some sweeping second version

i don't think we expect more regulation perhaps you get less >> i think banks are attractive. i think they are really interesting. i think a nooeb knee jerk reaction ton result of the democrats winning. >> whether it makes sense or not. there are other sectors here i think industrials could be interesting. it has been friendly when it comes to getting other countries to buy our defense and heavy equipment. >> i think in a different way they have been captive to the trade tussle >> true. >> once they are clear the administration will look for a path to have some kind of resolution with china. it is probably helpful i think in general export friendly and regulations by the way help there too >> we want to continue this conversation and talk about what it means for the bonds and dollar and let get to earnings

we have those results. >> thanks. sharing booking holdings moving higher. earnings missed estimates. but revenue exceeded wall street expectations at $4.85 billion versus the estimate of 4.8 billion total bookings of 24.3 billion it is an increase of 12% year over year. approximately 14% on a constant currency basis that number also came in higher than analysts wereexpecting.

>> the after it gets book where it was in august the group has been under some kind of pressure there is a lot of sensitivity about whether the travel cycle is maybe wearing a bit then. >> it is based on future expectations the stock is up big because they guide it up for the next quarter. >> let's go back to midterms you mentioned them as being in the eye of the storm wall street kind of had its day of being in the political cross hairs. that's ease regardless of the midterms it is very much in the cross hairs whatever the result is the big tech companies >> it would have been up higher

had they not thrown cold water talking about anti trustissues >> what going to happen without a doubt no matter what happens tomorrow is people will say how was this election influenced it is the conventional wisdom. if things go as expected and republicans and senate with republican administration things are peachy because it means nothing can get done

>> we had massive gridlock congress would not allow to put anymore spending the market did great after that. whether it was because of that or not it coexisted with gridlock i don't think the outcome is decisive to the next big move in the market we are going to get reflectix moves. >> let's bring in jc.j. two has read on how clients traded in october in anticipation from the midterm. was there a lot about how things would play out >> a lot less than people would see. so with that you guys just got

down talking about big tech. some of the stocks were just that there is definitely a little bit of a line sort of being drawn in the sand as to what they are doing. >> do you think the clients are buying it for pricing reasons? they are not concerned about short term earnings. >> and you know, when they look shorter term i think there were two interesting things number one i have been lucky enough to come on with you guys. at&t has been kind of a stall work on that list. >> it wasn't on the list

it is a bit fixed income stocks traditionally bought we are not seeing so much >> we are in overall market exposure it was liquidation and other things like that >> so they were hired six monos in a row if you look over the last two years it is just over the medium level of where they have been. i don't think it's a time where they are being crazy about it. particularly with all of the news coming off the next couple of weeks the last thing about it is we have returned to a more normal volatility level and i think that when you look at the fact that last time volatility was here things like the dow were a lot lower. it is a lot for people >> so based on history and how you tracked customer buying and what the market has done what can you tell us about where the market is headed

what happens after one of the worst stocks lied fslides and we the new trend is going is it a change in sentiment? >> it is a little bit of change in sentiment it is not just -- it is very much more selective about stocks they think will be better longer term i think where as people were i won't say throwing money at it before things went pretty well you're at a time where you have to be much more selective as to what you buy so, you know, we'll see about that one other thing i wanted to mention is from our millennial traders, the stock that they sold that was different from the rest of our group was disney remember when i was on three months ago they were buyers of it they sold disney and they sold starbucks which is very interesting to me. >> it wasn't timed well. >> it wasn't timed so well

actually hopefully they bought it it is up 20% since june. >> great to see you as always. >> it is great from ameritrade >> yeah. so we say elf or elf but it is eyes, lips, face putting up a b here for earnings and revenues earnings at 17 cents a share they had been looking for 8 cents and revenues at almost 64 million. it is about $4 billion more than analysts had been looking for. if you look at the full year 2018 guidance they did end up upping the lower end but keep in mind they just had a big part here for the current quarter no clues about what the tariff increase will mean to the cost on the business but you can be sure analysts will be asking that on the call

shares are higher by almost 11%. back over to you >> that's what i was going to ask you. the shock has gotten she lacked over the last 12 months. it has been a company that's growing. i was wondering if the tariffs that have been announced so far include cosmetics. elf sources everything >> absolutely. the tariffs have a lot of these cosmetic beauty components so also the ingredients that go into that. they haven't really detailed it very far and even that 10% is something most analysts think they can absorb a lot better than when it gets bumped up to 25%. there has to be clarifications about what it means after january 1st. it is a big question for this call and going forward >> all right thank you. we have a news alert on under armour >> this is a wall street journal

report that says over many years executives and employees of under armour, the sports apparel company including the chairman and chief executive went with athletes and coworkers to strip clubs after corporate events and often the company paid for that. they would put the charges on their corporate card they will no longer be able to do that apparently as a result of that investigation by the wall street journal under armour issued a statement that says we have addressed the serious allegations of the past and will continue to add dress workplace behavior that violates our policies and inappropriate behavior is not tolerated. you're up to date. back to you. >> the only stopping the expensing of that now. >> it was permitted outright

according to the wall street journal. they have saying executives, employees and athletes that were signed to under armour after corporate events would go to strip clean ups and they would use their company card to pay for that and then put in for reimbursement. they will no longer be able to do that. >> i will say that is the headline there is actually a much bigger story about company culture, workplace culture and no specific allegations against the ceo which i think is important some of the questions that were raised about nike a little bit last year and whether it was a comfortable place for women to work there are descriptions in this article where they talk about company parties and inviting younger women because of how attractive they were >> women were invited to annual company events based on appeal to male guests so obviously it goes to a deeper

corporate culture that is now coming to light and in this environment obviously under armour is saying it is add dressing those issues. >> before we let you go one question we are hearing from j.j. you have to pick your stocks a bit better do you think it is over now or just a little bit of a pull back before people focus on what's growing and what's not >> i think you're seeing there's a movement from growth to value and i think that what you're seeing is momentum is going off. when you're paying double digit times a lot of that is coming off the table. we are longer in the cycle we are longer in the market. growth is coming harder to come by >> so it is not just a trade >> it remains to be seen if it's a little bit of a closing of a gap a little bit keep in mind some of the stocks

topped a long while ago. apple held up better right now it's really only microsoft hanging near the highs. to me it could be apple. it might be a moment and try to work itself out. >> to okay thanks for joining us. good to see you. amazon disrupting the retail giant after rocking competitors with holiday shipping. it is targeting more than one location for the second hq we'll get details on both of those stories and what it means coming up. the vote of confidence, how the new ceo put his money where his mouth is we want to hear from you wa ocan reach out to the show alysr send us an e-mail. the closing bell back after a quick update

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those stories for us let's start with a possible decision or perhaps hq 3 >> that's right. this is rapidly moving and the plot is thickening if this reporter is true then amazon is now considering splitting the project into duocities. it would bear out something we have been reporting on for four years now. it is that america has a critical shortage of skilled woshlgers because the lack of skilled workers is reported to be the reason behind this decision reported by the wall street journal as well as nbc news we know based on our reporting and based on reports by the washington post that amazon has had extended talks, particularly the area known as crystal city a lot of kra r kra sant office

space. looking at the company's stated criteria northern virginia does pretty well. a b plus overall with weaknesses being on location. if it is one of the two locations what is the other? there are 20 finalists they reported amazon had extended talks with dallas the weaknesses and quality of life and shortage of stem workers new york city could be among those. it is a gutsy call if we looked that the at multiple locations in the metro area, there are three in northern virginia and maryland and district of columbia a decision could come. the reports say as soon as this week, guys >> i'm sure they checked the

scores for the top states for business thank you. >> courtney has the decision that will impact all amazon users and potentially other retailers. >> hi. you don't need a prime membership on amazon.com this holiday season it goes until the items arrive in time until christmas. amazon did forecast slower revenue growth than analysts had expected at the end of the october. amazon captures around half of all u.s. online sales. so amazon's move matched what target anountsed last month. it is waving its shipping minimum until december 22nd.

this year target promises delivery in two days macy's pick-up in stores is free amazon shipping costs hit almost 22 billion in the full year for 2017, nearly double the 11.5 billion two years prior it can offset some of the costs. we don't know what it means. back over to you >> thanks very much for that let's discuss this further amazon's move and how it could

heat up the competition. trip miller is with us >> i think it's an opportunity to gain even more market share and go head to head on the shipping side and we'll see what walmart does i think the ball is in their court to react to this i think in the long term what it does is lets these people that aren't already prime members experience everything amazon has to offer and probably come january you'll see a high number of those convert over the prime customers. >> so after the last quarter there were questions about how much competition amazon is facing do you think a move like this signals they are feeling the heat >> absolutely. it has been able to meet the sales target without resorting to not sponsoring to not

requiring prime membership it signals a real change to their business model one thing they have relied on is the prime business model of $120 a year can writewrite underwrit free shipping. during the holiday season consumers are able to get that benefit without free shipping. >> i guess the question is how much it stresses the overall system they are spending a lot of money in a bottleneck to try to deliver most of the customers. is it just to the benefit of customers or can they keep their profit margins up with all of this >> i think they are definitely

under fire it is the charge on shipping come january we see that effecting so again, no one has benefitted more from these than amazon. >> does it stay suggest they must be doing well for samson to fight back like this >> it the market's response today and amazon moving down i think it speaks to the fact that walmart and target are now strong enough to fight back against amazon you have to go to more and more difficult measures to maintain their momentum which is fading >> do we know the market share

>> it is dramatically more i think what i really come back to is that amazon's shipping cost is more than 13% of sales for walmart and target that online sales are less than 20 bank account of sales. even if they are running at the same rate they can subsidize free shipping much greater full truckloads and customer shoppi shopping themselves. it has been virtually zero this has been able to happen and amazon stock has been able to do well as investors start to realize they will not be able to gain market share and that the only

way to gain share is to reduce their long-term margins of the business their stock will be under pressure you're already seeing this if you want today buy pancake mix what comes up is you have to buy eight boxes together we are already seeing amazon is raising prices to accommodate free shipping. >> i have bought that pab cake mix. >> not on amazon like an old school >> thank you both for joining us >> thank you we have an earnings alert here we have the numbers. >> report mylan reporting earnings, $1.25 versus $1.19 it doubled its profit in the third quarter.

the generic drug maker did miss street estimates it did reaffirm the 2018 guidance you may remember back in august it said its board set up a economy to set up alternatives still looking for more details on that. stock is up about 6% here in extended trade >> okay. thank you very much for that one. let's take a broader look at how we finished the day on wall street higher for the dow and the s&p not too far from the high. the high is 236 points we ended up 190 points on the dow. we begin with sad stories here a newlywed couple was killed 100

miles west of san antonio. it shows them exchanging their vows just before the accident. no word on what caused the crash shortly after takeoff. the pilot was also killed. the supreme court taking a significant stand on net neutrality the court saying it will not take up challenges to the obama era regulation that barred from giving certain customers preferential treatment it is a big set back for internet industry groups >> more companies giving their employees the day off to vote. 44% of u.s. firms will give workers paid time off according to information from the society of human resource management and finally, a slime themed advent calendar is making a lot of money it is being resold for up to five times the original price.

that's news update some slimey people out there apparently >> thank you for that. bombardment of political advertisement delivering more than just political messages it that story is coming up so they say that ai will put the future in the palm of our hands. that's great. but right now you've got your hands full with your global supply chain. okay, france wants 50,000 front fenders by friday. that's why you work with watson. i analyzed thousands of contracts and detected a discrepancy. it works with procurement systems you already use to help speed up distribution without slowing down your team. frank, tell fred full force on those french fenders. fine. fine. fantastic. for ai that knows your industry, choose watson. hello!

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welcome back wall street estimate of 5.37 billion revenue per available room which is key metric per available operators up and the estimate was up 3.1%. the stock down 3%. back to you. >> all right thank you. facebook, amazon, google back in president trump's cross hairs, why the president is looking at the tech titans with a critical eye we'll tell you what he said coming up. oh good, you're awake! finally. you're still here? come on, denise. we're voya! we stay with you to and through retirement... with solutions to help provide income throughout. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. oh. so, that means no breakfast?

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>> welcome back. billions have been spent on political ads. we have a look at how much of that is going towards social media. >> flil ads expected to hit $2.9 billion this year it is up about 90% from 2014 that research organization says they will draw over 990 million with 956 million spent on house

ads and 926 million spent on senate ads while broadcast tv still dominates with 2.4 billion total digital is growing on facebook despite manipulation $354 million spent on over 2 million different political facebook ads between may and november 3rd democrats outspent republicans on facebook 3-1 if you look at the last week of october that's according to the atlantic analysis the top spender on facebook since may, texas democratic senate spending $7.1 million democratic super pack working for us spending nearly $2.8 million he also spent $880,000 on twitter ads. twitter's over aps owl spending

is is much smaller than facebook with 2.1 spent by congressional candidates through the end of last week. that is akofrdiccording to bloo analysis >> all right thank you. estimated 4.6 billion going to broadcast and cable networks. which companies stand to benefit the most joining us now is bill is kip. first to you because you have some data where you have looked at where the most money has been spent in broadcast television. what did you find? >> well, we found that tv the still getting the majority of -- well, not the majority but the biggest part of political ad spending even though their percentage is down the most interesting thing about all of this is about half of

this advertising spending a good deal more than half is locally targeted >> and does it go more to cable or to broadcast? >> it is still going more to broadca broadcast. cable has had the greatest increase that is because cable for one thing is cheaper and for another thing is more easily targetable. you can get specific audiences and that's the mantra this year. it targets your audience, talks to the people you know will vote for you or who you want to vote for you. >> which stocks would you suggest to benefit this midterms >> she said numbers she put up earlier, those numbers for facebook relative to 2.3 and

$2.4 billion is really quite small. so it is still going to tv because it is effective because candidates need to be there and they are all there at once stock wise if you look at the market where the real spending is happening you to look at phoenix it is at the top of the list and kind of combined play is nbc universal who happens to own cable systems where they sell cable as well as tv stations now, it's a big company so it doesn't impact their bottom line the same way it does but still, it would be material >> you know, the case for these stocks in advance advance of an election year is it's an election year. next year it will be don't worry

about the every year comparisons. is it already fully priced in at this point >> i think it has been going on long enough. they understand every other year the even year dynamic. i think what they are starting to look at is really 2020. you a market it has already hit 100 million. they expect that to be higher in 2020 it has to be looking and seeing signals out there. >> we are out of time. if you could be quit why do democrats outspend on digital. >> they are following the lead from barack obama who was one of the pioneers in digital spending

and it is 4 to 6% of all of the ads that you're seeing involve health care. that kind of pushed the republicans back on their toes across the country the local -- on all of the local elections it has given them a better place to push from. they have backed the truck up and spent the money. >> we'll see if it is worth it tomorrow >> thank you larry putting a bibeg t on ge shares. we'll tell you how much he bought neb -- next your company is constantly evolving.

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baird. time now for take away amazon and facebook all closing in the red after president trump said his administration is looking into the companies for anti-trust violations. in an interview that aired last night, listen. >> what about sending -- >> you know, i have so many people saying that it is certainly something we have looked at

they were talking about this years ago. they were talking about this same subject years ago i am in charge i am definitely in charge and we are look agent it. >> it is anti-trust. >> yes >> for amazon? >> for all all three. >> it impacted the stocks, no question, but hard to tell how much substance was in. >> exactly i mean, the messaging is clear these are gestures saying that these are kind of companies he would like to villainize i do think the one area it might matter is if any of them is considering a big acquisition, and it might be a chilling effect and people say do we want to fight this out in terms of getting it approved? >> as you said earlier with the big tech companies, it's hard to see any companies that wouldn't want it after the mid terms. very popular across the board. you could have argued a couple years ago, amazon, so good for the consumer, everyone is getting free delivery. walmart, target, fighting back. >> political backlash and bashing actually turn into an

antitrust case against a company like this. >> a long time ago before we see legislation. >> a long time since the company went after a company for being very big. >> there will be support for it but a long way off larry culp signalling that his stock make a comeback. ge's stock was trading at lows not seen nearly in a decade. clearly a positive sign because he's not selling that said, relative to his total comp package, relative to the other example, the diamond bottom at the start of 2016, the purchase is pretty small. >> it is really a signaling effect. part of the new playbook you're already a board member and he did get stocks in those meet >> a bigger story if he didn't in a way. >> ibm, too though. >> huge, huge equity awards, much more than $2 billion worth. >> ibm finally, jpmorgan is letting clients get their hands on a piece of internal trading software for the first time. the bank has started selling subscriptions of their

investment analytics program called athena used by jpmorgan's own traders and sales people the firm has already sold more than 200 subscriptions of the program. >> this is interesting goldman sachs has started doing this with its own trading platform the difference is whether you're outsourcing tech to your clients, ie on the buy side versus if you're doing it to fellow brokers ie rivals, which is what goldman sachs is doing, a pure trading platform rather than analytics for people who invest either way, the broad theme is the same, looking for different revenue streams from the vest banking divisions, particularly the trading divisions, and china offsets some of the costs they have had in terms of investing heavily in tech. >> black rock pioneered this and has the guts of a lot of bond trading platforms. >> potentially more information and tools for investors. up next, we'll look at whether the fed could end up cooling off the red t bsart ene hojo mkewh w come right back.

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welcome back president trump touting his strong october jobs report as a reason to vote republican in tomorrow's mid terms, but just how hot is the jobs market steve liesman joins us with a look hey, steve. >> pretty darn hot, wilf, and causing a pretty big concern with how low can the unemployment rate go and hoe low can it go before the fed reacts? the current job market includes unemployed, those marginally tied to the workforce and 7.4%, three points below the long run

average. 4.5 million part-time and 6.1 million unemployed and 1.5 million marginally attached. add it all up, 11.4 million. goldman sachs writing we expect the unemployment rate to resume its decline in coming months ultimately to 3% by early 2020 this is probably well below the level consistent with the fed's inflation market and labor market tightness is moving to levels rarely seen in post-war history so the economy really needs to slow to avoid a dangerous overheating. the up employment is latest since '69. that did not help as inflation rose in the '70s if it stays hot the fed may have to next year hike, hike, hike, hike. >> good news for trump potentially in the mid terms, but, i don't know, not if he continues to rail against the fed. we've got a rally aheaofd tomorrow's mid-term election, and we'll recap the big movers for you next . i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back.

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not just wealth, but things that matter. morgan stanley let's check in on some after-hours moving mylan shares higher after doubling its third-quarter profits. that's up 6 boston. >> elf beauty shares soaring after beating revenue and profit forecasts, also raising the lower end of its full-year

forecast that stock though, i mean, it's up a lot, but it had been down almost 50%. >> broken growth stock, still very heavily shorted. >> gains for the dow and the s&p, the nasdaq was lower. that just about does it for "closing bell" today. >> yeah. "fast money" starts right now. "fast money" does start right now live from the nasdaq market site overlooking new york times's times square our traders, tim seymour, karen finerman, guy adami. apple gets solised, worst two-day losing streak in five years. this could be your chance to buy the stock. plus, energy bouncing back today. it's one of the best performing sectors in the past week the chartmaster will be around he'll tell you if it's the beginning of a major turnaround. he'll be here to explain, as i said first, though, we start with the markets rallying today, the dow soaring more tha