were -- had sensitivity. >> and sheer big oil you can see it is down 3% on the day. >> restaurant stocks are done well when oil prices fall. >> thank you for watching power lunch. >> the closing bell starts right now. >> good afternoon. a very warm welcome. >> we weigh in ton latest interest rate decision and drop box ceo will both break down their latest earnings reports due soon after the close it has been a pretty choppy

day. the nasdaq is danger n danger of snapping the two day winning streak oil falls for the ninth straight day and remains in bare market territory. let's get with our reporters covering the angles of today we are looking at the fed. mike explaining whether there is an all clear and covering the oil prices let's start with you >> thanks. feds keeping rates unchanged signalled that rates will continue to rise and things could get interesting from here. it has taken it to mean another rate as soon as december they priced the possibility of 80% for december they said the labor market continues to strengthen, economic activity rising at a strong rate and unemployment rate declined. they also said household spending is growing strongly

the fed could continue to see inflation. it sets up a pretty interesting meeting where markets expect the feds to hike president trump complained the central bank is moving too fast and undoing the efforts of tax cuts to speed it up. fed officials argue the current rate is low enough to keep stimulating economic growth and giving that low unemployment they said hey, it should be neutral those are questions for december for november the fed took a pause. >> if we are looking for kind of comments on the economy there was that one line fixed business investment as moderated from rapt pace earlier in the year. there could have been in terms of loan growth in some areas.

>> they could have commented on housing. the fact that they didn't is also a comment in and of itself. what they basically did is they changed 30 words in this statement. so what do you take from that? you take from that before this statement came out the general belief it was going to change in november it should tell them keep your expectations the same. it would have used the changes to use the expectations. there is no reason to altar any reason you thought before you thought what was going to happen in december. >> thanks very much for that what will that decision from the fed mean in terms of whether we are heading for a bigger rally let's bring in mike. what's your take

>> yeah. the market is pausing at a logical space. the fist rally attempt once they get through to the upside we recovered about 60% of losses it is also the amount of time the market might take a breather >> i think it has rescued a market you kind of got back up the 200 day average. the up trend is kind of back in place. i had been in jeopardy for a

little bit all of that stuff is fine. i do think that wasthe easier part than this next let's say 5% that it would take in the september highs. >> diving into today's moves, clearly energy is the worst performing sector. tech and communication services are close behind that. it has taken a bigger leg down >> i think it's a bit of spill back from yesterday's rally in terms of those two groups. that's where the chase went on yesterday. i would also point to treasury yields also. they are sticky. it still remains there >> absolutely. and with treasury yields higher these are two sectors that have traded opposite that so definitely something.

>> exactly >> well, thanks. stocks have gained back from their october lows we are back with more. it is down for the ninth straight session domestic supplies is one issue but slowing global demand a volatile stock market, a rising dollar some of the other factors. they are going to meet and their production has been rising slowly there is chatter they could cut. some of the experts are saying no way they are not handing over this extra market share without a

fight. president trump made it clear he watches the oil market and studies it as well they may slow future drilling policy but it's tough to stop what's flrd place. the only thing that can slow things down at this point the producers if they start to feel the heat from lower prices, guys >> i saw headlines earlier today now there's a possibility saudi could be looking into what it would look like to break up opec >> so those headlines came out from a saudi thinktank

it is in the bare market territory. it makes you think are prices going down and are they going to stay there far while is that what the president is slowly try to go do here >> jackie is back for us energy is the worst performing sector energy did do fairly well having had the likes of chevron report pretty likely. we are coming off a solid week joining this is lindsay bell and rick is there. good afternoon to rick

what's your take on the feds sort of lack of detail, lack of action and the markets response to it? >> well, i'll tell you, the fed is not going to win any favorable entity of the year awards most investors continue to talk as though they may be the big problem and may be the cause of recession. it might turn out that way you have to give them credit up to this point. they continue to put forth a tightening plan. how do i know that we are still at a seven handle in the nasdaq and 26 plus on the dow. the markets are dealing with it. yes they have soft spots but not nearly as bad as some of the adjustment forecast work two year through five year are sitting at cycle highs ten year about half a basis point away the bounce in the dollar index post election has been fabulous. it is a penny off its lows from

election night lows before some of the results came out. its power up three quarters of a cent it is up from as high a cycle close which was 97 and change. at least with how markets are kal bragt to a tighter environment it seems to be very orderly. >> thank you let's continue to discussion in terms of where we stand now with forecasts for the year ahead, not all of the earnings reports have wowed the market particularly because of their guidance where do we stand in terms of expecting significant gains? >> so if you're looking at eps numbers have come down all year we have seen earnings expectations at about 10%. it just happened with third quarter earnings at that point you had management teams come out and talk about the costs, escalation and how it will impact their bottom line.

that had something to do with pull back in the market as well. a little bit of less confidence, you know, with the backdrop of trade and others in the issue here sales numbers are actually moving higher. we are at about 6.3% it was at about 5.2% going into this earnings period >> that's a key point you make we have heard so much about margin, margin con stratraction maybe those concerns are bigger than they need to be >> and 8.5% on the bottom line is stale veill a very very long number margins will be solid going into next year. that's the expectation it is just that we are cycling this tax reform package. that's where you'll see the reduction in growth.

>> what do you make of it at the moment a big pull back in october >> so things will be a little challenging from here. >> you have got to look at what companies said this quarter, which companies guided higher which look positive about their bye backs. those are the companies you need to focuson

>> it is as we go into of course a very strong employment picture out there. those two drivers we think underpin what we think consumer companies can do going forward so we are very optimistic about the consumer still >> just to round things off your forecast for next year as well >> 3,100 on a 12 month basis >> thanks very much. we have a market flash lestly has the details >> that's right. shares reopening after being halted but a story showing that the company is exploring a

potential sale of itself after receiving takeover interest. that is coming in light of people familiar with the matter according to this. their sources told them we have reached out to the company if you see that spike of about 3.4% it is up 14 -- more than 14% off of its lows of the day this company makes wireless head sets there has been consolidation it will be an interesting move for that sector. back over to you >> thank you coming up next, mark said last week that democratic house win would be bad for the market. we'll see if his view has changed. >> we'll get a prevu of what to expect and first cnbc interview.

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rj we are down 34 points there is the winners on the dow. walgreens up 1.2%. on pace for the largest weakly gain in nine months our next guest says this momentum may be short lived. joining us is marknow.

>> it is good for the u.s. economy and imamericaning markets it's a good news but i think going forward you'll have gridlock in the u.s. and the ability of trump to be able to get another tax cut. it will not be good. that's what people are kountsing on, another tax cut. therefore the market is probably not going to do very well going into the next year >> so you think investors had already fully priced in another tax cut. the lack of that will be negative for the market. do you think the economy will slow down as well next year as well >> next year it will be dift to match it i think you'll get a slow down i'm not talking about a

recession but a slowdown >> it has been very goods for the market you have had that incredible rally. next year i don't think he will pull many rabbits out of the hat. it will be a real difficulty for him. >> whether it's midterm related or not clearly it has hatd decent strength since the sort of springtime. do you think that's going to bait now the dollar strength and what does that mean for international equities you focus on so closely?

>> i think you'll get a higher interest rate and more money going into the interest side also don't forget a lot of others have already had massive declines so this is over. going forbard i believe the u.s. indeks will probably move sidewards and maybe down >> so is it a buying opportunity for immerging market equities? >> i think so. if you look at some of these they have already rallied. >> where do you see the bigge students >> i think india and brazil and then after that some of the smaller markets.

>> you didn't mention china. should i read into that maybe you think this u.s. china trade sengs will continue for some time >> i think eventually they will make an agreement. i think they are smart enough to know from a long-term point of view to make an agreement with trump. i think they will have to straighten out their leveraging it is a very good indicator is if you look at the high rollers they are down and the high rolling income is down substantially. it is a signal that the economy in china is not doing very well.

>> so all of the stocks down today. do you think these are working and do you think he will be in a strong position to force china to make a deal that is favorable to the u.s. and something president trump can claim as victory? >> talk us through that. >> yeah. if you look at the history of the u.s. market and any market it comes to an end eventually

and this is long overdue for a correction, a substantial direction. you have got to expect a downturn i'm not saying a huge bare market but substantial direction from where we are now. >> all right thank you very much. mark is joining us from london today. >> we have 35 minutes left until the close. the dow is now down 33 points. the spread today for the dow is up nearly 100. we are covering back towards the close. the nasdaq is not really doing so well. tech stocks still down coming up we have an all star line up to break down today's fed decision and what it could mean for the market. richard and jim join us live ahead. plus a big surprise in the auto world today ford branches out into a new

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we have a market flash on gas and electric we have the story in san francisco. >> that's right. shares are down about 2.5% or so right now. it is considering shutting off poir to residents in california in order to mitigate the fire risk there it is gaining traction and traders are starting to notice back to you guys >> thanks for that i'm now for a cnbc update. >> here is what's happening rigt

now. former marine ian long killed 11 people at a bar. a federal appeals court rejected the bid to move ahead with the planned cancellation of the daca program it voiced flawed reasons in december of 2017 subaru recalling 2018 outback vehicles far software problem that prevents to low fuel warning light from coming on

prince charles, it happened during an interview for a documentary marking his 7 09 birthday that's assuming that he ever becomes king >> well -- >> i had to go to there. >> we hope not far long time >> thank you very much let's get a check on what's moving in the markets as we head into the close courtney is here. >> we sue things work out in terms of the fed if you look at the dow today right now we are down about 28 points or so we have come off of the lows interesting thing on a day when it's kind of quiet you had four new highs tondow

losing ground folting the fed. retail is what's been on fire on a short squeeze surging to a new high back to you. >> thanks very much for that what's happening at the nasdaq let's get to courtney for that >> the nasdaq has been negative throughout the day so down here at the nasdaq we are the weakest of the major indexes. if you take a look a lot of it has to do with earnings and kwied answer related stories we have a lot of china names we know wynn reported after the bell yesterday it is pulling names lower as

well so pretty big names down facebook, apple, amazon, those are lowest too facebook is the number one point drag a number of names are higher the chip names had some strong earnings, part of the reason to pull a group higher. back over to you >> thank you surprising news today. phil has to details. >> the name of the company is called spin. like so many it believes there is great demand when it comes to people who want to share scooters they are dockless scooters you can go and basically rent them out far short period of time

there has been great growth for other companies when it comes to these types of scooters. ford believes it is part of that mobility question of how do you get people not just their last mile but really the last 300 feet from some corm of transportation and they need to make it to the destination, whatever that might be ford has done a number of investments within the last year and a half two years, some of these have been made these are apps you'll use in terms of getting a vehicle or a ride the idea here being that ford believes it is working on solving transportation problems worldwide. true but is that what investors want they are down about 21% this

year we'll get an update on the autonomous vehicle progress next week it will tells how much money they are investing i also want to show ford versus the competitor in the detroit area if you take a look at these two shares no comparison why am i showing you this? it continues under new ceo they have taken the approach of we build cars and trucks some will say it's not going to break the bank but is it the best use of your money others are trying to hedge the their own decline.

it seems incredibly late >> it is the likes of other companies, uber and lyft, it's not like they have come up with the idea themselves. it is the idea you hold it and sell it. when this market explodes. is there any guarantee this is why when i talked to a few they said interesting i'm not sure -- it doesn't move the needle but it's an interesting move by ford >> have you movered these? >> i have not but i think somebody else has. >> the real answer is to walk having tried one of these out.

>> this is peak scooter. >> exactly i wouldn't use it as a practical thing. >> if you know anybody that lives in the city where these are, highly controversial. some hate them with a passion. they believe people are not using them effectively some people have said it's not bad. if i need to go to a restaurant or store i kind of like it i'll be curious to see what this is three years from now. >> there we go ford shares trading lower, 1.2%. we'll see you again to talk t tesla in the next hour 24 minutes left. we have markets down lower 55 points on the dow. nasdaq continues to lag is down

0.8% still to come we are waiting key earnings we'll break down the numbers as soon as they hit live about the results a jam packed edition of closing bell is back right after this break.

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dune full percent at the moment taking an extra little leg lower. 20 minutes left to trade we are looking at a 4% decline on the nasdaq. so many individual stocks to watch now. >> all right >> my stock. >> you go first. >> that was my mistake down 12.8% i'm not going to labor it.

sit similar to the 2008/2009 recession. it is not down to any individual factors. both vip and mass market but they think it is quite seriously low. i think as china is slowing down the high vip is a good guidance as well. >> we'll see >> my stock is crocks. it is soaring. crocks reported earnings of 7 cents per share when it was expecting a loss of 2 cents. stocks up 28.5%. it is actually up more than 175%

over the past 12 months. here is what is so crazy ch we heard about it a few weeks bag crocks are hot with teenagers. >> are they hot or comfortable home ware? >> maybe both. >> supposedly they are very cool >> i would never be the person to answer that i can't believe it >> 0e8d is new again the dow is downright now about 51 points. the s&p is also lower at 2,800 right now. it is down about 13.5 points next month could bring a different story. up next former dallas and jim grant are going to tells how

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yields on the move to keep rates unchanged. hitting the highest level since 2008 joins us what it might mean richard fisher and jim of grant's interest rate observer i start with you thank you for your preliminary notes that you sent us you were blown away with excitement at this fed release, were you not >> that's right. my reaction was a sleeper. this is good i think what he has brought to the fed, he reduced the size of the statement. i think it's pretty clear they are on the path that i believe they should be on which is gradual rate increases

i need to study the lyrics to it you look like i need that drink. the markets needed a drink to realize things were different this time. y0u8 try to let me down nice and easy you're trying to do it nice and easy they are clearly on a path to future rate increases. if you look at the auks from the 2 to 7 year space they have not been that great. a lot of deals stuck with a bigger amount of inventory you have twin forces now you a forecast government going out for a trillion more. you have the fed not buying it and putting it on balance sheets i think they had a stiff drink they realize rates are headed upwards. december has been priced in. i think you have had a mild reaction after the statement was

released >> and i'm going to ask you that question right now, do you a different view or do you agree with that? >> i think rates are probably moving higher. it is apparently put in the first week of july 2016. so the direction i suppose is up there's another country there that nobody calls from las vegas just to say hello >> it is up even though it was pretty much as expected. >> well, i think that perhaps the move yesterday is more appealing than today's move, perhaps the alliance that donald trump suggested for the

democrats is an alliance against equality of the public credit. they mentioned the expected supply in the market talking about the biggest dollar amount of securities for sale it is since world war ii so -- and what president trump might agree on is that it is of no consequence that a trillion dollars plus deficit in is perfectly normal and that depression level interest rates are also normal. it is for a yield at less than zero so we have this alignment of very very low interest rates still and elevated asset values. >> richard, it seems the market,

you have the fed potentially pricing in three more rate hikes. when you get lines like the growth of business fixed investment has moderated from the rapid pace does it give you pause in terms of the feds projected plan in 2019 >> well, moderated is decent growth 6% sounded pretty good they have made this statement which is a little bit mysterious to me, which is we may have to go beyond the neutral rate without declaring what that knew ral rate is. i think the directional sign is headed upwards markets will have to discount

thataccordingly. we are an attractive place to be right now. you to ask where it comes from it seems to me it is an attractive place to be everybody expected that outcome. it wasn't as radical as some

expected we have eight minutes left of trade. we are lower to the tune of 18 points ton dow we have improved it has been a volatile session we have a little bit before the close. the dow is nearly flat up next we will preview disney's earnings with the chairman and ceo. >> and tomorrow we'll hear exclusively from did tloavayr from investor day. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? 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.

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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. >> disney earnings are due out >> well, one really important thing to watch from disney is what bob says about the digital strategy now that the acquisition is nearing closure we are looking for updates on the subscriber base, guidance on the disney streaming app as well as plans for hulu. the company is expected to go earnings by 25%. revenue expected to grow 7.5%. we'll have more coming up after

the bell >> thank you we'll be back with the closing count down four minutes after trade.

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s and p 500 today a nice little recovery as we approach the close. you can see the dow is nearly flat as s&p dune little bit more it is down now only 0.6% having been down a full percent this is tech communication services that are suffering. it is energy that is worse of all right at the bottom. we have oil prices for you year to date. we have a quick summary. >> the interesting thing, the feds changed their statement to knowledge the fact that they are see ago slowing in corporate spending which is really kind of a fade of that tax tail wednesday that we had. corporations are still on buy backs saying 50 to 60% giving back shareholders and buy backs.

it has been helping quite a bit. it is something to watch the other thing to watch is they talked about the help of the consumer spending. those consumer names today, retail names at all time highs >> it was a volatile session here we did end off the lows. the dow turned positive as we approached the close it is up 10 points the nasdaq, that does it for the first hour of the closing bell back to you. >> thank you welcome to the closing bell. along with me sitting here mike is here. here is how we are finishing the day on wall street stocks settle into the close here the dow finishing the day up s&p down about 7 points.

above that 2,800 level the nasdaq, the big under performer today down about half a percent, 39 points. it is after that big post midterm rally yesterday. we had treasury yields move higher the two year yields, ten year high and energy stocks lower as crude has moved lower. it will be a busy hour for earnings we will have numbers from blizzard josh lipton will bring us more jackie will have earnings from yelp we'll have an interview with bob iger just after earnings are out. let's talk about the market action today >> you know, markets just took a breather it was at a point, seven day sprint higher. it was right around a level

where it made sense for it to calm dune littown a little bit we say we have held most of the gains of the last week you have able to look at treasury yields. still it could hang in there so a low drama day >> stephanie, was yesterday too big a bounce >> i don't know if it was too big of a bounce. it was encouraging i think everyone was expecting to have followed for today since we didn't have follow through and by the way, there were sectors that got hammered it was a quietday.

if we get a stalemate kind of thing we know how to model we know we'll do a kind of growth next year >> is trade the most important macro factor more than rates >> i think sow it is good enough for the fed to do what they are doing i think he is more data dependent than he is getting credit for you have such uncertainty for so many different things. business confidence, business investment that business investment was not great. >> the other thing is it's not a trending thing okay the trend is higher. we can kind of build that in and discount it. it is -- is there a hard line, soft line, a deal or not a deal?

we can't handicap that very well do you think it's a reflection of what some of these china and u.s. trade tensions? >> no doubt. it is a heavily revised number so it is third quarter versus the third half that's a big drop. i think you'll see a revision. there is no doubt about it if you listen to any companies on any conference calls and it was the issue, this is clearly on the minds you really have to pick your

spots. so a big bite came in a hurry. basically you get a little bit of a snap back i think the big debate is was it just a snap back rally it is a sort of down trend from september and october necessarily but i think it's one of those bait await and see >> would you be more skeptical that it is a quick bounce? everyone talks about the seasonal factor. >> exactly >> i think you would have one fewer reason to give the market the benefit of the doubt as it were in may opposed to november. >> although we have disney numbers. we want to get straight to them.

>> i justed earnings per share it is up from $1.07 a year ago expectations were for $1.34. revenue up 12%to 14.31 billion studio and entertainment more than doubling to 596 million we are seeing total media networks and then parks and resorts showing 9% re knew increase and11% operating

increase cable networks declined 6% we'll continue to dig through here it looks like there's no meaningful we'll be back in one minute to talk about all of the results with bob iger. >> i think we heard a little cough from him as well first of all, a quick reaction to the numbers >> yeah. it looks pretty good across the board. i don't know if the market always pays up it is not necessarily always rep lickable it makes sense >> you're invested in disney what is your take away from

numbers you have so far? >> i'm breathing a sieg gh of relief i think the stock typically trades at an 8% premium. it looks good. >> let's get back over to julia. we are with bob iger >> thanks so much. thanks so much for joining us today. tell us what is driving this surprise for the company >> if you don't mind, before we get to earnings it has been a very difficult day in our country, in particular in southern california. 12 innocent people lost their lives through a senseless act of gun violence including a heroic member of law enforcement. these were people that were neighbors and relatives. our hearts go out to all of those victims.

it is a very very difficult morning here >> certainly a tough time in southern california with this shooting now, moving onto your results, big upside surprises especially at the studio. what was driving that growth >> it had another record year with incredible success across the board. it was a great one so that really helped drive not only our earnings for the quarter but for the year no studio has ever done as well as our studio did in fiscal 18 >> tell me about particularly strong growth in broadcasting. what's going on in espn? >> we are on a same war but espn had in terms of traditional subs

but the growth and digitals continued through not only the year but the quarter and so sub losses were dated substantially. >> does that mean you see a quarter next quarter or in the future when you'll start seeing the growth >> we are not going to speculate about the year ahead because it's just begun. it is a little early the trends have been good for a while. >> it sounds like particular strength in the u.s. has been making big investments here. do you see those investments pay off? >> it is a result of a number of things what we have managed to build over the years and it has certainly helped

we have inebl operational excellence not just doe metsicimet -- doe mesically and across the world it didn't have much of an effect this year. to make things simpler to spend demand a bit and prove guest experience and make it easier to buy the tickets and to increase yield. on top of that we are seeing a very strong economy. it has clearly helped us >> and it seems like do you have any sense of how it is impacting consumers in terms of bookings for the -- the calendar fourth quarter? >> all signs look good right now. >> tell us about your digital

strategy what more can you tell us? do you have name or anymore details? >> we are announcing a name in about 15 minutes >> are you doing to tell us? >> no. i want to wait for the call. i want people to listen to our earnings call. we announced we were going to the coffin sumer business in a fairly big way not to take advantage of trenlds we are seeing fwou start shifting our business to address a lot of transformati transformation overall we launched espn plus which is doing extremely well the growth has continued we are not getting specific in terms of updating it we'll launch a disney direct service that will feature disney pixar and hopefully national

geographic we'll lend it with a controlling stake of hulu. >> and what is your plan in nerms of acquiring or investing to make sure you have enough to launch with a year from now? >> it it is really star wars series and marvel series and original movies as well. there will be thousands of hours of library products that will be television and movies. then there will be a lot of

programming that the disney fans will really love. >> do you have a better sense of how huge this is >> sit a huge family audience to target and then we also know that we have fans that are disney fans and there are marvel fans and pixar fans and star wars fans and when the acquisition that are complete they love national geographic it is not just in terms of

attracting subs because of the importance of those brands and people have in them. they are also a navigational tool it is looked to be what i call a very elegant experience. you'll have enough volume to support price! you mentioned hulu are you going to acquire the 10% time warner media owns >> it is premature really except to say if time warner or at&t time warner we would be interesting in buying their stake. with 60% which is what we owned we'll have enough control to manage hulu in a way that is consistent with the strategy of the company. >> would the ability to acquire more of it change how much you

invested in it >> not necessarily our plan is to invest in all three services, the espn service and hulu service so that we a chief our goals not just in direct consumer space but transforming by being in that space that will require investment and those will be made across those three brands it has been investing in c content. it is increasing that is being made and to use production entities of what will be the new company particularly on the television side and the talent that we are bringing in to help fuel hulu's growth as well >> you're nearing approvals. what can you tell us about the state of integration and where things stand now >> there are so much we can do we are very happy that we

achieve that had in the eu just this week. there are a few markets left to go we are optimistic that we will get regulatory approval in those markets. at a time it's probably meaningfully ahead of what we anticipated back in june we said it could take as much as 12 months. we feel good about that. while we are waiting there is a lot of planning that is done we are able to create the outline of an organization we announced that for both television and for the studio but we can't run the business as

one. >> if you don't think politics is going to enter into that approval do you think that is going to impact your company at all? >> no. not that i -- no not that i'm aware >> no. another question about fox is you're not getting to spend more time with this you've getting closer to this approval it is coming in as a rival bid there. >> are you thinking that >> as a result of comcast coming in they are paying about 19 billion more do you a sense you might have overpaid or do you feel -- how do you feel about those assets >> when we made the second deal

that we made which was in june we said at the time we felt very good about the price we were paying there were changes that occurred and time we made the deal. and so feel very good and we are looking forward to getting the approval so we can operate as one company. >> as part of that a lot of changes to your studio tell us what to expect in terms of the studio going forward you'll have a big chunk of the box office share here in the u.s. how are you going to approach this to make sure you're able to grow the studio without over saturating the market? >> first of all we have both been in the market

some of those movies are perfectly complimentary to the films that we make they have been in the family business a bit typically they are not it is more adult oriented. it makes a different movie than the movies disney is making. we think that the films that those studios have made and will make are complimentary to the films that we made we think it fits in perfectly in that regard. the great thing too is with this comes not only talent but some incredible properties. it is making a few films that will be part of a disney slate >> we look forward to following the completion and also we will be tuning into your earnings call where you announce the name of the new disney streaming service. >> you almost caught me too.

>> thank you much for joining us we'll let you get off to your call back over to you >> thank you you got so much. fantastic nterview >> espn is impressive. as i mentioned, i think the stock and evaluation is quite attractive for a company that has a product mix. that's why you own it right? it is a fabulous management team they just went tlau huge ordeal. it is past them now. the story actually gets cleaner going forward. so does comcast.

i think those two companies are the highlights within media this earnings season. >> quick thoughts? >> i think it is steady as she goes they have succeeded in changing the orientation of investors on paid subscriber losses it all works i think it will remain a question in terms of pricing for how you'll market it and what expectations are that's all -- you know, it will be developed i hi the stock reflects the fact that it is getting comfortable >> we are going to dive into disney coming up more earnings ahead. blizzard out and we have the numbers now. >> mixed results from the company. focusing on monthly active users. it seems to be what is sinking

the stock. it is down nearly 10%. let me give you earnings per share. it was 52 cents adjusted expects revenue coming in line at $1.66 billion the projections here, so for q4 adjusted eps projects 1.27 cents. it is on the lower level revenue projections. the company saying it expects sales of 3.05 billion. it is shy of street consensus. monthly active users, this is an important number as it is facing competition. monthly active users down to 345 million. that is a drop for the third straight quarter it increased by 1 million. so 46 million monthly active users indicating that blackout mode for call of duty isn't

having the effect. it did disappoint the street holiday outlook crucial here those were on the earnings call. we will be listening around call of duty numbers and blackout number the stock was already down nearly 20% over the last month, guys >> thanks very much for that in terms of the reaction no one likes to see the users decline as he says it is important about the latest call of duty because it didn't fall into this >> right i think it shows you the sensitivity to any sign that they are losing hours. it is down bay third >> of course it shows that content is king whether you're talking about disney or

activision it is absolutely showing the stocks are not cheap >> we have drop box out with earnings as well josh has those numbers, josh >> yeah. dropbox reporting. it is revenue up 26% to 360.3 million. deferred revenue a touch light at 479 million paying users is better than expecting. she was at $116.97 back to you. >> thanks very much for that we are looking forward to your interview with the ceo who will be joining us.

drew houston will be joining us. that's coming up on closing bell >> let's get over to jackie as well i believe we have yelp earnings out. >> that's right. take a look at this chart. it is trading down about 25% that pretty much says it all right now we are looking at a miss on the top line, revenues of 241 million coming in slightly light of 245 million. not sure if it is comparable to the 10 cent estimate that we have here is the problem. weak quarter guidance on revenues also adjusted guidance is below what the expectations were this is analysts looking ahead here they are not necessarily sure they like what they see from yelp back to you! they certainly don't like it that 26% thanks for that. >> this is sort of story if there is one

>> yeah. it has been a very controversial transition they transitioned to this more flexible advertising model it looks like they are good. it seems they are having to reverse this message >> it would have to be perfect and good guidance. >> stephanie will stick around with us. lots more of those earnings reports. we will hear from one veteran di any watcher, a shareholder and top media exactive coming up >> we'll talk to another ceo about his earnings ahead when we are right here ton closing bell. i am a family man.

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shares are popping 6% after a healthy beat on the top and bottom line. company earning $2.14 a share. revenue coming in much better than expected. what is the rev flenue per day earning $46.23 per day the expectation was for earnings of$45.16 here is what bob iger had to say about hulu

>> if time warner or at&t we certainly would be interested in their mistake. we'll have enough control to manage hulu in a way that is consistent with the strategy of the company that's deploying >> stephanie is back with us jim stewart is here from new york times and vincent the comments on hulu on streaming and disney's plans your take away >> have been optimistic about the future of disney.

again, i would say it is all very affirming for the future strength of disney >> do you think netflix will be in their boots when you hear direct to consumer and you add to that what they already have, the balance sheet he has and the netflix? >> i don't think it will be losing any sleep netflix is a market leader here already. they have a big first mover advantage already. the real question is how much room is there for these streaming services certainly you very successful netflix. you have disney moving in. hulu is there. i think there is room. it's not sure. it's not clear how big the market is here

i don't think we are any where near that yet. >> you'll probably be signing up for disney streaming service to get the little mermaid they will be offering that are no longer available on netflix it sort of jumped out and surprised you. >> i think what we want to know is how much we'll spend next year and when are we going to get operating leverage >> we are speculating it at this point. we all know they are spending a ton of money once they do we'll assess it and figure it out. i think you have all of these other wonderful parts of the country that get you to the finish line before we even understand what this will be about. >> with all that's focused on

the direct consumer or at least the parts that were declining. how is that playing out? >> obviously it has peaked i do think that the question has always been how fast is that going trail off? it is an advantage too if you're talking about going against the other direct consumer. they do have a residual cash flow coming from the one point of the business. you're a content factory already. i agree it is in terms of choosing one entertainment app over another if your going to have two netflix and disney are probably you're top two i think disney's advantage over other traditional media companies is more obvious than disadvantages to netflix >> what do you expect mr. mur dock to do

do you think it will be an influence or will it weigh over the next 12 months >> my guess is he would not be meddling i'm sure they would listen to what he has to say i'm not sure i suspect he may gradually look down he is not going to dump the shares all at once he knew what he was getting. he wanted the stock deal i agree that's lot of upside potential. expectations have been relatively low it's clear they are declining but not falling off a cliff t. studio division is doing amazingly well it is a low multiple business. they are churning out hit after hit. they had a tremendous year there. i suspect he will be very happy to sit ton stock far while >> thank you for joining us to discuss disney's earnings. up next we'll hear from drop

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joining us now in a cnbc exclusive to discuss the numbers is drew houston along with josh lipton, josh >> thank you

>> thank you for joining us. >> let's jump into this. paying users 12.3 million, user conversion is an important metric for your investors. how do you get people who are using drop box for free to start paying you more and more of those? what's the strategy isn't the quarters ahead there >> strong revenue growth and the way we see driving conversion is about bringing people along from using drop box as individuals or maybe they start using the free version and start using the business product we have been able to do that over the last few years. >> what's the potential there? how do those people and dropbox users become paying users? is it 10% of the total >> opportunity is massive. when we think about it every

company we have hundreds of millions of people who have used drop box >> and another metric this is going to concentrate on is revenue per paying users it was $118.60 what leverage did you pull in the quarter? are they sustainable in the quarters ahead >> we see it as a measure of how much value we are driving per subscriber it is to make the product better >> and i want to dive in more.

is the improvement being delivered more on the business product or the consumer side product and how much more room is there to surprise in the sort of 12 month period ahead >> it's happening on both fronts as more of our users subscribe that drives it and as they subscribe to higher tiers it also drives up the growth. both continued to be leverage for us we see a lot of opportunity to continue deep in our relationship >> relationships and customers one key area as well as with various corporate partners some more of those recently. is that sort of a tip of the iceberg moment it is more easily than the likes of google and amazon because of the size of market share they already have >> absolutely. it's a really important part of our strategy is our open eco

system they love having the freedom to use any, that's a big strength of ours. we announced with companies like google and sales force we announced some integrations with companies like zoom who is a leader with collaboration because we saw that our customer, that dropbox customers were using all of these products you look at a company like zoom and building a seamless integration is a really powerful way to increase engagement and improve that of our platform >> thank you so much we preeappreciate it. >> all right send it back to you guys >> thank you both very much. still to come, check the charts for traditional media stocks against their social media rivals don't miss it. we are coming back there a couple of minutes. kevin

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and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. >> welcome back. we have had big earnings after the close. disney up about 1.5%

you can see a miss on revenue. that stock has slipped up about 6% after hours. up next we are tracking more stay tuned let's begin.

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seconds ago ceo speaking and announced two pieces of news p and g going to operate through a new structure. it is sort of a reorganization they have basically ten business units now that are organized bys orpgd by geoography. they are going to have six different seccer business units by category. like beauty, for instance, and that covers the major markets they are in, u.s., china, spain, italy, that sort of thing. this is a way for proctor and gamble and simplify business and make decision making from the consumer to the supply chain go up to one person under ceo david taylor it's something investors have been calling for for a while including one prominent investor nelson pelts who fought pen g in the publicized and sometimes nasty proxy fight.

this is similar to what he had in mind. simplifying the business keeping decision making going through the sector business units. sort of along those lines. other news i wanted to share is john molar, the cfo, regular on cnbc has an expanded role he is going to become the c.o.o. as well. so those two pieces of new that is follow what has been a turn around that pp and g has been going through. the turn around is starting to bear fruit and in fact p and g is coming off the best quarterly sales growth in years because of moves like this they are making to become more nimble, agile, faster innovation. some showcasing to analysts today. we are talking about all of this with david taylor, the ceo in an exclusive interview, airing all day on cnbc including squawk on the street and right here on "closing bell," wifrd.

couldn't let do you a whole show without me today. >> i'm delighted about that, sarah. fantastic stuff. we look forward to the interview tomorrow david taylor, p and g ceo with the strategic announcements there as well as no doubt much more updates on how the relationship is going with mr. pelts. shares of tesla on the news the company chose a new chairman what we no about her and the changes she could kema coming up we're back in a couple of minutes.

disney is trading higher after reporting earnings earlier this hour. mike santoli will join ups with his take on whether traditional media companies should gain background against the modern digital media companies.

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calling schwab. we don't have a satisfaction guarantee, but we do have tecky! i'm tecky. i ca... are you getting low costs and award-winning wealth management? if not, talk to schwab. ♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business. welcome back mike santoli is tracking a surprising trend in the media stocks mike what are you seeing. >> you know, morgan hopefully the chart shows up here. what it shows is traditional media stocks -- we just heard

from disney. obviously disney is an outperformer in shows disney, comcast cbs three traditional media companies alongside netflix. alphabet, google parent and this is dated from september 20th of this year. that was the peak of s&p 500 in the decline in the overall market you see the traditional media is not only outperforming the market but up. disney up 7% comcast 2.6. cbs up 3.5% at a time when the s&p 500 down five% and fang stocks all down more than 6%. obviously reverses a trend in the prior couple days. what's going on? the high flying stocks, the high multiple stocks are hit hardest. social media but also there is a return to more stable, higher quality business models that probably includes traditional media the other thing happening around the same time of the market peak is s&p reshuffled the sector mix. and they bumbled traditional

media alongside social media in a new communications services sector along with telecom. a lot of people did think that could have caused a bump in traditional media stocks because facebook and google are suj huge in the new sector and it would by diversefy indication purposes behoove a investor to dabl in the smaller members. >> interesting to see that disney didn't have a pullback during october something to note. just coming back to in sort of difference in the performance of the two whether on this time frame or the start of the year where it's the opposite. the likes of disney and netflix analysts do not think of them the same when valuing them. >> no. >> along away from that moment. >> netflix is 100 times next year's earning disney at 15 you're right netflix is a hypergrowth stock, needs to raise more capital, in a different category for now versus the others which have the legacy businesses. >> okay. mike thanks very much. and our thanks to morgan as well for joipg us today

great to have you with us. >> great to be here. >> more to come, including the disney earnings call we have the highlights of that throughout on cnbc how did the show before us end who through to us tyler mathen >> is who picking up next. >> tyler math sfloon because "closing bell" is done "fast money" starts now. and thank you guys "fast money" starts now live from the nasdaq market site overlooking times square i'm tyler mathisen in for melissa lee. i'm not in kansas. pete narj. brian kelly, dan nathan appear guy dmaum dma yup process we are all over the big movers. drop box active vision all reporting earnings moments ago the conference calls under way and we bring ut the latest details on that. and tom rogers is here to give us his reaction to disney earnings and what it means for the media space and the future of