it >> but the dow is up almost 3% >> yes >> it is >> it has been a decent trade. can they find any kind of footing? it has been tough for these guys right now. >> thanks for watching power lunch. >> closing bell right now. happy friday welcome to the closing bell at the snonew york stock exchange. we are winding out a pretty solid earnings season. we will round up all of the factors pressuring stocks plus the ceo speaking out in a rare interview about the china trade

war an exclusive interview after his stock took a low on the guidance the closing bell begins right now. good afternoon very warm welcome to the closing bell welcome back great to have you with us. >> happy friday. >> let's get to that selloff that we mentioned. it is a four day winning streak and nasdaq on pace to close in the red for a second straight day. we are off the session lows. nasdaq is in danger of closing lower for the week tech sector continues to weigh on the market. reporters are all over the red flags for investors. we have kate rogers there. following the ongoing oil slide. steve looks at new concerns

about inflation. kate, let's start with you >> it is among the three major averages currently down about 1.8% it is on the verge of going negative for week. the russell 2000 down by more than 2%. it is also negative. down under half a percent. the biggest movers percentage wise activision and netflix. qurate retail and monster and twenty-first century fox are some of the names. steep losses facebook, apple amazon all down around 2 to 2.5% tech stocks including apple amazon, google, facebook, netflix all having the biggest

negative point impact today. back to you. >> thanks for that crude oil slipped deeper today we have more on what's behind that particular plunge >> good afternoon. >> we finished over $60 a barrel we fell under that level today it is significant from a technical standpoint oil is down for the week, for the week, for the year wiped out all of the gains oils dragging the energy stocks lower too. both in the red. let's take a step back for the second chlgt most of it was a steady climb higher. we started around $60 and got as high as around 75. the last drop wiped everything out. the thought is that the market was rebalancing. producers and everyone was adjusting to find this

equalibrium. the u.s. kept steadily pumping here we are again where we started the year, wondering how low will we go folks i'm speaking to echoing the sentiment. it might not last as quickly but the math doesn't make sense. until it does you're going have a problem, guys. >> thank you, jackie i'm sure we are talking a lot more about this in the weeks to come the feds keeping rates unchanged. new inflation date to could provide clues. steve joins us now with those details. >> a hotter than expected report this morning on wholesale prices does it have a brewing inflation problem? we have tariffs and faster economic growths

the government reported a 0.6% rise compared to a month ago it is twice what was expected. it is fuelled by wholesale goods and in foods food commodity prices finally turned higher. farmers were strulging on their products by china. together with yesterday's fed policy statement which noted that strong economic growth and inflation being near the 2% goal markets are trading with more certainty and at least two hikes coming next year december and 87% probability. first hike in 2019 at 57% probability and then the second hike in september, 55% probability. when companies face higher prices they have three choices they can reduce their profits, pass along the cost to consumers. we'll get a feel for how much of

those prices are being passed along to consumers we'll get that next wednesday. keep an eye on that one. >> we certainly will the federal reserve will be as well thank you to all of our reporters. let's continue this discussion in the closing bell exchange joining us is chris johnson. good afternoon to you all. if i start with you significant selling today. for week as a whole we are starring at a week >> it is until we get clarity on what it looks like you'll have choppy markets i will always go back especially at this time of year and remember that november is always the third strongest month of year and december is always the strongest month of the year. i expect a lot of these issues start to have charity and we'll trade higher into new year you'll sessions like this today. when you get hotter data and

next week we have really important economic data that will come out around consumer prices, industrial prices and those will be tea leaves that all traders and investors will look at to see if it will move at a quicker pace. >> what is the bond market telling us right now >> well, you know, if you look at yesterday's closes basically every maturity made new cycle highs whether it is ten years in the short end, seven years on the ten year we have eased off today in a bias i think it is normal leading up to and out of a fed meeting whether there was an action or not. my feeling is fixed income, treasury markets, rates being so firm is telling us that all things considered most likely will it keep on moving because

of the flat name being so firm the long end is dealing with things and the notion that the adjustment process to remove liquidity will not necessary by be palatable but the treasure are remarket is firm knowing that it seems to be able to handle it. the way it rebounded from tuesday night's election lows. it is not only closing up on the day but on the week. it is awfully close to the best level since june of 2017 >> what's your take as to not just the market levels for the week but individual sector and stock performances are we seeing the typical correlations you expect? >> no. we are seeing correlations remaining low. steve nailed it with the seasonality. december is as strong. if you look back it's a volatility month every year.

we are going by the book but stocks are not kind of regrouping here and starts -- starting to go up. i know people have been beating up stock makers but i not only see correlations at the broad index level, going down but also at the sector levels, when you look at some of those sectors, whether it's basic materials, they are also ton the decline there is a concern there there is one thing if i can point at one indicator is the russell 2000. i refer to this as the risk on, risk off trade when we see it leave the s&p higher it is a great bull market we saw it taper off. it has not regained any of that strength we need investors to get an appetite for risk again. i think it's going to be individual stocks pulling

everything up not just the market pulling all of the individuals up >> i would add transports to that list. are they telling us something about the economy into next year >> if you consider that the russell 2000 get 90% of revenue and income so if we have a higher rate environment they will not pass those price increases. it will impact their bottom line that's what you're seeing here the market is anticipating they will be pinched a little bit as this rate environment because they will not pass it onto the end consumer if we have more money in our markets i don't think it will translate in our one for one match on the rates you'll have to pay for higher borrowing costs. >> have a great weekend. let's get to a market flash on campbell soup now >> hey

we are seeing movement here from campbell soup that it will sell off snacks and cookies here. it has had interest here the companies are not commenting right now. it is all part of an atoefrpt sway some of the investors which have pushed for a sale, said it would be satisfied with a breakup as well. it is trying to pay down some of the $6.2 billion at this point on news that it had put it up for sale or at least begun the process for doing so we saw a move that campbell soup jumped up about 3.2% the stock is up about 1.81%. >> thanks so much for that still ahead on the closing bell, much more on this friday we'll discuss what's driving the market lower and where opportunities remain bank of america tells us how

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we are down 186 on the dow there are the winners on the dow. disney is up yesterday the dow is up and it has been an up and down week >> looking forward to that >> finishing lower for the tenth straight day for the longest losing streak since 1984 what would it take joining us now francisco blanch from bank of america global research thanks for joining us today. >> thank you for having me

zblp some have been quite negative remember, we just got the news ton waivers. in the end the u.s. administration went from zero to handing out eight country waivers. it also added to market bare sentiment. we have seen russia and scratching record level in their own right

>> remember, in the prior segment you were talk act the u.s. dollar getting stronger my biggest concern here is what happens to the u.s., china trade relationship and how that effects the exchange rate. if we see the chinese currency coming off as the u.s. dollar over the next couple of months because there's no trade deal and we go into an automatic 25% tariff it was a much weaker currency it may drag the complex forward through the channel. >> so that's my big concern at the moment sorry. go ahead >> go ahead. >> it is really, you know, we have seen turkey, argentina,

south africa and you pointed out the fed keeps hiking rates the data suggests the feds will keep hiking. it is on mergeimmerging markets. in the developed world we don't really need as many commodities. we much more efficient in as much as merging markets suffer from higher interest rates in the u.s. it could negatively demand that as well >> francisco, i realize crude prices dropped pretty quickly in the last couple of weeks i feel like it wasn't that long ago they said it is essentially the sweet spot consumers don't feel that much of a pinch at the pump has that changed >> we continued to do that it is a 50 to $70 commodity.

if we drop below 50 we are not making enough of it. we are probably making way too much but there can be instances where for example the situation where venezuela and more recently iran sanctions where prices rise. in the long run it you get a lot of that in that band of prices that's what we are getting right now. we are getting the supply response right now >> what would be a blow in terms of gdp what is sort of priced in? is it something eeszly achievable >> somewhere in the range of 3.6; 3.7, 3.8% the most important thing here is what happens to china and the rest of the immerging markets.

if it drops it could be an issue for oil. i am most worried about a very sharp discoloration. wlaps is all of this turmoil coupled with high interest rates negatively impacting and preventing the government from responding as it has in the past to those growth pressures. that's the big issue but beyond that i mean the man is only slowing down moderately. >> thanks for joining us great to see you this friday afternoon. he is is the head of global commodity research turning to china in fact where new comments from white house trade adviser has those for us in washington hey. >> fighting words from white house trade adviser. not just against china but also against wallstreet

there will be a stench because it will have that of wall street i would urge these unpaid foreign agents to stand down on this issue >> one of the chief complaints of the chinese during the on again off again talks is that they don't really know who speaks for the president we had seen a thawing of relations today. you can see that in the press conference that secretary of state and defense secretary had high level talks on national

security today with the chinese here in d.c. they touched on trade as well. one warning that a trade war hurts both sides this is why it is so critical for president trump to sit down at the g20 together to clear the air. back over to you ahead we will hear from one of those multi-national ceos proctor and gamble's david taylor >> if it destroyed in american brands i would love to see this be resolved i think it's good for the economy and good for constructive resolution of this. it's not good. 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,

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welcome back to the closing bell with 35 minutes to go the dow is down. triple digits off the low. got about 144 point. s&p and nasdaq are lower it is down 1.5%. >> we should mention the loud round of applause. we are joined by a number of

veterans he will be ringing the closing bell today in honor of veterans day. it is being represented here today by these attendees. >> happy birthday to the marines. >> absolutely. we'll continue to doubt for the next few minutes it will be revisited again when the cake is cut in about five minutes time and when we get to the close for the bell.

>> it is to respond to the changing consumer to get innovation happening faster, to get decision making happening more at a brand level. but beyond that i did have a chance to ask david tailor on the top of everyone's mind start off by asking him whether he was seeing any signs of a slow down in china >> china, with all of the things i heard and read about china it is still -- >> you don't get -- >> you don't see a slow down

there? >> for or categories i see many high to single digits. i find the consumers respond very well to innovation. one of our strongest brands has an outstanding service rewarding us with double digit growth. oh lay has been growing double digits for many quarters >> are you feeling the impact at a all on the trade war >> as the tariffs go to our suppliers i do expect it will play through in input costs in

some way it's not a huge impact it is a much bigger impact is foreign exchange by a wide margin than tariffs today. it is because a number of the products we sell in china we make -- we sell in canada we make in the u.s. so that one is hitting a little bit. in context of our total business it is not the biggest barrier i worry about. >> do you have to look and see how much product is made in china? >> most of what we sell in china we make in china almost 90% is made in china. in general the principal is with more daily use products you want to put the manufacturing as close as possible. in big markets we are able to do that a vast majority of what consumers buy in the u.s. we make here. we do not import much product into the u.s vast majority is made here and

the same the true in china >> does it impact the way it is in future. it is hard to see where this trade war is going >> it is hard to see i worry most about if it destroyed consumers confidence in american brands i have not seen that as long as you're producing in china, and most of our brands do, then the tariffs don't have a huge impact. i would love to see that this be resolved i think it would be good for our country, good for china for a constructive resolution of this. our company believes in free and open trade we believe it raises all boats our strategy is where we can produce it where producers will buy it that way you minimize the impact you have if something happens between two countries. so it is -- while it is a concern we are taking the actions that minimize the impact of our country

>> do you think it will change how it all ends up >> not in big way. i think from everything we have seen from our categories and our businesses i don't think it is going to dramatically change any of the key factors, the growth in the economy, generally what you see is relatively low unemployment, generally strong consumer confidence. unless something disrupts that and having a split congress you would say you saw the market react positively to it we have other own political views from a business standpoint. the u.s. is a very constructive place to be. it is one and we continue to want to put more energy into accelerating the growth in the u.s. >> and clearly you could see david talking a lot about the focus on the product that's really what they have been talking about in the last 24 hours for their analysts and

investor day here. that is a lot of factors externally they can't control when they do 60% of its business the rising commodity doses which they are planning on focusing on they are planning on turning around their business. this new stuff they announced to reorganize and get businesses moving faster, that's really what the story is they are trying to tell in a clearly rough environment. they are trying to think about big issues like trade and macro economy. >> the comments on china absolutely fascinating mr. taylor knows the topic in that area very well. is the message that provided manufacture in china and not hit by trade issues really at all.

>> it is into china as opposed to the opposite. it is not an import. it's not included on any list. he was saying in consumer goods his business, most of what is produced is produced locally it is why canada does more they do get -- they do have to have the tariff impact he was fairly insulated on that front. that would exclude big consumer companies. a lot of them. the food and beverage companies where it pays. now it's paying more than ever to have local production on the ground it is to have it as close as you possibly can it would backfire to get production into this country it is surely incentivizes them to keep the china products

there. it you can tell he is worried and places like china. i thought it was a telling comment. >> has it been nice to be home how many times have you got ice cream? >> there was one last night and one on the way to the airport after this always great to be home in cincinnati i'm glad we have the skyline clear. you can see the two towers behind me. that's the p and g towers. >> and the airport in northern kentucky >> from your past descriptions i could guess it would be -- >> thank you very much >> see you back here >> i'll take you back home >> you could bring me the ice cream. >> you'll have to come here.

>> it probably melts it's not close enough. all right. time for a cnbc news update. >> hi. here is what's happening right now with several massive fires burning. they say they are competing for resources. the fire spreading to los angeles county growing to more than 10,000 angecres heading for the pacific ocean. >> we put our best plant forward in a life preservation mode to get people out of harm's way when you have 40, 50, 60 miles per hour winds blowing fire at your heels the importance is to get people out of harm's way and get them to safety >> about 500 central american migrants have left the caravan now. they are heading to embark on the most dangerous leg of the journey. the group leaves behind thousands more who say they will wait at least another day before resuming theirtrack.

>> i don't know what is happening. >>. >> is this something he should be celebrating or criticizing? >> i will say celebrating. >> it is genetically modified in a good way maybe we can get to the point we can free the pandas. >> free them >> yeah. it would be better if the population was growing organically. >> very cute >> thank you very much >> thank you >> you're welcome. let's dig deeper looks at the big moveres at the

new york stock exclang let's start with you >> it has been the big wave. tariff concerns, they weigh on both of them st staples have been long on both of them. they both hit all time highs insurers and hospitals are the best gainers this week post election making health care of the year's leader once again sector's best week since the 2016 election since the divided congress is good for the industry back over to you >> thank you we'll go over the kate rogers. >> we are down here by over 1.5% it is the biggest one day losses

in the month of november it is also the nasdaq's second negative day we'll see you in a few moments netflix is falling more than 4%. apple microsoft, google, facebook all leading the losses lower today. >> thank you both very much for that summary of where we stand with 22 minutes left until the close. we'll keep a close eye on the markets. we are higher for the week still to come have been a bright spot and taking a turn lower today on the back of weak guidance the company ceo will join us exclusively to join that

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individual market movers today. going overseas to china. the biggest bank in china, the industrial and commercial bank icbc down 2.7% today why? because the chairman, sort of the bank regulate nor in china d at least one-third of new loans moving forward could move to private companying dictating how the banks need to lend because of fears of a slow down. they target in three years for 50%. the reason i want to highlight this is it is nprecedented it

height lights the pain they have been feeling icbc down 15% dwreyear to date on the flip side i want to highlight because it is sort of an olive branch trading sessions could get better here. they have won a license to clear card payments. it is a sign that tensions could

improve. >> ge shares down about 4% right now. they are off their lows of the day down about 5% i would say. jp morgan cut it arguing that it is $100 billion in liabilities, free cash flow even after 95% dividend cut basically thinks the stocks going lower it is earlier today and i think the sentiment there is this research is overblown. they point you $20 billion and

$10 billion, you know, in proceeds from that they say they have a lot of levers to pull >> yeah. i mean interesting to issue such an avert statement it's not like it was totally revolutionary. you can understand why when you see the share price move >> yeah. lowest share price since march 2009 up next we'll dig into this and what it says about the help of the market. stay tuned

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goldman sachs now down a full 3%. that's a ten day chart we have got for you. you can see the last two days significant selling. that's one of the reasons for biggest selling over the last couple of days it has outperformed the index. it is already related to issues around this malaysian

investigation it is clearly in the midst of negative news headlines getting selling. light volume this afternoon. selling quite significantly worse than the bank stocks today. bank stocks down0.5% >> they remain very high profile laggers. it will need something to watch. some we are paying attention to because they could be about

market sentiment or direction. it is the smh, semi conductor. that ticker, you can see here over the course of this past week we are still a little bit ton negative side of things. if we can get more gains it might change if you look over the course of the past week we are seeing maybe there's a roll overhappening right now. it will be one to watch. also watching what's happening with other parts like the internet stocks. we mentioned communication services it will be one to keep an eye on as well. those particular funds are showing signs of weakness there. we are down about 2% there one other place to keep an eye on is the builders if you're looking at positivity out of this the u.s. home construction, itb is only down half a percent it is one of those that has been hit hard whether or not it shows signs of life it could be a sign of the overall direction.

>> thanks for that we have nine minutes left of trade. we are well off the lows it is a rally in the last half an hour. dow is down 169 points lows of the day down 308 points. so we are down 0.7% on the dow juniper net work falling revenue guide ans. ate company's ceo will tell us wh's behind that don't go any where the house not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59.

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welcome back to closing bell we have details. it has raised about $500 million this company is valued at more than $7 billion privately. it would come on the heels setting bio tech it is a company called aloe gene it is a very interesting one

i want to draw your attention to another stock move we are seeing 20% drop back over to you >> thanks very much for that coming up next we'll be back with the closing count down less than five minutes less for trade for the week >> we'll look at one space that could see a boost to the bottom line you're watching cnbc first in business worldwide 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 across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim.

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if you made more money than they do. don't get mad at your well-liked neighbors. get e*trade. >> welcome back to the closing bell nothing really to celebrate if we look at the s & p 500 red all day long it certainly looks better than it could have looked a couple of hours ago. we rallied into the close. it is down about 0.8%. you can see the nasdaq lags down more than 1% again, all of these indexes have improved into the close in terms of the sectors today it has been a likely of tech and communication services if we look at the s & p 500 it is important to note we have gains. gains for all of the major

indexes. s&p up over 2% for the week. dow is up for the week just a couple of other week long stories today. the dollar for the week has had a nice little bounce it is positive for the week. up 0.4 or 0.5% for the week. oil very much low. it is down 1% today. down nearly 50% for week as the whole. take a look. the small caps have really lagged throughout that they are going to be negative for the week it is a concerning problem we'll have that in the market. can't really get around that

>> it has been hard to pick that as well this week. next week there goes the bell. ringing the bell here on veteran's day. the u.s. armed forces here the nasdaq is glamour magazine we are down 204 points off the lows a little bit of softness there it does it for the first half of closing bell back to you. welcome to the closingbell

first negative close on the dow. still higher up 2.8% similar story for the s&p and nasdaq s&p closing down at 2781 the nasdaq down at 7406. the russell finishing the day lower. all of the major indexes up on the week shares of juniper network. we'll talk to the ceo about the company strategy coming up joining us to talk about the market day finance professor ibm, the biggest lagger goldman sachs. trip adviser was the big winner for the week cody was the laggard there mike, how would you characterize the week we had midterm leelections.

>> it is interesting it shows the market is in a bit of a tricky spot it is about a week before election day today and yesterday the market kind of stopped exactly where you plight hamight have thought. now we pulled back a little more than 1% from those levels. it seems as if these patterns would be the same if it was for forming a good bottom or if, you know, we are still in this stressed environment it seems we haven't really dispensed with higher treasury yields and kind of questions about the longevity of the earnings booth >> when you assess the sort of technicals is it going to be hard to meaningfully shake off the negativity we have had in the last five or six weeks >> it has ban lot more than we

have seen in the previous selloffs, the nasdaq, mid-cap index, transports are all sharply below the 200 day moving average. i think what happened here is you had a lot of people rushing out of these names at once this wasn't big enough the moves there were more exaggerated. now it is where do we go from here we have inflation to worry about. we have trade wars to be concerned about. it could soften the growth for next year. the good news about that is the fed won't seem like that if you start to see the economy start to slow down i do think we will be bouncing around a little bit as the market struggles to find new things which it has not done yet. >> where do we go from here with stocks >> well, i think the fed on

thursday by saying nothing actually said it all i mean if they have any thought of pausing in december they would begin to make noises now they made no such noises another point increase into a situation potential, trade disripdi disruptions. what i think is really troubling the market, you know, the long bond keeps on tickling up to 3.75 like it will breakthrough and then it catches a bid when we get a sell off but rising yields i think are the biggest immediate kbrat threat. >> is it responding to the fed meeting or is it really market levels whether stocks have

pulled back too much or not? >> i don't know that it is responding directly to either fed expectations or the m midterms we have small pockets that have policy implications. for the most part it is amazing love-hate relationship that traders have with the tech stocks have been on display. nasdaq is barely up for the week it was up 2.6% one day on wednesday. that to me is much more the market being in the sway of all of theseflows.

>> okay. well, it is friday afternoon >> what is it? >> well, the expectations are -- >> well, the expectations around g20, are they too great? are the markets expecting too much here? >> i think the markets responded very favorably to the tweet about a week and a half ago. they were quick to go through the idea that we will get a trade deal done at g20 maybe they will have meaningful conversations. it seems like we are working our way around not institutes anymore tariffs rather than fixing the problems. unless they get that technology transfor parks done we are not going have a trade deal. we could be talking about this into the first quarter so g20, maybe we'll get headlines. we have seen the markets go back and forth on these things very very quickly i don't think you can trade on those. >> i need to issue a correction.

it is in argentina, not brazil >> i did google those. >> yeah. >> so all sorts of option. you can tell it's a friday afternoon. so back to the serious stuff you already outlined some of the sentiment factors for why you think markets might struggle with their momentum. what about the evaluations how are they relative to the rest of the world? >> well, they are a little expensive. the rest of the world is unbelievably cheap in a low interest rate world which we are still in despite the fact that the fed is raising rates you know, i said maybe we are 17 times earnings wow. i think from a long run it is reallyattractive

nasdaq is still up more than any other dwreer date but certainly that gap has surgeonly narrowed. long term investors, good values are out there. short term investors, there lab lotover trading in and out and a lot of choppiness i think. >> can the markets move higher if tech is no longer in a leadership position? >> no. absolutely we can definitely rotate from one to theother.

>> when you have a gift like this it will get a choppiness going forward. listen, the political environment the midterms will cause some sort of getting together it certainly doesn't look like that if anything it is more challenged on what it will do with the house going to the democrats. >> now it's looking more like 53 a majority of 30 for the democrats. beginning to fill their oats a little bit more.

>> thank you very much for joining us this afternoon. >> it is coming off the back disney up and netflix down 5%. disney did announce fmore detais called disney plus >> as well all know nearly revealed it. i was excited. >> jim said netflix has no reason to be quaking in its boots. the reaction today is negative >> it is you have to keep in mind pretty much all got hit hard today.

reacting to something not just about disney but i do think it gives reason to wonder if netflix is going to kind of steal all of the oxygen dm this area >> for a long time what's the value for 100 million in a world where everyone is going in their direction? i think disney, the response there is good results in general. the studio has momentum. you can look to things besides the direct consumer app to say you have reasons that the business is doing pretty well. also i think it's funny. there are going to be noisy financials it is for the new technology.

zb >> consumers have a lot of choices. it will mean lot of margin pressure you better not be selling for triple digit multiples i think it will be challenging for netflix to define itself moving forward >> we talk about it it's not just in amazon prime it is in other parts of the business. >> it is sticking to dramatic documentaries. you can never say never. the reason was no commercials.

i think that really netflix will see how much runway they have. some level of subscribers it really does scale. if they double it from here over a few years we are not talking about that >>. >> they are putting so much money into investing i would imagine it is playing a role in all of this as well. >> absolutely. >> all right another bad day for ge that stock closed lower as well today after hitting a multi-year low. j.p. morgan cut at $6 a share. ge's results were worse than expected on almost all fronts. now, i think folks that i have spoken to at ge would tell you this analysis is overblown and that actually they are moving very swiftly they have a lot of levers to pull in terms of trying to turn

this company around. >> it is interesting there would be this much kind of room. they are looking at filings but kind of inferring exactly what it means for liabilities that are going to be coming up on the financials side of the business and all of the rest of it. so the stock action is kind of breathtaking in itself you have this kind of slow motion give up of investors ton story. you have to keep many mind, new ceo. >> it is to put a price target on this. i have a lot of calls on ge. investors need to know if you're up 500 on the take that stock isn't ready to go higher yet you might think it is worth $10. as an investor i don't want to be the only guy out there buying

the stock. i want to see other people start to come into the stock first i think it will be a while >> i have to be -- when you look at the year to date share price it is down sharply despite a number of different moments in the last year where it could have found a bottom, a lot of those moments in the last month as well. >> so i think there's a sense out there people don't want to stick around to see what might come out i don't know that there's necessarily a specific fear that people are saying there's something that -- >> i think the -- >> yeah. >> i think it is in focus -- >> yeah. >> especially after what we saw last year and we are expecting a

bigger strategy update from the ceo early next year. >> well, one of the challenges ge is going to have is what all of them have that is that the dollar is very very strong. it will weigh on earnings for all of them moving forward >> thanks so much for joining us >> great to see you. we have an earnings alert. leslie is the reporter >> hey that's right a miss on the top line for athenahealth it mixed earnings by $330 million share is down about 1.1% on this news perhaps they are not moving as much some times it takes a little bit of time for them to factor it in to match what the company is going to project athena health beat estimates

regards $1.08 compared with $1 that the street was estimating back over to you >> thank you very much for that. now, as oil pushes further into bare market territory is there good news for energy investors? seeing a bounce as prices plunge in the refining space. >> and we are keeping an eye on the tobacco industry a new report about declining smoking rates in america we'll explain what it means for big tobacco stocks ahead you can reach out to the show on twitter, facebook or send us an e-mail closing bell is back after the break. yep, td ameritrade's got. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees.

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by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. >> wiping out all of the gains for the year some energy companies are taking advantage of the price slump >> joining us now is kyle

cooper the global oil market is still fundamentally under supply this is the second year in a row that global inventories are drawing down our team's forecast they will continue to draw into next year and even 2020. right now is refinery turn around season. that is why it has not been great. >> what about a demand side? we could do that >> very possible like we said, we have been down ten days in a row. that is back to 2000 we have previously the record consecutive down streak was nine days in a row. this is unprecedented and certainly due if abounce

>> here is the little secret they really do not trade much on the spot oil price which is what most people track daily. they trade with the futures curve and what's interesting is, you know, the spot price has been coming down the futures curve has actually not moved verymuch >> so the spot price is really

not the end all and be all >> so in this environment is it the place you want to be sit a lot of risk and gasoline demand does rise into the end of the year the supply is also going to be increasing significantly as well the u.s. refinery is really driven by gasoline it has been a little weak. unless it really tanks i like a broader exposure to petroleum. it is being plastics and chemicals. while there is some risk on the production side i actually like the exposure to the petroleum and to the overall market which is still quite strong. >> should we be talking more about infrastructure in terms of the pipeline that was put on

hold bay federal court today and also given the fact that you do have prices that are depressed both there west texas and canada because of issues getting that oil out of the oil patch >> the u.s. and canada definitely have this in common the problems in western canada are much longer term in nature they actually have their own court ruling about a different project earlier in the year which got blocked. even aside from that, you you know, that whole western canada bayson is really underpiped. so we have seen prices literally at all time lows for western canadian heavy crude less than $20 a barrel you know, that is going to, you

know, potentially last for years to come. >> okay. thanks very much for joining us. today is the second anniversary of the start of the 2016 post election rally one sector has seen its shares of ups and downs it could be ready for a bounce back mike has that. very exciting one. >> you said that almost car sarcastically. >> fourth quarter guidance we'lha tl vehe ceo live coming up don't go any where

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>> welcome back. today marks the second anniversary at the start of the post lex rally bank stocks have been on quite a journey. he is going to talk us through the details. >> it has been a very eventful round trip it is the index to the s and p 500. when it is above 100 it means it is outperforming here of course was the election in 2016. it went vertical right there it was the trump trade banks renation plays, be it expectations for higher growth and all of the rest of it. it worked for a few months this is early 2017

we chopped lower bond deals went lower. here we had another great run. the relative highs happened earlier this year. that's when bond yields made new highs. now what's fast naticinating ise break even in terms of big cap banks. despite yields have continued higher and going a few more times obviously they are responding to other things besides yields >> yeah. and the yield picture has improved you would certainly say today it is not worse than it was two years later. there are all sorts of other factors that the rates outlook is fine. regulation is not going to get worse from here. capital capitally liquidity is very good historically they trade at 75% and they are below that now. all of these factors and

particularly it suggests this is a buying opportunity in long term >> yeah. certainly if you believe the economic cycle has a ways to go and credit is not going to become a concern and loan growth can stay okay then yes that would probably be the case. >> the interesting thing is almost stock performance you seen more as well. it was much more of a pact for the past 18 mobnths >> and by the way, the overall market is up maybe 25 to 30% since the election it is not as if they stood still. they have not been a way to do that >> thanks very much. mike will move back to the set now. let's take a look at how we finished the dayon wall street

we were lower. but we were off of the session lows [ no audio ] >> the company saying it received a nonbinding offer from nascar for $42 a share it appears to be a suspected take private being the primary owners [ no audio ] >> back to you >> thanks for that time now for an update >> hi. here is what's happening right

now. five people have died in the campfire in northern california. victims were found in vehicles in california. tens of thousands were forced to evacuate a man accusedover sending mail bombs was indicted on additional charges. now he is facing 30 counts compare today five when he was arrested last month. he is being held without bond in a jail healthcare dot gof used by brokers last month it allowed inappropriate of about 75,000 people on marketplace applications a jamaica boeing at the main international airport injuring several people the plane reported a hydraulic failure after taking off it returned after 20 minutes the crew was unable to stop that

aircraft when it landed. scary moments. back to you. >> scary indeed. thank you. public outrage may be catching up with vaping. we have word the they are ready to take action against vaping and e-cigarettes the ceo says sales could dampen a sunny fourth quarter. we'll talk to them next. age thi, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

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welcome back juniper after issuing weak three year revenue guidance. it is down 5.5%. it is despite the tech selloff it has been an outperformer there. up 8% compared to the sector which is down 5 pk joining us now is ronnie here at post 9 thanks for joining us. >> glad to be here >> how much of this is the trump tariffs and impact on your company? >> i think juniper is executing really well. there will be almosts that are

growing and elements that will be in decline. it is a classic technology transition you're asking about the tariffs. it is nothing that is specific to juniper we are working to mitigate the impact of the tariffs in the most effective ways possible so far i think the impact has been limited you'll have to sort of watch this going forward >> in terms of that three year guidance are the biggest tech companies that are lowering their level we are benefitting from that we reported year over year growth, an 8% growth in the security states. they are being a bit cautious as

head of what will be a big spin cycle. providers will be a gross opportunity in the future. i think i'm optimistic it will grow this year >> what does it mean for your business drivers >> so the cloud businesses are growing at 50% year over year. you guys see the reports blowing it out of the park every quarter. we are a big part of their network. that business growth results in huge demands on their network. we are powering those. so in order to help them continue to meet with the capacity requirements we have to offer them newer and newer products with newer capabilities better efficiency we moved which has a certain cost profile to a better cost

profile. it has impacted us this year >> i want to go back to telling us about that waiting that surprised to their given the fact we keep hearing about this big race and pulling it between the u.s. and china >> yes it is a great question where the focus is is in the radioactive network. it comes into our homes. as those deployments happen what will happen is that it will result in more capacity than needs to be carried through the internet and through the global network. that's where juniper comes in. eventually it will result in more capacity requirements.

>> i enjoyed working with her when i was at june peer. >> so she kept you in check did she? >> she kept a lot of us in check at juniper >> thank you great to have you with us. ceo of juniper network we have some breaking news on starbucks founder we have the details. >> yeah. that's right this is a story about brian schwartz it is forming a team of pr consultants around him on his payroll who can help him with his book launch and who could offer spots on a president presidential -- possible presidential bid the person who is really the key person to focus on is steve

schmit he has been in a high profile clash with president trump and left the republican party in order to pro test president trump. >> we see this going on where somebody puts out a book that lays out their political philosophy it may be happening here and may not be howard schultz. >> i guess it was in the works a lot of people expected he would get to the point which he hasn't done yet. >> yeah. how impressed would it be to have two political outsiders faced off against each other two billionaires as well

>> i think it proves you don't have to to be a traditional candidate anymore. i think being a traditional candidate might get in your way. traditional senator speaks and that's not what the public was in the mood for. the question is what will they be until mood for in 2020? they are saying i can do that. >> this can get really interesting. thank you. >> you bet it's ban tough year for the tobacco stock. they report smoking has hit the lowest point in recorded history. with new restrictions on vaping is that going to come ckba that's coming up a bad sign for smartphone makers we'll break that down next they didn't work for me. i didn't think anything was going to work for me until i tried chantix.

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it could spell trouble for smartphones. hey. >> well, skyworks got crushed today. investors investors disappointed by the first quarter guidance it was in the alone. check it out it tracks the chips also finishing in the red today for skyworks part of the prison coming from weakness in smart

phones it generates most of the revenue from selling radio frequency which are used in smart phones made by companies like apple and sam su samsung. so it is into the high end smart phone market from the skyworks report i checked in who covers the name he says it really confirmed what investors already knew, that high-end smart phone units are under pressure apple told us the latest earnings report that iphone earnings were flat it did rise nearly 30% he says he remains and points to catalyst ahead it is in the internet of things. he tells me he seconds that pointing into evaluation back to you. >> thank you it is getting hammered across

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stocks about to go up in smoke. smoking rates are falling to record lows in the u.s it is down 67% from 1965

the top names phillip morris pulled down double dingits so fa this year. >> it is planning limit sale o vape cigs. jordan wahl drip manages the vice fund. >> thank you for having me. >> what does this mean for tobacco stocks because for so many years the smoking rates have come down for so many years. but the absolute number hadn't changed. and thus these were defensive stocks and because of the dividend is this changing now. >> i don't think so. the trend we have been see something ongoing. we have seen a dawnward trend. this is a record low as far as percentage but this is something we have been seeing since the early 90s, the rate of decline. overall tobacco usage is still there. the companies have strong revenues earnings are still stable. and the dividend should still be there for us in the long-term.

>> one of the other arguments in the last decade of why the stocks were perhaps a little bit protected was growing usage in emerging markets what about the emergence of the vaping trend toes that mean in et em young would be smokers are skipping cigarettes altogether and it misses a generation. >> i don't think so. when you talk about vaping in particular, it has change the way youth smoke is happening in this country in particular the reason the fda is cracking down is because of the trend there. if you look at 2011 teens smoked pat a rate of 15.8%. dropping to 7.5% over the last -- from 2011 to 2017. that's very positive from the fda perspective. over the same period vaping went from 1.5% to 11.5% all the gains on the cigarette side were lost on the vaping

side the fda is taking action against videotaping, targeted to companies like juul. >> one cht things that has helped out the industry and kept people bullish on the stocks is the pricing power the companies have been able to push threw obviously usage is down a lot but revenues aren't down that much just are there limits to that? do they test the limits in terms of how much people will pay. >> well, they haven't found them yet. they have raised praises the price of tobacco they are paying for has been relatively stable they're making the profit on the brands and they're passing it along to consumers. the taxes have been effective at reducing the number of smokers but the companies have been able to at least slightly increase or maintain revenues while improving the overall earning outlook. >> jordan, i have to get your thoughts more broadly on vice, and vice stocks in the fund right now. talking about tobacco. but you have cannabis there, the alcohol companies, et cetera

i guess what's been the hottest right now? where are you adding in terms of -- in erms of positions to the fund right now >> we've been adding to cannabis where we have seen the opportunity. the reason we are excited about that is basically we see a long-term trend there that cannabis is moving towards legality the last election we just had on tuesday, you had one of the biggest opponents of cannabis voted out of office in pete sessions you also had jeff sessions removed from office. from his position as ag. the overall environment looks like it's moving towards a spot where cannabis could be more acceptable as far as making a deal between republicans and democrats. we see opportunity there on a bigger picture, gaming has been knocked down quite a bit. we see a good opportunity from a value perspective. and we see continued opportunity in defense with spending increasing there. >> jordan, thank you very much for joining us this afternoon. jordan waltrip cussing the vice

fund. >> thank you very much. >> next week brings earnings om retailers names to watch next. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions.

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that's the power of &. & when this happens you'll know how to quickly react... welcome back to the "closing bell." here is what we are watching

next week on tuesday we get the nfib small business optimism for october and from tyson, home depot, the first release for survey monkey since the ipo. the cbi data will be out wednesday. important to watch in addition earnings from macy, blue apron and sysco thursday brings relevant tail for wal-mart, if n individually and nordstrom and viacom rorpts earnings on friday shaping up to be another busy week. >> among those things i think cpi, the inflation numbers, right now it's kind of a raw nerve for the market the ppi was very hot today i think we are sensitive in terms of markets to any idea the fed is sticking to the plan for next year. >> but mike on the rates picture clearly we did see rates rise yesterday. but they came back nicely today. >> in fact at a point where you think they should be coming back oil is well down

usually that kind of has an effect on muting longer term inflation expectations the yields are at the top end. in theory they should settle back and relief pressure on stocks >> also worth watching the latest brexit headlines, the latest today was that boris johnson's brother, joe johnson, the lesser known of the two, resigned but he wasn't actually a cabinet minister he was a junior minister i want not as high profile the fascinating thing on this is that despite his brother being pennsylvania high profile exiter he is a high profile remainor. he resigned from the government because he doesn't believe in theresa may's approach what it does highlight for theresa may's approach is how it's getting criticism from both sides. the ardant remainers and leaves. and that suggests how tough a tight rope she has though balance. and most people's consensus is that she will get a deal from the eu that's the easy part the harder part is selling it in

parliament for the disparity opinions the sterling well off. well off the lows in the touched in the middle of the week. 1.27 handle on the poun. but last two days pulled back including 0.7% off the news of joe johnson he is a resignation. worth focusing following that news flo as time ticks on for theresa may op for the brexit negotiations >> what do you think the family dinners look like? probably some fiery conversations. >> the whole family is very pro remain his sister, boris johnson's first sister and father apart from him i'm sure he is ostracized as he is in politicking at the moment. >> very, very quickly i want to show you a chart you can sink your teeth into this liz anne saunders et tweeted this out showing the s&p inheritically posts better returns when the mcrib is available versus when

it's not. >> what about when cnbc anchors drink a the perenya. >> it's capturing the seasonal strength of the stocks. >> mike always huss the actual answer to bring it back. thank you for joining us morgan. "fast money" begins now. >> "fast money" starts right now. live fl from the nasdaq market site over look times square. i'm melissa lee. our traders on the desk. tonight on fast, electric shock, g.e. falling 6% today as jp morgan says it's heading to $6 if you think the pain is over we tell you how to trade with limited risk plus semis slams and something happening next woke that could determine the fate of the group. we tell what you it is we start with what was shaping up to be the notify you are looking for blue skies and birds singing red october over it looked like the bull market wa