i can't remember which of the crazy najarians picked that. >> dodged another bullet in terms of ending the show here at session low though art cashin said santa, we'll have to look for him come december. >> on a milk carton. >> for now on a milk carton. thanks for watching "power lunch. "closing bell" is up next. >> courtney is not going to "closing bell." >> i'm not. >> but it starts right now >> i'm many wilfred frost. another roller coaster session here on wall street as apple enters a bear market territory we'll debate whether it's time to bale on the bellwether. and closely watching brexit across the pond as the relationship between the uk and eu hangs in the balance. we're hear from a former member of parliament who says prime minister theresa may is a traitor and needs to go. >> and i'm morgan brennan in for kelly evans. high-level trade talks taking place between the eu and uk.

we'll talk with the eu commissioner about those negotiations. and legendary media executive john malone raising concerns about hbo's future under new parent at&t. >> i'd be scratching my head. >> why he thinks hbo may have trouble standing up to the competition ahead. "closing bell" begins right now. ♪ ♪ shooting for the stars and couldn't make a killing ♪ >> good afternoon. a very warm welcome to "closing bell" and a warm welcome back to morgan brennan great to have you with us again. let's check in on the markets. another volatile day here on wall street. the dow swinging more than 560 points intraday. we're currently down 103 we're off the lows, and brexit helped turn the sentiment. >> yeah. it sunk as low as 350 points earlier in the session, but it looks like the key stories driving the market action. apple falling into bear market territory. josh lipton is following that move for us. wilfred has the latest

developments on brexit, and steve liesman has a look at inflation data york, let's start with you. >> morgan, apple we know disappointed the street with its last earnings report on november 1st, and the pressure has continued. tumbling today into what some traders define as a bear market, down 20% from its intraday all-time high back in early october. now some analysts in part have been watching apple supplier warnings for thelikes of lumentum and corning and they don't like what they are hearing, and they are cutting iphone estimates goldman, jpmorgan and guggenheim cutting their 2019 estimates guggenheim downgrading apple to neutral today, citing weaker iphone units and saying weaker selling prices won't provide enough offset in their opinion rbc takes the other side of that trade with a buy on apple telling clients that he thinks apple has levers to pull beyond

iphone unit growth as well as average selling prices and services growth and buybacks that he should continue to support eps growth longer term guys, back to you. >> josh, thank you. big developments today in the brexit negotiations capped off by theresa may's statement outside of ten downing street last hour. wil, you've been following this very closely. >> i have. after a marathon five and a half hour cabinet meetings theresa may has her ministers backing her brexit man. >> the highs choices before us were difficult, particularly in relation to the northern ireland backstop but the collective decision oe draft withdrawal agreement and the outlined political declaration. this is a decisive step which enables us to move on and finalize the deal in the days ahead. >> now the huge step that she has achieved today is that seemingly all members of her

cabinet, both remainers and leavers which the cabinet contains have backed this plan, and that's why sterling has rallied. you can see it's up half a percent on the day in what has been a pretty volatile session two is risks remain, this still has to get through parliament which is going to be harder still through cabinet. that vote can come in the next few weeks and then a more immediate wild card risk even though it's gotten through cabinet today, some severe brechtittiers in her party may be surprised and call for a vote of confidence. that's why we're only up half of 1%. >> basically what you can say is this is a victory today, but there are two more larger hurdles that remain. >> that is exactly right, a good summary. half a percent move is not that big given what this achievement could be which is suggesting whether she is home and dry from

her cabinet and we'll continue to watch overnight whether there are more calls for this plan to change at the moment, a big step forward for her. she said a decisive step towards brexit turning now to fresh inflation data out today which gave stocks a fresh boost. steve liesman back at hq with more on that. >> in line and on track and they are sufficient now to keep the fed on track with gradual rate hikes. some of the data out cpi at 0.2% and ticking back up after ticking down gasoline is leading the way at 3% used cars and trucks at 2.6. other commodities 0.5% overall oxford economics says this supports our baseline view of a well-behaved inflationary environment and gradual tightening by the fed. nothing is certain jpmorgan says a stronger dollar and weaker energy prices could mean lower prices challenging

the plans to hike. we've raising prices mentioned a lot and freight, wages, material costs, the leading reasons cited for higher inflation over at echo labs, they say we're winning against inflation, even though it's a dramatic raw material and transportation inflation and cost savings are leading to improving results. >> now, some companies, they are passing along these costs and others are boosting productivity to reduce costs on companies couldn't avoid taking hits to earnings though. morgan >> steve liesman thank you. billionaire investor steven cohen making comments saying we're definitely late cycle so at some point we'll enter a bear market, and it's going to happen in the next year and a half, maybe two. joining our "closing bell" exchange today to discuss, renee norris, principal and managing director of urban wealth management, phil camaralli, asset management strategist and

steve grasso, director of institutional sales at stewart franco and rick santelli at the cme. welcome to all of you this afternoon. phil, i'll start with you. >> yes. >> your reaction to the comment from steve cohen could we be seeing a recession on the horizon >> we agree with half of that. we do agree we're in late cycle, but bear markets are pretty rare and happen for defined reasons they happen if commodities spike or if the fed is way too aggressive or valuations are at extremes like the dotcom bubble and then they happen because of recession, right so for us recession is still not a base case. it's a tail risk, okay, but there's two risks in late cycle. the first one is the we're seeing over the past month, holding an asset that goes down in vamp the bigger risk in late cycle that only happens in late cycle is when you think a recession is going to happen over the next year, and this cycle lasts for two years, and then you're leaving a lot of money on the table, right? so we would agree with the right sizing of risk in the late

cycle. we've reduced equities we're not panicking and we're still overweight u.s. equities. >> rick, what does the data say whether we're late cycle or not? >> you know, i think it's a big debate personally, i'm not sure that assumption was accurate. there was a big time-out in the last administration regarding fiscal issues in the economy, so i think that's debatable another way to look at this would be if you look at some of the disparities in growth rates and some of the recent fundamentals whether out of japan, out of germ anything, out of europe in particular, what i notice is, and, of course, add in china, that with all the trade issues we really forget to look at the nitty-gritty some of these big export economies, their gdp and industrial production are slowing. the u.s. is holding in both categories, maybe even rising. i would think the export economies do what macy's does when they have a bunch of inventory they need to sell. they push it out the door a little cheaper i personally think the current setup is going to most likely

see inflation contained as the consumer in the u.s. is the healthiest right now globally, and i think that the metrics will hold up in that regard, and one more point i want to bring up, you know quite well, wilf, if you look at the dollar index, it all took a hit correlated inversely with what's going on on ten downing street so, of course, the dollar index will play a front row character in how that turns out. >> and steve, on that note, were found a bottom the time that theresa may came out the s&p is now flat on the session. >> yeah. so this is a -- it's a real volatile marketplace, but to phil's point, when you start to look at where we are, we could be health as far as the economics and the data points, but you kind of want to see that flushings so i think all these day-to-day market-moving headlines, out of brexit, you don't want to see that happen that i had you want to see that flush and

want to see the market test the lower less i want to seat market test the lower levels of 2532 i want to see a real flush and run into year end, but when you define a bear market, what's the definition >> down 20%. >> down 20% in two months or thereabouts, right that's basically what people look for, so we've got some more wood to chop if you're looking for a little more down side here, but i think anything is possible, right? to say we know is a lie, and we've already chopped a lot of wood, so maybe a little more before we start heading up with the market. >> renee, your thoughts on where we are in this market cycle right now and how investors should be positioning themselves >> i think that this is time for a shift. the market, as i mentioned before, is a six to 12-month forward looking beast and it's been a very volatile month, and now we have overlap into november it's telling us something, so i'm looking at moving away from the easy breezy growth stocks and starting to add more value

into portfolios, and looking at value sectors, generally when you have a lot of volatility people are going to be moving into areas that are a little bit more conservative, so now with us having rising interest rates, the strong dollar, inflation so far is contained, but i think that we are going to see that wrap up, so some areas that i want to be in right now that i think can be good areas to be in, and not to be completely out of growth, but in a growth and value portfolio, one of which is the consumer services ishareish has stocks like amazon and also travel in there. consumer discretionary has been very strong. i think that that's not going to go away, and that's a great way to play. it also dividend growth plays, too, and not just companies paying dividends, but companies with a history increasing dividends. that will help them adjust to a

rising interest rate environment and also as inflation kicks in, too, it will keep them on pace >> steve, just quickly, i want to ask you about apple what did you make of the move there? >> apple was the last soldier in our defense and the it was a growth play and when you look at that one being below the 200-day moving tra average, considerably below today, people who were late to throw in the towel say, you know, what let me see apple start to firm up before i get back into the marketplace, so i think the bears have it their way for the short term, but the bulls probably get it back before the end of the year. >> and apple is the most -- the most held stock in the world there's no stock that is more held than a. we're going to have to see some stabilization there before the sentiment changes, but, again, it's not about panicking here, it's about right sizing your risk. >> great to get all of your thoughts today renee norris, phil camparalli, steve grasso and rick santelli.

>> you said mine perfectly. >> it's been a long day, folks. we've got a news alert on at&t julia boorstin has those details. julia? >> reporter: morgan, at&t shares moving higher on comments from at&t's cfo john stevens at the morgan stanley conference, saying that 2018 earnings per share will be at the high end of the $3.50 range, reiterating guidance for 2018. stevens also saying that at&t continues to work on the resolution of its -- the department of justice appealed its suit to block the acquisition of time warner, which it has integrated now as warner media, saying they expect appeal resolution by the first quarter of 2019. we now see at&t shares up .8%. back over to you. >> julia, thank you. still ahead on the "closing bell," we're all over today's late-day market see-saw. we'll break down what's driving the moves and hear from the

chief investment officer about how to prepare your portfolio amid volatility. >> the u.s. trade commissioner holding high-level talks with representatives in washington today. she joins us exclusively after the break to talk about the progress of those negotiations we're back on "closing bell" right after this don't go anywhere. let's begin.

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i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back to the "closing bell." jacket-maker canada goose reported an earnings beat and a revenue beat the retailer was helped by more direct-to-consumer sales take a look. shares of canada goose are up about 12% right now. they were up more than 20% earlier in the trading session cold weather. >> cold weather helps. up 11.5%. congresswoman maxine waters speaking out today about the future of banking regulations. waters, of course, expected to become the next chair of the house financial services committee and said if she chamber of commerce the helm efforts to loosen the reins on wall street won't be tolerated that's today's frost bite.

>> make no mistake come january in this committee, the days of weakening regulations ant putting our economy once again at risk of another financial crisis will come to an end >> clearly this has had an impact, morgan, on the market. >> yeah. >> because we look at sector performance today. we'll see that financials are down a full percent. i think the worst per forming sector if not the second worst performing sector and we see banks sell off as we did here on the headlines. i think there's a slight overreaction here. great research done by jason goldberg at barclays and he point out of the various deregulation recommendations that the treasury put out in the last year, 249 in total, 204 which or 82% do not require congressional action we don't expect all these derag try moves to happen, and i think it's fair to say that most -- the bulk of deregulation has occurred already, but this didn't mean regulations are

going to pick up and clearly with the senate balance in the opposite direction, it's not like congress on its own, the house of representatives on its own is going to pass significant re-regulation, so i'm slightly surprised to seat banks -- there's the shot that tells it perfectly, sold off when they heard the move fair to say we won't see huge deregulation from here, but i don't think we'll see an increase in regulation i feel stocks reacted like it was the latter. >> that's what we've heard from experts since the mid-terms last week >> sbdr down 0.8%. come up on "closing bell," apple plunging into bear market territory as wall street analysts turn their back on the stock for now, at least. stocks down 1.5% we'll debate whether you should do the same. but first, eu trade commissioner cecilia m ha

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welcome back trade details between the u.s. and european union are still being worked out and after just wrapping up a meeting with his counterpart cecilia malmstrom and joining us now is the eu trade commissioner herself, cecilia malmstrom. thanks so much for joining us. >> good afternoon. thank you to you

>> so how was your meeting was it upbeat? in particular, what sectors were discussed? >> well, we are focusing now on trying to deliver what the two presidents, president trump and the president of the european commission agreed to do this summer when they met in the white house to try to identify positive trade agenda. today we have focused mainly to discuss different sectors where we can facilitate regulatory cooperation, standards, things that would be beneficial for the american economy and for the european economy, facilitate for our exporters and take away some red tape. >> i sigh here headlines you discussed soybeans, natural gas, regulatory cooperation did you talk about auto tariffs at all >> well, i put the question on where they are in the process, but obviously no decision has been made yet. while we think that would be deeply unjustified if we were to be the target of these measures and we work under the assumption

that as long has we have these talks that that will not happen, but we didn't go into detail we did talk about soybeans and l & g. there's a big interest among members of the european union to buy l & g from the u.s. and we're looking at these procedures, the authorization and certification, if it can be facilitated so that that can happen that's huge investments, not happening tomorrow, but many countries would like to engage in that kind of trade. >> commissioner, i know there's been this talk of the threat of the u.s. putting auto tariffs into this country including from europe, but there are still the tariffs that the eu puts on to american-made vehicles coming into that mark was there any kind of discussion about those or about say the tariffs that are now in place on harley-davidson motor cycles i mean, there are quite a number of tariffs already in place on both sides that i would imagine quite a number of companies and consumers would like to see resolved. >> well, so would we

the tariffs that we put on, you mentioned harley-davidson and a few other products, were the results of the tariffs on 25% on steel and 10% on aluminum, so these were retaliatory measures by the european union. we're ready to take them away the same day as the u.s. would take away their tariffs on steel and aluminum which we also consider as not justified, and should the u.s., we we certainly hope will not happen also impose tariffs on cars and car parts, we would, likewise, we would retaliate on a number of products we're in the preparatory phase of having such a list if it's needed i really hope that we can concentrate on a positive agenda we have so much to gain from working together and identifying challenges in the world, reforming the wto and working to assess some of the methods used by china that we both are think not legitimate instead of trying to make life difficult for our companies. >> do you, therefore, support

the u.s.' cuff stance on trade with china the eu and u.s. closer to working together on that front >> well, we very much share the criticism that the u.s. has voiced so we've done the same when it comes to china as a country with massive subsidies to state-owned company with forced technology transfers, cyber thefts and so on we're working in a working group trying to address these issues within the wto because we think that that's the forum where we need to address it, the multi-lateral forum. we've met several times on a ministerial level, and that work is going forward, i would say >> you mentioned soybeans, commissioner is agriculture more broadly on the table as a discussion point for the eu to reduce some of the state subsidies on that sector >> well, i think the u.s. have

great a lot of state subsidies in agriculture as well, but we've said we're ready to engage in a smaller trade agreement focused on industrial goods and that would not cover agriculture. >> what about this eu digital tax that getting a lot of attack, the google, amazon, facebook and aal tax, the gafa traction there could be a lot of attention if this proposal were put in place around europe >> these proposals are not directed towards the u.s it's a digital tax being discussed within the european union, but we didn't talk about that at all today, no. >> i wanted to ask the trade commissioner about the latest headlines on brexit. theresa may seemingly getting full support from her cabinet for the withdrawal agreement that she negotiated with michel varnier. do you think that that now will

get approval on the eu side from all 27 states? >> well, i certainly hope so we're very sad that the brits are leaving us, but if this is the beginning of the end of that procedure with the withdrawal agreement and then we'll have to discuss the future relationship, i guess there would be a meeting between the heads of state of the european union and mrs. may to discuss all of this in the coming weeks and if she got the -- the government in the uk with her, that's certainly a positive development, so we'll make sure that we have an agreement as soon as possible and that we also start to think about the life after and our future relations so it's an important step forward. >> the uk hopes to strike a trade deal with the u.s. after brexit from your discussions today with u.s. trade representatives, do you think that's an easy task? >> well, it's not for me to judge. obviously when the uk is leaving the european union they will have to leave all the trade

agreements with -- that exist currently and also with the new partner, and i can imagine that for them it's a priority with the u.s., but that is absolutely not for me to intervene. that would be between washington and london to discuss. >> commissioner, can you give us any kind of sense of when we could see some of these i guess smaller deals between europe and the u.s. i guess become official, whether l & g, be it soybeans, areas where there seems to be a growing, you know, similarity between the two country, especially given the fact that it seems like it would take years to actually negotiate a comprehensive trade deal, and that doesn't seem to be something that's green lit by all the european union members yet. >> no. i think some of the things we discuss when it comes to regulatory cooperation or standards and so on, we don't have the formal dead line. i don't want to give you a date, but we're working very swiftly

in order to see what can be short-term deliverables that you could see decisions already maybe beginning of next year, and then will be other things where we need to put processes in motion that would be slightly longer we need to agree on the parameters first, and then as i understood the u.s. with the initial process here to ask for the trade promotion authority, and that has its own process, so we'll have to wait until that is over before we can actually identify the -- the framework of such an agreement, what we call a scoping agreement, and then i will have to get a mandate for that as well, but i think it can be a quick process, but we need to wait for the procedure in the congress if we agree on the parameters, of course. >> and just to sum things up how would you describe the overall tone of your meeting and of the u.s. administration, their approach towards trade there's been ups and down in the relationship on this front where

is it at the moment. is it much improved than it was six months ago, for example? >> well, we still are very critical on these tariffs on steel and aluminum and it's hurting our companies, and we've been extremely clear that we don't think the tariffs would be good for the u.s it would affect american jobs, and that we're very clear about. but we have a positive agenda that we're trying to work and the atmosphere is very constructive and friendly. we've met several times, know each other well, and we're trying to make the best of it as it is. >> trade commissioner, thanks very much for joining us we appreciate it here on cnbc. cecilia malmstrom, the eu trade commissioner. >> thank you very much. time now for a cnbc news update with sue herera hey, sue. >> thanks, wilf, very much. kentucky's mitch mcconnell once again chosen to lead the gop in the senate. south dakota's john thune was

chosen majority whip joany ernst won the republican senate conference vice chairmanship and as for the democrats chuck schumer will continue to lead his party in the senate the entire democratic leadership team stays the same. rick durbin remains the washington whip and patty murray the assistant democratic leader, but big winner today, that guy right there. retired federal government employee from harlem, new york 67-year-old robert bailey winning the $343 million powerball drawing. he says he's been playing the same lottery numbers for more than 25 years. >> well, i haven't been to las vegas in a while would i like to go there and visit las vegas. >> and that's where you're going first? >> god willing i hope so or i might go to the bahamas

i might go to the islands. >> he can go anywhere he wants with that kind of money because he took the lump sum which after taxes is $125 million. you're up to date. that's the news update guys, i'll send it become downtown to you. >> no complaints at all. >> viva las vegas. >> thank you very much for that, sue herera we have 27 minutes left of trade at the movement the dow is down 123 points, the low is 351 nasdaq also down 0.4%. >> coming up the chief investment officer of baird advisers explains how to structure your portfolio amid all the volatility, and why it may be smart to bet on bonds

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earlier today cnbc's david faber sat down with liberty media chairman john malone and david joins us now with highlights of that exclusive interview. hey, david. >> hi, morgan. talked about a lot of things, including the changing face of media, netflix, amazon, apple, how they figure into it, and whether disney will compete with them as it head to the

direct-to-consumer market and hit on at&t and time warner, at&t, of course, the owner of time warner and along with that came hbo one key question here given the enormous money being acquired to buy content from some of the aforementions companies, can hbo compete? here's malone. >> i don't know if at&t is willing to write those massive checks to play, you know, against the incumbent, amazon and netflix and compete with disney on the margin for that third seat. >> right. >> that i think if i was real i'd be scratching my head saying when i bought, it hbo was the scent gland, it was the crown jewel, it's what i wanted. now it's sub scale how much do i have to spend? they have had great creative at

hbo. the question now is how much do i have to spend and how much -- how much income do i have to forgo, right, for the next couple of years to build up? >> but do they have the capacity to even do that, john? i mean, direct tv is losing 340 subs every quarter at this point. directv now is not a business that is profitable. >> lowell mcadam told me he believed when they bought directv they made a strategic error. >> the former chairman, still chairman of verizon and verizon choosing to sit it out at least in terms of significant acquisitions of whether it's contempt or in the case of charter, as we know a couple years back, when they were looking at distribution. morgan and wilf, back for you. >> david, is the point here that with disney's latest development it puts hbo massively behind scale because the hbo versus

netflix comparison hasn't really changed itself that dramatically in the last six to 12 months. >> it hansn't, you're right, an do i believe that's the point he's trying to make. we know at&t would argue with that and say, listen, we're doing premium content that aggregates an enormous audience. malone seems to also be thinking about scale and the ability of hbo to really be able to be as competitive globally as netflix currently is you know, wilf, the numbers keep going up, as you well know netflix at 12 billion. greg mcfay told me he thinks amazon is going to do 15 billion at some point in terms of spending and disney will come in below that, but perhaps a lot more than hbo. i think it's a relatively open question certainly because hbo has a lot of very significant franchises that they have been able to launch over time, but it certainly is one that people have to think about, particularly given the balance

sheet stress that at&t has to one point. >> only one more season sadly for "game of thrones." >> april, looking forward to that. >> congratulations on three back-to-back "squawk on the street" busy with david faber exclusives. >> it was. >> thank you, david. >> well, with 20 minutes before the bell, the dow is down about 114 points right now off the lows of the session. the s&p is down just about ten points we've got more "closing bell" coming up. >> we do, and we will be discussing whether you should fear the rising rate environment with a top bond fund manager don't go anywhere.

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and smart, like you! and i like that. i guess i am pretty smart. don't let that go to your head, gary. what's in your wallet? welcome back to "closing bell." we have 17 minutes left to trade. we're lower by 126 points and the low of the day was 321 and

the high was 215 points so we're somewhere in between, down half a percent for all three of the major indices. >> cpi data for october coming in line with expectations with consumer prices increasing by the most in nine months. the data comes as investors prepare for another rate hike by the fed next month despite some investors cringing at thought of higher rates, our next guest says it could be a good thing mary allen stennic, president of baird funds and baird advisors joins us now to discuss. thank you. >> is that true? are you welcoming higher rates and if so why? >> looking back over the last decade investors have been viewed as starved. with the yield curve flattening it's creating a great opportunity for investors. the lemons part of it is the rising rates and lower bond prices the lemonade parts are investors will earn higher yield for a longer period of time. >> only if they buy at end of

the process of rising yields so i guess the key question is when do we reefrp the peach the peak process? >> it's a fool's game. really difficult to get that decision right, and generally investors don't go back the other way, and so we recommend that investors pick where along the risk spectrum it best mites their objective. stay there and then allow professional investors to help maximize return for a given level of risk. >> we talk about this wall of worry that seems to be growing right now for the markets. what's keeping you up at night >> there's plenty of things to worry about, the trade tensions, you know, a global event certainly all of those things. but you look at it and you look at the u.s. economy, and we are soon to have or at least tied for the longest expansion since world war ii we're within months of that happening, and we've still got pretty good fundamentals in the

u.s. there is a divergence with growth weakening throughout the rest of the world, but we still have an economy that we think is chugging along at a pretty good momentum where job creation has been robust and for most individuals things are clearly better >> what is your view on rates in the rest of the world, particularly the developed rest of the world in. >> it's a great point because you look at the u.s. interest rates, and while we were just debate, are they going higher? they are some of the highest throughout the world and you look at germany and you look at switzerland and you look at many of the developed markets and interest rates are very low. you know, there are sub 1% and kind of nominal yields, so it's -- the u.s. is very attractive globally, and we'll continually to look at a world that continues to drive in capital as rates rise.

>> do you think that there could be a day of reckoning coming for the corporate bond market in the sense that we have seen a burgeoning amount of triple b-rated debt, and if we do see some economic soft anything and do see rates rights, maybe some of that tips over? >> some of it may, and we don't want ton pollyannish but we think corporate america has been quite astute in this last cycle. they raised a fair amount of debt, most of it behind a lot of m & a transactions, and they issued a lot of interest rate debt they turned out their average maturities, and so they are in pretty good shape actually right now. one big borrower that we haven't talked about is the federal government which did not term out their debt and faces a fairly significant reinvestment risk as rates have risen in here to answer your direct question, no, we -- we are not worried

in fact, we look fundamentally, and we think there's a lot of reasons to continue to be constructive that said, we are investing in a really well diversified portfolio and taking advantage of many of those situations. >> u.s. dollar index hit an 18-month or so high. about do where does it go from here sxw >> the dollar remains strong. >> thanks so much for joining us maryiane stanek from baird. we have 12 minutes left of trade. a bit of a yo-yo session and we've off the lows down 0.5% or thereabouts for all three of the major indices. one of the world's biggest shipping companies is sending a warning about president trump's trade war. we'll discuss how it could hurt global trade next. let's begin.

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down 2.7% and a lot of focus on apple. guggenheim has downgrade that had stock, one of many companies to do so down 2.5% and jpmorgan chase are suffering, as all the banks are following comments from maxine waters no more hopes of regulation from her point of view. the banks the worst performing sector today on the s&p 500. now one of the world's largest shipping companies is already feeling the pressure of president trump's trade war and morgan is following the story for us morgan what's the latest in the. >> that is right maersk warning there would be a price to be paid from the u.s./chinese trade conflict next year even as global demand slips to its lowest level in years they expect the global container trade to drop by up to 2% thanks to the tariffs between the u.s. and common the dynamic, chinese imports to the u.s. have increased. u.s. exports to china have decreased. still, the company is sticking with long-term guidance of 2% to

4% increase in global container demand, though 2019 is expected to see a rise at the lower end of that scale, and the comments are really coming on the heels of an earnings beat from maersk and this is one to watch and watch closely since despite relatively robust container numbers, for other modes of freight trappings might be showing signs of potentially softening. keep in mind, they have been very robust. specifically air freight it's recently report that had air cargo demand grew only 2% in september year on year, and that was in part thanks to a global contraction in the manufacturing firms' export order books. still strong pricing still strong. >> is this stand alone here, or are others making similar sounds >> starting to see a little bit more of t.ups, for example, when they reported their earnings a couple weeks ago, it was some softness in their international

business and some of the trade flows hand how they reflected on their business there that could the all the attention from investors in those results, so it's one to keep an eye on still, again, really strong. when you talk about inflation, transportation costs have been a key piece of that as we heard steve liesman earlier in the hour talk about but maybe not as strong as we talked about months ago. >> keep an eye on it we will. up next. we'll be back with the closing countdown. we've got six minutes left of trade. and after the bell we'll get earnings results from cisco. those results are due out at top of the hour. keep it here you're watching cnbc, first in business worldwide sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

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♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "closing bell." we've got two and a half minutes left to trade. the spx is down about three-quarters of 1% comments from maxine waters started the selloff. the banks really played a part in that selloff. what also played a part in the market was brexit and the british pound. if we look at the british pound

intraday, it got its most notable lift up around 2:30 p.m. eastern time that positivity on the news that theresa may sold her brexit deal to her cabinet allowed stocks to rally here you can see the rally that took us off the lows. all four indices down around 0.8%, 0.9%, 0.7% on the spx. just off the lows, but clearly red across all of those indices as we approach the close bob pisani joins me now. we've got the sectors as we bring in bob banks very much at the bottom. communications towards the top but not a very good day. >> on the services it's a little confusing. the market was drifting lower when maxine waters came out with the comments and now we have to deal with the comment how much is regulatory risk with factors that's part of the stock market? fed inflation number one and

number two china, and china tariffs. those are things that move the markets. is regulatory risk now considered with the dollar as ancillary risks? health care stocks, for example, like united healthcare, dropped when waters made her comments. why would that be? that's another sector, healthcare, that could be potentially part of regulatory risk it seems like had a little bit of a stretch frankly. >> only one house of congress. not all the appointments no one in the executive has changed. >> exactly right, but you saw the market reaction. you also saw an outsized reaction about -- after may came out with her comments. the markets i think were drifting that took a long time. you were on that cabinet meeting. five hours was that meeting? >> five and a half, and the markets were saying what's going on >> it doesn't look good, and that was an additional factor in why the market dropped, and you can see how quickly it turned around right after we were on it around 2:10, the market turned around right at 2:10. >> certainly did. >> we'll see if that holds

a lot of speculation that there's more hurdles to come for the prime minister apple a big factor as well. >> continuing to climb swk did not have a very good day. >> off the lows of the close but still down 0.8% and s.a.p. is here to ring the closing bell. morgan, back to you. >> welcome to the "closing bell." i'm morgan brennan in for kelly evans. wilfred frost will join me in a moment along with mike santoli cnbc commentator the dow closed down 204 points in what was another whipsaw session, up as much as 215 earlier in the day and down as much as 350 points, even dipping

throw 25k at one point finishing the day down at 25, 021 and s&p down three-quarters of a percent at 2701, led lower by financial and tech stocks. the nasdaq down .9%, and the russell down .8% investors turned their attention to cisco earnings which are due out any minute we'll break down those results coming up, and joining us now to talk about the market michael yoshikami from destination wealth management. leading the dow was dow dupont and travelers was the decliner coty was the winner and pg&e was the lagard mike santoli, how would you characterize what was another volatile session here today? >> yeah. the market is still agitated it still seems very suggestible, right, one kind of discussion point from maxine waters and the banks give it up, and there's kind of support when tech is

already for sale i don't think that we settled anything today the fact that you did have that intraday rally is certainly a necessary positive shows there's kind of an itchiness for people to suggest that maybe we're forming some kind of a low. it's unclear right now the market continues to trade quite technically. a week ago we said s&p reached a level that's very logical for it to stall out it did it's now been in pullback mode today where the low was was exactly october 30th levels, and people were saying, oh, we have to get down there and fill this gap on the chart that's the kind of tactical stuff that happens when you have a pressure table. >> wetalked about the technicals art cashin was talking about that and we came off the level that he was talking about on the dow. down 3%, 4% for the indices this week not an attractive looking chart. >> it isn't. if you pull back the lens a bit. it's bearish it's obviously showing you that the market can't get out of its own way and cannot seize upon what's supposed to be strong

seasonal patterns, a calm bond market, let be honest, so there was some thought maybe in the afternoon that we had fed chair powell speaking this evening and maybe you want to not make any drastic moves until we see whether in fact he gives any signal of softening of the outlook of rate hikes next year. >> what would you make of the market action today especially since you see apple dip into bear-market territory. >> trading range that's the first thing that comes to mind. the market is real kind of floating around this 2%, 3 has, 4%, 6% down. individual names are suffering such as apple, based obviously on iphone expectations, but i think the market is really in a trading range. i think that's just looking for some direction, and that direction will come from what the federal reserve says in terms of indications about interest rate policy and perhaps what's happening with china-u.s. discussions. there's been rumblings that the china and u.s. are certainly

talking to each other again, and that would be welcome news by the market. >> banks got slammed today it was the worst performing sector overall many banks moved lower after congresswoman maxine waters promised to flex her muscles when she takes the helm of the financial services committee in january. most of the group is down around 2% for the big names mike, i have to say as discussed in the first hour, my take is it was some kind of an overreaction i don't think anyone was expecting huge waves of deregulation still to come. >> right. >> and, therefore, i think the banks reacted as if this was expectations of re-regulation which you could expect if the banks still had that post-trump election outperformance relative to the s&p, but as you've highlighted to us in the last couple of weeks they have given all the gains up on the s&p. >> on the merits of what was said and should have been expected it seems like an overreaction, but there's also information to be pulled out of the fact that the sentiment is so fragile around this sector, that you know, these relatively as expected innocuous comments

could knock the group down by more than 1% when they are already at, you know, well below their high it more reflects the fact that no one is able to really formulate an immediate bullish catalyst for the group even though valuations have come down so much. >> michael, do you agree with that >> i do. i think it's an overreaction just because a comment is made by someone who you would expect to talk about wanting to stop deregulation for the bank sector to move down 2% seems a bit of a stretch, particularly when banks are still fundamentally fairly solid in the u.s we still have a solid economy here in america. interest rates are going up to help net interest margins. i think it's a bit of an overreaction, and i still think banks have an opportunity to participate in a next leg up when the market solidifies. >> what's the play here, michael? a big bank, a small bank, investment bank, retail bank

>> yeah. you know, i think if you go with banks like goldman sachs or morgan stanley, these are the kind of banks that i think will position well. wealth management is certainly an area that you want to focus on everyone is really trying to capture dollars out there, and so i think that really those who are aggregating dollars are really the banks that you want to really chase. goldman, for example, has started to relieve products more to the middle market on a money market basis and there's some rumblings that they will go downstream so i think that those are the kind of asset groups that really make sense. >> i mentioned it before, but apple also getting a lot of attention today and entering bear market territory and getting its third downgrade in less than two weeks. closing the session down almost 3% today now down 20% from its record high set early in okay apple has shed $213 billion in market cap mike santoli, this was sort last hold out in terms of the

big cap tack. >> big influential stocks that were holding up better than others. >> the 20% number to me doesn't have a lot of significance just as a threshold it's obviously broken through some technical levels n.time though, if you think about how much is it down or how far has it back slid it's not much back to levels around memorial day? you can spin that positively or negatively not a big deal still up 10% year to date. still a leadership stock in the mark on the other hand, if you're waiting for this to get washed out and waiting for investors to give up on the apple story, haven't seen it yet, but the fact that it was holding up better than most stocks before it rolled over tells you that this is not the beginning of a process. when apple finally succumbs it shows you we're pretty far along in this process of re-valuation. >> is this the end of the bull

market of apple? >> i don't think so. it's maybe not the greatest timing in the world when they reported a shortfall in the last earnings report, but i think it's really more indicative of apple really trying to focus more on the reality that they are becoming a service company, and so, you know, there's been a constant drama aron apple every single quarter it's always about iphone sales and the average selling price, and i think that really takes away from real the apple story, so i don't really think that it is the end of the long-term bull case for a i still think it's a great company that has reasonable valuations and, again, the services business is what's going to drive this company forward in my view. >> sticking with tech. we have sysco earnings out and josh lipton has those numbers. josh >> cisco reporting earnings of 75 cents the street was at 72 cents and revenue of 13.07 billion

beats there on the bottom and top. non-debt, total gross margin comes in at 63.8%. in terms of the guide, q2, cisco looking between 71 and 73 cents. the street was at 72 cents and the q2 revenue guidance is up 5% to 7%. that's slightly higher than what the street was looking for just turning to the segments here, guys, infrastructure platforms, looks like it comes in at $7.6 billion, up 9%. applications 1.4 billion, that's up 18% security, 651 million, up 11%. other products 178, and finally services here at 3.2 billion that's up 3% year over year. comps kick o comps -- conference call kicks off at 4:30. now back to you. >> one of the tech-centric dow

components, what do you make of it >> definitely in the stocks that have been more in favor, quality and stability of earnings which cisco has shown for years right now, so i do think that this makes sense that this is the kind of stock you would go to in this environment also up pretty well. been an outperformer it's a low drama stock and company these days, and i think that's what investors like about if. >> don't miss jim cramer's exclusive interview with ceo chuck robb bins at 6:00 p.m. on "mad money." >> michael, what's your view on cisco and that sort of balance we heard you liked apple, the space between safe testify and growthy tech. >> it's a non-exciting name though cisco's earnings report is quite positive when you look at the top and bottom line, particularly some of the growth numbers. you know, cisco is not the kind of name that at this point is going to be growing by leaps and

bounds it's more designed to be more of a consistent name at this point, so i think it's a positive report, and i think it certainly is more of a safe harbor than say the netflix of the world that have such incredible volatility, so all in all a good positive earnings report and probably, again, more of a safe haven name. >> okay. michael, thanks for that now we've got breaking news on uber, and josh has the details on that for us hey, josh. >> wilf, yeah, uber just now releasing its q3 financial results. so let me bring those numbers to you, wilf. q3 revenue comes in at $2.95 billion, up 38% from the same quarter last year. gross bookings or the amount collected before payouts to drivers, that comes in at $12.7 billion. that's up 34%. that does continue, though, the slowing growth that uber has seen remember in q2 uber's net

revenue was actually up 51% from a year prior uber saying the adjusted net loss did widen in the third quarter. that comes in at 939 million of the company interestingly break out uber eats for the first time they say uber eats accounted for 2.1 billion gross bookings, up 150% uber's e ceo did speak to nbc and he said as we look ahead to an a ipo and beyond, we're investing in future growth across our platform, including in food, freight, electric bikes and scooters and high potential markets in india and the middle east where we continue to solidify our leadership positions, so as we hedge towards the ipo, uber reminding investors it's not just a ride-hailing giant as it heads to the ipo, bankers saying it could value the company at $120

billion. guys, back to you. >> josh, thank you very much for that fascinating set of numbers. mike santoli, clearly revenue growth of 38% year on year is still very impressive. >> it is. >> as we've always discussed this is not a super early stage company and the losses are increasing. >> no, not at all. >> clearly the budget is to continue to run losses, to continue to burn cash and build the network and all the rest and the losses did narrow significantly in a high revenue base. >> why didn't it quarter over quarter? >> yes, exactly. >> the g & a, general and administrative expenses were down radically and both sequentially, like $300 million. so the question to me is that the run rate now, or was there something extraordinary going on for a couple of quarters in terms of spend on the operations side, overhead side, that's now been pulled back if you were an investor, you would want to know what am i modeling here? >> with uber looking to go public as soon as next year,

when you see numbers like this, your takeaway is what? >> well, the number that was just mentioned, 120 billion, my first takeaway is that's a very, very big number. that certainly is pricing in the optimistic scenario that it's not just going to be uber cars, uber scooter, uber boat, uber whatever, so that's a pretty optimistic number. you know, as always the case with these kind of names, the question is when is it going to be profitable, and i don't see anypoint real at this point what the strategy is so for many investors they will stay on the sideline until they see what the exit strategy is away from losses even as they start moving towards an ipo. >> mike, on that point, i mean, this 120 bill crop that's muted, even if it's 2013 where loss-making tech companies were the flavor du jour as it were

and we didn't have examples like snap that hadn't gone so well, 120 billion is four times over revenue. that's nuts, isn't it? >> quarterly revenue. >> so ten times revenue. >> still pretty extreme. >> growing at one-third a year growing at 30% plus a year i think that's aggressive. no doubt about it. sounds aggressive. you're not getting a lot of the mega cap private companies that are at that range anymore, and it will all come down to, you know, exactly how much room they have in dominating ride sharing and in general how big that market becomes i think it will be sold on a first mover with scale in a normal addressable market. >> uber eats is growing at 1 50s%, b50150% >> mike, thanks for joining us, as always. >> thank you. coming up, we'll break down

the charts to explain why the market might keep experiencing wild rides like today for quite some time. >> much more for apple which fell into bear market territory. a debate on whether it's time to iln atidy ldtock next wireless phone call in 1983. yes, this is bob barnett in chicago. (john) we were both working on that first network that would eventually become verizon's. back then, the idea of a nationwide wireless network was completely unreasonable. but think about how important that first call was to our lives. it opened the door to the billions of mobile calls that we've all made in the last 34 years. sometimes being first means being unreasonable. i'm proud i was part of that first call, and i'm proud that i'm here now as we build america's first and only 5g ultra wideband network with unprecedented wireless capacity that will not only allow for phones to be connected, but almost everything--

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welcome back apple stock getting crushed today, down almost 3% and officially dipping more than 20% below its all-time high. this latest leg lower after guggenheim downgraded the stock saying, quote, a period of digestion is likely. joining us now is a member of main street research and timothy lesko from granite investment advisers good afternoon to you both pierre, i'm going to start with you because we had you on "squawk alley" and at the time you were really the lone bear when it came to apple. where do you stand on the stock now? >> well, what i would say is that we've had a fairly steady flow of news coming in from the suppliers so we've had foxcon

and many of the datapoints, it looks like apple is cutting others by 25%, 30%, and moy perspective on 2019 is following. it's two things. the first one is that we're in a situation where apple's firsthand buyers is that group of people is not growing anymore and they still like the iphone but they keep it longer which means shipments are coming down. the second thing that we didn't really see that happening last -- last year because the iphone x was extremely successful and brought forth some demons. some buyers who would do it in '19 did it in '18 and that's why they are not in the market and that's the reason why demand is declining. >> what's your view and response to that that the iphones cycle has perhaps beat in terms of

growth numbers >> well, certainly we've heard that same story for every, you know, "s" cycle of the iphone, whether it was the 4 or 4s or the 5 to the 5s or 6 to 6s, the second year of a design probably has a slower uptick rate pierre was early on the story and had it right at the time, but if you look forward through that, you have pretty high demand coming from 5g cellular phones look out to 2019 into 2020 long-term investors seems like a short-term problem with a long-term solution >> yeah, pierre, i guess one of the things that seems to be inflating apple stock on the way up was this sense of certainty out there, that essentially companies buying back so much shares warren buffett owns 5% plus and will never sell and the idea that there's almost a scarcity of the stock and that being the case we could sort of wait for the thing to be revalued as a services company with the discount now in there from the highs, are we any

closer to that case being correct at a lower stock price >> i like to call that the case and fully agree with it. i think apple does become a service company and apple does have a fantastic consumer franchise and is a very highly valuable business. now there is a big difference between the company buying back its stock and growing into new sources of revenues like services and new devices with a stable base and the same company doing the same thing with a declining base and history shows that the market has a declining base we need the iphone business to find stability before really buying that, and that's what i recommend investors to wait for signs of stabilization of iphone shipments and i love to compare what happens with the pc market between 2012 and 2017 when pcs actually declined in shipments

we're in the third year of decline in shipments for the iphone so maybe a couple more years and we'll be there. >> pierre, your price target is what >> $1665. >> timothy, quick, conclusions, yours is what? >> we don't set price targets but we think 13.5 times earnings, this thing should chart a 30% discount to that market. >> guys, thanks very much for joining us pierre and timothy. >> thank you. now berkshire hathaway's files are up and leslie picker is diving into the numbers. >> berkshire hathaway adding a new position in jpmorgan during the quarter which ended september 30 you can see shares of jpmorgan up about .8% of a percent in aftermarket trading on this news cnbc can confirm it took a stake of 35.6 million shares in the quarter which represents about a $4 billion size of that position now in the past buffet has

praised dimon. he's obviously partnering with dimon on the healthcare initiative previously he has told cnbc he personally owned jpmorgan shares because berkshire hathaway didn't and didn't want those two to be in conflict, so it's unclear if he personally still owns jpmorgan or if he's personally sold out of jpmorgan, but one thing is clear berkshire hathaway does own. it also worth noting that one of warren buffett's top stock pickers todd holmes was added to jpmorgan's board of directors in 2016 also noteworthy from this filing is shares of oracle that represent $2 billion worth of stock. back over to you guys. >> any sign that they have sold out of or down in their position in wells fargo or bank of america? ie, is there a switch between the banks or an increase in exposure to the banks? >> it's unclear. we're still crunching the numbers through the entirety of the filing and wanted to get you the new positions first, but we'll get you that answer as

soon as we can. >> leslie, thanks very much for that i mean, mike, either way, jpmorgan is the most premium value of the u.s. banks and we discussed earlier whether this is a buying opportunity or not a big vote of confidence for the sector. >> we would see a marker of perceived value and during the quarter which traded about 118 and right now it's down towards the lower range of that around 107. it's interesting i think the market will take it as a net positive though i think as jpmorgan did enjoy a bit of a halo effect. >> oracle sunis up 3% surprised to seer in tech stake for hathaway >> it's a steady play and general play on the business technology ecosystem and software it's interesting that it's another founder-run company or at least someone at berkshire

hathaway likes doesn't always means it's buffet. >> another wild day on wall street up next, we're going to look at why more volatility could be become. >> plus, british prime minister theresa may securing support for her brexit deal, but later we'll hear from one former member of parliament who calls theresa may a trair. atarcur gunt still to come.

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welcome back to "closing bell." >> we have a warnings on netapp. earnings down. they issued strong third quarter eps guidance revenues just a slight beat, only by $10 million and the revenue guidance going forward in line with the street estimates. maybe that's what the street was disappointed about, not enough of a pop on the revenue side which is why perhaps the stock is down after hours. >> thanks very much for that now a 564-point swing today in the dow as the markets closed lower. should investors expect this volatility to continue mike santoli has the answer for us at the telestrator. mike >> yeah, one stab at this answer it's a very busy chart that comes from bank of america/mayoral lynch, the strategy team over there and compares the treasury yield

curve, the flattening treasury yield curve and the volatility index for stocks this is the longer term. not the next couple of months. goings back to 1987 and projects into the future to 2021. the blur line is the treasury yield curve inverted so when the line is going up, the yield curve is getting narrower between two and ten-year maturities the orange line is the volatility index of today, so because the yield curve seems to lead the volatility index, the suggestion here, as you can see over time, the yield curve line has shifted forward, so what it would suggest is what we're in for is something like that when it comes to the vix over the next couple of years what it really tells us, guys, this is what happens towards the heart part of a cycle. >> right. >> yield curve narrows and the fed is raising rates these stock market volatility becomes more pronounced as we go along. >> i mean. mike, i totally get the point you're making and playing devil's verdict. could you argue that we've

already got the yield curve pretty flat by historical standards and yet we haven't seen the vix pick up much? >> the not yet part is part of the question if you look back into the '90s you saw this period here where it really didn't match up very well so certainly there's nothing magical about the relationship, but i do think that you had volatility suppressed down here for a good while in '16 and '17, and the argument is that we should at least expect the possibility that stocks have to have a lot more push and pull with them because the market is just not sure how -- how the cycle ends up. >> i have to say, mike, that was probably the worst arrow you've drawn for us >> in your defense, i stood there for the first time earlier on "quasquawk alley" and had a complete nightmare it's tricky. now time for a news update.

>> hello, everyone here's what's happening at this hour defense secretary james mattis visiting with some of the 5,900 troops currently deployed along the texas border but said those numbers are fluid and could swell to 7,000 as circumstances change he was accompanied by homeland security secretary kirstjen nielsen. mexican authorities say nearly 400 central american migrants traveling in a caravan have arrived in the border city of tijuana today they got out of school buses, some excitedly hanging out of the windows to catch a glimpse of the border area and hundreds of israelis livings close to the gaza border demonstrating against israel's crease fire with hamas militants holding banners calling for israeli prime minister netanyahu to resign. they say the only way to stop the frequent flare-ups with gaza is to defeat hamas once and for all. and in new york city in court today, prosecutors showing jurors video of what they say is el chapo's drug tunnel between

mexico and the u.s the tunnel is equipped with electricity, and they say el chapo used that tunnel to move drugs into the united states you are up to date that's the news update this hour morgan, wilf, i'll send it back downtown to you guys. >> sue herera, thank you. traffic websites like booking holdings have been bucking the recent market selloff. up next, we'll speak exclusively to glenn fogel on how trade tensions are impacting their bottom line. >> still to come, consumer prices posting the largest increase in nine months. we will look at what that means for the price of yr anou thksgiving meal. back in a couple of minutes. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges. how mature of them! for drivers with accident forgiveness, liberty mutual won't raise their rates

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including the latest movies and box sets from around the world. ( ♪ ) we even have live sports and news channels. ( ♪ ) and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. one stock that's managed to outperform in the downturn has been booking holdings, parent company of priceline the stock is up 5% over the last month and seema mody is at a conference in l.a. and is with booking holdings ceo glenn fogel. >> pleasure to sit down with you today. >> thanks for having me. >> i want to take you back one year ago when you announced you'd be putting more money towards brand advertising to

better target your customer. at that point wall street reacted negatively to that news, but your latest earnings report suggests that that initiative is starting to pay off in terms of profit growth. >> well, i wouldn't draw too much into any one specific data point and certainly people did react perhaps negatively to many different things a year ago and certainly people are happier today but the advertising thing, that's a long term play. we'll continue to do it, and part of the thing is we have to make sure we can measure it well always been really big in performance marketing and we're new in the marketing and it will take years before we have as much expertise as we have right now in performance marketing. >> as you look to gross bookings, you're looking at uber's chinese rival and the south asian ride-hailing app is this a risky move because it's coming as u.s.-china tensions are sort of on the rise >> well, i don't know about how

much risk there is when there's 1.4 billion chinese people and only 10% of the people have passports to go outbound, those people will want to travel and see the world and we want to be there. i've always said that china is the locomotive for the travel train, and we need to be there we are there we have almost 1,000 employees there in our own offices, a dozen offices. we also do things with partners like you mentioned we've made investments, and in the end you need partners and we need to build our own business there. >> morgan has a question back in studio. >> i do. thanks, seema. glenn, great to speak with you today. i want your thoughts on the short-term rental market it seems like the tide is turning or has been this year with more markets putting more regulations in place on home-sharing, miami beach, boston, for example. here in new york city where officials seem to be cracking down a little more aggressively. how do you envision this industry moving forward? how are you working with regulators as they put more laws

in place, and how are you policing what are in some of these markets a legal short-term rentals more broadly >> yeah, no. it's an important issue right now. we believe that the first thing is you always have to obey the regulations. we're not a company that goes out and says we don't care about the regulations, that we'll do whatever it necessary to hit a profit level that's not us. we work with the regulators to make sure that all the stakeholders can have their voice heard hand we come up with whatever the best thing is for all of us. we've been growing this business tremendously we have 5.7 million listings and we've been able to grow this business legally within the regulations. we believe that over time there should be regulations that make an even playing field for every play in the space. it's a fast-growing area and we're spending time, energy, effort and money because people want a hotel sometimes and sometimes they want an

apartment. we offer both options to them. >> the biggest concern on the economy right now, glenn >> there are areas with uncertainty. there's brexit and trade wars and all of that, but look at the unemployment level in the u.s. that's booming right now people with cash want to go out and travel, and we're there to provide that service for them so while there may be a pocket here or there that causes issues of concern in the long run the trend for travel will be upward. >> we'll see if that trend conditions. >> thanks for sitting down with us ceo of booking holdings.com. >> guys, back to you in the studio. >> thank you both very much. you in a brexit breakdown was avoided today following a lengthy cabinet meeting. prime minister theresa may did secure backing for her brexit plan up next we'll talk to a former mp about the next steps. the investment managers at pgim take a long term view. uncovering opportunities for alpha

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we've got some news on oil a new inventory numbers from the american petroleum institute jackie deangelis joins us now with more. jackie >> reporter: good afternoon to you, morgan. watching the markets and watching what's happening in oil prices you want to know what the api number was and it's a build of 8.8 million barrels that exceeded expectations which were for a build of about 3 million barrels, so there's been a lot of bearish act in oil. this, of course, will add to the pressure as we go into the overnight session. tomorrow because of the veterans day holiday, the eia number was delayed until 11:00 a.m. and this is typically the number that sets us up for that report. we'll be watching that closely

and we'll be watching to see what the u.s. production number is last week a staggering 11.6 million barrels a day. that part of what sent these prices lower, guys back over to you. >> jackie, thank you very much for that now uk prime minister theresa may wrapped up an historic cabinet meeting where she did achieve approval for the brexit plan here's what she had to say. >> i believe that i owe this country to take interests that are in the national interest, and i firmly believe with my head and my heart that this is a decision which is in the best interests of our entire united kingdom. >> earlier on the show we asked the eu trade commissioner cecilia malmstrom about today's brexit announcement. >> very sad that the brits are leaving us, but if this is the beginning of the end of that procedure with the withdrawal agreement and then we'll have to discuss the future relationship

if she got the government in the uk with her, that's certainly a positive development, so we will make sure that we have an agreement as soon as possible and that we'll start to think about the life after and our future relations. >> joining us now, john brown, former mp, and now senior market strategist at europe pacific capital. good afternoon to you, thanks for joining us. >> great to be here. >> now that theresa may has cabinet approval, does this definitively move on to parliament next? >> yes, it moves on to parliament where she doesn't have definitive approval yet there are many members of parliament all over the spectrum from right to left, from scotland to ireland, all different factions have problems with this agreement which as the prime minister just said in that product she votes with her head and her heart, maybe just her head, because it's somewhat like

the iranian deal, nuclear deal it's been done very much in secret, and she isn't facing parliament today she's just giving a press conference which shows it's something she's not very proud of, and most people see the european union as the globalist greatest experiment in reducing nations and nationalism, and it comes to mind macron espee's spn remembrance day a few days ago when he was echoing the same spirit of the remembrance of millions of people who died to defend their countries it's quite scandalous and britain, it represents its last peaceful attempt to leave the european union of course, this is being sold that we still have the laws, the regulations and our borders, but she forgets to say, with great duplicity, that they are all under control of the european union. >> but, john, of course, she's had a very difficult task here

to placate the interests of remainers and leavers, and, therefore, the most likely outcome always was to end up somewhere in between, and she has managed to do that >> well, i don't mean to be rude, but i don't think there was any doubt about the brexit vote there was no in between at all it was out britain wants to leave and be an independent country, and that was it i attended her first prime minister's question after the brexit vote and she said brexit means we leave, and she said it over and over again, and it was echoed by cabinet ministers in subsequent speeches. this is not what happened. brexit is only a name. we will still be within the european union which some people call the euro soviet. >> well, john, that is a very strong position from someone that is clearly very much against it hold on, john, just one second she's negotiated a deal. the deal that she said is the best that she could possibly secure, so are you suggesting that the outcome should be no

deal >> absolutely. >> and you're saying that that is what the british people -- is that what the british people definitively voted for there were promises made that a deal on free trade would be fairly simple to make. >> well, yes, there were allegations on all sides and counter allegations, but basically the british people want their freedom and if the price that have freedom is problems with trade, we'll be free to trade not just with europe but with the whole world in our own interests, not in german and french interests where we're left out, and -- and so the thing is a freedom to set our own laws, to have our own regulations and our own borders, to defend our borders. already we've had mass immigration that's causing tremendous problems, political problems in britain. they don't use the weapon of mass destruction, but they use the weapon of mass immigration. >> okay. we will leave it there john, thank you for joining us john brown, former member of

parliament morgan, just to bring it back to the markets today. the pound against the dollar is essentially flat as we -- as we come towards the end of the show now it did rally to be up about half a percent after the prime minister got that agreement, and i guess the one thing to take from that interview is that there are other people in the parliament, in the party that holds a similar view, and that's why even though she got the agreement of the cabinet, the parliament is giving up the gains on the possibility that that doesn't hold as we go through the next 24 hours and onwards. >> meantime, pg&e shares down more than 20% today due to a possible connection to the wildfires in northern california up next, we'll looatk the liabilities that the company may be facing.

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welcome back to the "closing bell." shares of pg&e finishing lower by more than 20% today after the company disclosed an electric incident that happened before the. campfire saying the cause of the campfire hasn't been determined pg&e has provided an electric incident report of the safety division of the public utilities commission with respect to this fire the information provided in this report is preliminary and pg&e will fully captor with any investigations the company also offered condolences to those affected by the wildfires saying, quote our hearts are with the communities impacted by the campfire although the investigation is ongoing pg&e says if it's found liable for the wildfires its insurance would not be enough to cover the costs of damages joining us now to discuss more on the potential challenges ahead for the company is paul

fremont from zuho securities, paul thanks for joining us. >> thank you for having me. >> is that what's driving this stock lower right now, the fact that as you have folks looking to potentially file suit against in utility, even though we don't have all the details per se yet, that if they're found liable for this they won't be able to cover the costs. >> i think in part yes but i think if you look at today's action it's more driven by an ak the company issued last night wherefore the first time they seem concerned about the effect that the fire will have on their access to capital markets. >> and how much impact can that have on the stock price at the moment, paul orp more than that the ability of the company to continue to function >> well, we the haven't estimated the damages yet. but the -- you're approaching the level of damage that you incur during the 2017 fires

which we estimated to be on a pretax basis in the range of $17 billion. and that compares to roughly $19.4 billion of insurance coverage and there is nothing under the recently adopted legislation in california that would help compensate or pay for the fires. the event today basically -- the company announced that they preemptively drew down all of their bank credit facilities, essentially taking in about $3.5 billion of cash that will partly -- that will more than cover the 800 million of debt ma turts they have through february the big question, though, is that this company spends about $6 billion a year on construction so at that rate they could find

themselves going through the $3 billion farrell quicklirly quice question becomes will lenders extend further credit to the company? >> many questions. thank you, paul fremont for breaking this down for us today. > n>>upext more details from berkshire hathway 13 s filing. what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term?

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berkshire's 13 f filing. and leslie has the details. >> that's why we have been scrubbing the berkshire hathway 13 f filing and learn he added to his position in apple in the quarter ending september 30th, adding $523,000 shares to hold about $252.5 million shares total, representing at the end of september $57 billion now we don't know if he sold in the six weeks since then but the stake would be worth significantly less if he did -- or if he held the same amount. on the bank's question which wilf asked earlier, wells fargo he paired back in wells fargo down by 6 about it 95 million to 442 million shares total but in the banking sector he largely added to positions,

adding to his position in pnc by 6.1 million shares adding to his position in bank of america by 198 million shares, to his position in bank of new york melon by 13 million shares and goldman sachs by 5 million shares and of course we told you earlier about the stake in jp morgan worth about $4 billion guys. >> thank you very much for that. mike, clearly a bet on the u.s. banks. goldman sachs in particular he would have seen the share prices fall since taking the stakes including jp morguen >> jp morgue isn't the one stock after hours seems to be getting a bid on the news of the position seems it gains most of what it lost today he is obviously always been relatively upbeat about the economy. i think he believes that means the big banks, the way they are valued seem like an okay bet. >> what gets my attention, reduced positions in airlines, united and american. and he sold out of wal-mart or the company sold out of wal-mart. >> interesting

wal-mart was dead money but had a lift recent fl. >> likes the u.s. economy and value traditionally and he gets that with banks with u.s. banks on pe basis relevant tough to the s&p 500. >> yes. that does it for "closing bell." it's been a roller coaster ride morgan thanks for joining us >> great to be here thank you. >> and mike. we'll be back tomorrow tune in then and stay tuned now for "fast money. "fast money" starts right now live from the nasdaq market site over looking noerkz's time jaurs. traders are broien kelly karen finerman, guy adami and a special addition top strategist and "fast money" friend tony dividerof cannacord. bitcoin is crashing. in fact the cryptouniverse is tanking we tell you what's going on how bad the selling gets. plus the countdown on only 40 days until christmas and something happened in the retail

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