career you can find it all over twitter i'm sure today >> that is amazing >> they play one song throughout look at the video that they have from various teenagestages >> thank you for being with us today. >> always my pleasure. >> closing bell starts right now. >> it's time for the closing bell at the new york stock exchange wall street is watching the u.k. amid high level. we'll explain what it means here in the u.s. >> it is what is the bubble. we have more ahead >> i'm morgan in for kelly evans.

the new york times outlines how the leadership handles recent scandals we'll debate whether there needs to be changes. the governor of texas joins us live to discuss why natural gas could be the key to his state's economic future. the closing bell begins right now. good afternoon a very warm welcome. great to have you with us, morgan >> only briefly pause. let's have a look at the markets as we stand in this final hour of trade stocks having another volatile day. it is a pretty picture >> the dow was down nearly 300 points of the low of the session. let's dive in moving the markets

this afternoon we have the latest julia has breaking news on facebook let's start with you >> okay. the main take away from today back in the u.k. is that despite all of the turmoil she is sticking to her brexit plan and fighting on. >> when the british people just want us to get on with it. >> the turmoil was reig natnite. we also learned in that press conference a few hours ago she had not yet replaced him it has been widely reported who turned it down he is now on resignation watch and there's still a threat of a vote of confidence against her as well. that is why sterling despite

slight reprieve is still down 1.5% we look at things and if we look as an example the stocks are still as well. have the probabilities increased? >> definitely increased. the default has to be things continue as they are as she is very much painting a picture of and that means she is still in place. it will continue and go to parliment if she stays in place. that is why you don't see any rally, why it is still down. it is very very hard for her to get over despite the fact that we haven't seen more rez cig nations in the last 12 hours >> thank you for putting that into context

>> we are following a number of stories. walmart out with earnings. courtney is at the nasdaq with more >> hi. >> let's look at walmart first we have black friday next week we have an awful lot of very important earnings to get through first. if you look at the revenue and the earnings it was a mixed quarter. it is because of this currency drag the shares are lower by about 2% it actually took some analysis walmart raised the adjusted earnings forecast. it is the fourth quarter when you do some math it actually implies an earnings per share of 124 to 134. analysts were looking for 134. it is a bit conservative shares are lower about 2%. that might be why.

walmart has logged 16 straight quarters of same store sales growth in the u.s. coming in at 3.4% for the most recent quarter. it was above analyst estimates e commerce at 43%. it is the strongest rate we have seen so far this year. it is a small percentage estimated to be under 5% so that is one thing we need to pay attention to j.c. penney reported a loss of 52 cents a share revenue disappointing. jc penney pulling new guidance they want to give them time to dig in and see if they need to reassess that going forward. it is not over yet

back to you at the new york stock exchange >> thanks for that we look forward to numbers after the bell a critical new york times report and russian scandals. let's get to julia hi >> mark zuckerberg is hosting a media conference call. we saw them pair their losses and briefly dip into the green on this call he discussed the allegations of mismanagement laid out he is also talking about the latest on facebook's focus on content and enforcement. he has been on the defensive saying facebook is working to make progress on issues and

manipulation take a listen. >> in general there are a lot of issues here we were behind on. i think a lot of the critique of the company is fair and a lot of feedback has been important to take in order to learn and do better we have a responsibility to do that that's our primary goal here >> he wouldn't comment on whether anyone would lose their job as a result of the revelation he also said he did not think the proposal is necessary. he repeatedly said when facebook questioned that he was not aware that facebook had engaged in the consulting firm to work for the company. the call is still ongoing and morgan, we'll have more headlines. the stock was done 2 or 3%

and now it's trading just about flat joining our closing bell exchange is mark travis victoria fernandez and jonathan, senior managing partner and rick at the cme. good afternoon to all of you i'm looking at notes from you suggesting that the volatility, that it might not be fundamentals, might not be technical. it might be something else >> nothing has really changed from last month, two months, three months ago the same headlines are still out there. i don't think it's really from a fundamental point of view. we have gone through earnings season from technical levels we have blown through every level that is out there we have had a 2,000 point move in the dow we have had a 200 point move in

the s&p. as much as i like to reel things in a little bit, when you have these types of swings they don't help too much for me i think it's investor sentiment. the same catalyst is still there. i think they are getting a little too stressed out. we have talking brexit is the new headline we talked about interest rates, many things that are scaring this market. i think they are too tired of these major headlines that haven't come to fruition just yet. >> people are feeling stressed in the u.k do you think there's opportunities to pick up certain stocks or to trade the currencies around this >> we don't trade currencies, just equity. i would look at it as an opportunity to put money to

work if we could find discount from a private market value we don't want to talk about because they are smaller caps yes. i think if we look throughout financial history it is famous it lead to the long-term capital problem. i look at those as opportunities to find islocations. >> there are a lot of things sort of being attributed to. what are you watching and where do you think stocks go from here >> we look at earnings here in the third quarter. we are set to do eps at about 27%. we have inflation numbers that came out this week that still showed we have tame inflation. i think they can allow it to

slowly start to climb higher we saw turn around on potential china news when we look forward we want to look at companies interest expense. it gives us a good glimpse we look at corporate spreads it widened out a little bit. we are still less than half of where we were. back in 2016 watch corporate spreads and finally we are really looking at this it is something we anticipated would push this recovery forward. it has come down to about 13% in the third quarter lead by energy we need to see that stay low for inflation purposes >> plenty of excellents on the

fed and bits of data today how has it shaken out for the bond markets >> i have heard many people today say something along the lines of they were so prizsurpr the markets didn't pay much attention. they understood what powell said it is pretty apparent. i think that's why the markets didn't move. i do think that the fed continues to monitor others say maybe we are within shouting distance of neutral i think it is going to give a crack. he is watching the fundamentals like we are. you know as well as i do that the markets mainly run by machines especially are given

havoc in foreign exchange. all of the headlines move markets. in the end it's the human strategy that always wins out. i think this particular correction is more volatile because of the machines. listen, i may be wrong but i think it is an interim correction far from the big enc enchilada. >> what do you think will it continue even? >> i think the similarlies kind of going back through history is, you know,87. we took the ten year treasury and had a bad day. this year we have taken it from 2 to 320 we had a bad october you know, i think it is designed to support prices. i think it is an impact in them. it kind of, the lone shining

light has been the impact names. i think it will be interesting how things work out. i expect more volatility i would look at that as an opportunity to inves frankly >> thank you >> still ahead here, billionaire investor says tax cuts may end up being a bad thing for the market in the long run we'll tell you why he sounding for the alarm. texas is positioning for liquefied natural gas, why it is so importanto tthe future of the state's economy. alpha seems more elusive today.

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the global investment management businesses of [ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. >> welcome back. the dow is up 191 points as we approach the close cisco systems is up 2.3%

>> yeah. it had investor day today and put out long-term targets. it is helping drive that stock more volatility near the energy markets. natural gas prices fall of a cliff following yesterday's monster rally >> they noticed total stocks today a build of 39d billion, i have been watching these for years now. especially in the kind of weather we are experiencing. some speculating there was a long oil gas trade it caught traders off side it got squeezed. here is what we have what about the exports some people feel that demand

going out of the country is taking these up too. they call it the widow maker it is usually pretty volatile. it is supposed to indicate how the market is supposed to fair it spread and indicated a supply problem. a 15% loss today but still a 25% bump in a month's time you can see we just went under the $4 mark. >> okay. thank you very much for that >> over to you >> thank you very much >> before we get into this i want to ask you, he is here on the facility he is up there there was public excellents.

there are headlines about reaffirming a tariff jump on china january 1st. you did not hear him make any comments like that did you >> i had private conversation with him that issue did not come up at all. >> we are trying to figure out where it came fromt the growth n industry like liquefied natural gas. how much does its bring for the state in. >> as good as this is i think it's even better for texas the united states is now the global leader in production of oil and gas with texas leading the way. our goal is to get as much natural gas and spread it around as fast as we can. there will be trains is what they call them, shipped across the entire world it is the beginning of multiple

strains that will be shipping from this facility texas has been ranked number one in the nation. this is going to elevate that even more. >> yeah. there's four after this one opens with about 15 to 20 on the books depending what it will bring. you know, amazon coming to new york people say, you know, the taxpayers gave them all of this. they will never get it back. are facilities like this, do they contribute to the state >> understand this as i was talking earlier, what this does is it helps us educate our kids, build our roads, keep our communities safe texas receives what is call add several r

severance package. we'll have more money for our schools, more money for our roads and more for our communities. >> okay. we were just there as well we liked your state. there is so much oil they zroent a way to get it here the problem is the pipeline steel is largely made in other countries and subject to tariff. how do we fix that >> it is a problem that system of the manufacturers as well as pipeline countries have spoken to me about. i talked to him about this months ago so listen, the company -- and i think the administration, wants to see this get done they know countries will profit. states will profit the more we produce this oil and gas and get out of the ground we need those pipelines to get that done >> i have a question from the studio for you which countries do you think are the most likely destinations for your states exports of oil do you see this going around the

world or do you think with the trade tensions that it is going to restrict the potential destinations going forward >> earlier today there was an announcement of different countries that this is going to -- it does include china, poland and spain and a multitude of other countries i was talking to him here and he said he was an assistant in helping them cut the deal with china. i think the goal for the united states is to export this to as many countries as possible >> it is good for the trade deficit. it is good because according to that that 250 billion has come off because of exports and petroleum products you talk about tariff coming from china it is a few billion dollars industry >> right >> how much do you see it

actually growing >> there's no way all of the plans can be accomplished, is it >> it will grow more in addition texas is now also shipping oil from our border so we are going to see it increase that alone may be able to take care of the trade deficit. >> okay can you give me a discount on an apartment i love texas >> prices are increasing as we speak. >> too many people are moving here >> back to you in new jersey >> no. you to come back here. thank you for being there today. our thanks to the governor as well still ahead on the closing bell, we are awaiting big name earnings and more. we'll break down the key numbers to watch and bring you rumesults as soon as they hit. we'll tell you about the

$4 billion position in one of the major u.s. financials. we are back after the break. obvious. 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. cme group - how the world advances. ♪

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frmg welcome back. the dow sup about 153 points the nasdaq is up 97 points tech stocks, materials and financials are leading the way

higher let's get a check on individual market movers as well. the company sites slower sales in california due to wild fires there. home builder received price target cuts today. you can see all of this playing out in the share price it is down 17% stocks down more than 40% for the year continues to highlight the housing data and that reflected on these home builder stocks >> i'm watching shares of j.p. morgan >> i think the interesting thing here is not so much the stock

election you look at the top ten holdings you have j.p. morgan, bank of america. quite clearly a loud and big bet by mr. buffet on the u.s. banking system so i think it's a case of adding significant exposure than necessarily picking j.p. morgan out from all of them >> it is another company in that financial sector >> american express is here. >> lots of big investors in those stocks >> time for a cnbc news update hey, sue >> here is what's happening at this hour everyone president trump and the first

lady thanking marines. they sprinted to help respond to a near by fire at a public housing complex. the first couple traveling to offer their thanks frm the florida man accused of sending package bombs to several critics pleading not guilty in new york and federal court today. the federal judge said his trial date for july 15th the cdc reporting more american workers are committing suicide they studied the jobs of 22,000 people and found there was a 34% increase dween the year 2000 and 2016 in men the suicide rate was highest for those working in construction for women it was for those working in the sports and media fields tourists flocking for

beaujolais >> deaf jfinitely agree it is a pleasant flavor. >> i find it a little light. >> it is still delicious >> it is delicious >> it is delicious >> say it just like that >> thanks very much. >> see you next hour >> we have got 29 minutes left in today's session let's look at the biggest moverers of the day. >> trade moves the stock market, folks. show me caterpillar. the trade representative reportedly telling executives the next are on hold all of the industrials moved to

the upside we went to 130 >> you heard $4 billion, yields up today walmart had excellent numbers. it's not helping them. it's a sign for the retailers overall. walmart and macy's had great numbers. what's moving the markets here we talked china trade response let's get an update now. >> we started the day off in the negative we began to move higher late morning it followed the move we saw in apple higher if you look at what's responsible for the nasdaq 100

right now as far as the point gain is concerned apple is number one responsible for about 18 of those points followed by microsoft and cisco at 10. they had the stronger than expected results if you take a look chick names are among some of those leaders we were flat at one point and slightly lower for facebook shares to end the day. >> thank you >> thanks very much for that time now for today's frostbite. it could not be more fitting >> the brexit deal hangs in the balance. earlier today may addressed this topic using a cricket.

>> prime minister, you're a cricket fan. from the outside it looks like you're a long long way off getting the number of runs that you need is there any number that would fall in your cabinet before you resign as captain? >> could i just say that you might recall from previous comments that i have made that one of my cricket heros was jeffrey boycott. what do you know he stuck to it he got the runs in the end thank you. >> i love it it was not only a cricket story but it was the end of her press conference it was her drop the mic moment it was defiance. >> it because sticky wicket. >> she has a sticky wicket to deal with in general in the u.k. it did sum up the tone of the press conference and allow me to

me mention it is down about 1.5%. let's discuss all of the brexit news by bringing in d.j. thanks for joining us. i guess -- >> great to be with you. >> i guess the reason we have seen the british pound sell off is because it increased the chance of a no deal hard brexit. do you think that the british economy has prepared for that? >> it is a great question. i think many of them have been thinking about contingency plans. whether you're exposed to the british economy a global company is a very important distunginct. i don't think that the possibility of a crash out has been considered enough by companies both in the u.k. as well as their trading partners >> do you think the chances have risen? what kind of level are those at the moment

>> i think they have risen today and yesterday. what we see clearly is a political crisis on the u.k. side the question is there a government in the coming months that can negotiate and push through and implement a deal with the eu. it will not be with the terms. it is who is in the government and uk and do they have the support of the people, do they have parliment behind them in order to implement if that's not the case and we have seen significant defections today then i think we have to question whether there will be a deal and can it be implemented on march 29th. >> it is also a political crisis in the u.k what is that it sounds like the risks have gone up expo thnentially. >> i think it's important that you have an economic deal and

you have economic considerations that companies have to keep in mind and you also have to look at the political future of the u.k. will this country be united politically and will it be able to implement and follow through on the kplicommitments being mae >> when we look at the markets here in the u.s. do you think they are under estimating the risks? there's a lotov of political rik in the moment. >> i think there's a number of risks that while the u.s. economy looks very strong and we don't see a significant change there are significant developments in the european union around the italian government to blow through their budget deficit restrictions and the u.k. you have two potential assaults in europe in the first part of next year that i think investors

need to be paying attention to we have got around 23 minutes left until the close markets are looking pretty good here well off the lows. it is up 162 points. nasdaq up 1.4% still ahead, we'll hear why billionaire investor thinks the trump administration's tax cuts could end up hurting the markets in the long run. bernie sanders setting his sights on a major u.s. retailer. we'll tell you about the new bill he just proposed and how it ties in with stock buy backs stay tuned every investor should ask questions. is our money in the right place?

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apple has set a strategic partnership with one of the top independent studios. the tech giant signed a multi-year agreement with new york based a-24. the studio behind movies like moonlight. apple has been moving harder into this area

we'll let you know if and when we get a comment it is impartial of the faster growing higher margin business back to you. >> this is a partnership not an acquisition. does it make it less likely? >> no. this is not an acquisition again, according to the hollywood supporter it is a strategic partnership. if you get a condo we'll bring it to you. >> thanks very much. still to come, why paul tudor jones says tax cuts could hurt investors in the end that's next. a number of big earnings

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bell here are companies that hit new 52 week lows levels not seen since july 2017. it was at lows not seen since october 2013 pg and e sung to the lowest level since 2003. >> sending a warning on corporate tax cuts cnbc has the story for us. hi >> hey that's right paul tudor jones speaking at an event today and the timing of them in particular it is what he believes to be the reason why the fed has to hike rates the way they are and will continue to do so. he said that because of that it could be problematic for

investors. >> i think we'll look back and say that may be what pricked the bubble we have had a bubble for 100 years. i'm hesitant to say we are in one. >> of pocket of the economy and market where he did see cause for concern he said there have been scary moments pointing to different areas where the liquidity has been minimized he talked about how the stock market could respond ultimately if it becomes a bigger issue back over to you >> i want to make sure you have this straight. it causes the economy to heat up and overheat and the fed to raise rates and more aggress ifrly than they otherwise would? >> that's exactly right. it is in a sense that because

congress passed those tax cuts when they did where we are in the cycle that we are at today that the economy now has only room to go up and therefore the fed has to respond in potentially a more aggressive way. he is saying that as we look back over the course of history we will point to tax cuts and the timing of those tax cuts as being what ultimately did us in because of ensuing rate hikes that followed. >> great stuff thank you very much for that there could be really scary moments in corporate credit. ville to keep an eye out on that 12 minutes left until the close. markets are up half a percent on the dow. nasdaq leads the way up 1.4% we'll preview the numbers and the key thing to watch for in the release, that's next. >> and later shares of facebook

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thnch this is a spacex falcon 9 launching. it is being carried into orbit for cutter it is spacex's 18th mission for 2018 meaning that it is tieing the amount of launches it did for 2017 and another already flown booster being used in this mission. the plan is to try to reland that booster on an autonomous drone to be potentially reflown for a third time >> it is carrying a what >> broadcast satellite >> ri yes. >> so cool >> and they are even cooler in person >> way to show me up here. >> i guess you'll have to show come with me for a launch some times. >> i get to see banks, not as

exciting as rockets. very cool. after the bell we'll get earnings and josh has a preview of what we should be watching out for. revenue of 3.24 billion. other areasover foc of focus, i been the driver over the past two years. investors are now nervous and some bet gaming could cause softness here. question is that already priced into the stock which is down more than 20% in the last three months back to you. >> okay. thanks very much we look forward to that report after the bell coming up we'll have the closing countdown which is six and a half minutes away. >> and after the bell we'll get

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see that big slide earlier we were down about 2% and the lows and finishing it down that is the key but clearly there's a lot of risk out there. if we look at the s & p 500 we started negative it is effected by that soft sentiment in european markets. we have shaken that off. the dow is a little behind you the nasdaq a little bit ahead of that sectors today, tech at the top and real estate towards the bottom >> you notice we were negative until 1:15 or so and then boom, 25 points up

>> sit a huge story. it moved up 25 points. 3m moved 3.5% in about an hour we have a few other issues sitting out there visa italian issues they might want to get out if they won the next elections. they walked that back. these are the things moving the market >> banks doing well today. we did see yields come down a bit from some of the fed comments >> and $4 billion invested in jp

morgan the banks have done nothing. when he expresses interest in that kind of thing it moves the market >> i wantto come back to what we have for whole week for the s&p. today a positive day it comes to a performance. >> markets should be confused. how do you figure out earnings estimates when you don't flow if you' -- know if you'll have have a trade war. you're hoping it will only be two or three how do you model what will be going down with brexit they want more companies disclosing what the effects of a hard brexit might be in their disclosure statements. how do you model this?

i don't find any of this particularly startling >> there goes the bell we are up 0.8% on the dow. 213 points that's the first half of closing bell back to you. >> welcome to the closing bell stocks settle. the dow breaking the four day

losing streak the dow is up almost 300 points. up as much as 274 at the high. similar story for the s and p as well that index closing up 28 points. 2730 for that index. tech stocks lead the rally today. 7259 was up 1.7% we are now higher month to date for the s&p and the dow. still lower for the nasdaq the russell finishing the day up almost 1.5%. ip ves to -- investors getting ready. leading the dow today. cisco and walmart the biggest

decliner pg and e was the lagger. michael, how would you sum up the market activity today? >> second straight day we had a real midday rally. dow down owl most 300 points both days. it resilient but also indecisive they didn't see a lot of follow through. i do think a few thinks to note traders are looking at a market that is trying to figure out if these are the lows chinese stocks vastly outperforming the u.s. market this week. you can see a lot of leading areas that kind of drove us down are finding their footing. apple got a little bit of traction i think you're able to put some of these together and say okay they are the makings of something more i think the mind set has been wounded at this point. you don't see a lot of aggressive buying.

it has not been that climactic flush. i think some are waiting for that in the downside >> we know evaluations came back from their peaks does it sort of suggest he thinks that the pull back is finished and is it enough to convince others or no? >> i would say it doesn't render much of a judgment on the pull back because that was third kwarlt quarter money. so he was pretty much dealing a different crisis and evaluation. i do think it's a remientd their on a long horizon evaluations are not that demanding especially in areas that have not performed all that well. >> courtney, we saw markets turn higher and notably higher when we looked at materials and industrial stocks and the higher we saw there in the second half of the trading session today it is around the u.s. and china. do you think it's the biggest

thing investors are watching for right now? >> most definitely i think trade talks and tariffs are what are driving the volatility and the uncertainty of what's going to happen at the end of the day i think it's an interesting time for us in the marketplace where, you know, you can have brexit going on and have folks wondering whether or not powell is going to overshoot things come next year or not. in reality the number one thing from our clients that they are focused on are what's going to happen with tariffs and how will it effect company earnings >> it is interesting, it's obvio obvious we are still sensitive you did see that what's unclear is if that's going to be the necessary

ingredient >> it's only when the market is under stress when they say what is going to rescue us from this? >> i want to get over here right now. we have an earnings alert. what do the numbers look like? >> they are in line with expectations on the top and bottom line. let's drill down on the numbers here revenues at 1.04 billion eps 97 cents is what analysts modelled as well the company is light on q1 guidance and eps that's what could be driving shares down. they are down about 2.5% now in the earnings release they are saying while near term market headwinds remain overall spending remains robust. we'll find out more about the headwinds on the call. back to you guys >> thank you

>> they are seen as the leading indicator. >> stock is back to where it was two years ago. it essentially doubled and then came back. i don't think expectations were built up very high in the stock price expectations but clearly not good enough at this point. we are seeing good reports now we'll see how it settles out a lot of risk seems to have come out of this based on where the stock has gone >> all right we have a number of earnings still to hit the tape. so we'll stay and watch for those. retailers, walmart, dillard's and jc penney dragging down the whole sector they ended the day higher. this is october retail sales numbers came in above estimates today. again, we saw walmart trade lower. the numbers were pretty good.

walmart really does have if a ral ways home depot is housing related. i think you have to see a fuller list before we know what it looks like going into the holiday. >> do you like wall plamart at s price? >> i do like walmart i have bought and sold it personally over the last 18 to 24 months here you can beat the top line and bottom line. if you're lower on how it is that you're conveying your

outlook the market is very unforgiving. it is allowing opportunities for folks to come in and buy on these. it is in order to have a little powder on the side to go into some of these names that are ov overdelivering we'll see interesting numbers. >> in terms of the guidance where consumers are concerned have we really heard anything that suggests that the consumer is not still strong at least here in the u.s. >> from my perspective, absolutely not the consume ser two-thirds of gdp. it is the one piece of this economy that no matter how you try to slice the onion it is continuing to stay strong. so if you're thinking about the retail sector and going into the holiday season it is buying those names that you think are

actually going to be able to weather the storm and whether it's a walmart, target, amazon that is in the in its own name, you want to get in on some of these dips and pull backs that just seem to be unwarranted. >> mike, how are they set up >> stap ls has gotten this quality bid. i'm not sure if we have that trading yet. nordstrom earnings are out tonight. >> okay. so for the quarter for nordstrom

they are reporting earnings of 39 cents per share analysts were looking for 66 cents. it is a huge miss. they explain there's a nonrecuring charge in here of 28 cents. its credit related it is not included in the prior outlook. we'll dig into that more i want to put that out there the revenues did beat at 3.75 billion it is above analyst expectations cops also stronger than kpa expected analysts looking for 2.2%. they give kind of a messy number for the full price because they are trying to normalize to account for the anniversary shift. the off price segment, those were up 5.8% in the third quarter. there is revenue guidance and it looks as if it is a little light. you can see shares down more than 11% after hours not the cleanest report. we'll do digging and come back to you guys when we have more

clarity. >> thanks very much for that big movers there >> yeah. obviously confusion about this credit adjustment that the market was not expecting i don't think it blew it away in a clear enough way to cut through the gloom that we have at the moment. >> apple officially sflnapped a five day losing streak it is called the overreaction that was up today. in their notes they said the weak supply guidance was already reflected in apple's november 1st guidance mike, clearly this is out of 20% pullback these kind of bits of information from suppliers often of numbersas we get th it was backed up with guidance that's what hurt it so much.

>> i think it's plausible to say as of november 1st most of what we are hearing about is november 1st is a month into the current quarter. >> they had one-third of the kwartder they were guiding about done at that point i think it has been a lot more about positioning and people who are complaisant owning it. it was one of the last very strong to not give way it finally did i guess the fundamental case is plausible. i think you got a little bit of traction today i don't think it's the principal reason stock was down 20% or whatever >> courtney, what do you think >> you know, i actually agree with pliek, which i do fairly often. i think apple, you know, you have folks taking money off the table there.

we weren't seeing selling broadly. we were seeing it in some of the names you plight have gotten in or have been holding in your portfolio and it's time to get there some of the other names that might be down substantially more it is a greater opportunity, if you will we obviously saw so many analysts actually taking their price targets down in apple. the morgan stanley float gave it a boost here so i think it's up for grabs i don't know if you think about just again, the consumer and you think about the christmas lists i'm sure there are a ton of apple products sold over the next couple of months. >> we will certainly be watching that now, moving on theresa may in turmoil following the resignation today p p only two cabinet ministers.

may defending her plan and issuing a warning about the potential far no deal brexit >> i believe with every fiber of my being that the course i have set out is the right one for our country and all our people if we do not move forward with that agreement no one can know the consequences that will follow it would be to take a path of deep and grave uncertainty the british people want us to get on with it >> i want to show a chart of the br british poupd. we have a year to date chart of course this is a week shi announced she secured the eu it clearly suggests getting full approval for it back home in the

u.k. let's discuss all of this. thanks for joining us. what's your latest view as to whether her deal gets passed in full >> well, we have been assuming that a deal would in fkt eventually take place but that is i would bear in mind there are many things right now where political whims, political decisions are incredibly important in setting the pace of markets, sex change rates. these are not the same kind of forecasters. >> so these sort of ri ks so to be into ayount

>> so these. >> so they overprice given the risk >> i think it's two sided in fact you can see sterling is down quite a bit. you saw on the notion that there would be a deal, that there a it is for u.k. assets on these political. ch they were fairly stable they have high dividends over 4% that's not where the issue is. it comes down to the exclang rate sort of bearing the brunt of evaluation adjustment

it's why they would for your u.s. investors i pirm it matters for you and p it's not going to matter for u.s. equities does it actually become a bigger and more pied the possibility m. >> femme and it i think if you take a look at most of these regional shocks aai way from 2008 and 2009 you find most play

out in regional asset prices take a look back it fell much more than we would have ever imagined and it didn't slow global growth at all it had very material regional price impact we saw this in case of brazil a couple of years ago. i think if you were to think about threats to the european union you're thinking about something that rises to a larger scale but still, it's very very rare that beyond let's say a couple days or even a month that you see the world economy and world asset prices in a lastingly effected by regional issues one last point ton the united kingdom, it has slowed growth already. it is over the past year

the growth trend has deteriorated >> courtney, do you agree that it shouldn't effect the u.s. equity market? >> you know, i don't know if that's necessarily what he is saying i think he is saying it won't effect it as grave as a scenario as it is doinglocally. >> i think it's effecting the global economy in different ways it's just going to be a matter of how it will really impact, you know, u.s. stocks as well as

stocks on a global basis that are holding stocks that have exposure to the u.k. >> okay. >> this is every day business for the u.k. >> thank you >> thank you both. >> every day business for the last two and a half years, not necessarily throughout all of history. we have an earnings alert. hi >> it is out >> it's me over here >> oh. >> tricked you there it is a big be here. it was his first full quarter. the stock is up. loss was 2 cents a share nothing really to compare with a street estimate. the rev flew enue is big. it is also higher than what we were expecting you can see the stock up 13%

it is down 30% since the august ipo. back to you guys >> thank you don't miss a first interview with patrick spens tomorrow at 10:00 a.m. on squawk on the street facebook is under fire the stock under pressure and made a critical report about one of the top executives. one we'll talk to a bunl fund to see how she buys in this volatile market. stay tuned with quicksilver from capital one. you're earning unlimited 1.5% cash back on every purchase, everywhere. like on that new laptop. quicksilver keeps things simple, gary. and smart, like you! and i like that. i guess i am pretty smart. don't let that go to your head, gary.

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it's simple. easy. awesome. click, call or visit a store today. >> hedge fund returns fell 3% in october. it is the second worst and are now negative for the year. >> one class did have a good month. foreign exchange and currency increased by 1%. so is this a sign that investors should begin looking abroad for returns? joining us now to discuss is founder and ceo of rock creek along with cnbc leslie picker. i'll send it over to you >> thanks so much for joining

us >> nice to be here thank you. >> those statistics, those performance numbers, is that acceptable for it to be posting numbers like that? haven't we been hearing just hang tight and wait for volatility to return to markets? wait for some sort of correction and we'll show you what we are made of. >> you're absolutely right what happened is that in october volatility did go up they are going to happen next year or so and the wages are starting to go up so a lotov of things change not just in the market but psychologically. when we get to hedge funds we have look aid cross large

numbers of hedgefunds you find funds that did really really well and ones that were sort of in the disasterous rage. you expected funds to do extremely well what happened is people were probably less lev rejeraged tha they used to be. those returns were not sufficient for investors expected >> so you're borrowing that -- >> absolutely. >> the federalist management at the same time they did not expect what happened in october. so you're absolutely right it had an impact i think on what might happen to hedgefunds moving into the new year >> now, as liquidity gets taken from this as the fed hikes

interest rates here in the u.s., can we expect to see more swings of that nature where we see massive swings to the outside and how do you think hedgefunldss should be positioning for that kind of environment. it is for the angttivety that we are seeing and wondering what's going on here and how did we see moves this large >> so hedge fends as big and that's about 3 trillion in assets across the globe are still not the largest part of assets on the market when we look across what is impacting markets it has an impact it is the mutual funds a lot of people are impacted in the market hedge funds are one of them. i think when we looked forward what the hedge funds are

realizing right now and it's kind of a misnomer because within the 3 trillion there are many different strategies. they havevery different levels of exposure. what people are realizing is that the level of uncertainty have released a lot in the short term we do need to look long term it is a hard concept to swallow. you do need to look at three year and five year kinds of time frame because if you look at the best hedge funds they did perform well in october. they have a lot of foundations that do have a very different kind of long-term vision of their portfolios >> thank you so much for joining us we really appreciate it. >> thank you >> over to you guys in the studio we have earnings out and josh has it for us

what's happened? >> well, reporting $1.84 it is not clear if it is comparable revenue is light it clearly investors disappointed in the guidance telling us to look for 2.7 billion. it is light also it had been looking for 3.4 billion download gaming comes in at 1.76 billion. that's lighter than expected visualization, data center at 792 million. a analysts had 820 million it also misses automotive at 172. back to you guys >> thanks very much for that

>> it is extremely sense tifr as the cycle is going to wrong direction. tok is already down. this would bring it back to about a 14 month low so clearly that huge momentum surge is obviously being unwound. it is also showing a decline of 2% or so >> i think what's so noticeable is it has been seen over the last couple years is sort of a hot tech stock in terms of new technologies and where, you know, things like gaming and driving are all going. it had been planned accordingly. to see the reversal it has been pretty notable >> it has been viewed as being in all of the right places in fact it could still be the case longer term the piece of that, how much

inventory was built up, what was demand looking like, what were trade issues, that's what's interrupting the story for now >> time for a news update with sue. >> hello everyone. here is what's happening at this hour a. judge delayed his decision on whether to order to trump administration so return the credentials. he had been kpped but delayed the announce a drone video telling the story of paradise, california devastated by a wild fire. complete neighborhoods were burned to the ground 8,700 homes were destroyed president trump will visit california to meet with individuals impacted by the fire on saturday. the first windter storm bringing with it heavy snow and

ice. saint louse receiving 8 inches of know. communities are bracing for high winds and coastal flooding i can tell you it's snowing here the miser we have a few more year he has held up post since 2015 >> okay. thank you very much. up next, we'll break down how the collapse there ge stock and possible debt downgrade to junk is impacting the high yield bond market. st ted ayun ayun hey, what are you guys doing here? we've been helping you prepare and invest for retirement since day one. why would we leave now? because i'm retired now. so? we're voya.

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hi the story announcing a $15 billion increase to their stock purchase it is remaining and the board of directors directors directors approving 15 billion since 1990 they had about $177 billion back to you guys >> thank you sharesover of ge, the stockt

more than half of the value this year now investors are starting to fear the credit rating could be cut to junk. all of that is still rated bbb plus >> it is exactly right the market is being anticipatory about the possibility that ge debt down the road could get cut down to a junk rating they say some of the debt is already even priced as if it were already down the market is trying to get ahead of this. here is an overall look at high yield in the form here this is the biggest. it is compared to the iei. it is one of the treasury debt for 3 to 7 year maturities the reason they compare these two is it is a high yield.

it is around five years or something like that. what it is showing is when this line is going up it means high yield that is outperforming treasury that means that the spreads are compressing. it means people are very comfortable. earlier in the year we saw a couple of ripples in this market here is the more dramatic one. two down waves we have seen an under performance. it is not helping because of high yields here too to put it in context though this is not showing great distress. it would be something down here about a 20 point underperformance >> we started this segment talking about ge and certainly something to cover the wall street journal if you were to see ge credit

$115 billion that it could, you know, make up a tenth of that market here. oil and energy are a much bigger part of this >> oil debt is definitely represented in the junk index. the reason people are afraid of that idea going into this basket is essentially that this has to own the index. all of a sudden it would have a huge chunk of the index in ge debt it would have to swallow that. the question is would the market comfortably do that? >> thanks very much. we have more earnings out. >> earnings are out here it is down about 14% for bottom line reporting an adjusted 95 cents per share. it is compared to analyst consensus. revenues are light coming in at

1.35 billion also the comp sales up more than 3% which sounds really good especially for retail but the street was much more optimistic thinking it would be higher by almost 4%. the guidance looks a little bit conservative here as well. shares down about 14% after hours. back over to you >> okay. thanks very much for that. it is down 14% we'll discuss whether facebook's coo should step down in the social media giant's recent scandals. muting bell back thera up e cole e cole ofines

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progress we have been talking to people for some time. >> it is creating a new independent body that people will be able to appeal to. it will determine bl contents should come up or stay down. >> when asked about sandburg for allegedly mishandling the russia legislation zuckerberg came to her defense. >> she is doing great work she is a very important partner to me and continues to be and will continue to be. she is leading a lot of efforts to improve systems in these areas. as i tried to convey while these are big issues it is because of the work she is doing.

>> saying that they were unaware facebook definers which the new york times reported was tied to articles spreading misinformation over to you. >> thank you very much >> she is potentially the defense for mr. zuckerberg sculley is joining us on the phone. he taught us he thought sandburg shower fired is that too strong or was it a legitimate thought process >> i think at this point it is very clear that it is not what the company is thinking. the board has come out in support and you have to remember that in addition to leading the

policy side it is the entire business for facebook. she leads all revenue and part sn ner ships. facebook has to inflict a little more damage at a crucial time. >> given this new york times report which didn't paint either one in a very positive light to say the least. >> well, i think misjudgments were made. i think it would be a terrible mistake for the board of facebook to fire sandburg. the way i would look at it is there are some extremely experienced wise people on the facebook board that maybe you got, you know, some of these people have been around far long time i think that the board probably needs to know more about what's going on

to fire sandberg would be a t terrible mistake i can't imagine a worse decision than to fire sandberg. >> you mentioned that sandberg oversees the entire business side of the company. so advertising, everything that you would basically see going to the bottom line. it seems to be those things would suffer and they are not already suffering. are we not seeing any business impact from all of these issues that have been in the news for well over a year now >> well, we haven't seen many advertisers saying we aren't doing businesses because of these types of things. what we have seen is that some users have started to use

facebook less and it is rieching some polices and it's immar than facebook it seems like it is in response to a big account criminal do you think regulators have to take down them from being able to relay and just to be proact ifr themselves to regulate this and put these bodies in place themselves >> i think that sandberg and zuckerberg need to get ahead of the problem. if they are in a position of reacting i think there's major trends that will be huge in terms of

facebook's future. one is the gdpr that went into effect in may of this year it talks about privacy principals and peoples controls over their date that this is only going to back more important. the very high profile ceo's speaking out you said wait a minute, i think people should have more rights over their own data. they are fundamental issues that will be foundational it is why taking sheryl sandberg out would be a terrible mistake at this time no one understands it better they made errors in judgment it is this particular independent body is strategic or not i don't know

more importantly is to follow the importance of the gdpr and more and more i guess consensus building up that consumers should have more rights and own their own things >> it is foundational to the business models. >> yeah. >> i'm sure it is a topic we'll be talking about a lot more. thank you for your incites up next, senator bernie sanders ramping up his fight for higher wages this time against walmart. deilarstig aadtas e rahthe 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.

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can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital. wove got a news alert on carl eichen and dell zblool carl eichen saying he is ending a proxy fight as it related to the tracking stock and the transaction with the vm ware he said they sweeten the offer enough enough shareholders are in favor of the detail and it wouldn't be worth it to continue the proxy fight. and that's on shares. >> senator bernie sanders sets his sights on wal-mart calling ni the company to raise the mimum wage we tell you about the new proposal ahead at' handle all your apps.

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senator bernie sappeders introducing a bill today aim at getting wal-mart to raise wages. ylan mui has the details >> morgan, this bill is called the stop wal-mart act. and basically it prohibits the company from buying back any stock unless it does three things first, pay workers at least $is a an hour. secondly it would have to offer up to seven days of paid sick leave. third it would also cap ceo compensation at $150 times the median worker wage over in the senate, the senator sanders is the sponsor but in the house the responser is representative rokana today he told us the specific reason they are going after wal-mart. >> wlrm is one of the worst on stock byebacks they are spending

$20 billion on buying pack stocks almost half is going into the stock buy backs. and they could pay the workers over $159 if che channelled it into worker raises >> technically this bill covers any large employer with more than 500 workers and there is no chance though that is going to become law. basically the chances are zero but the representative and sanders think the bill could have an impact they point to a similar bill introduced targeting amazon. they said after the bill came out amazon agreed to raise wages. jeff bezos even tweeted thanks to senator sanders so, guys, they do believe the bully pulp it can work in raising worker's wages. >> ylan is there good political reason for mr. sanders did it boost miss popularity. >> i think senator standers is a litmus test for the left on a how some of the progressive populist ideas play amongst the

electorate it got him a lot of attention during the 2016 presidential campaign he is a member of democratic leadership his proposals carry a little bit of extra weight now. >> you know, ylan, the irony here is that wal-mart was the first in the retailers to begin raising wages a couple years ago. now you have amazon said they are committing to $15 an hour or greater. given the tight labor market i would imagine wal-mart may follow suit just because of the fact that it's harder to get workers. >> right so this is something that might be happening anyway, given the hot economy, given hot job market but i think the concern for companies is that the bar keeps moving there's been debate amongst democrats what is the appropriate level for the minimum wage should they fight for 12, $15? something higher so the question for companies is how far does this go >> ylan, thanks very much for

that mike, i mean, $-15 an hour we've been debating whether they can follow suit with amazon. originally the thought was only in certain logistics roles they can but across the company it's. >> it's a bigger hit the broader question is legislating minimum wages for certain categories of companies and things like that it's difficult what's interesting to me and fascinating is the way that the share buybacks have become so villainized. and it's a common topic of conversation among, you know, progressive politicians, that this is a bad act to buy back stock. it's worth reminding people it used to be illegal until the early 80s a company wasn't allowed to freely buy back shares. >> it was considered stock manipulation against the rules you did mostly dividends i'm not saying we're headed back that that direction. but it's fascinating the obscure decision about capitals allocation is out there. >> in the meantime the shares of pg&e getting a big

boost after hours. following big losses today and this week. adidi roy is in san francisco with hi, wilf. pg&e shares in the after hours, up 37% that's ae number considering that after the regular session they were done 30% so they more than made up the losses for the day but, the shares were down more than 60% the last six days, losing nearly $16 billion in market cap over that period. the company has been slapped with at least two suits we know of by fire victims as you know northern california's campfire killed 56 people, the deadliest most destructive wildfire in california history pg&e noeflted regulators that the utility transmission line experienced an outage before the fire gone. shares are up now 36%. we are frantically trying to figure out why that's the case looking for news from the

company trying to figure that out back to you. >> okay, adidi thank you. mike quick final thoughts. >> strong rally. the market lacked follow through on the upside. 2% spread on the low to the high. >> morgan, thank you see you again tomorrow "fast money" begins now. "fast money" starts right now. and you're looking at a live shot of a very snowy new york city where the snowstorm has wreaked havoc on the show. live from cnbc headquarters in inglewood cliffs new jersey. the weather is having making it hard to us tim seymour in las vegas brian kelly and steve grasso who made it to the nasdaq market site good to see you all tonight, guys safe and sound. tonight check out shares of nvidia crushed after hours the company reporting earnings many called the semis th