the there you can see it has come back. thanks for watching power lunch everybody. >>coming up it's an all bro edition of closing bell. >> welcome volatility kicking off the week yet again, what's behind the move coming up i'm live outside the houses of parliment in london where theresa may unveiled on the brexit plan. a live update from london coming up new developments in the nasty battle between apple and kw qualcomm a new reported says retail investors have been buying up general electric find out why and what it might

mean coming up closing bell starts right now. welcome to the closing bell. let's get to the market on this monday dow coming back after being down 507 points let's begin with what's driving. we have more on apple's turn around we have the latest on brexit steve has a look at why a december rate hike is now in josh let's start with you >> apple staging a come back here battling its way back in the green.

it is going back to mid-2016 big news involving apple today, specifically with qualcomm it issued preliminary injunctions against the sale of seven older iphone models. it sounded like bad news for apple. apple dispute that had saying all iphone models remain available in china apple filed an appeal to overturn that ban. back to you. >> all right thank you very much. markets take a big leg lower after theresa said it will be delayed. we have the latest on that >> yes she has called off what was

billed as a make or break final vote due tomorrow because she was staring at a major defeat. she explained the reasons why. >> i listen very carefully what is being said in this chamber and out of it. to what is being said up in this chamber and out of it from members of all sides it is clear while there is broad support if many of the key aspects of the deal on one issue the northern ireland backstop there remains widespread and deep concern >> she now heads to brussells. it is something that seems unlikely to be achieverd.

he said we are ready to discuss how to facilitate u.k. ratification it hit a low and ended the day still down sharply on fears of a no deal brexit and question marks about theresa may's own future she has given herself a few weeks to salvage her deal and we learned moments ago her first stop will be to see the dutch prime minister tomorrow morning, guys >> thank you he is typically here following the brexit talks the probability of the december rate hike it has fallen to a four-month low. steve has that back at he headquarters >> markets around 70% about a month ago after the november fed meeting. it traded as high as 89%

let's get a feel of how unusual it is. with six days before it meets compare it with other hikes this year 95, 85 and 100% for the meeting. it a quarterly hike meeting we have had all year. weakened and global economies. it creates its own reality one sees a 20% chance of recession next year. the indicator jumps to 36% some economists are pushing back on how much of a slowdown to expect j.p. morgan writes while we reck can go noise that risks are skewed to the downside of our 2019 forecast -- look for the fed to slow down until the fight between the market and bullish economy is decided don't ask me what i think.

>> steve, i was going to ask you not nsecessarily what you think but what we'll be ahead of doing. it will change that decision and also when do fed officials stop talking? >> it is in what is called the blackout data. it is the producer price index and retail sales i believe come on friday and that's it. that's all you are going to get. no more fed speak. no more jobs report. no more gdp data some of those others will flow into it. i have to think the fed follows through ton the 70 percentile to join all of these forces i think it factors in thinking about global economic weakens

and how it carries onto the united states. joining you are closing bell to talk more about the volatile action we have tony and arthur from financial services and rick is at the cme in chicago good to see you. >> the apple old school tech turn around rates, what mattered today? >> actually all three i think they are probably almost forgsed into hiking in december. they don't want to look like the president abused them of that and secondarily you run the risk if they don't hike the markets will say wait a minute what do they see that we don't

see? they have got to have that fear. finally, apple, people were afraid that apple was going to be right in the front lines of this war around our way and whatever and that they would ban all sales of apple iphones when that proved not to be the case they came back point wise in the dow apple is the strongest. >> we are seeing these strong reversals. it feels like it may be climactic or feels like it is constructive previous ones haven't gone any where. is it building a base or still fragile? >> it is still fragile we saw lot of money coming out of industrials last week that is very helpful the argument was people were too calm they weren't scared enough it helps to try to get the last seller out also what is helpful is seeing the semi conductors.

that's the group that let us down they have gotten a bid look at this it is moving up. you know, maybe that's a trait maybe they want to sell into that strength. if you can create that it would be a very very good sign in terms of the industrials the defense stocks are up. the president is looking for $750 billion there is defense spending all over the world that is a good sector to keep your eye onment it is one we would like all along in terms of the industrials. >> back to the macro here i here europe may be slowing. china has suffered a bit of a slow down. what are you looking at to sort of get a grip on whether there were signs of an economic slowdown >> there are plenty of signs of a slowdown but the question is whether or not they will come to fruition or be seen in the first quarter of next year there are three big issues they

would be dealing with right at the start of the year. brexit, italy is still submitting to the european union. u.s. and china trade relations to whether or not the u.s. imposes new tariffs that are already in place it's these major issues markets are grappling with yields will be on the downward pressure markets start to think whether the fed has reached something closer to neutral which markets tightening the financial conditions tightening is very suggestive of. it is getting closer >> what was your take on the rate expectations a few moments ago? >> you know, pretty much every interest rate is darn close to four month lows.

it is very similar to any short rate and as much as we like to look at it especially when you're within two or three weeks of meeting anything much beyond that is just going to continue to move. it will have a lot of trades in between every day. to me they are seeing what we are seeing i think that the global menu of reasons to pause is rather dramatic whether it is brexit whether it is political turmoil, what is going on with macron in france i think in the final analysis you can actually work through those faster than some of the issues i just described. all in all i think the belahavir should give a big a plus with regard to the u.s. the dow is about a third of a cent from the highs of the year. those go back to the summer of 2017 interest rates have come down. markets get it

markets get the self-adjusting nature of the back story, the way it feeds back into from equities into the fixed income space. it also goes to d.c. and i'm pretty sure fed officials will pay attention. they will have more of a kplun ca -- communication issue. they are saying we are darn close to neutral >> do you think any pause is limited to rates or could it extend >> i think that's important. they haven't talked about that but i think the market looks at the balance sheet rolloff as being one of the major catalysts for tightening financial conditions if they were to pause it would be a tremendous signal that the fed truly gets and understands what's happening to financial conditions >> all right europe will open again tomorrow. >> it looked that way. >> what are we looking for in terms of whether there is anything behind this >> i think you'll wait and see

how prime minister may reacts. is there fear her government can fall or are things wide open she is having breakfast tomorrow we may get news out of that. so it will remain a key issue. you know, go all the way back to when it was loaded and the market took a giant tumble and then for months after that they said what was the big deal nothing happened now it's starting to happen again because we are getting close to it. >> i'll give you the last word credit come back to that ton corporate level any concerns you seen recently in terms of expectations >> yes well, first it is clear that the feds policies are finally transmitting because it is one of the ways that it transmits. it is not just about stock prices but credit spreads. there are stories that are a call on credit and how investors should be liquefying for when that turn arrives.

we do expect a lot of volatility as i said earlier next year. it is a good time to be leaving some for when there's movement for the laws of physics in mind when an object in motion moves it stays in movement no one can tell because of huge policy issues in the way >> thank you >> thank you guys. we'll see you soon coming up on the closing bell the president reversing his stance on defense spending calling for an increase next year we'll look at how defense stocks are reacting to that news next and later we'll talk to chris ailman the closing bell back after this quick break. what do advisors look for in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain.

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welcome back dow session lows down 507. briefly goes into the green. apple trading down 76 points president trump reversing his stance on defense spending calling for an increase in next year's budget we have details

and how defense stocks have been performing on this move. >> it is stunning. backing a $750 billion budget proposal for fiscal 2020 which is higher than the $733 billion that the pentagon expected to request. it is a sudden reversal for trump who last week tweeted that u.s. spending on defense is crazy. he flip-flopped earlier in the year urging each of them to slash 5% from their budgets. today's news giving a big boost to defense stocks. shares of raytheon but not enough to totally recover when the defense sector last over 5%. they are urging investors

pointing out defense spending won't be finalized until they strike a spending deal so it will take some time. >> any way to tell which of the major defense companies are highly leveraged in the clangha we are talking about >> we are looking at the defense contractors. these are the names that moved higher than trump getting elected in november of 2016. if he were to be elected it would be favorable it is those names that are moving higher on this projected budget >> some of the best components all day long thank you. just about 40 minutes before the bell the dow is down 77 points. still ahead, a new report says retail investors are buying general electric find out why and what stocks they are selling coming up first a commercial truck

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some individual market movers, the firm cuts its price target 28% down to 220 a share saying management change signals uncertainty. this unexpected retirement at fed ex express out of character they say it indicates a potential miss >> ups and fed exreally dragging it almost seems like it is about a bottleneck and cost issue. >> i think it comes back to something jim talks to us a about which is drivers and shortage of drivers and higher wages. at least not an upside is a potential pressure on fed ex up next we have travel software platform that will be taking

private by affiliates of evergreen. it is an affiliate it is about $4.4 billion it is one of the larger private equity deals elliot involved in so much they run the whole gamet and they will take you private >> when things go bad they are distressed >> and don't think about defaulting on your debt. they will be there for that too. >> also we talk about trucks shares falling on the heels of the downgrade. goldman outpacing demand stock down about almost 6% it is like 9% earlier. the $23 price target with this still he sees further downside it is one of those that really looks cheap if you did that. it is down 40% even before this

downgrade move it is also bringing cummins engine shares down too about 35 minutes to the closing bell dow down and s&p about four. we'll break down which stocks are leading this dramatic turn around the stock is actually up now but it's been back and forth a lot today. this is after the chinese court banned the sale of nearly all iphones. we'll break down a complex story veort u and tell you wha insts need to know after this break ton the closing bell. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish,

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>> welcome back. has fbeen the stand out all day long we had a series of big money center banks let's get a cnbc news update hi >> hi there. here is what's happening protesters for and against brexit expressing their dismay after she decide today display a

parlimentary deal. >> more than a dozen bloomberg executives on fraud, theft and bribery charges. they say the pay to play scheme was centered around company headquarters traffic brought to a standstill on a virginia interstate following an earlier afternoon accident cold temperatures which resulted in ice forming at an exit ramp what a mess. they are leading to cooperstown after they were selected to the hall of fame by baseball's veter veteran committee. smith retired and is the third

leading in baseball. that's the cnbc news update. i'll send it back to you >> thank you we have about 30 minutes to go in today's session. let's take a look at the biggest movers bob is here on the floor let's start with you >> we had a remarkable day we opened up and slid down may talking about postponing brexit it a around 12:30 apple helped move the market around it was quite remarkable. ibm opened on the downside it when down to 118 or so and then turned around right after the european close 121 is where it is trading right now. boeing, 325 right now. boeing as low as $315. it moved up about $10 in the last several hours

stuff has nothing to do with tech good. it did not have a very good week it too was down early on as low as $43 you can see it too moved up now trading at $44 some stuff is not moving it is again the financial stocks we can't get anything to move in the financials here. gold m goldman i don't think got into the territory. you can see it moving up here at least not down two or three 3 like usual back to you. >> all right thank you very much. talk to you soon let's send it to bertha. >> yes positive since early morning and before we saw that turn around in apple it has not helped in terms of small caps they continued to sit up this rally. chips breaking a three day

losing streak really helping to move things higher this is the biggest gainer in the nasdaq 100 it is in terms of point impact coming from facebook and microsoft. moving out with today's move up. the big momentum coming from that reversal, at one point it was down more than 2% for the year it looks like it is trying to get back into positive territory. this stock technically is really facing a lot of pressure to try to move higher apple now for the 18th straight day trading below the 200 day moving average it is below the long-term trend. it is not the longest streak we have seen from apple the longest was in 2013 when id traded 194 days. david, back to you >> okay. thank you. you have heard reference to apple's strange day. it has been that it was 9:00 a.m. when we first brought you the news of a court

in china that issued a preliminary injunction which was all iphones either sold or imported into china by apple for a company that sold 11.4 billion most of them made up of iphones last quarter you can imagine it would be quite a negative for apple investors. here we are. qualcomm said you'll ban the important sale apple said all of our iphones remain available we interpret this court's decision i have not shared this but it is their interpretation and there may be things that are not being shared because they can't be they say it only applies to ios xi their belief they can continue to sell their phones to everybody who wants them in

kli china. they came out with a statement later today in which he said that the preliminary injunction orders are there now they are not specific to those installed on the phones. the court issued the orders. those are part of the court system apple, by the way, is appealing the ruling overall earlier this morning they also had this to share. it is part of a long-running very nasty dispute between these two companies. apple suppliers have not been paying qualcomm for the royalties it says it is due. apple also moved to a different supplier this morning they said qualcomm's efforts to ban our products is a desperate move

again, reiterating all iphone models remain available in china. one has already been invalidated and we'll pursue all of our legal options. those include appeal of this decision in that court let's bring in the analyst that covers qualcomm. also with us gene is here. let me start with you. how do you view this given the moves today in various directions and with opposing statements from either company >> i think china has made it clear they are siding with qualcomm you know, the region tends to be politically motivated. i think they are, you know, they are incentivized to side with qualcomm it is important for them to move to 5g. it can't happen without

qualcomm you have the country ruling on 20 or so different patents >> you 22 cases filed in six different provinces. not clear if they will get anything similar >> i would be shocked if the rulings we see are in favor of apple. >> you expect we'll see more of these? >> it is ultimately paving the way for a settlement between the two companies. >> and you believe we are going to see more because the chinese government favors qualcomm >> the way i look at it is, you know, we have got this trade war that's escalating. we have tagged zte we this is their way to retailuate by going after america's largest company. between the two china needs

qualcomm for 5g. putting an injunction benefits a lot of home grown companies i think there's a big political element here sq sq >> do you agree? >> i do. i would put it this way. i think that the truth lies several layers below the headlines. it is good to get at the substance of what's going on we talked about some of that substances are still selling phones today separately is that when you think about the opportunity and

enforcement tribunal that process takes years. a lot of it will be gone by the time it sorts itself out i believe there are bigger things going on around trade i do not believe it will impact the sale in china. it has ban daily thing waiting for the stock to find its footing when the news is not great. is it just kind of noise in the back and forth with apple? >> i think the stock action is important. thigh have had four waves of negative news since they

reported the quarter to me it's a classic example of thinker taking their eye off the ball but ultimately it will lay the ground work, this view is progressing more as a services company. i think it is critical you hear a lot of people talking about it it is hard to under estimate this is a different type of a country than it was a decade ago. i think stories like today will be viewed with less anxiety as they adopt more of a wholistic services approach. >> this is up almost 3%. both countries saying very different things steve recently eluded to ongoing

talks with apple do you think they are talking and do you think a settlement becomes more likely after this >> i definitely think they are talking and i think a settlement is likely. i think gene had good per specific ifr in china there's no such thing as a preliminary injunction. apple can take it and go back and say plea re-review this. while that is going on unlike in the u.s., that injunction stays in place >> it doesn't seem to be having any impact if they are selling all of the phones. >> let's see what happens over the next few days. but i think that's very good chance that those phones will be taken off the web site as far as it relates to qualcomm it would be a dangerous point to do that.

a million or so people are employed it is a measurable number even far large country like china i think if we are in the betting game here my sense is that the injunction will not happen >> and finally back to the settlement itself. it does underlie a lot of views on both stocks, but in particular qualcomm. it would be given the importance of all of that money they are owed >> the reaction seems very muted in my opinion. if you get a settlement we are talking about as much as $1.50 of earnings boost. you put it ten times multiple thoonon that i would argue stock is closer to $70 versus where it is trading today, 57, 58. we are looking at news that's

broken today and, you know, have to believe that qualcomm stock is a long buy. >> guys, thank you >> thank you >> we appreciate your incites. >> thank you dow is up 72, not far from session hies -- highs. under armour ousted executives sources that two individuals that worked in the sports marketing department are long-time associates and reportedly face questions about whether their spending was appropriate. shares are down 4% back to you. >> thanks. yeah i mean obviously it is unwinding a little bit of a good feeling

from urnnder armour a week ago with seth curry. maybe it goes up closer to plank. we have no evidence of that. >> keep an eye on that story about 20 minutes left of the opening bell dow has gone positive. s and p up 12. when we come back jj kinahan explaining why they are adding to the their ptfioorols. bring you numbers and instant analysis later on the closing bell

some of the big lose herb, jp morgan, united health got a news alert on disney >> that's right. disney announcing the studio surpassed $7 billion in global box office for the calendar year this is only the second time any studio has topped that 7 billion

number this is after ralph breaks the internet and disney has at big move i ha movie coming out, mary poppins returns. we have details when closing bell returns [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

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mom. ♪ welcome back dow trying to come in after a big 500 plus point upside reversal earlier today we have movement outside the courthouse in vancouverer whe we the hearing is being held. >> reporter: day two and we are still awaiting a decision from the judge here as to whether cfo will be granted bill her lawyer this morning kon continued to argue she should be granted bail

she has been if custody now for over a week. she is facing fraud charges for alleged sanctions violations once we have a decision extradition begins if she a350ppeals it could take weeks. this is in downtown vancouver. they have a large chinese canadian community that's lot of interest in this case she is seen as corporate vebty and it is so important back to you guys we have market flash on chip stocks seema has those details. >> it has been a relative out performance in comparison to the

s & p 500 and the dow. a number of stocks have head this comeback. it is helping the tech sector see a gain of around 1%. we'll have to see if this trend continues, daifrvid. >> thank you retail investors getting a bit scared last month marked the 24th consecutive week from equity mutual funds let's send it over to leslie she has more on that important story. >> i want to show you a chart among mom and pop investors relative to professional investors. as you can see the orange linenline indicates it has been trading with some of the lowest levels

of confidence and well below that institutional investors it spoke with equity trading desks. they point to this and mutual funds and more notably index funds. it is causing them to take more funding out. you can see the vicious cycle continues. this pattern first immerged in october. they say it may speak to the persistence of the equity market turbulence, guys >> interesting >> you know, there's also been outflows it seems like retail investors are not sure what to fear the most out there >> it is interesting because a lot of people are looking at this market and saying why now

we have seen these risks they have been out there the fed has been increasing interest rates you could point to the yield curve but a lot of retail investors are looking at ways to kind of trade these scenarios. they have been the answer to that psychologically it is easier to say i will take risks by selling whether it be fixed income or equity it is to sell individual names and hold affinity to >> it is hard to under estimate index funds in particular. they own as much as 30 to 40% some times >> that's right. >> they are enormous >> that's true a lot of people point to the fact that about 40% based on whatever estimate you look at about 40% of the flows are currently fundamental oriented they are doing analysis and

determines what value they think this stock is worth. that means the remaining 60% are being conducted through passives where there's no real due diligence and analysis of individual companies they are trading based on other factors whether or not it gets included in an index or whether or not it is telling them to buy or sell a certain security a lot of people are pointing to this and saying when we start to see a correction that we could start to see some of the reverse of the different factors that have been driving the market higher in this move over the last few years or so >> yeah. very important to keep an eye on those free riders as we call them thank you. >> when we come back we'll get the closing count down and after the bell we'll be joined by chris ailman he'll discuss how markets are

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appear on the naz democratsdaq l facebook having a good day added to the buy back. it's not to sort of end on low note jpm is one of the leading banks. >> new low there right across the board you would have thought they would get a bounce on what they saw today. they didn't. it's a wosign brexit vote delayed. we hit 2603 on the s and p 500 in these circumstances, yes, technicals matter. people ask me, yes a big number like that matter. we broke down again hit the lows right after 11:30. notably lifted when on our air we were talking about apple and important technical levels for

apple. it seems very thin far market rally. ringing the closing bell here celebrating its 2018 investor day. of maritime containers celebrating that company's first day of trading and welcome to the closing bell i'm carl david will rejoin me in a moment along with mike santoli. here is how we are finishing up this kind of crazy monday on wall street. nasdaq, as you can see up about three quarters of a percent. it will close lower by 5 points. coming up chris ailman and david

rosen berg will join us. take a look. it was microsoft and jpm have the biggest gainer a big day for defense stocks mike, let's get your take on what happened tonight. >> you know, it was a pretty impressive comeback but a way to make a flat market seem like good news. it really was flat if you looked inside it two stocks down. not great. you can't really have too many rallies when the banks go down more than 1% as a group. the market, you know, this market brushes to the next test it seems like. we knew that the lows, 2,600 was out there and it wants to just kind of punch through and see if they find sellers down there they didn't. so i think it's another, you

know, you take it as it could have been worse. you to have a few of these before you know this is now defined. >> is 2,600, does it get firmer with each attempt? >> i think the ball is now in the feds court to see where we are headed on the next move. the big story was facebook going out there and buying $9 billion we are making that announcement stocks up 25% over the past 52 weeks. showing conviction that it is under dr undervalued. >> how about you was there a test was there a poster child as far as you are concerned >> well, i think the most important thing about today is there seemed to be over the weekend and certainly this morning a capitulation it was all apocalypse now and we

started the day, as you know, that first hour and a half was abysmal. we were going straight down from the open the fact that buyers came into the market ignoring all of this news about eminent, rescandal happening soon i think was that hay are buyers at this level we can retest this and retest this we have things coming up over the next several months. people start to report their earnings and we are going to hear how good or bad the economy is and how good or bad companies earnings and expect statioatione if you look at those numbers up three quarters of a percent it is nice to see so many pundants talked about how you had to put your money elsewhere. if earnings are grown where are

you going put thatmoney? >> i agree perception has gone 180. two months ago we were talk act solid earnings. so perception of having a negative feedback is how i see it >> i'll give her credit. we were in touch and she said things are so gloomy we might

end up higher today. she should take a victory lap to close. he sounded off on volatility and the fed. >> i think we are going to see a lot more of what we just saw which is a lot more volatility i think in the next year we'll be from where we are today ten down and ten up. >> there's a high probability that this hike will be one to last far long time >> so you don't think they will hike in 2019 >> no no no no i don't think they will hike in 2019 the consequences of it you're sighing it in china doe mesically, on the private side

so we are seeing this hike playing out and the areas of bigst bubble i always look at commodities right now we have the goldman sachs commodity. it is down 15% over the last 40 days never in the history of the fed have we had that kind of a deflati deflationary impulse eight days before a hike. >> first of all do you agree that the fed might be sidelined after december and would the markets be okay with the conditions under which the fed goes away for a year >> i agree there will be one more hike and it's probably not going to be more next year the reason he is saying this is he believes it will be a downturn it sounds like a significant

downturn of a global nature. that's where i think we disagree i can see that there's a slow down because we have had 22% or 23% earnings growth in 2017 and 8% of that was tax cuts. so the 13% is probably going down but to say that it is going to disappear implies companies are not going to be buying back stock. there is dividend growth and many companies, the big tech companies on microsoft and amazon, there are a number of big names that are a big percent that will have earnings growth of at least 8%, probably 10 to 15%. the implication that there's no earnings next year and that that will be across both the u.s. and globally i think is extreme even with the level of debt in the marketplace and some of it which

is not particularly high quality debt i don't follow that reasoning given what we are seeing >> are we in a position of rooting for the fed to basically see things as vulnerable to quit after december >> i would think that the fed does raise rates in 2019 it's probably not a repeat of 18 but wage growth is two months in a row firming up that is the one data point they are fix sated on no one really knows how tariffs are really baking to the cake here i would expect the fed to stay on its course into 2019 but not as many hikes as 18. >> as far as jones goes in june he told us that the year would end sharply higher he was shocked to see the way the trade war turned >> yeah. he thought maybe the faang thing

would keep lev tating. >> he is flexible, anymonimble it might be the case or maybe that's what he is hoping for >> one thing karen mentioned maybe you see lesds share buy backs in 2019. i hope that the boards are sitting around now and they are out sharpening the pencil with the amount of selloffs you could buy your top line growth here with most of these companies off 25 to 30%. presumably -- >> is it cash or financing >> in the tech world it should be cash. most of these are flush with cash they don't need to finance it with debt. >> typically it is the key when they find their own stocks going down they get more reluctant. it is the time to pull the trigger. you have sellers saying i'm nowhere near my 52 week high

it could work both ways. >> thanks. >> but they have brought back enough stock >> right >> we'll see you soon. the delay of this week's break it vo brexit vote, we have the latest with details hi again >> hi. the prime minister avoided defeat on her brexit bill by delays the vote taking place at all. she now faces a massive battle to get them back on-site the debate continues in the house of commons still tonight the leader of the opposition just secured a debate on her actions which will take place early tomorrow morning albeit without the all important vote here is a member of her own party. baker is also a member of the back bench skeptic group addressing her actions earlier today. >> she is not governing a

country today. we have had three days of debate i was due to speak today i'm glad i haven't prepared a lengthy speech i'm sorry to say it is chaos it is part of a patent of incompetence which cannot be allowed to go on it is a very bad day for our country, for the conservative party and we need to bring it to an end quickly >> baker is a serious brexit here worth noting that sit that sort of sentiment that has lead to the british pound falling sharply. here is baker. >> the u.k. is a great place to inves. it will be a great place again we have got to go through this phase where it's not good for the rest of the world. once we rejected this deal and secured a better deal or left on terms there will be certainty for investors and it will be a

brilliant place for them to inves. >> along what to go to get the pound back to the prebrexit one year office it is significantly lower and down an extra 1.3% today >> we did have one lawmaker from the labor side ejected from the house for attempting to halt proceedings. we always get a kick out of watching the house of parliment. how common is this kind of stuff? >> that particular detail was a fl knew answered region it captured the polarization of opinions that have been represented today in the house of commons the vote that was meant to take place tomorrow was going to be the most important vote in parliment since 1945 it has been delayed and they didn't get a chance to have

their say. they didn't get a say in whether it should be delayed or not. it has lead to significant unease and dissats faction it is their battle to get it back on. we are seeing weakness >> and to the extent we can ever pinpoint these things, at this point we deep highlighting the action in the pound. seems like the best gauge of things what is now priced in? what is the scenario that they are handicapping in terms of an eventual outcome >> yeah. listen i think part of today's weakness was the uncertainty of whether it would continue, but in general the moves over the last six months to two years of course have been come fldominaty brexit developments. it is below the range. we dipped briefly onto the 125

handle we are around 126. we are certainly pricing in the fact that a smooth brexit is unlikely i don't think we have fully priced in an expectation of no deal which would be the worst case scenario. no deal would be somewhere below where we are there is certainly much more upsi upside if brexit was called off. >> great thank you very much. we'll talk to you tomorrow from over there appreciate it. we have an earnings alert. seema has that for us. >> yes earnings of 10 cents versus a 3 cent a touch below consensus. it is higher than last quarter it is up 22% year overyear

the stock is up about 4% here. so off the highs moving higher on what is a beat on the top and bottom line we'll point out that significant positions about 22% of the float is short back to you. and another name was a big favorite it basically doubled off of -- around these levels up to around 50 it had been going sideways right here very crowded in the sort of junior varsity >> that's it >> that's what i like it >> i don't like the web 2.0. >> going with that one too >> coming up, stocks, they are giving investors whip lash today. chris tells us how the pension fund he helps overseas is maneuvering in this volatility and whether or not he sees any

buying opportunities plus apple shares plunging over the last month. when we come back jj kinahan will tell us why they have been buying the tech tie tan. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

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a judge granted an injunction banning the import and sale of a lot of iphones in china. apple appealed that decision >> between today's court battle apple shares the following 23% since the beginning of november. some see the dip as a buying opportunity. with welcome good to see you again. >> always apleasure. >> what is the story behind the interest here? >> if you look at what they did in november they actually decreased their exposure to the market overall they brought equities and went more towards fixed income than we have there a long time. sit the least exposure to take into the market in may that all said apple was one of the stocks they bought it is the number one held stock the last two years sit a stock that matters i think

psychologically a lot to investors not just retail but overall to the market. i think people are basically saying, you know, talking to our, you floknow, clients. the market may go down if i have to put my money down i think people are confused what to do right now. if there's a stock i will trust this is one of the primary ones. >> ge right now. is this a stock that the traders had kind of bought all the way down or was it renewed interest? >> when ge got to 10 -- once it got under 10 a lot said if it is under 10 this is the area it will bounce back people are saying it is 100 shares it is only $700. i hate when people look at things that way. that's how the world tends to

work they are saying it is going to 20 or 0 is how they look at ge right now. ly call it an inexpensive play >> it reminds me it was the most heavily traded in the market >> and it remained that way. >> that's true >> it is one of the most heavily traded >> they are averaging down at this point 10 was interesting psychologically. people know the name well. it has been with us for so long. it has been an important d dividend player. >> you turn and say what business is actually going to bring you out of this? you guys are reporting, what sector is bringing us out of this right now it is kind of interesting when i look at the stocks it was not only apple. they bought netflix and amazon

>> the other interesting thing was some of the stocks they sold proctor and gamble, two stocks when we were there talking about stocks our retail clients bought they ended up selling as they both had a pretty good month in november c tesla rallied recently i think people are trying to take profits where they can. they are a little bit confused outside the stocks they really know where as to where to go next >> interesting at what levels did they seem to think they were bargains in? >> if you look back i'll start with apple apple, every time it gets under 170 people want to start buying it overall there's no question about that one. when i look at, you know, a

netflix there's one that at the end of the month it seemed people want today comment and stocks sort of fell offa little bit. >> so stocks they thought -- >> yeah. and the biggest thing i will say to viewers, so many are retail clients. i think one of the things that confuses them is it is either all or none in markets like that or i can't do anything and sit on their hands >> i would really warn people, please please please think of partial for buying and also for selling. >> thank you >> thank you >> up next we'll break down the charts s charts to see if we are on a

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dow with a big upside reversal down 500 or so points at the lows. s&p got below 2,600 for the first time since the spring. nasdaq up about 51 points. the russell was the laggard in the red by about 5 points. mike is looking at whether the

market could believe ready far big recovery >> that's the hopeful interpretation of this with these sections of sloppy corrections from early this year and currently boxed out. so what you see over here -- and by the way, it did go below here down to 2585ish which is right around where it was making lows here if you look at the early part of the year you have one, two, three trips down to that level you didn't really ever challenge the highs. here you had one, two, three trips to the lows. i don't think there's anything magic except for the psychology. one of the observations on a one year basis we were higher 12 months ago it only happened on a trailing one year basis -- well, it happened a lot but the last time was 2016 it shows yun one-year basis we

have plateaued right here. it is stabilizing above the lows opposed to continually hammering away a lot of folks will say the next time you hit one end of these ranges it will probably be the one that breaks through because of how many times does it give yaw chance to buy the low or sell the high? by that logic it would seem maybe you want to see it create some distance. >> what kind of leadership do you think we want to see >> i think you don't want to see the kind of stuff that's the worst bouncing that's all that survivors one of these rallies. this is okay if it leads the way. i don't think you can have those things dragging the banks along with them.

i don't think it will be all of the junk in the value stuff. it would have to be some combination of growth and maybe sort of stable value industrial sector >> you think the next either 2,600 or 2,800 is potentially desies ifr >> i think that's where trader lodge er logic gets you how many times will you do this before it gives one way or the other. >> thanks. let's get a cnbc news update hey. >> hi there. here's what's happening. macron knowledged he is partially responsible for fuelling the weeks protest in france good year tire and rubber halted production making it the latest intermanational corporation. workers who arrived at the plant today were stunned to find it's no longer an operation

the supreme court turned away appeals from two states wlon they can deny medicare funding in appeals the justices blocked the effort to with hold medicaid money from that organization according to a recent survey 42% of consumers will wait until the last minute to do their holiday shopping 36% of millennials say taking photos is more crucial to them than giving gifts. back in my day we combined the two. everybody got photos for christmas. >> thank you we have an earnings alert. the stock is popping here. 6 cents adjusted versus adjusted 4 cents. this is the parentover ann

taylor among other retail brands staging a major reversal it was down 9% in the regular trading session and proving higher after reporting earnings back to you. >> thank you very much >> it was also a volatile day for the market it made a comeback later on and closed positive. >> for more on what investors should be focuses on let's bring in chris and david chris, let's start with you. your allocation was about 51.6%. do you change that at all? >> we hedge that closer to 50% as we shown on the charts it's chance to say i think we will test that 2580 mark on the s & p

500. i agree with that. as you bounce back up we'll bounce back up in the coming months >> i'm always interested where you are. they don't change that much over time if you were to take money out or have taken money out do youput it in cash in an environment like this where they have not been performing? >> we took some of that money out and put it into 30 year bonds. the segment has done pretty well there is almost a thousand basis points different we also put it in what we call risk mitigating strategies the key is diversifying. you to go partial trades all of the time you feather in and you feather out very slowly when you're a long-term investor you don't try to trade during this volatile period >> we have seen this repricing

in the u.s. market we have come down to plemeet wh the global markets have been doing. this has maybe stabilized. do you feel it has dropped expectations enough going into 2019 among investors >> i think that, you know, it has become tremendously oversold on a technical basis the market is supposed to be doing better this time of the year but, you know, when you look beneath the surface it is telling you a very important mess anc message. we have had them underperformed. the transports willfully underperformed the small caps willfully underperformed i think it's better to sit back and say what is mr. market telling us here?

he is in this process and not here yet towards a much slower growth profile we were pricing in lower growth. i think that's appropriate >> david, to what degree are you pricing? >> everybody seems to think it's a 20 story or 21 story i don't think how this cycle is going to some how surpass the productivity and internet cycle of the 1990s i'm seeing all sorts of signs and leading indicators telling me that we are going to hit the wallnext year. i'm expecting a recession next year we are going to have significant policy withdraw on the stimulus side all of the lags, this is the one thing he talked about, the lags from everything the feds have always done kicked in on the balance sheet and from rate hikes. i think we'll have a corporate deleveraging cycle that will impair capital spending.

one thing people don't talk about, you know the household net worth between equities and housing? it expanded by $8 trillion we will have a negative effect people haven't modelled what it will mean. it is just on what the evaluations are doing and the slowdown in the housing market it will have a pretty big impact on consumer spending the stocks are telling you it will be a problem area for the economy in 2019. >> on a day like today i find myself thinking a bit about market structure it is not the market we all grew up with. you huge money and passive strategies on days like today you'll see people pointing at the traders how often do you think about sort of the structure and how different it seems to be from what we were accustomed to

>> well, and i go back 230 years. for me it changed really dramatically from what was really a retail market i can remember when the new york stock exchange had to close on wednesdays because there was too much paper on the floors i think that has changed this is normal people have to get used to that. the size of the numbers is what drn they realize it is about a 2% move. so it takes some adjustment but i think if you look at this market from a long-term perspective there are investment opportunities. i can't predict when that recession are going to come. i know it is growing at about 2 pchbt 5. that is better than we have seen in germany, japan. i don't even want to discuss

where the u.k. is going to go. this is the pocket of growth can we sustain that in operation? probably not we'll have to see you thu the fed is certain to do november then what >> i think the trump tweets, i don't see there's the economics to move on the 19th. they are so desperate to want to get flower power to fight the next recession you'll find at the beginning they give the presentation to the policymakers ton next recession and talking about this zero balance

they are talking at the next recession and what they will be doing about it i think they are probably done i wouldn't see that as a poz ti signal anymore than going on hold was a positive signal you got to understand the lags between the fed and real economy and market are 12 to 18 months we haven't seen anything close to what the feds have done in the past that is next year's story. that is what the market is starting to come to grips with >> we'll be following that very soon given how many days we have left thanks to you both >> thank you >> thank you when we come back, rising interest rates may be keeping home buyers on the sidelines now there may be something keeping sellers from listing their home details straight ahead california phones offers free specialized phones... like cordless phones,

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want to stay put diana has that story now >> it is because you might not want to buy in a down market homeowners are making money on their owns but seeing the smallest gains in two years. the average homeowner saw a gainovgain of $12,400 that includes price appreciation as well as paying down to mortgage it is down from annual gains in the seconds quarter. states did see bigger gains. california and nevada more than $30,000. home owners lost value this saul becauis all because ti home prices are shrinks. it did drop back but considerably higher than they were a year ago. we are also seeing more homes come onto the market which has taken the heat out of the strong competition. it has been sharpest in the third quarter of this year

the amount of tap able equity fell quarter to quarter since the housing recovery began a quarter of a million homeowners are able to do cash out refinances or home equity loans. >> have you been impressed in any kind of as mortgage rates have eased off >> we have seen about one week since the raies started to fall back we did see a jump in refinances and home buyers. december is always the slowest time of the month. now can be a best time to get a deal rates kon rates continue to fall back. better than they were in september when we started to see the real slowdowns we may see a pick-up even in these cold months. >> not the ideal time to go house hunting right now. when we come back we'll go

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tnchts cfo deed deidre bosa is there. >> hey, carl that afternoon session of the bail hearing is about to get underway here's what we learned this morning. her attorneys have proposed that if she is leased, a comprehensive surveillance plan that includes monitoring by two security firms giving up both of her passports and $15 million in bail prosecutors though are arguing that despite that surveillance she still represents a flight risk before the lunch break the judge had more questions about that surveillance plan. we'll see if meng's lawyer's answers are enough to secure her release which could come as soon as this afternoon. >> thank you very much for that.

in vancouver we'll see what happens with that hearing and if we get any effect on trading in the morning. in the meantime, "fast money" is going to start in ten minutes. joe kernen is in for melissa joe, even as david and i are in on the "closing bell," a bunch of split shifts today. >> that's not how i was seeing it, carl i think the network is finally getting serious about this selloff, don't you think and now i know cramer supposedly said something about 12:30 or so about apple but didn't they announce this lineup and the market said, oh, my god, right, favor? you think there's any truth to that >> if you say it i believe it might have the slightest bit of being true. >> slightest >> what did you do all day did you stay in the city did you go home? did you have a hotel room? did we get you a big suite somewhere? >> i can't really tell you i can't really disclose everything that i did do i was home for a while >> okay. >> this is a new outfit, new

hair i mean, not -- >> got it. >> i was going to complain but then again, isn't santoli there with you i mean, i've got no reason to -- >> yeah. he was there with me bright and early this morning. >> he does this all the time. >> i think i'm going to be with you bright and early tomorrow morning. >> he's a new guy. >> favor, tony dwyer is on. >> we did talk about that during the break, too very excited about that. >> we have a lot of generations of "squawk." >> yes, carl, now here we are. i am worried about the transports i've got to tell you we've talked about that a lot, right? oil is supposedly down on just supply worries, right? we don't worry about demand. if oil is down, why are transports down 17%? have you figured that out, cantonia you used to think about the dow theory, didn't you >> you talked about it this morning. not in aho among ge news

sentencsens sentencsens sense -- homogenous sense. >> we'll have our real estate reporter bob pisani talk about that today he moved on to stocks. this is how far back we all go >> i know. scott cohn was down there. add it together, it's 80 years of cnbc. >> cohn did the g3 they keep pulling me back in he did that. he did the -- because i thought -- didn't he retire? he's in santa cruz. >> yeah. ten years since madoff, joe. ten years since madoff. >> he was punching guys out. that's a bizarre tape. i'm cited to be here i like the turn around it's a monday and we did not go down 1,000 points, for that i'm grateful we ended up positive another day we avoided the ultimate disaster.

this market has people's attention at this point. unless the world is going to end, it doesn't give you a chance to buy it much more cheaply than it will two years from now i don't know there will be a bottom some day. there will be blood. >> we look forward to watching you with the next hour, joe. i always love watching you talk stocks. >> are you going to hang out and watch, favor don't say it -- >> i'll be on the subway -- >> yeah. >> what, are you kidding me? >> on the small screen. >> that's guy adami. >> that's carter big networth. >> that's from bart simpson. >> grasso? >> thank you >> we have a news alert. cbs is selling a big property. let's get to julia boorstin. julia? >> reporter: cbs announcing it has signed an agreement to sell

its 25 acre cbs television city property to a los angeles based real estate developer called hackman capital partners for $750 million cbs programs will continue to be produced at this location for the next five years. joe ianelli said the sale unlocks significant value unlocking the significant financial flexibility unlocking capital for significant growth initiatives such as content investment it owns the 40 acre studio sentences centers in california. this is a significant sale for the company so interesting to see what they do with that $750 million. back over to you >> julia, thank you. it has been another volatile day on wall street we'll get some of the big names moving after hours after this. you'll get clear, actionable alerts

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get a check on the headlines making news after hours. stitch fix shares down sharply after investors were disappointed by flat growth expectations the personal shopping service beat wall street's earnings estimates. a senior retailer owns the

ann tailor retail. and casey's general lower after the convenience store operator missed same store sales estimates and lowered its full year sales outlook >> a lot of data to come, cpi, retail sales friday. >> we do give a little bit of a test if this was real. slight lift in treasury yields >> banks still look horrible. >> ugly. i don't know if it's all brexit or bigger stuff. just the yield curve yeah, they don't look well. >> all right tune in tomorrow, by the way, "squawk on the street", sara eisen going to sit down with coca-cola ceo james quincey. we'll have that for you starting at 10:00 a.m. >> talk about stocks that have done fine in all of this is coca-cola. i did notice berkshire hathaway down 9%. >> we talked about whether or not it was reflecting buffet's

apple stakes or bank stakes? >> proxy for banks, financial and apple for better or worse. apple stake is not big enough to matter but psychologically. >> we'll see what tuesday brings kind of fun. >> maybe in a year. >> that does it for the "closing bell," "fast money" begins right now. >> you said it, "fast money" starts right now live from the nasdaq market site overlooking times square i'm joe kernen in for melissa lee. i did the nicknames. tim seymour. carter big net werth steve cut the grasso and guy adami s&p 500 tracks for its worst year since the financial crisis. one of wall street's biggest bulls says the bottom isn't in yet. plus, as volatility spooks investors, one of fidelity's top investment advisors says people are making