well, we have 11 seconds to fill, and the dow has fallen once up 458. now up just, a nice gain, 276. thanks for watching "power lunch," everybody >> "closing bell" right now. >> and welcome to "closing bell." i'm sara eisen. >> and i'm michael stoly >> let's get straight to the markets. as kelly and tyler just mentioned, stocks soars on optimism over trade talks between the u.s. and china off the highs of the day down now trading up a percent, higher by more than 250 points at one point it was higher by almost 500 points. >> 2% across the indices earlier. did get a fade at 2:00 has been a little bit of a habit, that rallies get faded and selloffs get picked up a

little bit. >> is that the legal trouble for trump? >> some headlines in that regard seemed like it coincided anyway with the down draft. >> coming up on the show, we'll be joined exclusively by be guggenheim's chief executive officer scott minerd and why a 40% drop could be on the horizon. he usually has a lot of gloom and doom. >> 40% done from some level. we'll get the details later, but it is an interesting call. plus, we're moments away from the results of the no-confidence vote in london uk prime minister theresa may's political future is now in question we'll take you there live for the results. first, let's dive into what has seemed to be driving this rally all day. wilfred frost is in london with the latest on brexit and ylan mui is watching china trade from washington wilfred, let's start with you. >> reporter: hi, mike. yes, indeed. voting just closed in committee room 14 in the houses of parliament behind me it had been open for the past two hours. we expect the result live in this, the final hour of trade

stateside here on the "closing bell." three binge things to watch out for. first and foremost does she get enough votes to get over the line and keep her job as the leader of the conservative party and with it the prime minister of the united kingdom? she needs 150 votes and that's 50% of the 317 tory mps. not only would she get her job if she gets that many, she cannot face another vote of confidence from her own mps for the next 12 months the next question. how much does she win by if she sees 80 or 90 votes against her, which is what broadly people expect, then we're sort of middle ground for where the markets are. significantly less votes than that against her, it will be seen as a resounding vote of confidence in her, but if we start to see 120, 110, 130 votes against her, then this will feel like a victory in name only. it's important if we get to that level. not only if brechtittiers voted against her hand a few remainers

will have done so as well f.her victory is resounding, the next thing to focus on is in the hours and days after, do the brexitiers fall in line and say, yes, we will now vote for prime minister theresa may's brexit plan, or do they double down and say we're not voting for this plan either way because if that is the case, we're back to where we were the weekend before the debacle of the last three days where the middle ground brexit plan on the table but no sign that anyone is going to vote for it and the british pound recovered today but still, of course, low when we consider a three-month or one-month chart guys, we expect that result live during this first hour of the "closing bell" in the next half an hour or so. >> so, wilfred, can we just put this vote, this no confidence or confidence vote into perspective here it's not like it's going to answer anything, right, as a result of whatever happens of now britain is going to leave the eu is just seems like another uncertainty in the middle of already chaos.

>> i think that's a very fair summation. it's not going to answer anything as relates to brexit. that's absolutely true because that's not a specific question on the ballot paper, and most important of all we know that prime minister theresa may's conservatives don't have had a majority on their own, that labor, s&p, the greens, liberal democrats, all say they won't vote for her brexit plan that was taken off the table earlier this week. if you add to that 60, 70, 80, who knows, conservative mps, we're a long way from getting a middle ground brexit deal over the table, so on brexit it delays the vote until whenever she brings it, but on her leadership we will get a definitive answer, and, that of course, has already been affecting markets further than just brexit itself this week >> wilfred frost, good thing you're back home in london this week with all the drama surrounding this vote. we will turn to you as soon as we start to get results with the pound rallying 1%. i guess, market, the market sees

it as she's the best of an even more uncertain option, even though she's not managing to get her brexit vote. >> it's the leadership, the position you know. >> at least you know. >> at least it's an incremental move in the direction of getting a deal approved. >> from london let's turn out to washington where there's new developments on china trade. let's send it down to ylan mui with more on that. >> some promising signs here, sara "the wall street journal" reporting that beijing is maybe backing away from its made in china 20 25r20 program and the president telling reuters china will begin buying soybeans again. the caveat is that there's multiple reports that the u.s. is weighing a travel warning against china. commerce secretary wilbur ross pushed back on that calling those reports rumors, but then president trump told reuters he could intervene in the arrest of that huawei executive if it could help close a deal with

china. however, during testimony on capitol hill this morning, a top justice department official disputed the notion that these two issues are linked. >> we are not a tool of trade when we bring the cases, and that's when we -- that's what we do when we see them through to their conclusion. >> guys, we are expecting to hear from canada's foreign minister on the huawei case in just about an hour we'll keep you posted on all those details. back over to you. >> ylan, in this project of trying to decipher what this news might mean in rewriting its plan, it also came not long after the reports of hacking activities attributed to china, marriott, a lot of other targets there, so how do we filter that into this whole process of deciding if this is sort of a tactical bit of a news leak, or if there's something going on that's substantive behind it >> i think one of the big questions in the trade negotiations have been what tools beyond tariffs could

either country use in order to exert, influence, exert pressure in these talks, and with some of these ancillary discussions, ancillary developments, are these sort of the non-tariff measures that both washington and beijing might be taking in order to gain the upper hand here, so i think you're going see a lot of sort of ripple effect on both sides of the negotiations. >> yeah. so many layers to these relationships. ylan, thanks very much for tracking it. ylan mui in washington joining "closing bell" exchange, steve grasso from post nine and our own rick santelli and renee mash rick, we'll start with you every day we get two mark. we get a rally either from the open or later on and then we get a fade what do we make of the jockeying? >> well, today was the longest we saw it go without a reversal, a couple hours longer than we

usually see it last. a couple of negative headlines involving cohen. we saw maybe the brexit issue coming to a head, and like wilf said, if this is a tremendous confidence vote on her behalf, the market should rally. if it's not, you are sort of splitting hairs, whether it's 90 votes or 110 votes against that's what i think the market is hedging right now if she wins overwhelmingly the markets should rally into the end of the day. >> you think u.s. stocks are teeing off of a confidence vote for the british brims? >> i think they are trying to tee off of anything. today it was china trade it was brexit. it's a whole host of issues, but the huawei is eerily reminiscent of the zte it seems like a leveraging tool on trump owes behalf so that's why i think the market was rallying maybe they were worried about a headwind that really isn't truly a headwind for the china trade talks. >> renee, i guess the context matters for all of this stuff. the stock market has been under a signature amount of pressure kind of bent near the lows of

this correction but not really broken and there's been these attempts to show that in fact we can rally off those levels so what does it mean for you in terms of either deciding what kind of returns are going to be available for this market in the short and long term or just, you know, deciding whether this move looks real for you >> well, we are getting that every day, i tell you. santa claus doesn't look like it's coming to town this year, so the things that is really concerning to me right now is getting the resolution on the trade tariffs so it doesn't turn into a trade war frankly, if that does happen, it's not only going to impact and flip the script as far as the u.s. economy is concerned, but it's also going to be a big pull on the global economy, so from my perspective i think if we can get this one major issue taken care of and get some resolution on that, we do have a lot of other drama going on globally, but if we can get that resolved, that's going to make a big difference the other key point i want to make is this the tariffs, while that's been

very short term so far, have already started to impact q4 earnings at the end third quarter of this year companies were looking for on average about a 17% growth rate for q4 they are already looked at downsizing those numbers by 20%, so for this fourth quarter, we're going to see some lower numbers and possibly even lower still that there's going to be further adjustments, so if we can take care of this, because the tariffs are definitely having an impact the rest of it i think will kind of fall into place. >> so, rick, two sources of anxiety for the overall markets lately have been the fed and this trade war do you think we've seen enough improvement on either or both? >> you know, i think on the trade side it's really an important issue, but it's important in a different way in my opinion it's not so much how much business we're impacting or how much the tariffs are costing companies. to meet issue is you look at

some of the post-tax changes there's coffers of money that can be spent there's money that hasn't really still come abroad with the repatriation we still have money that needs to be put to work, and i think some of those capital expenditures are not moving forward in some part because of these global trade issues, and i really do think it isn't how much they hurt it's how much they are impeding more growth, another spurt of growth, and i do think they will get resolved, but there's no doubt they are playing a bit of havoc with the markets having said that, i'm very optimistic that we have seen the low-yield trade on the long end of the treasury curve. we're about ten basis points off those intraday lows from late last week and early this week on 10s and even on 30s, and i think that's something to pay attention to there's many out there that think some of the better signals, even in the signal-impacted economic environment, are coming from the

u.s. sovereign debt market, and in that regard i think we're getting some clues of improvement. >> yeah, rick, there definitely has been some comfort taken in a relaxation of treasury yields higher here. do you think the curve right now is set up for kind of the december hike that most will expect and then a prolonged pause. how do you think the reaction function looks right there >> it's hard to say specifically but generically i would agree with what you shade. i don't see anything in the marketplace that would refute that the market is priced in and comfortable with the december rate hike and i do see lots of substantial changes in the arrangements of the euro dollar futures, not the foreign exchange and the fed fund futures and options for 2019 and 2020 will the fed be taking along with some of those observations? i think they look at everything as closely as we do, so, yes, i think a pause is in order. the only question is when will

there be activity in march of next year? i personally think it will be one and done for a while. >> mike, you brought up yields and brought up a pause, and rick has been all over this when you think about it, even if they do pause, you know the fed is burning through 50 billion at this hour each month which is the equivalent of raising, even if they stopped, it's the equivalent of raising at every one of the meetings going forward. >> you're talking about the slinking of the balance sheet. >> if you look under the hood, everybody knows about it and think about what started this whole selloff. it's not going to feel as good they are still tightening so it doesn't matter whether or not we say that they are pausing. they are not as dovish as we would all like to think. remember, what started the selloff october 3rd was a hawkish powell same thing. >> definitely different ways to calculate what that means for calculating but definitely the balance sheet runoff still happening. thank you to steve, renee and rick santelli. >> thank you. yesterday, it was former fed

chair janet yemen sounding the alarm and today it's guggenheim executive scott minerd he joins us next. under armour stock plunging today in the middle of its annual investor day as analysts and investors express concerns about the targets they are getting from the company they are actually coming some new numbers to tell you about this hour. the stock is at the lows -- almost at the lopez-of-the-day there down 11% we'll fill you in on the latest. at any moment now we're expecting to get the results of the uk no-confidence vote. had a it's going to mean for prime minister theresa may's political future, the markets, brexit and more. that's coming up on "closing llwi t dow up now about 300 points this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. hedge fund liquidations increased in the third quarter reversing trends from the first half of the year cnbc's leslie picker has that story. one of the factors that people are attributing the choppy market to. >> reporter: certainly a lagging indicator, mike. there were 174 hedge fund closures in the third quarter. that number surpassed the number of new fund openings, 144 of

those. a quarter like last one when the number of liquidations is greater than that of launch eds indicates a shrinkage in the hedge fund industry. now this trend is the reverse, as you mentioned, of the previous for yur quarters when saw net additions of new funds and the quarter wasn't even that bad in terms of perform an the fourth quarter, on the other hand, is shaping up to be much worse which means you're likely to see even more liquidations at the beginning of next year hedge fund managers are starting to wonder about a so-called big bang in the industry when a real shakeout will take place after this underperformance. a recent report by morningstar said hedge funds would thrive if there were 200 billion, 300 billion chasing alpha instead of the $3 trillion under advisement in the industry. again, 174 closures in the third quarter is not yet cause for alarm per se it will be more important to see what comes out of the fourth

quarter. guys >> all right we'll see if the bleeding continues there in the hedge fund industry. leslie picker. >> after some shocks of some economic winter, the markets will enjoy an indian summer respite before the onset of looming recession in 2020. scott minerd joins us on the phone to explain the call. who is more bearish, you or jeffrey gundlach, you bond kings and princes have a lot of doom and gloom when it comes to the economic outlook right now explain your call. >> i mean, look, i think it's pretty apparent by now that everybody is awakened to the fact that we have way too much leverage in the system, and this recent correct that we've gotten in stocks has been associated with a pretty hard selloff in the bond market. you know, we've seen it especially in junk bonds and bank loans, but we also have seen it in investment grade credit, and that's the prelude

that's the achilles' heel of this expansion, that credit expansion has been too rapid companies are overlevered and we sit at record high leverage levels in corporate america based on percent of gdp or free cash flow or any measure that you want to look at, so ultimately any kind of economic slowdown is going to spill into the corporate bond market, and i think we're going to get a downturn that looks very similar to what we saw back in 2001 and 2002 where we saw a wave of corporate faults whether through enron or worldcom or global cross, and that will lead us into recession. >> scott, i'm sure, you know, you push back to the space, everyone acknowledging the much higher levels of corporate debt and perhaps the lower quality of what we have in investment great debt, but in terms of deciding when there's going to be a reckoning, people will say, well, there's not that many

maturities coming up it looks like it's manageable. you see cash flows being able to cover in aggregate, the debt obligations for now, so how do you think it actually plays out in terms of this potential kind of stress impacting the economy and the stock market >> what's interesting, mike. you used a phrase which i hear a lot is inaggregate, and if you look at the debt lefvels in the overall economy, the economy doesn't appear to be nearly as levered as it is, but when you consider that the majority of that cash is held by a handful of companies and that it's the other companies which are so highly levered, a lot of media companies, telecom companies, then, you know, then you start to see that unless there's sort of corporate socialism where it's the large cash holders like

apple are going to help out other companies, this dichotomy within the credit market is the key to how the whole situation unwinds, and so there are a number of weak reads we've seen them already. you know, certainly the selloff in some bonds like general electric, pg&e which face the issue around the fires in california there are a number of other companies that i won't mention where we've seen significant deterioration in their bond prices it's going to be the story of a series of dominoes, and at first i think one or two dominoes will fall, and people will remain relatively optimistic and take faith in the idea that the aggregate debt within the corporate sector doesn't look as bad as it might when you include all this cash held by a handful of companies, but ultimately if those dominoes fall i think

we'll see an experience like i was mentioning back around 2000 where one by one the companies fall and ultimately there was a lack of confidence and everybody backed away from the market. >> so despite, i mean, what you're describing as a ticking time bomb in the corporate bond market, scott, you think stocks are going up from here why? >> well, i think so, sara, because the reality is that the economy is going very well you know, given as many pieces of negative news as this market has had to absorb over the last eight weeks, the fact that prices continue to hold in at these levels, we see the price earnings multiple of the market falling because of the continued rise in earnings, and when you look at the fed mold, for instance, it would suggest that the pe for stocks today should be closer to 20 than where it is right now, and so i think stocks are pretty fairly valued, and,

you know, based on our assessment, we expect recession to arrive sometime probably in the first half of 2020 the market traditionally rises until about two to six months before the recession, and we think that the market just doesn't discount that far out. at some point i think we will get some sort of good news whether it comes on trade and that part of the economy and that will become the excuse for stocks to real, and i think a lot of people have gotten very defensive very quickly, and as the year end approaches people will want to show -- portfolio managers will want to show clients they are invested and not sitting in cash, and we'll probably see a rally before the end of the year. >> scott, i guess that call for a recession likely in early 2020, is there any what i to alter that course at this point? do you think there's a possibility of a soft landing?

what should the fed be doing right now. >> you know, mike, that's a great question i'm not an advocate of a soft landing. i think recessions are normal and healthy and anything that you do to prolongs the expansion beyond sort of a healthy length only makes the recession more difficult, but i do think, you know, we are running the risk at this point that the fed will pause and that, you know, as we get through the neutral rate, which the most fed members think the neutral rate is around 3%, that suggests that we could get three more rate hikes. if we get to that level and the economy is losing momentum, the employment growth continues to slow and inflation remains contained, i think that could give the fed reason to pause and perhaps expect it, but it could be more concerned of allowing

excess to continue to build in the system. >> we're out of time, but we can tease the fact that you're predicting a 40% slump from the peak when stocks do peak where did you come up with the math >> that had to do with traditional patterns when we get the sort of correction that we're expecting in credit. you know, we think that high-yield bonds will probably have maybe 600 to 800 base iies-point increase from where we are today if we did get that kind of an increase, the correlations would show that the stock market should decline 40% to 50% from the level at the peak. >> all right, scott. thanks for jumping on the line and talking through some of your predictions. always buzzing when he sweets. scott minerd of guggenheim partners. we're got 34 minutes to go before the "closing bell." take a look at the major averages still rallying during the session, and most groups actually within the market are

higher led by consumers, technology and faang. >> president trump commenting again on possible rate hikes by the federal reserve. coming up, we'll look at impact y his latest words and what it maor may not mean for a december rate increase ♪ ♪ move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business.

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welcome back to "closing

bell." let's take a look at individual stock movers there's farfetch trading higher on news it's acquiring sneaker company stadium goods in a deal valued at $250 million farfetch is the leading global tech platform for the luxury fashion industry the stock was up 6% earlier, which is why it stood out to me, but mainly because i think of stadium goods as a so histori store, has become sort of a c o zeitgeist. >> i wonder if this reflects their strategy of wrapping up different brands. >> owning the hot digital properties and certainly sneakers, people goes nuts for, and peyre dicklous prices for them as well. >> absolutely. i'm watching shares of verizon today, a lot buzzy

morgan stanley downgraded the stock from an equal weight to overweight the firm sees potential for higher investment spending as well as increased competition, so the stock is down 2 been the 5% what i think is very interesting though is the huge divergence between verizon and at&t yesterday, at&t got an upgrade at&t has about eight or nine times earnings for next year and verizon at 12 or 13 and it seems like people are playing the potential for a mean reversion between the two. verizon is also writing down the value. >> plus, it's been more of a defensive play, too. >> it has. >> arguably at&t not as much because of the time warner deal and directv has really been the albatross. >> both of them paying dividends. >> although, at&t above 6% and verizon four and change. >> time now for a cnbc news update with sue herera. >> the tennessee valley authority discussing the safety of their nuclear plants and their dams as well after a 4.4 quake struck the state the tva officials say that the

quake did not cause any damage or disruptions to its operations >> here in east tennessee, you have to go all the way back into the 1800s to get to the most significant earthquake which was above a 6.0, so today's 4.4 is not even close to what we're designed to withstand which is above a 6.0 earthquake the publisher of the "national enquirer" has reached a deal with federal law enforcement to avoid prosecution for its role in paying hush money to a woman during the 2016 u.s. presidential election prosecutors agreeing not to charge american media after that company admitted it made the $150,000 payment in order to keep the woman quiet insurance claims from last month's wildfires in california already are at $9 billion, and they are expected to increase. that's according to the state's insurance commissioner about $7 billion of the claims are from the camp fire which destroyed the northern

california city of paradise and killed 86 people that is the news update this hour mike, sar a. i'll send it back downtown to you. >> sue, thank you very much. we're expecting the results of the theresa may in confidence vote any minute now. we'll head back to london as soon as we do receive that outcome, and we've got about 27 minutes to go. dow up and s&p up 1% biggest movers of the day and bob pisani is on the floor and bertha coombs up at the is nasdaq bob, we'll start with you. >> reporter: off the highs and most of the big moves up, positive trade headlines, usual names. caterpillar, were at 127 and holding up here at 125 saying thing with boeing, another typical trade name we were 331 earlier, but just off of that. normal intraday trading and sitting right near the highs banks are rallying but not quite as much. in fact, u.s. banks, a lot are up about 1%.

we still see new lows, wells fargo a new low and some other small community banks israel 52-week lows the bottom line, trade headlines. the huawei cfo being granted bail the china drafting a made in china 2025 replacement, positive and may surviving the brexit confidence vote would be a positive ten cents, price to 13, holding in there at 14.03, and, boy, a lot of happy people down here that that deal got done. >> guys, back to you the dancing stuffed animal little creatures outside the new york stock exchange for ten-cent music. let's send it up down to bertha coombs we've seen tech outperform. >> reporter: we have, and led by chips which is up here for a third straight day and one of the things that traders like

brian stutland pointed out, they are up compared to the tech sector which is up only 4% or so they like to seat leadership because chips were real one of the first sectors to drag us low, and among the real stabbedouts is broadc ho m it was last spring when the trump administration blocked broadcom from acquiring qualcomm, that we started to get concerns about china trade and tech they will really recovered and seen the best three-day gains in three years. already up 12% for the week, and facebook enjoining some of that recovery trade as well, on pace right now with four straight days of gain for its first monthly gain since last august, and it's bringing along some of the rest of the faang names as well as tech overall, sara as you know, today, really showing some strengths, so some folks looking to see if we're starting

to turn the corner here. >> bertha, text seem indispensable to the markets. it's investor day for under armour, and the stock is feeling some pressure today. up next, nubs from the investors meeting and what's concerning analysts right now the company's future. and bob pisani is back now getting ready for the return of "deal or no deal" with -- at 9:00 p.m he's got his briefcase and mike stole el not to beutne odo has a special "deal or no deal" stock chart that you won't want to miss that's all coming up 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.

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit sowmyanaraya sampath okay. shares of under armour down more than 9% as the company holds its annual investor day. sara, you covered this stock it had been a little bit on the comeback trail and trading at its highs a week ago. >> it was a hot stock going into today, more than 50%, but a big disappointment this is the first investment day in three years for under armour and investors not liking what they heart the company offering an outlook for the next five years. what we know now, and there's news flowing out on this all hour long, revenues are expected to return to a low double-digit growth rate by 2023 driven by

international growth and the direct-to-consumer bills the company is also projecting low single-digit growth annually in north america over the next five years it's an area where the company has struggled recently meanwhile, under armour sees revenue growth in europe the middle east and africa in the mid-teens during that span the high single digits in 2023 those are just some of the highlights here, and they are a little bit underwhelming, especially because the investors and analysts were very optimistic going into today. on the return to growth in north america, better growth, but it's not the 20% days like we saw with under armour in the beginning. still, even with the big drorng the stock is up more than 30% so far this year, but if you go back when it peaked in september 2015, it's down sharply from that level the ceo did talk about that today saying the company lost focus after years of very fast growth, but right now he says they are in the middle of a turnaround and he's optimistic. >> listen. >> we're roughly two years through what we've defined as a

three-year transformation for our business and over the past two years we've been successfully executing against a strategic operational and cultural transformation to become smarter, faster and stronger. >> also, just wanted to mention with trade tensions running high with china, under armour is saying that they are moving away from sourcing products in china. the company says the plan -- the explain to source just 7% of total products from china by 2023 which would represent a pretty big change. >> has almost 20% right now, and even that has come down dramatically over the last three years, and clearly that's a risk, and we know that was out there. it's the longer-term forecasts and, yes, the company is projecting higher margins and better profitability and that's thanks to the addition of c.o.o. patrick frisk. on "squawk on the street" i'll be speaking with both of them, the c.o.o. and operator and also the founder and ceo.

we'll talk about the stock move today. >> yes. >> it's fascinating. one thing we're seeing this step down in growth that we're project being. the stock still at 60 times next year's earnings. priced for hyper growth and it could be very realistic and doable and a positive outlook and yet the stock couldn't absorb it. >> it's so highly valued >> such a battleground and controversial stock. >> for years. >> a lot of short sellers and why analysts say the stock is up so much this year. they have gotten squeezed at under armour posted better results on the operating side of the business. >> we'll wait to hear what they say tomorrow morning. the dow still holding on to that 1.1% gain, up 282 and the s&p up 29 points, nasdaq the outperformer and small caps a bit of a risk on feel. up 1.6%. up next, ten-cent music having its first day of trading at the nyc. what it says about the ipo landscape, and tomorrow i'll be

live at the yale ceo summit this time tomorrow. we've got big guests coming your way, including jim chanos and mark fields, used tonight ceo of ford and many more big names and exclusive interviews tomorrow on "closing bell. we're going to be right back marching for the close wh e itth dow up 272 points.

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here is a check at the ten-current music post, the company going public and surging in its debut it's up more than 7.5% in its first day of the trade here hat the nyc. let send it more over to deirdre bosa. >> sara, that's right. shares popped 12% in the first few minutes of trade and now you mention had had up 7.5%. 15 minutes left in the session, but it was a rocky path to the public markets for the company shares priced at the bottom of its expected range just a few months ago, some were expect being this company to debut with the market cap of between $25 billion and $35 billion and tech delayed it for months due to market volatility and it scaled it back.

that has raised some questions about the megalition shaping up for next year. these are some of them uber and lyft have filed paperwork confidentially slack has selected goldman sachs as lead underwriter so these candidates are watching how tencent music trades and even if market swings into next year and they struggle post-ipo, bankers don't expect the pipeline of american unicorns to be deterred tencent music is a chinese company so it could be more susceptible to trade negotiations between washington and beijing like we've seen from its peers. chinese listings in the u.s. have lost nearly 12% on average since they went public versus a 6.5% gain for all u.s. listed ipos guys >> i wonder, deirdre, if they like some of the other chinese internet names like alibaba will

be affected by the narrative that change every single day on the trade discussions. >> you see that that they trade like proxies and on comments that are positive they move up as a group on comments that aren't so positive that are on increasing tension they move lower, so sometimes they don't necessarily trade on their fundamentals which is a risk that tencent music takes by pricing and going public in the u.s., but at the same time the record for chinese ipos in hong kong hasn't been great this year either it's been even rockier there. >> good point. well, today the narrative is a hopeful one. >> it's a positive one. >> so they have that going for them deirdre, thank you. when we come back, we'll talk technicals and tell you the key levels to watch in apple and amazon from here "closing bell" back after a quick break. at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.

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show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back to "closing bell." let turn to the telestrator where katie stockton from fair lead tragedies is check out the charts katie, obviously you've been very -- it's been a very jumpy market in this range since the correction started what do you think the setup looked like for the broad tape >> it's very bullish and very considerate of how we close this week, however, because the s&p 500 that you see here is right

on very important support around 2640 last week we saw it dip below, that so we need to avoid confirmation of that breakdown in order to preserve the uptrend base on the model which is the change. >> if we do close above that level this week, it would be an all clear for this rally >> that's exactly right. we do have countertrend indications from the overbought and oversold measures that are in this framework of the long-term uptrend and that's quite bullish. you have big extremes in breadth and leadership. >> jim cramer is saying apple need to real for the market to rally especially after the concerns from the last quarter how does the apple chart look? >> it's not dissimilar in a way to the s&p a hundred even though apple has declined about 30% from its highs that correction phase, using that same model that i showed on the s&p 500 shows, again, support in loin right around 168 for apple, so it's very

essential that that level mold my work. it is equivalent in terms of being oversold from an intermediate perspective it does not have a buy signal and does not have the improved momentum that we're seeing in other areas of technology but i think that's only a matter of time. >> amazon dropped more than $200 billion in market cap over the peak during the summer how does that look >> it also corrected about 30, as you mentioned, and that correct took it to the upper boundary of the support level that you see here. the level that i'm watching for amazon is right in that sort of is a 25, is a 60 area. very important that that also holds there. there we do have the medium oversold buy signal with the framework uptrend. it's very infrequent that we get these kind of opportunities in a large-cap technology or discretionary stock and i would look back and say it was a missed opportunity. >> so you're 3 for 3 on boy signals? all, apple and amazon? >> that's right, and with amazon and apple's help the market will

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before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. don't get mad. get e*trade, dawg. three minutes left in the u.s. trading day we're awaiting results of the no confidence vote in parliament and london to see if theresa may

is back as the leader of the country. as soon as we do have the results, we'll bring them to you. meanwhile, the rally in the u.s. continues to lose steam. we were up more than 450 points on the dow and almost 2% and the dow for the day. we're now up 175 started to lose steam about 2:00 no particular news related to it, but there was the michael cohensen tensic cohen sentencing technology has been a leader all day. look at the xlk, technology, etf, it has managed to be leadership the last two days actually bank stocks, also if you look at the xlf financials, they did get a lift, but it seemed almost from very deep oversold levels only in sync with the overall markets. had some relief, and i was going to point out volatility index which hasn't come in very much, still above 21 right now shows the market, bob pins, is still a bit on edge. >> we had cohen headlines and the "national enquirer" story about a settlement there

that had a little bit of an impact on the market important thing today, mostly positive trade headlines and all of the usual industrial stocks, the bogues and caterpillars of the world and move to the upside that's a positive, but you can see how jittery that is. almost like any piece of news. it's like a 2.0 beta if something would drop the markets 100 points, itdromtd market 200 points. is this a significant headline and it's not clear what's clear is that the market volatility is much higher than it normally is i think the stock of the day has to be stepcent the big headline is they just got the deal done. tencent music, priced at 13. remember the price talk was 10 to is a, the company wanted 14, but it got down at 13 pricing at an each 13.10. it did get a haircut remember, they postponed that. it was two months ago they would go in october and stopped because of market conditions and came out and said, okay, we would like to see a valuation of

they were taking 25 billion to 30 billion went public at a 21 billion valuation. good news, it got done and nice first day of trading up 7%, 8%, did take a haircut and that's a sign across the bowe of what's going on. >> below the range, for $20 billion ipos don't happen every day. i do think that there's some sensitivity out there. there's a fatigue with the headline focus of everything, right? so we have the s&p 500 now, 26.53 and when we got that trade truce news, that market rallied up to 2783 so we're grinding lower to the low end of this range land you wonder if it leaves the market susceptible to genuine verifiable good news at some point. >> 2300 to 2,8800. not a lot of people think we'll hit that towards end year sitting at the low end of the trading range.

at least we're up today, even though we're well off of the highs. tencent got the deal done, and we're still dependant on headlines. >> markets just fizzle below the flat line. bob pisani, thanks very much ringing the bell here at the big board, river north capital management >> the parliamentary party does have confidence in theresamay. [ applause ] does have confidence in theresa may has leader of the

conservative party the number of votes cast in favor of having confidence in theresa may was 200, and against was 117. under the rules set out in the constitution of the conservative party, no further confidence vote can take place for at least 12 months. the results are in, prime minister theresa may has survived the in confidence vote and has won. let's go to wilfred frost. pound continuing to rally on this news. wilfred? >> well, sara, i would say the pound is up on the day but it slipped a little bit since this result we were sitting at 126.4,

currently up more like 1%, 1.is so a slippage of .2 of 1%. the important headline is she got over the crucial headline of 159. she remains as the leader of the conservative party and remains as prime minister and cannot face another vote of no confidence from her own mps for at least 12 months that said, the number of votes against her in triple figures. 117 against and 200 in favor and people here sort of expected her to get about 80 or 90 against, not quite over that 100 level. it's not probably high enough to raise a serious and immediate question of whether or not she should resign, but it's probably more than she would have liked to see vote against her, of course, 117 against. now the big question from here as we discussed earlier. are those 117 people who failed to get her out now going to fall in line and say we tried, we failed and now we will vote with

her brexit plan. the big expectation is that they will not, and that sticks us in a position that's not really dissimilar from where we were last friday over the weekend which is that there is a middle ground brexit plan on the table, but theresa may doesn't have the votes in parliament to get it through, and that continues to raise the possibility of the tie binary extremes of some kind of second referendum or a no deal brexit, and so, sterling, as we look at things, up around 0.9%, right on 126 it's in fact lower than where it was at the weekend but higher than where it was last night and early this morning guys >> so what does that tell you, wilfred, that now reality sets in hand now comes the hard part? she will have to redo the brexit deal and get it passed >> i think it tells us that this extraordinary three days of threats and question marks over her leadership have been settled, but it's not like we've rallied meaningfully as if

brexit is no longer an issue her two sort of swing factors from here is whether we don't have a no deal and that's whether she goes to the european council as she does -- as she plans to do tomorrow and secures something of note. does she get some kind of time limit to that all-important backstop, and if she does, is that enough to get a handful or 50% or so of those people that voted against her tonight to back her that's one crucial swing factor. the other is the timing of all of this, does she get closer to the crucial march date, and does she threaten these brexiteers that have voted against her tonight with them to fall in line with some kind of brexit at all? the crucial point being we're lower than where we were at the start of the week. significantly lower than where we were before the referendum and on a three-month snapshot

we're down 4% so it's increasing in a longer term time frame and slightly decreasing as of 24 hours ago. >> all right wilfred, hang on stay there with us we'll talk more about these market and breastit axit with or guests larry, if you had to make your list of things to watch, to be would beied abo -- to be worrie, to watch, how much in general has this market been moving based on some of these global concerns >> i would say brexit is secondry i still think the major driver is what happens with china and the trade deal by far that's been the driving forts force. if you think back the s&p 500 was at a record high september 20th that's when they implemented the 10% tariffs, and since then it's been a struggle ever since, so until we continue to get more momentum and positive movement with those tariff trade talks, i think that's going to continue to be the driver. >> i just want to mention what

happened in. final few moments of trading for the overall market because it was interesting, mike. we had another fading of the rally. >> yeah. >> sort round two in today's session. the dow actually closed higher by 157 points. at one point today we were up more than 400 points layer, this is the fourth day in a row where rallies have been sold it's a whole lot different than it used to be. >> i call this the tic-tac-toe market if you play tic-tac-toe there's no winner on either side, wait for somebody to make a mistake or wait for an opportunity to take it higher as you've been talking about, been in this range 2600 to 2800 and we need significant makeout to take us higher. >> also another day when the market closed lower than it opened, right, so all the gains in a sense and more happened in the futures before the market opened, in the s&p anyway, and so over the course of the day you actually had a net decline because the opening print in the

market is above where we closed. >> one question that people are asking is what led to the selling intraday you did have some hopes of optimism on the trade talks to your point, larry. i mean, this morning the huawei cfo was granted bail we know that came overnight. president trump said that he would use that as a bargaining chip potentially in the trade talks. china made some gestures "the wall street journal" reporting that they would allow more access, buy more sbeenz, all that have was looking pretty hopeful and then the legal issues with president trump and the hush money payments and that sort of seemed to shake things a little bit. >> the market is reaching for an excuse to sell off instead of reaching for excuses to buy, and i do think that's a change you can go farther back than this week. go back to the first trade truce and go back to the elections, the big one-day rallies on there. i don't know if it says something is changing in terms of the underlying character of the market but that's what's going on. >> it's a 24 hour market right now, and when we close, all of a sudden we'll get news coming from overseas and exactly what

happened last night that drove us up, the opposite could happen tonight, and i think that's important that out got to keep up with the headlines, but underlying haul these headlines the fundamentals are higher and i think it will take us higher into next year. >> david, obviously in the background of all of this is a fear of a slowdown of some magnitude, and then the financial stocks have really been an anchor on the indexes as well, so what do you think the market is sorting through, and where might it head from here? >> well, i think, again, the market is a product of company fundamentals and financial conditions in general in a more broad sense, financial conditions, and what you've seen since june or september is a tightening of financial conditions you've seen it in trade. you've seen it in the fed. you know, you've seen it in the brexit controversy all of these things are tightening factors so the market adjusting to a tighter financial company. the companies are doing fine, but financial conditions are tightening, so we have to wait and see what the fed says next

week, and eventually the financial conditions will be reflected in the market and the market will be moving higher and the markets are fine we're battling this macro financial conditions against very, very good company fundamentals. >> david, we turn to you often on banks the financials acting very poorly, just over the course of the year real. some people are wondering what the message the banks are telling us are about the economy, financial conditions, potential recession. what are you getting >> well, i think they are telling us there's been two or three fairly large conferences since the end of the september quarter, and they are telling us that loan growth is okay, not great. they are telling us that deposit costs are starting to eat into margin expansion or even stabilizing margins. credit is fine, but at end of the day i think the -- the fear is that things aren't going to

get any better and that a year from now or six months from now credit costs will start to rise, margins won't be better and loan growth won't be any better so you're signature here with a very difficult story going forward. again, as i said before, financial conditions are tightening, financials are at the forefront of that, and in a sense they -- they have benefited from loose financial conditions, let's say, beginning in 2010-'11 and now they are hurting from tighter financial conditions you're not seeing it in healthcare you're not seeing it in drugs or utilities. you're seeing it in financials, so they are telling you financial conditions are tight, and -- and until the fed eases up, i think it's going to be a place you have to be careful, and you have to know what you own. >> can you buy the banks, larry? >> so, i'm neutral on financials afternoon the big pullback that we've seen, i think they are getting more attractive. >> people have been saying that for about a year. >> but i think the one catalyst could be that we actually see a steepening of the yield curve. ful fed comes out next week and does a dovish high, you could

see the longer term rates start to move higher because i think economic activities as we go next year will continue to be stronger, and that will health financials from the capital market companies, this volatility, by the way, is a good thing and that will help drive training and m & a activity will continue and you could start to see them perform better going forward. >> it could be a good thing. citi warned on fourth quarter trading revenue so it seems like a zero sum game. >> you have to look at where the trading is fixed income has been a challenge. >> i think a lot of market, equity volatility, some of the capital market activity should continue to do well and that could drive us higher. >> at top of the hour we got the news that british prime minister theresa may did survive a confidence vote within her party. she will remain prime minister but wilfred, she did get a no vote from as you pointed out a few times more than 100 lawmakers, more than expected, i

think 117. does that influence the path from here when it comes to negotiating brexit and her task at hand? >> yeah, well, listen, let's talk about the numbers, first of all, sara. 117 mps at the total of 317. that's 37% of her own mps that voted against her, and, of course, don't forget that her own mps don't have an outright majority themselves in parliament, so the math again going forward to get a deal through looks incredibly difficult, but one thing that i said that was key earlier is whether or not the brexiteers that triggered the vote of confidence in the first place would now fall in line and to say that they will support her and her brexit deal. we were speaking last night to the bbc and it was said that she ought to go to the queen now and resign, pointing to the numbers, 117 that voted against her, so a pretty clear sign, of course, from one of the brexiteers in chief, if you will, that they will not fall in line.

all of that said, in the short term, if she decides to plow on regardless with this vote -- with this plan, her power strengthens. she cannot face a vote of confidence in the same way from her own mps for 12 months so her power increases, and the medium hand long term, of course, a lot of questions to be answered. >> well, that's why we will keep you there. until we get some questions answers. wilfred frost in london. we'll check back with you later. >> and our thanks to larry adam for being here for the hour and david ellison as well for xhepgt on this market. still ahead on the show. we'll continue to talk about what we saw. the fade of the rally. dow closed higher by 157 points. how much does it have to do with the fed? president trump taking aim at the fed saying jay powell and company would be foolish to raise rates next week. up next we'll debate whether trump is correct and whether the fed should alter its rate hike

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to raise or not to raise, the question facing the fed. jeff gundlach said the fed is on a suicide mission where the testify stitt increased as a share of gdp. >> president trump saying the fed would be foolish to raise rates next week so should the fed indeed raise rates in december joining us is peter boockvar and chris thornburg. thanks, guys, for being here peter, the world still believes the fed is going to lift rates, at least once more in december does it make sense to go through with that? by the way, the economic data is conflicting. i guess, we probably shouldn't present it as if it's kind of -- it's kind of a one-way story that they in fact don't have the evidence to do that. so what do you think is going to happen, peter? >> right, it's extraordinarily a tough decision but let me preface my answer that it's obvious the fed missed the

window when you're at the inflation target, you should be at the level of interest rates where you want to eventually be. that's 3, so if they would have started earlier they would be here today and it would be a much easier decision to make the second thing that i want to say is the fed is in a no-win situation. they can stop here and not hike and further inflate the corporate and sovereign credit bubble that they have created along with other central banks and they can keep the economy going and at some point the credit bubble ends at some point have you a recession. if you want to be able to deal with that with the fed funds rate of 2% or would you rather have it at 3, and keep in mind the next rate hike is finally after ten years going to get us a real positive interest rate so with the core cpi today at 2.2% and fed funds at 2, 2.25, the next one will give us a positive interest rate. so, yes, i do think they should hike, but i'm fully aware what have that will lead to and what it all means i believe you get it over now

rather than continuing to wait. >> chris, should they hike >> absolutely not. look, i'm not sure why anybody would think the fed needs to be at a 3% target rate. that doesn't make any sense. we live in a world of very low inflation right now. yes, the core interest inflation rate was at 2.2, but it's already dropping and money supply is very low the fed should be worried about deflation and should be more active about getting more inflation into the system at this particular point in time. definitely should not raise and if they go to 3% and flip the yield curve, the potential consequences could be catastrophic over the course of the next couple of years. >> i mean, we just had the ism for manufacturing and services hit 60 basically had unemployment below 3.7% once again. you're still adding net jobs it's -- it's -- don't you think it's difficult to say that somehow the economy is so fragile at the moment that just another bump of 25 or 50 basis points, chris, is going to tip

it over the edge >> oh, no. i'm not saying that. you're absolutely right. there's a lot of momentum, and as far as an inverted yield curve go, the history that have in recessions is correlation, not causation, but let me ask you a different question why are they tightening? what's the point of that we live in a world of very low real interest rates, and in that sort of world by necessity the federal funds rate is going to be pegged at a relatively low level to pass episodes in u.s. history. it makes no sense to continue to raise those rates given that the ten-year bond has taken a big dive over -- it's gone up quite sharply over the course of the last couple of weeks. >> peter, i'll give you the last word, and maybe you could just throw in the added complexity of the president continuing to hound them for raising interest rates, including saying a move next week would be foolish. >> we're at 2% we're going to go to 2, 2.25, that's it, so on the one hand to say we have the greatest economy in the history of the world and say the fed should stop at 2,

2.25, i think we should take that with a grain of salt. i don't want to repeat the mistakes of the bank of japan. the bank of japan just got stuck over all these years with perpetual easing, perpetual rates another zero because they were afraid to take some pain. they were afraid to get out of it, and i'm afraid if we stop here, if we get trapped near zero, the fed will be completelyism at any time to deal with anything that comes our way and i promise we will have a recession and would i rather go into the recession with the fed funds rate closer to 3 than closer to 2. >> we've got eight cuts already to do if you have a recession and maybe some question again, but i know nobody wants to necessarily -- >> negative rates. >> get into that treadmill just yet. peter boockvar and chris thornburg, thanks very much. >> i was bringing up the trump comments to suggest it makes it more complicated because now there's going to be a perception if they do pause, they are caving to political pressure. >> i wonder if the december hike gets them out of that trap

though at least they raised once after the comments were out there. >> let's see what president trump said if they do something. british prime minister theresa may will speak shortly after surviving a no confidence vote. >> you can barely see with the big christmas tree. the farm bill that just passed the house could lead to hemp-based products like cbd oil showing up on shves elof retailers like walmart and target that's coming up (baby crying)

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a live shot ten downing street in london this evening where we are waiting prime minister theresa may to speak. she has just learned the results of her no confidence vote. she survived she will remain prime minister 200 votes within her party for her. 117 votes against. those are mps, members of parliament, from her own party voting against her wilfred frost telling us that was a lot more than was expected how she will address that and how she will address her win and how she will address what's next on the brexit front and what she can craft to get it passed in airport so they don't crash out of the eu in march the pound still rallying though, off the highs, just before that vote. speaking of voting, the house just passing the farm bill here in the united states sending it to president trump's desk to sign it into law that could be a huge win for producers of hemp-based

products our aditi roy has the details. aditi. >> reporter: hi, sara, industry experts say the 2018 farm bill could be a game-changing moment for the cbd industry the industry expects to reach nearly $600 million in sales this year, but if that bill becomes law and president trump signs it, it's quickly expected to rise past the $1 billion mark, and one research group estimates the market could reach $12 million by 2022. if hemp-based cbd becomes legal expect big box retailers to start carrying cbd oils on store shelves. mass retail corsi include costco and walmart and kroger as well as cvs and walgreens and department stores like nordstroms, saks and macy's as cbd disrupt beauty space many companies say they have been speaking with mass retailers to bring their

products to more households. there are a number of cbd startups in the beauty and wellness space, but biggest companies in this space are shore lot's web, cv sciences and if cbd is legalized it will pursue a listing on a major u.s. exchange and the ceo of v sciences hopes hemp legalization will help push through his nasdaq application >> aditi, thank you very much. we have theresa may in london giving some remarks. >> this has been a long and challenging day, but at the end of it i'm pleased to have received the backing of my colleagues in tonight's ballot while i'm grateful for that support, a significant number of colleagues did cast a vote against me, and i've listened to what they have said. following this ballot, we now need to get on with the job of delivering brexit for the british people and building a better future for this country

a brexit that delivers on the votes that people gave, that brings back control of our money, hour borders and our laws, that protects jobs, security and the union, that brings the country back together rather than entrenching division that must start here in westminster with politicians on all sides coming together and acting in the national interest. for my part, i've heard what the house of commons said about the backstop, and when i go to the european council tomorrow i'll be seeking legal and political assurances that we'll assuage the concerns that members of parliament have on that issue. but while delivering brexit is important, we also need to focus on the other issues that people feel are vital to them, that matter to them today, the issues that we came into politics to deal with. building a stronger economy,

delivering first class public services, building the homes that families need we owe it to the people who put us here to put their priorities first. so here is our renewed mission delivering the brexit that people voted for bringing the country back together and building a country that truly works for everyone. >> are you going to be able to get a brexit deal through? >> some brief remarks this evening from prime minister theresa may who continues to fight on, surviving the confidence vote from her party and acknowledging that 117 is what she said a number of the members of her party voted against her, said that they would listen to what she had to say. wilfred frost has been listening in from london the path of brexit i'm not sure becomes more clear after she wins this vote, wilfred. >> no, it doesn't, at all, sara,

and the key line in her comments there though is we must get on with brexit, so she, of course, is taking this vote of confidence as exactly what it is as a chance for her to continue as we know for 12 months at least she cannot face another vote of confidence in her leadership from her own mps. she could face it more broadly in parliament if the leader of the opposition tabled a motion, and this is the sort of catch-22 that we're in. as i mentioned earlier one of the lead brexiteers that triggered this vote of confidence still thinks he should resign because the parliamentary math remains so difficult for her, and moments ago we got a tweet from the labor leer, jeremy corbin who said, quote, tonight's vote changes nothing, and he went on to say she must now bring her botched deal back to parliament next week. sara, as you rightly said, does this change anything on her deal absolutely not unless she secures something remarkable

from the european council where she visits tomorrow. one fellow reporter i was just talking to said they will look at this math and consider it very hard for her to get it through parliament so why would they break their red sflins it focuses on that now, because it's clear the rhetoric from her opposition and other own party mps that voted against her, that they will need something remarkable from the eu to change their position on the brexit deal. >> the eu has been relatively rigid in this whole process, right, in terms of deciding what they may give as concessions what is their calculus right here if they look at any potential deal as not likely to pass parliament, but are they simply pleased to allow the uk to allow in this limbo state for a while? >> continue if they want this limbo state. i doubt that they would want that it's bad for the uk. it's bad for the eu. i think the -- the interesting

balance that we've got here is if we don't get a middle ground deal, whether it's may's middle ground deal or anything else, which of the two binary options becomes more likely? six months ago no deal was definitely more likely than remained it is, after all, as we know the default path from here if nothing else is achieved, bu what is certainly true, whether it's in the last month with things like that european court or justice ruling or just the last 24 hours. that balance of probability between binary no deal or binary remain has started to tilt a little bit towards remain, and what we saw tonight was that the people that definitively are willing to go down the no deal route, the brexiteers didn't have enough to win over the leadership of the conservative party, and they almost certainly don't have enough to win over parliament so if the eu is willing to take that gamble, maybe the odds for what they ultimately wish for

most of all remain are rights. still, it's a small percentage it's not 50% plus. >> and just to be clear, i mean, not to go too far down the rabbit hole into british politics wilfred, she will need the 117 votes from her tory party to pass the brexit deal, right, because she doesn't have a majority. >> absolutely right, because as i read out the tweet from her opposition labor party, they are still very much against the deal there's 650 mps in total, so a simple majority would be 326 she only has 317 herself, less than half, and tonight 117 of those voted against her, so the math is pretty much implausible unless she changes her deal, marked thely. >> while investors will be paying attention to all of it, right now the british pound holding a 1% gain. it sort of shot up after the vote and game back down to levels before the vote.

>> the gain i think has to be in perspective. it's down from where it was at lunchtime today. it was up 1.5% and even still we're down just week to date we started over saturday and sunday above 127 we're about 126 now, so, yes, it's up 1% since early this morning, but i'm pretty -- on pretty much any measure we're close to the 20-month lows that we touched yesterday late evening. >> absolutely. >> there can't be another referendum unless i'm there with you, wilfred, so hold off on that. >> full referendum takes some planning >> boots and liberty, you'll be busy >> all right no doubt we'll talk to you pretty soon, whiffle thanks you. let's take a look at how we finished the day on wall street, right at the service, looks like an unremarkable day.

we were at one point 1.8% higher, s&p faded throughout the afternoon and the russell 2000 did manage to rise 1% on the day. nasdaq almost that much. time now for a cnbc news update with sue herera hi again, sue. >> hello again, guys heroes what's happening at this house, everyone. at the united nations, secretary of state mike pompeo again being pressed by reporters on the saudi crown prince's involvement in the murder of journalist jamal khashoggi. >> ambassador haley said something very consistent with what president trump and i have both said which is that we have already held accountable a large number of persons who were responsible for the heinous murder of jamal khashoggi. >> georgia's governor says norfolk southern is moving its headquarters from virginia to atlanta. the company proposing construction of a new campus with 750,000 square feet of office speed in the city's midtown area the project would involve about

850 full-time workers relocating to the city of atlanta. and google release its top searches for the year. number four, marvel founder stan least. number three rapper mack miller who died of a drug overdoerks number two was a swedish dj known by his stage name avici who died at age of 21. number one, the world cup of soccer and in case you're wondering, meghan markle game in sixth. that's the news update i'll send it back downtown to you. >> not my top five google search eds of the year. >> i guess a lot of people weren't sure who stan lee was but some people were making a big deal about it. >> exactly. >> thank you. we've got a news alert to tell you about out of washington let's send it to john harwood. john >> reporter: sara, president trump still does not have a new white house chief of staff to replace john kelly who is reportedly leaving at the end of the year dow jones is now reporting that

mark meadows, the official from the house freedom caucus, republican congressman from north carolina, is now no longer a candidate for that chief of staff job. he had been seen as a leading candidate. dow jones is reporting that trump has said he wants him to remain in the house. don't know whether meadows ultimately backed away from the job or whether that was trump's decision that he was dissuaded by others. that represents a second capped depot to have fallen through previously nick ayers, the current chief of staff to vice president mike pence, declined the job and said he's going back to georgia, so this may mean that john kelly stays on for a while until the president can find someone he said he's expected to in the next week or two that search is not done yet. >> thanks for the update, john harwood on the president's potential next chief of staff. markets rallying on renewed hopes of a trade deal between the u.s. and china and president trump telling reuters he would be willing to leverage the arrest of the huawei cf ho in

those negotiations our ylan mui and deirdre bosa are covering that story for us. >> there was a report in "the wall street journal" that beijing could make away from its made in china 2025 program that. program covers about a dozen different industries and would increase the domestic content of manufactured products to 70%, according to "the journal. this was supposed to roll out early next year, right in the middle of trade talks with the white house. now, if china does pull back from this program, commerce secretary wilbur ross told cnbc earlier today that american companies wouldthen have a better shot at competing in china. >> for the 2025, we don't object to them trying to become more involved in high tech. we do object to using inappropriate methods like stealing secrets, like forced technology transfers, that sort of thing

we're perfectly happy to compete with them toe to toe as long as it's a level playing field. >> some other positive headlines. china appears ready to start buying u.s. soybeans again as part of this trade truce wilbur ross pushed back against reports that the administration is weighing a travel warning on china. guys, he said american executives should feel safe in the country. back over to you >> ylan, thank you very much reassuring at least. president trump saying he could leverage the arrest of the huawei cfo in and would intervene in the situation if necessary. deirdre bosa joins us now with that angle. >> hey, michael. in one day the huawei cfo went from canadian custody and trade threat to potential bargaining chip in trade negotiations between the u.s. and china now, canada has firmly denied any political motivation in association with her arrest, but its involvement has complicated issues today just a day after her release on bail. prime minister justin trudeau saying he disagrees with the

idea of use the arrest of leverage in those negotiations canada's foreign minister about to hold a press conference on the extradition proceedings. the u.s. has 60 days from the time of the cfo's atroest five canada has been caught in the middle china threatened grave consequences if she wasn't released, and last night beijing confirming it's holding a former canadian diplomat under investigation of jeopardizing china he's national security, but despite backlash against president trump's comments on the huawei case, it would not be the first time he intervened on behalf of a chinese company or used technology as leverage. earlier this year, he changed course on zte saving the company from bankruptcy, so, guys, that is providing a bit of today's optimism back to you. >> all right thank you for the context, deirdre bosa. shares of forecast climbing nearly 2%, up 5% this week up next, we'll head to fortune's most powerful women's conference and talk to facebook's vp of

policy managemenabt t outhe social media giant's content and advertising policy be right back.

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the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. facebook shares have been hammered down 33% since all-time highs back on july 25. since the summer, the social media giant has drawn all sorts of scrutiny for data privacy vie lags vielations as well as the spread of fake news and hate speech as well as the government and potential regulation the fwhom charge of facebook's

content policies is right now with our julia boorstin at the fortunes most powerful women's next gen conference in california julia, take it away >> reporter: sara, thanks so much i'm joined by monica bickard, vp for policy management. >> thanks for having me on. >> you're responsible for everything hat facebook when it comes to content, that includes neighboring news and all sorts of hate speech that's been used to incite violence all over the world. what do you say to criticism that facebook hasn't done enough to tamp down on hate speech, especially in myanmar where there's been a communication tied back to facebook? >> first of all, let me be clear there, he's no place for hate speech or incitement to violence we're not always quick enough to remove that content. a big part of that is talking to real groups on the ground,

people in communities and community leaders and hearing from them. what are the new trends? had a are they worried about in terms of safety and then working with our engineers and our content reviewers to build the tools to find that content and remove it. >> you may have the rules in place, but that hasn't prevented facebook from being used to incite violence in places all over the world, india, myanmar or countries in africa does that mean you're not enforcing the policies hard enough >> we're working hard to enforce them in the last quarter we've actually removed 3 million -- nearly 3 million posts for containing hate speech now, this is a big site. we've got more than 2 billion people regularly using facebook around the world and about 87% of them are outside the united states so when you think about what hate speech looks like in myanmar, in sri lanka, anywhere, in any country in the world, you've got to think about different trends and different languages. >> but can you ensure that facebook is not used to incite genocide, again, the way it has

in myanmar >> we're working hard to prevent it we commissioned a human rights group in myanmar to understand what we can do to do better there. we've had teams going out to the region and meeting with civil society groups and safety experts on the ground so that we can make shower we're building the right tools. now, i will say in the past half or in the past quarter, our engineers have built tools that are focused on finding hate speech in myanmar, han now the majority of hate speech we remove in burmese we're finding ourselves before anybody has flag it had. >> there's been a lot of criticism of facebook's handling of these issues and slow to react, not just in your field but also in privacy and transparency going on with the company. do you feel like the company has the right management in place to address all of its challenges? >> i do, and really here's the bottom line. even from a business standpoint, if people don't trust facebook, they are not going to come and use it making sure that we maintain the trust of our community is just a foundation for us. we have a rigorous privacy

process that's overseen by our chief privacy officer, and i do have a lot of faith in that team. >> in terms of mark and sheryl, do you think they will both stay in their roles >> they both said they are going to, and i have to say they are wonderful to work with. >> thanks so much for joining us and telling us about your work. >> thank you. >> especially when it comes to content management really appreciate it i'm jurtsin here -- i'm julia boorstin >> coming up, two new episodes of "deal or no deal" tonight on cnbc, mike is heading to the telestrators to play "deal or no deal" with two mystery stocks, and you can play along at home with us. "closing bell" will be right back so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all...

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requests deal or no deal" is back tonight on cnbc 9:00 p.m. mike santoli is so excited he put together a special segment at the tele-strator. >> i'm running through the rules of our version we're going with two different stocks, mystery stocks last year's performance plus statistical stuff. here is stock number one showing you the chart of this stock how it did in 2017 last year. obviously did not do well. huge decline, down 45% in 2017 had a moderate forward price earnings ratio of 16.7 at the end of last year and only 17% of analysts with a buy rating not a well-loved stock very tarnished number one number two, i'll show you, stock also did very poorly almost

actually a little bit worse than number one down 50% last year very expensive stock 65 times earnings still after the decline. a little more than a third of analysts saying it was a buy if those were the choices, sarah to own for 2018 for the current year, stock number one or stock number 2, your choice. >> i choose stock number 2. >> stock number two i think you'll be glad you did let's see what it is you like the expensive stocks. >> don't you have to use a briefcase to reveal. >> number two under armour i had a feeling. what other stock is priced at 65 times earnings. >> that might have been the clue i was doing as a decoy what was stock number one do you have a guess. >> retailer. >> do we have stock number one. >> oh, g.e didn't do so well. that would abmistake. >> same behavior, performance but if you thought the cheaper one

and the one wall street hated the most didn't work out well. >> very interesting. i always wanted to be a deal or no deal. >> this is on the up and up we didn't give you a clue. >> that's true i had nothing. i knew nothing except for i was covering under armour all day. >> i believe they wanted me to shave my head for this segment. >> very good one deal -- one year i dressed up as a deal or no deal girl for halloween. the year of meghan markle. you can watch the back-to-back episode of dale or no deal 9:00 p.m. eastern on cnbc. well we have a chart of a dow component that went public on this day 38 years ago. guess this one more mystery charts. up more than 33,0%in t00 scehe ipo date we reveal the name next. a basketball costs $14. what's team spirit worth? (cheers)

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dropping 5%. the the parent of joseph a bank lowered the 2018 eps guidance. citing weakens guidance for the fourth quarter. >> that's a steep drop we don't talk about taylor brands it's a billion-dollar company. >> a lot of people hated the idea of the merger when it happened it was controversial not working out meanwhile if you bought this stock on the public debut in day 38 years ago, you would have returns right now of more than 43,000%. >> we are of course talking about apple. the now tech giant went public december 12th, 1980 in the biggest tech ipo of the date floating the shares at $22 a share. more than 40 out of one thousand the employees made instant millioners and 25-year-old steve jobs finishing the day with a net

worth of $2,717 million. >> many stock splits since then. the adjusted price at first was about 60 cents in today's term gone from 60 cents well up up into the 160s. what's interesting here is until the middle of 2004 apple shares from the debut had lagged the s&p 500. essentially, before it got to the ipod, iphone era it was a kind shoot straight also ran computer market. it's fascinating in terms of the comeback in the last 159 years. >> when jobs came back, the ipod started. and then bam. >> and took off. and they were stopped being the also ran. >> all along the way there were questions about apple differs fieing the product base. and we still face the questions. you know it's more than 60% of the the revenues from the iphone the what is the next big thing >> they were a little greedy about it they reinvented a whole category of computing in your pocket appear and only a decade ago.

>> apple closing the day up. key to the market tomorrow we did get a rally but again closed so far off the highs. >> the market is caught up in its own noise. its own dynamics -- i mean i did see good things about the rally midday, the higher risk stuff doing okay fangs leading again. the banks even got a lift. so it seemed things were falling into place but once again the stubborn of towards the close big baying fade. >> headline driven >> yes. >> is it it bear market mood. >> yes. >> where it's no longer buy the dip it's fade the rally and it just takes a negative headline to knock the market off track. >> no doubt about it it's twitchy with incoming news i don't know about the bear market but there is a reserve. people don't feel there is a rush to buy the dip because there is another one also unclear how much hedge fund

liquidations and people at the end of the year reducing risk levels has to do with a lot of this. >> usually a positive. >> typically it's you have the air pocket that let's you drift up and the seasonal affects have been basically absent since november. >> feels like a new trade headline every day, many times a day. we get a fed meeting next we can. tomorrow, don't mips our show. i'll be at the yale ceo summit and have exclusive interviews from jim chenna been the chairman duncan brands mark fields used to run ford motors it's a diverse lineup of business leaders and investors please tune in we will talk about the market volatility and everything else. >> yeah, no, a great lineup and we said kevin plank. >> on squawk on the street. >> strait. >> separate with his c.o.o. mike see you tomorrow. >> all right. >> wilf in lond. that does it for "closing bell."

"fast money" begins now. "fast money" starts right now. live from the nasdaq market site overlooking the famous times square i'm brian sullivan for melissa lee. your traders tonight pete najarian, tim seymour, brian kelly, guy adami this show brought to you by joseph a. bank tonight on fast trouble in the transports, the dune underperforming the broader market and could spell trouble ahead. we explain plus where is the apple bounce the stock ending the day flat despite the broader rally but gene munster says it's a double. he will be here to explain and defend the call. why is he so bullish we start with the market that can't seem to hold onto a rally. the dow surging more than 450 points at the highs, a trade deal seemingly within reach. but stop us if you heard in one before stocks cutting the gains midday. and then selling off hard into the close. we did end higher. but 300 points less than we were at the