>> my consumers paying more at the grocery stores, the hardware stores, et cetera and coming in here with less dollars to buy and costs more i'm concerned about my business and next door neighbor down the other quote main street. the vitality of our community hinges on the success of our businesses >> reporter: both of the gentleman testified in d.c. hoping that the administration would reconsider their tariff policy back the you. >> thank you thank you for watching "power lunch. >> "closing bell" starts right now. ♪ welcome to the "closing bell." i'm wilfred frost here at the goldman sachs post today up 3% broader financials leading a broad and large market rally we have more on the story of goldman's partners leaving with 59 minutes left to trade, sara, we are 410 points. >> welcome, everyone

i'm sara eisen look at when's driving the action higher. a thaw in the trade war again. u.s. and china resuming tariff negotiations in october. strong economic data helping ease some recession fears and the s&p moving back above the 50-day moving average. key technical level. tech stocks are leading the rally. two big interviews coming up on "closing bell. box ceo aaron levie and with consumer staples near all-time highs kimberly-clark ceo michael hsu will join us see both interviews only right here on "closing bell. joining us for the entire final hour of trade is stephanie link. welcome back, stephanie. >> thank you. >> so are you a buyer on this trade rally? >> i bought a couple things today. i added to a few positions, nothing new, nothing big, but i think the debate will continue are we going into a recession or

seeing slower growth i have been saying i think slower growth mode and a lot of that because the consumer has been quite strong. i know a lot of people talking about that i spent this week at conferences. goldman sachs's consumer discretionary conference and barclays they had a consumer staples conference the consumer's just fine these companies are doing quite well staples, investing over last several years and finally seeing the fruits - >> the ones that have been investing. >> certainly so. they're seeing good growth, mid single digit growth and innovation is paying off discretionary is company specific but in end markets like housing or restaurants or the clubs, all of these companies had good things to say and expect the consumer to accelerate in the sec haond halo the year i felt good today so i bought a little under armour. >> oh. >> talk about that. >> and a lot more with stephanie. she is here for a full hour as the market stands higher by

1.5% dive binto the stories that are driving this rally let's start with you, seema. >> trade seems to be the big factor in play here as officials from the u.s. and china set to hold trade talks in october sending all three major indices higher and state media reporting that the chinese may unveil stimulus for that are banks. the dow is now on track for the best two-day rally in three months and as for what's driving the dow today, not just one stock, a good basket of stocks contributing about 20 to 30 points goldman, boeing, caterpillar and 3m biggest point gainers at this hour transports on the best day since june aero space with a new record high today all 11 sectors are now positive for the week led by consumer discretionary you guys were just discussing retail standouts for the week

gap, nordstrom, all up about 7% to 11% guys >> thank you dom chu looking at the sectors trading near new highs, dom. >> a number of them. split more in the red versus green side of things but you can see it's the financials, tech and discretionary, the cyclical sectors doing the heavy lifting. certain sectors are lagging today but some of them did hit record intraday levels earlier this week and maybe even today, as well. those defensive sectors still playing a huge role. as we tack about the big names, to the upside, take a look at the s&p 500 and the dow, a lot of those stocks here overall are doing pretty well. caterpillar, 3m all of them doing relatively well and then the underperformance of small cap stocks still a theme to watch very closely in terms of when's happening with the overall market, guys back over to you.

>> dom, thank you very much, as always optimism of a fresh round of trade talks with china sparked the rally. eam eamon jafrs is at the white house. >> reporter: within the past couple of minutes we saw gm ceo mary barra departing her meeting with president trump in the oval office no indication yet what was discussed during the course of that meeting we believe that china was among the topics likely to hit on during the face to face session. mary barra telling reporters which was a productive and valuable session as she walked out and meanwhile a story that's now on cnbc.com focused on those chinese media outlets and blogs seen as a mouthpiece directly for the chinese government and possibly a bit of an attitude change on these china talks from some of those outlets. global times saying there's more possibility of a break through with the new round of talk that is a blog saying it's very likely of new developments in

the china trade talks so that's an indication of optimism coming directly from some of those media outlets that are seen as speaking directly for the chinese government not clear what's driving the change in tone at the white house they say they're taking a wait and see approach on those talks. >> eamon, either way, it helped marks today for sure thank you for that. joining us to talk about this is tom lee and stephanie link tom, start with you, is it time in your view that the fear levels dropped and equities rallied a bit? >> yeah. i think it was really hard to keep that hysteria level in august high because i think people thought recession was around the corner and i think s&p had every chance to break down huge in the month and instead we are breaking out to -- out of the range and approaching all-time highs and very important signal. >> but it doesn't mean that the volatility suspect over, does

it fundamentally changed from what spooked the market in august to now? >> if i had to say what's changed, you know, number one, the volatility has come down if you look at the vix level or the vix term structure, they have really actually gone to pre-august levels. but i think the most important signal to us or message to us is s&p's been decoupling from the rest of the world. the s&p's held up really well. it's kind of telling us that the business cycle isn't as weak as the market believes and as stephanie mentioned, probably more indicative than a recession. >> does it show you that the market reacts to macro headlines above all else >> conference season should help but i do think not only is the u.s. leading the charge in terms of growth, i think people are more really extra worried about china and the slowdown in china, the deceleration and actually the data points from china have gotten better.

the pmi services yesterday actually had a three-month high, more stimulus overnight and didn't get a lot of press believe it or not. auto sales are stabilizing if china can stabilize that's a good thing right? obviously? that's implications for global growth overall and perhaps no the a recession their fear. >> what's stabilizing for yields, tom, is bond yields. above 150 on the 10-year how important is that correlation going to be? heading south on yields will spook the equity market? >> depends on the regime there's times people think lower yields higher stock prices and probably an environment where people want higher yields. i don't think there's a direct relationship necessarily but i think fundamentally interest rates are lower so mortgage costs go down. consumer borrowing costs go down and stimulus and i think there's positives coming out of lower rates. >> one of the things in your notes, tom, why you're bullish

long term is the cash return yield that's available, buybacks and dividends. do you think investors would live that a higher weighting in their considerations if it was all dividend yield does dividend yield sort of shout this is cheap louder than buybacks does? >> it's a great question you know, dividend yields have been attractive in europe for a while and people argued that european stocks are cheaper but factor in cash return which is buyback because it's real true free cash generation, u.s. companies not only returning cash but huge cash hordes. you are not seeing that in europe i think u.s. -- we write about this in our note 36% of u.s. companies in high value sectors. they contribute significant profits and value cap share and why they're building cash. it's only like 10% of companies in europe and like similar percentage in other regions so

the u.s. actually has really -- companies so it matters more than dividend yoeld. >> who will lead us to new highs in your bullish forecast because it is not fang netflix down for the month. >> i going to sound a little contrarian but i think the cyclical trade is the big trade into the end of the year because the isms turned down and people got really defensive but that downturn is telegraphed by the long-term yield curve and that same curve telling us cyclical growth is picking up stephanie mentioned other bullet points that seem bullish i think pressures could be building in the u.s. and bullish for cyclical stocks. >> oil in general hasn't stephanie, do agree with that? do you want to add to cyclical sectors? >> the value is definitely there. meaning technology, financials, energy, industrials. i'm overweight all of those

sectors and very painful it's been a defensive trade pretty much all year so i think if you can see china stabilize and get more stimulus there and see us kind of stabilize, yeah, i do i think you can see a rotation away from this very crowded sectors. >> i guess the question on industrials and the manufacturing exposure isn't that doing the worst than the rest of the economy, tom is it all cyclicals or - >> consumer discretionary are cyclicals. tech is cyclical you want to be overweight those but pmis are a confidence index f. the markets are choppy and someone says regional pmis are below 50, they're looking at the stock market, as well. it is very influenced by contemporaneous sectors. if it's a big issue, i'd say

it's a signal but i would have expected it to be worse given the plague of negative rates and the inversion of the curve and the hysteria surrounding it and it was 49. >> remember, the stocks are down so much. all of the industrials are down so much. they lagged for a while. not a lot has to go right for them to see a bounce. >> cyclical duo. tom lee, thank you very much steph is with us for the hour. volatile day for slack that stock is sharply lower but off the worst levels of the session after issuing weaker guidance in the first-ever earnings report last night ceo butterfield appearing earlier today saying the company's forecast based on the potential of unforeseen circumstances. listen. >> when you're going to the rate that we are, you know, adjusted for the one-time stuff, 66% year on year, that's a hard thing to model. there's a lot -- one big deal can make a big difference for us, one postponement makes a big

difference we try to be as upfront as possible and not a dynamic where people have expectation of whatever we say is 8% or 10% higher. >> meantime, another company in the ipo pipeline wework facing head winds sources telling cnbc the real estate company is slashing the ipo valuation less than $25 billion after facing widespread skepticism over the business model. the company last valued at $47 billion in the private market. so we're talking about almost half. >> this is clearly going to be one of the most challenging of loss-making ipos and the time it's coming out. interesting thing to frame this as bad for the public investor coming so late, is there enough left on the table but the other angle and the same applies to uber is it's nice to see the public investor is not completely duped in the same way as the last round or the last round or two of the private market has if it was 47 billion, i'm sure

there's caveats to that. much, much lower for this. the same for uber the last round or round before that higher than where it ipo'd at and good to see the due diligence by the public market is enough that the prices are coming down and the peak before this. >> you make a very good point and comes down to consumer and investor sentiment right? i mean, feeling like they want risk on, they'll deal with the companies at maybe lower valuations and not profitable. i mean, they have the growth but they're still investing and there's a mix, a balance to that, especially on the valuation side. >> wherever it was, 47 or around that, down to 25 that is a huge hair cut in the short space of time. i just wonder whether the likes of peloton, much, much smaller deal around the same time how much they'll be annoyed they didn't get it away three or six months ago >> the other question i have is wework is an own thing or

indicative of more of a malaise around the ipo market in it is beaten up for its own business model and the management and other quirks of its own business. >> that's why i mentioned sentiment. investors want risk on, they participate. but we have seen what uber has done what lyft has done and that's not great for the confidence at this point. >> more to come including goldman sachs shares up more than 20% this year and rallying again today but big changes could be coming at the firm. we have the details. and two big ceo interviews ahead. speaking with box ceo aaron levie and kimberly-clark ceo michael hsu coming up. august adp well ahead of estimates, gains of 195,000 jobs august ism also topping estimates with a read of 56.4 and factory orders did rise more than expected up 1.4% in july.

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welcome back and exodus of high level goldman sachs employees could be coming

soon with as many as a dozen partners slated to leave by the end of the year. wilfred is reporting all day on this shake-up. >> the first question, sara, why now? two main reasons for that. david solomon made big top level changes a year ago now making some more to the levels just below. second, the typical yearly cycle's increased and brought forward ahead of goldman's big internal review and strategy announcement due in sort of january next year and i get the sense that meant the company and the individuals needed to say this is right for us for three 0 five-year view, not just, yeah, still sort of working for now. more broadly there was a sense emerging towards the end of the tenure that people were getting paid based on when the firm did well rather than based on individual profit and loss performance. and david solomon wants to change that. he game from bear stearns and a big part of the changes he's making is to make that partner

title more aspirational. what it means to be a partner at goldman. you are guaranteed a $1 million base salary. you almost always make at least a $1 million bonus on top of that most make $3 million and more in total. some make more than that the chance to invest in internal deals and funds and increasing more internal partner meetings with access to solomon and in fact a lunch just today i'm told the recipe lamb, shrimp and hummus there are currently about 450 partners that's down from a peak of 500 and will tick lower from here and stay above 400 now, framed by some this story is goldman wanting to leave the classic wall street business model or glory days behind i think it's more solomon giving the flexibility and head room to return to it and pay people what they've deserved but pay people highly

but what they deserve if they perform well themselves. >> my question is how different is the structure to other of the competitors? >> not that different. i think that goldman used to be a classic kind of performance is everything and it's lost that a bit and wants to get back there. as opposed to this signaling that david solomon now wants to leave it i think it lost it and now moving back that way clearly none of wall street is as extreme as it used to be in that regard but the purer investment banks have more of it clearly doing more retail banking, more asset management, people in those departments will be paid more akin to the finance industry so as a total portion of goldman sachs paver sus 20 yores ago it is less than that but it's something to get back to to make it much more like you get paid well if you perform well and not just expect it as a default. >> he's done a good job at trying to diversify the company.

right? from being just like the intuitional hedge fund community, diversifying and the consumer world, as well. >> credit card with apple. >> credit card with apple. a few m&as you will see more of that. there's a lot to do but i think to your point other people get paid in other segments of the company better as they grow that business and outperform. >> i think that the share prices perform well off the lows that were infected by the scandal late last year. the big question will be how well received their big strategy announcement is in january they have quarters before then important and the big thing is that strategy announcement because they delayed it once if they don't deliver something to impress the market and also makes the market believe they deliver on the targets announced then there's more trouble but they're past the lows and now the focus definitely on the january strategy announcement. we have more online. a detailed reporting on the

story. cnbc.com. we've got just about 37 minutes left of trade. let's go to mike santoli for the market dashboard. >> we'll hit this market rally from a variety of angles the big exhale is going on in the markets today. after that, going to take a look at somewhat higher metabolism that the financial markets are operating under. is this a healthy stretch? we stretched out for a month in the s&p 500. what are the internals telling us about that? elastic demand in a very, very big factor in the economic growth but first, take a look at the s&p 500 over the last year putting this move in a context, why some people are attaching some significance to it. well, we have been talking about this upper end of the range where we closed yesterday and also was the top back in the spring also not much above where we were, almost a year ago. we have cleared that and the trade news was the trigger for that so that's definitely to the positive now, keep in mind, we have spent almost no time above this level

in the history of the stock market so it's not as if we have repealed the idea to be in the late cycle or go up away from here but what's interesting is the bond market, over the same span of time, see it is traveling a lot more dramatically down to the lows. keep in mind, we are back to where we were in july levels in the stock market but look how much lower we are in treasury yields that on a net basis is going to be a help for stock valuations provided it doesn't really mean that there's a massive risk-off trade and the credit markets are closing down if you talk about mean reversion and an unwind we might have more to go and bolstering stocks today. >> mike, thank you we were just talking about that relationship with tom lee. up next, despite the broader rally, lyft at the lowest levels since going public and later, another read on the consumer when lululemon reports after the bell the key things to watch in that

report from our seasoned reporter. and a check on commodities gold and silver both pulling back a little. cop we are a bit of a lift having been weak of late

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have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. welcome back time for word on the street. deutsch bank initiating lyft as a buy. $70 price target the stock may be bottoms and

likes lyft as a pure play in the u.s. suntrust raising match to buy $106 from $90 a share citing positive app traffic and revenue trends and expects tindr to drive. this before the facebook announcement of facebook dating in the u.s. football season kicks off today. american football, has moffett nathanson saying that the league is a swing factor for media earnings and stock sentiment with a buy rating on fox, disney, cbs and neutral on comcast and fascinating how much the nfl makes a difference to the companies. steph, we will touch on the lyft note this is really because of the pure play u.s. exposure and thinks that the u.s. ride sharing market is seeing serious rationalization and the ability to rise -- increase prices. >> it is the pure play way to play it believing in the end market and the addressable

market is strong, quite big. the growth is there but this is a company that's not making money, spending a lot at the same time. you have regulation issues in california so i respect the fact that the stock pulled back and the valuation is more attractive there are more unknowns and viewing ipos is i don't want to get involved in them for at least a year just to kind of get this stuff out there the lock-up, all this kind of thing. i understand the call. i just think it might be too early. >> the other question is ride sharing a good business? i'm not sure that's proven on the street yet. >> and if regulation and california is passed that's even more of a problem. their costs go up much more, like 20%, 30%. so then, then you're not making money now you're not making more then so i think it is that it is early to upgrade but i'm watching them both. >> speaking of the nfl, don't miss the regular season kickoff as the packers take on the bears

tonight 7:30 eastern on nbc. we have got 30 minutes left of trade we are higher by 414 on the dow. not far from the session highs a thaw in the trade war driving the action again. and the u.s. and china will resume tariff negotiations we're told in october. strong economic data helps ease some recession fears and the s&p moves back above the 50-day moving average with tech leading the rally. all right. we have got about 30 minutes left to go in today's session. looking at rally of more than 400 points on the dow. what's moving with seema and frank. seema, first to you. >> certainly a risk-on tone to today's market the dow about 230 points away from breaking 27,000 volume has been moderate about 4 billion shares exchanged shares below the 50-day average the outperformance of equities is notable from financials, technology, industrials are

being watched closely, that big catalyst has been, that trade meeting set to take place in october between u.s. and chinese trade officials but as we have seen in the past trade optimism can be short lived so traders here are certainly cautious about this move today. bond yields are steepening and why the interest rate sectors are left out utilities are down and the home builders that have done relatively well over the last couple of weeks trading to the downside the dow about 2% away from the all-time high. back to you. >> seema, thank you very much. frank holland at the nasdaq. frank? >> the nasdaq on pace for the second positive finish this week amazon, biggest impact on the nasdaq 100 riding the excitement of prime one-day shipping. good day for most of fang. facebook dating giving this stock a boost. chip stocks also getting a boost on the trade news trading at the highest levels since july 30th investors are leaving consumer staples. starbucks shares down after the

company said it saw the eps growth slowing pepsi the worst performer on the nasdaq 100. >> frank, thanks back to mike santoli for the second dashboard. >> right in the same themes in terms of a higher metabolism at which the market is operating. bond yields higher supposed safe stocks are getting sold off this is that relationship we keep an eye on the low volatility s&p 500 etf against the high beta. obviously massive outperformance by low volatility over the past year and see a gulf. this is the move of the last couple of days pretty dramatic. not that much of a selloff so it seems much more about the cheaper, under owned higher beta stocks picked up right now this index trading at 19 times forward earnings a lot of those banks and things like industrial andtransport companies in there that's a look.

another way of viewing this is goldman sachs high beta momentum index. this is pointed out last week saying it's a representation of how crowded certain trades are it goes long high momentum stocks high beta and short ones not working so look at how people have been doubling and doubling down on their bets. down 5% today. it's a pretty big move it is more dramatic. going to keep an eye on the shifts you should t shifts under the surface. >> thank you for that. still to come here on "closing bell," casino stocks took a dive this week on soft data and stephanie is picking a name in that space for her last chance trade that call and much more still to come here.

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welcome back it is time for a news update

with sue. >> here's what's happening that the hour cleanup efforts under way at the bahamas international airport after being utterly decimated by hurricane dorian groups of men trying to rake up debris k nbc meteorologist david bigger has the latest on dorian's track. >> it is still off the coastline, sue still holding off the coast of south carolina but because the eye is wide enough, we're seeing the effects throughout south carolina into north carolina, as well now, the track of the center point of the storm keeps it off the coastline in the morning for tomorrow it will be brushing parts of the outer banks of north carolina and keep in mind, though, as the system moves it will be producing a lot in the way of rainfall and storm surge ahead of it and the impacts will be felt over the next few days. >> thank you so much. researchers with the american cancer society looked at global trepds in colo-rectal cancer and despite a decline in older adults, there's been an increase among young people in

nine high income countries including the united states. and according to an espn report, the oakland raiders expected to suspend antonio brown following a heated exchange with that team's general manager. the two reportedly got into a tense argument over $54,000 in fines that the team levied on brown for missing practices. you are up to date that's the news update this hour sara, back downtown to you. >> sue, thank you. all the major averages up more than 1% today is this rally sustainable? where are the best opportunities right now? bring in adam parker nice to see you. >> great to see you. >> so this is a little bit of a cyclical party we had tom lee on earlier. stephanie link not buying the recession story, buying into stocks and especially ones that do well in a better economy like tech and financials. >> i like stocks i don't see why not. you get 2% dividend, buyback,

earnings growth. you can do that or guarantee yourself basically zero return or 1% return for 10 years. what sounds better to you? >> what worked rately has been staples, real estate, utilities. >> it is rate sensitive. you get rates down and then the high yielding stuff works. i think you need to be balanced. you have to take some opportunities where growth is strong, margins expand and could be in tech and internet and consumer and somewhere cash flows are -- >> on the valuations attached to the high growth sectors or stocks getting a bit stretched or legitimate? >> the way i think about valuation at my firm is there's parts of the market to be long expensive stocks if you buy a fast-growing stock that's cheap, the market's telling you something's wrong with it. cheap for a reason, either lack of replicatible or growth.

there's a host of software internet name that is people have been panicked about valuation on price to sales while they go up 500%. you have to be careful when it's the top 5% growers on the flip side, if something's cheap it could be cheap for a reason so i think you have to be careful about valuation in the market. >> something like slack, talking about this last night. growing the top line 66% i think was the number and aggressively valued and it fell despite that. is that something you're attracted to for the long term >> our process is threefold. we are not going to say we buy cheap and short expensive. i depends on the stock or what part of the market you are in. cheap two days, an opportunity and cheap for a reason the market's telling you something's wrong. think about the last ten times the market pulled back 10% or more in this cycle the stocks that were actually

seen the most multiple contraction. the market's right something's wrong and not like the absolute valuation level is really a sign that you should get in there and it's cheap the markets know earnings are about to be creamed. >> overall for the s&p 500, one of the big concerns is that margins have peaked. are you in that camp >> i think they'll slowly go up over time. as the revenue grows they drop through the bottom line than the current level with the base case and hard to accelerate the margin but i think profitability is fine. earnings expectations for next year are too high. that doesn't matter. analysts think 14% earnings growth and it's 6. nobody cares that they're down revised. >> all beaten. >> will they grow next year at all versus this year if they do i think the market's cheap. >> sounds like none of the

potential threats to the market are things that you care about what would make you think -- >> none, none of is a -- i don't want to -- >> what are the -- >> kill me later. >> what are you watching out for to make you drastically change your exposure? >> cycles to me really end when you have hubris or debt. excess inventory in advance of a recovery >> how about launching a trade war against most of your trading partners >> there's economic and political risks. those are real and as an equity person do you want to impregnate them in the forecast i don't know looking at corporate behavior it doesn't look that frothy to me on the debt front it is high in certain cases and coming with low interest rate. i don't see the top of the cycle behavior from the corporate perspective. sure, you're a tweet away from a different view but if you knew

you were going to resolve a trade war wouldn't the market trade at 20 times earnings with yields at 1.5? i still think it's okay in the way i look at distribution of outcomes. >> finally, wanted to ask you about the semis. you're a semiconductor analyst whipped around all over the place. >> that's the china exposure and what that presents ultimately pretty good businesses pretty hard to go in and replicate what they do they should trade at premiums to the market in my view. but it depends on which one you talk about the analog business, memory businesses they have different capital intensities and i don't want to make a wholesale call there but they should trade at premiums generally to the market. >> good to see you thank you for joining us. we are higher by 408 on the dow. healthy gains today. coming up, your last chance trade. and later, earnings results from lululemon key things to watch from that report next. after the bell, an exclusive

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time for your last chance trade. stephanie? >> wynn. pretty controversial china is in decline. macau 5% of total revenues and you have to believe it is in the process of bottoming and i do. vip is in the process of bottoming. i don't think it's going to be this month per se but in the next couple of months and slowly accumulating a position here the stock's down 40% from the high trades at 10 times ebitda. so in other words, this thing is battered down and it's a best in class company, good management, great assets, really cheap. >> i guess it's a lot of binary things with wynn and not this year factor but whether they get the license to operate extended. >> sure. >> which by all assumptions will happen unless the u.s./china

trade waresque lating. much, much worse it is almost to zero without the license extended but provided that doesn't happen - >> that's binary between now and then you can make a lot of money in the name, number one number two, i think they'll negotiate and not lose 75% of the revenue base and 78% of the ebitda if they lose this contract so i think that the risk/reward is attractive here and may be a trade which is why it's called last chance trade. >> correct also lululemon we'll get lululemon earnings here's what to watch in the release. the three growth drivers for this company, digital, men's and international. those are the double digit growers and why lulu stock has been a monster look at it against the competitors in the space nike, under armour, adidas this year, only adidas performed

better but going back from the last quarter, guys, the market basically done nothing, up 1.7%. so 12% comps are what the market is expecting and the company managed to deliver staying true to the brand and the consumer. it has been an outlier in all of retail why are you going with under armour that was a last chance trade a few weeks ago. >> it was up 40% on the year and now 10% on the year. right? i still think the turn around is attractive at under armour you have some good quarters, not good quarters but i do think there's an end game here and that is to improve the company and the operations and they're hiring new people. they have got now a nice management suite so it's not just kevin plank and they are executing and so - >> they are and improving the operations, the inventories, the

margins, the profitability the missing component has been top line growth. are they able to get back shelf space, do any sort of mass market innovation that appeals they have successes with the rock and the hover platform. that's where the question lies. >> that's exactly right. a lot of it is not only a product but also their supply chain. their supply chain was really in a bad shape and that is one thing that they went out and hired someone just to fix that supply chain i think if they have the right product which i do in pockets that they can actually see an improvement and i think that the international opportunities are enormous for this company. they're just beginning that the point so to me risk/reward at under armour more attractive compared to lulu i have owned it in the past. >> too late to get in? >> expensive they have the product. growing men's nicely canada going nicely and 10% comp

last year. great company. evaluation is rich. >> ten minutes to go before the closing bell dow's just off session highs up about 377 points. nice gains across the major averages and across sectors. take a look here in terms of performance technology and financials utilities and real estate at the bottom of the list. >> coming up, aaron levie to talk about the stake of starboard in his company and michael hsu to break down the state of consumer. those interviews just minutes away when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson...

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welcome back to "closing bell." just over five minutes left to go we are higher healthily as you can see. three senior citizen tors, defensive sectors. leading the charge higher. >> we have under five minutes left to go in the session. time for the closing countdown j.j. joins us. chief market strategist at td ameritrade j.j. how are you clients feeling? what kind of flows in sentiment are you seeing as we watch the market rebound >> yeah. you know, days like today i think and yesterday you look at them together it shows that there is a definite pent-up demand for equities and you

start to see it and i think you start to see it looking at the financials overall that's one area where the clients have been coming back in the last couple of days with encouragement of bonds the bond gets smashed, banks get boosted and that's exactly what you are seeing and you are seeing stocks like goldman sachs, jpmorgan starting to draw some interest over the last couple of days. >> j.j. as sara mentioned, much closer to the highs than august lows what are you watching? >> i think it is tough to say that we're going to get much outside 3,000 to the upside here and we're knocking on that door currently and then 2800 to the downside there's no -- it's great that we're getting back to the table with asia, with china in terms of when's going on with the tariffs, et cetera

without any real progress there other than we are getting back to the table and without anything definite, i don't know why they're going in and saying this is all done and buying with both hands and getting the downside it is the fear of missing out in case things are settled. so without some really definitive things coming out of these upcoming scheduled talks i find it very hard to believe that we can go much to the downside although we have had a lot of intraday volatility as you report on all the time, more in the last 25 days than we had in all of 2017 we don't really have -- we haven't really gone anywhere in 52 weeks which i think is the toughest part of trading for most people. >> thank you for joining us. over to mike for the third installment of the dashboard. >> looking at the market vital signs to see if it's a healthy stretch in the indexes above that august range. advancing and declining volume basically 3 to 1 to the positive that's certainly healthy and not overwhelming to the upside

a lot of times with the big momentum push days you see more than 80% new highs, new lows on the new york stock exchange handily to the advantage of new highs that's a positive sign that factor turned for the positive vix, one-year chart. pretty clear down trend here in the vix from the august highs. something similar in the spring down to 16 and then a kind of a deeper trough as the market stabilize. hard to say because we are in volatility season. now bonds with rick santelli. >> it is a big day around the world in 30 second. looking at two-day of our 10s. really firm even though we are not on the highs go to the uk, up 10 basis points but in the last 2 days up 20 basis points finally, italy all the ire of so much lower in yield than the u.s. and they are but they're up 14 basis points today. and the winner in percentage

terms in stocks is the nasdaq and for more let's go to frank holland. >> chip stocks especially those with a high exposure to china pushing the nasdaq to a two-day win streak nvidia up more than 6.5% with revenues from china and micron the smh etf at the highest level since july 30th when the u.s. said it would give licenses to american businesses to continue their dealings with huawei tesla also trading at the highest level since july it noes at great day for calf nated drinks and video games with the worst days here on the nasdaq over to seema mody at the new york stock exchange. >> thank you, frank. a strong day for stocks here in the u.s. but overseas, as well similar to yesterday, the gains started overseas, china ending higher by 1% even europe joined in on the global market rebound despite

that lackluster factory numbers out of germany the dow up 481 and we are off the highs of the session but industrials, tech, big banks driving the dow up dow closing at 26,710. s&p at 29 75 up 1.3% a lackluster moves for the day if you are just joining us, good afternoon welcome to "closing bell." i'm wilfred frost. >> i'm sara eisen with mike santoli. very strong day. the dow closing up 373 1.4% s&p 500 good for a gain of the fifth gain in the last six sessions nasdaq leading the charge up 1.75%. the russell 2000 index with a very strong day, every group in

the market higher, wilfred, led by tech and financials except for the defensive plays that benefited from low yields. it was a reversal of that trade with the yields popping today. >> big factor. 10-year back above 1.5%. oil managed to hold on to the flat line. >> good data. >> broad risk-on sentiment good data here not so good. as seema mentioned for germany factory orders box ceo joining us in a few moments. we'll hear also from kimberly-clark ceo michael hsu but let's dive in to the market discussion joining us still stephanie link. and jim paulson.

mike, if i start with you, kind of continuation of yesterday's theme. you have seen the vix drop further still. >> the market's making the case that what we saw in august was just a little bit of an overshoot in the direction of recession fears, dragging bond yields, well below probably where they should be fairly given fundamentals and positioned in a cautious, fearful way. all that stuff with a 6 or so percent decline peak to trough in the s&p 500 was pretty extreme. a lot of that reversed we had the economy in terms of trend we thought we had in july, a lot of data pretty much confirmed that at this point with the domestic consumer bond yields are lower. investors not positioned for further strength in the economy and why we are seeing this repricing. does it really get you to escape velocity no it shows you that low bond yields are a benefit when the credit markets are still

functioning. >> jim, it started with a headline about the u.s. and china talk trade talks. china being back on in october been here, done that how many times can the market trade like this off the whiff of talks? >> i don't know. it's been pretty profitable to trade on that for several times now. it just continues. it's not done much for investors, though. we are going nowhere fast. mostly up and down and having escaped out either side of the trading range here yet you know, sara, what i'm drawn to, i think back to the fateful tweet when the things, when talks broke down and we had the august debacle here and back up to the top again, what has changed in my view is the i think the economic momentum, economic reports surprise indices around the globe have really started to break out to the upside if you look at like west tex

global surprise index it's made a significant upside breakout and you can see economic surprise indices way up here in the united states. it went positive here just today. >> where where around the rest of the world? pick out some countries. >> look at -- yeah look at citigroup economic surprise index, wilf, in europe. it's turned up in the last 30 days japan has been strong. canada's just turned up last 30 days even the emerging markets are higher, even china's gone up as of late. here in the united states, we went from minus 70 two months ago to plus 7 today. i think there's graf it isvitaso what's happening here. the market not breaking down with negative yields and trade wars but also the chance that it could break out to the upside and increase regardless of what the fed does only because

economic momentum seems to be shifting more positively. >> is that a sign that stimulus still works? that's what we have gotten from central banks around the world. >> fiscal stimulus works better than monetary stimulus i would argue but i agree with what he was just saying in terms of the economic surprises because look at the baltic index at a new high, too. we are getting signal that is things are just not going down anymore. we see slow growth absolutely maybe not recessionary happy to see the leadership and economic data and then tomorrow hopefully everything doesn't turn upside down. >> mike, does the market get spooked as it gets close to the all-time high label even if that was first made quite a long time ago? valuations might be better or interest rates lower. >> it often coincides with an

area of a logical place to stall out. i think that happened earlier this year for a little while i don't think it's necessarily we're going to look at that 3,000 level saying this is impenetrable somehow i do think that the pattern has been making the new all-time high is relatively brief >> jim, do you think the policy support that is expected to come from a lot of the developed world in the coming weeks is that already priced in or is that an extra boost to come >> you know, i think if it comes as an extra boost because what i'm fascinating on is not the ecb or the fed may do now but what the market's done we have taken the yield curve except for the short end and dropped it by 150 basis points in the last 9 moths in this country, we have had similar long-term interest rate moves across the globe china, japan, germany.

the german bund plus 80 basis points in january 2018 and it is now minus 60 so there's a big easing by long-term investors there. we have money supplies up. we have yields down. fiscal stimulus here and the lagged impact now approaching nine months to a year i think is just starting to have its normal lag and is going to have positive benefits. one other thing to point out that's different right now from what it was when trump tweeted is we have just had a tremendous increase in fear vident. we have had so much talk of recession. do a google's trend search on recession and it looks like flat as a pancake since the '08 crisis and shot up to levels close to '08 just last month so there's a lot of fear combined with better fundamentals that's a nice combination. >> we are going to lululemon not yet? >> earnings, another strong

quarter out of lululemon i'll hit the main numbers for you here 96 cents a share earnings per share. that was higher than the 89 cents analysts looking for 883.4 million. that was better than the expected 845.5 comp store sales up 15%. that was better than the 12.2% expected 55% growth margin. i'll continue to dig through the results but again lulu having a very strong quarter beating, steph, already high expectations on the stock that has -- >> unbelievable. >> -- rallied so hard over the last year or so. >> up 8% from last quarter alone and outperformed these numbers look great to have a comp number like that against a 10% constant currency number last year at the same time, so impressive and speaks to the momentum of the product with women's and men's

certainly. you are early innings with the men. >> international growth for them, too. >> dtc was probably pretty god. >> up 30%. comps, include online in their total comps. >> 31%. >> same internet last quarter and yes. 10%. >> which was a lot higher than expected people expected 5% so that's more than double. >> does this reflect poorly on under armour >> no. >> are they separate >> i think they're separate and the underlying trend is very, very strong. i also own nike and benefits nike, as well. it all depends on what you are looking for. nike is your steady eddie. right? quality compounder lulu is a growth and under armour is restructuring value play i wanted quality and value or i could have just made it easier and own lulu but i feel like the valuation is high for me. >> men's is still doing really

well up 27% comps strength in tops and bottoms according to that. revenue 21% in north america in europe, what company is growing revenue in europe 35%? that's a new company there, just sort of setting up shop there. >> not many. >> it's a weak spot for companies across the spectrum and then the only other numbers to point out, e-commerce in china up 80%. >> awesome. >> talking about the runway for growth internationally, they like to put out these numbers to show the double digit growth there. >> as much as i poke fun of them including online sales in comps, online represents a quarter of the business by revenue. you don't have a lot of change that began as a physical format that have a quarter of sales direct to consumer growing that fast. >> also raising the outlook for q3 and full year 2019. >> not only are you getting a top line great growth but you're also seeing controls on the cost

side and that's really a wonderful combination for operating leverage so that you see great earnings growth on the bottom line. >> we will leave the discussion there. stephanie, great to see you, as well jim, our thanks to you, as well. we'll take the pulse of the tech and consumer sectors when we hear exclusively of box ceo and kimberly-clark ceo >> separately. >> looks like a double - >> back in 90 seconds. two different interviews and pulses both in the same hour servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done?

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have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. welcome back stocks rallying for a second straight day on optimism over trade talks with china let's go to seema mody for the big movers at the stock exchange >> well, while prior trade talks have not always yielded a lot of progress markets were encouraged by these round by trade talks set for october. putting this mood in perspective, s&p 500 trading at levels hit back in july before president trump escalated tariffs on august 1st and then china responded by allowing the currency to fall other interesting factors in the move, the dollar down about 1% in the past three days which is a boon for those multinationals that generate revenue outside of the u.s.

utilities and real estate sold off and gold seeing the worst day of the year. as you guys were discussing, retail, an outperformer. not just the specialty names but the big department stores like macy's and nordstrom >> thank you tech stocks driving the nasdaq higher today frank holland with the details. >> this two-day win streak led by the trade news and chip stocks especially those with a high exposure to china also nasdaq transports, we'll show you the chart big jump here from yesterday jb hunt up more than 3.5%. other trucking names, really surging. not a great day for calf nated drinks, soda, coffee, candy. pepsi, the worst performer in the ndx. back over to you. >> all right frank, thank you those stocks still trade in near all-time highs

activist hedge fund starboard value saying it owns 11 million shares of box amounting to a 7.5% stake in the company. >> box unveiling a new initiative this comes as twitter's trying to bounce back from the cyber hack during this ceo jack dorsey's account among others was compromised. joining us is aaron levie. thank you very much for joining us god to see you. >> thank you for having me on. >> talk us through your new cybersecurity initiative when's fresh about it? >> we launched box shield and it helps our customers be able to deliver more advanced security capabilities with work with banks, pharmaceutical, media organizations and governments and box shield to bring intelligent threat detection to how they work as well as let them better classify their

content for more advanced security use cases an m&a of a bank to be able toen sure there's no data leakage in the process and be able to be alerted to that or a media organization that's working on pre-release content, make sure it's not accessed by the wrong parties so box shield takes the core security and advances it further for our customers so we're excited about that that will be a new add-on product to release this quarter in q3 and available as a part of our broader box suites which brings all of our add-on product capabilities together for the customers. >> i don't know if twitter's a customer but is it something to prevent the hacks from happening? high profile ones including the ceo. >> i think it might be harder to solve the twitter issue. that was a cell phone hack that occurred with the cellular connection access. but in our case, what we are going to do is help customers be able to prevent accidental data

leakage or accidental access to information from outside parties or, again, malicious access to information. so banks, pharmaceutical companies, media organizations, global manufacturers will be able to protect and secure the content collaborating with partners, customers and clients. >> aaron, we wanted to ask about the starboard stake. have you spoken to them? do you know what the motivation is for their buying? >> yeah. obviously we tend not to comment on individual investor conversations and collaborate with the investors, starboard included, and oversaul they see an opportunity where shares are under valued in the market so we're very aligned with starboard's interest and we look forward to collaborating with them in this process. >> it raises the question,

aaron, for skeptics and people who wonder about the valuation why can't box be more profitable more quickly >> as we have reached greater scale, we are nearly 700 million in revenue is guided to this year, that's driving greater leverage in the business model and ultimately drive greater profitability. in q2 we delivered the second quarter ever of nongap profitability and we're ploroudo that milestone so as we continue to scale you're going to see greater leverage in the business and drive even better operating margins and profitability and i think what star board and others are focused on is really how can we accelerate that and get there sooner that's something that obviously we're focused on so we're very aligned on that front. >> would you ever consider a strategic sale of the business we have seen other cloud solution vendors get folded into more diverse, bigger companies with scale.

>> yeah. as a public company, we always consider the strategic options for the business we are going after a $40 billion plus market when you think about all of the enterprises in the world to secure, manage, govern and collaborate around the most important data and we think that $40 billion plus is going from on premise systems to the cloud and we have the leading platform that enterprises are choosingi that transition and significant opportunity to go capture as an independent company but again as a public company we always have to consider our strategic options. >> have you held off any acquisition attempts or partnership attempts in the last couple of years? >> we don't talk about that kind of stuff but in general we are really focused on making sure that we can build a massive business for the long run and we're always considering the best approaches to that. ultimately when we look at the customer base 95,000 customers

globally 69% of the fortune 500 we see a tremendous amount of opportunity both within our customer base as well as all of the new logos that we are going after to be able to sell the full breadth of the platform to the clients and our strategy focused on right now and looking at the growth rate of the business and when we look at what we're driving strategically we drive the full platform set of capabilities to the customer base and drive greater growth and profitability in the business. >> aaron, by what metric would you say that the market undervalues your stock you started by saying that was the case it does trade at a lower level than the debut early 2015 but based on the fact there's not consistent profitability, how would you say that the market is underappreciating what you are doing and presumably starboard to invest with ideas that are different than when's done at the company. >> yeah. it's hard for me to comment on the market's kind of appreciation or not for the

business and the value overall i think in general at box and what we are focused on is we know there's a tremendous amount of upside based on both being able to sell our add-on products to the existing customers and new logos as well as driving greater profitability in the business and getting more leverage looking at the dynamics, higher growth and profitability, that's what appreciates to the stock price and more value to shareholders despite whether we think wall street undervalues us now there's more to do as a business to drive and perform better which ultimately then results in greater shareholder value. >> one of the knocks against it has been from the wall street community has been the enormous amount you spend on sales and marketing cost so how are you thinking about that number and how are you justifying that based on the fact that the growth seems to be coming from existing customers and still growing the customer base, just not as fast as the marketing costs? >> yeah, yeah.

totally. i think we are seeing more efficiency continuing to scale so if you kind of look at the prior quarters or years numbers we drive greater and greater leverage in sales and marketing spend each year. so you're going to see more efficiency come owl of sales and marketing spend over time and ultimately we're focusing a lot of efforts on making sure that we can grow and expand the existing customer base and spend with box when we deliver the full portfolio of the solutions we tend to see a three to five x greater contract value from customers when we are delivering the full value of our platform so i think what you are going to see is we are really focused on targeting the existing customers as well as new logos on growing the average contract value via the sale of the add-on products and doing that we know that we get greater contract value, greater retention rates and efficiency as a business and ultimately flows into profitability and see that sales and marketing spend go down over time on a percentage of revenue

for further leverage in the business. >> do you have -- wish you weren't public and justify the sorts of things despite great top line growth? we had slack numbers last night. the ceo on "squawk box" this morning and going through a similar set of questions top line's performing well and giving you lots of heat about it. >> you know, i think it's totally fair to get that heat. as a public company we both deserve to be and expect to be scrutinized in running and scaling the business that's what we signed up for i don't regret going public at all. i think being a public company makes sure we have the operational capabilities, the right kind of account 7b89ability to the market and forces us to execute at our best and times we feel like there's more to do as a company and causes us to drive introspection in the business and make sure that we have the right strategy, right product and confident in right now and especially the

second half of the year that we have the right strategy, the right products, the right team to execute this. when we look at the new releases, box relay, the advanced work flow solution and box shield which is the advanced security capabilities, the demand for the products and the demand for the ability to have a cloud content platform that truly transform how an enterprise works is greater than ever before and so we're very excited about delivering on that demand and continuing to scale the business and very happy to be doing so as a public company. >> with starboard, what was the tone can you sum up the tone? supportive aggressive >> yeah. i think in general we tend to have a pretty clollaborative approach to investors. we have a variety of investors, some are more active in nature like starboard and some are obviously of a different type of dynamic and in general our approach is to make sure we're hearing investors, what are the

type of things they think we could be performing better on? what are the benchmarks in the market to be performing against and take that feedback and consider it very thoughtfully and taking a collaborative approach with starboard. >> where do you think the most growth will come from? what's your biggest differentiator >> yeah. so maybe i'll work backwards the biggest differentiator is three things atbox secure frictionless collaboration, in and outside of the enterprise and then with the applications and finding that combination of security, collaboration and platform we win every singletime going up against the competition and so our job is to make sure that we continue to bring the full value of our platform to every enterprise on the planet we have 95,000 customers today and everyone looking at the current spend from the customers we know there's a tremendous amount of upside as we deliver more and more of our add-on products and capabilities to the

existing customers and what we are incredibly focused on and see the growth being driven from over thecoming quarters and years. >> aaron, i just mention one thing to help your stock price is "closing bell" interviews, it is up 3% since the interview began. >> fantastic i didn't see that. thank you. >> yeah. you obviously struck the right tone maybe thin volume after hours but either way, up 3%. thank you for joining us. >> thank you. still ahead here on "closing bell," auto stocks outpacing the broader market on hopes of a trade deal with china. plus, kimberly-clark ceo says whether the company is feeling pain of the trade war d whether consumers could end up paying more for products. ♪

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here's what's happening that the hour the second most senior republican member of congress will not seek re-election in 2020 wisconsin's james sensenbrenner was first elected in 1978. but he is joining a growing list of gop house members who will step down when the terms end. >> i want to make sure that everybody knows it is not a health problem that's caused me to do that but i wented to retire on my own terms and since nobody's running against me, i can say that i'm retiring because i think that the time, frankly, has come to pass the torch to somebody else. ivanka trump meeting with female entrepreneurs in argentina as part of the five-day tour of south america for a white house initiative for the economic empowerment of the women. pope francis praising the two leaders of mozambique for signing a peace agreement. the pope was greeted by

thousands of people in the capital after a new peace deal was signed to end that country's 15-year civil war. you're up to date, guys. sara, back downtown to you. >> thank you. stocks staging a big rally today. phil, let's start with you. >> start with general motors taking a look at shares of gm, the chairman and ceo met with the president at the white house but that's not why the stock moved higher but out of the expectation that sales will improve in china if there's a trade deal because the chinese economy should improve, at least that's the expectation that's the reason that you saw the auto stocks moving higher today. ford, fie chrysler and tesla remember tesla's will have a growing presence in china. the auto parts suppliers, a different story. they're moving higher primarily because they get so many

components from second tier and third tier suppliers in china, the expectation of a trade deal means they should do better and why the supply stocks did better today. >> thank you for that. now apple leading a nice rally for tech stocks today. josh >> so, wilf, tech moves on trade headlines. today the sector in the green. one of the best performing in the sector today apple higher, too. up 10% in the last month all eyes of course on apple's big event next week expecting tim cook to take the stage and unveil three new iphones chips with a pop china, an important market for the semis and key part of the supply chains. back to you. >> josh, thank you. up next, the pulse of the consumer speaking exclusively with kimberly-clark's ceo michael hsu.

welcome back several big names moving after hours. check in on them lululemon higher after beating estimates thanks to strong same store sales. zoom video under pressure despite beating on if top and bottom line. docusign with a strong third quarter and full year guidance. consumer staples hovering at record high levels despite trading lower today.

kimberly-clark parent of huggies, kleenex up 22% so far this year. joining us for a cnbc exclusive interview to discuss the health of the consumer, his business and much more, michael hsu, ceo. welcome back. >> great to be with you. >> how do you see the stock performance? do you see it as a reflection of your turn around strategy or the general environment of staples right now? >> we are focused on delivering long-term shareholder value and our strategy to deliver balanced sustainable growth and just glad that the performance this year improved versus prior couple of years and off to a good start. >> where are you in terms of performance in sales, especially given the fact that your biggest rival procter & gamble ramped up the growth lately? >> we had a couple slower growth years and really stepped up to about 4% organic growth year to date this year and seeing good performance from our north

america business which is a big business for us but also really strong growth from our developing emerging markets up about 8% overall year to date. >> what is the single thing that is most responsible for fixing the u.s. diaper category >> well, it's a big, complex category, one of the biggest in the u.s. and so i think it's a fundamental thing delivering great performance, you know, for our consumers and great protection, comfort and fit for babies and i think that's been a key. the other difference is as you may recall a couple years ago the category had high degree of promotion and i think that really held the category back from the innovations that were ready to go and we are in a much more i would say productive environment for growth. >> talk about the american consumer a little bit more how's it feeling how much of your growth in the u.s. is tied to that if you saw a downturn, would you be able to shake it off? >> i think overall we feel good

about where the consumer market is and i think our sense is the u.s. consumer is very resilient and we did have to take some price increases this year as a result of significant commodity increases last year. but thus far the consumer seems to be bearing that well. our volume's in the face of some significant pricing is holding up very well. >> seems like more tail winds on that front commodity prices have come down. how much do you see that continuing to be a tail wind in costs coming down for the key categories >> we raised the outlook at the middle of the year partially on the moderation of commodity costs and seeing that better than expectations at the beginning of the year and the good news is that's given us the opportunity to reinvest in some of our brands and so we're feeling good about our innovation this year, the marketing is wokkirking well th year. >> on the pricing environment both in terms of consumer acceptance of higher prices and

also the big chain retailers, it was a reminder last week or so when some retailers or consumer goods companies were talking about the affect of tariffs and the big changes saying you cannot pass it along to the customer is that pressure a constant for you and does it restrain price >> in the consumer business, what you are always going to focus on is delivering great value for the consumer and so despite the fact that we did take some pricing this year, our strategy long term is what we call elevate core and make our products worth more to be worth paying more for so that's the underlying strategy. with regard to the tariffs, generally not that affected by it because we mostly produce in the local markets for local consumers. >> china was such a big growth story for kimberly-clark and not been lately. it is a drag can you ever return that market to the kind of glory days you used to see? >> great question. we are pleased that in the

second quarter the china business behind great work of the team returned to growth and we had a couple challenging years, mostly because of a very competitive pricing environment and what was happening is there was some interesting innovation from some local producers and in response it looked like the other manufacturers cut pricing over three years our team came back hard with really great innovation and really working really well for this year in the premium tiers. >> are you a u.s. brand and hurt you at all in the trade war? >> i asked the team that actually, you know, we produce all of our huggies in china in china. and i think our team believes that in a lot of ways the consumers know it's a u.s. brand and perceive in it a lot of ways local, as well. >> emerging market growth super strong which are the nations to stand out and surprise you versus sentiment? >> i think in the past i think chinacarried a lot of our growth striving for now is much more

balanced across the portfolios and we had double digit growth in asean we had double digit growth in latin america. pretty balanced this year. >> just quick question on amazon it is widely reported that you have been making amazon's mama bear diapers for years now is -- wouldn't that be a threat to your own brand and how do you view amazon and its sort of unique capacity to reach consumers and ramp up the growth for a company like yours that's depended for so many years on big box retail >> i won't comment on whether we make that diaper but we do make a select amount of private label for retailers and i would tell you private label is something we're well aware of and monitor closely. i think as a leading brand in the cbg space, what we have to focus on is building our brands and innovation to push the value

for consumers. >> michael, thank you for joining us thank you. >> thank you. still to come, jane wells gives us a close look at the fight between the beef and fake meat industries. jane >> reporter: hey, wilfred. this is the land of the crow indian reservation and this is cattle country here in southern montana. so you won't believe what i sa t cse town this morning. we will have that when "closing bell" comes back . to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

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aren't you loving this new taylor swift album so oh. so good. thank you. >> been on every break this hour meatless mania hitting the industry in a major way. jane wells is in montana with more hey, jane. >> reporter: hey, wilfred. guys, this is a middle of cattle country so look what i found this morning, an ad at the local burger king touting the impossible whopper what but the bigger concern for the industry may be what happens next out of the lab. lab-created meat, not a plant

substitute >> that's a good question and there's potential for that there's no doubt that poses a potential threat. >> we need to have a transparent and open discussion on how these products are made. >> reporter: yeah. that lab meat is really something but also the beef industry is regulated by the usda the plant-based rival bis the fda. the ranchers say if you can't eat an impossible burger raw and you have to keep it refrigerated like meat, it should be regulated by the usda. there are 10,000 inspectors for the usda they said they did 171 food related inspections. guys >> jane, clearly burger king is hiring but back to the -- is there anger towards the idea of fake

meat there or not? >> reporter: i think there's sort of like why would you want to eat that? they used to laugh at tofurkey it's a tiny market and not laughing at them they see the momentum and they think it's false claims of resources used or how healthy it is and they want to get in front of it but the big thing is the lab-based meat if it's cellular, meat, you don't need animals, will people eat that will it be economical at some point in that's the threat they're watching. >> jane wells, thank you very much beautiful shot down at the ranch. the ranchers. >> that's how i said it. >> pronounced correctly. an upcoming recession? y t wa bthca looking yacht this manoalyse e se that's why we built a portal into the future. good luck brad! and brad's in the future.

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alrighty. servicenow. works for you. should always be working harder.oney that's why, your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. let's go back to mike santoli. is this a lululemon dashboard? >> yes, very few products are elastics the economy actually does to the price of crude oil we were talking in the executive session about how every recession of the u.s. proceeded

by crude oil prices. it is a contributing factor maybe putting it over the edge 1980s. this is not a really huge dramatic run except when you got over the first gulf war. this is the late '90s. it did have a strong up trend there right before that recession. and mid 2000s. $150,000 crude oil we have range bound crude oil. we are not close to that level a couple of years ago. it seems as if oil is neither a threat at these levels or a reason for the economy to accelerate if you are looking for those inputs or precursors this one is not operating >> there you go. lululemon. >> i was covering lululemon. >> it was on my mind >> mike, thank you still to come, a dfentifre take

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jack dorsey had his account hacked last week

julia boorstin has more for us >> hacker's ability to occasionally get a phone number switch to their similar card twitter blame jack dorsey on a security oversight by the mobile provider that's why twitter is working on two factor authentication and new ways to autokahenticate use without using phone numbers. they give consumers to protect themselves like using pins and passwords. one for sure, hackers are going to get innovative and we'll see more finger pointing of who's responsible. >> john wall ulia, thank you. >> the market does not seem to mind up next, the countdown to jobs is on. we'll tell you what everybody needs to watch

welcome back, a big rally today on wall street let's have a look at the key things to watch tomorrow the jobs report is on that list. ylan mui

jobs growth is at 150,000 for august slightly down from 164,000 in july unemployment rate expected to remained unchanged at 3.7% the second to watch, the drop off of hiring compares to 22,000 last year. finally pay attention to our work back over to you guys. >> ylan. thank you. the nfl will take the spotlight tonight when the packers take on the bears. it begins tonight, 7:30 p.m. on eastern nbc. i don't know which one i am excited for. >> because they can't lose >> season opener >> seriously, what's the best case for the market? best case scenario

>> actually i think the market is geared, they don't want a soft number. anything that causes bond yield is not that friendly considering we have a 5% move on yield drive. >> we are out of time. thank you very much for watching >> "fast money" begins right now. >> live from the nasdaq, new york city, times square. this is "future cast money," i am melissa lee trade tension is lighting up fire stocks at their highest levels in a month we'll break down the rally we are keeping an eye on shares of lululemon it is coming off after a highs after a conference call gets underway 32 reasons why central banks around the world are kung-fu for --