we have 17 seconds in the program, ladies and gentlemen. >> we do >> look at the dow it is back climbing toward session highs. who knows really why it just is maybe it's the rain. >> yep >> probably. this is a session, thanks for watching "power lunch. "closing bell" starts right now. and welcome to the "closing bell" i'm courtney reagan in today for sara eisen on the floor of the new york stock exchange, johnson & johnson closed largely 2%. with stock recover something of the big losses earlier in the week now just one day away from a major meeting on trade we're going to cover that coming up on "closing bell. and i'm wilfred frost, good afternoon to you china reportedly said they would consider a partial deal. the minutes from the fed's last meeting showing division on how to frame future policy, and on

line with policy decisions with market expectations. and tech leading the charge with apple high on the back of bullish markets that are higher. s&p up 1.2%. dow is up 232 points near the session highs joining us, mark tenler. mark, trade was the mover as it was yesterday. >> more of it, day after day, the thing that continues to drive the market is the most recent news about trade. so, yesterday, there was less optimism about there potentially being a deal the market sells off today, there's less optimism, so the market rebounds but nevertheless, we're stuck in this trading range of 28.25, and 30.25, right and i think it's very unlikely that we break out of that range unless and until we actually get a trade deal and i think the likelihood of us getting a broad deal is

unlikely i just don't think that's going to happen. it all depends what that narrow deal looks like. or the october tariffs removed if they're removed for good, that's bullish forponed all that great. let's focus on the big stories, and khalayla tachie is following rye. bob, we'll start with you. >> highs out there, not a lot of new one. target, one of the retailers great this year, ross stores, walmart, and very good group of stocks up, a new high for target oil is up, in the energy names like marathon, occidental, in the industrials, fedex, and the

metals and the new low list a lot in the last several weeks. the tale of two stories if you're in the apartment business you're doing great new highs on member sx and all a part of the company's new highs. but if you're in the shopping center business, the opposite, new lows in signing property groups and mason one of the biggest shopper develops in the u.s. not all reits acting the same way. >> thank you very much, bob. china gearing up for talking, kayla tachie has the latest >> ambassadors are expected to brief robert lighthizer. lighthizer in turn is expected to talk to president trump on high-level meetings tomorrow and friday and once to yields another truce but escalated by escalation on a

number of fronts by both sides the variable on this time around is the same, and that is how president trump chooses to respond. wilf and courtney. >> doll we fe we feel that the president's team is starting to fashion towards a partial deal did lighthizer like a partial deal >> well, i don't think at any point in this process have all advisers been on the same page with regard to what the best course of action is. to that point, you even this week had advisers coming out with different messages. on one hand you had larry ludlow saying if china closes the marketing caps then we may be able to put to rest the issues and then peter navarro saying, no, clearly deal or no deal. they're trying to see what it will take to get this agreement. now, the fed is putting out its september minutes, just did

so last hour highlighting a growing divide about how to frame fed policy in line with market expectations. we've spoken with three fed officials here on cnbc since the last rate cut and asked all of them what they plan to do at the next meeting. >> i don't have to say today, in fact, i won't say today, because i think it's really important that we really look at the incoming information that we're going to get as we work up to the end of the month meeting so, i think this is a particularly important environment, where you're very attune to what is incoming economic and financial information telling you. >> i still have an open mind and more data until the meeting actually occurs. i don't think i should prejudge it at this point we've already had two easings, easings don't have impact immediately. >> i'd go to the end of the year, i'd like to reserve judgment i don't like the prejudgment meetings we'll see how data come in if you guys are right and i

should be more optimistic, i'll certainly take that on board >> let's bring in chief economist at jpmorgan. thanks for joining us. >> thank you >> let's start with the minutes, what were your key takeaways and did it alter your expectation for future policy? >> well, i guess the key takeaway was, as you said, there was a lot of division as to the appropriate course of policy, at least at the time of the meeting in september however, that shouldn't be too much of a surprise you may recall after the september meeting, we got the dots which showed all of the forecasts and showed a lot of division in terms of where they see policy going this year in that sense, the minutes aren't all that -- they added a little color, but i don't think they changed the narrative all that much. i think we also have to remember, some people matter more than others, right? yesterday, we heard from chair powell who obviously matters the most and he was talking an onside risk from global growth and that they would act if

appropriate to head off those risks. so that to me sounded like he was content with the market placing and a cut at the end of the month which it is. so it didn't sound like he was really pushing back against that i think among all of the votes that counts, his counts more and i think that's where the committee is going in terms of minutes, i don't think they changed the story relative to what we knew at 1:59 >> we talked to pour ed ted to e bills. he said it's not qe. >> well, it's qe4, except what they've already done i think it's already on a limited scale. nonetheless, it looks like the fed is definitely cueing and there's a 50%-ish probability of a second cut before the end of the year i think that's likely as well. so, i think the fed has just

committed and they continue to communicate the fact that they are ready to step in and make sure that the economy continues in this expansion mode, especially given the fact that a lot of this economic state da has been deteriorating these ism numbers were not good, right? >> mike, do you think it was as much as qe or something less significant? >> no, i definitely don't think it was qe. qe is buying longer term bonds to push down longer term interest rates if they're buying treasury bills that won't affect longer term interest rates from 2007, when the balance sheet normally expanded to meet the public's demand for liquidity whether reserves or currency so i definitely don't think this is qe. >> what about the fact we did hear specific mention from powell about the yield curve, i think more so than before about possibly being rejected or

resteepen it >> well, they've talked about the yield curve as a signal of pending recession. we saw that in the minutes obviously, there are factors conflating the signal there a little bit a big part of that is global interest rates and negative interest rates around the world which is leading to flight the capital into the u.s i think the debate is still open i guess we kind of split the difference we do think the curve is signaling slower growth. but we don't necessarily think it's signaling recession now >> mike, powell kept saying the fed will act as appropriate. is that enough does he need to be a little more transparent to give us future guidance >> well, i mean, the decision hasn't been made it's a committee decision, there's more data to come over the next three weeks but i think right now, the wording and the body language is consistent with the wording that useful seen ever since the midsummer where they pivoted in a way that signaled further easing i don't think this is a game of

code words but right now the language sounds like it's incumbent on the data, to the upside for them not to ease by the end of the month, in my opinion. >> i'm impressed that you read this body language as well that's a tough skill my question, michael, in terms of the data over the last week or two, do you think it's gotten meaningfully worse or not? >> i don't think it's meaningfully worse it's been slowing over the course of the year third quarter gdp coming in at 1.5% and private payrolls running around 120,000 per month all of that is quite slow than it was from the beginning of the year and last year it's not falling off a cliff, but it is slowing. and i think you saw that today in the job numbers that are edging lower it's not a free fall by any stretch of the imagination, but an economy that's slowing. >> michael, great to see you

after the break, is wall street turning bearish on fedex? we'll break down the sentimentship next and later, we'll speak with one analyst who just slashed his estimates on netflix by 20%. and as we head to the break, here's a data tracker. missing estimates 0.4% rise and the jolts read from 7.05 million in august to $7.2 million. we'll right back with "closing bell." make fitness routine with pure protein.

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we've got about 46 minutes let to go in trading the dow is higher, almost at session highs, by 240 points at this point let's check on individual market movers lionsgate reportedly considering slitting off stars through a separate company or other vehicle that stock is higher by 4%

and shares of irobot are falling after raymond james downgrades that stock from underperformed to performed and pricing that's pressuring its stock, you can see down by more than 3.6% we have 45 minutes left to trade. let's get to mike for today's market dashboard hi, mike >> hi, wilf. here's what we've got, freightened questions. that's what wall street is asking about fedex and rock & roll band and we'll take a focus on that and then, dull, with style that seems to be boring stocks still in fashion on wall street. we'll measure that and then a mild jolt, a look at the new job indicator we got today. freighted questions, somebody who is trying to push the bull case and kind of threw a towel

on it at bernstein you can see distribution has gone radically from very, very bullish on a consensus basis a year ago to pretty much being 50/50 a high performing stock from years. just a little over half, half of economists recommending it and the targets, slashed that's not telling you that wall street sees a whole lot. on a contrarian basis, that's pretty good. you have to get a runout, if the stock is going to struggle, it's going to bottom. and also when you look at long-term, this is a ten-year trend in fedex it's now below 11. this is basically long-term downtrend. that's when earnings were basically zero the problem is forward estimates keep coming down, too. you can see relative to the s&p 500, trading roughly half the market at some point the market is going to feel like this is getting done over negativity

then again, i said that before the last earnings report and those forward earnings got rolled down. and all of a sudden it looked like a value track, not a value ride >> and in the former rivals? >> fedex is bearing the brunt. fedex, just its leverage to air freight, much more of a global story as compared to domestic. that's why fedex has struggled, of course, the breaking of the relationship with amazon >> mike, thanks. what's the take on these guys, are they linked to the trade news >> yeah, it's really tough to get excited about fedex and/or it when you throw in competition from amazon doing their own logistics. these are companies i would say right now would not be on my buy list, anywhere near it

>> mike showed us that longer term chart on fedex. it's kind of gone against the trade. >> yeah, it has. but at the same point in time, there's been all of this talk about increased competition, you know, fedex -- so, the u.s. economy has been strong, right but globally, we've seen weakness now for several years and fedex has high exposure to the global economy, not just the u.s. economy >> right and after the break, wall street weighs in on media. we'll round up new analysts' calls on disney, net tix and roku and later, consumer bullets. the tests of tesla's smart feature that says you can be driven around automatically. we'll discuss that, next will it feel like the wheend of a journey?p working, or the beginning of something even better?

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welcome back on "closing bell," today, we're featuring media calls. jpmorgan cutting its earnings outlooks on disney for platform and choppy integration of fox assets 95 cents, compared to previous estimates of $1.05 outraising it from 1.30 to

110. it could go from user base of $31 million to $72 million and rosenblatt slashing its price target on netflix from $320 a share to $264 on prediction on apple and disney, as well as forecasting a q4 miss. and isi had its target earlier this week. for more on netflix, let's bring in the analyst behind rosenblatt's note. bernie, thanks for joining us here the stakes are going to get higher do you think they're going to whiff? >> exactly thanks we're on the treat for 4q, 10% below the street consensus is 7%. >> so how much have you reduced your actual revenue estimates or earnings estimates, compared to the price target

is there a multiple? >> exactly long-term free cash list came down 5% on higher cash content we think increased competition will drive you to spend more on content, 15% on the multiples. right now on price target, 4.5 times 2020-1 revenue >> how you have assessing it >> it's going to be competition. disney with november 12th launching of it. a huge amount of pressure. they've never faced this competition before subscriber ads is going to be down it's a big year for 2020 >> it's kind of big. no change in the actual price, 265. neutral is where you want. you should have cut the price tag earlier? >> rightly so, probably could have

the majority of our competitors, 70% of the street is buy owe the minority of us are >> as the quarter that we've got ahead of us, talk to us what you expect on the subscriber numbers, and if they were to miss expectations how they are >> yeah. the guidance 7 million subscribers globally added and really comes down to the content. the content slates a lot better in the 3q, than 2q. you sh"orange is the new black" and then the politician was late in the corner. and rotten tomato had a bullish outlook from there >> mark, what do you make of the media space, are you interested in buying netflix here >> i prefer disney right here. i think the valuation is more

attractive there's more upside. they've got a huge major catalyst in front of them with the rollout of disney plus i agree can they have fantastic content, but what i'm wondering is is it bingable content? is it addictive content? yeah, when my daughters were young, they probably watched "frozen" 20 times, they watched it a lot but are they going to draw viewers back again. i'm looking forward to the "breaking bad" movie coming out and that's great for netflix but when you look at it when it comes to the different companies, i don't think netflix is going to get themultiple that it has in the past due to increased competition. but it's going to be a winner take all market. i think there's room for severals there >> does disney really need bingable content to be a winner? from a stock perspective, there's so much there? >> they don't.

plus, they have hulu they're majority owners of hulu. and something that doesn't get talked about a lot when we're talking about the streaming wars is, the people that are going to lose are going to be the cable providers, right consumer still wants live tv and you can get that through hulu live tv you can get that through youtube live tv. so, there's still an opportunity there outside of streaming original content >> quick >> i was going to say because of the broadband, i think what you need to be bearish on, if streaming competitions comes that drives more core. that's media companies with the rating on fox. >> great to see you. thanks for joining us. >> thank you very much we've got 34 minutes left of trade. we're high to the tune of 240 points on the dow. we're almost at session highs. coming up, we've got "last chance trade" on the video game space. and up next "the hunt for yield.

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just about 30 minutes exactly left to go before that closing bell sounds. three things drivie ingdriving signs of optimism. and the fed with future policy on a debate how to align policy decisions with market expectations and tech leading the charge. apple is higher on the bullish call we'll have more on that call ahead. time for a cnbc update with sue herera >> hello, wilf here's what's happening at this hour the turkish military offense into syria continued into the night. video from the border showed heavy shelling

kurdish-led forces in syria said the fighting has killed three soldiers and five civilians. that is not confirmed by nbc news german officials are looking at two suspects believed to be behind an attack at a synagogue. on yom kippur, the holiest days and live streamed by the gunman. and more than 2 million c n californiaens in the dark. pacific gas and electric took the steps after a storm predicted wind gusts up to 45 miles per hour in the coming days police are looking for the person who they say rammed a stolen pickup truck in an attempt to steal an atm inside

courtney, back to you. let's send it back to rick santelli he's ready with the second dashboard. >> calling this rock & roll. look at how this has come into a title band here. with the s&p 500 itself, here's the 40 price earnings multiple of the s&p 500 basically, this is the pe based on expected earnings what's interesting between 16 and 17 is where it has spent the vast majority of the last five years. a line, capping it at 17, underneath is 16 this really is not a surge above that valuation band. when you consider we had not yet had the tax cuts priced into estimates so in reality, the market was essentially handicapping a rise in earnings. so, we've sort of toggled between these here and you've seen the periods where we've flattened orlando in

the market to where we get to 17 times. what you'll also see, okay, if we're caught here, okay, we get to that 17 level or something like that, it will probably take earnings growth to accelerate that index trend above these levels that's probably what people are hopefully waiting for. i would point out with much greater bond yield some would argument 17 times is not as valued as a few years ago perhaps when yields were higher. that's kind of a semantic argument >> starting there, mike, how much the valuation dropped last year in terms of the earnings growth, what are we expecting year over year, for next year, because, of course, the market it rise on that >> without a doubt 2020, i think the estimates are still showing close to 10% for that year. if you blended on it, it probably looks mid to single digits the trick is figuring out if the

actual market is priced for that growth or if in fact the market expects those estimates to come down a little bit that to me is really the front on which we're battling out between bulls and bears right now. >> mike, thanks so much. yields falling sharply over the past three months. joining us for other opportunities for yielding concerns managerer of black hawk fund tony, thank you for being with us let's start with mike's analysis of where the s&p 500 valuation is at the moment >> yes i think this has been a rising market but it's been climbing a wall i do think that stocks are the best game in town. look at the treasury a year ago, that was at 10%. today, it's 1.6% we're in a market right now where you can actually get more income with stocks than bonds and that's very unique >> which particular groups are you looking at

>> well, in our fund, we emphasizecome opposed to that. and reits are trading at all-time multiples i think there are risks there. i think you're better off focusing on stocks that can grow that income over time. >> what stands out to you? >> what stands is insurance brokers. companies need insurance regardless of the economy. even in a recession, companies buy insurance. it's a good business it's a capital-light business unlike the company itself which requires a heavy balance sheet >> let's talk about hmos i think the risk of medicare for all is wildly overdone if you look at the polls in depth, people like their insurance, they just want to pay less for it, but they don't want to give up their insurance coverage in fact, if you look at the medicare business, there's

actually two pieces. when you sign up for medicare, you can get coverage from the government in the fee per service or private hmo increasi increasingly, seniors are opting for that private hmo 30% are in medicare advantage, it's called. >> mark, where do you stand in terms of high-yielding stocks, what are your core picks? >> we like managing general stocks in general. for preretiree and retiree clients. not only, the dividend ahristo c ahristo cats have outperformed broadcom and there's companies out there, just as we talked about with regards to growth, growth is just as important as the dividends. not necessarily the level of the dividend, but the fact that they can continue to increase that

dividend year after year >> tony, of course, i get the argument, that yielding stocks looks attractive relative to where bond yields are. as to the question of whether they're still attractive in absolute sense, do you get worried that we see them broadly sell off >> i do think we're towards the late earnings of the cycle, but i don't think we're at the end of the cycle at this time in the cycle, it's really important that you like what you own and that you be prudent in the way you're inv t investing. look at the market multiple, it's not out of bounds, it's right in the range >> what about the banks? they're kind of properly in the middle of crosshairs, isn't that they look cheap? >> sure, i like to think of things in the stable bucket and economically safe bucket they have more capital

that capital provides a cushion and downturn yet, they're trading at extremely low multiples will 10 time, 11 times current earnings. i think that's the best value in that cyclical bucket >> tony, thank you for joining us here. >> thank you here we have just about 23 minutes left to go before that closing bell sounds. let's take a look where we are, with the dow at 252 points keep climbing up to the highs of the session. up next, we've got your last chance trade plus, apple with all-time high levels with boosting the market to turn $60 a share we'll break down that call coming up. as we go to break, here's a check of halliburton cutting 250 jobs with the weak prices. we'll be right back. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade,

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bell mark, what is your last chance >> we're going with the gaming company activision, it got its team knocked in last year. their call of duty was pretty much a flop. stock was trading down to 80 and came up to 40. suddenly, the chart is better back up to 52 bucks. the reason we like them, they're a leader in e-sports viewership of e-sports up 30% year over year and there's actually expected to be more e-sport viewers by 2020 in every sport except the nfl. they just rolled out call of duty mobile. and they're roll out call of duty warfare by the end of the month. so they've got a lot of catalysts in front of them that continue to take the stock back to where it was a year ago >> and they're not getting involved in the hong kong protests >> yeah, they are, the stock shrugged that off.

they took back the prize money, i guess. i think they banned them for a year >> expressed support for what's going on >> right i guess they need to figure out the balance between making money and making the political statement. the stock, i think, initially, pulled back after that news and then it kind of shrugged it off. so, i don't know how much of an impact that's going to have on the stock. we're just more focused on the positive catalyst that are going to drive dollars down. we've got 17 minutes left. here's where we stand, we're up 250 points on the dow. 1.2% on the s&p 500. up next, we're taking you inside the market zone where we will bring you uninterrupted coverage of trade. "closing bell" back after this ♪

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♪ we have just about 13 minutes left in this trading day in the middle of the week here and we're now in the closing bell market zone this is commercial-free coverage of all of the action going into the close. >> cnbc's commentator mark santelli is here to break it down today, we've got mark tepper here as well markets took a little bit of a late blow. we had been up to 250 points just a little slippage there are reuters reports lowering expectations. trade talks between u.s. and china. we'll have more on that when we have it any minute now let's kick things off with apple, the stock getting a boost

africanaccord raised and apple facing backlash over an app which tracks activity to hong kong. apple had reversed its decision on its apple store on saturday mike, it's based on survey for the iphone it's not groundbreaking hard data the price increase is quite small. i think just getting a boost because of the tech performing on the trade hoax a few minutes ago. >> yeah. it's obviously got momentum. the stock is grinding up towards this old high. the iphone is still benefitting from relatively low expectations coming into this generation. and also investors with the whole cycle no longer has the drama around it. it's much more of a steady flow as opposed to wondering if it's

going to get a hit the stock is a little low. >> mark, where are you on apple? seems like we've been getting a lot of positive comments about the iphone 11? >> yeah, we own it one of the interesting things about apple, this quarter was the last quarter forever where iphone sales were less than 50% of their revenues. i think it was 48% you now have wearables and surfaces creeping up to 32%. so, there's definitely this transformation happening within apple. it's positive, i don't know i'd rush out to buy a new phone because it has a third camera. if they made this smaller, that's what i'd rush out for i've got to get something that fits in my pocket better >> it's like back to the old but anyway, apple doing well slipping like the rest of the market in the last five minutes. that's because of breaking trade headlines, kayla tausche has that rusters is reporting that

china is lowering expectations for progress on negotiations on friday with the united states this week. that is because these officials say goodwill has been damaged from the commerce department's blacklisting of 28 chinese security and technology companies that commerce alleges is involved in the detention of muslim minorities in kleiy s iia we had heard various and sometimes conflicting reports about the impact of that blacklisting on these talks. there are reports that the vice premier of china is willing to do a partial deal with u.s. even if he was miffed by the timing of this policy deal by the commerce department but now reuters reporting according to chinese officials briefed on talks that beijing has lowered expectation for progress wilf and courtney. >> kayla, this sounds slightly ridiculous in terms of the conflicting information that's come out remind us when we may have the

actual meetings and might have something solid from them. >> depends on how well or poorly they go. set for tomorrow morning, as for now, the expectation is that talks will go through thursday into friday. in 13 rounds of talks, we've seen it all. we've seen the talks break early when the two sides get frustrated and they feel like there's nothing to be talked about. we've seen the talks get called off before they even begin and in some cases we have seen the talks result in the oval office when president trump wants pressability, he wants a photo op with himself and the vice premier, we just don't which one this is yet. >> kayla, thanks very much initial drop down to 190 points. seems to have found a flop >> yeah, everyone right now, it's an excuse to take the foot off the gas sand defend the brake. it's alley about tactical trading because you think somebody else might trade on the

same news but within a range so nothing is breaking us out of the range. we're trading points back and forth, yesterday, at 3:00 p.m. eastern time, before we got that rush out we're at 29.22 on the s&p. 2921 right now we dropped and came back turning now to pharma, johnson & johnson is getting hit after being ordered to pay $88 billion. >> johnson & johnson is no stranger to headlines, they've been focusing on the talc powder and opioid business. this came as a surprise. a philadelphia jury awarded a plaintiff $8 billion in the fact that they downplayed the risk that risperdal

it is a reminder for investors in legal events and j & j has a number coming up another trial set to begin in philly in december and ongoing trial in new jersey concerning talc powder and ovarian cancer and more than 2,000 lawsuits, guys, back on the table. back to you. >> i was going to say, this is far from the last time we'll hear from a pharmaceutical company embroiled in a court battle what does this mean with $8 billion embroiled in court battles? >> yeah, such award is evidence of the distrust in the pharmaceutical industry. $8 billion is out of step with what happened here and huge for the compensatory damages they called this an existential crisis moment for the drug industry, considering it's such

a huge punching bag. >> meg, thanks so much shares of fedex dropping to lows not seen since march 2016 arthur bernstein downgraded it frank. >> rallying ..75% from bernstei. and the bull has been shredded and the seg that vernon said will swamp the market. a potential deal with china could benefit fedex. it's had issues over the mishandling of huawei packages u.s. shipping 2% of revenues but the company has a key regional hub there. >> thank you very much, frank. we've got a little over five minutes to go before the closing bell sounds. leav

levi sales lower many analysts agree, levi is taking the right step for longer term branding but they still see pressure in the near term. and for the traffic and legacy department stores and chain stores, shares of levi down by 7% meanwhile, conglomerate lvmm sees a strong growth hong kong makes up between 5% and 10% of total sales around 6% for lvmh specifically. those shares up by 1.7%. that company just seems to keep grinding higher and higher, mike >> i was going to say that's coming off a really good run >> it is >> it's really bucking the trend. i think there's others in the luxury segment that's been softer i don't know if it's the portfolio brands or the

exclusion. >> mark, do you think we can make better draws from the lvmh results? >> wow, i don't think so i think what we're looking at consumer buying preferences have shifted. i think we're looking at a consumer who is much more price conscious said than he or she was a few years ago. look, that performance has been phenomenal but we're seeing great results from people like t.j. maxx, right, the off-price retailers where all of those levi jeans that weren't sold by kohl's or macy's, that's where they end up >> mike, all of the sectors are still high at the moment >> yeah, i think we're really just kind of recouping what was lost yesterday in that late air pocket we did consider this blizzard of headlines about the visa restrictions u.s./china seemed like they were taking a hostile posture i think we're kind of brought

back into a neutral stance as to how the talks might pan out. >> as for the internals underneath, you're having a look at that? >> yeah, net positive. volume is a little light if you look at new highs, new lows, not take lerparticularly pronounced a loof new lows when the stock market is up 1% of the s&p look at the vix index, the volatility index it did pick up around 2:00 p.m. when we did get the fed minutes. not sure why there's spenuspens around the fed minutes we have the trade talks ongoing. >> like yesterday, we're pulling back from the highs right as we move into the closing bell we do have two minutes to go let's send it over to rick santelli, he's got a check on the bond market. hi, rick >> hi, if you look at two-year note yields you'll see obviously up but it is giving a little

back on the recent headlines regarding the chinese delegation and the length of negotiation, if you look at one week of 10s, we will close one week high in 10s. we're giving it up on two-years. everything is down a basis point since that said lions. vix, we like to watch the vix. a ten-year vix, lowest levels in one month. bertha, we seem to be leading with the nasdaq over 1% today. >> we do, a lot of that is tech-driven, and particularly chip-driven. we've got the good news on apple in terms of the an lialysts taradon, one of the standout, on a 52-week high it's about flat for the week the sector overall down 1% roku is another standout the stock seeing its best daily gain in two years and an upgrade in macquaire in streaming wars

and certainly helps to have a platform meantime, american airlines, with earnings look to be better than expected, notwithstanding the issues with the 737 max which it hopes to bring back into circulation in early january. nonetheless, the stock has a loser for much of the year over to bob. >> and, bertha, we were at the highs for the day just 15 minutes ago. we're off of those highs on that reuters headline beijing lowering expectation for u.s./china it's not clear, with the s&p 500, came off the high remember, earlier in the day, there was talk they're going to offer an agricultural deal in change for tariffs not sure if that's the expectation. you've seen a move to the downside but we've stabilized, predictively, all of the names moved down a little.

cart caterpillar moved down and they're very predictable moves on any kind of trade talks. not bad, considering that headline dow jones industrial average closed for the day up 166 points, s&p 500 up 25 points it was peggeds around that 1% move with a little bit of flutter right around there ♪ welcome to the "closing bell," everyone. i'm wilfred frost. >> and i'm courtney reagan in for sara eisen, along with mike santelli and we are in the market zone, you can see the action on the right side of your screen with the totals coming up on the bottom of your screen. >> as bob said, not bad at all given the worst headline at the end of the day the net news is more positive.

finishing 0.9% on the s&p. a little more for nasdaq led by tech, 1.45. >> joining us now to talk about the market day, we have mark tepper from strategic world partners still with us also joining us from merrill lynch bank mike, i've got to say it worked, didn't it? >> it worked the rule is you have to buy tomorrow morning, if you're observing yom kippur, you cannot observe the close today. yes, down 3% so, that has worked. and i do think it tells you the anxiety back and forth within this trading range yesterday, s&p down 45 points. most of it in the last hour. today, we got 26 of it back. where do we end up exactly where we closed six days ago. so, it's not saying nothing is going on

what's going on, the market's kind of hanging in there and waiting and staying supported by low yields and a 2% economy hoping there's some catalyst needs from trade or swing in the macro that gets it moving one way or the other >> chris, what vhave you focused on >> investors have really hit the pause button across all levels across the board the pause button has been clearly hit. the key is the market's been hanging in there with this movement it tried for a fourth wave of rotation from ultra defensive to cyclicals and it didn't really get that big pushoff in the wave. then things relaxed itself but the four main areas we continue to watch. it's just like electricity in the household. you've got to look at the meter. the meter is this, monetary policy check the box, it got more assertive. the market tried to applaud it but if we talk about balance sheet expansion literally a few

weeks ago or months ago, the market has taken that and ran with it. it's kind of hanging in there. e, earnings, e, election risk and the last one recessionary concerns all of those things within the meter is what most of the clients are paying attention to >> mark, isn't that possible, we keep talking about some kind of trade resolution, whether we get a deal dor don, or don't get a . but we're in this grail area >> if you think about it, do the chinese have an incentive. i believe that they don't have a huge incentive to get a deal done right now if there is no deal, i think we say range-bound. we continue to balance between 28, 25, and 3025 we do need some sort of a deal in order for us to break through. one thing to keep in mind, october is when seasonality is

on our side again. if you go back to 1950, roughly 40% of returns on the s&p 500 happened in the fourth quarter, it is something to look forward to >> although it wasn't last year. let's stick with us, let's find out the latest on trade our kayla tausche has more >> reuters, chinese officials have rocked the market and moved this story forward as we're awaiting any glimmers of what the u.s. side is discussing behind closed doors. all of the leaks that have happened in the last day have come from the chinese side, a sort of telegraphing exactly how they feel and how they feel going into high-level negotiations for the next two days now reuters is reporting that beijing is lowering its expectations for negotiations this week to broker any sort of agreement, truce, deal and that is because these chinese officials feel that goodwill was damaged by the u.s. department of commerce's blacklisting of 28 chinese and

surveillance companies and technology companies that it says surveilled china's muslim minority populations many of whom are now detained in northwest china. where is this reporting that this ruined the goodwill between the two sides here and as such, they're dialing back their expectations but we learned this morning in another report, the chinese vice premier is still committed to pushing a partial deal even though he's frustrated by the timing of these tech sanctions i was just texting with a person close to these talks say the tech talks are a real issue. it's unclear the extent to which that issue will play out in the talks and how much of a potential deal breaker it really is for the chinese side. >> kayla, thank you very much for that chris, what's your latest take on whether or not this is a major decision -- a major factor in your decisionmaker for sector

allocation >> i think you have to look at two things from an economic perspective, it's pretty clear that the damage is more harmful to outside economies, particularly the china economy. and i'm argue the german economy. however, the economic impact in terms of confidence for the u.s. it's slowly starting to gather momentum to the downside we hear a lot about negotiations we hear a lot about other things but the most important part we cannot have happen is the poor weak activity in the industrial sector slip into the consumer sector from our perspective, trade, and you look at the companies that have done well when there's been good trade announcements, we seed to see that relax to the upside a little bit to make sure the slide in confidence doesn't continue and allow sentiment to improve. >> mark, that is a good point we talked about the divergence in the economy between business and consumer how long can the consumer continue to hold this up >> the consumer is 70% of the economy. so, we can make it for quite

some time. but we have seen, even consumer data has started to peel back a little bit consumer confidence has come back a little bit. it's still high overall, consumer sentiment i don't know how much longer the consumer can drive us. i really feel for this economic expansion to continue, we need to start getting some cap and stuff like that. it's been leading us for almost 11 years >> it's going to be a crazy holiday season it always seems like it is, but this year, let's get back to bob on the winner's circle >> high, we are up the market is light. of course, we had a holiday, keep an eye on that. in terms of highs, some retail stocks continue to do well another new high for target. small group of retailers doing great, ross stores, walmart, tjx. they're the exception. and it's a great time to be an

apartme owner. all of the apartment reits are doing well avalon bay is another one. that's a new high many essex, midamerica apartments, all 52-week highs. finally, we're essentially going nowhere this year. we pointed this out earlier, my friend paula spoke as interesting facts we're at 2% above and below the levels on the s&p, one month ago, three months ago and three months ago. that's that red line, essentially, we're back to where we were. back to you. >> the other interesting thing how yields subtract. if you're not seeing yields rise, you're probably not going to see equity. >> yeah, that's been the pattern. even note rise has been modest they're sticking below their lows i think you can look at that

ten-year, say okay, refused to go back to last week's lows so we can call that a little bit of a buffer between where we are right now and that zone where we're really in a recession panic. i think that's at least a cushion. >> thank you, mark tepper for being here, and chris hyzy, thank you as well. boeing is delaying the return of its 737 max planes until january. we'll break that down and what it means for consumers when "closing bell" comes back. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information.

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welcome back american airlines, one of the best performers on news of low fuel costs helped margins in the third quarter. but the stock has been underperforming its peers lately and pressure is mounting on the ceo doug parker. joining us to discuss is leslie josephs. leslie, good to see you. let's talk more headlines on the delays on the boeing 737 max the latest updates, were they much less than expected or broadly in line? >> well, we don't have the a sense when this is going to be back in the air. boeing says sometime in the fourth quarter we don't have any signedoff from the faa or global regulate letters. what american will do like united is delay it and delay it again. and now we're getting into january where american expects max to be back in service.

>> what are the specifics? >> well, it's a small part of its fleet. 24 of them were maxes at the time of the grounding. they have 76 more on order this is a very fuel efficient plane. so american can't grow as it wants to because the planes are on the ground. it needs to reassign planes, cancel about 140 flights a day that's nod got good news for thm >> industrywide, is the grounding serving capacity, in other words, is it filtering into pricing or having any effects on the airlines? >> it depends which airline it is delta doesn't have the max in its fleet and it's been able to pick up some of those passengers so that's a good thing for delta. the thing is when the max comes back, it's a great thing for boeing, that's going to add a lot of capacity back into the market and it's coming at a low point for travel

travel hit a peak in the summer. you're going to have a lot of pricing pressure when the max comes back >> thank you, leslie, for joining us and continuing to follow the story for more on the airlines, let's bring in the managing director and airlines analyst at raymond james. thank you for joining us you heard leslie giving the update saying it's not perhaps as big of a deal for american and delta. what about the rest of the airlines that you've covered as the plane continues to be delayed into its reintroduction? >> actually, i think it has been a notable impact for american. obviously, the biggest impact has been on southwest which has the largest max fleet. if you look at the u.s. as a whole, max was supposed to be about a point and a half in the summer by the winter, at 4% capacity so you are getting impacted. and clearly, the ones that have seen a negative impact have been southwest, american and united who are supposed to have those

aircrafts. and the beneficiaries have been delta and jetblue able to pick up some of that capacity and the industry, in general, saw a benefit from higher prices especially during the summer >> when are you expecting the max to be back in service, in terms of your model for american airlines and has the impact that it's been out of service declined as each month has passed? >> actually, it's probably from an impact on the airlines that are going to fly, the impact is bigger, it's more of a lost opportunity than a bigger lost opportunity than anything else and from a capacity and a fare alignment for the domestic industry, i would think it's a bigger impact on pricing for consumers because those are capacity that choice would have been there, more trips for passengers so the longer this goes, the bigger the impact. but it's a little hard to segregate. so, it's something that -- you

know, i think the sooner it comes back, the better it is, again, for the operators and we're right now modeling around mid-january for the aircraft to come back. but, clearly, the longer it takes to recertify the aircraft, you know, the risk is higher and it takes airlines about two months to bring that aircraft back after it's recertified. so, you know, we need to get the recertification by mid-november, late november, for the aircraft to come back in january. >> and you've got to convince passengers like me to get on one of those 737 max airplanes i'm not real excited about that, i have to admit, even with the recertification. more broadly, american airlines shares up 3% today more broadly, they've been suffering down 16% for the quarter. what's your expectation for the airline in the near to medium term >> yeah, you know, they've been hurt by a few events like the max. they've had issues with the

mechanics. i've heard custom that's hurt customer perception. hopefully, those things can reverse themselves and improve things on the revenue front, it's showing good performance it's really, you know, the investors concern is really on the balance sheet side, i think more than anything else. because there is concern that we're heading into a downturn. and american has amongst the highest leverage in the group so that is causing investor concern. as long agens we don't go into a recession there's going to be nice pick up in the near time, that's weighing on investor sentiment >> what are you looking for delta? >> delta has given a preview of what their third quarter looks like really, their focus is on a go-forward basis they have indicated to investors that the fourth quarter unit costs are going to be high for a myriad of reasons. and most of it is not continuing on

i think the biggest focus for investors will be what they're seeing on the revenue environment. so far, airlines are seeing really strong demand all of the headlines, you had about trade, macro, and the industrial sector, the weakness, really hasn't come through from a demand perspective i think all eyes will be on commentary on how corporate demand is holding and leisure demand is holding. >> savanthe, thank you for joining us don't miss tomorrow's cnbc interview with ed bastian, that's 7:00 a.m. eastern on "squawk box. switching focus, president trump is speaking at the white house just moments ago our eamon jaffers asked him a question about trade >> mr. president, the report this afternoon, the chinese are lowering their expectations for a trade deal are you also lowering your expectations for a trade deal? >> no, i don't think so, i think

they're doing a good job you know better than anybody, i think you doll a good job over there, i watch a lot we are so far down in terms of where we started for presidents that didn't do their job for many years since the world trade organization founding, china went in, 2001 or so, china went in and it just rimmed off the world. and i told that to president xi. i said like this can't be like a 50/50 deal because a 50/50 deal, you're like up there, we're down here so a 50/50 deal doesn't work, right? you got to have a little balance. this has to be a better deal from our standpoint. and i think they fully understand it. one of the really good meetings i had today was with our people on opioids and drugs and fencenn

fentanyl, and fentanyl with respect to what you're speaking of, we have great drug numbers what is great drug numbers if you're down 15, 16, 25%, it's still horrible what's going on in this country and the world, the whole world. but, no, i think they have a lot of respect for us. first time, they've ever respected us i think china has a lot of respect for me and for our country and for what we're doing. i think they can't believe what they've gotten away with so many years. >> do you think it's wrong to be putting pressure on the nba, sir? >> well, the nba is a different thing. i watched this guy steve kerr, he was like a little boy he couldn't answer the question. he was shaking oh, i don't know, i don't know he didn't know how to answer the question, he'll talk about the united states -- >> the president there answering a question from our eamon javers on the topic of trade. nothing groundbreaking but i guess a slight offset to the

headline that did take 50 points off the dow. another sign that we need to wait until the end of the week until the meeting is over and get the readout. >> just a reiteration of the president's broad stance one question that hangs out there, in this idea well, it can't be a 50/50 deal, the escalations that we've seen, whether on the national security lines or anything like that, are they now things that can be dialed back. and even the currency manipulate status we don't know any of that. but that's just, i think, in the mix, in terms of handicapping how this might be pursued. we have some news on target. eric has those details >> that's right, courtney. a new cfo at target the executive vice president and financial officer will oversee target's financial and retail services which includes guest relations of its financial products including target's red

card for more than 15 years, he's served in a varieties of roles in hr and operations courtney, i know you'll have a lot to talk about this >> yeah, we previously knew that target's cfo kathy smith was transitioning out of that role we've been watching shares of target in the last several days getting a strong buy initiation from raymond james this move wasn't entirely a surprise well, coming up next, the pulse check tonhe risk markets. mike santelli, he's still here he's going to heads over to the telestrator for that ♪ ♪ ♪

♪

welcome back to "closing bell." let's send it over to mike santelli he's got his third dashboard what do you got? >> we're calling this dull, with style. it's a writer's definition of art. what we have on wall street, dullness has been very much in fashion. if you define it as low volatility stocks and stableness the white line is the low ball stocks, defensive stocks hardly any giveback, even though you had the rotation into

cyclical stocks. these are high beta stocks, the ones most aggressive and the ones that move most dramatically a lot of cyclical stocks, highly leveraged companies, things like that so, right now, there's not been much in the change of the character of the market. it is the defensive trade that works late in the cycle that remains intact right now maybe we'll get a change with a trade deal or some confidence with the expansion that's healthy. but right now, i don't think the market is telling us it's in the offing >> thanks, mike. tensions flaring and new bearish and corporate for hong kong. plus, turkey launching new offensive in syria the latest on that story when "closing bell" comes right back. and getting her car towed. all i had to take care of was making sure that my daughter was ok.

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we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. welcome back to "closing bell." costco just putting out numbers for its september sales, but putting up really strong numbers, united states up 5% when you circle out the price of gasoline and foreign exchange in the united states, 5.7%. and e-commerce up 18.5% there. it's been working on rebuilding that e-commerce division, as it's been late to the game offering its items for sale in a way that's attractive to consumers. >> time for a news update with

sue herera >> here's what's happening at this hour. protesters camped out on the streets of london for the third straight day in the hopes of raising awareness about climate change while most are peaceful demonstrations, police have made 500 arrests. bmw is recalling more than 250,000 vehicles in the u.s. over concerns of the backup settings drivers are able to turn over that feature which could violate federal safety standards the recall begins next month glaxosmithkline is taking a precautionary step from removing zantac from all markets worldwide. the move comes just days after the fda found unacceptable levels of cancer-causing impurities in the drug on a lighter note, take a look at that big guy a restaurant in pennsylvania is getting into the halloween spirit in something strange. in an homage to "ghostbusters,"

the owners of angelos has installed a huge stay puft marshmallow on the roof. and a few monster tentacles, too. le l we do have a developing story overseas >> courtney, there is now a report that turkish ground forces have crossed into northern syria, of course that conflict is creating a politically fraught moment for president trump and democrats at home this afternoon, trump said he's not worried about escalation >> are you concerned about escalation and are you concerned that erdogan will try to wipe out the kurds? >> i will wipe out his economy if that happens. i've already done it once. i'm sure that he will -- i hope that he will act rationally. >> the question is how far will

turkey go, what consequences will trump be willing to impose. guys, the turkish president is scheduled to meet with the president at the white house next month a lot could change >> iev virgin a lot criticized tweeted about it, is that the criticism today as president erdogan has begun his attacks? >> we're hearing from even senator lindsey graham who is saying this was a poor decision. and we're also hearing democrats on the presidential side saying this is something that endangers the kurds in the fight against isis so we're hearing bipartisan agreement that perhaps president trump should rethink that. we've got a news alert on bet, bath & beyond >> bed, bath & beyond, president and ceo affected november 4th,

you can see the stock up about 17% right now on that news, tritten most recently served on target, and also worked at nordstrom and nike but he's coming to bed bath & beyond the market is up 17% the market likes that pick thank you. >> back to you the dots are connected >> finally, we've had this interim ceo at bed bath & beyond since may. they've been doing executive reshuffling. they've got a new board. and they're making changes and the move going higher, 19% naming mark triton that was part of the market announcement that he was resigning, sort of a double announcement for target now we know where mr. trittton

is going obviously, he's had a nice run interesting move with the timing ahead of christmas but we know that gets set well ahead for retail >> even as a gesture and what it reflects, it seems like they're going to try to raise the metabolism in terms of merchandising. by the way, 50% of bed bath & beyond shares sold short >> this has been a move we've been waiting for and now we have it back to the broader market, stocks closed high, with the blacklisting of 28 chinese companies this week was difficult for goodwill let's bring in the director of asia practice at the eurasia group. michael, good to see you let's talk about expectations going into this round of trade talks. it's been up and down, the expectations, tell us where you stand on that. >> well, i don't think we're going to see any breakthroughs,

certainly from this round of talks. i don't even think we're going to see a formal agreement on the deal when the talks end but it does seem like we're in the short-term positive in the sense that beijing has reacted to really an inflammatory move that the united states took, with sanctions over technology companies and china's provincial government in the province over the population there so, it's been quite a strong move in the works that have been debated within the u.s and the timing is really notable, right they make this heaard hitting me on the eve the trade talks china did not cancel the trip. talks thus far anecdotally seem to be productive i think short-term positive in the sense of avoiding escalation for the time being but i think there's reason on how it will come out of the

talks. >> it might have been restrained on the remarks but talk about what's going on in hong kong and china's response to some of these united states-based companies operating over there i mean, that's a real risk for businesses >> absolutely, and that's one of the pressures on this relationship that makes it smart and skeptical and cautious about what the median term looks like beyond the next few days so, that's right, chinese companies are taking their cue from chinese leadership in standing up to what they view as politically correct statements with interference with china's affairs with respect to hong kong it looks like it's infringing on freedom of speech. so i think this is a move on the one hand demonstrates china's market power but on the other hand, i think, is going to galvanize a backlash, or maybe a more constructive conversation in the u.s. business community about how to deal with this. this is the new normal this is not going away

companies are going to continue to be caught on china's demands on this kind of issue. and the backlash they face at home for being seen as bending over backwards for beijing >> to what extent do u.s. companies taking a real interest in the hong kong protest yet already have sales in klein china, kind of being over the top given that freedom of speech doesn't exist in china is there an odd kind of disconnecdi disconnect to one issueand not the other? >> i think there is a disconnect and i think it's closing with respect to businesses in terms of what's at stake at here we have seen too much of this as far as u.s. businesses are concerned. whether it's trade with hong kong, u.s. hasn't been at risk the nba is a huge target but the nba is large enough to be able to push back and with adam silver, the

commissioner, revising the nba statement and pushing back on china's pushback, saying look, this was one employee, and we stand for freedom of speech. i think they ended up in a pretty good place, the nba did but it took a long time to get there. this kind of statement where you anger china but you as anger your domestic audience is something that i think businesses have to be better in term of their response time. >> something that all of these businesses have to learn how to handle as they go forward, just as they have in the past thank you, michael hirson. carmakers slamming the automation feature we'll hear from that coming up next on "closing bell. wow, what a beautiful wedding! as your second cousin and number one broker... you're welcome. remember, carl, we haven't been investing with you for a while. hmmm? because schwab makes planning for things like this easier. yeah, with schwab we get automated investing

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tesla's smart summon is the company's latest self-driving even if drawing headlines. tesla tested smart summon and said it was glitzy, that it even drove erratically, like a drunken or distracted driver

we've reached out but have not heard back jake, you did the test, what exactly did you mean by drunken driver here? >> well, i suppose it's pretty disappointing what you actually look at the marketing company of what this feature is to do it's part of a $6,000 option of full self-driving. this feature, they bill it you're at the supermarket, it's raining. you hit the button and the car arrives to pick you up it doesn't quite work that way and really, when you get down to like the fine print, it's very clear what the limitations are it doesn't notice the direction of traffic it can't necessarily detect curbs. you know, we found it tends to drive in the middle of the road, down to the side of the road sometimes, it will stop in the middle of traffic, blocking other traffic. you don't have the convenience, actually sprinting out to the parking lot to avoid a traffic jam. >> so, jake, clearly, you were disappointed by it but was that

in part relative to expectations i mean, how does it compare to what else is out there in the marketplace, in this sort of area at the moment >> well, that's really a great question i mean, i think it's disappointing that it does not perform how it's built i mean, if someone actually just spent $6,000 to supposedly get this feature, what they get doesn't really match how it's billed it really is the first vehicle that's operating remotely like that so, it is very interesting look, i'm an engineer, someone who is into technology, it's certainly interesting that it can do it. but as a useful feature, not so much >> do you think this is something that can be fixed? >> well, fixed is something that really is a work in process. i think in reality, what you're doing you're kind of operating kind of a science experiment after you purchase it, you realize it's beta, it's

developing over time i mean, clearly the use will improve over time. but it is just really important to know, when you're spending $6,000, you're part of the testing of this, you're not really receiving the benefit of it >> and, jake, just to confirm, you still have to be sat there behind the wheel, it's kind of an amped up cruise control >> no, let me be perfectly clear. you can be outside of the vehicle. you actually operate it with an app on your cell phone no one is behind the wheel at all. certainly as a gimmick, it's very impressive to see it operate with no one behind the wheel. operating and acceleration and brake, turning the steering wheel, while you're away from the vehicle. very different from anything else we've seen. however, you still need to watch the vehicle. this is not an autonomous vehicle by any figment of the imagination. you need to watch this vehicle and you kind of have to keep it out of harm's way.

you need to pay close attention and make sure it's not doing anything it shouldn't. it does a good job of detecting pedestrians. we've seen even in social media, a lot of situations where it's causing fender benders and accidents in parking lots. >> you're paying $6,000 to beta test something that's glitchy. jake, thank you. up next, a major wildfire up next, a major wildfire prevention plan. pg and e coming up but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today.

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there's really only two people that matter on this one, and that's president xi and myself we get along very well i can't imagine he likes me the way he did when i first became president. >> that was president trump moments ago, talking about the trade negotiations with china will be happening here coming up the president said the u.s. has had to drive a hard bargain on trade. they say, look, it's got to be a deal that really benefits us more than that 50/50 is not what the president is looking for let's send it over to mike santelli for the final dashboard of the day what do you got, mike? >> i have a mold jolt. that would be the jobs earnings, that the labor of bureaus and statistics puts out this morning. the labor market, still 7 million jobs open in the country. that still exceeds the number of unemployed people.

so, that's clearly a pretty strong state of affairs. however, you don't have to squint too hard to see this number, having rolled overpronod normally, you'd see fewer job openings but it kind of rolling over i will say people are concerned because that's the way it looked before the last recession. and, obviously, this survey began right there, i think in the year 2000. that was another peak. however, the good news, and we keep pointing to this, right, the 2016 slowdown, near recession, whatever we want to call it, we did see year-over year declines the way we are seeing right now, at least a pullback so we have to watch this to see the drop market which is a strong core of all of the macro data gives way thank you, up ne, xtbig tech we'll break that down when "closing bell" returns

the oecd taking aim at tech jobs dee is here with more on the story. >> there have been ongoing efforts for the so-called tijt teches which the u.s. so far has

resisted answering whether it discriminates against companies. it would still force the likes of google, amazon, facebook, to pay more tax in countries where customers actually use their products and services versus the stats quo now where headquarters or patents are allowed this would go beyond tech companies to affect other highly profitable brands like those in luxury goods or automobile the tax proposal coming from the oecd would carve out now winners and losers european companies would be better to earn from sales on their companies. likely hurt to be ireland and switzerland. back to you. >> dee, i guess the most significant development of this is it's a united group of countries that are proposing this, the oecd, rather than france or the uk individually

introducing some new tax which looks like it's specifically focused on u.s. tech companies and then becomes a bit of a quid pro quo type trade war where if this comes together and is accepted by all thenations as one, it's pretty hard for anyone to push back on it. >> absolutely, the french digital tax was problematic because some in the u.s. felt it discriminated against tech companies. it draws on some u.s. suggestions. it doesn't just go after tech. they would be highly affected. it goes after luxury brands and cars as well so this is more likely to get support, but we're still a ways away from this being passed and having any kind of cohesive global digital tax. >> dee, thank you very much. up nt,ex pg&e cutting power to hundreds of thousands in california the latest when "closing bell" comes back

i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement. pg&e cutting power to hundreds of thousands of customers in california in an effort to prevent wildfires. we spoke to some californiaens about the outage here's what they said. >> i think it's kind of a situation where you're damned if you do, you're damned if you don't. at least they're doing

something. >> i'm not sure what i would do in their shoes i'm sure they have lots of different factors to think about, obviously as a consumer it's not a great situation to be in but it's hard to know what i would have done. >> the reason that i've heard for the shutdown is that they're trying to protect, i guess, like potential impacts from oh occurring and that seems cool, but it's weird to me that they can predict that now when they couldn't predict that a year ago. >> nbc's ali wolf has more on the story in santa rosa california for us. >> yes, we are seeing the effects of more than 500,000 pg&e customers without power here in santa rosa alone, we have already seen the effects. we see gas stations on each corner of the intersection where i'm standing they are closed. the traffic signals are black right now. it's causing a lot of confusion for drivers here they are trying to treat it as a stop sign, but some drivers are

getting confused we have already witnessed two car crashes right here on this corner also, a big effect on businesses lots of these businesses have signs on their doors that they are closed today we spoke to one business as they were loading up meat and vegetables that one business alone says they're trying to save $5,000 worth of food, so you can only imagine the effect on businesses all throughout the bay area and northern california with the power preemptively shut down to try and prevent wildfires. >> thank you just as you're speaking, i think we're all sort of cringing at the traffic behind you hopefully the drivers can figure that out and everyone can stay safe in this outage. let's get another check on bed, bath and beyond shares they have a new ceo, the target's chief merchandising officer until we got the news that he'll be moving companies you can see shares up to 20% and i was able to get in touch with

a source that says we don't only like this pick, we love this pick everything that mark did at target is exactly what bed, bath & beyond needs this company has been under a restructuring and shares are very high, but you also point out that short interest is also very high. >> because the market has essentially said this is quasi permanent decline. it's one of the cheapest stokts in the s&p 500 i think one of the differences between this and some of the other challenged mall retailers is it was once kind of a category killer. it seems like there's a lot there in terms of this category to try and maneuver, maybe more so than, say, an apparel line or something like that. >> absolutely. >> back to the border markets, healthy gains despite the little sell-off at the close and all sectors meaningfully higher. >> it was yesterday all down i think it's just kind of

relieving the pressure is market is swinging on this very small pendulum right now. it assumes it's going to be trade but we gkpas per rated. >> we're out of time that does it for "closing bell." >> "fast money" begins right now. >> we're looking at new york city's time square i'm melissa lee. t tonight on fast shares, bed, bath & beyond surging. will this be the big turnaround for the company? plus our call of the day, one top analyst says fedex is dead money but the stock reaction may be telling a very different story. and later former nasdaq ceo is with us and we'll get his take on the recent pain in the ipo market we begin with breaking news on the trade front. beijing lowering