police checkpoints he s benign, it's the way it's being used which goes to the importance of protesters. if they can keep this fre fulcrs when the violence breaks out and if this was being used to spur that >> then you lose it. >> thank you for watching "power lunch" >> "closing bell," right now welcome to the "closing bell," everyone. i'm wilfred frost. i'm here at delta, they are sinking. the markets are softening a bit. we're up half a% with 59 minutes left of trade. >> i'm courtney regan. let's look at what's driving the action today hope for a deal as the president analysis talks will continue into tomorrow, yields sticking higher which has bank stocks and commodities rising as well but ipos suffer.

youl uber, spotify is testing new lows stephanie we were just talking before we got started this market has to give you a little bit of whiplash. we're up for a second straight day but hold your breath maybe things will change tomorrow. >> you can't get obsessed with it you have to either have to be a long term investor or day trade. very difficult at this point look trade is obsessing everyone i can't wait for earnings. i'm super excited to talk about banks. i'm watching technology today. technology is 26% of the s&p 500 waiting. we have gotten a couple of surveys in the last couple of days that suggest i.t. spending is slowly. 4% this year, 3.4% next year you have to start to be more selective in technology. again, a big component of the

s&p. i still think you want to be in semis, cloud and security. you want to be very specific on software and hardware. >> we had a lot of calls >> cash coming after the close last night two days in a row of gains and almost all sectors positive both days so within the trading session at least it's been positive the last couple of days. >> i wasn treadmill this morning trying to ignore the whole thing. >> you can't ignore it >> you can take advantage of strong fundamental stories and buying those dips. that's what i've been doing. >> let's divisive into all the big stories. kayla tausche has the latest on negotiations between china and the u.s. she's in washington. bob pisani and bertha coombs are tracking the market's response and we'll break down all market implications let's start with kayla >> reporter: here's how trade talks have been structured today. two multi-hour negotiating

sessions between the u.s. and china and two meals, a lunch for a smaller group here and a bigger lunch for the rest of the chinese delegation at the willard. there's expected to be a cap stone incident are tonight that the white house is planning to roll out the red carpet for this delegation the big event will be tomorrow president trump saying he'll have the vice premier in the oval office for a meeting. two former white house officials tells me that suggests that china has presented a legitimate offer that the president could be willing to accept here's why the last three times the vice premier has been in the oval office at the invitation of the president it's been because there were positive developments in this story. first a major purchase of soy beans then a delay of tariffs a couple of months later and then after that planning meetings for a potential summit between president trump and xi talks broke down after that. but the hope from investors is that that meeting will help get

talks back on track. >> kayla, are we aware of any circumstances in the past where the vice premier has declined a meeting in the oval office with the president? my point being is as soon as the invitation was extended he would be likely to accept it, regardless, would he not >> reporter: yes one would expect he would. there was one visit where he came to washington and he did not have one of those meetings that was in may. that famous or at least in my world, famous which shows you how little i get out, but that meeting back in may when talks broke down, when tariffs escalated and when you had the chinese delegation come they weren't proposing anything, they didn't agree to anything they essentially left empty handed the chinese government made them fly commercial back home there was no meeting back then that's when the two top negotiators in the u.s. were ca castigating china for back tracking on previous promises.

of course there were threats in chinese media they would leave early, they were frustrated so perhaps this is also president trump laying on the pressure there. >> you are the one that makes it famous for all of us thank you for bringing us that level of enlightenment >> we do owe her a night out stocks are spiking earlier after president trump tweeted he would meet with china's vice premier tomorrow bob pisani has more. >> reporter: only when the announcement was made. look at the s&p. important thing, 30-point move early on when the president tweeted he would meet with the head of the chinese delegation tomorrow at the white house. we're well off of those highs. we don't know what's happening a truce may not be enough to sustain the market for weeks on end. we do have predictable response, the big cyclical names in the dow, caterpillar, the banks have done well. jpmorgan and goldman sachs,

chevron on the upside. i want to highlight some small group of retailers at new highs. consistently in the last several weeks. a small group hitting new highs. tjx, walmart, sherwin williams target costco half a dozen seven or eight most of these big retailers outperformed everything else in the retail space and everybody else in that group is lagging this year. back to you. >> we had low volumes yesterday with the holiday where are we standing? >> low volume again today but not as bad as yesterday. what the tendency has been much heavier volume on down days for the market, and modest volume on days when we're on the upside. >> bob, thank you. tech stocks getting a bit of a boost. bertha coombs are tracking the movers >> reporter: it's not really the trade issue today. it really is about analysts notes. apple hit agnew 52 week high couple of dollars shy of it's all time close back on october 3rd. but analysts upgrading the stock

on a stronger outlook for iphone sales. but analysts see a halo effect the chip sector today right now is off of it highs still fractionally lower for the week meantime a tough ipo day for buy on tech the german cancer drug developer slumping after pricing it at $15 a share and slashing its off, in the last couple of weeks heading in to the ipo. it comes as the year's three biggest ipos hit new lows today. thank you very much for that for more on today's markets let's bring in russ, portfolio manager. what's your take when we see these days and tech leads on small headlines on trade do you see that as legitimate momentum in those stocks which, of course, had gains as of late >> there are a couple of things going on

tech leadership makes sense. it's a sectors to generate it makes sense people are leaning towards growth the big theme is this constant reversal on the daily charts month,ly charts, if you look at monthly data the tendency for one month's returns to reverse the next is the highest eve seen in five years this is a market with uncertainty dominates. >> so russ with that uncertainty what do you think is priced in to the market as it pertains to a deal or no deal with china what's already priesd in where is the room for up or down side >> if you were to have an announcement that there was a truce and it's important to call at it truce, probably not a deal because it is highly unlikely we'll get a comprehensive package that deals with all the issues that american-china wrestles with. if you have a truce you'll have a short term pop in the market but that said it will be very

hard to move much higher just based on that because regardless of the short term move, we know there are lingering issues and we know there are issues that affect business confidence, affecting capital spending and affecting investments. >> sorry, russ according to russ we'll stick in that trading range do you agree or are there some catalysts coming which could lead to significant steps out of the range. >> we're staying in a range but i think some sectors that got hit hard on trade like the cyclical group will do well. value will do well you'll see that rotation once again and that's because these stocks have lagged so substantially and are cheap. we'll hear more next week about earnings and earnings power at these companies but i think expectations are solo and numbers have come down for that particular sector. that's what i'm watching on style and on certain sectors >> what do you think about the probability of a recession in the near term and how that

weighs on everything whether it's as a result of what's going on between trade tariffs uncertainty or anything else >> you're the expert on the consumer and the consumer is still very strong. jobs are fine. wages running at 3.5%. low end is doing well. mid-end is doing okay. the consumer will continue to be electronic i don't see a recession in the near term. obviously we're watching manufacturing. manufacturing is horrible. again a lot is priced in already on the manufacturing front and consumer is such a bigger portion of the overall economy so as long as they stay okay we'll do 1.5%, 2% gdp. >> what do you think a recession? >> for exactly the same reason steffi cited the household sector looks very solid. this is not 2007 debt is low relatively to income wage gains are reasonable. very low unemployment. savings rate is high rates are down

so one part of the economy we do like, where we're buying right now looking at consumer related names. we think that's the segment of the economy that looks the best. if you have weakness that's where we're looking to buy >> russ you're buying some chinese equities at the moment >> we actually have a number of positions in china these are some long standing positions. interestingly they are also geared to the domestic side of the economy. obviously there's a lot of headline risk. we don't expect a near term complete resolution of the trade friction but if we look at the chinese household sector we continue to expect to see growth there and emerging middle class and many of the names that are levered to that sector, lesley severe to trade are actually quite reasonable chinese internet commerce is one place we do like >> russ, thanks for joining us great to see you >> thank you >> after the break fidelity jumping on the zero commission train but what does the race to

zero mean for broker's bottom line we'll speak with the head of american pair well and footwear association about today's trade meeting and what american retailers want to see from a deal >> initial jobless claims fell to 210,000 and consumer price index was unchanged in september versus estimates of 0.1% crease. stick with us, "closing bell" will be right back oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals...

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>> welcome back. 45 minutes before end of trade let's get over to mike for today's market dashboard >> here's what we have it ends in zero, brokerage commissions ending in zero fidelity the latest. we'll talk about what that means for the publicly traded ones adds up to tension choppy market has worn on sentiment. anxiety rising we'll have a graphical representation of that a month-10 base. how the seasonal patterns start to change as we go through october. those tenths pile up tenths in the inflation index. new information on that. ends in zero let's look at the publicly traded online brokers. up today between 1.5% and 5% on

a day when privately held fidelity joined them and said they would charge zero for regularstock and etf commissions. they've been down a lot. they took these huge moves down as the price really got started. interactive brokers an expectedt it was going get to zero they didn't go beyond thatlot o didn't make options trading even more cheap they met what the industry is doing. fidelity did also offer to allow clients to make at it default setting to have their cash put into a higher yield money market fund as opposed to low yield and bank deposits. in theory that could pressure the cash yields but it's not seen necessarily as too much of a game changer now they also, of course, sell their order flow, the other ones

do fidelity continues not to sell its order flow to wholesale market makers. take a look at the charge. this is a huge electronic making firm that became public a few years ago. if order flow was a boom to traders and kind of a harm to retail clients you would think these guys would be minting money. frankly it hasn't been a good business but not a great business verycompetitive. this spike in early 2018 that was when the volatility market went nuts and the markets got a lot more volatile after a comp period of time and that gave way to this period here when they are going sideways to me payment for order flow is a little bit controversial but it's hard to say that the retailer doesn't have a better deal now than he or she ever had before >> mike, i think it's fascinating that in the horticulture term the response of these big stocks is to be lower and in the long term you think those bigger companies with scale come out on the other side of a price war.

interestingly enough it's the smaller companies like robin hood that spark the price war that are probably going suffering the most >> no doubt. i think when you look at something like a fidelity or schwab they have these impressive offerings they don't rely on trading commissions for most of their earnings it will be a challenge for the upstart that got attention because they weren't charging for trades to figure out what the customer is going to want and why they want to go with them as opposed to a larger established firm is there a play here for you, stephanie when you look at these brokers? they are down so much year-to-date >> no. i would not touch these unless you believe in consolidation which could happen i won't play it just on consolidation. these guys need a steep yield curve as well. you got a double whammy, pricing, competition and then the yield curve. they are cheap for a reason.

>> okay. that makes sense some news on gm. let's get the details. >> reporter: gm ceo had a meeting with uaw's top brass on wednesday. this included president gary jones and the negotiator we were told that meeting lasted about an hour and that they were discussing a recent proposal to end the three week long strike back over to you >> thanks very much. coming up, more wall street analysts are piling in on netflix with a fresh round of price target cuts. we'll get the "word on the street" on those latest calls coming up next >> we had a great quarter in our third quarter. demand for our product has never been stronger. >> we will ask an analyst why the stock is dpproing despite that upbeat tone from the ceo. we're back in a couple of minutes.

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welcome back to the "closing bell". now it's time the to get the word on the street goldman sachs and ubs lowering their price target on netflix. citing earnings estimates revision by retaining buy on the stock. >> jeffries downgrading united health to $$235 from $300.

also says walmart is best positioned over kroger i guess the key one that stands out is on netflix where you've got goldman and ubs reiterating buy and conviction for goldman but cutting the price target but both are still saying going get significant subgrowth. so if you don't see that i wonder how much of a leg down you'll get on netflix stock. >> they are late everybody is obsessed about the sub numbers for sure ate hard sector. in fact i own disney and i've been trimming disney i still love it long the term. the competition in ott is off the charts i think the pricing power story of netflix is a hard one to make at this point given all the

competition that's coming out. they may get the growth but may not see it on the margin side. >> is it hard to pick a winner >> i think so. i'm long term on disney. i think they are a winner. i think their content is superior but dicey in the next few quarters >> we got two other, recent last chance calls, united and walmart. where are you on both of those >> i like united but i recognize the politics and that's pressuring the stock and the sector, and even the subsector with hmos. it will be tough i have managed the position down a bit just because we have time. we don't have a catalyst here in the near term. walmart i like you'll see positive operating leverage because they have been spending but now starting to see the results. kroger has to spend and spend and they are in a tough bind i much prefer costco

i'll take a 5.7% >> we got 35 minutes left to trade. we're up 0.6% on the s&p 500 140 point on the dow we'll have your last chance trade. stephanie is passaic chip stock that's up 25% already. >> bed, bath & beyond rocketing higher details about the company's new ceo and wall street's strong reaction here's a quick check on bonds treasury yields getting a boost on china trade optimism. "closing bell" will be right back ♪ things you can do with schwab: you can earn more when you invest your cash. ♪

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testing all time loss. time for a cnbc news update with sue herera. good afternoon everyone. here's what's happening. >> senate minority leader chuck schumer say republicans need to put country over president trump when it comes to taking action following trump's decision to remove u.s. troops from northern syria. it should not have come to this but republicans in congress by repeatedly demonstrating that they are unwilling to hold president trump accountable when he does something wrong, have established a permission structure for president trump's reckless actions in syria. >> the cdc confirming there are now 1299 confirmed and probable cases of vaping related lung injuries in 49 states. that is an increase of 219 cases from just a week ago alaska is the only state that has not reported any cases 27 deaths have been reported in

22 states. the philadelphia phillies have fired manager andrew mccabe kapler after his second season of a three year contract this after missing the playoffs in his first two seasons the phillies have not made the post-season since 2011 you're up to date. that's the news update at this hour we've got 30 minutes left of trade. we have about 155 point. let's go to mike for the second installment of the dashboard >> for a lot of the political drama, the trade headlines, choppy market all added up to tension when it comes to investors mood on a thursday we take a look at the sentiment indicators here's one this weekly poll american association has been neutral you've seen dramatic moves bulls took a big plunge down bears are up above 40% right now. you see that kind of rhymes with these other areas around the end of last year now this is not in itself a buy

signal on a contrarian basis. it works when it fits in with other sentiment cues and positioning indicators it tells you we're kind of nervous and a little bit scared considering the market as a whole has not had really big decline. look at this another indicator. this is real money equity exposure by the national association of active investment managers that's basically a group that takes a look at these tactical investors. sometimes it's very high now knocking around the loss for 2019 we came out of the depths at 20% decline in the market. not taking any real chances and positioning for an upturn in the markets right now. it nets out the a cautious underlay for the market right now and basically susceptible more potentially to good news than to disappointment at the moment >> thank you very much delta airlines reporting

better than expected earnings this morning but missing on revenue and guidance here's what the ceo said this morning on "squawk box" about the state of international business >> international is choppy on the u.s. side, which is our bread and butter about two-thirds what we fly is maine. we were up 8% in the quarter internationally there's been pockets of weakness, particularly in asia certainly the tariff issues on some of our automotive and heavy manufacturing customers have cutback their travel to asia europe was a bit weaker given primarily currency effects >> joining us now is the director of industrials equity research at cfra jim, thank you for being with us today. what's your summation of the earnings, some good nuggets but some weak point as well for delta? >> during the quarter they did an outstanding job revenues were in line with our expectations operating margins were better.

they got a tail wind for low oil prices they ran a great airline during the quarter. what was the weak was the guidance for the fourth quarter on year revenues it was less than we expected and the stock selling off a little bit on that news >> you're not concerned about that trading down, that guidance you have this as a strong buy? >> a couple of things. number one we think demand remains strong delta clarified that most likely the fourth quarter will be up 1.5% which is about in line where it was this last quarter also i think the valuation looks compelling the stock is trading seven times forward earning. five year pe is way below its historic levels. we think investors will buy back into the stock once it reassured revenues are okay and these airlines are making money. >> we talk an awful lot about the 737 max here and delta doesn't own any of those planes.

of that a short sterm advantage? does that go away soon when the max comes back into service. >> it is a short term advantage. they were able to gain market share because they continue their full schedule while airlines like united, american had to cutback next year that should equalize out. this max won't come back on day one. it will be some time in january, middle of january. delta will get a little bit of first quarter edge and then that will dissipate >> do you expect the rest of the group to see cost pressures like delta did ex-fuel? >> delta has specific circumstance they gave their ground and flight attendant as 4% raise during the quarter that impacted their unit costs i think that it's going a mixed quarter. some airlines doing better united has been doing better american has been doing worse. i mean i'm very interested to see what will happen and we'll

see strong demand. what they do operationally we'll see. >> jim, outside of delta what's your other top pick? >> we have a strong buy on spirit airlines. that stock sold off way too much on weak second quarter results they are being pressured by airlines pushing back on basic economy. we think that the stock sold off way too much and ate compelling value. >> got it. thank you for joining us here we have just about 25 minutes before that "closing bell" sound. let's take a look at where we stand as the major averages are holding on to their gains. dow is higher by half a percent. s&p higher up next we got your last chance trade. >> shares of benefitted bath and beyond more than doubling its 30 day average. we'll discuss the company's new ceo and how investors should play the stock as we head to break here's the

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welcome back 21 minutes left for trade. there's the sector heat map. only one sector low. yields are rising and yield curve steepen. banks doing well utilities doing poorly we have just over 22 minutes left to go in trade. stephanie, what's your last chance trade you teased us a little bit in telling us about being selective in tech. >> i picked annex pi analog devices is the idea their end markets are stabilizing. end markets auto and industrial. really ugly end market but we're seeing a stabilization and they are gaining market share they bought linear tech two

years ago. then they undershipped consumption last quarter i believe so you'll see a restocking cycle may not come this quarter but i think it will come within the next two quarters and this is a great management team. with a decent valuation with much higher earnings power going forward. >> you mentioned you picked annex before within the subsector what's your top pick >> i like them both. the bigger position is nxipi because it's cheaper >> does that mean you have a strong stomach to hold on to these semis right now. >> my entire portfolio you have to have a strong stomach >> well with 20 minutes left to go before the "closing bell" here's where we stand for the major averages we're higher going into this close. the dow is higher by 131 points well off the session highs but

still good for half a percent gain nasdaq is also higher. s&p 500 almost higher by .6 of a percent. up next we'll take you inside the market zone. that's commercial free coverage of the final minutes of trade. close bell is back after this.

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trading day and we have stephanie link let's kick things off with bob pisani and having a look at trade sensitive stocks that are outperforming today. >> reporter: companies that have high revenue exposure to china these are the ones that will tend to move when you see the kind of headlines we'll be seeing take a look at emerson electric. significant amount of its revenues in china up 2%. the this is what happens on a day like today 2% movers. they move on these china headlines. caterpillar another one. all the move here was earlier in the day when the president made that earlier tweet another good example of 2% move. cummings engine another company with significant exposure to china and headlines around china. up again you see the move earlier in the day throw in a retailer that's often associated with china due to the way they do business, kohl's also up 2.7% guys, back to you. >> bob thanks. mike exposure to china equates

to the cyclical aspects of tech, financials >> part of this broader move where we're having a perk up of the cyclical trade bond yields up this idea that maybe the economy maybe is running hotter than expected >> do you trust this >> i don't think -- i think there's still plenty to prove. mostly because we're really just traversing the same area, the same levels and waiting and seeing the market is staying well supported. i don't think any one day move is giving you that much information. >> a couple of days in a row decent performance but week to date we stand lower which kind of sums up or feels like there's positive momentum on trade but one day leads to bigger declines >> we're just churning churning maybe we can get out of this range during earnings season we'll see. let's see how the companies react. no doubt industrial companies specifically are going to have the to lower numbers

probably energy companies as well we'll see about the banks. probably too so if they actually go up on bad news then that's actually a very good sign. so that's something i'm watching for. >> i think one of the benefits of this period where everyone is getting chopped up and you'r getting whipsawed by the news it has drained away a lot of optimism or confidence or conviction that's a set up for saying once we get past a known event then maybe relaxation trade and you can find something else focus on >> maybe we had the peak of panic in trade maybe. we'll see. >> well shares of bed, bath & beyond are sharply higher as it names a new ceo. the 53% of the shares are held short. so short is in play with shares of 22% a group of activists whose involvement led to the resignation of the former ceo and turn around plan are happy

about trend on the chris kipev a legion partners asset management he says mark tri the tton is a superstar. tritton was a key part of the target team. that means the products themselves, the way they are priced, the way they are presented, including importantly developing new private label lines something that really is part of the bed, bath & beyond turn around plan private labels are more profitable if you build the brand you own it you decide how to price it there's a long road to go, right, stephanie >> you know how long it took target to get traction four years he was ceo at a private company. i think this is great, great news they needed a good strong leader it is going to take some time. they are going to have to spend

a ton of money and slash those earnings so you have to get comfortable with the earnings power story. i don't have a feel for that at this point >> the upside is there has been this line of conventional wisdom that each retail category in theory, there was room for one traditional leader so the best buy example, of course, everybody fixates on, i don't know if bed, bath & beyond qualifies in that regard, if that's a category that really can have a strong brick-and-mortar leader. >> do we know how his options are price. whether it's a short squeeze or not -- >> that's a good point >> some recent ipo names sitting out today's rally. >> reporter: even as the broader market is in the green there's been some pressure on shares of recent ipos today. take a look at the stocks of uber, zoom, beyond meat, others also in the red today. investors starting to take money off the table as a wave of block of expirations are set to unfold

over the next few weeks. these expiration dates are typically six months after an ipo. you recall all those ipos from the first half of the year these lock up expirations allow insiders to sell their shares and they have the potential to unleash an abundance of supply into the market. if that happens it could cause shares to fall further throughout the fourth quarter. something to keep an eye on there. >> going to be interesting when the bank reports showing how the revenue shakes out for these ipos thank you very much. what's your take on some of these and whether we settled now? >> i don't think we've settled that's the whole point that's why these stocks are trading off so much. the investors don't have an appetite for money lotion companies at this point at a v-very rich valuation. so there are going to be some at some point but i don't think they are down enough you have these lockups still happening. i don't think there's a reason to buy these names right here,

not right now. >> the only good news is typically when you have the lock up the selling gets done before the lockup this is anticipating of new supply but that hasn't -- we haven't had the lockup yet no valuation support here and i doubt anybody wants to show these on their quarterly statements quarter end or year end, fiscal year end >> i wait a year after an ipo. let the dust settle. get real investors in there. so, i think it's takes a while >> next stocks focus in on is morgan stanley banks are performing well because of a re-inflation in the yield curve. morgan stanley benefiting from an upgrade this pretty much pure and simple is a valuation call. they have slightly tweaked their earnings estimates but point out that morgan stanley's valuation has slipped in particular relative to the group. they point out 8.2 times pe

versus the peer group at 9.7 s&p 500 is at over 16 times p. trading just below book value about 0.9 times on their numbers. you got low expectations, of course, about net interest income but positive yield curves as of late as a pure investment, more pure investment bank, they have less exposure to that but they have exposure to the cyclicality in another way which is wealth management also in the last couple of weeks because of this battle in terms of brokers their area but broad price wars in investment management it's very cheap. >> no doubt about it very cheap what is reflected in the cheapness is the idea traditional full service wealth management model while traditionally very secure and had stable fees and all the rest of it, long term seems pretty challenged by what's going on in the world and next generation of investors. that's not something for this quarter. doesn't change the fact that

it's very cheap. i do think that's where the overhang is. >> one of the attractions of morgan stanley versus goldman sachs has been this growing wealth management which people have said is sticky, a source of capital, margins are improving we get later in cycle and ceases being attractive >> everyone is piled into goldman sachs. year-to-date up 21%. morgan stanley up 4% no one is in the name in morgan stanley. i think that could reverse if they have a good quarter last quarter it was a disappointing one relative to goldman and other banks. i'm looking forward to low expectations, yes a cheap stock and if they can deliver maybe the stock can have a bounce here >> the best of the big banks is bank of america up over 2% highlighting most of dave's move in the bank is down to the yield curve. they all report next week.

tuesday kicks off four of the big six. >> busy on tuesday i think >> we got six minutes left to go goldman sachs out with a new note on hardware saying it's taking a more cautious approach as it anticipates further deterioration in the large enterprise spending names. let's bring in jon fortt for his take these names have had a decent selloff since the trade war began. >> reporter: it got worse. if you take a look at horsepop cisco. this is about uncertainty over this trade war morgan stanley saying it's not so much affecting small and medium business spending its these big businesses that are really hesitant to really spend because of uncertainty on how the trade war is going to work out. they've been doing checks throughout the year, specifically zero in on the period since may when the talks with china seemed to have really

gone south they say it looks like it's getting worse. for some of these companies. they mentioned specifically those three. they also mentioned commentary out of dell hasn't been that positive they are looking to see whether this is bottoming out or getting worse. though some signs say could it be getting worse >> what are the last areas that see a cut to spending as this confidence starts to drain >> the last areas that see a cut to spending. >> areas they are not cutting. >> areas that large businesses are not cutting? >> ah-ha >> the goldman note more focused on the danger to technology that large businesses do spend money on so it's more the impact on tech versus the large businesses and what they are not cutting spending on. so they don't get into that as much as they do who is likely to get hit. on the flip side pure storage, for example, that's a company that got an upgrade from goldman because its base is more small

and medium businesses who are not as impacted by this uncertainty. i guess they have more room to grow >> thanks so much. you've been focused on these notes. >> so where they are going to spend is cloud and security i believe because that's very important especially security. we're hearing that from companies overall. i think that there are a lot of companies that are at risk in terms of software and in hardware, maybe more for hardware than software but what the problem with software stocks especially the sas companies they are still expensive. it's something to watch. 2018 saw very strong spending because of the tax benefits so we knew we would see a loudoun let's see if the slow down can stabilize but it's something to watch especially because it's 26% of the s&p 500 waiting >> we got one four minutes left to trade let's have a look at the market. >> take a look at new york stock exchange

pretty good today. two to one to the upside much stronger rally on the indexes in the morning in general there's been a little bit of concern about the trend in the advances versus decliners that have rolled over from all time highs, if you want to find something to be bearish about. the number of stocks that are losing steam under the surface might be one thing i want to compare the s&p move to ten year treasury but actually have seen this track pretty well since july that's about when the ten year treasury went below 10%. you see today you have a tail wind of yields going up to october high at least on the ten year level >> we mentioned volumes. seeing lower volumes >> that's been the trend for a very long time and it's pronounced right now especially when you have a lot of people who feel uncertainty means hesitancy. >> if you take a look at the transports today outperforming i mean that's something -- >> transports right along that

cyclical move. transports, materials, energy getting a 1% pop for no real reason except for this general move in yields >> also point out clearly the yield move significant the dollar xy down half a percent. that's because of a 2% move higher in the british pound. nonetheless helpful sentiment. >> that's how the choreography works. >> two minutes left to go. we'll send it over to rick santelli he'll give us a check on the bonds. >> definitely a dhiemd in the fixed income markets globally. look at two day of tens. 1.66 looks like european rates are leading the charge hire. two day bunds. up nine basis points finally the dollar index you just mentioned it. indee softening a bit. the lowest close since 9 then 24, september 24th per that, three days up in the nasdaq but still down on the week >> yeah.

just freezing marktionally downtown the week though apple is higher for the week and within a few dollars of its all time highs putting in a new high for the year looks to close at the highest level for 2019 tinting thing is that the beginning of the year microsoft surpassed apple in market cap and was really the momentum mover here on the nasdaq now that has switched back as apple moves higher apple is at a new high had five times as many new lows as new highs on the nasdaq today including lyft which now is valued at about $11 billion. that's about half the valuation it had when it went public in march. >> rough day for a lot of ipos once again trade related cyclical names all rallied i call it the 2% club. a lot of these names move on headlines. dow chemical, for example, moved aggressively today you saw that up 2% that's a typical example energy stocks with oil up more than a dollar today that's a 2% move for oil

chevron up 1.3% exxon also on the upside i mentioned these deep industrial names what declined, of course, the more defensive names that we saw like con ed. there's the "closing bell" the dow jones industrials average closing off of the bells but still up nicely, 130 points. welcome to the close bell everyone i'm wilfred frost. >> i'm courtney regan. along with mike santoli. we are in the market zone. you can see the day's market action on the right side of your screen stories still coming up on the bottom of your screen. >> let's check in how we finished the dow was higher bio.6%. off the highs of the day but

nonetheless still a positive session. only one sector was lower, utilities, inflation trade play. financials and materials led the charge worth pointing out week to de we're still lower and week to date every sector is lower last couple of days were kind of broad rally in perspective >> some ground to make up. joining us to talk about the market is stephanie link she's still with us. and joining us now is the portfolio manager for needham growth fund. >> so i do think -- look safely say we came into the week without a lot priced in the way of grand success on the trade talks. any inkling there might be potential progress is filtering its way into the market. it's tentative this range trade has frustrated both sides bulls and bears. you're getting some decent

economic numbers coming through too and bond yields rising today pretty strongly. i think it's lending this idea that maybe that heavy recession trade got overdone in august and again this early this month, and maybe that's a reason why the market is supported. still in this upfriend from january or pretty significant uptrend from january nothing has changed in the overall structure of the market. they want this side lined for a while. >> if it is sidelined and we focus on earnings are you pessimistic or optimistic? >> i think the earnings season we're about to enter, expectations have been lowered earning season will be fine but i think we got to look what's the guidance i think ceos and cfos are reading the same headlines we're seeing i would probably think they will be a little bit cautious going into year end. what we're more excited about and looking towards is 2020. earnings can re-accurate next year during an election season so we think that's where you need be placing your bets.

earnings season gives us an tint to deploy a lot of capital >> i think others are also looking forward to hear more about the fundamentals of all these companies but still is it going to be enough to drown out what's happening in washington or what's not happening? >> look, as a long term active investor i think fundamentals are where you need to stay long term there's noise out there in d.c there's noise always geo politically. but for long term investors i think there will be some great opportunity to put money to work but you have to be a little more flexible we carry more cash in these times. take advantage when small caps kind of trade by appointment, you know, we really like to invest when we see the fat pitch. i think investors that are at home, institutional investors are as contuesdayed as they are at times be patient wait for that fat pitch. >> stephanie are you more optimistic this earnings season can be the catalyst? >> i think earnings expectations are solo at this point and i

don't think you're going to see an earnings version. we hear about that every single day. i don't see that happening i don't think you'll have great earning 5%, 6%, 7% but a low single digit is enough there are certain sectors you want to be involved in you want to be in housing and the consumer you can still pick cheap cyclical names because the expectations are low it's going the reactions that tell us a lot and listening to these conference calls and what these companies will say they will be conservative they should be conservative. >> stick with us let's get to kayla tausche for he some of the latest on the china trade talks. kayla. >> reporter: wilfred talks extended into late afternoon we've seen some principals peel. steven mnuchkin left the office a few minutes ago. he's been spear heheading the

negotiations the chamber of commerce in a press call earlier today with reporters said that both currency pact and potential licenses for haw way suppliers are expected to be centerpieces of any interim deal. president trump is the final decision maker we'll see how he feels about any potential interim the deal and the state of trade talks tomorrow when he says he'll meet with the vice premier himself. >> kayla, remind us what time things are meant the to happen tomorrow, when we're expecting the full delegation to leave >> reporter: well, we'll see we don't know the exact start time for tomorrow. usually that depends on how much work is left to be done. we know the president is leaving in the afternoon to go to joint base andrews to head to a rally in louisiana we expect that meeting could be sometime midday. we don't know when, if there are a few ts to cross and is to cross you could see officials

back here to hammer that if they finished today perhaps they will just sleep in. >> kayla, thanks so much for that as you said coming in to the week expectations western that high if we get an oval office smiling hand shake tomorrow is that not priced in? >> there would be relief trade off of that. i don't know how far it carries us in either direction we want to get past it could it be a crazy overnight session. i guarantee you, there will be reports characterizing what happened today last night we had a sell off on this report that the chinese delegation would leave early the point being, traders will chop this thing up every which way but it hasn't changed in terms of the net direction of the market earnings set up earlier very much like the past two quarters. very low expectations. most companies guidance mixed while april and july those two reporting months were good months for the market. now didn't take us up and away

because you pulled back afterwards but we have the makings for a relief trade even if we have to get oversold >> see what will happen. so many hours between now and tomorrow morning when the session opens. let's get to bob pisani for a look at the stocks in today's winner's circle. >> reporter: the 2% club, i call them the 2% the typically moving trade related names, in the news here take a look here dow chemical, for example, had a big day we saw caterpillar also with a big day moving nicely. these are all names that move on trade related headlines. we saw jpmorgan as yields started moving up and spem are speculating whether yields are at a bottom for the year, move up, goldman sachs also had a pretty good day. oil stocks as oil moved more than a dollar. 2% move for oil. 1% to 2% and oil makers we saw that with chevron and exxon.

the question is whether there's any kind of comprehensive deal most people feel that's very small here then the question is as mike said they chop it up and figure out can a truce get us through to christmas and that's what nobody is quite sure of at this point. guys, back to you. >> that's a good point i focus a lot on consumer and retail hour is this holiday season to make sure the consumer is strong enough to hold us through that's bumps. >> consumer super important. i think it will be just fine i look at job numbers and house. housing is reflecting higher if we get a detente in trade and economic data stays pretty good to mike's point it's been a little bit better than expected, rates arestarting to move higher oil has stabilized market likes it when oil goes up more that risk on feel all these things are positive. those are the encouraging signs that's why i still think you can pick away at fundamentals.

and let's get through the next couple of weeks of earnings. >> chris, where do you stand on the small caps >> i think that, you know, the small caps should begin to do better as re-accelerate. they need more growth. we've been cautious here, you know, in the last months of the summer and going into october. as we get close to the end of the year and earnings season the outlook will look better for that asset class high yield remains strong which is generally a good proxy. >> stephanie and chris we'll leave it right there thank you for joining us still ahead here on "closing bell" -- >> announcer: the retail industry is peaking out on tariffs. >> honest to god what is going on like another one way ticket on the "titanic". the grinch has stolen christmas from us. we don't know what else the there is to steal. >> reporter: off the break, rick helfenbein weighs in on the

patest trade developments and imct on american retail. close bell will be right back. plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants.

♪ ♪ ♪ ♪ ♪ >> big business is under fire as pressure mounts between hong kong and china apple's app store is removing a police track app apple ceo tim cook defending the decision to remove the app saying in part, quote, the app was being used maliciously to target individual officers for

violence and target individuals and businesses when no police were present activision stripped a gamer after tournament earnings after expressing support for the hong kong protests. >> nba is going through damage control with china after a pro hong kong protest tweet by one team's general manager sparked many chinese partners to cut ties with the league which nba stars have the biggest business connections to china. hi, there. >> reporter: many of the players they got their own direct relationships with chinese companies and chinese fans retired stars like shaq, kevin garnett, dwayne wade had signature shoe sponsorships from chinese shoe makers. now there's more than a dozen current nba players with endorsement deals from the three major shoe makers. klay thompson, krj mccold aluminum and rajon rondo are some of the names. klay thompson's ten year deal would be worth as much as $80

million. but even stars with u.s. companies shoe deals have serious chinese exposure kevin durant's manager said he sells more shoes in china than america. steph curry makes regular trips to china at least 30 nba players visit china each summer. it's no surprise then that nba players as a whole have been basically silent regarding the hong kong protests and the controversy with the chinese government back to you. >> thanks very much for that let's bring in rick helfenbein rick, gooded eto he see you. where do you stand do you think it will spread to some of the shoe manufacturers, the apparel manufacturers as well if they don't take a side either way >> you know it's hard enough to fight the tariffs here at home

the biggest emerging market for shoe guys is china want to sell into china. i think that's one of the thing that president trump had said early on, market access. so i hope this doesn't blow up into something worse than it is. you know, nba is in a really tough spot they can play basketball on both sides of the court at the same time it's very awkward. >> with the company saying like nike, have they complained that just the trade war itself was hurting, aside from sanls the u.s. and the rivers coming in with the costs here, were they playing sales in u.s. are struggling because of having a u.s. image and will this worsen things for them? >> the trade war environment in general has just made things difficult. we're suffering in the u.s. particularly on athletic shoes which september 1 we were hit with 15% remember we already were paying duty and then 15% on top of it it's a margin compression issue. if you want to talk about growth

markets, the u.s. has not been growing. china has been growing more than 20% for nike so it's a huge market. it's very important to them. it's very important to adidas. very important to sell into china. so this is really a tough spot >> if we can talk about where we are right now, rick, when it pertains to trade war and retailers. nobody wants their products to cost more. the consumer in the u.s. is strong we talked to a lot of different retail companies and ceos that are afraid it will weaken but so far haven't seen it weaken they seem to have done a pretty good job of mitigating the cost. are the fears overblown? >> the fears aren't overblown. the minute we were hit with the last round the 15% round which hit 91% of apparel on september 1, 53% of all footwear, everybody jumped on a plane, flew over to china and said what

can we do to get us through christmas. that's exactly what they did we will get through christmas. the consumer being strong is great. 4% a little more 4% up is good. last year at christmas the government was on furlough the stock market was in not a good place you remember the point is, you're against bad background, and you're showing some growth. we'll get through the christmas season we got next year to go what do we do? remember we buy six to nine months in advance. we're looking at spring and early fall of next year and we're at 15% what if it goes to 25% what if it goes to 30% we don't have a place to go. we're suffering in our own skin. >> there's a sense out there, we hear it a lot amongst many guests perhaps the administration is looking for an opportunity to dial back a little bit, to essentially not

put the next rounds in place or escalate further do you have any indication that might be the case? >> i think it's pretty clear that something positive may come out of the talks right now but, you know, if they hold back the 25% from going to 30%, that's $12 million it's not statistically significant. it's just a delay of what we fear is inevitable we need the whole thing to go away can this idea of tariffs it's bad it's not helping >> i get that more tariffs going incrementally on existing tariffs gets harder and there's only so many times you can accept that. last time you were on before the latest round of imposed you described it as a total disaster for american consumers and american businesses and american economy. it hasn't been that yet. there was some level of overexaggeration of the doom and gloom? did you miscalculate it. >> notice think my exact words were to you we're cooked

i stand by we're cooked. >> i do have the quote you did say we're cooked also said it would be a disaster for american consumer, american business and american economy. >> it's 100% true. just hasn't happened yet we've been able to push it out as long as your consumer stays strong, as long as they are still buying, as long as unemployment trails low consumer confidence is holding. when that drops everything is going to drop with it. and look at the retailers. we don't have the margin we don't have the margin we can't make money. we can make sales. what good are sales without money. >> even the fact it's been pushed out that's slightly better than was forecast >> gives us more time but to re-establish our supply chains we need three to five years. you're giving us three to five months doesn't work can't do it. we're still cooked >> we're going to have you back. we'll keep following along and see how far we're cooked rick helfenbein, thank you for being here

coming up next we'll break down the charts to see why history says the market may be about to break out in a year end rally. >> top ranked financial adviser explains how you can protect your portfolio amid trade war fears. we're back in a couple of minutes. but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets

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welcome back to close bell let's send it over to mike santoli for his final dashboard of the day >> is this the final one. tenth month of the year. >> we just made a decision. >> tenth month of the year is about one-third done let's see what happens on an average basis around this time of year in serterms of seasonal pattern. from 1950 s&p 500 if you averaged one year charts together it looks like this. i'll say we had a massive move up at close to 20% at the beginning of the year. the shape of this year looks very much like this but the magnitude is different around here is where we are. getting into late october tends to be the time if seasonal

forces matter and last year they didn't matter at all this is when you might get a head wind the turning into a tail wind after a typically choppy october i said last year we basically went immediately south had all these seasonal factors, election year. everything seemed to work in favor of the bulls being in charge for the fourth quarter. it didn't work my question is what are the chance these typical seasonal effects failed spectacularly two years in a row >> the other point, mike, is that in terms of typical year-to-date performance, albeit after a big sell off we're well ahead of the average year. >> exactly without a doubt the magnitude not telling you. it's much more about the cadence of the year and when you might see certain pullbacks. you're right we're up 16 p- 17% year-to-date, up as much as 20%. >> doesn't feel like an average year >> mike, thank you for the third

and penultimate. next where are the biggest growth opportunities >> plus find out if it's time to get defensive in this volatile market environment we're joined by a top nkraed financial adviser. the close bell will be right back

welcome back to the "closing bell". we have some news on walmart when it pertains to some

executive moves. john ferner is new president of walmart. he's currently with the company and runs sams club he's going air new zealand limited. he's been running walmart stores since august of 2014 and had a nice run under greg foreign's leadership he cleaned up the stores made sure employees had what they needed for their lives as far as benefits and tools in stores to better help customers. he's really done a lot for that company as he moves on to air new zealand limited and we have john furnorthwestern r moving over from sams club whose been look at shares ofor 25 years. walmart they had a nice run but steady as she goes for some time

now. >> so both you can say somebody has done a good job and it's not anything to worry about that they are leaving also that the company itself seems to have strategically been in the right place not as if one person will change the story. >> couldn't pass up the opportunity to leave an iconic brand back home. after hours essentially flat for walmart having traded higher in the session earlier today time for a cnbc news update with sue herera >> here's what's happening more on the two associates of rudy giuliani arrested on campaign finance violations. the the u.s. attorney for the southern district ever new york says ukrainians lev parnas and igor fruman were getting ready to leave the country >> they broke the law by gaining political influence by avoiding

disclosure where the money was coming from. they sought political influence not on through advance their own financial interests but to advance the political interests of at least one foreign official >> a powerful winter storm has moved into the great plains. bismarck, north dakota is one of the hardest hit areas. strong winds and double digit snowfalls are expecting. some are calling at it historic october winter storm simone biles has won another world championship gold medal. she took home first place in the all around competition by a record margin. she now has 22 all record championship medals. the most by any female gymnast in history congratulations to her >> reminds me of my typical gym session. >> she's so cool >> she is really cool. so is wilfred frost. >> i would break my neck

don't even talk. she's epic and incredible. sue, thank you as china trade talks heat up many companies are looking to navigate the potentially changing landscape prudential plc is one of the leading groups providing asia, united states and europe it accounted for half of prudential's earns and new business profit in that region outpaced ugg and europe. we'll discuss prudential plc with mike wells. very quickly for those people that don't know what's the difference compared to prudential financial here? >> quite a bit of difference our primary markets our business here is jackson national life which is an annuity retirement service. we started in the uk 170 years ago. have an asset manager there, and traditional very strong position in pensions in life there. we're in the process of diverging that from international businesses and i'm here on a u rug show meeting

with investors >> you're going to be half and half a little bit more to asia and u.s. let talk about the asia business first of all, because insurance doesn't often get seen as a high growth basis but in asia it is >> it is rates have been 15% in most markets in asia. no government support for retirement income or health. consumers self-insure by keeping money in cash. interesting way to do business usually you have government support and tail wind to privatize that risk. we're one of the largest players in the region. we're in 14 markets there. operating earnings up 14% in that business. first half of the year continues to grow year-on-year successfully direct impact on u.s. tensions very little effect on us i think you see in southeast asia, you know there's a

narrative emerging that i don't candidly agree with but pundits are saying some of those countries will have to choose relationships and they see a binary outcome in it i think there's some flaws in that logic tend to compare it to the the cold war and there wasn't a whole lot of trade between the test and west in the cold war. these countries both need each other. i think it's a poor comparison, but i meet a lot of leaders and policymakers who are worried about those tensions but more in southeast asia >> how about as it per takes with what's going on with brexit and the uk and how that affects the relationships with the rest of the european countries. >> i have the pleasure of being the start of brexit. interesting experience to be on the ground for it. when you get that sort of wide mandate in the populace, and marginal support, you're seeing this now in governments around the world. you're elected and responsible for delivering something and you

have 51% election mandate, it's a very difficult thing to execute on we've prepped our businesses for it our uk businesses have and are successful in raising money across europe. that's probably something we could have or should have done structurally anyway. but it was 30 million pounds and you get it done quickly and make sure you're ready for whatever shape it comes at this point i wouldn't try to predict even next week's news let alone the outcome. european friends have varying responses to it. some think it's an interesting thing. some think it's disloyal a lot of emotion around it >> jackson life you sell a lot of retirement products, annuities. are you seeing a structural shift away from annuities? similarly on the cyclical side with yields solo are they in fact getting a bit of a renaissance.

>> a bit of the latter you had uncertainty with the department of labor and sec what sales practice should look like in the u.s there's a little better line of sight now. if you had morgan stanley or material lynch they know what to do the advantage of the products as you can stay in equities longer and be in retirement that as a technical tail wind to it it's been an interesting year. a lot of capital changes most of that is behind the business and we're very well positioned for that. >> quickly want to snap back to the asia business. your sales are in hong kong. the protests always front and center have been for a number of months gives the image that things are grinding to a halt what is it like for financial firms. it's not business as usual because there are challenges there. are you still able to operate the vast majority of your

business >> we're one of the largest life insurers in cologne and we have a regional office there. the business we write there is for consumers is typically a savings product that they invest in every year and they can choose to have additional resources go to education, go to health if they want access to doctors, a variety it's almost a subscription type business from an investor point of view. given your sales don't affect the earnings particularly as so much of earnings come from existing relationships with clients. you are seeing tensions. it's more -- it doesn't change demand, locally. that business is growing significantly. it changes a bit of the comfort level people have in traveling so we get a short term we've been there since 1960s so we've seen other disruptions in hong kong political environment develops and it's true in other markets we're in around the world. so it tends to defer transactions, doesn't tend to

stop people from saving for their children's education or retirement >> mike thank you. >> my pleasure. >> now slack just out with some new user metrics >> reporter: it comes in a blog post slack updating its user growth saying it 12 million daily users. the post was titled not all daily users are equal. this is likely not a so subtle dig at microsoft which said in july that it's competing teams app had over 13 million users. last week slack's ceo told cnbc they are not comparing the same thing when they say daily active users. slack shares have been under pressure from that competition down 30% over the last three months still trading below it's direct listing price back to you. >> thank you for those new user numbers from slack black out outage up next we'll get the latest details

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welcome back we've got some after hours trade headlines which have moved the markets higher you can see that s&p 500 etf at 0.3% after the close some headlines crossing that president trump says he does not know -- that's the wrong one president trump saying that china trade talks went very well today. the talks will continue tomorrow, which is, i guess, the key thing relative, mike, to th after the close anopmism >> certainly the first marker of whether, in fact, today was somewhat constructive. we came into today, i mean little less than 24 hours ago these reports that the chinese delegation was going home after one day. clearly that's not the case. the market is primed to express a little bit of relief once this seems to be moving along, although i think only after you get some kind of progress will you see if that's really what's holding back the market.

>> they didn't pack up and leave and starting some more talks tomorrow shares of utility pg&e plunging after an unfavorable ruling millions in california are without electricity after pg and e start a second day of rolling blackouts. >> reporter: i want to bring you the latest stats 137,000 customers with restored power. 600,000 customers without power. 34 of 58 counties in the state are impacted this is big and it's broad in territorial of the economic impact you could be seeing as much as $2.5 billion now we're here in berkeley, california, berkeley hills specifically i did talk to one resident here today. he had his power cut off he stock up on provisions and he interestingly was not upset with pg and e he said in his believe they were doing what they needed to do to

keep people safe there are some powerful politicians out here who do appear very upset with pg and e including the governor the governor speak of pg and e they were in bankruptcy because of their terrible management going back decades they created these conditions. guys, back to you. >> josh, thank you very much still to come a top rated financial advice ortells us whether investors need to get more cautious on this volatile market >> plus amid growing fears about a globaldo a looking to see what action the fed will take at its act meeting. blackrock told cnbc how he expects the the fed to act >> i think there's more to come. you got another 25 market is pricing it generally right. you get another 25 this year and another 50 next year i think one of the things i think is important that people don't talk about which you alluded to the balance sheet is incredibly important

when the fed drops the balance sheet from 4.4 trillion to 4.7 trillion and think about what happened last year this incredible fx reserve circulation that took place, fed needs to let the balance sheet grow opposite for more investment ideased from the biggest names in business visit deliveringalpha.com. ♪

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cnbc unveiling the inaugural financial adviser 100 list today. it represent as combined 3.3 trillion dollars in asset under management they were ranked using a proprietary methodology developed by cnbc. key criteria included total years in business, average account size coming in at number seven, on this year's list is california financial advisors the firm's principal joins us now. michele, thank you so much for being here with us we spent the majority of our show talking about how to play this market when you're in the mid of uncertainty because of the trade war. when you talk to your client what do you tell them about how to position their portfolios >> reporter: well thank you for having me. and before i forget shout out to

sara and her new bundle of joy with my clients right now in our firm we've been heavily focused, obviously, on getting them ready for a more defensive stance. so we've been rotating all profits out of equities and into our fixed income defensive barrier, getting ready for worse case scenario. could we head into a recession obviously there's a lot of talks surrounding that some days it's yes some days it's no but we're planning as we're going into one. >> arbitrarily taking all pro t profits from sextors that you have decided overrun themselves? >> we've been pretty diligent rebalancing often. we've definitely pruned those areas that have been hefty we've seen a lot of profit in large cap/small cap sector we had great profit in the reits.

we downgraded those, our defensive bar certificate our fixed income safe side of our portfolio we're putting that into t bills, money market and high quality bond funds >> you obviously speak to your clients very often how would you gauge their level of fear and bearishness and what's their number one concern? >> yes so i think the number one concern that's brought at up in most reviews are we heading in to a recession or aren't we. many of us are questioning that. so we continue to plan accordingly as if we are heading in to a recession or definitely a slowing economy. we're seeing both domestic and global slowing so what do you do if you're heading in to a recession? we definitely are trying to mitigate risk. we're trying to increase cash reserves taking profits right now so getting people prepared, if you're heading in to a version are you ready? that's what all investors should be asking the themselves right

now. >> if we're not heading into a recession, what happens on the missed opportunity for your clients? >> well, the good news is we definitely are still holding a sizable amount in equities so portfolios are defensively positioned but we're not completely getting out of equities we're being smart. we're long term investors. really making sure we're resetting expectations with clients. moving forward we're not going to see the same returns in the next five years that we have the last five years. so ensuring that they one equities will not look, feel the same they did nor will the bond side of the portfolio. we're still holding in equities that we're not missing any of these great runs we've seen but they are going to be protected during any serious corrections or when that black swan comes. >> michele, thanks for joining us >> thank you so much for having me >> number seven in the cnbc f

a100 check out the whole list, cnbc.com/fa-100. up next mike santoli the takes a closer looatk a key piece of data that's out this morning and why it could change the fed's calculations woman: what does the word "partner" really mean? someone i can trust. (impact, click) who is with me for the long-term. who understands i'm dealing with lives, not only livelihoods. that in order to help people, i need more than products, i need quality support and insights. can i find someone who partners with me to achieve people's long-term success? with capital group, i can. talk to your advisor or consultant for investment risks and information. carl, i appreciate the invite here. as my broker, what am i paying you to manage my money? it's racquetball time. (thumps) ugh! carl, does your firm offer a satisfaction guarantee?

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calculations welcome back to a reminder how we finished on wall street up 150 on the dow. 0.6% all sectors other than utilities led higher by energy president trump made comments moments ago. >> negotiation china doing well. we have another one tomorrow i'm meeting with the vice premier at the white house and i think it's going really well i will say i think it's going really well. we had a very very good negotiation with china they'll be speaking a bit later. but they're basically wrapping up and we're going to see them tomorrow right here. and it's going very well >> mr. president, sir, mr. president, sir, what

conversations -- >> biden -- >> what happened -- who took 900,000? [ inaudible question ] >> i hope it's not true, that joe biden took 900,000 i haven't heard that i hope it's not true >> for the sake of the country, i hope that's not true but i don't know anything about it >> mr. president, sir, mr. president. >> what? who? i don't know but i know the whistle-blower has been very inaccurate because when we released the transcript of the conversation that i had with the president of ukraine, who frankly today was very good swb somewhere? ukraine i guess gave a news conference on unrelated things was asked a question and he said president trump behaved in a perfectly fine manner.

there was nothing wrong in any way shape or form with, something to that effect i appreciate that. but the the president of ukraine should be case over. because the president of the ukraine said that call was fine. is he assemble lk very much as he remembered it, it was just like the transcript. now the transcript is the a perfect transcript there shouldn't be further questions. but the president of ukraine just made that tatement. so that's good >> mr. president, sir, what conversations have you had are lev parns a and igor frumen. >> i don't know the gentleman. it's possible i have a picture with them bus i have a picture with everybody i have a picture with everybody here but somebody said there may abpicture or something we're at a fund raiser or somewhere but i have pictures with everybody. >> have you talked with them >> i don't noept if there is anybody. i don't know them. i don't know about them. i i don't know what they do.

but i don't know maybe they were clients of rudy. you'd have to ask rudy i don't know. >> as far as it comes to syria, sir. >> no. [ inaudible question ] >> well, yoend how you can impeach on a conversation with the president of a country -- in this case, ukraine, which was a perfect conversation where the president of ukraine just said there was no pressure put on him whatsoever, that we had an absolutely perfect conversation then on top of that -- and maybe less importantly frankly -- but on top of that we have a transcript of the conversation, fortunately that's perfect and i do think this. i think it's very unfair to heads of countrieswhen they think every time they make a conversation or have a conversation with the president of the united states it's going to be on -- you know all over the world. i think that's very unfair but in the case -- in the case

of what we're talking about, we released a perfect conversation. the president of ukraine just confirmed that and that should be case over i will say this. adam schiff took that conversation before he saw it and fabricated a conversation. to me that's criminal. what he did was criminal. >> mr. president, on joe biden, sir -- [ inaudible question ] >> i just don't think you're running a country -- i just don't think -- >> president trump speaking just there. let's get to eamon, liu hurd leaching the meeting president trump said the talks went well and they would continue tomorrow and continue at the white house a big change from shortly after the market closed yesterday when

it was expected the chinese delegation could leave tonight that hasn't happened we had a strong market performance on thin volume eamon javers joins us at the white house with ski take aways. >> we're lts reduced at looking at the body language of the negotiators coming in and out of the rooms. looking happy, seem like they are getting a deal the president saying things are going well saying he thinks they are all all but wrapped up at this point and going heed with the meeting tomorrow in the oval office. presumably more information there. saying negotiators basically finished the work today. and he will meet with the vice premier tomorrow well we'll see as the president like to say what happens tomorrow positive mood music from the president today and people around him but not a lot of specifics from the president of the united states. >> but eamon as of course kayla has been reporting throughout the day we wouldn't be having a meeting in the white house in

the oval office with cameras presumably in there as well unless there was a positive tone expected from that. >> that's absolutely right they wouldn't set the people up -- the principles up for failure like that. the fact that that meeting is still scheduled to be going on, the president is talking about it that's a positive sign for those who want a deal. you know, that can change. schedules can change in a moment's notice. but the president says right now that meeting is on if you look for a positive outcome of some kind here that's a good sign. >> eem within, thanks for that. >> you bet. >> mike, final thoughts on the market if it stays -- the only headline overnight on trade should have a positive impact. >> very consistent pattern during the year plus has been when it seems like the administration is taking a softer line and looking for excuse to get it progress or a deal done, the market likes it i think if we are after one day knowing how the chinese delegation supposedly was narrowing the focus, if that's enough to forestall further threats appear tariffs the

market would like that in the near term and be a relief move after that move then who knows. >> we had a small movement in futures upon the one headline. >> yes. >> that things went well today and they continue tomorrow didn't leave for good. >> reminder we finished the day higher 0.6% high higher. s&p appear nasdaq off the highs that does it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square, this is annapolis. i'm melissa lye. traders are dan nathan, brian kelly. kaern fiern many tonight pot stocks up in smoke we find out the cannabis crunch plus a kroibt double play. the two headlines getting the attention of bitcoin bulls later basketba backlash, the outlash against the nba in china. we get inclusive reaction from jamaul mash rn trade talks with china wrapping up moments ago

and we just heard from president trump. let's get to kayla tausche in dr. konzen with the late