welcome to the cloeg"closing bell," everyone. i'm hearing at boeing post today. that stock is down 4% following yesterday's 7% slide 6% gains for the s&p 500 with 59 minutes left to trade. >> i'm courtney reagan in for sara eisen let's look at what's driving the close today. brexit opposition. we've got trade optimism china's vice premier claiming substantial progress and president trump saying they're on target. and treasury yields are moving higher today with spreads widening joining us for the hour today is

barbara duran from bd-8 capital markets. thank you for joining us today we've got a lot of forces at play again another kind of side waist market, but some risk appetite if you look at what's moving higher today >> i agree with that i think that the action has been very constructive. and i think what's going on is you've seen the earnings expectations come down you had just a little sample last week, but majority of companies beat earnings and the most important thing, i think, was jpmorgan and american express talking about the strength of the consumer in loans and spending and that's really the underpinning to the economy. and so we also know the fed, they have a meeting coming up. i'm not expecting them to cut rates, but they have made it clear they stand ready and i think that forms an underpinning for the market. and not to mention china we have a little truce there >> i think we were all expecting some more down babeat commentar from what we've heard so far but so far, it's been okay maybe restrained, but not so negative from the executive ss. >> exactly things a little bit lower. but that's what people are waiting to see, what do they say

about the consumer it's encouraging >> by the way today, you take boeing's negative effect out of the dow and all the major indices healthily higher coming up, by the way, an interview with secretary of state mike pompeo. he'll weigh in on energy, syria, ukraine, china, and much more. that is about five to ten minutes away don't want to miss that. but for now, we're going to focus in on the big stories we're watching today phil lebeau has the latest on boeing, as wilf was just discussing mike santoli has his market dashboard. meg terrell is covering the opioid settlements for us in ohio phil, we'll go ahead and start with you today >> courtney, a lot of analyst downgrades i know mike will be talking about that in just a little bit. but here's where things stand with boeing today. the board is meeting in san antonio, texas day two of a meeting not sure if we're going to get any announcements at the end of the day. meanwhile, over the weekend, there was a release from a congressional committee of a 2016 boeing employee survey, where a sizable number of those

who were surveyed said they felt pressure in terms of moving the certification process forward, when it comes to the 737 max, which gets right to the heart of the questions about the culture of safety or whether safety is emphasized at boeing and finally, the big question today, will the return of the max be delayed just for a point of reference, boeing is maintaining its guidance that it expects to have a return to service, at least one regulator signing off on it being safe to fly, but the fourth quarter but the three u.s. airlines that fly the max,they're not expecting it back until early next year. also today, boeing ceo dennis muilenburg putting out an employee email, essentially saying, they are making steady progress on the return to service for the 737 max. guys, that is the same message we have heard from him for several weeks. so not a whole lot of news in that employee email from dennis muilenbur muilenburg >> phil, clearly this extra reported information that boeing may have been aware of back in 2016 is not helpful for their cause. is it particularly damaging,

given that there were two crashes? it's not like one appeared somewhat out of the blue when you have this early information and a first crash, does it not raise significant questions why the plane was not ground before the second crash >> well, certainly, those questions are swirling around, wilf there's no doubt about that. especially given the information that came out on friday. i think the important thing to keep in mind here is that this information, which came out on friday, the biggest impact may be what it does to the mind-set at the federal aviation administration, because they just found out about it this week when boeing shared it with the department of justice back in february now boeing will maintain, look, the reason that we share stuff with the department of justice is because there's an ongoing criminal investigation and we don't want to do anything that might hurt that investigation when they're looking at other entities here in the united states so as a result, boeing believes that they are doing the right thing by only getting with the doj. but you have to wonder if the faa, which already feels they

went out there on a limb, sticking by the max while the rest of the world grounded it. and now they are feeling like, well, look, you're not giving us all the information we need as we're investigating this >> phil, as always thank you very much. >> you bet >> let's get over to mike santoli for today's market dashboard, which involves boeing >> it does, wilf as a matter of fact, that's the first one. normal turbulence? is that what investors are analysts of boeing are experiencing right now or something worse? take a look at that. and clearing customs overseas markets looking like a little bit more of an attractive destination based on the markets action initial descent. we'll look at beyond meat in the context of other boom/bust ipos in recent years. and hard to spread out, what are corporate debt spreads saying about the macro backdrop first, the analysis consensus setup on boeing. first of all, in january, you had 20 of 24 analysts with buy ratings. this was one of the most high-conviction large stocks out there.

obviously, orange is the actual stock price, surging towards target price, once you got to march, that was the crash news hit at that point. what i do want to point out right now, you're at about 50/50. you have about half the analysts still are rating it a buy, half not. the price target, though is still on a consensus basis of 417, still implies more than 25, 30% upside for the stock right now. that suggests there's still room for sites to start getting lowered and basically people to lose their nerve a little bit more before you can say the stock is truly washed out. now, on a valuation basis, what's happened here is obviously, the stock rushed to huge valuation premium, multi-year highs in valuations the high 20s, forward multiple in terms of p\e. now what we are, we're down to basically the five-year average. still a premium to the market, right? so 1.1 times the s&p's forward multiple so that suggests that you build up this huge premium, you're giving it back, but it's not yet gone to a level where people are

applying much of a discount just yet, basing a lot of faith in that long-term order book and free cash flow still in place. >> that's an interesting valuation with all of that, with the valuation still fitting at the five-year average. thank you, mike. we have some breaking news on opioid settlements let's get right out to meg terrelln oh in ohio with the lat >> the news is coming fast and furious on these opioid settlements today. the most recent, of course, is about teva pharmaceuticals that stock had jumped earlier this afternoon on a statement from the company that seemed like they had reached not just a settlement here in cleveland to avoid going to trial in the first federal trial, but potentially a broader, more global settlement with states and municipalities around the country. however, ref reached out to the co-lead plaintiff's attorneys representing the state's municipalities involved in this federal trial and they say they are not onboard with this framework that teva has put out there. teva says this includes about

$23 billion worth of donated drugs to treat opioid addiction over ten years it also says it in connection with up to $250 million in cash over ten years no admission of liability. they say they've reached this framework with the four state attorneys general that are leading the negotiations they say there are potentially other defendants involved. we are continuing to dig on this zpi and find out more. meanwhile, the first federal trial was supposed to start here in cleveland involving multiple defendants they reached a settlement this morning minutes before the trial started, including the three big drug distributors, agreeing to pay $215 million to avoid that trial. however, guys, there are thousands more cases still out there. and people are trying to work towards a broader global settlement we'll bring you anymore news back over to you >> to that point, meg, what was agreed to this morning pre-trial. what portion is that roughly of the potential payments that these drug companies are going to have to make? or is what's still completely

out there that they have to pay? >> these are a few counties out of thousands and so the three distributorers agreed to pay $215 million in cash to these two ohio counties. they have they have 1.5 million people in them or a little bit more. as for the entire country, these three distributors had put $18 billion on the table however, we were told by attorneys this morning they were going to pay that over 18 years and a $11 billion a year, according to them, was just too slow to try to help with the crisis >> meg, thank you so much. i know you're following a lot of developments and they continue to change throughout the day in ohio meg terrell for us let's turn now to the latest on brexit. wilfred is following that. what a weekend we had, wilfred >> we did, indeed. but the uk pound is importantly holding most of its huge gains of the last couple of weeks,

despite parliamentary proceedings on saturday and today, going against prime minister boris johnson the market holding the circa 5% of gains for the currency since the start of the month, suggesting the prime minister still has got a good chance to get his deal passed, despite ongoing opposition from many in parliament the market is either saying that or that a general election could follow that he might win on the basis of his deal. either way, the pound higher today than it was a month ago, because the chance of no deal has been reduced certainly of a no deal on the 31st of october after the prime minister had to request an extension to the deadline from the eu this weekend. something he did begrudgingly and somewhat cryptically, but nonetheless, did put that request in and the pound crossing over 130 in today's session, holding most of those gains. >> it seems like on friday, we got a nice bounce with the hopes that perhaps we were getting some kind of deal. but less reaction today than you would expect >> to the downside, do you mean? >> or either way, really it feels like we're not really

reacting much? >> i think given that we're up 5% over the prior couple of weeks, given that boris johnson didn't cement the optimism and get the deal over the line on saturday, you could have seen quite a big pullback the surprise today is that the market is still saying despite all of these challenges he's facing in parliament, we're happy to take the pricing risk of no deal probably still off the table. that's why the pound's at 130, not at 120 >> got it. thank you very much, wilf. >> of course still to come after the break, one on one with secretary of state mike pompeo. his thoughts on the turkish incursion into syria america's oil interests in the middle east and the infamous trump/ukraine call that's coming up, next plus, it's among the busiest weeks of earnings season and industrial names are taking center stage we'll preview the key things you'll want to watch from that at a stoerecr. th'shead on the "closing bell." each day our planet awakens with signs of opportunity.

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earlier today, i sat down for a wide-ranging interview with secretary of state mike pompeo covering turkey's incursion into syria, the

negotiated cease-fire, the infamous ukraine phone call, and relations with china here i began by asking him about america's increasing energy independence and whether that's changed america's commitment to the carter doctrine that the u.s. would use its military to defend its interests in the middle east when needed. here's what he said. >> no, it doesn't change that doctrine at all. but our interests are different today. there's no doubt about the fact that our dependence on products is different than it was back in the 1980s. that's a fact. in fact, it's also the case that asia is much more dependent on this region than the united states is, for its primary energy consumption needs but america's interest in the middle east remain our mission still remains there. we've just got an alteration in the nature of american interests in the region. >> you were very critical of

president obama's drawing of a red line in syria and failing to then enforce it. in cairo, in january, you were setting out your middle east agenda in a speech, and you proudly contrasted that by saying, quote, the trump administration did not stand idly by when bashar al assad used chemical weapons against his people you went on to say, quote, our words mean something again, as they should. west point taught me a basic code of integrity. if we commit american prestige to an action, our allies depend on us to follow through. how, mr. secretary, is letting turkey seize the land of an ally not a major contradiction of all the promises you made personally in that speech in january this year in front of your middle eastern allies in cairo? >> oh, yeah, it's fundamental lip different. turkey didn't -- the country that turkey invaded, that conducted an incursion into is syria. a sovereign nation

we worked with kurdish friends, the sdf up and down the euphrates river. we took down the threat of the calipha caliphate. it was indeed to the benefit of the world. the commitment that we made to work alongside them, we completely fulfilled we continue to fulfill even as we sit here today, to fulfill our commitment to counter isis, not only there in northeast syria, but in western iraq, in the philippines, in western africa, all around the world. this nation has fully lived up to the commitments that president trump and i have made to challenge radical islamic extremism wherever we find it. and we entered into the discussions with turkey after they decided to make this incursion against president trump's wishes, and then with a clear aim to reduce the risk to the very people that you suggested that we somehow abandoned. >> so the fact that the kurds,

who unquestionably have been an ally, but the fact that they are not a sovereign nation means that they can be sacrificed, essentially, in this way, or at least their land certainly has been sacrificed and certainly tens of their lives, probably hundreds of their lives have been sacrificed? >> the work that we did was very clearly aimed at exactly the opposite of that indeed, i am highly confident that we saved lives. the work that vice president pence and the state department team did to convince turkish government to stop their movement, to cease this incursion. i'm fully convinced that that work saved lives not only the lives of the sdf fighters, but the ethnic majorities in the region, if you look at the statement that was agreed to, our allies see it the same way we had real commitments to protect ethnic majorities throughout the region, in the course of negotiating that statement. i think the work that we did saved lives. >> so the cease-fire may well do

that, and we all pray and hope that it does, but nonetheless, as you just said, as you said clearly as well last week in an interview, that president trump explicitly told president erdogan not to do this in that phone call nonetheless, he went ahead and did it and lives have been lost as a result. the punishment is economic sanctions that have last, who, five, ten days what would warrant now a military response from the u.s., bearing in mind, of course, we've seen a state-in-state attack by iran on saudi arabia as well? >> look, i never get out in front of the president's decision on whether to take the awesome interest of using america's military might to protection american interests. we've done it before we took strikes into syria when chemical weapons were used, we did it to uphold the fundamental norm that chemical weapons can't be used. the previous administration refused to enforce this basic,

decent human rights norm we did it. and the world should know that we will continue to do it. where we see american interests at stake or fundamental norms that need to be enforced, we'll use all the powers that we have. you suggested the powers that we've used we'll certainly use them and our diplomatic powers as well those are our preference we prefer peace to war but in the event that kinetic action or military action is needed you should know that president trump is fully prepared to undertake that action. >> turkey is, of course, a nato member they get lots of extra shared intelligence because of that there is also around 40 or 50 nato u.s. nuclear weapons housed in turkey. how much do you trust president erdogan, personally? >> you know, i never talk about trust. i always talk about making sure that we work closely, that we use our diplomatic skills. that we verify everything. you should know, we have a number of nato partners that do things that aren't consistent

with what america wishes we would do we are partners in a nato alliance it doesn't mean we always agree. look, you've seen nato partners take a very different approach on the jcpoa, the iran nuclear deal we think it's terrible three of our closest friends chose a different path it doesn't mean that you break off a relationship or tear everything up. you work, you use diplomacy, you use the skills that you have you'll use american power to try to get the outcomes that are in america's best interests while working with these important allies in all the other spheres where you have real, true, important, overlapping interests. >> mr. secretary, you were on the infamous 25th of july call between president trumps and zelensky you are on record of saying that you felt that callwas, quote, wholly appropriate if it is appropriate, have you therefore floated the idea of investigating joe biden to your counterparts, as well? whether in ukraine or elsewhere? >> look, i was on the call i'm on lots of calls with the

president of the united states i know precisely what it was we were working on in ukraine we were trying to reduce corruption we were very focused on making sure that we provided the defendidefend i defensive weapons system that they needed to defend themselves those are the things i've been focused on those are what i've spoken to. my new counterpart, the new counterpart in ukraine about that's what we'll continue to be focused on i'm continued with the work we've done and what the government of ukraine is trying to accomplish and we hope that together we can be successful. >> you mentioned you've been on lots of calls with the president. you also said in an interview on pbs on the 9th of october, quote, countries all around the world every day call me to try to get america to behave in the best way that's in the interest of their country they try to apply pressure to me so, was the trump/zelensky call that you heard and the others you heard in fact, the norm, and not the exception, and that

people should just accept that and get used to that's what diplomacy is like today? >> as recently as yesterday, i had a foreign leader call me, seeking to apply pressure to the united states to get us to act in a way that was consistent with what they were trying to do it's the nature of politics, of power, of foreign interactions each country trying to act to deliver for its own people that's what sovereign leaders are hired to do, brought onboard to do. we do that with our friends, we do it with those that are less friendly to us we work to achieve aims. it's often the case that these aims overlap where it is, we hold hands and work together and where it's not, we find a path forward that the in the interests of the american people. that's what president trump has consistently done. >> and if it's the norm these days -- >> it's not just these days. it's not just these days you can go back thousands of years and see nation states trying to interact, forming

compacts, treaties, agreements, handshakes working together to achieve each nation's best interests. sometimes that means onecountr will have to give a little more or a little bit less this is the nation ure of natio state interactions it's pretty fundamental. >> that was mike pompeo speaking to me earlier. his comments on china still to come in the second hour of the show i wonder whether there are some allies in the region, even sovereign allies that do look at that and get a little concerned when comments like are saying, but our interests are different today. there's no doubt about that. and talking about the less reliance on petroleum products out of the region. >> i think there are a lot of allies around the world that are wondering what this means. this is not the only time we have confounded expectations of how america should act with its allies i think this is another piece of that where people re-evaluate

what they are to do long-term. i don't think it has implications for us in the market, but i think it bears watching over the long-term how the balance of power shifts. who knows how this plays out for now, not immediate consequences for us as investors. >> i was going to say. this is a time of an unprecedented way that politics have been done in this country and if you look at all of these different policies and foreign policies in particular have often is big role in trade and economic policy and everything in a way we haven't had to connect to the markets before. >> i agree typically what goes on in washington doesn't impact the markets that much. even when president bush, number one president bush, went into kuwait, we had a huge reaction in the market, but it came back immediately. quickly the market saw, this is not going to affect basic economics. but now you have a president that will use trade tariffs in a way that it really impacts us. you've had a presidency that's under a lot of pressure right

now. it's not just the ukraine investigation and impeachment proceedings that may happen, but really syria where leaders of his own party have spoken out against him, for the first time, really and so that's -- this uncertainty is, the question is, does this make him more likely to pull in the reins on china, to be tougher or go easier what is he likely to do now. anything can happen. >> a lot of ripple effects great job on that interview. looking forward to the rest of it later in the show after the break, shares of peloton going downhill today, despite a slew of bullish analysts' initiations. we'll get the word on the street on those new calls, coming up next later, boeing feeling the heat again today we'll discuss how much worse it could get for the company and we'll speak with one analyst who t stock is still a buy. we're back in a couple of minutes is the monolithic view of emerging markets obsolete? at pgim, we see alpha in the trends driving specific sectors of outperformance.

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welcome pack to "closing bell." peloton with an outperform spore buy rating jpmorgan says it sees a large addressable market, as well as peloton's vertically integrated platform being a key competitive advantage. despite the bullish outlook, the firm's price target were at or just slightly above peloton's original ipo price of 29 the stock is down 22% since its ipo on september 26th.

it's down 5% today >> well, deutsche bank downgrading ebay the firm citing anemic growth and its failed search for a new ceo for the downgrade. and rbc capital markets upgrading pinterest to outperform from sector perform the firm citing its recent lockup expiration as a catalyst for the stock as well as strong user trends and evidence of innovation in its ads platform for the upgrade. shares of pinterest are higher by 5%. what do you make of a company like pinterest it's sort of a marketing tool, sort of social media, some commerce how do you play that one >> it's interesting. you know, first off, i worry a little bit, more than a little bit about collections, which is instagram's competing product that will be coming in however, this is a huge market it's really a kind of bulletin board where you go on and look for something you like, you're usually looking on because you want to do something, you want to buy pinterest has 250 million users

a month. so they have a major opportunity here to monetize that. and they're just beginning to advertise that this is a big market some estimatesi've seen that this is a $500 million market, because it's kind of a unique kind of effort >> i was just going to yoond adn peloton, seeing so many of these companies with the ipo unsurprising to see them come out with buys. the fact that so must have of the price targets that near that $25 ipo price is why the stock is down, because you would expect these banks to be well below the ipo price with their buy target albeit from different parts of the banks. it goes back to that interest. peloton down 5% today. we've got just under half an hour left of trade and we're higher by 59 points on the dow, but more than that. 0.7% on the s&p, because boeing is not part of the s&p 500 in the same way it is as the dow.

here are the key things driving the action trade action, president trump saying they're on target boris johnson facing opposition in parliament to get the brexit plan he negotiated with the eu approved and treasury yields are moving higher today with spreads widening it's now time for a cnbc news update for sue herrera. good afternoon, sue. >> good afternoon, courtney. good afternoon, everyone here's what's happening at this hour fidel ty investments has dropped fisher investments as a money manager. the latest in a series of withdrawals from the firm over sexist comments made by its leader, kenneth fisher fisher had managed $500 million in the $8 billion fidelity strategic advisers small mid-cap fund fisher's firm has lost nearly $2 billion in investment funds. protesters attempted to block roads in a suburban district of hong kong as police tried to disperse them with

fiery tear gas, angering the local residents. the sit-in follows an unauthorized rally a day earlier, in which 68 people were arrested thousands of people in beirut say they want to continue their protests against the government, despite sweeping new reforms announced by the prime minister this amid a tense skepticism that those reforms are actually serious. and new poll by marquette university law school says nearly two-thirds of respondents say supreme court justices base their decisions on the law rather than politics the survey found that 71% also favored fixed terms for justices, but 56% opposed increasing the number of justices on the court. you are up to date that's the news update this hour i'll send it back to you let's get over to mike for the second installment of the market dashboard >> hi, mike. >> clearing customs. going to take a little bit of a trip overseas. look at the non-u.s. markets part of this whole rotation

we've seen towards more risk-on sector cyclicals, financials, small caps also non-u.s. stocks you have the u.s. dollar off 2% of its highs here's month to date, the ex-u.s. or everything outside the united states, against the s&p 500. it's been kind of one way. by the way, this means it's essentially doubled the gain of the s&p month-to-date. it's up about 1% this index is up over 2% however, let's pull it back a little bit and look at the same relationship over two years. this is the msci ex-u.s. divided by the s&p 500 you can see what's happened here, it's really kind of curled up from a pretty pronounced downtrend. a lot of people are saying this could be very consequential here, that we have this little turn higher. but, of course, i would point out, we saw something similar about a year ago in the context, though, of declining u.s. markets, not in rallying ones. so i think this is something to keep an eye on it's something probably bullish investors into year end would like to see happen more, not because you don't want the u.s.

to do well, but it seems if it's all part of that risk-seeking trade that a lot of folks might want wanting to see happen, guys >> mike, thank you very much we'll see you again a little bit later. after the break, when it comes to new media stocks, is it better to avoid the f.a.a.n.g.s? we've got a deep dive on the smaller names in the space that are beating their mega-cap peers. as we head to break, here's a quick check on bonds the u.s. treasury bond yields are ticking higher today the ten-year yields hitting just under 1.8% you got a check there on the two, the five, and the 30 year at 2.286 "closing bell" will be right back

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trade. social media stocks may be dominating the headlines, but it may not be the best place to be investing. dom chu is back with us. >> if you take a look at those megacap communications services, aka, social media or new media companies, they have been outperformers so far this year

one of the best-performing sectors in year. but if ewe take a look at some of the stocks that could be characterized as new media, social media, old-world media stocks that are not necessarily focused on as much because they're not in the s&p 500, you can find so the more outperformers. take a look at these names we talk about them, but maybe not as much because they are not s&p 500. snap ink up 164% so far this year altice, up 78% zynga, a game company, up 60%. and "the new york times" from a news publication standpoint up 33% as well. so when it comes, courtney, to what's happening with these companies, take a look at the ones that maybe aren't necessarily in the s&p 500 back over to you >> i had not known that snap ink was up 164 year-to-date. dom, thank you we have some breaking news on wework we need to turn to. da david faber has those details.

>> this afternoon, we can tell you that softbank and we work are kvery close to a deal, whic could be announced tomorrow. softbank could take corrntrol of wework with a new equity infusion of $4 billion to $5 billion. most of it, new equity, though some of it being reserved for the possibility of some selling shareholders this would, though, give softbank control of wework it is, of course, a space-sharing company that has been, well, to put it mildly, in the spotlight for some time, when it was unable to reach an ipo some time back, after many investors balked at so many of the things they learned in the s1 management has since changed adam newman stepping down as the company's ceo. but since then, the need to raise new capital has been pa

paramount at the company and they have been talking to jpmorgan, but largely about a debt financing and really, when you have a debt problem already, more debt isn't necessarily the answer what conceivably would be and give them more time is a large equity infusion. it does appear they're ver close, though not yet finalized on reaching that deal with softbank to be clear, it would be softbank itself that makes this new investment, not the vision fund, which has already invested some 10 to 10.5 billion in wework, at far higher valuations in fact, to put this in some perspective, the new deal being contemplated would value wework at between 7.5 and $8 billion, roughly, and again, people close to these talks are not giving the absolute specifics and some of it does depend on the final deal 4 billion to $5 billion in equity, most of it being infused as new equity. but some also coming in the form of secondary or shares being sold by selling shareholders to

softbank as well can tell you, the expectation is that marcella claire, somebody we know fairly well, of course, the former ceo of sprint, who's very senior at softbank, would take a leading role, at least, in the interim in terms of the management at the company. adam newman's stake, i am told, by people familiar with the talks, would fall to the low double digits in terms of percentage and again, all of his voting control and everything would go away given that softbank would have control of the company at this point. it could be as soon as tomorrow. we'll see. there have been a lot of stops and starts along the way i am told that mr. massa and mr. newman is somewhat repaired their relationship if you recall, they were, of course, very, very close, or mr. massa was at least a huge supporter of mr. neumann's for quite some period of time, but

they hit some significan turbulence when wework itself did over the last couple of months but i am told that they are at least working together again unclear what role if any mr. newmann would have on a day-to-day basis, but certainly as the founder and ceo of the company, his input might be helpfhelp ful when softbank takes control, again, if and when they take control. it does appear likely they would own between 60 and 70%, courtney, i'm told, of wework, when and if this deal is completed. it seems highly likely according to people familiar with the situation, though as you well know, we wait until we see the press conference to see something is done. >> sure. david, fascinating details there, and particularly, the valuation, $7 to $8 billion, single-digit billions, just a far cry from the 47 that supposedly the last private round was done at. my first question for you is whether we know at all whether

the likes of jpmorgan or goldman sachs or any of the big investment banks that have been so involved with this company, whether they've taken a little bit of a hit or made any concessions to softbank and wework in order to help the deal get over the line? because otherwise, it does feel like softbank very much is stepping up to the plate and taking the next level of risk once again, something that will be beneficial to jpmorgan, if they're not having to be the ones to do it. do we know if they've been involved in making some concessions, excuse me, to get this over the line >> yeah, you know, wilfred, i don't know about concessions i know that jpmorgan, of course -- and remember, jamie dimon and mary erdos were very much involved when the company was trying to pave the way for investors who were pushing back and figuring out a way to get there. at this point, my understanding has been that jpmorgan has been focused on trying to provide some sort of a financing but largely, it would be either preferred or include debt as well and that was not necessarily

something that would have perhaps given wework enough time, you know, adding more debt to an already leveraged balance sheet. certainly pushing out, obviously, the maturities and the like would be helpful, but perhaps not as helpful as bringing in pure new equity, putting the control of the company in the hands of mr. masa, at this point, who has been, by far, the largest investor through the vision fund that softbank controls so that's where it stands. other concessions, hard for me to say i mean, you know well, of course, jpmorgan's involvement here was in so many different areas. some of their private clients, right, wilf, owned this. they had personal loans to mr. neumann, as well now, it is my understanding that part of this may involve the ability of mr. neumann to even sell some stock to softbank and therefore expunge some of those loans, which i guess, to your question, wilf, would be helpful to jpmorgan in some fashion.

>> well, it definitely would i would say, firstly, on the headline, any deal that was an equity deal is a huge relief to jpmorgan, because they won't have to write down any debt, as they might have done if they would have to fund the company with a fresh round of their own debt on the first level, the fact that softbank is doing the heavy lifting, not them, is a help i would be surprised -- it would come across quite bad, i would think, if adam neumann was able to get some cash out at this point, even if it's at a lower valuation than he would have dreamt of back in the day. i think that would come across quite badly in terms of those ongoing questions of corporate governance around this whole issue. if he's able to liquidate some of the risk when others aren't >> it doesn't really matter, though, wilf it's a private company, it's staying a private company, most likely, for a very long period of time. it's not as though they're going fob -- >> well, it's not public

shareholder s that are sufferg but there are other public clients that might feel a little bit. but the other thing that's interesting, if softbank is making this investment, clearly the vision fund will now have to update its carrying value in wework to whatever the latest valuation is but nonetheless, it is softbank that's helping bail out overall the investment i guess some kind of admission that this hasn't been successful there's going to be a write-down in the vision fund, but it's not as bad as it could have been for the vision fund investors. >> perhaps not and it's interesting, you've got softbank on the one side and the vision fund on the other you know, as you well know, wilf, these things are dynamic, and i want to make a couple of calls. so i want to do that and perhaps come back on, if possible, to update our viewers even further on this story, since it's moving along. and i want to make sure we can be clear, as clear as possible, on the equity infusion here, what is new, what is existing.

let me go do that and perhaps we'll have more. but again, softbank taking control of wework, if they get to the finish line they're all behind closed doors right now. the plan to announce a deal perhaps as soon as tomorrow. >> and before we let you go, i know we want to make some calls. there was obviously some fear that this company was going to run out of money was $4 to $5 billion enough to keep them from doing that with this equity infusion >> well, you know, that's a great question they were weeks away from being in a position where it was going to become a day-to-day issue well, certainly, this will give them a lot more time just how much, not clear and until we get all the specifics in terms of equity and/or acceleratingequity and debt, i want to make sure i understand exactly what i'm -- what's going in, but it will give them certainly more time. there's no doubt about that,

courtney >> david, thanks so much for joining us david faber, no doubt he'll be back with more as he just said court, the only other thing i'd add on to that is according to my sources, the value at which the likes of goldman sachs -- goldman sachs last week during their earnings report wrote down the value of their holding in wework to $150 million to $70 million, so it was more than a 50% haircut. my sources would suggest that that value of $70 million, which was already after the most recent write-down, did still imply a headline valuation for the company that was at least double-digit billions. so this would kblimply 7 to 8, n a little below some of those worst-case scenarios and i think for anyone watching, of course, that remembers the supposedly $100 billion or $47 billion or $30 billion or $20, you're down to single-digit bills, which is a sort of confirmation, of course, of the fall from grace. but as you correctly raised there with david, it would solve

the immediate questions for the future of the company and allow in another couple of years to see if it can recover again going forward. >> we'll keep following this story, because i believe it will still develop. hopefully we can get you more within our show here but we only have about 1 minutes left in this trading day, so we're now in the closing bell market zone. this is commercial-free coverage of all the action going into the close. we have cnbc senior markets commentator mike santoli he is here with us to break down the crucial moments of the trading day. and today we've got barbara duran from bd-8 capital partners she's going to stick with us as well we're going to start with industrials. and seema mody she is at the boeing post. what a day for boeing. >> second consecutive day of losses for shares of boeing. we're off the lows of the session. but here at post 6, watching shares of boeing trade down by 3.7% also worth noting, it's moving on heavy volume. 30-day average for shares of boeing typically around 3.9 million shares so far today, nearly 13 million

shares have exchanged hands. a number of wall street downgrades today, including ubs from buy to neutral. a wider discussion does persist around the regulatory hurdles that boeing could face in the coming weeks or months earnings out on wednesday, so investors are really going to want some more answers from the company when it reports results. the focus has also broadened to some of boeing's big suppliers like ge, which makes the leap engine in the 737 max. this new report from jpmorgan, steven tusa analyzing the relationship between boeing and ge, saying, while it's still too early to call the financial impact, the news around the 737 max is notable he goes on to talk about the overlap in leadership. he's sticking to his price target on ge of $5 >> thanks very much for that bob, you're a holder of boeing where do you stand now >> it's interesting. i have not been tempted to buy and add to that position, until now. although i don't think today's the day. i think we're in the kmichlation

scene, everyone downgrading, cutting earnings i think this release of the text was unfortunate, although they did give it to the department of justice. i think i'm constructive here, patient. it's not a question of if, it's a question of when and even if they miss the end of the year, it will be some time in the first quarter that this plane will be back flying. i think there's a buying opportunity opening up in the next few days, possibly take a few more weeks >> we have got eight minutes left of trade. stifel upgrading jetblue to buy today. let's get to phil lebeau who's been looking at the note phil >> this tangentially has to do with boeing, because as boeing cannot deliver the max, that means its largest customer, in terms of the max, southwest airlines is looking for other options. stifel is out with a note today saying, you know what, we think this could potentially lead to southwest being interested in acquiring another airline. that's where jetblue coming in stifel upgrading jetblue, up to a buy rating the analyst basically says, luv buying jetblue makes sense on a

number of levels southwest needs fleet diversification. remember the jetblue fleet, these are airbus airplanes don't forget, jetblue reports earnings before the bell tomorrow it will be interesting to see whether or not there's a question or two for the ceo about this shares moving up 3.5% today. we should point out, guys, there's nobody else we've talked to who has said, yeah, we think southwest is in the market to buy jetblue, but it's an interesting theory that's out there bouncing around. >> it's a theory stifel did note today. well, facebook stock is getting a boost today after ceo mark zuckerberg appeared on nbc in an exclusive interview with lester holt, defending facebook's political ad policy, which has faced criticism recently for allowing campaign ads that campaign falsehoods >> i get that a lot of people are angry at us. part of growing up for me has just been realizing that it is more important to be understood than it is to be liked and i believe it very strongly

and i think people can make up their own mind about me or the work that we're doing, but this is who i am. >> very interesting comments there. mike, i don't know that it says much exactly about the company and the direction, but we know facebook has been in the headlines an awful lot, for a lot of different reasons over the last month, though, shares have been essentially >> yeah, the market has not necessarily kind of wiggled with every turn in this story in terms of whether, in fact, they're going to take political ads and all the rest of it it seems like the business changes hardly at all, but the issue is, facebook is genuine when management says, we wouldr. if that day is coming closer, facebook is probably well positioned for it. >> let's talk energy the sector is leading the market today. dom chu has a look at some of the biggest movers for us. >> wilfred, for good reason. despite the fact that oil prices are lower on the day, you've got

some of biggest oil services company up massively in fact halliburton, one of the biggest performers after a mixed earnings report. shares came shy of some of those estimates, but it was the path forward. the the company outlining some of its plans, that has sent h l halliburton shares up. that's leading all higher on the day. as you can seedespite the fact oil prices are lower we want to put some context around some of these big names we're seeing if you take a look at a foo five-year chart, it's lost about a third of its value even worse for some of the oil field services name. so big pop today wilfred, courtney, but at the same time, the down trend over the medium to longer term is very still solidly in place, guys back over to you >> dom, thanks very much we've got just under five minutes left to trade. we're up 0.7% on the s&p 500 pretty much near session highs,

in fact. news just breaking on our air a few minutes ago from our david faber. softbank will take control of wework ji via an injection of significant new capital according to sources the deal could be announced as soon as tomorrow david is working on that story we'll have more in just a few minutes. a roller coaster ride for that company of late. the implied valuation, david told us, was $7 to $8 billion for the company, a long way from some of the recent muted valuations now, wells fargo stock trading higher today as new ceo charles scharf officially took over. the company has been without a permanent replacement since march 28th of this year, when tim sloan stepped down scharf will be the first person to run wells fargo since the fake account scandal broke in 2016. the stock jumped sharply and came down as yields slipped and has had a nice rally with all

the bank stocks over the course of the last year following earnings it's actually up net 2% since the day he announced he was taking over. he's got one immediate challenge, which is to get the fed asset cap lifted and moving forward, whether he can reinvigorate the bank and get investors to think it warrants the old multiple it used to have >> it had this huge premium to the other very large banks for many years that's been mostly bled away. really used to trade on the same types of salesmanship that eventually were to the excesses. but i think that the runway is pretty clear you get the asset cap potentially loosened or lifted the company reported earnings. they were fine, but not stellar. it seems like there's more room to perform operationally better. and the backdrop is looking better in general for the banks.

barb, what do you think about the banks, especially the consumer units of many of these banks? >> i intend to be in the mastercards and visas of the world, because i would rather play that. the banks are tied so much to interest rates, and after the models changed so much in the last ten years, it's not really my cup of tea. however, you have jpmorgan making new highs a lot have done well with their loan growths, consumer loans, this kind of thing >> fair enough all right, what about these market internals >> a three-month chart of this year, back up to the late summer highs. that's been a positive backdrop. the yields going up. you're back to basically august levels that was a big worry part of the markets back in august and in general, underlying breadth in the stock market quite high >> let's get to bertha coombs in

the nasdaq >> hey, wilf apple today is definitely the strength we're seeing here in the nasdaq for the third straight day setting a new all-time record high in fact, apple so far this month, the move that it has seen up has provided a greater point impact to the nasdaq 100 than the four f.a.a.n.g. stocks combined, even when you trade out nvidia, that is up about 12% so far this month. meantime, vertex pharmaceuticals, we're watching that one the company's latest cystic fibrosis drug was approved by the fda. it's already risen about 4% into that peloton losing ground after gaining 4% with a lot of analysts saying great things about the stock. but investors just aren't buying it >> yeah, certainly one of the underperformers. thank you, bertha. with today's gains, the s&p 500 is poised to close higher and break above 3,000, close above 3,000 for the first time in one month. the market responding nicely to

those comments made by chinese vice premier jpmorgan now up over 5% in the past one week, responding to better than expected earnings. lennar also at a 52-week high. that's more or less a yield play for the markets. there's the closing bell the s&p 500 closing above 3,000 for the first time in one month, at 3,006 the dow jones industrial below 27,000 at 28,826 good afternoon, welcome to the "closing bell. i'm wilfred frost. >> and i'm sara eisen. you can see the day's market action on the right side of your screen with the screens still coming up with the tabs on the bottom of your screen. >> let's check in on wall street the dow higher by 0.2%, large by because of boeing, which dragged

its performance. but the s&p 500 up 0.7%, ending right at the session highs nasdaq and russell higher still, just shy of 1% of gains. >> joining us to talk about the market day, we have barbara duran, senior portfolio manager at bd8 capital manners and michael yoshikamai we'll give you the first comment today, mike santoli, as weap ofn do ended up nicely at 3,006 >> a pretty sturdy yip performance. a lot of trends you've seen in the last few weeks with cyclical groups getting traction, bond yields going up, a general gradual progression of risk appetites rising that was in place today. i don't think you really took it at any particular key levels, but the advance/decline line it did hit a new high today. things are lining up in favor of the bullish case now, again, we've deny stuck under the highs for a while right now. it still has to be proven. but it seems like you have

jpmorgan/apple hitting new all-time highs it's a net positive when you see those things >> what's your take as to whether we need a big fresh catalyst to go to all-time highs or we can slowly grind our way higher to it >> i think there could potentially be a slow grind. but the catalyst we're looking for is what's hang with earnings the china overhang seems to be dissipating at this point. the fed is likely to cut rates a quarter percent in the next couple of weeks, but we need to see earnings come in solid, as they have so far, and more particularly, hopefully you'll start to see cfos and ceos on earnings calls actually talk where a sense of optimism, given perhaps some of the overhang from the china trade talks going away at this point >> i was just going to say, it's been an hour skbechand we havent talked so much about china yet are we passed the worst of it? >> i think investors are hopeful we're past the worst of it

however, that would be foolish to think so. we've done this play so many times this year. but it's definitely a discount on the market. hopefully, if we don't get some shock, the market does have limited downside here and potentially, if we get some good china trade news and certainly there's been lots of positive noises this week, we could get to that new high sooner rather than later >> major news on wework. david faber joins us with some of the latest. david, what can you tell us? >> some updates here, of course. again, to reiterate what we first brought you 10, 15 minutes or so ago, wilfred softbank and wework are in talks that are very advanced, resigned to reach a deal as soon as later today or early tomorrow, in which softbank will take control of the company, of the space-sharing company. wework, of course, the embattled co-working company that they've already invested some $10.5 billion at, through

their vision fund. it would be new funding. earlier, i described it as equity there is a debt component here that would also have the effect of accelerating warrants that softbank received, the vision fund received as well from its last round of funding. the one that valued the company as high as $47 billion though they did not invest that large of an amount but they have invested it various ways along the valuation scale. as much as 10.5 billion. this will be an additional $4 billion to $5 billion. here's what we also can tell you at this point. sources close to the talks tell me that softbank would then have control of wework, perhaps as much as 70 to 80% control. earlier, i had said 60 to 70%. more reporting as high as 70 to above. perhaps as close as 80%. adam newman, the company's founder and longtime ceo who stepped down from that role a few weeks ago would maintain or

have a small double-digit stake in the company but perhaps importantly for him, he would live to see another day. and perhaps hope, of course, that his equity is going to be worth more marcel secello claure, a man wh sprint, very senior official at softbank, would take control of the management of the company. in the near-term, he would take control of wework. a guy who can work his way out of tough situations. and all of this being done by softbank to give the company new money and to give it the time that it feels it needs to essentiallily put it on the right track and back to growth, profitability. that is the plan as it currently stands there had been some talks that

wework was having with its longtime financial supporter, as well, jpmorgan but they have gone, i'm told, the softbank route at this point. this seems to be a very highly likely outcome would value wework at $7.5 billion to $8 billion. to put that in into perspective, softbank has invested $10.5 billion. the new funding will bring that up to as much as $14 billion to $15 billion at this point. that's what we can tell you we know we'll wait, of course, to see if and when they get to an announcement, how they describe the new funding exactly, but did want to get back and sort of clarify a few things there and share what we know back to you. >> david, fascinating, just as you said there at the end, softbank themselves having injected a total of $14 billion to $15 billion it shows the fall from grace and how many people, despite this saving package which gives the

company and those involved another day, another year perhaps of breathing space, shows the extraordinary fall from grace that we've seen >> without a doubt listen, it wasn't that long ago, the market was expect iing an io that could come at $25 to $30 billion. few expected it would come at a level that softbank invested in earlier this year, this $47 billion number that was bandied about. one of the things that did come along at that time was these incredibly high value was these warrants which are going to be repriced down and will gift softbank that additional ability to own even more shares, along with the new funding they're putting in as well but it has been a tough road, to say the least. it has not reflected well on softba softbank masa is someone who loves

founders and their energy and vision and there was lack of there news company. their contention at softbank is, and masa, of course, is, i remember when he explained it to me during an interview next march is that they can be and will be, and now it's up to them to bring it to that level in terms of both profitability and growth >> david, thanks so much for that mike, your initial take? an equity deal is one factor of this and the valuation the other factor >> if you talk about a company that has ae tremendous haircut and get an equity infusion oftentimes, those are the times when you're about turn for the better the question is, is this just going to be the capital that allows the company to remain in its current scope or are they

going to have shrink and get out of long-term lease obligations it's unclear on an operating basis what the plan would be from here. keep in mind, when they were going to do an ipo of $3 billion, they were going to get $4 billion in new loans along that, that would have been the $7 billion that would have kept them going for a while it just shows you that the overall market valuation is largely a distraction. they would have the same amount of capital and that would say it's a $30 billion valuation. >> it's amazing how close they got to an ipo. and everything that's happened >> close, potentially. they're close in terms of the stages it's unclear how close they were in terms of investors genuinely writing checks >> and i would point out that the originally floated $47 billion was never really that realistic. only a small amount of softbank's rounds were warranted at that. it was almost a trick, that raises all of these conflict of

interest questions, that they could leak to the market, but $20 to $30 is the range that people seriously talked about the ipo and we've got a massive haircut from that. >> now at $7.5 billion to billion. td ameritrade earnings are out so let's get over to contessa brewer. >> we have a revenue beat coming in at $1.56 billion versus the estimate of $1.47 billion. earnings coming in at $1.05 adjust eed versus the 98 cents that was estimated i really want to talk about the zero dollar commissions that went into effect october 3rd we know that the street is expecting earnings to decline because of that some 36% in the first fiscal quarter of 20 and the company's ceo, tim hawky, says that they are planning for that, but two weeks post announcement, we've seen a 49% increase hour new accounts opened compared to what we were

averaging in the september quarter. and they say these are clients of all sizes, smaller accounts to multi-million dollar portfolios they think that's going to make a big difference and for the full year, they're already reporting record new net client assets of $97 billion. and record average client trades for the year up 6% as well the stock now after-hours up 1.1% wilf >> contessa, thank you very much for that tomorrow, don't miss our first on cnbc interview with the td ameritrade ceo tim hawky let's get back to meg terrell for the latest on today's opioid settlements. hey, meg >> reporter: hey, wilf it's been a whirlwind. we're here in cleveland where the first landmark trial over the opioid crisis was supposed to kick off this morning within minutes, that hadn't happened because a settlement was reached. now the story has shifted to a potential broader settlement with at least five companies four state attorneys general who are leading the negotiations on

behalf of states just held a conference scocall and outlined framework, the bullet points of which we really reported last week and they don't seem to have changed much they include $18 billion in cash paid over 18 years by the three major drug distributors. $4 billion in cash paid over two to three years by johnson & johnson. and $23 billion worth of addiction treatment medicines by teva and a couple other points that would be added to this. now, municipalities, the cities and counties are not onboard with this settlement proposal. so it's really turned into a states versus cities and counties story here, where the states want to accept this and move forward the cities and counties say they need more. we're going to be looking for more on this, but this is moving stocks quite a bit as investors hope that this could be putting this behind them for some of these companies. that doesn't seem to be the story just yet, guys back over to you >> thank you very much, meg.

michael, i was going to ask you how you feel about some of these health care names. some of these settlements take away at least a bit of uncertainty with what some of these lawsuits could have ended up otherwise >> yeah, that's really what this is all about the question is, are these stocks being priced at absolutely armageddon snoircenas and is it an overstatement the fact that stocks are starting to rally on these settlements is really indicative of the absolute negative fear that people have about, these are going to be some catastrophic amounts that they're going to have to pay and i think they're not going to think in the end there will be some reasonable sort of settlement that's going to occur. and i think that's going to reduce an overhang on some of these health care stocks as these settlements are announced. >> dividends also remain high on a number of these names. barb, what do you think about some of these health care names? interested in any of them at this point >> a name i've been watching in particular is johnson & johnson. that's not the opioid, but in

terms of the asbestos. in general, these type of names get discounted quickly there's lots of headline noise, but you will have opportunities in here. there's not a particular one i'm looking at, because i own names like merck, that's not particularly exposed there, but there's definitely opportunities opening up >> and a lot of movers as this story continues to unfold. we want to thank you, barbara duran for being here with us today as well as michael yoshikami. coming up next, the boeing blame game we'll talk to a pilot turned journalist about who's at fault for the problems with the 737 max jets stick with "closing bell." we're back in 90 seconds man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right

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well, shares of boeing closing down nearly 4%, as the company's 737 max troubles deepen phil lebeau has more on that for us hi, phil >> courtney, the stock was under pressure all day, in part because of three downgrades and a slew of notes fran s from ana, all basically commenting on the reports that came out friday regarding these documents that were leaked from 2016 of a technical pilot and those stocks suggest that perhaps he may have been trying to mislead regulators by the way, his attorney says that's not the case. all of this raises the question, when will the 737 max return to service? will it happen in the fourth quarter? the head of the european version of the faa he was out with an interview today saying it will be january at the earliest. meanwhile, dennis muilenburg, the ceo of boeing sent an employee email today saying that

the company is making steady progress on the return of the 737 max. dennis muilenburg and the other directors of boeing did meet today, day two of a regularly scheduled board of directors meeting that happened down in san antonio, texas on wednesday, analysts will hear from dennis muilenburg that's when the company reports its q3 earnings. and guys, you can bet, that's going to be one of the more heavily listened to analyst calls in a long time when it comes to earnings season >> it certainly will, phil thank you very much. boeing slipping 4% today following a 7% slide on friday for more, let's bring in jim corridor and william longavisha do you think that these latest revelations from friday mean nothing more incremental, and still put a large amount of the blame in your eyes at the feet of the pilots of these planes. >> well, from what i can tell you, and of course, i haven't

read these in entirety, which we have had to do to understand what they are, these notes or text messages are inconsequential. it seems that they're being taken out of context it seems like there's quite a bit of hyperventilation going on we've really learned nothing from them that has not been known for about a year we know that boeing made mistakes in the design of the mcas system. we know that those mistakes are repairable we also know that boeing made a mistake in not disseminating knowledge of that system to the pilots we also know however that the reason they did not do that was not a pursuit of profit or something like that, simply that it was inconceivable to them that a pilot faced with the potential failures of the mcas system would not have an immediate, instinctive, and traditional solution of turninging off the trim. they found two crews, much to

everyone's regret, who did not have the skill or wherewithal or airmanship to turn off the trim. as far as these texts go, which again, that we have really only partial knowledge, we don't know the context, we do know that he was referring to a simulator in development, not a mature simulator, but you can call it an experimental simulator for 737 max. and so the conversation was about the simulator, not the airplane and that simulator was a simulator in development >> i presume you've seen the response to your recent article by captain sullenberger, where he says, quote, it is wrong to blame the pilots who lost their lives in these disasters, when the aircraft design and certification was so fatally flawed what's your response to that and what's your response to the fact that there were two crashes and still, the plane was not grounded in between.

>> well, captain sullenberger is a friend of mine and i have great respect for him. i actually was not aware that he had comment on this at all i don't really follow comment y commentary injust go on with my day job so i have no response to that. we do know that it would have been very easy to solve this problem in the air we do know that when the dives are characterized as non-recoverable or un-recoverable dives, that's entirely wrong these dives actually should never have turned into dives and they were totally recoverable. and they resulted really not from the mcas failure, although that played a role, but ultimately from overspeed conditions that is, the pilots in both cases did not throttle back. and why they did not throttle back, why they did not turn off the electric trim, it's anyone's

guess. >> jum, we're going to turn to you from some of the reaction from the market here obviously, shares of boeing dragged down the dow today you still have buy, though you also don't believe that these text messages that have been reported really change the story fundamentally for boeing here why not? >> i think that the stock's reaction today is simply the reaction of three analyst downgrades and investor fear i think if there was something to this story, it would be more than just a couple of text meenlgs between pilots, even if one was involved in testing the simulator. i think there would be a paper trail that leads directly to management in the absence of that, i have to believe that there is no real fear that wassi being founded b this pilot, otherwise he would have brought it to the attention of management. and there would be more to it. the faa has reviewed documents boeing has turned over everything that they have at this point as far as i know of course, there could be more revelations coming but as we speak right now, there's nothing to indicate that boeing knew that there was any reason to be afraid of the mcas

system that was being fixed. and so there's no -- there's no evidence to say that boeing is covering anything up i think that the reaction today an overreaction. my thesis stands that the plane will come back into service next year boeing will begin to normalize operations, resume deliveries, and at some point during 2020, things will start to normalize >> and jim, is that the key thing for the stock price, when this plane comes back? >> yeah. if you want to look back and blame, there's going to be plenty of blame to go around certainly, dennis muilenburg's reaction to this whole fiasco hasn't been up to par. and he may see more reaction because of that. but we're looking for it we're looking at an industry that is a complete duopoly where there's strong commercial aerospace demand, a very strong backlog of orders that's going to be fulfilled as long as this plane comes back into service. it's going to be the most scrutinized plane in history once it comes back in. there will be a case to make that it's the safest plane to ever fly, because it's going to

be so skrcrutinized it will go on to many, many years of profitability for boeing >> jim, i think the duopoly is an important point william, very quickly, it seems like jim does believe that 737 max should fly again and will soon what do you think? >> i agree completely with everything he just said, right across the board, i agree with it >> thank you both for joining us still ahead here on the "closing bell," beyond meat shares are still up more than 300% since its ipo, but they have fallen recently up next, we'll break down the charts and tomorrow will be a huge day for earnings find out what to expect fosor me of the biggest names on the earnings calendar later, here on "closing bell. - [spokesman] if you've tried college but never finished,

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let's send it over to mike santoli. he has his third dashboard of the day. hi, there, mike. >> courtney, hello calling this one initial descent. we'll look at beyond meat as an example, the latest example of an extremely hot ipo of a cult consumer brand that has come back down to earth and maybe look at history for some signs

this is from the first trade in early may. not from the actual ipo price, but from that point on, three months, hit a peak, up about 250% that was in three months keep that in mind and you went down, bounced a little bit trying to find its own level, and really, i think a lot of people looking at this 100 level where i.t. really started to accelerate higher. take a look at gopro, a couple of years ago, this has had a much longer history, but look at its early days of trading. this peak right here, three months after the poppy it was up over 100% from the first public trade and then it defended itself and defended that little breakout. and we know what happened from there the. but shake shack. and what i love about this, too, this peak is three months later. for some reason, it seems like

when the fever climax breaks, it's 150%over that time. and then it had to find its base and finally come back and now you have reached new highs as the concept took hold. not saying history is going to repeat, and if it did repeat, it could be a variety of different ways but it did show you there was an unhinged momentum move, a public frenzy today, you had that announcement from duncan they'll take beyond meat products nationwide >> thank you, mike still ahead, much more on this breaking news that softbank will take control of wework coming up, we'll discuss what that means for the company's future >> up next, secretary of state mike pompeo weighs in on china's retaliation against u.s. companies whose employees support the pro-democracy protests in hong kong. >> we think it's completely inappropriate for china to attack u.s. businesses whose employees or customers exercise

their fundamental freedoms here in the united states >> find out if he also thinks u.s. companies should be criticized for making profits in china when "closing bell" returns.

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it's time now for a cnbc news update with sue herrera hi, sue. >> hello, courtney hello, everyone. here's what's happening at this hour wisconsin's governor, tony ever is signing an executive order, calling for a legislative special session to take up a pair of gun control measures the move follows a recent public

poll, which revealed more than 80% of wisconsinites want a change in gun laws, making them nor restrictive. a history-making spacewalk, just another day at the office, or perhaps outside of it for two american astronauts. jessica meier and christina cook were the first women to be part of an all-female spacewalk on friday and it is a day meier says they will never forget. >> we do recognize, it does carry -- it is an historical achievement. it does carry a lot of weight torre people and for us, you know, when we see that many times in our lives, it does make a difference if somebody can identify with somebody something about them. >> and tickets to "star wars," the rise of skywalker go on sale tonight. the full-length official trailer also comes out tonight during the halftime of the new england separati patriots/new york jets game.

this is the final installment of the franchise. it will be in theaters november 18th guys, back downtown to you wilf >> sue, thank you very much. earlier today, i spoke with the secretary of state mike pompeo in a wide-ranging interview. i asked him about china's handling of the hong kong protests and the blowback that some american organizations have seen when employees speak out against china. here's what he said. >> look, every company has got to make its own set of decisions. but what we've seen over last few weeks publicly, but we've known now for an awfully long time is that the long arm of beijing is reaching out into these companies, stealing their intellectual property, forcing technology transfer, making it very difficult to in fact make a profit in china for many, many companies. from a foreign policy perspective, we think it's completely inappropriate for china to attack u.s. businesses whose employees or customers exercise their fundamental freedoms here in the united states we think that makes no sense

and we'd encourage every company to take a good, close look to encourage the kinds of things, the reciprocity that president trump has been demanding from china actually take place. >> is hong kong linked to the trade discussions? >> no, not directly. hong kong is an issue where china needs to fundamental live up to its obligation it made a commitment to one country, two systems president trump has said they need to continue to honor that commitment that they made, not only to britain but to the united nations and the world and they need to live up to that there in hong kong >> well, this is a really interesting answer we kind of touched on both sides. didn't take a really hard line position, but was a veiled criticism at companies that have not stood up for the kind of things that, of course, the administration is fighting for it wasn't directly naming the nba or anybody else, but i think it's clear what his implication was there. >> i think in general, the idea that perhaps u.s. companies over the years have gotten in the habit of being far too accepting of whatever the local standards

are in china, that seems to be a pretty fair point. >> i think it's easy, though, of course, for a government official taking the flip side and say, you should stand up for what we believe in here in the united states, because there's obviously money and profit to be made and companies are trying to thread a needle. >> and he did say at the top, i think every company has got to make its own set of decisions. >> great job, wilf, on a very wide-ranging interview gosh, we talked about everything there. syria, turkey, china well, coming up next, silicon valley valley investment banker reacts to the breaking news tt ftnkhasoba will take control of wework. we' you'll want to stick with us here on the "closing bell. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory...

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we have a market flash on stamps.com contessa brewer has the details. >> hi, there stamps.com got the stamp of approval from u.p.s. to launch a new deal they're going to offer discounted u.p.s. shipping rates to stamps.com customers and integrate that shipping seamlessly into the platforms for stamps.com the stock right now up almost 19% in extended trading.

but the stock year-to-date is still down about 42% they're trying to stem the tide with this partnership that gives 740,000 customers with stamps.com new access to these shipping rates wilf >> contessa, thank you very much meantime, facebook ceo mark zuckerberg privately making hiring recommendations to presidential candidate pete buttigieg. julia boorstin joins us now with more on that >> that's right, pete buttigieg's campaign fimconfirm that his wife and priscilla chan recommended staffers to the campaign today, zuckerberg weighing in about a call during election security >> this shouldn't be taken as an endorsement. you know, we have several mutual friends from college who introduced me to pete a number of years ago i did a facebook live event a couple of years back, so it's kind of widely known that i had met him. >> this comes as a number of other presidential candidates question whether facebook should be broken up and senator

elizabeth warren and vice president biden attacked facebook's advertising policies. now, in last week's primary debate, buttigieg didn't call out specific companies, but he did say the concentration of power in tech companies should set off alarms he raised concerns about issues including privacy and data ownership. wilf, back over to you >> julia, thank you very much. still to come here on "closing bell," more on the breaking news from wework that softbank will be potentially taking control of the company according to sources and the valuation at that -- at what that is coming at. plus, mike santoli wl veilha a look at corporate debt we're back in a couple of minutes. quit slow turkey. along with support, chantix is proven to help you quit. with chantix you can keep smoking at first and ease into quitting. chantix reduces the urge so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking, with or without chantix,

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take your business beyond. welcome back major news on troubled co-working company, wework, breaking in the last hour. our own david faber reporting softbank will take control of the company, with new funding of $4 billion to $5 billion in a deal valuing wework between $7.5 billion and $8 billion that is a far cry from the $47 billion valuation from a recent funding round. the deal could be announced as soon as tomorrow, according to david faber's sources. joining us now to discuss is horizon partners managing director, sandy cory sandy, thank you for being here. a lot of sort of surprising headlines out of this, not the least of which is that valuation. $7.5 billion to $8 billion what's your immediate response from david's reporting >> well, that seems pretty reasonable, given the circumstances. i think softbank is the funder of last resort and when you are, i guess, you

know, the only buyer or investor, you get to set the terms. and so i'm sure there are a lot of considerations that go into that valuation but they have a lot of leverage. they probably could have gotten a lower valuation, if they wanted but i think for them, it's a balance of a lot of considerations, considering management, moral, employee moral, and probably not too much the other earlier investors, who i'm sure are probably not really happy about this but unfortunately, i think this is the only option for the company to be viable >> so, sandy, clearly, this is giving them breathing space to some extent, but now that the total capital raised for this company is vastly higher than the now-implied valuation, all of this is according to sources, does that suggest that the future of this company is bleak, even if the immediate future has been saved >> well, i think that, you know, wework did really invent this category of coworking, and i

think it's likely that it's a category that will continue to grow and i think wework will still be the biggest player and the biggest brand three to five years down the road from now >> but sandy, they didn't invent it they might have invented it in a new and trendy and tech inspired way and they are not the biggest player in this market at the moment regis owned bip iwg is >> that's fair they didn't invent it in the way that i said. they certainly innovated and i think they'll go through a pretty brutal period of restructuring here and they might not make it. i think softbank thinks they will certainly, their previous investments in wework, you know, don't look very good in hindsight. and so it's fair to criticize the wisdom of doing this one but i think it's considered, and i do think that if they can survive likely severe restructuring, there could be end up being a healthy, viable business in the future certainly, there are a lot of skeptics, for good reason. >> and speaking of restructuring, it sounds like

adam neumann will be there, but maintain just a small double-digit stake in the company and his voting control will be sharply reduced, if there at all marcelo claure will be taking control of the management, as reporting from our own david faber. what do you make of that move? is that sort of the right corporate governance to have at this point, to give the company a chance to move forward >> well, i'm not familiar with the exact setup moving forward but i think clearly, they need to make big changes. i guess that's pretty obvious. and for whoever is going to take the reins, it will be a real challenge to kind of get that balance of restructuring, but also trying to, you know, cultivate, you know, hopefully some green shoots of promise in the future so i don't think it's going to be an easy job for anyone and i wish i had more visibility into that go forward plan but i would expect continuously, you know, changes, because it's likely to be a rocky road for

them for some time >> sandy, do you think trust in investment banks has slipped amongst potential ipo investors? >> well, it's interesting. certainly, this doesn't reflect well upon the folks who put together the s-1 there's already kind of a movement against the more historical ipo process, you know, kind of a trend toward direct listings. this might, you know, push that forward. so it's fair you know, at the same time, the ipo didn't go through, so i think you can say that it is, you know, markets being reasonably efficient in action but certainly, i don't think anyone who was involved in the s-1 is looking very good right now. >> sandy, thanks for joining us. >> thanks for having me. let's get over to mike santoli for the final installment of the dashboard. >> well, hard to spread out, which is not good if you're on a long flight, but if it's the corporate debt market, it's

actually a positive when spreads remain tight take a look at the spreads for triple-b-rated corporate debt. there's been a lot of hand wringing about the volume of corporate debt, also whether rating agencies are behind the curve. this is double b rated double b rated is the top tier of junk bonds of high-yield debt netflix will offer $2 billion in new debt or maybe just has and they are double b. look at it the story is, it's been steady it's been pretty much steady for the last couple of years with the exception of this little eruption late last year. so that seems positive basically investors are willing to take on the risk of speculative debt, at least at this tier. take a look at triple c and below. this is the bottom tier of high yield. what you're seeing is a little bit more of an uptrend in the spreads. the market is getting a little bit anxious about the very most risky and leveraged credits, but not the overall ones on a net basis, it seems the credit markets are accommodating, but starting to cull the flock a little bit when it comes to those that are maybe

a little bit more at risk of default. >> the percentage out there of triple c rated -- >> tiny. as an absolute aggregate amount, it's pretty trivial. in fact, triple b is really where a lot of the focus is and where a lot of the attention on where those should be junk and if that really got disrupted, remember the talk last year when ge was at risk of being downgraded that has all washed away at this point, but still something that hovers out there over the markets. >> mike, thank you very much coming up next, despicable superhero movies france ford coppola backing a critique of marvel movies. we'll discuss when "closing bell" comes back one to five? when it comes to feelings, it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry, clive! actually, really angry. thank you. and seat 36b angry. you're clive owen. and you're barefoot. yeah... there's also apprehension...

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have come out to defend their work with disney i don't actually agree with anybody on this, because i hate it when the really arty oscar winning directors criticize the mass market blockbusters, but i actually also don't like the marvel movies. there's too many superheros in one, can confizs uses me and tag it too far >> there's artistic criticism and lament this is what the business is now. it's getting mixed up here the theme park analogy is interesting because a lot of people who write about the business of movies think of it that way people only want to spend money if it's an event movie f it's one of these $200 million blockbuster movies and you know what you're getting, crowded out the mid budget nonindependent franchise movies >> there's many people that show up in costume and it becomes this experience. i love the sort of batman superhero movies, that's one

sup sup superhero. marvel, who's who, what powers do you have? >> individually they're epic that's where i get -- >> gotham are both new york so even if they have different names. >> they cannot physically exist in the same place. >> that's what i thought i was confused maybe i don't understand it as well as i should >> i know that was d.c., someone is reminding me in my ear. it highlights the point the multiple people who started their lives in their own world, what are you going to put james bond in a marvel movie next? >> francis ford coppola fought with studios, he wants full control and don't tell me when i have to have it done and how much money i want to spend obvious friction point >> that's not critically acclaimed but they make a lot of money. >> it gives you two hours excuse to eat snacks.

>> buttery popcorn coming up next your wall street look ahead, the key things every investor needs to watch as we head into a new trading day when "closing bell" comes right back - [spokesman] if you've tried college but never finished,

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a big day for earnings tomorrow, with snap and png set to report results. julia boorstin has a report on what to watch from snap. >> the big question whether snap can grow its user base, after reporting in july best user growth since the cup went public the number is watch is 270 million daily active users, what analysts are expecting as snap invests in more content and rolls out its android app. revenues expected to grow 46% to $435 million in the quarter, the company's loss is expected to fall to five cents a share shares did gain about 7% today on a positive analyst note they are up about 165% year-to-date back over to you >> thank you very much, julia. a point that dom made for us earlier, wow png reports tomorrow contessa has a preview

>> procter & gamble stock is up almost 30% year to date. the ceo david taylor talked about the broad based goal p&g is experiencing across categories and regions expected $1.24, 12 cents higher than a year ago and revenue estimated at $17.4 billion, almost 4.5% higher than last year we'll also hear about p&g's full fiscal year performance, where analysts expect earnings growth of 7% and revenue increases of 3.5% >> thank you very much for that. t.d. ameritrade reported just after the close today, beat on the eps line up 4.8% trading low recently because of the price wars going on. tomorrow don't miss tim hockey, td ameritrade ceo. the highs might take out the

dow's lackluster return because of boeing. >> it was quiet and steady and the market is getting more comfortable with the laggard groups can work. we want to see the results which are so far benign. >> that does it for today. thanks for watching "closing bell." >> "fast money" begins right now. >> life on the nasdaq market site, this is "fast money. i'm melissa lee. tonight on "fast" the pressure mounting on boeing as the stock takes another leg lower. we'll break down what is next for this company in crisis plus a slew of underwriters pedaling positive initiations on peloton today. is the stock facing a major uphill climb and one of wall street's biggest bulls says we're on the brink of a big breakout tony dwyer has three reasons why we are headed back to new all-time highs we begin with breaking