super voting shares. i don't want to be too critical or a hypocrite, because the company that owns this company has super voting shares as well, but it is something as an investor you need to watch >> i hope the tide is turning in favor of the investor. >> thank you for watching "power lunch. >> "closing bell," right now welcome to the "closing bell," everyone. i'm wilfred frost. we have the dow and s&p either side of flat at the moment, but some massive individual stock movers and stories, mcdonald's one of them that's down sharply. so is facebook and travelers meanwhile, under armour moving the opposite direction 59 minutes left of trade we'll tell you all about it. >> and i'mcontessa brewer in for sara eisen today let's take a look at what's driving the action upbeat earnings reports are pushing those stocks broadly higher, but disappointing earnings are reigning in the rally, at least on the dow and new details on an nti-trus

investigation into facebook and that's pushing the nasdaq into the red. joining us for the hour now is charlie from arielle investments. you're an eternal optimist does that remain truetoday >> i'm certainly always looking on the bright side when we think the market is too pessimistic. and that's been our view for a while here everyone has been sure we're going to have a recession because the bond market inverted people are sure we're going to have a big brexit problem, sure we're going to have a trade war. i thought i was going to come in today and celebrate a brexit win. the brits messed things up again, wolf, so we'll have to talk about that. but generally things have been stronger than the market had feared >> let's get through some of the big stories we're watching today. bob pisani is covering a slew of big earnings mover courtney reagan is watching the c-suite shake up and mark santoli is looking at that as part of his market

dashboard. julia boorstin has the latest on a megamedia partnership. >> and a couple of disappointments, mcdonald's being one of them. but several companies did very, very well. continue to do very well home building stocks have been knocking it out of the park. pulte, up about 50% on the year. jetblue had a nice surprise. lower fuel costs helped them power forward here today that stock is up 15, 16% about in line with the s&p 500 for the year lockheed martin had a very large beat more than 10% or so. an unusually large beat for a company this size. they raised their guidance, but it's trading flat here the fourth quarter implied guidance was a little bit below analyst expectation, even though they raised guidance, it has because the third quarter beat was really strong. show you the s&p 500 because we were heading towards historic record territory, only 12 or 13 points away from an

historic close here. but as you saw, we sold off late in the day i think this is on brexit announcement that we have failed to get an agreement to shorten the time frame and possibly pause that brexit bill right now. guys, back to you. >> and first, you've got the leaders. energy, health care, and industrials today. what's really pushing this towards a rise reigning in the rally somewhat, but -- >> in general, there's been in dichotomy between safety stocks, defensive stocks, and more cyclical names today in general, we had economically sensitive stocks doing better earnings coming in better than people had feared. certainly at this point, very little science of a recession. the trade stuff has been better than people feeder those cyclical energy names stronger health care, which can be defensive, a little weaker >> we want to turn to the uk now. that key vote that just took place over the future of brexit. you had two votes here

tell me what happened. >> it's been a roller coaster the last hour or so for british and for the british pound. first the pound rose after parliament handed a victory for prime minister boris johnson, voting in favor of his brexit deal by a count of 329 to 299. moments later, the prime minister lost a second vote. that was on the timetable to debate and approve the legislation. so he has now paused the passage of the legislation, not exactly clear what happens next. the crucial thing, though, for the pound, if we broaden out the time frame there, it's only down 0.#%, following a significant rise in recent weeks why is that? because he's already had to ask for the extension from an october 31st highly, highly unlikely that we go no deal on october 31st also, much less likely than a month or so ago that we get no deal brexit at any point even if boris johnson pulls his current plan, his current deal

and tries to get a general election he probably now has to campaign on a mandate of this deal. now he's nailed his colors to the mast with this deal as opposed to under no deal so the pound over the last two months is up over 5% in just this quarter so just since the start of october. it's giving back a bit of that now, but not huge amounts of it. >> so support for the plan, but not support for a fast-tracked deal in three days >> well, unclear, if you can even say support for a plan, because some people may have thought, well, i can pretend to look like i voted for this deal and vote against the timetable, which the net effect of which we know means the prime minister is probably going to pause proceedings. the big wild card, which is highly, highly unlikely, is if the eu now doesn't grant an extension until october 31st, which the prime minister had to seek over the weekend. the chance of that minimal therefore, no deal is not going to happen on october 31st. could it happen on january 13st?

well, possibly but still now, because boris johnson has said he's going to go for this deal it's hard for him to backtrack when he's stood in parliament saying how brilliant this deal is so still higher than it was at start. month. meantime, under armour making a major c-suite move courtney reagan has those details for us hey, court >> so patrick frisk will become only the second ceo in under armour's history when he takes over officially on january 1st, as founder and current ceo kevin plank moves to executive chairman brand chief it's a big job, of course, and both gentlemen will remain involved with the company. here's what they had to tell us today. first on cnbc. >> you can haven't have two people saying go left, go right. ultimately, i'm going to be there and we'll make our inputs and our suggestions and drive on

a strategic basis and make sure we're aligned with that. >> we believe we have a strong plan in place. and we want to be able to free up kevin to be more strategic and allow me to do what i do with more freedom, as well >> frisk has been in charge of many of the operational changes that have been made in the last two-plus years that he's been here, but north america is still a big challenge point. the shares dropped about a quarter of their value after the company in the last earnings call had said they still expected a slight decline in north america sales for the full year so, they've got some ground to make up, having shed about 25% since then, though they are up today on this news back over to you guys. >> i guess they're going to have to work it out all right, courtney, thank you we have breaking news right now on boeing. phil lebeau has those details. what are you learning? >> contessa, we have learned that kevin mcallister, the head of boeing american airplanes is

no longer going to be in that role for boeing. he's being replaced in that capacity we'll have the name of his replacement, i would imagine, relatively soon. but kevin mcallister, who started as the head of boeing commercial airplanes in 2016, right before the 737 max was certified, is no longer in that role this comes after the boeing board of directors met for two days this is not a huge surprise. i can tell you that there are a number of people who are expecting that perhaps we could see some type of a shake up in the executive pranks at boeing, and that has happened with kevin mcallister no longer in charge of boeing commercial airplanes guys, back to you. >> phil, if the change for the ceo, dennis muilenburg, to learn the chairman title was to help on the pr of this, to help on the regulatory side of things, but not admit any kind of formal admission of wrongdoing on his part, what's the implication of this change for mcallister

shuler the pr changes have already been made? >> i don't think they're doing this just for pr i think if you look at not only the way the company has handled the max situation and the fact that they have continually had to push back when it might be certified and then returned to service, that is a huge part of this but there's also been other issues with the boeing commercial airplane division take a look at the 737 ng, the cracks that have been found in some of the wings of some of those planes that have now been grounded and they'll be fixed and ultimately back flying again. the 777-x. that has been pushed out it was expected that perhaps we might have a first flight in 20 2019 now you're looking at something that may not be certified and actually up in the air until the end of next year at the earliest if not later than that there are a number of issues in the boeing commercial airplane division that this is front and center at the heart of kevin mcallister being replaced as the lead of that division.

>> boeing shares up 2% right now. thank you for that breaking news let's get over to mike san toldly for today's market dashboard. >> what we have ahead, the over under. that being under armour, through the lens of another buzzy youth-oriented consumer stock. the croupier calls, in this case, that would be fed chairman jay powell look at that pattern and then small stakes, more bets what to make of the prevalence of very small stock trades and reading the tells from former bull market cycles for clues on this one. so the over under, look at chipotle against under armour shares for the last ten years. this has been a relationship i've tracked over the years. and at times,synced up pretty well both youth-oriented consumer brands, disrupter. they definitely were going up against very large incumbents and very, very fast growth

we have seen them diverge for a while, but this point in early 2018, that was when they were also right in lockstep over the prior eight years almost or so until chipotle took off like that what happened here chipotle hired a new ceo brian niccol came from taco bell and they had their first very good earnings report under his control. so the new ceo for under armour right there, see if they'll maybe converge once again, which would mean, under armour having a little bit of a bout of outperformance they don't want to make too much of this connection, as if there's something ordained about it, but it has been fascinating that it's linked up over the yoors. >> it's also a great reminder that even since the start of 2018, under armour has had a pullback very recently since the start of 2017, it's not been bad performance, just bad compared to chipotle >> and bad compared to where it has come from.

>> mike, thank you see you in a few minutes verizon teaming up with disney ahead of the upcoming launch of disney plus. julia boorstin has that story for us >> verizon announcing today it will give all of his subscribers a year of disney plus for free disney ceo bob iger telling us that this will jump start subscriptions, help with marketing, and also be profitable, because verizon will be paying a wholesale fee to disney with disney plus launching november 12th, iger says early interest is strong >> i can say without being very specific, the reaction to the product the people have tried in the netherlands and the reaction in terms of the signups has been robust it's heartening to see just how much interest there is >> iger also weighed in on the conversation that's been going on about regulating tech giants. he says, when it comes to the lack of regulation on the content that the tech companies distribute, he says it's a bit

of a double standard compared to the media companies and he does think there should be a level playing field. guys, back over to you >> julia, thank you very much. is this a big boost for disney or for verizon or for both >> i think the takeaway is the importance of content. disney has that wonderful content. they've taken it away from netflix, so netflix will have to find it somewhere else we love cbs and viacom because they have the content. >> you like cbs? >> we love cbs and viacom. weapon love value stocks, but it is content that is king. that's the big takeaway. >> are you disappointed by cbs and viacom >> we're disappointed with how the market has reacted to this deal there's no doubt the people that were long viacom were hoping for a takeover premium and they didn't get much of one they were disappointed in the synergies that have been put out so far but we think frankly they're going to have a great year next year with political spending and that the synergies will be close to 4,500 >> we're up about 11 point on the dow, so slipping a little bit, but essentially still flat

for the major indices. after the break former wall street analyst meredith whitney has been hailed for her predictions ahead of the financial crisis, and now she's back with her next act it's got to do wh itpizza. more on her latest venture and what she's watching in the market, next

meredith whitney, when famously predicted a downturn in banks ahead of the financial crisis in 2007 made another call predicting doom in the muni market, in the bond market she's back for her next act now, focusing on food sustainability. whitney is now the cfo at zoom, which uses analytics and tech to help food-related companies optimize performance and eliminate waste. and as part of that, zoom announced today it's partnered with pizza hut to roll out round pizza boxes. it's like, you don't have to reinvent the wheel if the wheel already exists you just have to use it. joining us for a cnbc exclusive interview is meredith whitney, chief financial officer at zoom. this is quite a turnaround from what you were doing, predicting financial crisis and meltdowns in munis and all of that

tell me why you're involved now with the round pizza box and how this is going to revolutionize pizza. are there applications beyond this >> the one thing that's always attracted me is looking at long secular challenges and that's been true most of my whole career and there's probably no more important challenge today than sustainability and so zoom is focused on creating a sustainable future with food. and food is one of the largest pollutants in the world. and so one of the ways we attack that problem is through, through this example, packaging. and so pizza hut has been a great partner, a great long-term partner. this announcement today is two and a half years in the making so not only does it marry technology with a great history like food and a great partner like pizza hut, but it brings two things that come together really well, this is a better taste experience for the customer, because the design of the box preserves the --

>> the crispiness, the heat, and it's also compostable. so everybody wants delicious food and everybody would choose a compostable alternative if they had it >> and it's the compostable bit that improves the effect on the environment, much more so than the shape of the box, which maybe makes a minor difference >> well, i mean, my box asked the obvious question, why are boxes square when the pizza is round? like, this should have been something -- it's something so obvious. and he took it one step further in terms of the design this is a really complicated design the bottom looks like an oven rack, so the grease wicks down and that's why the pizza tastes crispier longer, but we work with customers to try to deliver a better food experience to the smer and this is a great example. >> is this compostable in your backyard compost, or compostable like if you live in a big city, you can put it out with your green waste? >> number one, it actually fits in your trash bin, like --

unlike a pizza box >> that's true >> number two, it is industrial compostable. so there is no home compostability standard. but there's an industrial standard that's ten basis points of a $300 billion annual market so we have a big lift ahead of us but only technology, as you guys know, could do something like this bring this to a traditional industry >> meredith, just quickly, i would ask you to put your former hat on do you feel like the banks today are better prepared, if there is a downturn and a crisis coming, than they were in 2007 >> without a doubt, the banks are so much more better capitalized. and i think they're -- they're getting more creative after ten-plus years and we have a lot of great bank partners it's fun to be on the other side to work with all partners. >> thank you so much to see you. >> meredith whitney on the new zoom circular pizza boxes. more details on that boeing news

we brought you moments ago phil lebeau has that for us. >> wilf, we now know who is going to lead boeing commercial airplanes, replacing kevin mcallister, who is out, effective immediately. sf stan biel, previously ran boeing global services. he now transitions into the job of leading boeing commercial airlines boeing global services is a sizable position so this is not like they went looking around and said, who can we move into this role, stan biel has had a number of positions within running the supply chain for boeing commercial airplanes so he has vast experience in that part of the boeing business he now runs the commercial airplane division. they're going to move ted kolbert into the position of president and ceo of boeing global services. so, again, a shake up in the leadership at boeing with a new head of boeing commercial airplanes. stan biel, moving over after the break, new twists

and turns in the wework saga today, including a massive big potential payout for embattled former ceo, adam neumann we're getting new details about this and will bring you the latest, next plus, shares of td ameritrade higher today on the back of earnings we'll discuss the results and the company's move to zero trade the company's move to zero trade with ceo tim hawky it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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wework drama today, as more details of softbank's plan to take control of the struggling company comes to light leslie picker joins us with the latest >> this new deal amounts to $10 billion. wework will put in -- or softbank will put in $1.5 billion in equity, a $3 billion tender offer to existing shareholders and a $5 billion syndicated debt offering and taking control of wework is more than just owning a majority stake. it's about getti ting founder a neumann to also step aside according to our andrew ross sorkin, just reporting that softbank is allowing neumann to sell $1 billion worth of stock, but he has to use about half of those proceeds to repay softbank until the tender offer is complete he's also getting about $185 million over four years in consulting fees. >> so fascinating this level of the story continues. just on the other offer they

didn't go for, jpmorgan's offer, the key difference on that is it was just the cash, $5 billion, they were sent out to see if they could get a package, they did. it wasn't involving getting any stock from neumann, it comes down to the board, unsurprisingly, he goes for the other offer. on the softbank offer that's gone through, i mean, they've raised, what over $20 billion to date >> yes >> this company. >> they're now being valued at $7 to $8 billion how the ceo gets to walk away with a payday rather than begging for forgiveness to all the people who are having a write-down in the money he's raised off of them, i honestly don't understand it's a corporate dwomgovernance scandal of extraordinary proportions. >> but what about the fact that he owns those shares if you want him out, you've got to find a way to buy those shares >> fine. where does the consultancy fee come from? it's laughing in the face of anyone that has lost money on this investment. >> a couple of things. one is, when you mark your

position to market in a private deal like this, the last round is where you mark it to. if they had bought him out at a very low price, they would have had to mark their own position down to even lower and obviously, they're worried about the valuation of their own fund the two magic words here are fraudulent conveyance. if the company doesn't survive, the bankruptcy trustee will bring all of this money back and they've got massive leases outstanding. this is a situation to be heard from, more to come >> i quite agree with your first point. because softbank has sop much face to lose, they're trying to limit that and in order to do so, they're probably doing something that they must realize is questionable for the early investors who may even still be above water at a $7 billion valuation. but they're still thinking, $185 million in cash that could have been spent elsewhere >> i guarantee, if this was completely fresh, new money, they would have driven a much harder bargain to put this money in it's always the classic good money after bad. you're trying to defend the investment you made before, and therefore you will often overpay

with that new money. >> it's more actually, than just defending the valuation that they had before. what softbank was grappling with was this $1.5 billion equity infusion that they had already committed to for next april. that was at a $47 billion valuation. so if you put in $1.5 billion at a $47 billion valuation, you're getting a step up of only about 2.6% of the company. now that this company is worth, that they've reconfigured this agreement, they're putting in that cash and an $8 billion valuation, they're able to retain control of the company. so that warrant coming do in april was really the sticking point for them and something that they needed to do in order to make that investment worthwhile >> anyway. got to say, sort of well played to adam neumann. he got his money out i'm not sure about the morals behind it. >> we'll see how long he keeps this still to come, shares of biogen seeing a huge pop in today's session, up around 30% we'll tell you what's behind that move. and as we head to break,

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once thought to belost forever. the most personal technology is technology with the power to change your life. welcome back we've got 28 minutes left to trade and the dow is higher by about 50 points. s&p is flat, nasdaq is lower the key things driving the action, upbeat earnings reports are pushing earnings broadly higher, but two specific disappointing earnings reports from dow companies are keeping the rally limited. although the dow is leading. and new details on an anti-trust investigation into facebook is pushing nasdaq into the raid >> time for a cnbc news update with sue herrera >> here's what's happening at this hour. senator lindsey graham says he agrees with president trump that the democrats' impeachment drive is like a lynching he told reporters the

impeachment inquiry is a joke because the president doesn't know the identity of his accuser and the process is playing out in private >> when it's about trump, who cares about the process. as long as you get him so, yeah, this is a lynching, in every sense. this is un-american. if this continues in the house, it's a complete sham, and i will do everything i can to make sure it doesn't live very long in the senate >> russian president putin meeting with turkish president erdogan in sochi, russia afterwards, they agreed to joint control over formerly kurdish territory in syria, cementing russia's inroads in that region, as the u.s. pulls back and federal prosecutors in boston have hit several of the parents charged in the college admissions case with more charges. actress lori loughlin and her husband, mossimo gee knewly ar facing additional charges of conspiracy to commit bribery, which carries a maximum penalty of ten years in prison

you are up to date that's the news update this hour contessa, i'll send it back downtown to you. >> sue, thank you for that let's get over to mike santoli now for a second dashboard. there calling this one the croupier call, sometimes clamps down on some of high jinx of the games. take a look at the year-to-date chart of the s&p 500 i'll note where we have had the last five fed meetings right now we have a market churning up into the zone of record highs march 20th, we had a fed meeting right there that proceeded a little bit of a wiggle lower the bigger one was may 1st right there. then you got your first big pullback of the year june 19th, right around there. also kind of gave way to something -- that was actually july so that was july 31st. you get the idea we've basically had pullbacks each time we've gotten into the zone of a record high. and september 19th's another one. it isn't in necessarily what the fed says or doesn't says or sends a message about.

it seems to be that the market is able to kind of make headway when the fed is out of the way and they think twhahey know wha the fed is going to do >> mike, thank you very much nar. see you a little bit later shares of td ameritrade moving higher after reporting better than expected q4 earnings. the beat comes weeks after the firm slashed its commission fees to zero. joining us now on a first on cnbc is td ameritrade ceo, tim hockey thanks for joining us. >> thanks for having me. let's kick off on the earnings a nice little beat i guess, expectations had come down in part because of the price wars that are going on in your industry at the moment. >> ironically, actually, the price change that weapon announced came right after the close of the quarter and so it was a nice quarter that we were actually just adding up. and then we proceeded to take a fairly significant cut in our revenues going forward so the story was all about going forward, as opposed to last quarter. >> the price war, is it something that does annoy you a lot.

i guess more of your revenues come from this sort of commission charging, around 25%, than from some of your rivals, which for whom it was an easier headline price cut to offer up to their customers >> this has been hanging over the industry for many years. i mean, i've been here for four years and it's been a discussion point that we've talked about forever. in fact, ironically, if you think about it, back to 1975, when mayday happened, this has been the price competition if our industry that has been coming and consumers and retail investors are better off as a result of it >> already, you saw a big rush to have new accounts you said 49% increase in the two weeks post announcement. so how do you capitalize on that and offset what you expect to see in terms of earnings decline? >> well, the way we think of it is we've been preparing for this day for quite some time. and we've been investing in making sure the client experience is as good as it can be it probably happened earlier than we thought in terms of the competitive environment. but as you know, td ameritrade

used to compete at a slightly different price point. a little higher, because we thought there was more value there and we were gaining share and we were the leading trading share, even with that higher price point. if you now move that to zero, we think our growth rate will be even faster than it was previously >> you're charging 65 cents a contract on hospitalizations do you think that's the next field to have some competitive pressure to zero >> i think pressure is on all margin -- product of all sort. if you think about it not just in the wealth management space, overactive i don't believe that there will be any other sort of proverbial second shoe to drop. what happens is when margins get a little thick, we were operating at around 50% margins. now after the cut, we're operating at around 40% margins. >> we've been focusing on the pain in your stock price and your listed competitor ice stock prices.

do you think this affects most of all the robert hoods of this world? >> i think there's a few levels of competition here. first of all, for the last 40 years, the online broker, discount broker space has been gaining share from the traditional wire houses. so that will continue and in fact accelerate. then there had been the new entrants like the robin hoods of the world that had a price point of zero of being our major competitive plank. that's now differentiated and now all a level playing field. our strategy has been, in a world that is maybe eventually going to zero, it's better to be able to win on the kline experience and in that gain, we win. >> on broader markets, we're sitting here, the vix is below 15 are you surprised to see such low volatility when there are so many headline risks out there at the moment >> we were just talking about that the other day i want seems like the vix per unit of headline, to use your measure, is quite low. other than on one topic, that's trade. when there's a trade win that might look like it's either a

deal or not a deal, that seems to move markets disproportionately to the lack of volatility on other news. >> tim, thanks for joining us. tim hockey ittd ameritrade ceo. we have about 22 minutes to go before the bell here's where we stand right now. the dow jones is up 40 points. s&p is off by one-tenth of a percent and the nasdaq is off by about half a percent up next, we have your last chance trade and a befoafter the bell, we have earnings from chipotle, snap, texas instruments. and whirlpool. we'll break down the numbers and get instant analyst analysis cop on cloe"closing bell.

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power. this is a product that people in florida are very florida with, but people in california haven't been, because you don't get a lot of storms to lose your power. now with pg&e cutting out power, putting blacklists on, blackouts, people are buying backup generators. generac is by far the leading player in this space they have natural gas, they can generate power for your whole house as well as small mobile units and we think this business is going to grow mid-teens it's only trading at 17 times earnings, so it's still a value stock. >> california really driving that revenue growth? >> it's a product that people on the east coast, new jersey, maryland, anywhere where there's been storm, people are interested in backup generators. >> we bought it in the 40s this has been a particular stock for us normally i don't recommend something that's doubled but here the fundamentals are getting better every week. >> good for you, getting in early. that's charlie's last chance trade. 17 minutes left to trade we are higher by 20 points on

the dow, s&p is lower, nasdaq more meaningfully lower, down half a percent this is the la cmestomrcial we'll take before the close. we'll take you inside the market we'll take you inside the market zone, when we return together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, within six years, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer.

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we are lower with 12 and a half minutes left to trade. biogen skyrocketing on an earnings beat and some drug news >> it was a major beat on the top and bottom lines for bioengine in the third quarter but by far, the biggest driver is its surprise news that it plans to file for approval of its alzheimer's drug it's such a shock, because in march, the company announced they were stopping development of that drug after an interim analysis suggested the trials wouldn't succeed but now the company says it gathered more data and one of the trials actually worked, showing the drug helps slow the decline in memory and ability to think clearly, that are hallmark of alzheimer's with so many people with this disease, it could be a major drug if it gets approved >> it's just remarkable they went back to the numbers and just said, let's rerun those again. what's the implication for all of the biotechs that are looking at alzheimer's >> they did go back to the numbers, but it turns out they have more data than they originally had it wasn't just rerunning the numbers, it was rerunning them with some extra patience and

more information in terms of the implications for other biotechs working in alzheimer's disease, i just spoke biotech's head of r&d and said this approach targeting amyloid beta, many people thought it was dead. he says this appears to be work ing and you are seeing smaller biotechs getting a boom today as well, as well as the whole biotech sectors. people are really excited about this and the news from vertex. >> shares of procter & gamble are higher today on the heels of earnings let's get to seema mody now with that >> procter & gamble sales rising across all of its business categories, but really being led by strength in beauty, where organic sales jumped 10% and the cfo of the company telling cnbc earlier today, that's due to strong demand for customers in asia, particularly china, for olay and its high-end skii brand over the past year, the company

has responded to higher costs and tariffs by raising prices on a select number of products. results today suggest that higher prices are not pushing the consumer away. that's a sign of pricing power overall, sales volume rising 7%. the stock continues to trade higher and outperform its peers. the stock up 33% in 2019 wilfred, back to you >> seema, thank you so much. a steady gain over the course of the last year, charlie >> this is one of those dependab dependable consumer staple names. this is the kind of thing the market likes the market is a little worried about asia so it's nice to see the asian results came invery strong >> i would point out, a by all accounts flawless quarter, raised guidance, stocks up 2.5%. it shows you how well the stock has done, but also the fact that the real kind of theme right now in the markets is getting away from those defensive safety trades into cyclical great numbers, but it shows you how high the bar was

>> they're saying organic growth across brands, across regions, and also they're taking more market share, where they're the leader of the number or number two product. >> travelers, a significant drag on the dow today it was down 8% on the day. the insurer posted earnings of $1.43 a share,s so a significant disappointment off the street's expectation of $2.35 the company blamed a different environment. there's a $220 million asbestos charge, significant commercial auto losses, general liability that has analysts concerned. last quarter, we had a significant number of customers, you have litigation finance and hashtag me too those settlements will be getting bigger we'll be listening to this from.

>> it's fascinating with tb unpredictability of insurance earnings inherently. that's one issue the fact it's down 15% from its high three months ago. clearly people are thinking that the tide has shifted in terms of liabilities they haven't yet toted up >> i think this tort issue is concentrated on the very big judgments. i'm involved in state farm and we're not seeing it in the more everyday decisions stps n it's not affecting the average accidents. it's the big judgments >> and they are waiting to see if they get a return of $450 million from pg&e. and if they don't, they've already calculated the losses. if they go into the final bell the momentum into the close, not positive we're down a third of 1% on the s&p. the dow in the red as well

the nasdaq is down 0.7%. russell holding on to slight gainses. mcdonald's out with earnings before the bell and chipotle results will hit after the close. kate rogers has more on both >> mcdonald's missing projections this morning on earnings and revenue as well as u.s. same-store sales. higher menu prices and tech updprads did contribute to a 4.8% comp in the u.s., but that fell short of analyst expectations as competitive pressures mounted in this space. and chipotle will report in just a few moments after the bell analysts are looking for epps of $3.22 on revenues of $1.38 billion. same-store sales are projected to increase by a big number here 9.3% the street will be looking out for updates on chipotle's loyalty program as well as any color on the performance of new menu items like carne asada. digital will be another huge growth area. the brand continues to build out its mobile order and delivery business

the stock is up about over 100% year-to-date it's among the best performers in the restaurant space. back over to you >> kate, thank you very much mike, is the market saying that they think that mcdonald's is the exception or is going to play out as the norm for this quarter? >> i think the market is saying that mcdonald's has been such an acclaim story for so long and there's some complacency it's really the flip side of the png story. exactly the same as mcdonald's brilliant quarter, up only 2.5%. mcdonald's, a soft quarter a little bit of a stumble, and it's down a lot more than png is up that's the asymmetrical response from three defensive stocks. >> expectations were very high the expectations were just way too high >> all right so now we have six minutes left to go facebook sinking on news that 47 states' attorneys general are now part of an anti-trust probe let's get to josh lipton for

those details. josh >> that's right, contessa. facebook under pressure in today's trade. new york's state attorney general making news announcing that 47 state attorneys general around the nation plan to take part in an antitrust probe into the company. the stock falling on that headline remember, an investigation was announced back in september, focused on whether facebook broke laws result of anti-competitive behavior. in addition, facebook already faces a separate investigation launched by the ftc. yeah mark zuckerberg is scheduled to appear before congress tomorrow. guys, back to you. >> thanks very much for that, jo josh mike, what was the movement on the share price? >> i think this is not something you can just set aside it's probably going to be a long campaign to get out from under these efforts. it doesn't mean that ultimately value not being created every day by the business, but it's a matter of whether, in fact,

market is going to, you know, put a big multiple on that right now. >> charlie, where are you in this stock >> we've talked about this before i think the social media names have got a lot of political risk there are very few things that republicans and democrats agree on they all hate big social tech. >> all right >> we have more on the market breadth now from mike, with the market down 12 points on the dow, with just four minutes left to trade >> yeah, the overall market, obviously, has softened up as we got up to this 3,000 level look at banks versus software stocks over the last five trading days that kind of crystallizes what this market has been about taking profits in some of the more expensive higher-flying momentum software stocks banks are kind of where it's at for value. there's an all-time high today in the s&p 500 value index that sort of shows you the theme underlying it. also want to point to the vix. the volatility index, year-to-date it was declining before we got

this late-day perk up in volatility a little bit of a sell-off by the way, this mark does not trade a tremendous amount on the d.c. stuff but i think there are reports today of the testimony in the impeachment inquiry is maybe a little bit of an overhang today. >> i also wonder if we can get an s&p chart up, just to show you the brexit headline, the probably the reason that took us into red the first of the day. but we've recovered now selling into the close low levels of decline. >> there's a little bit of fatigue in the market. and when the growth stocks are selling off. when f.a.a.n.g. is selling off and software is selling off, that's where a ton of the market cap is the effect of the index as a whole will be outsized >> charlie, the brexit headlines, you do think, are relevant for the overall sentiment this week? >> i think that global growth around the world still matters a lot. european dislocation is not good nobody thinks that a messy exit from britain, from the eu will be good for the global economy so getting that behind us will be very positive when and if it

happens. >> we were also showing energy stocks today really recovering somewhere on the news that you could see opec and allies cut ing output where do you factor in what's happening with oil >> same basic point. if china is growing, the world is growing, demand for oil will be up and the inverse is also true and i would say, the political issue there, elizabeth warren said some very nasty things about fracking and the oil industry and she's doing okay in the polls, that's not good for energy stocks. >> all right so less than two minutes toog. let's get over to seema mody at the nasdaq for a look at the biggest movers there >> contessa, a decent set of earnings reports today, not enough to help the nasdaq trade in positive territory. although, take a look at shares of lyft, surging in the afternoon hours here, after the co-founders of the company said they expect the company to be profitable in 2021 that's about one year earlier

than analysts had projected. the cofounder, john zimmer of lyft at a tech conference saying they have $3 billion in the bank, a clear path to profitability, and that the team is executing well. remember, path to profitability has been the key concern for investors. and that's why lyft and even uber shares are trading higher today. lyft up nearly 6.5%. but let's pivot to hasbro. the stock falling precipitously in today's trade tariffs continue to eat into profits and there's still this key question on traditional questions on china on december 15th, going into effect. and that stock is trading down here now let's send it down to bob pisani at the new york stock exchange >> taking a look at couple of the over stocks moving we had a penny beat from u.p.s. for their third quarter. they affirmed their full-year guidan guidance

by the way, the ceo unexpectedly retired. one reason we're seeing the stock trading down elsewhere, howard hughes overhauling its leadership model, embarking on a cost-cutting program the company said it will eliminate their company structure and move to a decentralized regional management model new york's south street sea potter has been a drag on their earnings no announcement there of a sale or a joint venture that's likely where the stock is trading down there's the closing bell we are sitting right at the lows of the day the dow down 33 points good afternoon welcome to the "closing bell." i'm wilfred frost. >> and i'm contessa brewer in nor sara eisen along be mike santoli, cnbc senior markets commentator. we are in the market zone and you can see the day's action on the right side offi ieyour scre with the stories still coming up on the tabs at the bottom off r your screen. >> let's check at how the markets finished at lows

the dow down 0.14% or about 40 points the nasdaq down 0.7% the russell did hold on to a fractional gain of 5 basis points health care utilities, the only sectors meaningfully higher with information technology and communication services at the bottom >> all right we're looking for earnings results from snap, from chipotle texas instruments, and whirlpool. we'll bring you the numbers and instant analysis plus, a big interview coming up in this hour. we will have a live and exclusive interview with the ceo and chairman of nike, mark parker you don't want to miss that interview. it is coming up in just a few minutes' time. >> joining us to talk about the market down is head of investment at aerial investments and still with us, along with mark lehman, who's the president at jm key securities nice to have both of you today mike, set the scene for us >> i think off little bit of the normal push/pull of earnings with some of the headlines like

mcdonald's dragging a little bit. but more than that, the market itself has kind of been churning in this same area for a while. it's been struggling to get a lot of fresh impetus, especially with the growth stocks just pulling back in this rotation out of growth. here are highs of s&p out of the last six days. 3,114, 3,008 and 3,003 maybe there's a little bit of resistance, but the average stock was up today more stocks are up and down today. it's not such a negative thing across the board it's that the index level has hard a hard time >> sector performance? >> the growth stocks coming down, financials outperforming it was a value flavor to it >> mark, what's your take on the levels that are seeing at the moment, the relax level of the vix? >> it's interesting, with as much bad news as we seem to be hitting that the market is still close to that all-time high. and there are lots of reasons to be exaccusing the market right now. and that's without any really great news and i think it's kind of

impressive and we've seen some of the leadership shift, which is also a good thing for the market some of the heavy, heavy multiple stocks have contracted. >> we've got a slew of earnings to come today. what about the ones we've seen already. do they support the market levels >> i think they've been a little bit for the than people's expectations we had recession fears and rate going down as much as they were. i think given meauted expectations, they're just fine. they'll tell us where they're headed, with the big growth leaders of the market. i think that will be interesting to watch >> charlie, the earnings we've seen so far, is it helping to fuel the optimism that you're already feeling about the global economy? >> i agree that they haven't been one way or another that impressive slightly better, maybe, than very low expectations. i would point out three things -- there were three things weighing on things. the inverted yield curve, brexit, and tariffs. i thought i was going to come in today and have all three fixed, but the europeans and the english messed it up again >> the british, all over not just the english

though, in fact, you could probably blame the english more specifically at the moment mike, what about slippage? >> you did have ain't of yields coming in. and that's been a little bit of a prerequisite for stocks making progress, has been yields globally going up. and we pause there i would characterize it a as a pause i'm seeing earnings at texas instruments missing or getting hit. >> what are you wondering about in terms of sector performance >> we've seen a big contraction, those are the leadership through the last couple of years we're not saying f.a.a.n.g. on this show as much as we did in the last couple of three quarters, so i think that's going to be interesting to watch. also, i'm watch smofg the performance of some of the recent poips of this year. that's the other big story in 2019 some of the hangovers from some of the unicorns and the

absorption from some of those stocks will be interesting to watch. we had the news on uber and lyft today, which was really fascinating. >> more on that in a bit but t instruments are out. eric chemi's got the numbers >> check out this stock. it's down 10% right now, texas instruments reporting a miss on the top line of the revenues number we have an eps number right now, but that is not comparable at the moment to the analyst estimates. but check out the next quarter guidance it's very weak and that's what's moving the stock down right now. you can see it down 9%, as much as 10% a couple of minutes ago. wilf, back to you. >> mike, a bit more digging to do on that epps number, but guidance soft, as you were saying how much impact will this have on the sector? >> and i'm just looking anecdotally, intel indicated down about 4% in after hours i want does seem as if it's definitely going to pull them back a little bit. because semiconductors has been one of the key areas you've looked at and said, it's really hard to get too bearish. when jpmorgan is hitting a new high, semiconductors are

working. you can see here, this is going to be a gut check for the group. and i think the question is always going to be, how much of a bellwether is texas instruments in various areas of semis versus just being a bit of a one-off. >> you like the semis? >> in the words of charlie munger, i have nothing to add. >> mark, your take >> for those who say there's a global slowdown coming aboard, you have good fodder for it. this is a proxy for people who want to say, there is a global slowdown heading our way >> more earnings to come first, let's get to bob pisani for the stock winners' circle today. bob? >> we were 15 points from an historic high, wilf, when the brexit vote seemed to take a lot out of the sales let's look at the home builders. it's very simple here. you've got order growth, 13% low rates, strong demands, another new high for pulte

the home builders are the leadership group they are the leadership group that's out there banks have now reported most of the big ones or at least reported their earnings out. and we've been getting new highs. jpmorgan, new high bank of america, pnc, all of which have reported. usually you get a sell-off after the first week that's not happening this time that's a good sign there elsewhere, industrials at new highs as well. we haven't got a lot of the big names out yet, but deere hit a new high today dover, jill tool works, all new highs in that group. procter & gamble, great numbers. core eps growth, and a percent or two actually does matter for them sherwin williams is having one of the best years in a long time 13% earnings growth this year. the stock is up better than 30% and good earnings bet for them,

as well. guys, back to you. >> thank you for that. you know, mark, when we were talking about industrials, they have been under such pressure. are investors just looking for a reprieve >> i think most people who have those kind of global names in their portfolio have been worried, worried, worried that any whiff of it being less bad than people thought will take stocks a lot higher. and those relief rallies in a lot of stocks. all we talked about all summer was how things are slowing down, how tariffs are going up, and how the trade war is going to kill anybody and any whiff of it being slightly better than that is the reason why we are near all-time highs. >> they get some of the regional fed reports like richmond and philadelphia and new york have been surprising if you triangulate from there, their overall ism looks like it's back above 50 if that all holds up that would suggest it was a little bit of a scare a shake out on the industrial front. that's right when we got panicky about it going below 50. >> what's your overall level of

bearishness and kind of overweight/underweight on u.s. equities at the moment >> we think you got to pie stocks and like them when people are nervous and be nervous when people are excited and bullish and right now, we would say peopleare nervous about the economy. and what's cheap are cyclical names. what's expensive are growth names and interest rate sensitive names. so i would tell you, what you really have to be careful about is a significant move higher in interest rates, with trillion-dollar deficits, with people competing to devalue their own currencies we could return to closer of historical averages of a 4% ten-year bond. >> and right now there's such reliance on the power and strength of the american consumer all the -- just the chatter about recession alone, does that add an element of fear that might discourage -- especially heading into the all-important retail season for the holidays >> i agree i think the consumer has been tested i think relatively resilient

i think the economy is chugging along just fine. and there are lots of little things that could add to upside. we didn't even talk about the fact that more insurers are going to put more money into obamacare and the rates are going down next year health care is a percentage of our economy. and some of the waste and stuff we'll get out of the system over next decade is going to be a huge catalyst for the market but again, i think most people are more worried than they are optimistic right now >> mark lehman, charlie, thanks so much for joining us appreciate that. up next, the ceo of six flags will break down the company's earnings he'll weiginh on the company's earnings and bid for rival cedar fair "closing bell" is back in 90 seconds. so servicenow put your workflows in the cloud, huh?

mm-hm. your employees must love you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

welcome back breaking news. nike is announcing that longtime ceo mark parker will step down from that role effective january of next year and john donohue, the ceo of service now, will take the top job. donohue is also the former ceo of e bbay and has been on nike's board since 2014 parker will remain at the company and become executive chairman he has, of course, been with the company for four decades and has been ceo since 2006. in just a few minutes, we will have a lye and exclusive interview with mark parker about that announcement right here on "closing bell. so much to discuss him, including this, well, top of the

list, this huge breaking news that he is stepping down >> we'll get to that shortly in the meantime, snap earnings are out and julia boorstin has those numbers. julia? >> reporter: contessa, snap beating on the q3 metrics for the third quarter, growing its users to 210 million in the quarter. that's compared to the 207 million that analysts had expected that was at the top end of the company's target range and its guidance now, it also beat on the top and bottom line, revenue sbrooincre by 50% that compares to the $435 million expected and earnings were a loss of 4 cents per share. that was a penny better than the 5 cent per loss expected guidance for q4, they're expecting profitability on an adjust basis in the quarter, but the midpoint of the guidance for the first quarter, both in terms of revenue and in terms of

adjusted earnings is midpoint is below analyst consensus. we'll continue to dig through and get back to you with more. back over to you >> an extended trading snap off by 2.3%. >> i think middling guidance is probably the expectation for the after-market move, along with the fact that it has been a little bit of a sloppy take for tap. i don't think it's about just people giving the thumbs now for the numbers today. it's a little bit heavy, because of the texas instruments news and what happened with facebook today. but it seems like, you know, the operating metrics for the quarter itself were okay >> mike, chairman and ceo mark parker, has been ceo for some 13 years. been at the company for four decades. overseeing some fantastic growth and performance for the company. stepping down effective january 3 will remain in his executive

chairman new ceo coming in with a lot of focus on the digital side of the business >> and that's one way john donohue's background links up with what they're looking for. he's definitely known as a good operator, manager. i think more of a consulting-type background in other words, it's not in the nike kind of entrepreneurship model of following along, you know, in the founder's footsteps or anything like that. i think it's interesting not a long succession runway that's my first observation. he's talking about stepping down in january and we'll have to see what we make of the rationale. it seems like the market is taking it okay, though >> not a long transition and it's been a huge area of growth >> it's been really where all the excitement in growth has been recently. >> the experience with ebay, paypal, but not specifically a

brand experience there, something that is a crucial part of nike, something we can discuss with mr. parker coming up >> and it's a singular culture this is the first true kind of outsider, even though he's on the board, who will be in control of this brand. >> so nike, as we said, with that breaking news, mark parker, chairman and ceo will be stepping down effective in january. he will be joining us live and exclusive in a few moments from now. you don't want to miss that. meantime, more earnings out. chipotle kate's got the numbers >> we're looking at a really strong q3 here for chipotle. beats across the board eps coming in at $3.82 adjusted. that's a 60-cent beat. revenues, $1.40 billion. the street was looking for $384l billion. the company also saying that digital, that's an area that it's really been focusing on, is up 87.9%, accounting for 18.3%

of sales in q3 the company also said it opened 25 new locations during the quarter. and seeing a lot of success with chipotle so those are its drive-throughs where you can mobile order ahead of time and go pick up your order in what it's calling the chipotlane we are also going to speak to ceo brian niccol exclusively tomorrow around 1:00 p.m. on the exchange and hear much more from him on all of h. >> kate, thank you for that. and almost 90 percent growth in digital. if that's where you're putting all your eggs in this digital basket, that looks like it's paying off >> absolutely. and chumt sharipotle shares gotd up a little bit. so this positive response was there. right now it's picking up what it lost today. >> in lieu of mcdonald's >> and mcdonald's was a little bit of an overhang

i think the story is in tact for chipotle and it's been a positive one >> we'll get back now to more details from snap's earnings julia boorstin has been looking through those for us julia? >> wilf, that's right. snap posted evan spiegel's prepared remarks ceo evan spiegel saying that snap's reach and frequency is growing. saying time spent and viewership on our content platform reaching a monthly audience of over 10 million viewers in q3 and total time spent by snapchatters watching discover increasing 40% year over year he also says that each daily active user opens snapchat 30 times per day on average snapchat shares are down over 2.5% one thing to note here is it looks like they're seeing stronger average revenue per user in the u.s. than they are overseas and want to note here that coming up on monday, i'll be sitting down with snap ceo evan

spiegel in an exclusive interviewer on monday. >> snap users have a lot of time on their hands >> they do, so do all social media users and all millennials these days i guess it's not surprising overall. we've got a lot earnings alert. it's six flags eric chemi has the result for us >> not the same issue as all of these people hanging out on snapchat, because six flags down about 7% in a pretty big earnings miss. eps, 20 cents short of what the street was expecting revenue is a $20 million miss. $621 million was the actual short. they did mention in an increased number of base pass users. that was up 2% but it meant per capita spending was lower at the theme parks this year compared to a year ago. there you see stock up now, stock down now only 4% that's a little better than the 7% it was down just a few minutes ago. >> all right eric, thank you for that and joining us now, in a cnbc exclusive, for more on those earnings, is six flags ceo

jim reid anderson. first of all, jim, thanks for being here run us through the quarter >> it was another record quarter. so we had nine record years coming up to 2018. and we've had 37 of 38 quarters that are record quarters i think the expectations are high in simple terms, the eps miss that was described just now is a result of a tax benefit, state tax benefit that we had last year, that we no longer had this year so that's the simple explanation. attendance was an all-time high for the quarter and year-to-date revenue, an all-time high, quarter, year-to-date. quarter and ebitda. >> earlier this year you made a bid for cedar fair, a competitor they have declined the offer are you going back to the table to see if you can sweeten the pot. >> let's be crystal clear, we don't comment on rumors, which is what this is, and we never comment on m&a, but i want to

address very clearly that there is no bid for any company that's out there. we're in the not process of negotiating anything we do look at all possible deals and we have the capability to do it opinion but we will never put ourselves in the position where we would overpay for a company we're very disciplined financially and at a time where we might do something, we would obviously announce that. but we're not in any process right now. >> is more scale and with it more pricing power something you'd welcome? >> it's a very good thing. and consolidation is something that has potential for the long-term. but we have the ability as a company, you know, we've done this nine years in a row records. no other regional theme park company has ever done that and we can continue to register those lords on our own in time, there's the potential for scale consolidation. >> we're heading into halloween, i've noticed and have been at a number of theme parks recently that halloween is becoming increasingly important is this your equivalent to what the holiday season is in retail? >> yes, so we lead in innovation

in the industry. it's in our dna. holiday in the park is a christmas version that we have of this. frightfest is the halloween version. and we have it at 15 parks and it's been growing every year and the fourth quarter has now become one of our strongest quarters and we gain our most increases in the fourth quarter. and it's booming skpushd go visit. it's my favorite favorite time of the year. >> jim, we may have to do that >> i think i'm giving people a ride down there. >> we get a lot of scares in the market >> exactly >> still to come, an exclusive interview with nike ceo, mark parker, who just announced he will be stopping down in january. that live exclusive interview coming up. you don't want to go anywhere.

more big news coming in from nike and eric chemi has that for us >> it's a little bit of a domino effect here. we just learned that john donahoe is leaving service now to become the ceo of nike, where jim mcdermott is going to become the ceo of service now that stock dropped a quick 13% a few minutes ago. it's now down about 7% after hours. there you see it down 10%.

very big drop for service now, as they've got a rapid and maybe unexpected change of ceo right now. back to you. >> eric, thouank you very much o that let's get over to mike santoli for his third dashboard of the day. >> "wall street journal" today highlighted the fact that the prevalence of odd lot shares this is trades of less than 100 shares each has surged lately. and now it's been in a long-term uptrend. look at this more recently why is this going on in the old days, it used to be retail trades. in the old days, it used to cost more to buy a smaller share. that went away it's mostly the trading algorithms that use that to execute it look at this the average price of s&p 500 stock is at a record high. it's up to 140 therefore more expensive to buy 100 shares the bottom line, dollar value in

the stock market hasn't changed that much. it's been very steady. it's not really changing the overall level of activity, but the way things are executed has changed quite a bit. >> thank you very much. coming up next, a ceo change at nike, outgoing ceo mark parker will joining us exclusively to discuss why he's stepping down in january, will become the executive chairman after four decades hs e'had at the company. we're back here in a couple of minutes. minutes. you don't want to miss that.opuo mobile banking and e-commerce... trade and travel surge between emerging markets. every day, our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. we believe in education built for all people.,

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time now for a cnbc news update with sue herrera. >> hello, contessa hello, everyone. here's what's happening at this hour william taylor, the top u.s. diplomat in ukraine testifying behind closed doors before three house committees "the new york times" reporting that he told impeachment investigators that president trump held up security aid for the country and refused a white house meeting with ukraine's leader until ukraine's leader agreed to investigate the president's rivals democratic presidential candidate elizabeth warren joining a chicago teacher's rally. this as the city's teacher's strike entered a fourth day. she expressed her support for the teacher's union and said, if elected, she would make an $800 billion investment in public schools. exxonmobil facing trial in a lawsuit by new york attorney general, accusing it of misleading investors about the risks of climate change regulations to its business. protesters lining up in front of the courthouse ahead of opening

statements and jeff bezos announcing that his blue originals space company is partnering with lockheed martin and northrop grumman to bid on the nasa contract to land humans back on the surface of the moon by 2024. he spoke at the international aeronautical congress in washington that is the news update this hour i will send it back down to you guys wilf >> sue, thank you very much. now, a big change in corporate america. nike ceo mark parker is stepping down, effective january 2020, when he will become executive chairman he will be replaced by service now ceo, john donohue, who serves on the company's board and is former ceo of ebay, joining us is mark parker, the ceo and chairman of nike mike, good afternoon to you. thanks so much for joining us. >> absolutely, yeah. >> so, mark, first question, of course, is why now

>> well, we have a great, great leader for nike coming in. and that's john donahoe. he is absolutely the right leader for nike and what we're looking forward. he's the proven ceo of three successful companies he's no stranger to nike and we feel that he's actually the best choice to come in and actually usher this next wave of growth for nike. he's an extraordinary talent he's been on the board, so he's very familiar with nike over the past five years. we've worked closely together on the board. but also, just as part of our strategic planning process, so he's -- john's been very involved with the senior management team outside of the board process, and into the strategic planning process as well particularly around digital transformation he is -- he's coming in with a lot of experience around consumer digital enterprise

technology, global strategy, leadership he's a great developer of talent he really clicks a lot of boxes that we're looking forward to add horsepower to nike we've got incredible horsepower already, but john comes in, adds horsepower, and i think he's going to help us accelerate our whole digital transformation and some of the steps we're taking to become more competitive >> mark. you mentioned the world "digital" a lot. should investors have a big takeaway that this is going to grow significantly and grow margins alongside as your direct-to-consumer has been doing already? >> yes, digital has been -- we have used that word a lot. digital transformation it's really a key part of our strategy it's going to enable this next level of growth. it's really about transforming our whole value chain, with areas like digital product creation, consumer demand

sensing and responsive manufacturing, as well and we feel like it's also driving new models as well we're really using digital to help transform the company and lift our ability to actually compete and grow our usiness it's having a profound effect. and this is all about accelerating that strategy >> what does that mean for our retail partners. the footlockers of this world? >> well, they're kucoming along with us. the retail partners are actually going through their own digital transformation it's the partnership between nike and our right partners to evaluate the consumer experience and serve the consumer better at point of sale, elevate our brand presentation this is all part of what it takes to have a tighter partnership between nike and our right retail partners. >> in terms of your future involvement as executive chairman, i noticed john doesn't

have specific brand experience, will you be helping him with that how involved will you be day to d day? >> i'll be very actively engaged working with john as a partnership. one of my main focuses is to make sure that this transition is smooth and successful as possible so i'm really look forward to engaging with john day to day. he's already familiar with the senior management team there's a real strong bond and relationship between john and some of our key leaders. so we feel that's important. my time, i'll be working on brand, of course, i'll be involved with that part of the business i have a personal passion as you may know around products, around innovation and design. we have part of our strategy is what we call 2x design or 2x innovation and who knows, may know that will go to 3x innovation i think there's so many more opportunities in the innovation space. i've never been more optimistic about that and i think that's something i'm

looking forward to really diving into, in my role as executive chairman, amongst other things but it's really about making john successful in the role and really making this transition as smooth as possible >> mark, you were forced to shut down the oregon project recently, due to a bit of an alleged scandal. i've got to ask, is that related to the timing of you stepping down at all? and either way, we'd love to hear your response i think this is your first chance to respond publicly to that whole scandal >> well, first of all, this has absolutely nothing to do with that situation it's -- you know, the succession planning is a really important part of any ceo's role and certainly has been a part of mine so we've spent a lot of time over many months working on secession planning so this is not something that happens in a matter of weeks so it's really unrelated to oregon project or any other issues

this is really about me and the board really wanting to make, you know, build on the momentum that we've got you know, add the horsepower, accelerate against our strategy. and do it while i'm here and really in a position to lean in and make this as successful as possible so that's really where we are. >> i wanted to ask about the controversy recently involving the nba in china, the debate, as to whether companies should be making a profit in china, or if at the same time, their employees and their fans aren't allowed to speak freely about things like pro-democracy protests in hong kong. where do you and nike stand on that debate? >> we're obviously standing very close to the situation and like all of us, we hope there can be a peaceful resolution. we're in the midst of some very complex times and i think it's important in this incredibly

dynamic environment that we are very thoughtful and deliberate in every situation so i have to say, you know, i've been working in sports for four years of my life and i've never been more optimistic about the power of sport to help move the world forward and be a positive impact on people around the world to inspire, to unite. and that's where we're focused that's where we're focused >> reporter: how are you managing the tariffs, mark, at the moment are you passing it on to consumer are you able to move production? are you just stomaching the costs yourself >> well, we obviously focus on what we can control. the things that are in our power to really influence and we have been, i think, it's no mystery, that we have been about free and fair trade that's what we stand for we think that protectionism and excess in tariffs ultimately burden the consumer. so we're doing what we can to

move forward as a company and focus on the things that we can control. and that's really running our offense. we're making moves here and there to make sure that we're in the best position possible we haven't seen any dramatic impact from the tariffs at this point. and we feel like we're in a great position to manage through that but we're -- you know, we don't take that for granted. we're staying close and we'll continue to try to work the levers we have and build on the momentum that we've got. >> mark, you mentioned the power of sport and i feel like i can sneak in a soccer question, because sarah's not here and i wanted to ask, whether you feel like the success of the u.s. women's soccer team at the world cup is something that cannot only inspire a new generation of female soccer players in theu.s., but male soccer players, too. >> oh, absolutely. you know, i think this started back in 1999, at the final, when the usa won that world cup in very dramatic fashion.

that was a big impetus for women's sports, but also for football or soccer, as we call it in the united states. and this is no different i think the impact that the women's world cup has had and the victory that the usa has put on the board and the way they did it and the media attention around that, and fan base, the excitement, the energy around that has been absolutely fantastic. i think it is another catalyst for women's sports, but also just sports in general >> mark, thanks so much for joining us and congratulations on an incredible tenure at the helm of the company. and enjoy the final few months and good luck being executive chairman thank you very much. >> thank you thank you. >> mark parker there, the chairman and ceo of nike as we just said, he will be standing down, effective in january. we should mention, the next ceo of nike, john donahoe will be on "mad money" tomorrow evening you do not want to miss that,

6:00 p.m. eastern time all right, we're still in the middle of an earnings afternoon and whirlpool is just out. leslie picker has those numbers for us >> these earnings causing whirlpool shares to decline as much as 4%, although they've recouped some of those losses in the last few minutes or so it was a beat on the bottom line, 3.97 per shareon an adjusted basis versus $3.89 that the street was expecting but a slight miss on the top, 5.09 billion in the quarter versus 5.13 billion that analysts were expecting. but what really causing that decline that you're seeing in after-hours trading today is that they lowered their fiscal year gap earnings per diluted share guidance to 16.80 to 17.55. that comes right after they had raised their earnings guidance just last quarter, but they said that due to product warranty and liability expenses, they now needed to lower it back down again.

back over to you >> and this is a company that's really been hit hard by tariffs and higher input costs throughout the year. so leslie, thank you for that. still ahead, tomorrow will be another huge day for earnings led by boeing, tesla, microsoft. find out what to expect from thosreltlar "osg e sus teonclin bell." do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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hi, mr. zuckerberg how did your meeting go? you said that you weren't the ideal messenger for libre. who do you think is? do you have any response to the expanded state investigation into antitrust concerns? >> well, that was elylan mui on capitol hill as mark zuckerberg departed a meeting apparently, you weren't getting much out of him. he was pretty stone-cold silent there, ylan. >> he hasn't said much as he's been leaving these meetings, but he has been putting that legwork here on capitol hill, clearly still on the charm offensive ahead of his big meeting

tomorrow i talked to congressman cleaver after he finished that meeting with mark zuckerberg, that zuckerberg came across as thoughtful, that he was receptive to some of the ideas that the lawmaker had around libre in particular. and that one-on-one face time with lawmakers can go a long way to diffusing the tension tomorrow, guys we know that last week, zuckerberg already met with the chairwoman of the committee, as well as the ranking republican so we'll see exactly how many fireworks might erupt during the hearing tomorrow back over to you >> did representative cleaver give you an indication whether minds can be changed by that coffee meeting was his? >> i think the importance is being heard and also capitol hill is a place where people want to be respected they don't want their concerns to be dismissed. sometimes it's tough to get that across during a very lengthy hearing, when you only have five minutes to answer questions. so again, laying that groundwork with lawmakers on both sides of the aisle has been a key part of facebook's strategy in winning

over friends and foes alike here on capitol hill. >> all right ylan, thank you for that >> let's go to -- let's get over to mike for the final -- i say that, what, four times a day and i managed to screw it up >> you sort of wear it out a little bit i don't know how it works, but we'll try to read the tells of some prior market cycles if you keep in mind, back in december when we had a 20% drop in the s&p 500 the bullish interpretation was, hey, this could be a mid-cycle pause, a 20% bear market, mini bear market that does not involve a recession. these are some prior instances of exactly that scenario, right? 2011, 1998, 1994 that's when the market lows were in that's when the fed in all of those cases pivoted from tightening to loosening. this tracks the current experience this orange line right here is the current experience these are all linked up with the market lows. and you can see it's actually tracking reasonably well

it's just the 1994 scenario. this is the average of all of them it's more or less going according to plan. obviously, there'll be a wide variation of how it goes from here, but right now it's holding on to that idea that in fact we had a recession scare, it got the fed easier and the markets have been able to rebuild. and as of yet, we have no recession. if i showed you the other instances of 20% declines where there was a recession, we're going down this way. that's still where the expense lies, guys >> so suspenseful, mike. up next, inside cambridge analytica, one of the whistle-blowers behind the scandal joins us next. we'll get her that i can on big tech, on febk,acoo and could it happen again happen again the upcoming election. ♪ ♪ everything your trip needs, for everyone you love.

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well it's been a wild after hours earning session. snap and chipotle reporting better and than expected top and bottom line results. texas instruments plunging after revenue miss and weak guidance and. and whirlpool shares lower after a lowered full-year guidance overshadowed stronger than expected profit sfl. >> facebook stock under pressure as new york state attorney general la tisha james announced that 46 other attorneys general plan to join herrant anti-trust probe of the company this comes at ceo mark zuckerberg is set to testify

tomorrow before the house financial services committee. >> facebook faced increased regulatory scrutiny ever since the cambridge analytica scandal broke last year. former us for a interview. the author of targeted, the cambridge analytica whistle-blower story of how big data, trump and facebook broke democracy and how it can happen again. brittany kaiser joins us good to see you, brittany. lay it out for us when they exposed the cambridge analytica scandal it was supposed to be using data without knowledge set you friend's d.o.t. rowe data without knowing it how could it happen again. >> right now lerngts are putting pressure on facebook because they have to answer for everything from how they allowed user data to be exploited by not just companies like cambridge analytic eu but even foreign actors last night mark zuckerberg was trying to answer how he would

stop foreign actors from interveeng in the dynamic but he famed to answer that the facebook is the biggest threat to our facebook and not just foreign actors >> why do you say that. >> specifically because it was only two weeks ago that mark zuckerberg decided that facebook is not going to censer politicians spreading disinformation weaponizing racial hatred and using voter suppression tactics. >> in terms of what you were involved with in your time at cambridge analytic eu, facebook's involvement with that was what, a little bit of ignorance as opposed to knowing wrong doing versus what you guys were doing at cambridge ant i can't eua was knowingly breaking the rules is that fair. >> i don't think it is i think facebook should have been prepared for the fact if a they allowed companies from all over the world. >> did they know what you were doing and willfully turn a blind eye? or were you guys covering your tracks enough this they that they didn't know what you were doing with data you took from them. >> they set up their friends achlt api so over 40,000 developers had access to you will at person data of users

without them having any knowledge of what it was being used for it's their lack of due diligence and negligence that ended up data being used in any which without customers knowing. >> what cambridge analytic eu a pitching, what were you pitching to the trump campaign? the ability to figure out which voters are most persuadable anibal able to send targeted messaging to change their mind and get them to vote for donald trump. >> do you feel like cambridge analytica was unique in 2016 or were there other companies in the same space are they all stamped out for 020 or not. >> you'll find out more in my book targeted about how i am really afraid for 2020 there is a proliferation of so many more companies just like cambridge analytic eu and a the problem with our data weaponized against us hasn't been solved. >> you were -- what do you say to the people that say you weren't a full blown whistle-blower, that you jumped ship and decided to sing and tell the truth on the story only

once it was clear that the ship was going down >> i would say it's never too late to do the right thing and i have been able to provide over 100,000 documents to investigators all around the world that have helped them not only figure out what happened but how we can solve the problems to protect ourselves in the future >> brittany kaiser, thank you for joining us >> thank you guys. >> thank you, brittany. >> up next the k teyhings every investor needs to watch heading to a new trading day when "closing bell" comes right back.

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welcome back major news from nike this hour pat mark parker is announced to be stepping down effective january 2020 and becoming executive chairman we spoke with parker a few moments ago about the making man taking on the ceo role moving forward. service now ceo john donna hue >> he has been involved with the senior management team outside of the board process into the strategic planning process as well particularly around digital transformation he comes in with a lot of experience around consumer digital enterprise technology, global strategy, leadership. he is a great developer of talent and clicks a lot of the boxes we look for to add

horsepower to nike >> and another big day for earnings tomorrow. let's get a check on what to expect from boeing, tesla and from ford. phil lebeau has that for us hi, phil. >> we are busy, contents o contessa starting with the boeing, the earning before the bell tomorrow the expect aches for the company to earn 2.09 a share the key focus, the 737 max as you look at boeing. they will focus on the conference call about what muilenburg ha to say about the max. when you talk about tesla it's about the company's gigafactory, the latest plant in china. expecting to lose 42 cents a share. but it's about the china plant as they get it up and running. shares had a nice move over the last couple months finally with ford, the expect aches and see the company will be earning 26 cents a share. but a lot of questions at the ceo about the turn around.

where is it? they've had problem was the vehicle launch, the ford explorer plenty of question base that curing the conference call reporting earnings after the well tomorrow. guys wab, back to you. >> phil lebeau thaengs for that. final thought, mike, crossthe session lows but small declines. >> watcher the semis tomorrow after texas instruments. >> out of time that does for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlook new york city's times square this is "fast money" "fast money." i'm melissa lie. karen finerman, dan nathan and two guy adami. tonight major developments you out of boeing. the head of the commercial airplane unit is out we'll bring you the details. earnings armt on snap, chipotle, texas instruments all stocks on the motivate we break down the headlines. biog n posting the pest best day in 20 years after the alzheimer's drug shows promise more the breakthrough. with you we begin with breaking

news on nike the ceo mark parker is ste