to session highs up by more than 2% s&p advising the rating on tesla to a positive from a negative. something to watch into the close here. >> always a good stock to watch. even on a day where the major averages are pretty calm. >> thanks for watching "power. >> "closing bell" starts right now. yes, it does welcome to the "closing bell," everyone i'm wilfred frost. uber, comments from the ceo coming up. dow down six points. 59 minutes left of trade. >> i'm morgan brennan in for sarah eisen. reports of a possible delay in the signing of a phase one deal. data taking a bearish turn as u.s. productivity dropped for the first time on a quarterly basis since 2015 and one bright spot hp rising 8% on news xerox

made an offer to buy the company. josh brown, wealth management. josh, great to see you today. >> what's going on >> s&p and dow basically hugging the flat line right now, taking a breather, i guess you could say, from the record run we saw earlier this week. >> i think you nailed it that's exactly what i see going on indices are stalling out given the run-up, i don't think, should be a huge surprise. rates are higher, which is interesting. lot of the big winners of the year, like iyr, xlu. anything rate sensitive also taking a breather. xlf is falling out, the financials indexing etf got above a 70 rsi for the first time in i can't remember how long that's an overbought index when was the last time we were talking about the banks being overbought you have this confluence of things it's perfectly natural keep in mind the big picture

caterpillar, the whole industrials xli, etf, all hit new 52-week highs yesterday. honeywell, new highs these are things that do not happen in the context of a bear market or recession about to approach tomorrow. so, i still believe we have to take the ebbs and flows of each day's news, try not to make any particular story into a bigger thing than it is. >> morgan, you know who he's talking to here. >> i know led us strongly out of the gate. >> tempting us tempting us. the big stories we're watching today. kayla tausche, uber's lock-up exploration and phil lebeau on the 737 max and the ceo's future at the company kayla, let's start with you. >> for the white house, it's still working toward a deadline of next weekend when the apex summit would have been held.

senior official acknowledges that may not be feasible as the two sides are negotiating terms and eventually a venue before those december 15th tariffs. the summit would likely be in europe where president trump would be in early december, expecting to attend the nato leaders summit in london being held december 3rd and 4th. for months, according to officials, he has suggested switzerland as the ultimate neutral location even as the u.s. was negotiating stateside locations with china we'll see if they get any official venue announcement in the coming days or perhaps the coming weeks morgan >> we'll be looking out for that, kayla. thank you. shares of uber hitting an all-time low as they get a chance to share sells since the ipo. leslie picker joins us. >> that's right, morgan. 1.5 billion shares unleashed from their lock-ups, representing 88% of their outstanding shares most people not surprised to see some red on the tape today, down

about 4% not everyone is selling their stock, the additional share supply is pressuring the stock, no doubt but the declines today could have actually been even worse. cnbc.com points out a third of uber's stock purchased privately is currently under water those investors may choose to hold on a bit longer with the hope of recouping their losses guys >> a quick softbank reaction do they have to write down uber day-to-day because it's listed is that already factored into what they've done or not >> that's a good question. i don't think they have to do it day-to-day as a strategic investment they'll do it on a quarterly basis or at least that's how they'll disclose it to the market it's unclear whether softbank itself was a seller in today's lock-up exploration. they had the intention to sell in the ipo itself if they triggered the over allotment

agreement. that wasn't triggered. they weren't able to sell at the time of the ipo because of the way the stock performed. it's unclear whether they're actual sellers this time around. i think it will be interesting to see, you're right, next quarter how they mark those shares moving forward. >> leslie, thank you very much. >> they don't have to mark much, by the way. >> once it gets -- >> call the prince of saudi arabia and tell him how much he's down. that's what we're talking about. i think anyone that is in the fund knows exactly where the price is. >> it doesn't matter because as we were told this morning, we'll see a c-shaped recovery. no problem it's going to bounce back. >> sure hope so. >> i thought that was an extraordinary comment. >> yeah. >> anyway uber is on the down part as well for the moment, relative to where it listed, of course rico's kara swisher was getting into a heated confrontation.

>> i think your business is economically unsustainable what is your aws what is the business that's going to take you, because you don't have the time. you don't have the patience, and you are pulled into this idea of what's happened with wework, which i think was the firewall that just fell what is the business that will bring you away from this, a similar fate >> our ride share business is our aws. >> the core one. >> the core one. we had 22% margins this quarter. when we look at our top five markets, even down margins went from 17% to 62%, all right and our ride share business in the past two quarters, 80% of my revenue growth ran through when i look at the next two years, my growth is going to be probably i'll do 8 billion in revenue growth hold on. 8 billion in revenue growth and

i need 3 billion to drop to the bottom line. it's about -- call it a 38% flow through. and i just demonstrated an 80% flow through in two quarters. >> so this is without -- >> you actually have to do the math and the math work. >> this is without raising prices and without paying drivers more a lot of people you'll still continue to get that pushback. >> no. this is all based on there's going to be some price increasing we're going to be going to that is willing to pay higher prices, et cetera. this is business as usual for us. >> josh, you were at dealbook earlier today. >> yes. >> what did you think of this exchange >> first of all i'm going to give kara a pass on the sunglasses there really was a glare coming in and she's a new parent. so maybe not -- >> is her style. >> it's her schtick.

she's so great what was interesting about that, the entire morning was ceos defending themselves johnson & johnson, boeing and dod daro comes up. in silicon valley, wall street, everywhere are these businesses like don't tell me what your revenue growth is. how much of it can you drop to the bottom line? he also had to defend whether or not uber eats was -- >> that's what got my attention. same methodology as the ride share business >> yes he said if i were up here two years ago, you guys would be all excited about uber eats. i know that, because i was and now you're more excited about ride share than eats and i can't control that that will go back and forth what the market wants but we think we'll be profitable on everything at least that's his story. he's sticking to it. the other notable thing, they asked if his business model gets wrecked in some of these

legislative changes come about the way they're paying drivers and the way drivers are being compensated and he points out they have different models in france, they're doing something different. they may have to pay health care here he thinks they'll be fine no matter what happens, it will just be an adjustment. i don't know if the audience bought it. >> if in a week's time it started to pick up again, having gotten through this -- >> share price pickup? >> share price pickup. is that significant to you >> no. >> or not really >> you have to ask yourself who is the buyer anybody who wanted uber badly probably already got it. they may still be there. normally you have a stock fall 30%, there are value funds that say all right, this is cheap enough for us now. $50 billion market cap much they're going to lose $8 billion this year. who is the buyer it's a very long time before you find a value that can make a value argument momentum funds aren't buying growth funds, arguably, they're

already in it if they want it. who is coming in to buy? i can't think of anyone. >> phil lebeau has the highlights from boeing's ceo. >> dave calhoun told us yesterday we have dennis muilenberg's back as ceo he was put on the spot early on and asked whether or not he has considered resigning here is what he had to say. >> i think it's fair to say i've thought about it but, to be frank, that's not what's in my character i don't see running away from a challenge, resigning as the right solution the way i grew up, what i believe in today and the values i try to share with me team is when we have challenges we face into them. these two accidents, they happened on my watch at boeing

and i feel obligated, i feel responsible to stay on it, to work with the team to fix it. >> dennis muilenburg also said he expects to lose tens of millions because he is foregoing a business as well as stock awards for this year, likely for next year as well. he also plans to make a donation to the victims' family funds shares of boeing under a bit of pressure as people continue to question whether or not this plane will be certified by the end of the year. back to you. >> boeing shares are up 2.5% over the past week muilenburg doing testimony for two straight days and calhoun coming to talk to cnbc yesterday, muilenburg today. the read-through i've gotten from investors is maybe we're starting to near the end of the worst of this crisis, the fact that they're coming out speaking publicly this week, is that an interpretation to be had here? >> they certainly want to get ahold of the narrative they lost the narrative on

capitol hill last week at the end of the day, what really matters to everybody is can they stick to this timeline? can they get it certified by the faa by the end of the fourth quarter? if they don't change that timeline, i think you see the stock at least stabilizing where it is, perhaps moving higher we have six, seven, eight weeks until the end of the year. a lot of things have to happen between now and that certification. >> phil, i hate that they even mention that they've given up a bonus, as if a bonus was guaranteed in the first place. it should be for good performance. >> right i hear what you're saying. >> it would be something to say if you were giving up part of your base pay but to mention the bonus as if that's a bold thing to do is frankly embarrassing. either way, phil, if we consider the peak of the pressure of those hearings last week and the comments quite clearly of the chairman to you yesterday, is this now a point where dennis muilenburg has come through the peak to the threat of his

position and starting to at least improve in terms of sentiment toward that and holding on to his position now >> i think you saw the stock move higher on dave calhoun's comments they were strong comments he made about how the board feels as dennis muilenburg to remain as ceo i still think it comes back to the plane. if they come out in two weeks and say we have to delay this until the first quarter or something else comes up, well, then you could see the pressure mount once again and people say here we go again there's more bad news. so it really does come down to the certification process between now and what they're targeting by the end of the year. >> phil, as always, thanks so much. >> you bet. >> great interview yesterday as well presidential hopeful elizabeth warren is pointing to comments from our exclusive interview with jamie dimon yesterday here on closing bell. we'll tell you what she has said and discussed. >> after the break, shares of

"new york times" are up, but pulling back sharply on earnings we'll speak to the cpa'somny ceo on a first on cnbc interview that's next. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ high protein. low sugar. tastes great! high protein. low sugar.

so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine. a new kind of credit card. created by apple, not a bank. with a better way to track where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet, there's this. nice. wheeveryone is different.ta, which is why xfinity mobile is a different kind of wireless network that lets you design your own data.

choose unlimited, shared data, or mix lines of each and switch any line, anytime. giving you more choice and control compared to other top wireless carriers. save up to $400 a year when you switch. plus, get 50% off when you buy any new lg phone. xfinity mobile. click, call or visit a store today.

with weelcome back to "clos bell." a challenging fourth quarter ahead, "new york times" ceo joins us now on a first cnbc interview. mark thompson, thanks for joining us you had a busy day with the deal book conference which we've been following closely. thanks for being here. >> we're very proud of this conference, plenty of news being broken here today. the conference is going well. >> look, we guided to a potentially challenging fourth

quart quarter. we did fantastically well a year ago. digital advertising went up a year ago one or two very big deals are not going to repeat in the fourth quarter we've done the deals we've done very similar big deals. they won't appear until 2020 there are reasons for that what i want to say is on the subscription side, now getting on for 77% of the business, we're very excited we're seeing real acceleration in subscriptions as noted in the times this morning and we think there's real further momentum to get out of that model we built already the biggest news subscription business there's ever been, i think we still think we've got real scope to scale even further. >> "new york times" is going to be part of that. do you think we'll look back on this moment of time and see it as a turning point in terms of the revenue model for digital advertising and for publishing >> yeah. a few years ago, there was a

moment when rupert murdoch and others managed to win the case for cable companies paying broadcast tv channels fees for their appearance on cable networks because of the value the broadcast networks in those days were bringing to cable. and i think the major platforms, digital platforms are beginning to recognize that the presence of really high-quality news brands like "the new york times," "the wall street journal" and so on makes a real difference to today's users, and whether that is expressed in license fees like this license fee which facebook is going to pass the next few years, whether it's expressed in other ways, i think both the power balance, we'll say the value balance between the silicon valley majors and publishers like "the times" is changing i think it's strategically quite an important day. >> do you have a feeling, mark, of what you expect over the long term revenue per article to be

via facebook versus directly via your own digital subscription app? >> sure, wilf. i want to say our thesis is the overwhelming majority of revenue for "the times" we believe will come from users who are in quite a deep relationship with the "new york times," coming to the times on our own digital assets. we need "times" journalism to be influential. we want people to be able to sample it, so they become subscribers of the future. of course, it's great if we can -- as we're making journalism an available example, if our partners can also be helping to pay the cost of making that journalism, so much the better to me it's both. the big thesis is subscription directly but also this other revenue could potentially help us. >> one final question, mark, on the subscribers. 4 million digital, 4.9 million

total readers including print. i know where the long-term targets are for ten years away. >> yeah. >> what about the next 12 months, do you expect it to pick up pace and drop off after the election is there strong correlation expected there which democratic nominee do you think plays best for your subscription >> we don't -- you know, we cover the news we don't try to, as you will, make the news or change the weather. look, a lively news cycle helps all news organizations, even cnbc but our model is not reliant on that we're doing so much more to news our slavery project which has been a big thing this year, we're producing a great valuable of news, comment, features, lifestyle and we're doing better packaging that and marketing it as digital subscriptions to the world. i hope we can get to a run rate

of 1 million new subscribers a year and having got to it, stick to it so the model doesn't just go on growing but keeps on accelerating as it grows. >> mark thompson, thanks for joining us today. >> thank you. up next, a bullish sign for housing? one firm just upgraded lowe's. we'll tell you why next. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere.

everywhere. everywhere. everywhere. everywhere. is that pgim, we see alpha emerging in the trendsete? driving specific sectors of outperformance. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to 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.

time now to get to the word

on the street. raymond james giving a bullish outlook on athletic detail nike had outperformed while resuming at outperform the group is well positioned for at least the next decade, saying long-term trends toward comfort redefine how consumers dress. >> deutsche bank updated black rock to buy. more favorable conditions through the 2020 elections and credit suisse upgrading lowe's, offering a compelling risk/reward. it also says lower interest rates could lead to increased demand that stock up half a percent josh, want to ask about the asset managers there do you buy into that thesis just because of bullish markets >> i really don't. i like blackrock i think they'll be right on that if you look at those three names, the other two are losing market share

blackrock is taking it blackrock, technically, is breaking the double top at 480 that's been a level of resistance there may be a retest. still nowhere near the mid 5s, which were the highs from the summer of 2018 a lot of financials have their old highs at those levels. 52-week high again, this is a company that has repeatedly raked more of the chips toward themselves. asset management right now is a cutthroat business blackrock ishares are doing the right thing. >> up 1.5% today 34 minutes left of trade at the moment dow is just positive up 4 points essentially, markets are flat. nasdaq down .3%. your last chance trade. >> after the break, new survey from goldman sachs new sentiment this month we'll dive into those results next. a check on bonds meantime.

u.s. yields pulling back for the first time in nearly a week as concerns about the china trade deal creep up. it was sophie's big day.

by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

welcome back 30 minutes left to trade and the dow is flat. data taking a bearish turn since productivity drops for the first time since 2013 and energy sector pulling back. time for a cnbc news update. sue herera has it for us. >> i do, indeed. >> hi, sue. >> hi, wilf. sobering testimony on how veterans and the elderly are being scammed out of millions of dollars and what more can be done to protect potential victims. >> the question of whether or not they get their money back is a sad conversation to have, but

in each and every one i've had whether it's my victor victims in the same case throughout the state, they knew they weren't going to get their money back. >> first lady melania trump visiting a boston hospital that uses cuddling to help newborns. very focused on their pioneering work it is part of her be best initiative. >> it is so important to acknowledge and show gratitude for what you are doing to help mothers who struggle with addiction and babies born with the syndrome. >> you are up-to-date. morgan, i'll send it back down to you. >> sue herera, thank you. it's time now for the buzz on the street. we've got new details we told you about yesterday, including robin hood users that discover a glitch to let them trade with

unlimited borrowed money kate rooney has an update on the story. kate >> hey, morgan absolutely the buzz. traders had the potential to either make or lose a ton of money this week. they took advantage of a glitch over at robin hood the hack was shared on reddit. let people put down huge positions without actually having money in their account to fund those few implications brokerage firms are supposed to have certain protections to avoid this but because they didn't in this case, legal experts i spoke to say the s.e.c. could, as they say, throw the book at robin hood for multiple violations reached out to both the s.e.c. and finera now to the customers if they borrowed too much and ended up losing big, the trader here is the one responsible for paying the brokerage back. robin hood could come knocking and eventually ask for that money. legal experts i spoke to are not expecting robin hood to pay

customers for any ill-gotten gains if they cheated the system here i'm told it doesn't quite go to the level of securities fraud but the customer is not able to pay robin hood back, it could result in a lawsuit at the very least. >> great story great work on this over the last couple of days i think this is absolutely extraordinary. social media style cheat code that you could apply to a computer game was enough to allow people to borrow this sort of money if this was a big bank that allowed this sort of glitch, the uproar would be enormous as kate completely points out there, it's quite possible that a consumer here could have lost an absolute fortune here. and i don't quite understand. >> no, it's not true you're wrong i'm sorry. >> in what way >> robin hood is going to pay fines. they're going to get in trouble. >> do you disagree if jp morgan wrongly allowed someone to borrow $1 million to invest in a stock that the uproar would be much larger? >> you're right about that part of it. i don't mean to say blanket

you're wrong but we need to distinguish between a securities fraud. >> of course. >> where somebody willfully and deliberately. >> of course. >> and then something like this where they just built a system that shouldn't have allowed for this just for people watching at home this isn't like robinhood getting people to take more risk than they want to. here is what these kids are doing. they're psychopaths. they figured out they could sell puts, take an option premium, use that to buy more shares of a stock and sell puts against those shares, use that to take a more option premium and on and on in a jacob's ladder kind of thing to the point where only a couple thousand dollars at risk they could take like a million dollar position. this is not something where somebody accidentally walks and falls into a hole. you have to be deliberately trying to do this. that's the first thing so it's not like every robinhood customer is at risk. i think it's important there's no way they wanted this. if one of these kids blows up an account, robinhood is out the

mon money. these kids aren't coming in to make a margin call for $1 million. i think yeah, they'll pay a fine let's not act like they're trying to hurt anyone. i think it's very clear, they have the most to lose. robinhood has the most to lose, and snoop dogg. >> of course i think robinhood is no way complicit in anything here nonetheless, there are important financial regulations that apply to the big guys. >> of course. >> and the uproar would have been huge if it was one of them. >> that, you're right about. >> you're talking about a start-up, a tech start-up. >> the following point i was going to make on this is that fintech has not disrupted the banking system as much as tech has in the retail space. this is sort of an indication of why. this is an example where consumers are making trades so they're the ones risking stuff. >> right. >> say robinhood in the future, which is not happening at the moment, wanted to be a broader bank online, consumers look at this and say do i want to give my savings to a company like this that's why they haven't seen

deposits. >> not only are you right about that, on the flip side if you're one of the thoo these people who are saying let's disrupt the bank, you may find it's way less glamorous and romantic. >> right. >> these are not fun businesses to be in because of regulations and consumer protections it's not the same as let's go do grocery stores this is way, way more involved. >> so we actually kind of agree on a lot of this. >> i guess i don't like -- of course robinhood should be held accountable for this, but it's not like people got hurt these kids are out of their minds. they're looking for ways to take reckless risks and, arguably, they're doing it to impress their friends on a chat site it's totally immoral behavior on behalf of the users. it's not really robinhood being immoral. but they've got to tighten up. >> our thanks to kate rooney as well check out her full story online,

cnbc.com. moving on, records hovering in record close territory. institutional investors think positive momentum will continue, reversing bearish sentiment in october, according to goldman sachs monthly marquis poll joining us with more on that is tony pascarello. thank you for joining us. >> good to be back. >> broadcasters are improving their sentiment at the moment? >> that's correct. for the better part of the past six months, our institutional clients identified this very clearly on the cautious end of things this survey was conducted monday and tuesday and ratio of bulls to bears came out at 2-1 in the prior survey we had recorded near record levels of investor negativity. >> why do you think the shift? is it the fed cutting rates.

>> prices went up. >> i would say price matters when you're at all-time highs, that certainly colors investor sentiment. you hit two important points during the month of october, plus 2% month for s&p, plus 4% month for nasdaq, two things, the direction of travel on brexit and u.s./china trade turned more positive this is very important we're always looking with survey data for a few things. change in narrative. we're looking for extremes and where there's a wedge between sentiment and positioning. sentiment very clearly swung to the bullish side when asked about do you expect to change your risk in the month of november, only 12% of our clients said they expect to add risk the moral that have story is perhaps clients are more bullish in sentiment. >> stepping away from the survey data, to ask about trading in the last couple of weeks, the

last month or so, have volumes been very low? >> i would characterize volumes as steady. realized volatility has come down a lot if you were to measure the realized moves, actual moves in stocks, bonds and commodities, the lows of the past ten years, the market hasn't forced you to transfer nor add a lot of risk client risk appetite has been picking up slowly but surely. >> what would you expect to see the end of the year? >> marketwise. >> yeah. >> remain pretty favorable i say that because number one, u.s. growth continues to prove more durable than expected, 2% for the next several years would be our forecast. the fed has pivoted in a very meaningful way as we sit here today, they've cut rates on 75 basis points the real fed funds rate is neutral. despite all-time high in stocks and 50-year low in unemployment, an asymmetric easing toward the dovish side.

lastly, the direction of travel on brexit and china, trade tension is much more positive. there's still gas in the tank and the path of least resistance for the next couple of months is higher. >> tony, thank you for joining us. >> thank you up next, we've got your last chance trade. >> and after the bell, we'll get earnings from roku, qualcomm, up about 50% year to date we'll be back in a couple of minutes. 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 over what's popular. focused on helping me achieve my investors' unique goals.

can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. ta♪k to your advisor or consultant ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg. most people think of verizon as a reliable phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity.

like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. ♪

i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives. 17 minutes left to go. the dow is essentially flat. what's your last chance trade? >> berkshire hathaway. we don't talk about the stock that often. >> yeah. >> it's approaching a major breakout point if it gets above 225, that has been resistance. stock has been consolidating for all of 2018 and all of 2019 and we are at the upper end of that

range. notably, the company has now $130 billion of cash on its balance sheet. a lot of people would look at that and say even if there's a market event, even if there is a correction, whatever the case may be, berkshire is now in the best cash position it's ever been in. this is precisely the type of financial company that could actually take advantage of a storm in the market. it's an interesting stock from both perspectives. brkb keep an eye on that as it breaks to 225 there are no sellers nobody is down in the stock. i think it's pure blue sky from there. >> do you see it as more of a defense east of play longer term then >> it's not really defensive in the sense of a bond being defensive. >> yeah. but i mean cash pile, the fact that they have so many different type types of businesses? >> correct this is the type of stock, it has pro cyclical stocks to it, but then it has a huge cash forward, aaa credit. it has the ability to take advantage of a market storm.

if you think about it from both perspectives it makes sense to be an investor. >> you talked about the banks starting to peter out earlier. can berkshire still break out if the banks pull out >> it's in the financial sector, trades more like an insurer. >> i don't mean because of correlation. i mean because they hold such big positions in jp morgan, u.s. bank corp. >> huge investments across the financial sector the way to think about -- i'm talking about attackable trades. the way to say it is you have a 76 rsi on berkshire hathaway which most people would say is short term overbought. i disagree you can be in the 70s on a breakout it should be slightly overbought last time berkshire traded with an rsi north of 70, you have to go back to last september, more than a year. i would stay with this one as it breaks through i appreciate that argument that it's susceptible to the banks

but it's a conglomerate and there are other people, parts to the story. >> up .3% today. nasdaq down a little more, .4% up next, uninterrupted coverage of the final moments of trade. tonight catch alex rodriguez of "back tinhe game" 10:00 eastern right here on cnbc "closing bell" back after this ♪

♪ not much, how about you? >>are you answering my text in person? i am...yeah. >>lol. come on in. this is tech that helps you be there. the nissan altima. now offering the most tech-advanced engine in its class.

♪ rowithout the commission fees and account minimums. so, you can start investing wherever you are -

even on the bus. download now and get your first stock on us. robinhood. you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. less than 11 minutes left in the trading day.

all the major averages are down ever so slightly now in a closing bell market zone, commercial-free coverage of all the action going into the close. >> mike santoli is here to break down all these crucial moments of the trading day is he joining us from the schwab impact conference in san diego good afternoon to you, mike. good to see you there. josh brown from wealth management as well let's kick things off with softbank reports first quarterly lost in 14 years. >> blame it on the vision fund, billion dollar unicorn this had to write down its biggest investments, 6.4 loss to the group and uber which continues to flounder as a public company. perhaps most interesting and worrying was his comment that there may be other potential wework like funds, he pointed to wag, the dog walking app other questions around portfolio

companies as well. if the other run out of money, too bad. he promised this morning no more rescues. >> dee, it's okay, right wework is on the down part of what is considered to be a v-shaped path. >> that's right. he says he has his best people on it, which have turned around spring, he says. of course, that's up for debate. one analyst called it an unmitigated disaster he says they will turn around wework by cutting costs and stop growing basically. >> deirdre, thank you for that in terms of the headline question about valuations, he was pointing out, it was never actually 47 billion. i think that's kind of fair. maybe it was touted to would you know day possibly get there. i think the fall from grace is severe and sharp, but whether it actually reached 47 we don't

know. >> if they could have brought it at 47, they would have. >> no doubt. >> the only reason it did happen was uber had uber traded to 70 rather than 30, closed ipo, adam newman right now is being celebrated all over the place and wework has had -- believe me when i tell you, that's what changed the sentiment shift from lyft and uber not being hot when they hit the public markets is that people read the s-1 that wework filed. prior to that, we were taking it. >> wework was not going to hit 47. >> i don't know if that's true. >> 20 or 30, which would be way better. >> we don't have the counterfactual i'm telling you, if they could have gotten a 30 some odd billion valuation for it, they would have. >> of course they would have. >> it's their job. they're underwriters they work for the issuer. >> let's talk about an old tech name now hp soaring, sources tell cnbc's

david faber a cash offer, market cap of 8.05 billion, less than a third of hp's. combined companies could save more than $2 billion in expenses mike santoli, what do you make of this? there wasn't a lot of talk or emphasis, at least from an investor or analyst standpoint around these issues of growth. it seems to be around cost cutting and synergies. >> two very cheap old tech stocks in terms of valuations right now. xerox proposing a merger and set the terms in a way that they would raise enough debt to make it seem like perhaps a premium being paid to hp shareholders. but really it would be about putting them together, figuring out what business lines you can shrink strategically, improve marg margins and become kind of a cash cow business as a combined

entity it does make sense on paper now. numbers being thrown around are not exactly a bonanza in terms of today's shareholders. it would make sense from an investment banking point of view. >> six minutes left of today's session. after the close, we're getting reports. jon fortt has a preview. >> looking for 71 cents revenue, $4.7 billion, then a guide in the current quarter to something similar, 72 to $4.7 billion. last quarter qualcomm missed looking forward to 5g in 2020. it will be interesting to see how that affects the dynamics of the earnings this quarter. last quarter they talked about oems holding off, looking to go

now apple back in the fold for qualcomm we'll be watching that as well to see how that affects the guidance and the tone on the call i'll be talking to ceo steve mollenkopf and sit down with him after the earnings call. i am sitting here at qualcomm in san diego, guys. >> looking forward to that we'll see you soon, jon fortt. josh, up 40% year to date. how much is this the bigger bounce we've seen in semis >> very high correlation between qualcomm and the smh, if you want to track etf. probably i could name 10 other semi conductor companies that have had outstanding years the other thing with qualcomm that's interesting, for a long time this stock has been in the penalty box. >> yeah. >> very similar to an ibm where

it's large cap, huge company where perceived as younger, sexier tech stocks did nothing there's-to-some extent there's a catch-up element to the rally it's had i hope it gets above 90, $100 a share, looks like resistance and then we'll revisit what we've seen has been in line. >> we'll see what kind of numbers we get after the bell. also we'll get results from roku after the bell, up 350% so far this year. julia boorstin has more on what we can expect there. julia? >> quite a roller coaster year with the growth of the streaming market, driving more users to the platform as well as new rivals, announcing and launching. they are expected to gross revenue to report a loss of 28 cents per share. two other key metrics to watch, number of active accounts projected around $32 million and

average revenue per user expected to come in at nearly $22 over the last 12 months. back over to you. >> julia, thank you. mike, i mean, we talk so much about the streaming wars roku has really been the name that at least so far this year has benefited the most from. those shifts in streaming. >> absolutely. beingkind of a neutral vehicle to get over the top streaming apps it's interesting the company has been public for just over two years right now. part of the bear case was this might be a transitional technology it's going to be embedded in televisions. we're not necessarily going to need what they do. but just, you know, the more independent streaming apps that get introduced, they're pushing that as the actual bull case saying we're going to be the hosting venue. we're going to be embedded in hardware and, of course, selling all these things for a while it could still work

in terms of sentiment when you're posting 40% top line growth. >> also, mike, as you well know, it's recovered from a big pull back, 180 down to 100, up to 140 or so. as we wait those numbers after the close. we've got two minutes left dom chu has more on the markets. >> markets are developing right now, it has been a fairly stable session. when you have the dow and the s&p 500 hovering just around maybe a few basis points up or down throughout the course of the day, it may not surprise you to know that the market internals for the new york stock exchange show that the markets are pretty stable. 1400 shares, decliners, 1500 back over to you. >> dom chu, thank you. less than two minutes left to go here send it over it rick santelli for a check on bonds rick >> two day of ten says it all. mid resistance 180s. we fell back had a solid action government bond ten year at the

best level since may but it hasn't closed at zero or higher in positive territory since early march. two day of the dollar index getting up to 98, hasn't closed above 98 since mid october let's go to the red paint at nasdaq, bertha coombs. >> thanks very much. i'm red, too down draft led by microchip, earnings missed saying the china trade situation has caused weakness in all geographies. fang hits a new low. diamond back hit by lower prices while bloomenburg has sailed. not a lot of industrials caterpillar, united technologies, all of them to the

down side. stocks weak, nice rally for oil recently chevron down 1.7%. we did have nice consumer days they were okay all right overall. tyson, smuckers. there's the closing bell dow jones industrial average recovering flat on the day s&p up two >> if you're just joining us, welcome to "the closing bell." i'm wilfred frost. >> i'm morgan brennan in for sara eise in and mike santoli is joining us. >> eeking out a fractional gain, albeit less than ten basis points slight decline for the dow nasdaq down by more than a third

percent. health care top of the pile. >> josh brown, ceo wealth management is along with it as well as victoria fernandez cross mart global investments. mike, after a series of record highs earlier this week, is the best way to categorize the action we saw on the market today stocks taking a breather >> yeah. i think the market is digesting a pretty aggressive move s&p is up 6.5%, 7%, august lows closer to 8% was sentiment going too giddy? indexes looking a little stretched causing a pullback so far it's just going sideways and churning a bit and trying to cool off a bit as opposed to pulling back hard. we'll see if that continues. the thing to continue to watch is whether sentiment and people's positioning gets too aggressive after this pretty

strong rally we've had. >> victoria, we're up record market highs does that mean you've been taking profits >> we've been taking a little bit from names that we've had disappointment on earnings texas instruments is one cisco is another we're not selling out of names completely we still like the companies. turning them back a little bit where we have some opportunity and finding new names, we think, will have better growth going forward. comcast is a name we added to. a new name we had in our portfolio earlier in the year, we added to that because we've had these new highs and we're looking to go sideways a little bit, we're taking this as an opportunity to add our more core value names like coca cola and mcdonald's. >> josh, the biggest moves we saw in the averages today came on the news of headlines around u.s. china trade and the possibility that signing potential phase one could get pushed back to december and there's debate as to where such

a meeting could even take place. >> right. >> how much is trade continuing to dictate market moves more broadly? >> i think it moves the market most of what you're seeing is algorithmic. their program to buy or sell in the morning depending what gets tweeted. as somebody who -- i manage money for people and we don't discuss it we don't have conversations about the trade war. it is what it is we've been in this paradigm for two years. yet the market is making new highs. yesterday you had a new record high in small cap value. the companies in the small cap value index do not transact with china. so i just think it's important, focus on the big picture by the way, if you look at 30-day returns, you have to really search hard to find a country market, somewhere in the world that is not green on the month. so you could say that's because trade is thawing sure whatever narrative you want. the point is stock markets around the world are breaking

out, 52-week highs, all-time record highs emerging markets look better, et cetera, et cetera. consider the context of each day's news and don't overreact strapilati extrapolation will have you offsides. >> morgan, the stock moving higher by 4%, at least initially after hours on a beat on the top and bottom lines, reporting revenue of $4.8 billion versus 4.7 expected and eps nongap of 78 cents versus 71 cents expected also the guide a little stronger than the street was expecting, guide to 4.8 billion in revenue at the midpoint and 85 cents nongap eps qualcomm 5g handsets in 2020 are going to be 175 to 225 million

units. also pointing out that overall chip shipments were a bit higher than the midpoint of the prior guidance and the licensing business will coming in a bit stronger than the midpoint of prior guidance so, given all of the headwinds that qualcomm had previously mentioned such as huawei, not paying qualcomm as much as they would like weaker demand in china these numbers looking good to investors, based on the tamped down expectations from last quarter, guys. >> jon, thank you so much for that qualcomm trading up by 5%, roku slipping significantly swrooel a deep dive into those numbers in a bit up 5%, we talked about it briefly beforehand do you like this does it give you encouraging momentum for these types of stocks >> qualcomm is idiosyncratic

it has its own challenges. it kind of has the market almost to itself in some of the types of chips it sells. i don't want to take too much from this and spread it like fairy dust across every other microchip or technology stock but, yeah, of course you would rather see a big bellwether have a good report than a bad report. >> 5g numbers are interesting, shipment better than expected, licensing business better than expected 5g piece in particular, that's certainly been a big focus it's seen as one of those big u.s. players and through the lens of qualcomm. >> that's really a 2020 story. we probably haven't even seen all the momentum we might from that. >> yeah. we'll see what comes of jon fortt's conversation with the ceo. >> mike, what's your take on where qualcomm stands at the moment and whether it can significantly break out and drag the rest of its sector with it

>> i think the market has been giving it a lot of credit for continuing this momentum you were talking about how it had been in the doghouse, settlement with apple. it's no longer the cheap stock it used to be. the market is essentially saying this is your key play on 5g. obviously, they have kind of a broader macro take on enhancements and royalty streams. the whole semi group has traded a bit on the hope that the cycle will make a turn for the better. at least the guide for qualcomm is enough to keep the bulls in charge. >> let's get to roku, as we said down some 13%. julia has been digging through them for us. julia? >> roku coming in at 261 million versus estimates of 257 million. a hair better than projections, 22 cents loss per share.

not comparable to the estimate we'll not be comparing that. if you look at some of the other key numbers here, active accounts the company reporting 32.3 million active accounts, an addition of 1.7 million and better than the 31.9 million expected and average revenue better than expected at $22.58 that's versus expectations of $21.68 guidance does seem to be pretty much in line with expectations the company has raised its revenue and gross product outlook, reflecting stronger performance and says they're raising expectations to the midpoint between 30 million from 35 million that's where the earnings outlook mid point coming down by 5 million reflecting a continued investment in the business as well as a $5 million headwind due to the acquisition of that

company da tchtkatsu and what's behind that dramatic move lower. >> josh, we've got noise around the loss of 22 cents better than expect ed account numbers, rpu is better up, 350% year to date, is it that the bar is set so high? >> yeah. i mean, yes, of course it's 17 times sales. this is like -- but they're doing what they said they would do i do want to point out a year ago, last october, it went from 75 to 32 and had absolutely no meaning at all the stock was right back by

january. so, again, these types of names, they draw a lot of trader interest they tend to be highly volatile, but not every move you see is the right move i would stay tuned on this one i don't know that it finishes even the night session down 15%. >> all right we'll keep watching it meantime, expedia's numbers are out. seema mody has that. >> miss on earnings and revenue, $3.38 adjusted versus the estimate of $3.80. revny at 3.56 billion. the estimate, 3.58 billion perhaps most important is third quarter gross bookings for its home rental platform that competes with air bnb. up 5%, better than last quarter but its revenue growth for verbo up 13%, slower than the 17% growth it saw last quarter we know this space we're watching closely ahead of air

bnb's ipo next year and it's a highly competitive industry. holdings has its own home rental platform we are looking at the stock in extended trade. >> seema, i'll take it thank you. mike, we've been having this conversation the last couple of days about home sharing and regulatory risks that seem to be setting in jersey city, you saw the vote take place there yesterday in light of air bnb but when you're looking at a name like expedia, there's risk there, too, right >> yes there's obviously risk there what seema said about it being a crowded space and one where the booking tools are not necessarily in the best spot in terms of reaping the economics of the whole travel booking transaction, it seems like what the market has been telling you, we're not at a point in the cycle where they're the ones in control. i think it has been under some pressure it's been a little suspect for a while now. these numbers not enough to really change that story, at

least in the short-term basis. >> mike, what's your take on this roku move, that despite most beats on most of the lines, big, big trade down? >> i guess i would just echo what josh said it's stretched very tight in terms of valuation most of the value of roku right now is about the very long-term opportunity and what big a piece of ultimate tv world they end up owning on a quarterly basis roughly as expected results might not be enough to basically have these wide swings in supply and demand two-year chart of the stock and air pockets in the stock and then kind of rebound i do think it's more about positioning ahead of a number that was just not good enough to get renewed optimism into it. >> victoria, all the earnings you've gotten so far, they're tech facing, right qualcomm you're talking about semi conductors

expedia, online travel and bookings or roku and you're talking about streaming. anything you like or value to be had in either these names as we're seeing the big moves in the after-hours trade or industries in general? >> well, of those names, morgan, qualcomm is a name we have in the portfolio on the equities side talking about it earlier, they did come out with strong earnings there we have to remember their investor day is coming up in a couple of weeks. they still have their cfo search going on i think there are a lot of issues around qualcomm we'll be watching carefully they reported at the high end of that guidance. we think there is more potential going there. you're look at these other online items, upside potential going forward with cord cutting for roku, online travel experiences is what the consumer is really looking for. that's good for expedia. i think it will be more

idiosyncratic. >> wynn is out hi, contessa. >> hi, wilf. revenues are coming in, slightl in line. but the number to pay attention to in this report, and this is what they pay attention to in these casino companies, is the adjusted property. wynn macaw was 148.14 million. it came in at 50 million wynn palace, analysts were expecting 171.7 million. it came in at 64 million these are the numbers driving the shares lower right now, down 2.9% in extended trading we know there have been big headwinds. v.i.p. has been under pressure wynn will be likely to talk about how they're trying to turn their attention and how they're improving in their marketshare in mass.

we'll dig through the numbers and bring you anything else that stands out. >> the new launch of boston will have to pick up the slack? >> those numbers came in slightly higher than analysts expected it did somewhat offset the drag from macaw but simply is not big enough to offset that big of a loss. >> contessa, thank you for that one. wynn trading down. another one straight away before discussing trip adviser. seema has it for us. >> another disappointing report from a travel operator, 58 cents adjusted well below the estimate of 69 cents. revenue came in light. q3, the cfo saying it was more difficult than we anticipated but we are taking action and in light of these results the company is saying it's announcing a comprehensive cost structure valuation, declaring a special cash dividend of $3.50 per share and turning an estimated $490 million of capital to shareholders.

they're trying to take strategic actions to appease stockholders. it's down 4% in extended trade year to date chart will show you it's come under significant pressure, down double digits and we'll be on the conference call when it gets the full story here back to you. >> seema, thanks for that. after-hours decliners now, josh. qualcomm the one bright spot does that concern you for tomorrow do you think there's enough negative momentum out there? >> not necessarily well-known companies in terms of we know the brands market cap wise, they don't have a big impact on anything wynn has been a terrible stock for 5 1/2 years, peaked in 2014 at 400, has not been near that since. in no man's land in terms of its range, somewhere right in the middle there's nothing specific to the wynn story that impacts other companies. i just think that compartmentalize that. it's not -- gambling is not a great business, believe it or

not. macaw especially put that aside trip and expedia stuff, people might say that's a read through to the consumer. no, it isn't people are traveling plenty. hotel stocks were fine this is another cut-throat business, asset management in the prior hour, online travel booking is cutthroat it's not a great business. to see these companies stumble, i don't think we want to take that and say there's an issue with the consumer. that's not what's going on. >> news alert on purdue farmer let's get to meg tirrell. >> here in bankruptcy court, maker of oxycontin, saying it essentially caused the crisis. thousands of suits against purdue pharma essentially because purdue side argued that the resources were going to get

drained as they tried to reach a potential settlement here. and at least half the states have opposed the settlement offer that purdue has put on the table. it's essentially to try to give them time to reach agreements and due diligence to potentially at some point get to an agreement. the settlement purdue put on the table they value at $10 billion, going into the bankruptcy process and coming out a public trust where assets would be deployed to help fight the opioid crisis. the sachler family would contribute at least $3 billion to that settlement offer as well and through this temporary stay, the litigation against the sacklers would be frozen until april. nobody has come to an agreement here a holding pattern in litigation against purdue and the sacklers. back to you. >> meg tirrell, thanks for the

latest on this. >> we've got square earnings now, too we'll go to deirdre for those. >> full year to reflect its sale of caviar. adjusted revenue of 602 million versus 596 million the street was expecting, adjusted etf of 25 cents, nickel beat. fourth quarter, full-year guidance lower than the company previously guided. shares in the after hours have been bouncing between gains and losses as investors digest that and try to figure out the effect of that caviar sale. gross payment volume, gpv, a little bit above expectations, 28.2 billion versus 28 billion square cash app. it's been putting a lot of focus on this revenue, excluding bitcoin, more than doubling year over year. and the release, the company says that they are increasing their investment and go to

market initiatives to drive continued growth after hours we're seeing shares slightly up, .8% over the last 12 months they are down 20% back to you. >> deirdre, thank you thanks to josh brown, victoria her fan nez and mike santoli up next, roku bull on results. qualmmco's ceo about the quarter. "closing bell" is back in 90 seconds. so servicenow put your workflows in the cloud, huh?

mm-hm. your employees must love you. thank 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.

14% or so after reporting earnings moments ago for more on the numbers, let's bring in faumtom forte. good afternoon to you. tom, why is it trading down so much >> looks like it's investor sentiment. it's been a terrible quarter grub hub went down 40% last week and saw big pull backs in wayfair, etsy and pinterest. i think it's a victim of investor sentiment especially in the midcap tech space. >> mark, do you see it the same way? what do you think of these numbers? >> i would agree with that the beat was roughly 2% on revenue. last two quarters, average was

about 8% so that's more optical certainly it's a momentum stock. there was a higher expectation out there. if you look at gross margins, end users, they were stable. rpu was better if you look at the guide, revenue looks good to me gross margins are a little squishy. there will be some question on the call as it relates to gross margin generally speaking, this is obviously a volatile stock and i think if you look at the big picture here, what we like about it is it's still the best and most scaleable platform for ott or tv advertising for both advertisers as well as a place for publishers to sell inventory and 35 million u.s. broad band households which we expect to go to 50 million over the next several years. this has a long runway ahead. >> tom, the fact that we've just seen apple tv plus launch, we're poised to see disney plus launch and get more services behind

that, will that be a headwind or tailwind for roku? >> should definitely be a tail wind it's swimming with the sharks when it comes to competition they work with or compete against really the three biggest tech companies in the world in amazon, apple and google but net/net i see that as being more of a tailwind than a headwind. >> do you feel moving forward in the long term, this company could become a victim of its own success, whether that's because the tv manufacturers want to push back on the hardware that they make or over the-top streag apps >> that's a good question. question around that topic tcl has been a big oem for roku. they've both grown their success together i think there has been some discussions but if you think about it, they're both sort of

married together here. so if tcl wants to go another direction, i think a lot of that growth momentum that they've been piggybacking on with roku goes away for them i don't see that as a major concern in our eyes at this point. >> we'll keep an ear out for that investor call that's coming out in the next hour shares of roku are plunging 13% on the heels of those numbers. tom forte and mark, thank you for joining us. >> thank you big rally in financials over the past month, can they keep fueling the broader market rally? "closing bell" will be right back but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what.

it's unbelievable what you can do in the prius. toyota let's go places. ♪ as your life grows, so do your needs. ♪ and with bank of america and merrill, the benefits you get can grow, too. as a preferred rewards member, you can enjoy priority service and exclusive discounts... so your growing life can be more rewarding, too. ♪ what would you like the power to do? ♪

welcome back to "closing bell." major driver of the march to new market highs dom chu is at headquarters with more on this. >> we have a sector that's up 8% in that one-month span like you said best performing sector in the s&p 500. take a look at one of the main reasons why those financial stocks and specifically the banks have been moving higher is because of the steepening of the yield curve, dwinkser differential between long term

and short-term interest rates in the united states, as measured by the two, ten spread you see a steep drop-off subsequent rise. at the lows we were about negative 5 basis points for this yield curve. now we're up to 21, 22 basis points that means banks are doing a little bit better. take a look at this part of the sector banks specifically, wilfred, morgan, are doing really well. 9% gain for spyder etf this sector will be one to watch especially with, wilfred, the fed doing its part to lower short-term rates and that yield curve even wider apart. >> you said it all nothing more to add. great analysis thank you. the war of words between presidential candidate elizabeth warren and jp morgan ceo jamie dimon intensifying after he said her rhetoric was vilifying successful people.

latest details up next this is apple card. a new kind of credit card. created by apple, not a bank. with a better way to track where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet, there's this. nice.

high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein bars. try lemon cake.

is that pgim, we see alpha emerging in the trendsete? driving specific sectors of outperformance. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to 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. time for a cnbc news update with sue herera. >> the house has released the transcript of the testimony bill taylor last week he directed officials to tie

foreign aid to trump's demands that ukraine open an investigation into the biden family and the 2016 election senator amy klobuchar is the latest democratic candidate for president to file paperwork to be in the new hampshire primary sheechlt arrived at the courthouse in concord to cheers. >> the argument is that we are a country of patriots and we put our country first and that there's a lot of people out there, including our fired-up democratic base and including independents and moderate republicans who have had -- they don't want this guy as president anymore. >> and, as they say, it's the most wonderful time of the year, the time when the aldi wine and beer advent calendars go on sale people camped out for hours at this location in ohio where temperatures dipped to about freezing the wine calendar features 24 unique wines from regions around the world while the beer calendar has a variety of

imported beers in 11-ounce bottles, i should say. >> 11-ounce bottles. great. so it's not a full bottle kind of day >> right. >> do you open it in the morning like you would your normal one >> you know, i've never had that kind of advent calendar, but i probably wouldn't open it in the morning. >> well, you could still open the door and then know what you've got. >> that's true. >> for the evening. >> and you could pair it with whatever you're making for dinner. >> exactly i like this a lot. i didn't know that. >> i don't know. i prefer chocolate that's just me, though. >> i'm with wilf. >> sue, thank you. >> thank you it's been a very busy session for after-hours earnings qualcomm surge, roku plunging but lowering the midpoint of its guidance square shares are volatile, despite beating the top and bottom lines and expedia lower because of weaker than expected

gross bookings. moving on. yesterday i sat down exclusively with jp morgan's ceo jamie dimon and asked him about senator warren's commentary and harsh words against big business and capitalism here was his response. >> you really have to ask her what she really means. she used some pretty harsh words, some would say vilifies successful people. i don't like vilifying anybody we should applaud successful people a lot of people come to this company for opportunity, choice and success. we want that for everybody that's a little different than paying your fair share and how the taxation system should work. that, i completely understand. america was founded on free enterprise freedom and free enterprise are interchangeable. you can't separate them from each other it doesn't mean they can't do more it doesn't mean they didn't make mistakes but i think we should applaud that and people have very specific things we should do different, then we should

think about doing them different. >> senator warren tweeted in response last night saying, quote, it's really simply, jamie dimon and his buddies are successful, in part, because of the opportunities workforce and public services that we all pay for. it's only fair that he and his billionaire friends chip in to make sure that everyone else has a chance to succeed. that was the first tweet the funny thing about that, i don't think there's anything in the first tweet he would disagree with, whether it was his comments in the past more broadly. her second tweet, the fact that they've reacted so strongly, so angrily, to being asked to chip in more tells you all you need to know. the system is working great for the wealthy and well connected and jamie dimon doesn't want that to change i'm going to fight to make sure it works for everyone. in this tweet, i don't think he was angry yesterday in his comments, far from it. i would say he doesn't want a total change to capitalism he said yesterday, quote,

changing the complete nature of how you run a corporation, absolutely not he said things like that quite strongly, but i don't think angrily. the interesting thing about this debate, we mentioned this slightly yesterday clearly we know jamie dimon are never going to vote for senator warren but there are some things that they are advocating themselves, which do overlap with senator warren. it's just getting all a little bit too personal, which we understand in an election year and social media age but there are actually some things in there which they agree on not everything but a few things. >> the big takeway, senator warren is responding to cnbc she's responding to all these interviews on cnbc bill gates commenting on elizabeth warren and her concept at dealbook conference. >> have you talked to elizabeth warren >> i have not. >> would you want to >> i'm not sure how open minded she is, or that she would even be willing to sit down with

somebody who has large amounts of money. >> gates also said he has paid over $10 billion in taxes and if he had to pay $20 billion it would be, quote, fine. speaking of taxes, robert frank joins us now with new details from senator warren's proposal. >> interesting saying he wouldn't support a wealth tax but would support other higher taxes on the wealthy warren planning to raise over $2 trillion a year for that medicaid plan, an annual tax on the appreciation of stock or assets, even if you didn't sell it right now you only pay capital gains tax when you sell an asset that's gained value. 100 shares of apple, up about $100 this year, your gain would be $10,000 the tax on that would be $2,400 currently if you sold them under warren's plan, increases the capital gains tax rate, you would have to pay a tax of $3700 this year, even if you held on

to the shares. warren says the tax would only apply to the top 1% of households and would exclude retirement accounts, as she says ultra millionaires and billionaires won't be able to earn income on giant fortunes year after year without paying a penny in taxes guys, back to you. >> robert, i have to say, particularly as we discussed this so many times in this post qe era, where most people who have stocks are on the more wealthy end of the spectrum than the poor end of the spectrum and the qe has benefited those with assets as opposed to fundamental economy, that this area does need to be taxed more but taxing before you crystallize gains is crazy. >> whether it needs to be taxed more or less is a subject for policy experts, but bill gates said at dealbook maybe to your point there are these fortunes, in gates' case he has added $38 billion in wealth this year because of step up and charity,

that will never be taxed almost all of his $100 billion fortune will never be tacked some argue he deserves that. that's his money to do with what he will. there is this accumulation of wealth from companies that will never be taxed and that's the issue many agree on, including jamie dimon and bill gates the question is, how do you tax it step up in capital gains through a stronger estate tax but not the wealth tax, or an annual tax on capital gains. >> robert, as always, thank you very much. >> thank you, with wilf. switching focus, news on mcdonald's and its new ceo leslie picker has that for us. >> new mcdonald's ceo chris kempczinski came under fire for not owning any shares of mcdonald's that's changed he bought 285 shares on the open market at about $193.81 per share. that amounts to about half a

million dollars worth of stock for the new mcdonald's ceo back over to you. >> leslie, thanks so much. coming up next on "closing bell" much more in after-hours earnings movers, including how you should be trading qucoalmm after it beat its earnings expectations [grunting] [maniacal laughter]

gold. gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale. ♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

welcome back let's get back to jon fortt for more on qualcomm's numbers he has been diving into them for us. >> that's right, i'm sitting outside their headquarters and ceo stopped down and talked to me about these results the call will start in just a moment he said that he's more confident in the 5g ramp even than he was a quarter ago. the strength of that, you're already getting reports, for example, out of south korea, strong wireless market, that they are ramping 5g faster than they did 4g. q2, fiscal q2, not the current

quarter but next quarter qualcomm expects 5g revenues to start ramping. based on the projection that qualcomm has given for 5g in calendar 2020 and overal devices shipped in calendar 2020, it looks like they're expecting 5g devices to be at least 10% of overall mix in 2020, perhaps as high as 20% now he did say they continue to see weakness overall in china and other developed markets mostly because oems are holding back perhaps on launching strongly into 4g devices, keeping powder dry for 5g, working through 4g and holding back some. i asked him about the shape of the curve in the 5g ramp, will it be weighted more differently than other ramps have been he said no, not necessarily a different rating

i did want to say that their interim cfo is now permanent. >> thank you, jon fortt. shares up 5% right now you can hear much more from his interview with qualcomm's ceo steve mollenkopf tomorrow at 11:00 a.m. on "squawk alley. ed, thanks for being with us those comments jon just reported on 5g that revenue will ramp up the next quarter, 10% overawe mix will be 5g devices in 2020, is that what you're expecting? >> i think that would probably be the case. china is deploying it full tilt, in fact more aggressively than we are, most of the industry had expected even a couple of months ago. korea is doing it, too u.s., not so much.

and japan is you get these fluctuations around the launch of it. the question is not so much how many devices but for qualcomm, what's the mix, and how many devices will use their parts because china is ramping so hard and they're shutting down 4g development and putting it all behind 5g, and huawei is doing quite well there and now has access to american components, you'll see a bigger mix of products that don't use qualcomm's products. huawei doesn't and they're the leader you have to dig into that to understand how much the big picture numbers benefit qualcomm. >> licensing business better than expected for the quarter as well would you call this a turnaround or recovery? >> no. they adhered to new accounting standards, estimate their licensing revenue instead of using one quarter. this is pretty much in-line report upside, they did see guidance

due to licensing, which is an adjustment the problem with the licensing story, and it's kind of significant for a number of investors, they were being paid royalties through apple for most of last year you go back and look at how much royalty revenue apple was paying and looking what they weren't getting when apple was gone, the numbers reporting look like now when apple wasn't paying at all. it looks like the settlement they struck with apple included a very generous cut to apple's royalty payments you're just not seeing the uptick here. they gave guidance for fiscal year 19 in 2018 and they're far below that in the numbers they just posted because fiscal 19 is wrapped up here and those did not include the settlement with apple. they're far off the mark from where they thought they would be in 2018. we'll see how it plays out next year. >> ed, thanks for joining us great to see you. >> my pleasure. >> still to come, reed hastings will take the stage at dealbook

rnnference 5:00 p.m. easte time on "fast money. "closing bell" back anyway couple of minutes. servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

♪ ♪ ♪ ♪ - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu

by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. welcome back fox earnings are out and julia boorstin has them for us. >> hi, which will of fox beating expectations on the top and bottom line with adjusted earnings of 83 cents per share. 4 cents better than expected this on revenue growth to about $70 million more than projections, announcing a $2

billion stock buyback program, saying it expects a half billion of that to commence immediately. ceo is saying they are committed to deploying capital true a balanced approach of appropriate organ iic investment and akretive m. and jp. fox shares up 3.5% in extended hours. they were up as much as 5% earlier. back to you. >> julia bartzin. >> sticking with the media theme. disney on dock reporting results tomorrow after bee ll we break down the key things to we break down the key things to watch. nice, you ready to go again? are you ready, dad? i'm ready. imagine if your life insurance could help you live for today and safeguard tomorrow, so you're ready for anything. life insurance designed to protect generations of families.

that's the power of pacific. ask a financial professional about pacific life. are all n-gmo, sundown vitamins made with naturally sourced colors and flavors and are gluten & dairy free. they're all clean all the time. even if sometimes we're not. sundown vitamins. all clean. all the time.

welcome back let's get to contessa brew are for reports on erwin earnings results. >> coming in at jauchted 17 cents. we're not certain dmaes comparable to the estimates here the revenue barely below consensus expectations i want to clarify the ebidta number in ma:. erwin numbers came in 162.2 million. a decrease over 63 million over the previous year. the beat consensus expectations .wynn macao eentda came came down 24 previous year

and missing expectations the call starts shortly and well listen what they have to say about the headwinds in macao. >> that stock trading up 2% after hours. breaking news elsewhere on humiliate packard. >> hp issues a statement confirming receipt of a proposal from examiner ox yesterday about a business combination they did not specify whether the combination was a takeover proposal from xerox. but they say we have had conversation was kbeer are xerox about a business combination considering among other things would would be required to merit a transaction. they received a proposal transmitted yesterday. they say they have a record of taking action if there is a better path forward and will act with deliberation rb obey, discipline and eye toward what is the best interests of all shareholders

so confirming, sorry, receipt of a proposal transmitted yesterday from xerox back to you. >> all right, leslie, thank you. up next, the key things every investor needs to watch heading into a new trading day when "closing bell" comes back. ♪ ♪ ♪ ♪ ♪ ♪ ♪ fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity.

was a more secure diaper closure. there were babies involved... and they weren't saying much. that's what we do at 3m, we listen to people, even those who don't have a voice. we are people helping people.

♪ as your life grows, so do your needs. ♪ and with bank of america and merrill, the benefits you get can grow, too. as a preferred rewards member, you can enjoy priority service and exclusive discounts... so your growing life can be more rewarding, too. ♪ what would you like the power to do? ♪

we're out of time that does it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city times square this is "fast money. i'm mella lee. traders are raring to go tim seymour. karen finerman guy adami. reed hayesings is live at the deal book conference with andrew ross sorkin after a tough few months for the stock can they turn it around we'll bring you the can't miss interview straight ahead speaking of streaming dinelson out with earnings brands ewe disney plus service. why some options trade remembers betting on real magic. later up in smoke, a medical marijuana stock plunging more than 17% today after better hand than expected earnings is there relief in sight for the sector we gwin with the news make net flex ceo reed hayesings taking