they had a record sellout crowd where the sounders won the mls cup. congratulations to the sounders. the tv ratings were good, and good on you for the mls. >> jeff bezos is looking to buy team maybe a soccer team instead. >> "closing bell" right now. >> welcome to "closing bell. i'm courtney reagan in today for sara eisen i'm here at the alibaba post that company announcing record-breaking sales for singles day. we'll have more on what that means for the consumer in china and other key market-moving headlines you'll need to know in this final hour of trade 59 minutes left to go. >> let's take a look at what's driving the action today walgreens is the leader in the dow. or it was. it has been formally approached about a leverage buyout. boeing helping to raise the dow's earlier losses they could begin commercial services in january, and overseas in asia, the hong kong stock index fell 2.6% as

protests turned violent. also saw some stronger than expected inflation data out of china, raising questions about whether they can continue their stimulus the dow is higher, nasdaq down about 0.14%. of course, record closes last week, hence a little bit of treading water today joining us for the full first hour of the show, nancy the eveningl tengler so what's your take today? >> the earnings season wasn't as bad as feared, right we seem to be moving towards a more cyclical bias we had overweighted cyclicals earlier this year. it was kind of painful for a while. but it looks like manufacturing is hooking up. still some concerns about capex, which we'll talk about, and so we're modishly bullish and continue to find places to put money, which is always the test, right? >> we're going to get some of those picks later on in the show nancy, year with us for the

hours. we'll focus in on the big stories that we are watching here today josh lipton has details of a brewing controversy including apple's new goldman sachs credit card rahel solomon is following alibaba's record-setting singles day. and the biggest risks he sees to the market in 2020 we'll kick things off with josh on goldman and apple hi, josh >> reporter: so courtney, a new york regulator is opening an investigation into goldman sachs's credit card practices. that after a tweet from a tech entrepreneur, alleging gender discrimination in the new apple card's algorithms. the tweeteven attracted attention from apple cofounder steve wozniak, who says apple gave him the ten times the credit limit that his wife got goldman denies the allegation saying that it looks at income and creditworthiness, that it has not and will not make decisions based on factors like gender >> josh, giving your coverage of apple, what does this mean when apple hasn't commented specifically on the story,

whereas goldman sachs has? we're going to address all of the points of goldman sachs coming up later? i wanted to ask for your view on apple, particularly when steve wozniak, the founder, has commented. >> listen, we know tim cook is bullish on the card. talked about them last earnings call it is interesting, wilf. investors don't concentrate on the card, because they think it's going to have some type of big financial bank account for the company. it is not. but it is important for other reasons. it's important because it's part of that broader, faster-growing apple pay experience it's important because hopefully it makes your current fans happy. and if it's successful, it hopefully sells more hardware, too. no real surprise, investors clearly focused on the card. >> okay, josh, thanks very much. no comment from apple. we did get a comment from goldman sachs, which we're going to go into in more detail on all of the controversy that it implies with the tech entrepreneur who caught the eye of regulators and started this

whole story. david hanson will join us to talk about the apple card and that potential sexist bias here he suggests in its algorithms. that's coming up later this hour, 3:30 p.m. eastern time you don't want to miss that. let's now turn to boeing the company now expects deliveries of the 737 max to resume in december and phil lebeau's got more on that for us. hi, phil >> hey, wilf, boeing still has a number of hurdles it has to clear in order for the max to be certified and back in the air, but here's the timeline that pushed the shares much higher today. they expect faa certification by mid-september. if that happens, then they can resume deliveries of the 737 maxes that have been built and are marketed in the puget sound area and other areas around the country. then pilot training rules should be set by mid-january. theoretically, depending on how prepared the airline is, whichever airline it is, they could be ready for commercial service by the end of january. that doesn't mean that we're going to see the max back in the air anytime soon take a look at shares of american and southwest

remember, friday afternoon, both of them pulled the max off of their schedules until early march. we expect we'll probably hear from united, which has it currently in january, but it's likely to push it back as well we'll hear from them probably in the next week or two as we take a look at shares of boeing, it reports october orders and deliveries tomorrow morning and the focus will be on the 737 max, primarily, have we seen any cancellations or conversions which eats into the backlog. and thank you very much, phil. shares of boeing are higher by more than 5% well, alibaba setting a sales record for this year's singles day shopping event rahel solomon joins us with that story and those huge numbers >> so sales topped $38 billion in fact, in the first minute and eight second, sales topped $1 billion. last year, sales were closer to 30 billion it was an increase of about 28%, which is slower than yearspast but this is also the 11th year for the event. so perhaps some slowing in growth is to be expected just to give you guys a sense of

how large this event has grown and so quickly, the first singles day in 2009, sales were closer to $7.8 million after china, japan, the u.s., south korea, australia, and germany saw the biggest sales from this event. >> rahel, thank you very much for that now, income inequality has become a hot-button issue on the political trail and something jamie dimon was asked about last night on "60 minutes." >> last year you were paid $31 million. too high >> the board sets mine i have nothing to do with it >> well, you could return some of it. >> i could is that going to solve any of those problems >> i don't know. >> and deutsche bank says that wealth inequality could be the number one risk to the market in 2020 chief economist torson slok joins us now to discuss. what's your take on how much this at the moment is an issue and is holding back u.s. gdp and is it one of the issues that can be addressed to the upside >> i think the trend we have seen in wealth inequality and

income inequality and health inequality has for the last 30 years basically gone in the same direction and for a very, very long time, that has basically been swiped aside and investors have said, this is not something i need to worry much about we are now saying, it's not an issue for today or tomorrow, it's an issue that we think will become very important still in 2020 and '21, because investors need to have a view implicitly, is this trend going donate or will something be done >> why is it an issue in 2020 if not today? what difference does a couple of months make? is it because elizabeth warren is rising in the polls and says shu such a focus on this >> there's a lot of debate on the democratic side and if trump is re-elected, something else might be done. if the democrats win, something could be done. the short answer is we do kbpt something to be done one away or another. the question is what outcome do we have. and it does become important for investors to have a view on whether we think this is something. should i just ignore this or

should i begin to think about this could have some consequences >> and to follow the ripple effects, because there's more money that could be diverted towards taxes and less money to put towards equity markets >> it could be more government spending, higher government taxes. more spending on whatever, education, more spending on health different things that at least we have listed as things that can be done to try to do something about inequality >> i want to pivot to the rest of your report when it comes to the trade war itself, do you think the negative impact that's had on the economy has now peaked and it's only improvement from here? >> well, the key worry here of course, is that we have seen capex started to slow down, essentially, when the trade war broke out in the middle of next year, and capex and both of durable goods still trends lower. there's no sign of a turnaround. likewise with the ixesm and non-ism are still pointing down. it's a little bit too early for

us to take the champagne bottle out and declare victory and say this is all gone the big question is not so much whether there will be a signed agreement on phase one the big issue really is, how are ceos going to respond? have they changed their minds? do you think that this risk has really been eliminated or not. >> nancy, do you think we're seeing a bit of an improvement in that part of the economy? >> capex is our biggest worry, the lack of. we saw that trickling through in the productivity numbers this last report. we're also very worried about that i do think that we're seeing supply chains move out of china and maybe managements are focused on that, but ceo confidence is at recent lows and that is something that we think about every single day when we get up >> is at the lowest level in a decade and you do wonder -- the employment rate is basically the lowest level in 50 years and the labor market supposedly is doing very well. why is ceo confidence at the lowest level since 2009? it is really begging a lot of questions. >> but the market pmi numbers are positive and that's more domestically focused so i would probably take the

champagne out for thatone. i think it's never too soon to have champagne >> very quickly, your gdp forks for next year? >> so we have a slowdown in the near-term because we think these forces we just spoke about are holding particular capex and spending down. but we do expect as we get some closure tonight trade front, we will see some relief next year, but a lot of this depends on, what is the timing of that u-turn >> thanks for joining us great to see you still ahead, the man who sparked the debate over goldm goldman's apple card joins us to explain why he thinks the cards are sexist and up next, money is flowing into environmental, socialist, and government funds better known as esg funds, but they may not be as environmentally friendly as some people think we'll explain, coming up next.

just about 47 minutes left to go. the dow jones industrials higher by just a smidge here, about 15 points, though the s&p and nasdaq are lower at this point take a quick look at shares of t-mobile those are moving today on a report that ceo john leveragege in talks to become the ceo of

wework take a listen to this. >> who is there out there? well, somebody who's very close to the softbank people, trusted, loved by them, who's all dressed up and ready to go pretty soon is john legere yes, you heard it here first i think there are some rumors out there that are starting to spread that he's the perfect guy for the job. >> and sources telling cnbc's david faber wework is conducting a search and legere is among a number of candidates to hire as ceo. might have to drop the pink if that turns out to be -- >> the only thing i would ask about that is how his pay package can compare. market is about 7 or 8 -- assuming we take wework's to be about $7 billion, is about 8 to 9 times bigger for t-mobile. so whatever stock options he gets, incentives, it's going to have to feel big for a struggling company that is just five various companies and -- >> great point >> perhaps controversy when that

comes out, but maybe he'll do it for cheap. we don't know. we'll see. certainly a much smaller company today. maybe he can get the growth prospects back on track. stock picking may be back in favor as investors look for opportunities. but millennials could be throwing a wrench into the way brokage firms make money from trades kate rooney has more from san francisco. >> so brokerage firms have decided to ditch the fees associated with trading and analysts are blaming millennials. the younger generation had really balked at those $5 commissions. analysts say that firms had no choice but to make trading free if they wanted to grow their customer base. they were also feeling pressure from start-ups like robinhood which has attracted more than 6 million customers. you also have sew fyi, square, and stash that are offering the ability to trade fractions of a share. the average age over at robinhood is early 30 compared

to charles schwab average age is 60 to 65 so this doesn't mean that anybody is becoming a nonprofit. by getting more traders in the door and growing those accounts, brokage firms plan to make money off of interest on account balances and margin lending. they can also cross-sell some of their wealth management tools. wilf >> kate, have you heard from your sources how many customers robinhood may have lost after some of these other big arrivals have matched them on zero trade commissions? >> it's too soon to tell, but it's funny, robinhood launched a cash management account to sort of add a new feature i think it's putting pressure on the robinhood and squares of the world to add other features than just stock trading if their only feature was really free trading, i think they might be in trouble here but they've really ramped up other banking products and they have a bank charter in the works. we'll see what happens there >> it also remains to be seen how loyal particularly those

younger millennial-type clients might be to the brand and the first company they started trading with it would have been interesting ha had robinhood been a publicly listed stock i think you would have seen a much bigger fall in percentage terms for robinhood in terms of the importance it rests on that type of trading, but we'll see if they come through it. >> that's true you wonder about that bargain shopper. if they went to robinhood for zero fees, they also say they have some older people on that platform that are attracted by the design if the discount brokers can launch another cool app and have zero fees, you wonder about the loyalty. i think that is a question they haven't come out with user numbers since last summer. we say that 6 million number, but we don't know if there's some sort of attrition and i think it's too soon to tell whether this is helping the brokage firms. we haven't really seen trading data their whole strategy is to really bring in new customers, add account growth, and make money from margin trading. so, we'll see in the next couple

of months, though, if they're able to kind of make up for the loss in trading revenue in other ways >> kate, thanks so much! >> thanks, wilf. >> well, it's very good, of course, for a lot of people. as a millennial, you're welcome, everyone now you don't have to pay for trades well, investors have pour ed nearly $14 million into environmental, social, and governance funds this year but some of the large test funds may not be as environmentally first handily as investors think. according to the "wall street journal," eight of the largest ten sustainable funds have investments in oil and gas companies, although those shares usually account for a small portion. blackrock owns shares of exxon both of those funds have been outperforming the s&p 500 this year nancy, what do you make of something like that? i mean, how much do you think regulation may have to get involved in order for a fund to be able to call itself an esg fund and should it?

>> and it's the way you select an esg fund or your screens. it's a negative instead of an actual, okay, these companies are excluded you can kind of make up your own criteria so consequently, we looked at these funds because we wanted to offer them to our clients and said, you can't have exxonmobil in there because they bought carbon tax credit. my view is very unpopular, i think you ought to invest money to make money and give money -- give your profit ifs that's an issue that's important to you to charity or to the organization that's going what unique is important. you know, i started with south africa free investing was the first screen and we went to socially responsible and at least then you knew what you were getting but this is pretty open ended. the u.n. regulation -- >> some would argue that esg investing can lead to better returns in the long-term as well do you accept that or not? >> i do. i think any company that's managing their commodities and resources effectively and their people i think leads to better

performance. but i can't get, how do you have exxonmobil in an esg fund that's supposed to be environmentally focused and other oil stocks so we walked away from the segment. i don't know if that was the right decision, but we did >> it is a bit of a head scratcher to have a name like that in a fund thank you very much, nancy still ahead, tesla's big turnaround with the stock up 40% in the past month, we'll tell you why jeffries thinks there's still room to run. and on a sad note, kaiser permanente krell bernard tyson passed away this weekend in his sleep. hep worked at the company for 34 years. he'd been ceo since 2013 he was a frequent cnbc guest and joined us on "closing bell" just last week. he was 60 years old. dana-farber cancer institute discovered the pd-l1 pathway.

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welcome back to "closing bell." now time to get the word on the street jeffries raising its price target on tesla to $400 a share from $300. the firm says stabilization this year sets a better foundation for return to growth in 2020, revenue, and earnings shares of tesla are higher by 2.4% >> credit suisse initiating c w cheche chewy asout perform. the firm says the pet care industry is well positioned and

equipped to compete with larger players like zpamazon and walmat ubs going from $240 to $195 and deutsche bank raising it from $190 to $160, but still with a hold rating. so kind of playing a bit of catch-up to a good share price move we've already seen. the firm is basing this on the 2020 product cycle and higher expectations for gaming centers. nancy, which do you want to pick up do you think this makes sense to you or is this a bit of a catch-up >> it's a little too expensive for us, even still, after the sort of muted performance this year i mean, they're in the right space and i think when data center reengages and they start seeing growth there, the stock will do well, but the multiple is super high and we look at relative price to sales ratio, it's off the charts into our sell range >> where do you stand on tesla these days >> so we're out, as you know i've talked about that a lot so i think it's going to get harder for musk and company from

here there are some really high-end competitors coming in. the porsche car looks awesome. and i think they're going to have a hard time showing growth and innovating at the same time and raising the capital to do that >> what about chewy? that's the last one of the three. is this a buyer for you? >> i'm a bit of an expert. i think they have a picture of my pets they're going to put up. i have four large dogs and a horse in the backyard. >> oh, my god. >> all posing rather well at once did that take you a while to -- >> i didn't -- my daughter took that picture, but it's -- look, it's a great space $70 billion in potential, you know, pet food sales they're entering pharmacy. that's $10 billion they've got 50% of online sales. i think the thing again, i still remember pets.com. so the thing for me, i buy all of my stuff, pet-related items from walmart and i can get other things when i do that online so -- >> can we go back to that photo. your dogs are bigger than your

horse. is that right? or is it the angle of the photograph the one on the right is huge >> i know. that is a great deiane, a mini horse, and the mini horse was a companion for my quarter horse who just died. but we think the mini horse was separated -- and it is a mini horse. >> it is >> it's tina turner. >> i was confused, otherwise >> those dogs are huge >> you need to get out of the pub, wilf. still to come, nancy will be picking a retail name that's up nearly 30% for her last chance trade. of course, 34 minutes left to trade at the moment. we're down a little bit on the s&p, up a little bit on the dow, improving throughout the course of the day we're off the lows >> a big guest coming up after the break. >> the new york department of financial services launching an investigation into goldman's credit card practices after tech entrepreneur accuses the bank of

discriminating against women >> if you look at who will take some of the blame for this, apple has a much better halo than goldman sachs >> what's happening is a pr nightmare, essentially, with these algorithms >> discrimination based on gender and financial services or any other protected class is illegal in new york and dfs said, we'll take a look, and o.at's what we're going to d >> the man who sparked the debate on twitter joins us live next on "closing bell. devices are like doorways

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just a touch over 30 minutes left to go in trade. here are the three things driving the action today boeing helping to erase the dow's losses on news that airlines could begin commercial services for boeing's 737 max planes in january. walgreens is another dow leader after reports that it has been formally approached about a leveraged buyout and overseas in asia, the hong kong stock exchange fell 2.6% as protests there that have been going on for months turned violent. it's now time for a cnbc news update with sue herrera hi, sue. >> hello, court. hello, everybody here's what's happening at this hour ukraine awarded a potentially huge oil and gas contract to two political supporters for energy secretary rick perry, just weeks after he recommended one of them as an adviser to ukraine's new

president, volodymyr zelensky. perry endorsed his friend from texas while representing the trump administration at zelensky's inauguration. an american citizen is among more than 20 isis fighters turkey is deporting back to their home countries the jihadists have been held at a detention center in southeastern turkey. most of the detained isis members are europeans. no word on the identity of the american french president macron marked remembrance day by placing a wreath at the tomb of the unknown soldier under paris's arc detriumph here at home on a sad note, two racehorses were euthanized and one more injured at the del mar thoroughbred racetrack in california veterinarians say the two horses who died suffered leg injuries that were inoperable you are up to date that's the news update this hour wilf, i'll send it back downtown

to you >> sue, thank you very much. goldman sachs under investigation by the new york department of financial services for its credit card practices after a viral tweet called out goldman's apple credit card saying, quote, the apple card is such an expletive, sexist program. my wife and i filed joint tax returns, live in a community property state and have been married for a long time. yet apple's black box algorithm thinks i deserve 20 times the credit limit she does. no appeals work. and apple cofounder steve wozniak joined in on twitter saying the same thing happened to him and his wife. goldman considered to the accusations saying, we look at individual's income and individual's creditworthiness. based on these two factors, it is possible for two individuals to receive different credit limits goldman not able to provide a guest for the show apple deferred comment to goldman, essentially making no

comment themselves joining us now, david heinemanner hanson, the author of the tweets that initially sparked this investigation david, good afternoon to you thanks for joining us. >> thanks for having us on >> talk us through what happened whendy you apply for the apple card, when did your wife apply and how did the responses you got differ >> i applied for the apple card soon after it came out and was available to the public. my wife was just as excited about the prospect of having a credit card that was protecting privacy, so she signed up shortly thereafter i don't remember the exact dates, but we signed up with essentially the same financial information. we both put down the household income, we both supplied the same information and have essentially the same credit record we've been married for over eight years and have held credit cards as joint accounts. and the outcome was just so separate that it made no sense at all

we tried to appeal that to apple and apple of course defers every credit decision to goldman sachs and we went through multiple rounds of trying to escalate this issue, to managers and sort of and we kept hitting our head against the wall essentially, goldman sachs just said, this is the algorithm. this is just what it does. we can't someplaexplain why it what it does apple did exactly the same thing. when we were contacted by apple managers, the key excuse remains, it's just the algorithm. they wouldn't explain to us how they arrived at their decision they simply explained that an algorithm arrived at an answer and we had to take that. neither of us found that to be that to be fair as all there is no way i'm 20 times as creditworthy as my wife. this simply seemed like a sexist discrimination to us, at least in our case. whether this is a pattern that

is widespread, that's for the regulators to find out but when we posted about this on twitter, we got an avalanche of responses including from steve wozniak, saying they had the exact same thing happen to them. >> we had some more details, i guess, david, than just blaming it on an algorithm today in goldman sachs's statement. specifically, they said that they judge individuals as opposed to a couple as one, does that give you anymore clarity on how this came about? and do you accept that that is a legitimate process >> absolutely not. first of all, we checked our credit scores after apple stated that they used transunion. my wife has a higher credit score than i do. so even if there was an individual assessment, that's just bunk. second of all, if this is solely based on individual sort of assessments, what do you do with my wife, a stay-at-home mom. she is, as the irs would define

it on our tax returns, a homemaker. maybe there's a way as though her income is zero does that mean that goldman sachs not interested in providing credit to any stay-at-home moms in this country? there are millions of stay-at-home moms that technically can't show any income, even if they're part of a family unit that makes plenty of money, as in our case, has no outstanding credit, has a long history of paying off their cards in full every single month. that is the essence of algorithmic bias and discrimination it may not be in the source code for this algorithm where it says, if woman, then give them a tenth of the credit rating, but if you discriminate against women in the sense that this is just an individualized assessment and you don't factor in things like shared wealth, shared family income, you are discriminating so i think they actually made it worse for themselves by going this route >> do you see this -- in one of your tweets, you said this process, that goldman sachs' apple card was, quote, f'ing sexist do you maintain that

that specifically and intentionally, that is the case? or is part of this explained by oversight, which might not, of course, say it's acceptable, but do you stand by those words in your tweet >> i do, because the intent doesn't matter what matters is the outcome. and we had sexist outcomes in our case, i think the -- linda lacewell from the regulator put it just right earlier in an interview where she said, the intention doesn't matter what matters is the outcome. and the company behind the algorithm is responsible for the outcomes of the algorithm. and this is really the larger point in our case, is that it was impossible for us to get any insight or transparency into this algorithm they simply claimed that it was what it was. we didn't get to see the inputs, we didn't get to correct any inputs they might have been flawed i don't think there's someone at goldman sachs or at apple that sits down nefariously wanting to discriminate women, but it happens all the time nonetheless. and i think the other problem here is that goldman sachs is essentially asking us just to

trust them the financial industry and goldman sachs in particular has not earned that trust at all they have to show proof that they are unbiased, that they are doing a fair and impartial evaluation of credit that applies equally to everyone as protected members. and i think finally, apple is simply being cowardly by handing this over to grandkioldman sachs it's the apple card, it's not the goldman sachs card no one cares that goldman sachs is the credit institution behind this this is the apple card apple advertises this kind of card as a new kind of credit card that's signed by apple, not a bank so the fact that apple just defers all material questions to creditworthiness to goldman sachs is exceedingly poor. this is the most important feature of the card. can i use it how much can i use it? if apple is not involved in that decision, they're simply wrong in saying that the card is designed by apple. >> david, do you know if this has happened to you previously, you and your wife with other credit card, as you discussed

previously that you have done many things as a household, putting together household income is this something that you're. itting this particular card and product on >> yes, we have not had this issue with american express, with jpmorgan chase, any of the other credit card that we've used and perhaps in part because those institutions consider households and consider household income and i don't think that makes it any better if women apply for cards individually at those institutions, they should be able to get an absolutely fair and unbiased treatment as well so perhaps goldman sachs in this instance is unwittingly sort of betraying the fact that the financial industry perhaps isn't as fair and unbiased as it pretend to be. and i think that that's part of the problem. you can't just pave over this by saying, oh, okay, we'll just view household income as the only thing that matter i also actually think that it should be possible for a wife to apply for her own credit card even though she's married to

someone and even though she's a stay-at-home mom, there's plenty of scenarios where it makes total sense for someone to have their own individual credit card and not be associated with their husband or wife. >> david, after a number of back and forths with goldman sachs, i believe now your wife does have the same credit limit as you what type do you think ultimately they did increase her credit limit to match yours? >> i think that's a great point. because this is a pr disaster. and actually the fact that they raed her credit limit to be exactly the same as mine betrays the fact that there is no individual assessment here there is just the fact that they had a pr disaster on their hand, apple called us -- which, by the way, also betrays the fact that apple is not simply delegating this to goldman sachs. it was apple managers who called my wife and said, we will review this, we're very sorry about this, we will bump your credit limit to be exactly the same as your husband they didn't ask for any new documentation or anything that

might have changed, they simply said, we will fix this and do you know what a vip bump for me and my wife not going to do anything to fix the structural issues that may be at play here. we need to have full transparency into the algorithms that credit card institutions use to assess credit otherwise, we can't audit these things we have to take them at their word and they haven't earned our word >> david, final question, are you still an apple and gulf coast kgoldman sachs customer whether it's with the card or other products >> i'm still an apple customer, because i believe apple can do better i was so excited when apple decided to launch this credit card, because they were going to do better. the whole reason my wife and i signed up for this card is because apple was going to design this card, they were going to protect our privacy, stop selling purchasing data to data aggregators and that was exciting i think apple needs to do much better here. they can't simply slap a veneer on the status quo, business as usual chicanery. for goldman sachs, i don't feel

like i'm customer of goldman sachs. ism like i'm a customer of apple. and the fact that apple chooses to use goldman sachs as their implementer for this card is the same thing as though they use foxconn to put their phones together do i go to foxconn if i have an issue with my iphone of course not. i go to apple. this is an apple product and apple owns this fully. >> david, thank you so much for joining us >> sure, my pleasure >> a reminder, goldman sachs in their statement to us said, we have not and will not make decisions based on factors like gender goldman would not provide a guest to us for the show apple declined to comment in any way, shape, or form to cnbc today. up next, we have your last chance trade "closing bell" back in a few minutes. you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers.

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just about 14 minutes and change left to go until the final bell sounds. nancy, what is your last chance trade here today >> so we've got walmart reporting earnings later this week we own the stock it's not super cheap, but it is trav attractively valued. they're growing ecommerce at 37% quarter over quarter, year over year the underlying stores look a lot better my walmart actually has organic vegetables so i shop there frequently and get my pet food there, as we talked about earlier. but this is a company that's

extraordinarily well managed and the website experience is actually better in many ways than amazon. delivery as well we seem to get -- we've done a lot of tests in phoenix where we have an amazon delivery warehouse, thank you, and we get our walmart deliveries a lot quicker. i like the story i think there's a lot of room in this stock its valuation pales in comparison to amazon i think if they continue to deliver on the ecommerce side, this is a stock you want to own. >> i bet you spend a lot of pet food, too. those dogs look hungry >> they probably eat a lot of food >> and tennis balls. >> nancy has some very large dogs that we showed a photo of earlier. coming up next, we'll bring you uninterrupted coverage of the final minutes of trade we'll take you inside "the market zone. that is up next. and later, we'll talk to consumer rights advocate ralph nader about elizabeth warren's tax plan and how much money

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♪ ♪ ♪ don't get mad. get e*trade, dawg. welcome back just under ten minutes left in the trading day. we are now in the "closing bell" market zone. commercial-free coverage of all the action as we go into the close. >> today, we've got nancy tengler still with us from laughler tengler investments and ian hamler joining us as well. we're going to kick things off with walgreens and a report that one private errat equity firm is approaching the firm about a buyer

>> walgreens shares jumping today on a report that kkr approached the company about taking it private. kkr has been preparing a proposal to buy out the shareholders of walgreens. the report says it's unclear that a deal is feasible because of the financing required for an lbo of that size, but kkr has a track record large buyouts in the past walgreens' current market cap is $55 billion, meaning an lbo, if it reaches that stage, would surpass history's largest buyout of txu from 2007 and the takeover of first data in 2007 and also by kkr, guys? >> leslie, it's interesting that the story has emerged in this way, because there's been some talk that the family behind walgreens has considered taking it private for the last two or three weeks. i guess my question is, any kind of reporting on who initiated this, was the company looking for someone to help them take it private or was kkr looking for

this type of company >> i think that's the key question here. because, obviously, this is a massive deal and those other deals that i mentioned, particularly txu was a consortium deal, meaning that kkr wasn't the sole private equity firm beyond that buyout consortiums have become less and less common as time has gone on, was the idea of a private equity firm teaming up with the family to take it private is something that could be considered it would help their financing cause, especially if they get other investors in this buyout i'm not sure who initiated it first, but it's just clear that there is some sort of a process ongoing. >> leslie, thank you very much we've got eight minutes left to trade. just selling at a little bit into the close, taking the dow just negative, but only slightly all three of the major indices down only slightly following those record closes last week. let's turn to boeing shares jumping after the company expects regulators to approve the return in the next week,

deliveries expected to resume in december and commercial service to resume in january nancy, where do you stand on that >> that was my last trade pick before it shot up this morning we have been adding to it in the last couple of weeks i think the bad news is pretty much priced in that said, i'm surprised the stock didn't sell off down into the $200 range after all of this it shows you thestrength of their model, the services model and the fully integrated approach they're taking to offset a normally cyclical kind of company so we like it a lot. we know there won't be a dividend increase for a while, but we don't think we need it to get the return >> ian, where do you stand on boeing >> i think nancy's right i think that when you look out, the only real risk is that you get some big cut in the military budget, which doesn't seem like that's happening anytime soon. and it feels like what you're seeing today and what you should see are anybody who sold the stock thinking that that was the end for boeing is going to start to plow back in, especially as we get into the end of the year.

>> boeing, of course, is leading their way higher on the dow, though the dow has turned slightly negative into the close. facebook's instagram will start hiding likes from users. julia boorstin has those details. hi, julia. >> well, courtney, it's a test instagram will start hiding likes for some users as part of a test going on that's going to roll out this week here in the u.s. now, that's after beginning a test in july in seven countries, including australia and brazil these users that are part of this test will be able to see how many posts their likes get, but other people will not see that like tally. instagram chief adam oseri says the company is trying to depressurize instagram and make it less of a competition, which could help the platform, but on the other hand, we'll have to see if this makes users less engaged or those influencers on instagram less interested in posting, both of which could eat into instagram's bottom line certainly a test to watch. >> thank you, julia.

something that was talked about at the dealbook conference with kim kardashian she's the queen of all likes ian, what do you think does make facebook less likely of a stock that you want to own or does this not matter unless we really see it hits into advertising? >> for me it cuts both ways. on a personal level, not getting as many likes is hurtful to me, but on a stock level, i think it's a nonevent and i would continue to own facebook there's only two shows in town still if you want to advertise and with that many people, i'm not sure where else you're going to go. i would continue to own facebook >> less than five minutes left of trade at the moment the dow is down ten points, s&p down about 0.3%. nasdaq down 0.2% morgan stanley downgrading qualm com to equal weight today and josh lipton has more on that for u us >> that's right, qualcomm has had a nice run, which means it could be time to step to the

sidelines. the stock has jumped about 14% this month, in part analysts say the stock has run up on high hopes of a trade agreement as well as 5g performance, but some are hoping that those handsets will make for more gradual consumer adoption. >> where do you stand on qualcomm and broadly the sector? >> i think that's the right call on qualcomm, given the fact that the stock finally took out its all-time high and i think 5g will be a little bit slower than people expect. as far as the semis overall, it's really a purely cyclical group at this point. i look at it as, where you think the economy is going to go and i think you'll start to see some weakness into 2020. i would want to pick names with some secular story, nvidia, for instance >> i know you weren't interested in nvidia earlier.

a similar thesis for qualcomm? >> not at this level we were overweight semis and have started to lighten up it's odd that utilities and semis have been the two top-performing groups year-to-date very different method. i think you want to be story specific and we're playing wit broadcom >> a record-setting day for alibaba. the chinese ecommerce giant just wrapping up its 24-hour shopping event singles day with more than $38 billion in sales nearly a 26% rise from last year's event, making it alibaba's best singles day ever. really sort of makes prime day and even cyber monday look like nothing here in the united states ian, what does this tell you about alibaba or even more broadly about the chinese consumer and where we sit? >> it certainly seems like the chinese consumer is doing pretty well i guess the only cautionary thing i would take away from it is the year over year growth did slow a little bit.

and with hyper growth stories, that's something to keep an eye on but overall, it seems like they're not too phased by what's going on with the trade war. that's for sure. >> i think maybe the year over year is slow, but it did beat expectations i was a little surprised that we saw this stock trade down. the numbers are pretty impressive overall and i think that we overlook a little bit some of the data that came out of china this morning and why that weighed broadly hong kong was down 2.6%. and that was the starting point for this stock today >> also on days like cyber monday, it's not uncommon to see amazon shares trade down historically, for whatever the reason may be. like you said, other things going on >> moving on, casino stocks having a tough time. no, we're not going to do that story yet. instead, let's get to bertha coombs at the nasdaq with a minute and a half left to trade.

>> nasdaq today pretty much flat coming off six straight weeks of gains. one of the outliers today, bucking the trend, nectar therapeutics the company presenting data on its immunocancer drugs at the immunocancer meeting today, getting a surge on good data but that stock has been under pressure year-to-date. biotech has been up the last six weeks. meantime netflix today is up on the eve of disney plus premiering tomorrow. a lot of folks say that it's tough for netflix, but not that tough today, at least. and apple hitting a new high disney plus will be on appletv on over to seema >> and bertha, it's important to note that the weakness started overseas, a sharp fall in hong kong stocks and in response to those protests turning violent the biggest one-day drop in hong kong in more than three months a big question whether what's happening in hong kong is tied to the trade walks 3m, a big industrial that does

business in china, at the bottom of the dow today closing down by 1.7% expedia shares under pressure yet again. oppenheimer, a google search in favor of its search. the dow ending higher, up six points s&p 500, down 7. >> good afternoon, welcome to the "closing bell," everyone i'm wifflfrieed frost >> and i'm courtney reagan in for sara eisen >> the s&p up just -- down just 0.2%, and the dow down more than that the russell down about a quarter of 1%. decent improvement throughout the course of the session. we pretty much opened at the

lows >> joining us now to talk about the market day and more, nancy tengler, chief investment officer is still with us as well as ian whiner from drexel advisory board and andrew slimmen is senior portfolio manager at morgan stanley investment management. we did end up finishing the day pretty muted eked out a small gain on the dow. where are we looking at going into a seasonally strong quarter for the final year >> you have the season working to your advantage and the three fed rate cuts, which usually if this is it, we get strong returns going forward and the earnings risk premium at pretty high levels that is also followed by strong results. so if this is analogous to 1995, stocks have room to run. we are looking for high-quality names that are attractively valued, no-brainer and and may dividends, mostly. >> it was only a small gain the

dow eked out, but enough for a record given that we had one on friday nice to see another one, clocked up 12 points, 27,693.9 do you think record highs are justified at the moment with some of the risks we've got out there? >> i think at this point, the answer is yes. you're seeing a lot of the fear and the risk to ebb a little bit. i think what to keep an eye on is the hedge fund underperformance this is creating what i call a synthetic short base, where they're long cash and need to catch up this is what i think keeps a bid in the market until the end of the year >> and andrew, what about you? we have another record close, albeit by a slim margin here for the dow. do you think there's still more room to run or have we put ina pause for now? >> i'm shocked that the market isn't weaker because it's so overbought on a short-term basis. but i agree with the other two guests

i thougd we would have a 2% to 5% pullback, but strong into year end, 3200ish, and i think that will continue in january. but some of the areas like financials and cyclicals look very overbought on a short-term basis. >> earlier on the show, we were talking about different risks in the market, and we were talking about the inequality gap when it comes to income or health care, but he also pointed to the trade overhang what are the biggest risks to the market going into year end and into early 2020 in your view >> i think the biggest risk is not going into year end, i think the biggest risk is the election seasons coming up in early february and if we have some candidates that maybe win the early primaries that are more left leaning for the democratic party, will that create some anxiety in the market after a very, very good year for stocks? i think that's kind of the next

issue the market is going to have to deal with. but from now until year end, other than an overbought market short-term, i think it's clear sailing from now until year end. >> earnings season is wrapping up while stronger than expected results have propelled stocks to new highs, s&p 500 eps still fell by 1%, the first decline since 2016 the note also saying 2020 expectations are too optimistic and investors should expect further negative revisions to eps estimates going forward. ian, is that enough for you to get worried about the market or when weapon see rates relatively low, for example, does that support the valuations overall >> i think if i were to air on one side, it would be the rates and the multiple i would continue to' multiple expansion as opposed to earnings growth, clearly. what's made that happen, there is no alternative argument and

just a flood of cash coming from all of these central banks until that turns, it's hard to see how the multiple compresses that much. clearly, i don't know what the plan is with the china trade agreement or what we're getting out of it, but as long as it's not negative, it doesn't feel like you're going to see a whole lot of multiple contraction, at least in the near-term >> and nancy, obviously, we have 89% of companies that have already reported in the s&p 500, but a lot of these big name retailers have still yet to go we've got walmart we've already talked about how important is that going to be looking for the shape of the consumer >> the consumer is everything. it's 17% of world gdp growth and two-thirds of our economy. we'll get a snapshot of that later this week. but i do think breadth is really

important. it's not a f.a.a.n.g. rally. that's good news and margins are already pretty choppy we do need earnings. we need earnings to come through. so i think trade matters the consumer needs to stay healthy and we'll see what happens. there's a lot of political neoie and that's not good. >> the dow is closing at a record, so let's send it back over to seema mody for some of today's biggest movers >> volumes were light, but a ninth record close for the dow the dow was able to erase 163-point deficit. what's key there is there were a handful of stocks staging an intraday comeback. boeing off the lows of today dish staging a comeback, an intraday swing of 4% and look at a stock like apple that has really outperformed over the last one month. a 2% intraday move in apple hitting yet another record high

and building on its year-to-date gains of 66% one of the key stocks to watch in the industrial space will be deere. results are not out for another two weeks, but some positive territory saying that the improved trade story could improve the visibility around agriculture demand, farmer demand, and that could really help deere and its farm equipment maker earnings coming out. that stock ending higher as well back to you guys >> thank you very much, seema. i'll pick up on the topic of industrials, andrew with you do you think they're an attractive buy at the moment >> they've all done very well. i think it's going correct over the next couple of weeks but if you look back in history, we had an economic square in 2011 and in 2015 and coming out of those, i think it's still in the early innings of the value

rally, but they look a little overbought short-term. so i would wait for them to come in a bit here. i wanted to add just one other thing about this earnings story, which is that, look, what a great year it's a powerful lesson we had flat earnings growth this year and yet the market's up a lot. it is the message is that the stock market is a forward predictor. it is telling you that coming off flat earnings season, we'll have a better earnings season and that's why the market is rallying >> if i could go back to this goldman sachs note, there's a note talking about the duke university outlook with 67% of respondents believing the u.s. will enter recession by the end of 2020. i know we were worried about that possibility several month ago, but it also doesn't seem that anyone has been too worried about it since then. do you think that's possible and something we should be paying attention to as we build our portfolios >> it's certainly possible

i know those surveys they did sort of have had conflicting results and the latest one sounded a little bit better. because every cfo didn't have a problem. so when you start to see that consensus, it's actually probably a contrarian indicator. i think it really boils down to this china trade deal. i don't really know what's going on i'm not sure anybody does. so it still continues to be hard to plan as far as capex budgets, hiring, et cetera. so until you get some real clarity there, it's hard to see how we just explode to the upside in 2020 >> ian, andrew, nancy, thank you all for joining us >> thanks for having me. >> coming up next, ralph narrator will join us to talk taxes in the 2020 election he'll weigh in on elizabeth warren's plans to tax the wealthy and how it could cost america's billionaires "closing bell" back in 90.

welcome back last week, ralph narratder penna letter saying, why elizabeth warren scares wall street. the article went on to say warren will hold the financial industry accountable for its misdeeds today, "the new york times" out with a piece saying if warren's tax plan had been in effect since 1982, the likes of bill gates would have earned $13.9 billion instead of $97 billion and jeff bezos would have $48.8

billion instead of $160 billion. joining us now, ralph nader, consumer advocate and author of "how the rats reformed the congress." thanks so much for joining us. good afternoon to you. >> thank you, wilfred. >> my first question overall is do yo support a wealth tax does that make sense to you? >> well, there already is a wealth tax on real estate, as you know it falls disproportionately on middle income people this is a wealth tax on other forms of assets. it will be contested in the courts, but i think it's well done for elizabeth warren to say that because you had a huge accumulation of wealth, often making money from money, speculation on wall street, rather than investing in productivity enterprise. and our tax system on corporations is so low historically, wilfred, that i really would just call it a

partial restoration of what the stac taxes were on the very rich and corporate in the eisenhower years in the 1950s >> i understand that the wealthy should pay more. is warren's version of a wealth tax, an annually levied wealth tax based often on unrealized gains the way to do it or is the better way to do to increase income taxes and make capital gains taxes more comparable to that >> i think it's easier to get through congress to do a sharper progressive tax. a sharper estate tax a sharper tax on realized capital gains. in other words, capital gains, as ronald reagan said, should be taxed like ordinary income why should it be special for people who have a lot of capital gains? and finally, i think she's emphasized more a tax on wall street transactions. we have to pay 6, 7, 8% sales tax in the united states

you go into a store. but if someone buys $100 million of exxon derivatives or exxon stock, they don't pay any sales tax. there was a sales tax on wall street transactions going back to the civil war and there was one that continued until 1964 or so so it's not that it's a brand-new precedent. japan has it and some other countries have it. it's a good way to dampen down excessive speculation, and that money can be used for tuition-free education, health care, child assistance, other things that warren and sanders want >> so i know, obviously, you're a crusader for a number of social issues. do you then believe that the most ultra-wealthy of us should give back in way, by being taxed in this way. i know you wrote a book, only the super rich can save us do you really believe that's their duty and they should do it through a wealth tax of this sorts? >> well, efinitely, warren

buffett, they have talked about a reset in terms of corporate response and response to the wealthy. but look it. after years of political campaign cash and sending their candidates into high office, the super rich have got huge tax escapes. they have huge subsidies, bailouts, giveaways, wall street, general motors they have huge anti-trust protection, monopolistic prices. they have stalled or frozen wages. these are trillions and trillions of dollars that come from people who work hard every day, but have not received what they should have received given their earned effort. so this is like a restoration of fair play. and let me tell you, you've heard the whole saying, there's always a party before the party's over and some good guys in wall street and some of the more responsible corporate executives know, they're pushing that

envelope too far in the face of the american people. and that's why there are huge polls supporting a lot of sanders' and warren's measures, and they include quite a few conservative voters. you can't have 65, 70, 75% vote for cracking down on corporate abuses for a living wage for universal health care unless you have quite a bit of conservative voters, as well. >> right but corporate abuses are different from the majority of corporate practice, i would argue. ralph, switching focus to boeing have you been encouraged by some of the further concessions they've made in the last month or two further apologies they've made, and indeed, stripping the ceo of the chairman's title is that enough for you >> reporter: no, not at all. they have a hardware defect, in terms of an engine overloads of old fuselage, unlike their competitor, the airbus 320 neo

and they try to fix wit a complicated software, that i have been revising, glitching, stitching now for months you don't do a software fix for a hardware defect. that's not a good idea so they're on the wrong track for the future well-being of boeing i have really asked for the ceo and the boeing board of directors, they've got such a stake in what happened and they're not willing to really change, unless you just step down boeing needs a completely new team and if boeing tries to transfer those cases to indonesian courts or ethiopian courts, they'll be the second worst mistake they've ever made in the last ten years. the first one being the 737 max. ex the max and the airlines ought to worry they don't get a free crash due to the instability of the 737 max, pointed out by captain sullenberger in house testimony in june and many other aerospace

experts. there's now a division between the future well-being of a reengineered boeing corporation and the financial madness of the boeing bosses, who have brought this company to the state of crisis that it now is in >> well, there are many other topics we wish we could get your take on, but we have run out of time ralph nader, thanks for joining us here on the "closing bell". >> thank you, courtney coming up next, we drill down on the risks facing investors in saudi aramco's upcoming ipo, which is expected fenge rgt blpuic ofri ever. what do advisors look for in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives.

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with peace of mind. call... for a free kohler® nightlight toilet seat with in-home quote or visit kohlerwalkinbath.com for more info. welcome back to the "closing bell." saudi aramco releasing major details of its upcoming ipo including risks that investors could be facing. this was a big document, leslie. >> a big document, indeed, that dropped on saturday. there are about 17 pages of risk factors in the 650-plus page prospectus some are pretty standard things like risks of operating in multiple countries and risks relating to litigation, but others are a bit more unique to saudi aramco

the company cites risks related to terrorism and armed conflict, specifically noting that several of aramco's facilities were targeted in september. the document also cites the interconnectivity between the government and the kingdom when it comes to things like production level and compensation now, investors are still awaiting a final offering size and valuation target, which is expected to be in the trillions of dollars, guys >> leslie, what's the corporate governance like? >> so the corporate governance of this company, their controlled obviously by the kingdom, but they do have that interconnectivity with the government as well so it's one of those interesting things where the government is tail in charge of compensating the kingdom for the various output that the company has. so it's pretty interesting from that standpoint. >> leslie, thank you very much alibaba setting a singles day sales record, but a warning sign is flashing in the u.s. over the upcoming holiday sales season the details of that, comg inup when it comes to your customers' expectations,

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can't confirm that the planes, which it bought used from foreign operators, meet all safety standards it is asking southwest for more frequent updates until the airline completes documenting the maintenance records on jets that have yet to be inspected. jeff sessions says that he is rested and ready to lead the charge for the trump agenda in the united states senate he blamed congress for not helping him enough >> in recent weeks, i have become convinced that the president is right on issue after issue after issue that alabamians believe in and i believe in and i was advocating before he got elected. and we have an opportunity to get great historic things done and the problem is the congress. >> you are up to date. that's the news update this hour courtney, i'll send it back downtown to you. >> thank you, sue. well, the world's largest 24-hour shopping event, alibaba's single day setting another new sales record of

$38.4 billion. that's a more than 25% increase over sales on the same day last year for more, let's bring in liz dunn, founder and ceo of pro forma, along with retail analyst at forrester research. liz, what does this tell you about the chinese consumer no pulling back on spending, at least not on singles day when you read more into that? >> this event has come out of nowhere over the last 11 years, really built into the biggest shopping day in the world. and it's more global than ever before, more brands are participating, i think it's not necessarily indicative of the strength of the chinese consumer, but i think there's something important you can read in their interest in u.s. brands because u.s. brands have done quite well in this event >> and that was sort of to the point that i was going to ask about. next, often, when one retailer has a big day, there's a halo effect because it gets people shopping and they search around to other websites. do you think there's any kind of readthrough we have already from something like that happening

today? >> well, we know that singles day was also large because jb.com did incredibly well, too. collectively, there are a few sites that are going to gender more than $60 billion, which is 60% of all chinese ecommerce as well as the spillover to u.s. retailers, those who actually participated in the singles day event in china certainly will have seen a lift, but it's not so much as much as a great shopping day here in the u.s and the main reason is because of you have a lot of shoppers waiting to see what's going to happen on cyber monday that's the day they're looking for here in the u.s. >> liz, do you think there's read across for what comes for the rest of the year for the likes of amazon on days like that >> not as much for amazon. i think this is a bit more about china's consumer, their interest in luxury brands and the power of alibaba to kind of create this event and create a platform or multiple platforms for

consumers to transact globally with global brands >> obviously, everyone knows when singles day is. do you see any sort of holding back of purchasing in anticipation of singles day and/or the opposite. is it pulling forward sales that could be done in the holiday season >> well, what we definitely see is that there is going to be a little bit of a holding off in the weeks prior to any large shopping event like this, because people do anticipate and they're waiting -- delay eed gratification, right so they're looking for those large ticket purchases, consumer electronics, or things they may have wanted to purchase, they're waiting to see how deep the discount is. and often, a celebration like singles day often does deliver that, very similar to cyber monday and black friday in the u.s., as well. >> we'll leave it there.

a new survey says that new retailers could see sales slow down this season >> a new cnbc acorn's invest in you survey conducted by survey monkey finds a majority of americans think a recession is likely in the next year. let's show you and a warning sign ahead for those holidays 45% of those who think a recession is coming say they're cutting back on household spending and more than a third of all survey respondents, we're talking 43%, specifically, of women, say they will spend lessz this holiday season this year than last year retailers tend to pay close attention to what women say, since primarily, they're responsible for household spending decisions the survey reveals just how cost sensitive american consumers feel right now a majority of americans say that they have noticed a recent increase in the cost of everyday items they buy that excludes gas, food, groceries and general, and specifically beef, fruit, milk were some of the most commonly

cited items that people think have increased in price. if you want to learn more about this and get a sense of what this means for the holiday season, you can go to cnbc.com/investinyou and invest in you, ready, set, grow is part of our partnership with savings and investing app, a.c.o.r.n. guys >> contessa, i think it's interesting, of course, to look at all of these survey results but we also know when it's christmastime, sometimes your budgets and plans can go out the window regardless of whether you think recession is coming or not. >> and especially when we're looking at young people, they say they're more likely to spend more this year than last year. and at the same time, even if they think a recession is coming, they're not doing anything about it. >> thank you, contessa >> mm-hmm. >> coming up, navy veteran and former nfl player phil mcconkey explains why the finance industry has been so successfu crti verans as they

transition into civilian life. stick with the "closing bell."

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jpmorgan ceo jamie dimon was asked about whether he ever thought about running for president. >> did you ever think of running for president? >> i thought about thinking about it >> you thought about thinking about it >> i talked to one person and i decided to think no more >> that's something i've reported on before, but certainly the first time i've heard him say it and admit it on the record and last week in london, i also asked diamond about whether he would consider public office in the future >> probably not, but i would never rule anything out and i never say never, but i do -- i think that business, civic society, you think a hospital, schools, non-for-plorofits, working for government can fix our problems yelling at each other will not fix our problems collaboration works. i think we did this stagnation, this new normal, we did it to ourselves through bad policy, structure, certain taxation, inner city schools, too much regulation, you know, a capricious and slow litigation

health care, which cost too much i think those are things holding us back. and yes, we should share the privileged in this nation with the less privileged. >> i took the bulk of that answer to be in the part of, i never would have ruled it out, as opposed to the probably not, the first to words with which he answered with. make of it what you will we know nothing for the next year and a half, no doubt about that, that he's considering it but clearly, he cares so much about the policy that influenced the nation he said last night on cbs again, i'm a patriot and anyone who suggests otherwise isn't and he admitted that the possibility of president had crossed his mind >> a lot of attention to those public policy issues and could be a key voice moving the ball forward, whether he's in an official capacity or not >> right we'll have to wait and see the other point that got a lot of headlines throughout the day was on the question of pay and we played a brief part of that earlier in the show. the thing to highlight on that is that 31 million in his pay,

in absolutely terms, there's no doubt he's worth that. his performance since taking over can't be disputed the stock is up annually 10% versus the s&p 500, up 7% in a terrible decade for banks, where the average for the banks index is flat. he's certainly at his own performance. and he also sort of advocates for paying more tax himself. so, i think to push someone in what is a capitalist free enterprise world, as he always mentions, to arbitrarily offer to give back money is a little bit shortsighted to offer anyone to feel like they should have to do that. but in absolute terms, either way, i think all the shareholders would be like, we're happy to pay him $30 million. keep doing the good work he does but very interesting and they but a lot of stuff about the work they're doing in detroit in there as well, which i also thought was pretty interesting. >> absolutely, absolutely. coming up next, veterans on wall street navy veteran and former new york inant phil mccophony is now

the world of finance how his firm helps vets transition back to civilian life that's coming up next on the "closing bell.

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make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. in honor of veterans day, we're taking a look at how military experience and knowledge of global politics can make veterans valuable for financial companies. joining us now are two military

veterans from academy securities, an investment banking firm that is majority owned by veterans. phil mcconkey is a former navy helicopter pilot and nfl player and rachael washburn is a former intelligence officer rachael, i'll start with you what do you think about your experience makes you valuable to a company like academy and how did you find them? or did they find you >> that's a great question i was an intelligence officer in the army for six years i was brought on to academy about two years to help develop their geopolitical intelligence group. so i worked with three retired admirals and generals on how geopolitics impacts markets, their operations and the volatility that we're seeing in the markets today. >> and phil, you guys prioritize hiring vets. is that right? >> well, we like to have a combination. we need a wall street veteran to pair with a military veteran we think that combination is dynamic and we can extract more value for our customers. the wall street veteran has the know-how, the market expertise

where the military veteran has something that's very valuable to wall street honesty, integrity, loyalty, teamwork, and oh, something called service these are young men and women that join the military not to get paid a lot of money, they join the military to be part of something bigger than themselves and to serve our country >> well, hear, hear to all of that rachel, did you find it difficult leaving active service and transitioning into a job and as you did transition, did academy services help you do that >> absolutely. when you leave the military, you're leaving your family, you're leafing an incredible sense of camaraderie, so there is a significant transition and a dynamic shift. but at academy, that camaraderie exists, those moral and values are all inherent in academy. so it certainly was a much smoother transition. and i work alongside 40% veterans the firm is 40% veteran staff which is incredibly significant and speaks to academy security's

authenticity >> this seems to make an awful lot of sense, but you hear a lot of stories about very qualified veterans who have a very hard time finding work. what's everybody else missing here why are people looking over perhaps very qualified veterans for some open positions? >> yeah. it's not only the right thing to do to engage and hire and train a military veteran, it's the smart thing to do for your company, for your entity listen, i joined the military after a war ended. that's how old i am. vietnam had just ended that's when i joined the military rachel and her colleagues joined the military after we were attacked on 9/11 the devastation not too far away from where all of you are sitting right now. they joined the military after the war started in afghanistan they joined the military after the war started in iraq. that tells you all you need to know about who they are and what their character is listen, i played in the nfl. i was a punt returner, i was a small guy. they said i had a toughness and courage. rachel and her colleagues, those people that we're talking about have more toughness and courage in their pinkie finger than i

have in my whole body. how would you not want someone with that type of character and that kind of service to join your company, whatever it is >> rachel, pivoting to the day job you have now, part of that is advising on geopolitical risks and assessing how that influences the market. we talk a lot already about the u.s./china trade war so putting that to one side, which geopolitical risks out there do you think are underpriced by investors at the moment >> we've had a long view that turkey is going to be a pretty significant problem. over a year, our advisory board has been saying turkey may leave nato and one of the viewpoints we've had and that we've signaled that's incredibly significant of this shift in the u.s./turkey dynamic is the military relationship that has atrophied over the last year it's the last one to go when diplomatic economic relationships are challenged we're seeing that play out in northern syria >> rachel and phil, we thank you both very much for joining us today. much more importantly, today of all days, thank you for your

service. please pass on our thanks, also, to the colleagues we have at academy securities ff they ies service. up next, one of the biggest art auctions kicks off, but experts are forecasting its biggest sales drop since the financial crisis we'll discuss when "closing bell" rerns. (vo) the flock blindly falls into formation. flying south for the winter. they never stray from their predetermined path. but this season, a more thrilling journey is calling.

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well, new york's november art auction kicks off today, but it's expected to see its biggest drop in sales since the financial crisis robert frank has more. what's going on? >> it's going to be a very interesting week for art about $1.2 billion worth of art coming up for auction this week in new york. that would be down 20% from last year and the biggest drop since the financial crisis now, the real trouble right now is at the very top of the market so last year, we had 22 paintings that sold for over $20 million. many year, it's only five. now, the star lot this year is hurting the word radio 2, that's expected to fetch between $20 and $30 million. and they have a rediscovered david hockny that could fetch $45 million.

that sounds big, but it's a big drop from the hockny last year they sold that went for $90 million. that was twice that amount over the longer term, art is still performing very well sotheby's has a mark rotco estimated to sell this week for over $25 million so still better than the overall stock market >> when we say down 20% year over year, i mean, is that a fair direct comparison you could just have fewer paintings up for sale or less valuable paintings >> good question there are actually more paintings up for sale. over 2,000 this year the price per painting is down and the number of paintings is up and it's mainly because we don't have two or three big whopo, big headliners like we have in previous quarters. this is the first time since 2009 that we haven't had a painting priced at $50 million or more. so it's a big jump but really at the very top, it could be an okay market for everything else. >> so you can't read too much more into this

it's really about the specific pieces of art themselves >> yes, but many people say that very top end is a sign of confidence people around the world are willing to spend, doesn't matter how much for those top trophies and you're just not seeing it right now. >> zl read across for the ultrahigh-end luxury market. >> yes, we're definitely seeing nit real estate, in art, in yachts, in classic cars. and all of these markets, it's the very, very top, the sort of top of the top, $50 million cars, the biggest yachts so again, we shouldn't read too much into it not a big economic impact, but it is a sign that people are getting more cautious at the top. robert >> christina, stocks having a rough start to november. contessa brewer. >> casino operators are predicting a pickup in 2020. might be a tough slog through the end of the year for those in macau. updated numbers indicate november gaming revenues are on pace to slide 12% this month

year over year that would be the sharpest decline this year and the trend continues this month, the vip daily volumes are down more than 30%. that's only partially offset by stronger business in the mass market gamblers. watch the casinos with the most exposure here. you have win down more than 3 1/2% on the day. melco off 2.5% mgm also in macau, but it has -- well, it's just less reliant on the revenue stream. >> contessa, thank you very much for that down 3.6314% next, your wall street looking at the key things every investor needs to watch as we head into a new trading day when "closing bell" comes back. but sophie's enthusiasm cannot be dampened. not even by a run-away donut.

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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. goldman sachs is asking us to trust them. the financial industry and goldman sachs in particular has not earned that trust at all they have to show proof that they are unbiased, that they're doing a fair and impartial evaluation of credit that applies equally to everyone as protected members and i think finally apple is simply being cowardly by handing this over to goldman sachs. it is the apple card

it's not the goldman sachs card. no one cares that goldman sachs is actually the credit institution behind this. this is the apple card apple advertises it as a new kind of credit card that's signed by apple not a bank the fact that apple defers all material questions to goldman sachs is exceedingly poor. this is the most important feature of the card. can i use it how much can i use it? if apple is not involved in that decision, then they're simply wrong by saying the card is designed by apple. >> that was david hienmyer hanson, chief technology at base camp and the author of the tweets that initially sparked the investigation into the sachs and the apple credit card. made strong arguments in that interview i thought earlier. having spoken to sources close to the issues i actually don't think the number one issue here has been some black box algorithm. i think it stems from the fact that goldman sachs and apple

decided to assess individuals as opposed to couples as one and whether goldman puts more priority into certain financial metrics than other credit card companies when they tested that there were different results for the two people and that has led to the obvious issue that we've all been talking about all day long i do wonder whether goldman sachs is the only company that does that. i think other credit card companies do, do that as well. some assess as a couple, some don't. but some that don't also then allow an extra card to be issued to a family member but that is based often, not always, off the primary earner, for example. >> that's right. >> who then grants one to the next person which is slightly different, perhaps shl, than suggesting they have authorized everyone based on a couple there's a lot of nuances to this i think it's hard to argue that something didn't go wrong here, highlighted by the fact that goldman sachs ultimately matched the two people's credit ratings after the fact

as far as i know they haven't adjusted the overall policy yet. there's unanswered questions still. but i don't personally think it's a black box algorithm issue i think it's the initial policies >> in the way they're looking at income and who earns the income. in this case at least this gentleman's wife is the homemaker, that's her primary occupation even though they said they filled out their household income. >> yeah. >> so that's the issue here. but that's also a problem that others have flagged as well and then when we asked them is this the case with your other credit cards issued by other banks he said no. >> albeit i'm not sure and we've perhaps asked that follow-up whether some of them might be issue ago second card to the same person. >> that's true. >> the other thing i would highlight, and david mentioned this too, second for someone sitting there making a calculation that input in this algorithm is based on gender if you assess individuals totally separately based on just

the simple mass across america it is more likely that could hinder women than men because of the balance of who tends to make -- i think mrs. hanson used the word homemaker tends to be more often the woman than the man. that does lead to these sorts of results and that's the point ultimately made. doesn't matter if there's that calculated intention to be sexist if the result ends that way. anyway, i thought it was an interesting interview having him on earlier and we referred to the point that goldman sachs made that they never bring gender into this equation themselves apple didn't issue a statement. mile high direct club reporting results for the first time since its ipo after the bell first, disney plus has its highly anticipated launch tomorrow julie boorstin has a preview. >> disney's flagship streaming app called disney plus

it costs $7 a month or $70 a year, ten original series, two original films that launch, 7,500 tv episodes and 500 movies, it will be disney, pixar, and marvel. along with hulu with ads and espn plus, that will cost $13 a month which will be a $5 discount if you -- from where it would cost if you bought them all separately disney has forecast that disney plus will have between 60 and 90 million global subscribers back do you. >> julia, thank you very much. smile direct club reporting after the close tomorrow we have a preview withb bertha. >> it's a deceleration from the quarter ahead of their ipo, down about 15% in terms of revenue. also be looking for an update on how new rules in california requiring x-rays are going to

impact their sales model stock is down about 50% from its ipo. back do you. >> bertha, thank you very much for that a reminder, a record all time closing high on the dow again today, albeit eking out a fractional gain of ten points, s&p and nasdaq were slightly lower "fast money" begins right now. this is "fast money," i'm melissa lee, we have dan nathan and brian kelly. a new record for alibaba on its singles day. this stock is going to rip on earnings tomorrow. how the options market says you should play it and google may know more about you than you think. the tech giant reportedly gaining access to health records of millions of people. we break down the implications for your privacy and the stock. boeing,