breakage around the house. it's going to come to an address near you kelly is smiling and happy and the little boy is doing well congratulations to the family. >> yes, congratulations. and thank you for watching "power lunch." >> "closing bell" starts right n now. and welcome to "closing bell." i'm contessa brewer in for sara eisen at the disney post again today. this stock is up more than 7%. the highs of the day on those wow numbers coming in, releasing the first-ever subscriber numbers for disney, plus it has investors excited, e >> absolutely, contessa. first and foremost, our congratulations from everyone here at closing bell adorable fophoto, congratulatios to kelly and everyone. fed chair jay powell says he sees expansion ahead for the

u.s. economy and is unlikely to cut rates further. and treasury yields, the dollar and oil falling on the word of that trade deal. president trump is said to hold a joint news conference with the president of turkey. we'll take you there live when that begins. you can see that's due to start any minute now schedule was 3:10. josh brown, very good to see you. >> how are you, wilfred? >> very good, indeed. >> good. >> markets, as we look at things now took the fed conference fine but a bit put off by the trade headlines. >> we made a new high yesterday and today briefly. you take a look at the constituency making up that new high it's very encouraging for people who look at things like internals. xli is hanging in there, all-time highs xlf has closed higher in the

last six sessions closed higher than the open. this is very constructive activity stocks are being accumulated then you think big picture what's driving the averages? the two biggest stocks in the world, apple and microsoft one is up 70% year to date, apple. new record high today. the other one is at 47% year to date so with that backdrop of both leadership from the biggest stocks and then having all these sectors that haven't done much for years starting to break out to new highs, it's hard to look at every little minute detail that comes out in the trade talks or something the fed says and try to deconstruct all of that it's not happening the buyers are buying and the sellers are, frankly, on the sideline. >> stocks are dipping, as we mentioned, on those new trade headlines out of china let's get to kayla tausche in washington what are you learning? >> people close to the talks confirm that the u.s. is trying to secure stronger concessions

from china to police intellectual property protections and to stop the practice of force technology transfer in exchange for rolling back some of the tariffs that are put in place or could be put in place in ecember. so far the two sides are at a stalemate, despite a month ago saying they have an agreement in principle. the linchpin of this deal for the president, that being the $50 billion in what he announced, china is not willing to commit to that in writing certainly that won't sit well at the white house. yesterday, larry kudlow said they are still operating with a deadline of this weekend but asked by you guys what apec time means, he said we'll figure out what that means and what it means for a deal all he would say yesterday is that they are close. as we're learning today, not close enough for a deal in the near term. guys >> there's some question about whether there's been the purchases of these ad goods that

china had even initially promised, that they're not fulfilling the promises they made on this front on intellectual property, when you talk to the leaders of these big companies for whom this is the biggest concern, are you getting the sense that there's some give on the part of the u.s. negotiators on this front >> i think for companies operating there, they really just want the certainty of the trade war being over and having some sort of channel through which to have some of their concerns be addressed going forward. that's what this deal was supposed to serve as the administration, as of a couple of months ago, had said perhaps if you take away some of the ownership requirements and you allow some of these companies to operate without having a chinese joint venture partner, perhaps you could get around some of the intellectual property issues they've been having even with china making the financial services sebt sector they're not willing to make strong enough to allow agreement on those.

>> are you suggesting that larry kudlow was not crystal clear on the timing yesterday >> he said we're operating on apec time. we'll see what apec time really even means, which was to suggest that they want to put the pressure on china. they want to make it appear as if this week is a hard and fast deadline, even though there is the potential that we could still have these negotiations drag out over the next few weeks because there is no summit at which the two leaders are expected to be signing that this weekend. >> up in the air still kayla, thank you very much for that federal reserve chair testifying before the joint economic committee earlier today. here are some of the highlights. >> looking ahead, my colleagues and i see a sustained expansion of economic activity, a strong labor market, inflation near our symmetric 2% objective most likely we've been hearing for a year and a half from companies and i think this is fairly widely accepted now that tariffs, but to a greater extent, uncertainty

around future trade policy is, for now, it has been weighing on business sentiment inflation is kind of moving sideways and wages are moving at a healthy clip but they're not moving up in a way that would suggest that they're up ward price pressure i'm very open to the idea that we don't know where next unemployment precisely is. i think the new normal now is lower interest rates, lower inflation, probably lower growth and you're seeing that all over the world, not just in the united states. i hope everyone takes credit for the good economy we're seeing now. it is a really good place. i think it's worth noting growth continuing at a solid pace in the 11th year of the expansion i think it's a really good time. i want everybody to get credit for that. >> let's bring in our own steve liesman, former fed governor at the chicago booth school of business a very good afternoon to you both steve, i'll start with you what was the market interpretation as to whether or not you've got any more cut this

is year or next year >> i think the market and the fed are well aligned hats off to the person who cut that montage i had to watch for 2 1/2 hours what you just just drilled down perfectly into 30 seconds. >> crystal gets the ku did os. >> whoever, hats off, good work there. it will did crystallize it things are lined up now for fed chairman powell. if you look what he says about the economy being in a good place, almost every member of the fmoc has used the same phrase as the chairman congress, they're not pushing back much. they've not embraced the president's criticism of the fed chairman they seem pretty happy with where rates are. and to get to your question, wilf, is the markets, that have priced in this pause, less than 1% probability of a rate hike -- sorry, rate cut in december. you have to go all the way out

to july, fed funds futures market of a rate cut he was able to engineer this pause and do so without much market tumult at all, wilf the fed is on hold and it's going to be a pretty high bar to change it either way. >> can we talk a little bit about inflation here, randy? >> sure. >> you hear the fed chair saying it's actually moving sideways, setting this expectation for low inflation. what does that mean for the fed's role going forward >> central banks around the world have set 2% or higher inflation targets and almost none of them are reaching that and there are questions of central bank credibility, whether they really can be trusted to get to their goals. i think the fed with so many other central banks are haunted by the example of japan that lost credibility and now has

purchased assets that are more than 100% of gdp and inflation is still persistently far below the 2% goal between 0 and 1% the fed will be very much focused on that. if inflation continues side ways or moves down slightly, that will be the next time that they would have a rate cut. >> randy, with all of that in mind and the last few press conferences we've heard from chair powell, what do you think would actually warrant a rate hike again i mean, the theme today, again, seemed clear that we might not get a cut again this year, but a hike feels an incredibly long way off. >> i think that's right, because i think they're worried about inflation being too low rather than too high. jay and his colleagues have made it clear they would be willing to have inflation run hot for a while, given that it's been below their 2% goal for almost the entire recovery. and that's also one of the lessons of japan, that sort of

raising rates too early, just as inflation got around 0 to 1% and then inflation started going back down again. i don't think a rate hike is in the cards unless there's some sort of spike in inflation, which i find unlikely. >> wilf, if i could add to that quickly, i think the monumentalness of the transformation at the fed, i think the market gets this, and it's been a big part of what's allowed the market to hit new highs. for most of the ten years of the post crisis period, the fed would cut rates and/or do quantitative easing but never stop talking about this concept of normalization normalization, whatever that meant at the time, it certainly meant higher rates and a smaller balance sheet, that's gone picking up on what randy said, it's off the table the new metric is not some vague idea of getting back to a normal of 3% funds rate or balance

sheet that's much smaller. new normal for raising rates is exactly what randy said, inflation above. this is a big change i don't know when the last time the fed chairman used that term normalization, but it's gone from the lexicon now. >> as our representative of the markets today, sorry, randy, one second josh, is that indeed the market's representation? >> look around in asset management, in financial advisory, in investment banking and trading, there's nobody around anymore that ever worked in an environment where inflation was a serious threat steve is laughing, but he knows i'm right. >> yeah. >> other than art cashin in the corner later, there's nobody around anymore that remembers an environment where oh, my god, look what inflation is doing to the economy/my career prospects/my book of stocks. there's no one around. of course we'll start to gradually shedding an aversion to having inflation run hot. of course.

now there are people who will pull up individual charts of specific line items in every household or business' budget. cost of health insurance, there's plenty of inflation. don't worry about it so i think with stable energy prices, though, with a modest increase in home prices, but these big, big line items that we mostly talk about when we say cpi, there's not a huge concern there. it makes sense that the fed is no longer talking about normalization. why would they need to the current normal we find ourselves in is pretty good for most people. look at confidence numbers look at household formation, et cetera, et cetera. people are getting by right now. we don't need a different normal. >> steve, thank you for weighing in randy, good to hear from you appreciate that. turning now from the fed to your bank account. new effort from google to get into consumer banking. kay rooney has those details from san francisco hi, kate. >> hey, contessa, google is

launching a checking account with citi group and stanford credit union the tech giant's immediate goal is customer data not necessarily profits right away they're looking into insights into purchase behavior, consumer finance to partially take on amazon in an ongoing battle for online search dominance. data research from jump shot shows amazon with 54% of u.s. product searches online. google is 46%. pretty solid duopoly google is behind here. the banking product offered through the google pay app will drive engagement to some existing products including google pay for citi group. on that side it helps to grow deposits from the bank going with checking accounts instead of credit card accounts is a key point here. goldman sachs, credit card, google going with checking analysts say google won't have to, quote, disappoint customers

for not approving them for a credit card. guys >> kate, that's an interesting point. it was always a thought process with steve jobs that he didn't want any customers to be turned down from an apple product, which was fair for him a partnership with an existing bank that might mean some banks are excluded but does again sth a general theme we've seen that the big tech companies, if they want to get involved, they're doing it through partnerships because they don't want to go through the rigamarole of full banking regularities themselves. >> why would you want to be in a banking business google is doing the smart thing. they don't need to worry about getting into that business they can further entrench themselves, though, with their existing consumers with another service. >> everyone else has said, therefore, the point of this clearly is to be able to access the data, fee they might get from citi for a checking account might be minimal i get that

perhaps this suggests, we don't know the details from the banking side they said we have loads and loads of data but only use it to better serve our customers we don't cross pollinate or sell that is citi allowing google more acti access to data than they have in the past >> they launched google in 2011. none of this is new. it's got probably 100 million users. people stored credit cards, kept using it or stopped. it's bundled inside the android. like life went on. they also get into financial things that they say this isn't great. in 2015, you saw them do that with insurance quotes. they're going to let all of their users, g mail account holders basically from one insurance company to another nine months later they said this is stupid. forget it. i don't think anyone should look at google as an investment based on this or sale based on this.

it's an experiment basically. >> $900 billion or so company, experimenting in banking, they don't want to go through getting a banking license. they need to be absolutely sure. >> not a glamorous business. you sell at 19 times earnings. why do you want to get deeply into an industry where the multiple is nine times earnings? what shareholder would say thanks for doing that? >> precisely anyway, there is more on that story. kate rooney, thank you for joining us check out her full write-up of the story online, cnbc.com after the break, small caps about to outperform. but still trading off record levels what that could mean and whether they could break out from here. >> plus dow component cisco gearing up to report earnings after the bell we'll bring you those numbers as soon as they hit. >> and we're waiting for president trump and a news conference with turkish president erdogan wel keou tre l'lta yheive when

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s. welcome back. take a look at disney, 10 million subscribers signed up for that right off the bat look at the stock now. we saw it earlier. >> unbelievable. >> 7.5%, highs of the day there. >> yeah. long. >> i thault you said wrong. >> no, long. long disney. the momentum here, to crash the app on the first day of adoption like i know it's -- >> that's not good that's not a good thing. >> no, it's great. they weren't ready for the demand it's phenomenal. >> we don't know if these people are all full-paying customers but relatively cheap to the others once they're on it's unlikely they'll cancel the pace at which they've done this is unbelievable. >> you're going to pay i've been saying for two years, you're going to pay. you look at the breadth, how many demographics it appeals to, little girls, little boys, adults. >> did you sign up >> i signed up but then i found after i signed up i'm getting it for free

through verizon. i'm a shareholder so i'll probably forget to do whatever i have to do they have my credit card they'll have it until i'm dead. >> through go. you've covered it. >> initially it had this big break out over the summer, did disney it got up into the 140s and spent the rest of the year consolidating in the 130s. this is the stock rebreaking out into new highs we're not talking about a fang-sized company and i think there's room to p upside. >> do you know who is drooling over this? nbc ahead of lauvenlgi inlaunch. >> they're hoping. >> is peacock commercial driven? >> commercial driven, yeah exactly. >> when they launch my show, it has a shot. >> disney up 7%. s&p up about .2% let's go over to mike for

today's market dashboard hello, mike. >> hi, wilf. we'll hit that s&p trend off the bat, calling it sparing the steed. pacing yourself on the ride in order to go farther. maybe that's what the market has been doing here. back on the horse. one of the big stalwart stocks is on the comeback trail again the crowd favorite, that's a big -- the biggest of all stocks we'll see how far that stock has come, apple, in a short period of time. and then a slow gallop that's what this market has been up to in terms of the volatility level. first of all, take a look at the s&p 500 over the last month or so this is when we broke high, got about 7% in the last five weeks. what's most interesting here is this part right here in the last week here are the lows for the day, for the s&p 500 over the last four days. 3078, 3073 the mark has refused to go below that as long as you stay above here,

there's absolutely nothing to worry about. right now it seems as if the market is biding its time, trying to work off a little bit of that over bought. s&p is the best looking index. russell 2000 is a nagging picture right now. it's been unable, two year chart. transports look similar. not much bearing on the large caps you've seen some separation happen there it does tell you that the risk trade is taking a bit of a breather at least right now and has not desighs ofly said it's out of this range. >> why the horse theme today >> it has nothing to do -- i didn't mean to trigger you and your fear of horses, wilf. >> try to keep that on the downlow, thanks. >> will rogers horse >> there we go either way. >> no offense intended. >> i still don't understand. >> i heard contessa is a

horsewoman of sorts. >> yes. >> mike santoli with the telestrator. telestrator his trustee steed every day. >> he grabs the reins. here we go. >> up next apple hits a record high as analysts named -- get this, robert mueller initiates coverage with a buy. we'll dive into that note. >> i think he's biased. nike parting ways. more direct relationships. we'll break that story down. (nervously) ready?

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welcome back to "closing bell." rbc capital analyst robert mueller with a note on apple saying i buy, initiating coverage with an out performing rating avenues for deeper integration into its customers lives. >> wonder why they're just initiating now only just discovered apple >> sometimes when you switch an analyst. >> i'm kidding buy on united and jetblue, sell on american and southwest and alaska, non737 max carriers are likely to start the first of the

year take two interactive, ubs giving take-two a buy rating, $140 price target josh, maybe apple price target here for 295, around about 260 today. as you were saying earlier, it's had a fantastic start to the year. >> i found their bull case to be really interesting they're talking about $335, i think, which is 17.50 bucks in earnings with a 19 multiple. i guess my question would be, why will it still trade at a 19 multiple as the market starts to appreciate all the positives that this year clearly have begun to be baked in the other interesting thing is on the buy back. apple has spent the last four years since 2014 buying back $240 billion worth of stock. they have $100 billion in cash right now and they use the term they want to get to cash neutral, which would imply that's another 100 billion bucks

that could go into pulling shares off the market. what i always say on apple, every day you sell it, there's one of three buyers. one, index fund, spy two, apple itself, or three, berkshire hathaway which of those things do you think you're smarter than? it's been a pretty good guide post. >> i would say this note does focus more on the iphone there than the kind of new business about your point to the multiple. >> not a lot left you need on the iphone 11 is very well received and they've also been successful at introducing at lower price points, which is something historically people felt apple would not be able to do. you're doing it right now. >> market flash on peloton right now. d diana olick has that story. >> moving about 8% higher on a report from bloomberg, saying that peloton is exploring apps for amazon fire tv and apple

watch and a cheaper treadmill and rowing machine are planned for 2020 treadmill retails for $4,000 extra delivery, tax, looking at 4500 peloton is pushing its free at-home trial for the bike, et cetera, thinking that's going to push sales in 2020 they said that in their latest quarterly earnings report. i've spoken to ceo john foley many times and he has never claimed it was a fitness company, always that it was a media company and that's where the money was going to be. he has always talked about other things after the bike. that's when he brought up the treadmill. talk about potential rowing machine, not surprising at all shares up 8% on peloton. >> still a fitness media company. >> yeah. you push him on that i will tell you, i've pushed him on it multiple times yes, we're fitness but we are media, we are streaming. it's content, content, content. >> i'm old enough to remember when go pro made that case to the street and it didn't go

well. >> right. >> lean into it. we're a fitness company. what's wrong with that >> as we talked about in the show efore, i'm a big fan of the product. never quite believed the valuation but diana, i love the idea of these apps lots of classes they offer don't require you to be on the bike and it makes it easier for you to be on your tv or whatever else the lower cost hardware products, though, maybe is what's making the share price jump today. >> perhaps. >> but it's going to annoy some of the first-time buyers who paid a higher price. >> absolutely. absolutely i mean, you look at the bike i have the bike myself i'm a big fan of it. recently they had a new screen we had to pay for because if you're an early adopter and they upgraded the screen, you had to put out a bunch of cash for the new screen now they're talking about lowering the price of the tread, you have to wonder about those who already got in that tread is cost prohibitive for some others would argue it's a fine piece of machinery, has a huge screen and if you're already paying for the media, that is

the streaming service on the bike, you get it on the tread for the exact same amount. lowering that price might get more runners in. i'm not sure the rowing machine is an interesting concept. >> diana, thank you. >> i was going to say there's something called an early adopter tax. >> right. >> that's the tax you pay for being the first to buy anything. >> i wait, sit back, watch you guys and then pay a lower price. 28 minutes till the closing bell driving the action, new headlines that china trade negotiations have hit a snag sent stocks sharply lower earlier. mostly, we've recovered at this point. fed chair jay powell says he sees an expansion and is not likely to cut rates further. and on watch for another record close for the s&p and dow, both on track to set new all-time highs at the close. time for the cnbc news update sue herera has it for us hello, sue. >> hello, wilf at this hour, attorney general

william barr launching a gun initiative, a revamped version of the 1990s project trigger lock initiative. he discussed it at a news conference in memphis. >> the idea is to use our existing gun laws to incapacitate the most dangerous, violent offenders. we are going to apply it with special vigor where gun violence is the highest, in places like memphis. >> surprising news on the drug resistant superbug front cdc estimating about 36,000 americans died from drug-resistant infections in 2017, but that is down 18% from 2013 officials credit an intense effort in hospitals to control the spread of dangerous infections >> and on a happy note, a 900-pound swarovski crystal star was lifted atop the rockefeller

christmas tree this morning. the star is nine feet wide with 70 spikes and a dazzling 3 million swarovski crystals it's that time of year. >> came so fast. >> it always does. >> christmas decorations were up before halloween i didn't know what to do with myself. >> christmas decorations start sooner in the uk because you don't have thanks giving to interrupt it anyway, there we go. last chance trade, 26 minutes left to the session. and we're still waiting for a news conference with president trump and turkish president erdogan. we'll take you to the white house when these two leaders take to their podiums. yields dipping with the ten year slipping back below 1.9%. "closing bell" will be right back th

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today's impeachment hearing

wrapping up as we speak. let's get down to ylan mui who is outside and has been watching all day and gives us an update ylan >> that hearing is all but over. nearly 5 1/2 hours of questions and testimony for the two witnesses, bill taylor, the acting u.s. ambassador to the ukraine and george kent, a top state department official. democrats were able to keep them pretty squarely focused on the issues of political pressure on ukraine, military aid and the potential implications for national security. >> our holding up of security systems that would go to a country that is fight iing aggression from russia for no good policy reason, no good substantive reason, no good national security reason, is wrong. >> reporter: republicans on the other hand, they kept trying to change the subject they brought up the mueller report they brought up hunter biden they talked about the fact that

ukraine has received military aid in the past and continues to do so, and they also called on democrats to allow the whistle-blower to testify, but guys, so far, democrats have not agreed to any of the witness requests that republicans have put insofar. back over to you. >> thank you very much, ylan appreciate that. with 22 minutes left before the closing bell, let get over to mike santoli for his second dashboard now. gallop away. >> one of the four horsemen, the nasdaq is going to be reporting earnings today for those of us who have been around a while taerks surprising it's a low-key event going back 22 years, this is the amazing thing here this is a monthly. on an intra-month basically it got up to $600 billion relative to the size of the market in 1999, it's bigger versus the market than apple is versus today's market. what happened, you had the crash. great business but ridiculously

overvalued stock extremely long kind of rehabilitation process of the company, it's now a steady grower but slow growth look how it's pulled back from its highs. lots of buybacks has kept the market cap from going a bit higher than it has it has been a big returner of capital. look at the valuation. similar story, trajectory f anything, more dramatic. up there 100 times earnings at the peak you're actually below the market multiple at 14, 15 times earnings one of the more remarkable things about cisco, it has seven-year bonds cisco seven-year bonds that own less than its own stock does right now. not a fast grower but maybe the numbers will show that the steadiness is something that investors might want to latch on to, guys. >> it's not that cheap either. i was expecting lower. >> the eyeballing it, it doesn't look as cheap. it's under 15 right now on a forward basis. obviously a little bit of a discount to the market no, it is not as cheap as it has

actually been in recent years. if you look at the overall tech universe, it's priced like almost obsolete tech, more expensive than the hps of the world but not quite nearly for example, semi conductors are going crazy because people think there's a hardware investment cycle out there. not trying to build a bull case for cisco but very modest expectations are built into the stock. >> mike, thank you very much 19 minutes left of trade the dow is on pace for a record all-time closing high. spx, just about a point off its own record close as things stand. a last chance trade. 18 minutes left. at leaf blowers.

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tothe problem is corporationsfix andanything.ading and the people who run and own them have purchased our democracy. here's the difference between me and the other candidates. i don't think we can fix our democracy from the inside. i don't believe washington politicians and big corporations will let that happen. the only way we can make change happen is from the outside. for me, this comes down to whether you trust the politicians or the people. and if you say you trust the people, are you willing to stand up to the insiders and the big corporations, and give the people the tools they need to fix our democracy. a national referendum. term limits. eliminating corporate money in politics. making it easy to vote. i trust the people.

and as president, i will give you tools we need to fix our democracy. i'm tom steyer, and i approve this message. 16 minutes left to go. what is your last chance trade >> costco. new record high in the xlp,

consumer staples people don't get excited when they see that. i'm not sure why costco is one of the top ten names in that group and looks phenomenal on almost any timetable you can look at the stock. i want to give you the trade here it's not too late. it's gone up a lot so has target and walmart this year this is a stock that each time it dips back down has been an opportunity to buy 50-day moving average is your north star here. if you're buying it as a trade and you want to manage risk, that is exactly where i would trail with the stop just below 50 day give yourself a little bit of room i think the stock goes much higher and look terrific. >> you know why they're not excited? it's like bringing home a 120-pack of toilet paper it's not that exciting but is a good value. >> it's quite expensive. >> but what's so great about costco, you look all over the economy. people are doing these subscription models. >> right. >> costco did it before anyone

i think the stock has legs i would not be afraid of it here it's above 300 this stock looks like it wants to trend higher. >> uninterrupted coverage of the final minutes of trade we take you inside the market zone when "closing bell" zone when "closing bell" returns. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you. oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these?

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from wealth management here as well dows high by 0.4%, just set for a record all-time close itself, up about a point or so nasdaq slipping five basis points sounding bullish on the stock market, weighed in on what's driving the market higher in his eyes. >> we've got an explosive combination of monetary policy and fiscal policy right now. >> on the upside >> on the upside. >> stating a couple of obvious points and enough so far to keep him up again. >> large part it explains why we're here but, you know, the market operates this year versus last year basis going into 2020, we're going to have more fed stimulus than we just got or are they on hold

more fiscal push it's a matter of substantiating the levels we're at without necessarily saying this is market fuel. >> nike says it will no longer sell its products on amazon. hi, court. >> after a two-year pilot, nike is ending the sale of its products on amazon in part focusing on, quote, elevating consumer experiences through more direct personal relationships. nike items will likely pop up. nike won't be the last to leave amazon relationships it's not the first either. some brands see amazon as another retail partner al kin klein has been pleased with exclusive products sold on the site others like birkenstock screw amazon more as a threat. >> thank you for that, courtney. josh, what do you think, is this going to be a wave of the future >> i think they gave it a shot in 2017 and said you know what

maybe this will be the best way to counteract people selling third party or counterfeit new ceo is the guy from ebay he has e-commerce in his blood why would he want to cede 10% of his sales to a platform if nike can do better on its own one of the few companies that, a, has been doing retail forever and, b, has financial resources to build apps. i think they have a shot to do it i would not say all of a sudden all these other brands will leave amazon most of them do not have the wherewithal and the consumer touch that nike has. >> and their own nike app has been hugely successful and as mark parker said a big focus. >> they've got the right guy the other thing is they've been successful with the reselling apps themselves like stock x, et cetera they're talking to all these

other companies. they'll figure it out. >> the initial numbers are in on disney plus, and they're pretty impressive julia? >> pretty impressive, indeed, wilf disney plus has more than 10 million sign-ups since launching yesterday morning, disney shares rising some 7% to a new all-time high and today's move is disney's biggest one-day gain since the day after it unveiled the disney plus app in april. netflix shares, on the other hand, are down 2.5%. dan ives called this better than expected 10 million number for disney jaw dropping say this, quote, makes the house of mouse a legitimate streaming competitor on day one to netflix and could hit its long-term subscriber targets by 2024, 60 to 90 million subs, potentially two years earlier at this pace back over to you. >> julia -- sorry. continue. >> who comes next in terms of

launching streaming services now and what does it mean for them >> who comes next immediately is going to be hbo mac, as they roll out the beta of their service before a full launch next year. then there's peacock, going a different direction. that's ad supported. that's launching next spring as well and the other thing to watch, contes contessa, is that once these apps launch it's not like it's game over. they'll continue to add content. apple tv plus launched with just about less than a dozen shows for what they're going to be doing is continuing to add more exclusive content. yesterday i reported richard plucker is in advance talks to have an exclusive deal with apple. it will be really interesting to see how all the different alliances fall in these new streaming wars. >> julia, thank you very much. mike, my question on this is 7% jump is pretty big for stock that's performed well. and this isn't going to be a huge portion of revenue for a while. and it's getting that kind of -- you feel like it's starting to get a netflix multiple.

>> i wouldn't say netflix multiple, no the enthusiasm is so strong for the general area, without a doubt, 10 million in a day is outperforming most expectations. it's viable on day one the question is, is the stock just -- is it too easy to have an excuse to pile into a stock that's already working based on this news item arguably, yes. right? quarter trillion dollar market cap company right now. it's surprise to see it jump this way not bearish but it's surprising and you would think it has to settle down. >> piling on if you've been under. >> brand name stocks get you involved and have a feel-good reason to do it at this point. >> sky worx, after initially dropping 5%, the chip maker beat the top and bottom lines revenue dropped year over year for the quarter. meantime, the ishare semi conductor is up. >> what's driving skyworks is a

little different than what's driving the overall semi business they've climbed into every durable good you can sell. skyworks is a much narrower niche. big leaders in semis biggest stock in the s&p this year overall and best semi as a result and intel all look much better than some of the companies that more specifically focused than just on, for example, communications or smart phones the story here probably not representative of the entire semi conductor rally. >> we've got just under four minutes left to trade. set for record all-time closing highs on the dow, comfortably on the s&p just about not quite on the nasdaq cisco earnings hit josh has a preview. >> so, wilf, here is what we expect from cisco. 81 cents on revenue of $14.1 billion. investors play close attention to cisco

it is seen as an important barometer of tech spending what ceo chuck robins has to say about the macro environment, less spending by his customers trade tensions, tariffs. how cisco's business is performing in china. and the 5g rollout back to you. >> all right, josh thanks mike has more on the internals of the market today. mike >> a little bit soft that's been the trend the last few days up versus down stocks right now, it's been negative all day it's still fighting from weakness not profoundly negative but obviously more stocks down than up the last five to ten days this has weakened up fairly substantially, a fatigued market quickly, defensive sectors working today, utilities versus banks as yields have slipped back that's obviously been in favor of utilities today it shows you they oversold yield groups you have an excuse to buy them today with the ten-year going back down in krooeld. >> ten-year slipping but not

much. >> relieving a bit of the pressure. >> we've got just over two minutes left of trade. let's get to rick san telly for check on the bond market hey, rick. >> hi, wilf. we came in this morning. lest we forget, 2% or higher 20th month in a row. intra-day of tens and dollar day index. super tight ranges in both if you open the chart up to the bund overseas, it moved from 25 to 30 minus, of course, that's a 25% move we need to keep in mind that these small yields in europe have moved a lot but they have stalled a bit. final finally, let's move over to the nasdaq with bertha coombs. no records today, bertha. >> no. we've been trading in a tight range here as well amd, the best performer on the nasdaq for the year it's the best performer in the s&p, hitting a new 52-week high this stock is still 20%, y2k high as one in three of the

large cap chip makers. data dog, hitting it out of the park on its earnings with much better revenues than expected, break even resolve meantime, it's also at an all-time high while its rival, another ipo -- not a rival so much but another ipo that came this fall, smile direct, having its second worst day ever, worst only was the day they debuted when they were down 27%. the problem here, the regulations have not cut up with their business model they have a rough road to hoe. over to bob. >> bertha, it looks like we'll hit a record high, 3094 on the s&p 500. of course, we had a number of events today mr. powell confirmed the fed is on hold. the market generally liked that. it moved up while he was testifying there we had talks about snags in trade negotiations hitting the market in the middle of the day down the market doesn't seem to really want to believe that. near the highs of the day. china stocks, alibaba, very

heavy, the chinese online retailer did say it applied for a secondary offering on the hong kong stock exchange. why list hong kong when it already lists here you have 600 million alibaba users. that's why some hope they'll buy it in hong kong and boost the price up 20% since they floated the idea of that listing there's the closing bell just barely a new high on the s&p 500. >> welcome to the closing bell, everyone i'm wilfred frost. >> and i'm contessa brewer cnbc markets commentator. >> a record all-time closing high on the s&p 500 fractional as bob mentioned the dow getting there quite comfortably. nasdaq, which had one yesterday. russell still 16 or 20 points away from its own record

all-time closing high. we're still awaiting that news conference with the president and the turkish president, president erdogan. it's running about 45 minutes behind schedule. not sure what the delay is there. josh brown, ceo is still with us and paul hickey is joining us. mike, first of all to you, not big gains. but relatively encouraging when we did get the fed chair confirming essentially there's no more rate hicuts this year. >> i would call it a flat day. largely flat with a slight upside bias. nonetheless holding steady at all-time highs with an overbought, lots of excuses to pull back and not pulling back is probably bullish. >> that picture we're watching in washington, d.c. where we're expecting president trump and the turkish president erdogan to speak momentarily. the president yesterday, we saw

him get up and sort of tackle trade and while he did not promise anything new on the front, he also threatened to hike tariffs again josh, when we're looking at these trade headlines, we've been in this a long time and it still manages to move the market. >> it's really important not to buy and sell based on what donald trump says about the economy or the market. he also claimed ivanka trump created 14 million jobs. so take it for what the source is. >> it was 13 million. >> my apologies. that's probably true so i think the big picture, if you've been reacting to any of that stuff, you probably have not done well this year. if you've ignored it, here is your prize 10% in bonds, 25% u.s. stocks. you made double digits in emerging markets, europe, japan, junk bonds that's really been the big picture, to not pay too much attention. >> paul, really quickly, what do

you feel about valuations in the market >> let me preface it by saying it's a terrible timing tool for the market something to keep in the background right now you have the s&p 500 in the 83rd percentile valuations, the tech sector in the 99th percentile. you have to be aware of these valuation levels the market isn't cheap at this point. against that backdrop, we do have a number of positives going on in the market what we've been talking about. while it sold off on these headlines that there were snags it wasn't much of a sell-off three months ago, we would have seen 1% sell-offs. the market is adjusting and ignoring these headlines just as josh was mentioning there, to ignore these headlines because we shouldn't be focusing too much of attention on them. >> we're watching right now as the secretary of state is there. we've also seen the commerce secretary, treasury secretary.

and some of the president's most vocal champions, lindsey graham just came in we're on the heels of wrapping up the first impeachment hearing in congress. is the market underpricing the risk of the political that's happening in washington, d.c. with impeachment and the like? what do you think, paul? >> you know, i think we'll have to see what comes along as we go if the president -- what all matters is what happens next election i think the odds of the president being impeached, convicted in the senate are slim to none at this point. it's just a matter of where do the election odds look going forward? when we do see elizabeth warren's poll numbers starting to go up it does have a bit of an impact on the market. the market is taking that into account. it's not the major issue right now because it's still -- you know, it could go either way at this point. >> josh, financials had a bad day today. buying opportunity >> yeah, i think so. there's an up trend there.

what's important to note about these stocks is that even despite the fact that they started to move higher, if you pull the chart back a little further you see drastic underperformance relative to any benchmark you want that's number one. number two, the dynamic that's driving them higher is the steep in the yield curve, back up in the ten year and the fed holding down, at least for now, if not cutting outright later the fed funds. as long as that persists, these stocks can be accumulated. maybe earnings stocks are too low going into next year maybe we haven't fully accounted for that in the numbers. >> you've been looking at aggressive positioning by short traders. >> very short term tactical indicators are saying traders are buying too many call options, they don't cooperate with the fact that we'll go up and away from here that's it. tactical indicators say that the markets start to run a little bit hot. you can go sideways, like it has

a few days, relieve some of that pressure you don't necessarily have to have a sharp pullback to kind of relieve all of that. >> still waiting, of course, for this press conference between president trump and president erdogan to begin there, of course, is the first lady entering the room that might mean that the president is close behind. this, coming about 50, 5-0 minutes later than expected. unsure, of course, what that implies, whether there was a heated conversation between the two presidents we know they clashed on the phone a month or so ago before turkey's incursion into syria. it will be fascinating to hear the president and president erdogan, and in response to today's impeachment hearings back to the markets. josh, all-time record closing high yet again for two of the major indices out of the three do you feel that's justified, all things considered? >> 19th closing high for the s&p 500 of 2019. we had 19 of them last year. we matched the pace of new highs

last year. i wouldn't say -- >> josh, i'm going to interrupt. my apologies here comes the president of the united states and the president of turkey, president erdogan let's listen in to this news conference. >> thank you very much, everybody. please i want to begin by welcoming the first lady with us today and the first lady of turkey thank you very much for being here this is a great honor to have you. and we had a wonderful and very productive meeting before we start, i would like to thank president erdogan for releasing detainee sercan golget who was in different forms of detention. i appreciate that very much. that was a very nice tribute and he will be coming back at

some point in the not too distant future very good news for the united states and also very good news for turkey turkey, as everyone knows, is a great nato ally and a strategic partner of the united states around the world our economic relationship has tremendous potential and continues to expand and to grow direct engagement and diplomacy between our nations are essential to ensuring a future of peace and prosperity and promise for our citizens among the topics we discussed is the situation in syria last month i sent vice president pence, secretary pompeo is with

us president erdogan the united states and turkey achieved a tremendous amount on that day and i think we're working toward getting it better and better it's a complicated situation going on for hundreds of years i want to thank the president for his partnership as we work to build a more stable and peaceful and prosperous middle east we've assured each other that turkey will continue to uphold what it's supposed to uphold i'm a big fan of the president the cease fire, while complicated, is moving forward

and at a rapid clip. the united states is working extensively on other security issues very strong second, i might add. turkey has been steadily increasing its defense spending and is very close 2% gdp range they're eight out of the 28 countries that are current in terms of their obligation financially. turkey has made a vital contribution to nato's resolute support mission and its partnership was important to the isis caliphate we took out al baghdadi and took helm out, we did

turkey knew we were going over certain areas we're grateful to president erdogan and the citizens of turkey for their cooperation in the constant struggle against terrorism he fights it like we do. key to our security collaboration is our trade defense and military equipment program. american foreign military sales to turkey total many billions of dollars and turkey supplies component parts to many american defense programs they make parts of the frame, as an example, for the f-35 turkey's acquisition of sophisticated russian military equipment such as the s-400 creates very serious challenges for us and we are talking about it constantly we talked about it today we're talking about it in the future hopefully, we'll be able to

resolve that situation we've asked our secretary of state and minister of foreign affairs and our respective national security advisers to immediately work on resolving the s-400 issue. working toward a $10n two-way trade agreement. secretary ross is here i thin we have a lot of trade with turkey but it could be many times larger turkey would like to see that, and it would also be good for the united states. we intend to bring it up to about $100 billion that would be four times what it is right now our goal is to expand commerce between the united states and turkey, reduce our trade deficit and ensure a truly fair and reciprocal relationship. we are, just for those of you that have any interest, we discussed it today also, our trade agreement with china is

moving along very rapidly. we'll see what happens it's moving along rapidly. china wants to make a deal that, i can tell you one of my chief priorities as president is removing the barriers to american trade and investment and ending illicit practices that harm our workers. we encourage turkey to further open its markets and they are doing that they are doing that, very much toward american goods and american services. our markets are open turkey is opening up their markets and they're opening up rapidly. mr. president, as we have seen in recent weeks, the u.s./turkish alliance can be a powerful force for security and stability, not only in the middle east but beyond i look forward to working with you and to your representatives, i want to thank you very much for you all being here i've gotten to become very familiar with all of you and i really appreciate it you're doing a fantastic job for the people of turkey and i look forward to continuing to find a common ground, harness

common purpose and to advance the vital interests of our people and the abiding friendship between our nations we have a great relationship, both personally and with the great country of turkey, and we look forward to moving that forward and making it an even bigger and better relationship thank you very much. thank you. >> thank you thank you very much. [ applause ] >> president trump there, finishing his opening remarks. we're just going to hit a pause button in terms of watching that as president erdogan makes his opening remarks. we'll rejoin the conversation for the question and answer part of the press conference. the president not making too much news there in the opening remarks. we'll see if that changes during the q & a. mentioned the cease fire he has organized with turkey, following turk he's incursion into syria we'll see, of course, if there are any harder questions posed to the two of them coming up. >> back to the markets

of course, the s&p 500 closing at a record all-time closing high, just about the dow also doing so. though the nasdaq missing out from its own record closing. paul hickey is still with us let's get back to the broader market valuation starting to get stretched but otherwise plenty of factors support these record highs? >> a lot of factors, starting with the fed powell, you know, we were told two weeks ago they sent the message that they're going to be on hold and for the foreseeable future, and that was only reconfirmed today. you have the fed working in your favor n terms of breadth, s&p 500 cumulative, s&p 500 midday cap and small cap midday line hit new highs last week. mid and small caps haven't done quite as well as the large caps,

breadth has been strong underneath the surface that's working in the market's favor. some time between now and year end when you have this strength so far in a year, the rest of the year almost is always positive so, i mean, you have a number of factors working in your favor. eventually, the fed will have to come in and, you know, potentially hike rates at some point if the economy and the markets continue to do well. for the foreseeable future in the short term, i think the market has the wind at its back here. >> we will return to that press conference between president trump and president erdogan of turkey when the q & a begins meantime, though, cisco earnings hit. stocks trading lower josh lipton knows why. >> eps of 84 cents street was at 81 cents, revenue at 13.16 billion in the quarter. looking for 13.09. for q2, cisco guide for eps, 75

to 77 cents, the expectation was 79 cents for revenue to be down between 3 and 5%, the expectation was revenue would be up about .2.6% core networking, 7.5 billion that's in line with expectations applications, 1.5 billion. and security smaller but faster growing at 815 million kvens ki conference kicks off at 4:30 eastern. >> we're discussing how this will set up earlier. had a bad report. >> yes. >> it has not really been able to regain a lot of momentum there. traded after hours is interesting right into this $46, little below that level. that's the bottom end of that range. i think there will be a lot of eyes on that tomorrow. >> this is another one where weakness in china and the trade issues have affected paul, how much turn around would

you expect to see if president trump could come out and report some good news on this front >> i think it would be helpful cisco doesn't get a ton of revenues but they've seen an enormous drop in those revenues. that's something to keep in mind before the 4:00 hour, he sumed up the thought behind cisco perfectly. as long as it holds this $46 level, people who are maybe a little bit scared ofd the valuations can safely go into cisco because it's not nearly as expensive relative to its ten-year average as the overall tech sector. and it yields 3% now, raised its dividend every year since the start of paying one in 2011. it's a safe dividend it's likely to keep rising going forward. it's a little bit of a conservative tech stock, if you will. >> all right paul hickey, thank you for that.

>> we'll leave it there. thank you so much for joining us when we come back, we'll have the q & a of that press conference between presidents trump and erdogan. 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. 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. welcome back to "closing bell." the dow up a third of one percent, disney playing a big part s&p did also have a slight gain, enough for its own record all-time closing high. the nasdaq just lower and missing out on its own record.

let's get to kayla, listening in to those opening remarks from the press conference from president trump and erdogan. >> after starting more than 45 minutes late, wilf, we're still in the prepared remarks part of this event president erdogan is speaking right now, after president trump talked about the great relationship between the two countries and the fact that turkey is maintaining a cease fire in northern syria after a military operation following a call with president trump and the removal of american forces in that area president trump also saying that the two countries are in talks to quadruple the trade between the two countries to about $100 billion, reupping a statistic from just a few weeks ago when president trump threatened to rip up a $100 billion trade deal that at the time was under way, he said. and people were wondering where that statistic was coming from it appears those talks have restarted. a month ago, wilfred, president trump promised to obliter aate

turkey's economy if it did not cease its operations in northern syria. it seems they're on good footing. there were several critical republican senators that visited with president erdogan, offering harsh words and harsh questioning for him. i'm sure we'll learn more about that part of the program as it continues. >> kayla, thanks so much please keep monitoring that for us we will return when we do get to the q & a part meantime, we'll hit pause on that and pivot to google's plans, potentially to start banking in their partnership with citi. let's bring in editor in chief of the verge jumping and changing topics, update for us the news we learned today, summarize it for us. >> google will partner with citi group in a small way to provide front end to checking accounts there's a report in the wall street journal they followed up and basically

confirmed it you see a lot of big tech companies provide these consumer front ends to traditional banking services apple has the apple cart with goldman sachs and is looking into checking accounts as well you're seeing the big tech companies run out of markets and consumer finance is one of the last huge untapped markets for them to go into. they're partnering with banks because obviously they don't want to bear the regulatory burden that comes with that line of work. >> what do they get out of it? what do the banks get out of it by partnering with google? >> building consumer technology is really hard you've seen them try i don't think anybody in the united states loves their banking app. they've promoted apps, put them out there. monzo in united kingdom and other countries build really great consumer apps. there are only so many engineers, designers, people with the actual expertise to build a best in breed consumer product,ity rated over time and competing against a company like apple. i think what google gets here,

they get to close the loop of their advertising business with actual consumer spend. they say they're not going to sell the data. i think that's always a red herring with google. they're in the business of selling advertising. they can prove advertising gets to spend. >> in this recent mckenzie survey, 15% said they would trust google with a financial service. they beat out apple and facebook but not amazon what does it take to earn consumer trust when you're dealing with their money >> with google -- google is a beloved company. they provide a clear utility to people it does it reliably, quickly you see that translate into all kinds of other services like that other companies, apples, microsofts, a product you use, a tool sometimes unreliable. you see with google, they're in that utility zone. that builds a lot of trust. >> nilay, thank you so much for joining us still ahead, early disney

plus subscriber number sends disney stocks rocketing today. does the stock have more room to run? we'll discuss that. and when we come back, we'll go into that q & a of the press conference between presidents trump and erdogan. welcome back let's listen in to the q & a

here is president trump. >> these are people that want to see piece paes in the middle east i thought it would be appropriate for them to come over they met with the president. we had a lot of very frank discussion and we're dealing with a very big subject, a complex subject. it's been going on for centuries, in many cases, but we're making a lot of progress tremendous progress in the middle east. okay couple of questions. go ahead. >> thank you, mr. president. >> thank you. >> first, i would like to start off getting your general reaction today to the impeachment hearings on the hill do you feel that democrats made their case, and how do you feel about the republican performance? >> you're talking about the witch hunt is that what you mean? is that what you're talking about? i hear it's a joke i haven't watched. i haven't watched for one minute because i've been with the president, which is much more important, as far as i'm concerned. this is a sham and shouldn't be

allowed. it was a situation that was caused by people that shouldn't have allowed it to happen. i want to find out who is the whistle-blower and because the whistle-blower gave a lot of very incorrect information, including my call with the president of ukraine, which was a perfect call and highly appropriate. and he wrote something that was much different than the fact i want to find out why the ig, why would he have presented that when, in fact, all he had to do was check the call itself and he would have seen it i'll be releasing, i think on thursday, a second call which actually was the first of the two, and you'll make a determination as to what you think there. but i've heard just a report, they said it's all third-hand information. nothing direct at all. can't be direct, because i never said it. and all they have to do is look very, very simply at the transcript if you read the transcript, this was analyzedby great lawyers

this was analyzed by greg jared, mark levin, analyzed by everybody. they said the statement that i made, the whole call that i made with the president of ukraine was a perfect one. so that this country gets put through that, that we have to waste this gentleman's time by even thinking about it, talking about it, i would much rather focus on peace in the middle east and i hear that it's a hoax and it's being played as a hoax. that's what i hear but you'll have to tell me go ahead. >> then if i may on syria and peace in the middle east, president erdogan talked about repatriating syrian refugees back to their homeland have you had discussions with european leaders >> no. frankly, europe should be paying for this, to a large extent. as of this moment, turkey has been paying for most of it i think the president was saying today they've spent over $40

billion on the cost of that. 40 billion how much 40 that's what i said whatever he spent a lot, okay forgive me they're throwing out all these different numbers. how is that, 40 billion, correct? $40 billion. i've heard that number from others that's a correct europe has contributed about three. and a lot of these people would go all throughout europe i mean, it would a devastating situation for europe because he has 4 million people he has a lot of kurds, too, that they're helping and taking care of so i have spoken to europe about it i think they should help us with isis many of them left france and they left germany, and they left uk they left different countries, and these countries should help us because if they ever did get released, which we won't be doing, but if they did get

released, that's where they want to go, back to france, germany, uk and all those other countries that are not helping us. i gave them the option, would you like to have them back and intelligently they said no, thank you. but that's not right and it's not fair. i can tell you also that turkey captured, when they -- some escaped during the conflict when they had the heavy shooting, and i mean i think i know how they happened to escape but it's one of those things. it doesn't matter because turkey captured everybody that escaped plus an additional group when we took over, when i became president, isis was rampant all over the middle east and as of about a month ago, lindsey, i think we can say we have now 100% of the caliphate they'll always try and grow, but they haven't been able to do that what we did last week with al baghdadi, who is the absolute

founder, leader set them back. we have our number two and have sights on their number three they won't be growing too fast turkey has been helping us a lot. >> with that, i also have a question for president erdogan with what you're calling a realignment along the northern syrian border, a lot of christians in that region are feeling very vulnerable. groups on the ground are saying attacks on christians have increased under this new policy and that they're not feeling safe any longer. can you guarantee that the turkish government will also protect christians in that region in fact, there was an attack this week and isis is claiming responsibility >> translator: thank you thank you. on the contrary, kurdi, azidi and chris crayon minorities is

an area we're especially sensitive about and we have certain different plans, whether it be the ones remaining on the side of syria whose sanctuaries have been destroyed, whose churches have been destroyed will see their sanctuaries getting revived and their churches will be reconstructed so that they can go back and start praying there again. and these are the plans that we're making for them. as i said before, the christian minorities, catholics, and yzidi, the ones who are living on our side of the border have no problems whatsoever but the ones remaining on the side of the syrian territory will see their worshipping practices restored and revived in a special manner. they are receiving health care they're receiving humanitarian aid in every aspect possible

thank you. >> thank you very much would you like to pick somebody? >> a friendly person from turkey, please friendly only friendly reporters we like too many of them around. >> thank you, mr. president. >> thank you. >> you have the burden of obama's flawed foreign policy and one of those flaws was align the u.s. with u.s. designated terrorist organization pkk, syrian offshoot. the damage that it did to u.s./turkey relations. however, you also invited the ring leader to the white house and he is responsible for at least 18 terrorist attacks in turkey, which caused the death of 164 soldiers and 40 civilians. so after today's meeting, do you

still think of inviting to the white house, which would be very offensive and hurtful to the turkish public >> i had a very good talk with him. we highway very good -- recently we're working very closely together and we're also working very closely together with your great president. and a lot of things are happening. a lot of very positive developments are happening a lot of that is definition. what's your definition of the various groups within the kurds. you call the kurds and then you have various kurds and some like them and some don't. i think we've made a tremendous amount of -- we've gained a t m tremendous amount of trent and knowledge over this period of time i will say that the relationship with president erdogan and turkey has been outstanding. it's a major country with a tremendous military. they're one of our very big purchases of military equipment. they have the finest equipment

in the world, which the united states makes by far we make the best equipment in the world turkey understood that a long time ago i think a tremendous amount of progress is being made thank you very much. you can ask the president a question now same reporter. are you sure you're a reporter, you don't work for turkey with that question >> i'll be glad to >> translator: mr. president, about feto, we are not getting the best of news out of the united states and the feto office targeting turkey is expensively invested in their daily words, but i can see certain traces that the government is willing to understand more about feto my question is how do you perceive this situation developing vis-a-vis the feto

organization and the american response to feto in that regard? can we expect anything further >> translator: yes, thank you. during this current visit we are going to submit, as we already have, actually, a great deal of documents and evidence and feto is a terrorist organization, and he is the leader, the ring leader of this terrorist organization they have killed 251 people in turkey they tried to undertake a coup against the government, the state and more than 1,000 -- more than 2,000 people have been injured, and the ring leader is living on an area of 400 acres in the united states, running his network all around the globe. and this is something unacceptable and during this visit, as i've said before, we have introduced an additional array of documents. we will submit them to the relevant authorities, including

mr. president. and in light of these documents, i think they will appreciate the situation. i'm sure they will do the same for us. >> fox, please. >> thank you, mr. president. >> thank you. >> i note that you spent a lot of time with the tv today but one time ambassador bill taylor recounted conversation that an aide of his heard the day after the phone call with zelensky on july 26th in which the aide says he heard you say to sondland how are things preceding with the investigations and sondland, according to this aide, repeated back to you that ukraine was prepared to do everything that you wanted them to do. is that correct, and can you fill in some more -- >> i know nothing about that first time i've heard it one thing i've seen that sondland said was that he did speak to me for a brief moment

and i said no quid pro quo under any circumstances, and that's true i've never heard this. in any event it's more secondhand information but i never heard it. >> do you feel having conversations? >> no, not at all. not even a little bit. the only thing -- and i guess sondland stayed with his testimony that there was no quid pro quo. pure and simple. yes, please? >> and president erdogan, president trump sent you a letter on october 9th urging you not to launch a military action in northern syria. he said quote don't be a tough guy. don't be a fool. you ignored that letter and went ahead and launched a military action into northern syria can you explain why you ignored the president's warning? >> translator: well, this letter was represented to mr. president

this afternoon and i've also underlined the fact that a terrorist should not be considered by a country such as the united states and this individual has been instrumental in the killings of hundreds of turkish civilians and he is a person labeled as like a son for the terrorist leader currently incarcerated in turkey so a person like this should not be welcomed by a country such as the united states. and similarly, this person was welcomed by a country such as russia so, it's very difficult for me to understand these when we're trying to fight terrorism on a global scale if we're going to sustain our

fight against terrorism in a healthy fashion, we need to be much more sensitive than we currently are. it happens to us today and it will happen to somebody else tomorrow is a saying that goes in our language. we have also provided information and the document thereof to our the white house including mr. president and i submit aid document produced by cia pointing out to the fact that this individual is a terrorist to mr. president and as i've said before, i've shared them with his excellency, mr. president, and we gave back the letter that we have receive

received. >> thank you very much. >> the presidents, trump and erdogan, of course, ongoing press conference we're going to dip out of that press conference questions on both the middle east but also on today's impeachment hearings, which the president, president trump described as a sham and as a witch hunt kayla tausche has been listening in as well your reaction to what we heard in the q & a so far? >> certainly interesting, wilf, that president trump says he has not been watching any of the impeachment hearings on capitol hill today he was asked by one reporter specifically about a moment that was new today, that ambassador bill taylor included in his opening testimony where he said that his staff informed him of a call that a staffer overheard in ukraine where the former -- or current ambassador to the european union, gordon sondland was on the phone with president trump and said that -- was discussing the investigation of

the bidens by ukraine the day after that call with zelensky, asked directly about that conversation, which would be the most direct tie of the president to the allegations in this impeachment inquiry. president trump said he doesn't remember that call, he doesn't remember that conversation even a little and that it didn't happen so, seemingly responding directly to that allegation by ambassador taylor on capitol hill today, even though president trump said he didn't watch a single minute of it. >> also, he was being very clear and said again this seems to be the go-to line, there was no quid pro quo so, trying to undermine whatever the testimony is on capitol hill we'll continue to monitor that news conference coming up. >> kayla, thank you. up next, disney dominates the stock soaring today on the ck of strong early numbers we'll dig into that major move when we come back.

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nice rock. it's time to drop gold. go digital. go grayscale. 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. shares of disney sharply up after hour after the company announced 10 million subscribers. buy rating on disney and $170 price tag, 10 million on can a juan is why this is a headline bernie, what's your take and how much does this surpass expectations >> how many convert to paying subscribers? we think a large amount of those will convert to paying subscribers. one, the deal with verizon a lot of customers are getting

them for free and two, the content rollout. de mandolorian. high amount of those subscribers will convert for what they thought disney would announce for the december quarter. >> where are you looking for the next leg of growth >> yeah. i think we'll continue to get growth here. we haven't even had a weekend yet. tuesday night. >> let's push forward anyway. >> exactly but one interesting, one stream video survey a couple of weeks back and one key area people said they were interested in signing up for disney plus content is marvel originals. they're not releasing those. five in fiscal 21, another star wars original show, prequel to rogue one as well. a whole lot more content to come. >> aren't those marvel fans jumping on the band wagon right away they won't wait until the new

original content is offered up, right? >> i think there will be a leg of growth as well. >> 10 million is huge. is 7% stock price move a little too much >> $170 price target we think optically if you look at the stock it appears expensive, trading 20 times earnings the way we get bullish is value the direct to consumer business, 2025 revenue 5 1/2 times multiple on that, discount it back and the remaining part of disney is trading at 95% of the s&p multiple. >> so you think the market will take this company with $85 billion in revenue, with cash flows and all the rest of it and say we're going to pay a netflix multiple roughly for the streaming piece? >> for that piece of the business, certainly. i think if you look at it on historical valuation, you're missing a great asset they're creating the stock was at 110 in april. there's a negative value for

direct to consumer in there. >> roku is up today. i think 4.5% off the back of disney's strong numbers today. >> i personally don't cover roku i think it shows that there's a -- kind of just a snowball rolling down the hill in terms of streaming and direct to consumer the ott ad market is only a couple billion right now that compares to the market about 15 billion with peacock launching next year, i'm quite bullish on that and we can continue to ramp from there. >> thank you for coming in appreciate that. >> thank you. a news alert on wework frank holland has the details for us frank? >> breaking news on wework bleeding continues for the real estate company in a bond presentation to investors, wework said its net losses more than doubled in q3 1.25 billion in q3 versus 479 million a year ago and this as the revenues nearly doubled. its metric for customers, 115,000 desks recording a record

amount in q3 up from 3,000 widening in q3 even as revenues nearly double. back over to you. >> frank, thanks for that. confirming those numbers here as well separately. mike, the key now is the next couple of quarters don't matter so much because financing is secured for now. >> right. >> clearly, though, this exposing some themes. >> it shows the urgency to cut costs very quickly and very dramatically this was the run rate going into this whole phase. >> up next, carry on or fear the calm mike santoli has the telestrator with a look at the s&p and what its recent tradinge ining ranges about the markets. 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

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let's giddyup over to mike santoli for his final dash board of the day mike. >> yes, contessa when we called it a slow gallop but this is a look at s&p on top and how calm it has been on the bottom this is the 20-day average of the high to low range in the s&p 500. look how low this is right now today fits with this, half a percentage point from high to low.

and look at the other periods when we basically were at apprehend the levels roughry corresponds with where the market has flattened or calmed down. look how calm things were in 2017 this was a nirvana market kept going up rare but happens. >> thank you for the horse theemd day at the dash board another news articles on american outdoor brands and frank collins. >> shares of american outdoor brands up over 4% after the company announced plans to split in two separate and independently publicly trudied companies. the current company will return to the name of smith & wesson making firearms. the pin off producing outdoor products and accessories shareholders in the original company get stock in both companies to maintain interest, again shares of american outdoor brands up more than 4% back to you. >> okay, frank thanks for that. come up next lists beth warren out with a new ad blasting billionaires billionaires all the details when

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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. senator elizabeth warren out with a campaign ad targeting billionaires and featuring names familiar to cnbc. >> it's time for a wealth tax in

america. i've heard that there are some billionaires who don't support the plan. >> thevyfy indication of billionaires makes no sense to me it's bull. >> cnbc brian schwartz was the first to break the story joining us back from hq. i guess a similar theme that we have heard from her for a while but much more focused and targeted this hour. >> clearly this is the latest salvo in the battle with wall street and big business leaders, particularly with leon kupperman. we got a response from him i got off the phone with leon a few minutes before i came on your air he called her a disgrace went through a variety of things with profanity and everything else you can read on cnbc.com. in ad will be airing tomorrow in new york and washington markets. it's the target audience clearly is wall street and business executives who have criticized elizabeth warren's wealth tax

plan that's what she leads with in the spot mr. kupperman is the target. lloyd blanc fine and a number of others this battle is ratcheting up between elizabeth warren and wealthy business leaders mr. kupperman being one at this point. >> i watched the ad briefly in the last break and as it relates to mr. kupperman, it does say he was charged with the s.e.c we should point out he settled without admitting wrong doing. >> that's correct. >> that's important to note. there is another point here. in that he was on our show last week he has been on with scott, talks to you and responds. i don't mean this focus particularly on lee. because i've interviewed jamie dimon and endless comments one wonders whether the billionaires should be quiet and with it feeds the story. >> these comments continue to play right into her hands. i've been talking about this for a while. every time they respond it gives mere a free ad on twitter or one

of the ads on tv and, you know, people catch on to it. and this has been giving her brand of the anti-wall street a boost, these types of responses from business leaders around the country. and you're right it's just feeding into in narrative and maybe it's best for them to not say so much about elizabeth warren. >> bliek moormg is not keeping quiet. instead he is saying hey, i should do something about this and do throw my hat in the ring. >> and the ad comes as he considers runs for president. >> nice work there we should mention the ad byte does include cnbc brian's airing tomorrow cisco down after hours otherwise record closes just about. >> the market continues to kind of hang in there it's been very firm up at these levels we o we can point to the fact that looks like people are complacent market overbought but looking comfortable falling back in the

seasonal tendencies for strength we'll see if any follow through. >> the market taking a stride no more rate hikes even in the i hadal of the day a little bit of a threat. >> when jay powell said let's leahy how low unemployment can go. >> no more rate cuts thankfully out of time that does it for "closing bell." >> and "fast money" begins right now. live from the nasdaq market site over looking new york city's times square. this is "fast money. i'm melissa leap our traders on the desk with pete najarian steve grasso chyron finerman and guy adami. tonight on fast. nike doubles down on direct to consumer how it can shake up the retail astray. cashing in on fintech. pete makes a fast pitch for american desk. will the desk buy? check out the mystery transport stock posting the worst day in more than a month, what it says about the healthy of industry. we start off with a touch of magic. shares of disney soaring more than 7% toda