okay, so chobani, the famous yogurt company want to create something called oat milk, which is apparently water and oats milked doesn't sound very milky, but apparently it's a thing. >> and they want to make yogurt out of that oat milk we do this, because oats don't at a time. thanks for watching "power lunch" >> "closing bell" starts right now. >> welcome to the "closing bell," everyone. i'm wilfred frost. here at the snap post, it's up 150% year-to-date. coming up, we've got exclusive comments from the ceo and founder, evan spiegel. the broader markets are higher, only slightly, 30 points or so on the dow, but anything positive is another record all-time closing high with 59 points left in the session >> and i'm morgan brennan in for sara eisen let's look at what's driving the action today the mood in beijing about a possible trade deal with the u.s. has turned pessimistic. a source tells cnbc that trade uncertainty weighing on oil prices and bond yields today and new data showed home builder

confidence ticking lower in november though still largely positive. joining us for the hour is mark tepper from strategic wealth partners mark, welcome. >> thanks for having me. >> even as i just went through those different points that are driving the action today, we've got records again for the dow and the s&p, albeit just barely. >> right, yes. i mean, all investors are pretty much still risk-on and what's most surprising to me is you have this news coming out of china where china is potentiallily bay lbalking at ae deal, but we're at a new all-time high. the market has shifted from one of economic deflation to policy reflation and that's typically good for stocks, right a low inflation, slower growth economy is good for stocks over the next six to nine months, now would not be a good time to be underweight equities. you want to be pathetics right now. >> is the trade deal priced into this market? >> i think completely, almost fully priced in right now. i think we've seen quite the

run-up over the course of the last couple of months. i would think if you do not get a trade deal, the market is going to drop at least 10% >> lots to talk about with mark over the next hour but let's focus in on the big stories we're watching today eunice yuan is covering the new china trade details from beijing. mike santoli has the market dashboard, and julia boorstin has some of the highlights from his interview with snap ceo earlier today. eunice, let's start with you >> reporter: thanks so much, wilf sentiment appears to have turned pessimistic in beijing that a deal can be reached at least this year. a government source familiar with the trade talks told me that people were troubled after president trump said about a week ago that there was november agreement on facing ophasing ou tariffs. that was a very important point for beijing. he said that the china side felt that there was an agreement, at least in principle now, people here are also unclear of president trump's standing, because of the possible impeachment, as well as an election just a year away

he said that the strategy now is to continue to negotiate, that china, in theory, does want to have some sort of trade deal, fit worif it works for them, but the focus needs to be more on us propping up the domestic economy. wilf >> eunice, does china need to see the tariffs roll back before they sign any piece of paper, whether it's just phase i or more >> reporter: yes that, i've heard now from a couple of different people, that the tariffs need to be rolled back or at least that there has to be some movement on the tariffs, because of the way it was explained to me that from the chinese perspective, this trade war began with tariffs and needs to end with a rollback of tariffs. >> eunice, just one quick pivoting question, is president xi jinping under pressure because of what's going on in hong kong? clearly we see a lot of escalating coverage of that over here, but is his own power position in beijing somewhat insulated? or is he under pressure because

of it? >> reporter: well, i think that he's under pressure, maybe from the international community, because there have been so many in the u.s. and the uk who have been outspoken, but in terms of whether or not he is going to give into that pressure, that looks very unlikely, because beijing feels strongly that hong kong is a part of china, and that no one outside of hong kong or china should be from, from china's perspective, meddling in their internal affairs >> eunice, thanks so much. great to see you, live 4:00 a.m., it is in beijing thanks for joining us. >> working around the clock. let's turn it over to mike santoli for today's market dashboard. >> on the dashboard first today, untrodden ground that's where the market continues to walk right now. we'll try to suggest how long that can last in record territory. and then undisrupted champions this is a handful of elite consumer stocks that the market has really embraced right now. unafraid for now, investor

sentiment, a lot less scared than it was, and then underestimated no more that's been the economic furnumr are no longer being underestimated by economists untrodden ground take a look at a one-year chart of the s&p 500 we're just before we kind of fell off that cliff last december it gives you a relatively clean before and after of this trend i'm going to attempt to draw a trend line here. that's the upper trend line right there. and the lower one would be something like this, okay? so that's kind of the channel we've been traveling in right now. if you look at the upper end of this lane, this is where you've seen a couple of times, where you've had major pullbacks and you've kind of bump eed up agais that this is something that's evolving all the time. these lines didn't exist back here you had to connect the highs but what it does show, there's a little bit of a margin up there for the s&p to go a bit higher from here before it tests this kind of upper end of that range. you see some incredibly orderly,

tight uptrend here in this last little bit now look at the valuation of the market it has really been pushed higher we've had flat earnings this year this is the forward price earnings multiple of the s&p 500. what i want to point out is this bulge right here in 2017 that was essentially the market just front running the huge tax cut windfall that profits were going to see if you want to take a like on like, you're pretty much at the highs on this cycle. we'll see if this ends up being a restraint. of course, historically, we have been more expensive near this. so this is just for the current cycle, guys. >> your theme is not unknown >> it was that -- it was that transparent, huh >> i didn't think i was fooling anybody, especially you, morgan. >> oh, i know, morgan. i'm catching on here mike santoli, thank you. mark, your thoughts on the s&p and market valuation right now >> there's no doubt that we're in a pretty strong bull market so we're seeing a lot of support

right now in the 3025 range. so anything pullbacks. and i do think that consolidation is possible, because we're short-term overbought right now so it would make sense if we continue to see some issues with trade, markets could pull back like, pullbacks are buying opportunities. anything around that 3025 range, you want to be getting in. >> meantime, morgan stanley out with a note on their outlook for 2020, predicting u.s. equities and corporate bonds will underperform their global peers and forecasting a weakening dollar for more, let's bring in adam parker, founder and ceo at triverate capital management thanks for joining us. >> thanks for having me. >> where do you stand on the outlook of the moment? global growth, you feel, has kind of bottomed now >> i don't think you can call a market that easily you need corporate excess, hubris too much inventorying, i don't see the corporate behavior is that risk.

i don't think you should by that negative corporate earnings, the sell side has 99% for next year let's say it's 5 the market, is about 19 1/2 times next year's numbers. that looks pretty reasonable in terms of bond at 18 and everywhere else looking unattractive fortunately, i don't make big market calls i think there's lots of opportunities to pick stocks underneath i don't see why anyone should be wholesale negative right now >> in terms of the data, there's a lot of talk about this idea that slowing economic growth, that we may be seeing a bottom in that process. do you agree with that >> good news is good and bad news, we've got this backstop. i think it's super hard to call those short-term consolidations consistently so i would want to tell people that, you know, u.s. equities look like a good place to invest your money >> better than overseas equities >> if you care about liquidity, yes. 77% of all stocks, and u.s.

equities at triverate, but it's really hard to generate excess funds outside the u.s. in terms of liquidity >> take a listen to eunice yoon reporting the sentiment on the ground in china and certainly the role that tariffs are playing, at least from that side in getting to even just a phase i deal is the risk bigger here, perhaps, than investors are relea realizing for this to not happen >> i think long-term, it's risky. in the near-term, the way i look at the world, it's asymmetric to the positive if they say it's delayed or there are still issues, the market goes down a little bit. as long as they dream it's going to get solved at some point, it will work. if you solve it with a true deal, the market will go higher. i think it's asymmetric positive, but i don't think anybody believes it's going to get nailed down this year. what is equity investing i buy my little dream today and sell it to someone with the dream later. is the dream bigger if they sol it yes, it is >> you've said any market

pullback would be a buying opportunity. wald you be buying >> the sectors we like a lot right now are health care. health care just broke out of a two-year trading range probably a lot of that has to do with elizabeth warren slipping in the polls a lot of these health care stocks reacted positively. we like health care. we like certain pockets of tech, specifically software. and we like consumer stocks. the consumer stocks that we like are typically those consumer stocks that revolve around a cost conscious consumer, which would be like your offprice and your discount retailers. >> adam, what stand out for you now as one of those attractive u.s. equities that you said there is opportunity >> i think people are trying to make some sort of value growth call i don't really believe in that there's parts of the market that i'm long, expensive. parts that i'm short cheap it all depends on your investment process to me, the market looks like it's going to grow, earnings are going to grow. the multiples will expand. there's opportunities all over the board. whether it's in internet or financials or energy i'm trying to spread returns to make money

and to me there's tons of opportunity. look at the number of stocks that are beating or lagging the index by 20% or more the opportunity is quite good. we build models. we use these macro information to continue to help. and we use fundamental filters to generate return there's lots of ways to do it. triv triverate means three variables. i like the opportunity set here. >> adam parker, thank you. >> good to see you guys. >> s.n.a.p. has been one of the surprise winners in the market this year. it's up more than 150% in 2019 and it's higher again today. julia boorstin sat down exclusively with ceo evan spiegel and joins us with the highlights >> reporter: morgan, snap has accelerated its user growth and its revenue faster than analysts expected, and that's despite the fact that facebook has taken some of its most popular features, like augmented reality lenses, and featured them in its own apps i asked evan spiegel about this. he said facebook's moves are

actually inspiring for snap's designers. and here's what he said when i asked him whether he thought facebook's behavior was anti-competitive >> i think there are some things that they've done in the past, you know, that could be perceived to be anti-competitive things like limit iing the reac of other services on their platform, preventing people from using a snap code in their profile. and services that have reached as broad as facebook are held to a different standard, obviously. so i think we'll soofrt of see what happens over time >> i also asked him about privacy regulation he said the key thing is making sure that privacy regulation doesn't favor the big companies that can afford the cost of compliance and disadvantage start-ups who don't have those same resources he said that gdpr does seem to be working in europe and that can be used as a model and he said, though, that fundamentally snap is not as

exposed to privacy regulation as facebook is. back over to you >> julia, clearly the stock's performing very well today, off the back of the interview. what aspects do you think were price moving >> well, i think it was really interesting to hear from evan spiegel how they're focused on augmented reality is going to really pay off in the future he talked about how ar could be you'd not just for lenses on photos, but also for maps to create a really custom map experience and you know, with a big business around sort of local advertising, you can see how that could be sort of the next generation of where classified ads go, creating a custom app with ads interspersed there. and it really sounds like in many ways, snap is diversifying. it used to be just about the chatting with your friends and then it became about, you know, discover and the professional content that they're using in discover and now they're thinking more broadly. not just about spectacles and augmented realities, but also things about games as well as maps >> julia, thanks so much

julia boorstin for us. up next, elon musk congratulating ford on its new electric mustang tweeting, excited to see this announcement from ford as it encourages other carmakers to go electric too we'll take a look at ford's new mac-e. and discuss what it means for the tesla and other electric competitors. plus, we're launching a new series on "closing bell" called watch this space, it's focused on the big bets being made in the space industry and today we're kicking it off with venture capitals mark baguette that's coming up in just a little bit "closing bell" will be right back ♪

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43 minutes left to go here and the major averages are all slightly higher right now, on track for a record close once again. we could see a record close for the dow, as i just mentioned the number to beat is 28,400 meanwhile, shares of intelsat dipping. pie says public auction will allow the parties, all parties to compete for this spectrum, which is being dedicated to 5g use. the alliance that's involved in this potential sale wanted to do it privately

intellsat is part of that alliance you can see right there, shares are down 44% right now before this move and they were halted twice earlier, the stock had lost 50% in the past week. isra we'll have more on this in the next week in a our segment called watch this space. moving on, ford's iconic mustang getting a refresh with the unveiling of the new electric mach-e. phil lebeau joins us now with the details. >> reporter: right now dealers from around the country are getting briefed on details from the mustang mach-e a couple of numbers stand out with this vehicle. the range when fully charged up to 300 miles the estimated starting price when it comes in next year, it's going to be around $44,000 as for putting the mustang name on an electric suv, ford's chairman says this is the right move for ford right now. >> this is a very strong signal

of where ford is headed. that's why i felt it was important, ultimately, to lead with our strongest name. and we're going to follow it up with an f-150 that's electric, and it also galvanizes our team. if they know they're working on an electric mustang, they better not screw it up. they better get it right >> well, we'll find out when they get it right when they start deliveries of this vehicle late next year this is what it's all about. sales of electric vehicles in the u.s. this year, dominated by tesla, which basically sells about 80% of the vehicles. and you see gm, nissan, and volkswagen, they pretty much have the remainder of the sales when it comes to electric vehicles don't forget, as you take a look at shares of ford, this vehicle, deliveries will start late next year why is that important, guess what other electric vehicle is expected to hit the market late next year? it's the model "y," an electric crossover from tesla, as we take a look at shares of tesla, also remember that elon musk will be showing the first electric pickup truck that happens out here in l.a. on thursday night

guys, back to you. >> phil, i would love to focus on the fact that idris elba was the person behind the launch, but i won't. and instead -- >> he once worked at the ford plant in london. >> is that the reason? i didn't even see the reason why. just saw you tweeting about it yesterday. >> yes >> that is legit >> there you go. >> but phil, the thing -- i'm not even really that surprised that they're using the mustang brand for a new electric car one can understand the way that evolves, but it's odd to use the mustang brand for an suv or what's supposedly an suv is that a risk that that doesn't cross over -- literally, cross over moving forward? or does it dilute the value of the mustang brand itself >> reporter: sure. go on social media today there's no shortage of purists who are saying, this is not a pony car, this is not a muscle car, it can't be a mustang ford will take that hit, whatever hit you want to consider on social media in exchange for the number of people who say, mustang,

electric suv, let me cut what this is all about. cuts through the clutter instantaneously. and it's not like they just slapped the pony on a pretty makeshift vehicle. this is vehicle that i think will do well if it's priced accurately in that mid-$40,000 range. >> phil, thank you very much similar to the aston martin trying to launch an suv. we'll see if that works. also, doesn't feel right to me but, phil lebeau, thank you. >> meantime, tesla has pitched its electric pickup to the military, as well. up next, piper jaffrey out with its teen holiday wish list and some of the brands that made the cut might surprise you the analyst behind that note joins us next. >> plus, fedex challenger the publisher of "the new york times" to a debate after a story this week claims that the company cut its tax bill to zero without making good on its investment promises. we'll ask the investor behind that story how he feels about fedex's fiery response servicenow put our workflows in the cloud.

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welcome back to "closing bell." piper jaffrey revealing generation "z's" wish list for the holidays money and clothing came in as the top two wishes, while nike, apple, and louis vuitton came in as their top brand picks let's bring in the lead analyst behind the note, erin murphy erin, thanks for joining us. >> thanks for having me.

>> all right so give us the full results of this survey and what it means as we go into at holiday shopping season >> yeah. so we did this survey with gen "z." the average age was 16 years old. what we asked them is what they want for the holidays. it's a very broad opened question, no aiding involved and what's very interesting is the number one and two responses were pretty unchanged from former surveys teens want money and they also want clothing. but when you dig a little deeper and look at the brands that they're citing, the number one brand that is being cited is apple. air pods were a very popular item on the wish list this year. and number two was nike. nike actually tripled share relative to where it had been last year. rounding out the top three, louis vuitton, which was a big surprise to us, but that came in as the number three preferred gift for the holidays. >> so erin, i was going to bring up the fact that number one on the list was money that's always the case, is it? like 15-year-olds are saying for

christmas, i want money? >> yeah. >> that's always the norm, is it >> you know, it's been either number one or number two if you went back over the last five years of looking at wish lists, they asked for money. i guess they want to spend it on whatever they want it's either been in the top two places it wasn't too big of a surprise. i think it's more interesting when you start looking at the brand details of what brands teens are actually citing. >> mark, typically you see a lot of the retail stocks or consumer discretionary stocks start to rally in november ahead of the holiday season or sell off or at least flat line in december. is that what you would expect this year? and based on some of these results, i mean, are these names you would be considering >> yeah, so the louis vuitton thing, what one baffles me i've got a seventh grade daughter -- kam, i'm sorry if you're watching right now, you're not getting a louis we've got to take that one off the list apple, i believe it. but air pods are -- that's a big thing. everybody wants them right now

lulu, that's one i didn't see on there, i'm very surprised about that one i would expect lululemon to sell a lot of stuff during the holiday season typically what you see during this time of year, you see the beginning of november is kind of rocky with these retail stocks, and right when you get to thanksgiving, they take off until the end of the month first week of december is rough and they zoom into the end of the year that's typically what you see. >> erin, in insights between online and off line and what's influencing these kids to why they want what they want >> yeah, so we asked another question this was a little bit broader looking at the u.s. demographic, holistically we did a pulse survey over the weekend talking to a thousand u.s. consumers what was interesting about the online versus offline dynamic is when we asked them, how much of your christmas or holiday shopping do you intend to do online it was 46% of their overall shopping was intended to be online this holiday. so we think it will be a very strong online, specifically. again, remember that calendar

this year between thanksgiving and christmas, it's six days shorter versus last year there's a much more consolidated period to actually be in stores. so we do think online will still be the winner. >> erin, thanks so much for joining us good to see you. >> thank you >> i'm a little surprised, morgan, that mini brands four cheese didn't make it on to the list >> shucks. >> great surprise. there we go. erin murphy there. we've got 32 minutes left of trade. we're on record close watch again. we should remind mike of that. here are the key things driving the action the mood in beijing about a possible trade deal with the u.s. has turned pessimistic. a source has told cnbc, that trade uncertainty weighing on oil prices and bond yields and fed chair jay powell met at the white house with president trump this morning powell said future decisions will continue to be made on a non-political basis. we are up 26 points on the dow it's time now for a cnbc news update with bill griffeth bill >> hello, morgan, here's what's

happening at this hour secretary of state mike pompeo announced a little while ago that the u.s. is softening its position on an israeli settlements in the west bank the latest in a series of trump administration moves that essentially weakens palestinian claims to statehood. >> after carefully studying all sides of the legal debate, this administration agrees with president reagan the establishment of israeli civilian settlements in the west bank is not, per se, inconsistent with international law. >> the supreme court has denied martin shkreli's request to hear an appeal of his criminal convictions for securities fraud. the rejection means that he will have to serve out the remainder of his 17-year prison term and forfeit more than $6.4 million an alabama quarterback, tua tagovailoa underwent a successful surgery on his dislocated hip today while he is out for the year, he

is expected to make a full recovery and be ready for next year's nfl draft sorry that he won't be around for the rest of the season the tide has been rolling. by the way, wilf, when you have children some day, you will learn, you'll get lots of texts that say, "send money. whether it's christmastime or not. >> for christmas sure, i can get -- trust me, i sent those texts myself, but not for christmas. >> well -- >> -- as a kid otherwise, christmas would joust be like, let's all exchange cash, net out. >> get your venmos out >> let's make use of the free transfer tool and net it off to zero >> there you are >> that would be fun >> bill, happy christmas >> bah humbug. let's get over to mike for his second market dashboard. hi, mike >> hello, wilf we're going to crown some undisrupted champions of the stock market actually, investors have already done this. four stocks are bundling together as a new class of these companies that are, at one

point, were considered to be vulnerable to some kind of disruption to their core business but now the market has seen their strategy pivot into the digital age and endorse endorsed it with a higher valuation this is disney, nike, walmart and starbucks. all up over last 12 months between 23 and 27%, compared to 14% with the s&p 500 obviously, this is just one stretch of time, but it's interesting that the market has gravitated over here and take a look at some of the key points i would guess that we need to highlight her. one is that if you looked at disney and walmart last week, it's very clear that the market has said, they've figured it out. disney with disney plus. the huge response we've got to that and walmart's quurarterly resul were very consistent with this idea they've reinvented their business now, they've had this premium valuation. these stocks are 40% premiums in terms of forward multiples they've already been given a lot of credit in terms of having sorted all of this out nike and starbucks, slightly

different. but i think that their direct-to-consumer digital and mobile strategies are very much key to the premium that they had. so the question now is does the market have this right this is a branch of the buy quality, buy traditional growth stocks for safety and dividends and all the rest of it it also seems as if now they've been evaluated to this anointed status as these companies that have disrupted themselves and can for a very long period of time succeed in that we'll have to see. earnings growth for a lot of these companies should not be that exciting for the next year or two >> thank you >> mark, do these sort of tried and true consumer names warrant a greater valuation based on their own disruption of themselves >> i think they do we own disney and walmart. obviously, disney, you know, the disney plus response was great what is it, 10 million on day one, maybe another couple million of that. so i think disney is traditi transitioning their business model, so they deserve that premium valuation.

and you saw it, as soon as they announced disney plus, the valuation went from 16 to 24 overnight. walmart's another one where as the economy slows, more and more consumers trade down they're doing everything they can to drive volume, because it's such a low margin business from curbside to delivery to pickup those are the two i like the most >> walmart's up a percent or so today. >> after the break, we'll dive into a new report detailing how americans feel about banking with big tech on the heels of google's foray into checking accounts >> and as we head to break, here is a check on bonds. yields slipping to start the week on the back of uncertainties involving china trade. the ten-year yield sitting just above 1.8% closing bell will be right back.

welcome back to "closing bell." would you bank with big tech according to a new report, more americans are willing to give it a try. cnbc's kate rooney has that story from san francisco kate >> hey, morgan despite the data and privacy issues surrounding big tech

lately, people are open to banking with them. according to a new report out from bane today, 62% of the u.s. respondentents said they would buy a financial product from an established tech company the average was even higher for younger people, roughly 75% of those 18 to 34 said they would be willing to bank with a tech giant. not the case for baby boomers, though only 32% of those 65 or older said they would choose silicon valley over wall street. the study highlights google, apple, and facebook's potential reach as they get into consumer finance. i spoke to the author of this report, who said consumers are looking for digital first options, regardless of whether they come from a bank or from a tech giant he's also predicting more partnerships like citigroup and google and goldman sachs and apple going forward. >> kate, i don't want to overcomplicate things, as the banking reporter, forgive me for doing so >> yes, wilf, this is your turf,

absolutely >> in the way we expressed the question, a difference between, would you do it if it was not fdic insured, and the deposits weren't protected by the government, et cetera, et cetera i'm sure we didn't, is my point. >> the tech company in this instance is a consumer-facing name, but most people might not think, even if you're banking with google, you're actually banking with citigroup you always have that fdic insurance. so there's definitely some interesting things in the background, but the author of this report mentioned the bank partnerships and said that these guys, everyone has got to sort of scramble to find a dance partner, as he said. so those that don't have a big tech brand going forward might struggle, especially if they don't have a good digital strategy >> kate rooney, thank you. and wilf, just to bring this full circle for you, going back to our previous discussion about gen zers wanting catch during the holidays, tech companies are looking to capitalize on that. >> and christmas will be ruined

forever more if we all just give each other cash. kate rooney, thank you so much we're on the pace for a record close to the dow not quite for the s&p. just for the nasdaq. up next, we've got your last chance trade >> and later, shares of biotech karuna therapeutics are up more than 400% in today's trade alone. we'll tell you why that's coming up asoned traveler. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

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welcome back 18 minutes left of the session mark, what are you going for item last chance trade time. >> we're going with blackstone blackstone is the largest private asset manager in the world. when you look at stock valuations and bond yields right now, it really makes sense to consider alternatives in your portfolio. so individual investors over the course of the last several years have begun to throw away their old 60/40 strategy of 60% stocks, 40% bonds in favor of a 50/30/20 strategy. and when you look at endowments, so institutions, from 2002 to 2018, equity exposure has gone from 50% all the way down to 36%. fixed income exposure has gone from 23 down to 8% alternatives have gone from 24% all the way up to 53%. so money continues to flow into

these alternatives there's fee compression across the entire asset management industry but it's not hitting alt managers and this thing is paying a 3.6% dividend >> so the pushback, i guess, would be, could all of that now change to affect this industry whether it's the fees come down. the fact the stock price has already had a fantastic run in the last 6 to 12 months. the fact that private valuations to which is already geared high. >> there could be some sort of mean version, but i expect money to continue to flow into these asset classes. you have to look at the cost of capital, and where's the best place for you to allocate it right now? is it in stocks? is it in bonds that are paying a 1.8% yield so i still think there's more value in these private asset managers >> one expert view on blackstone today, mark tepper evskr r one a weektoday from

ste machwartzman >> meantime, it's 17 minutes to go to the "closing bell. up next, we'll bring you uninterrupted coverage of the final minutes of trade and the market zone is next. we'll be right back. whether you're out here on lte.

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♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg. with 13 minutes left in the trading day, both the dow -- well, the dow is higher by 12 points and the s&p is down, just fractionally, down by a point right now. we are on record close watch we are in the "closing bell" market zone. commercial-free coverage of all

the action going into the close. >> cnbc senior markets commentator mike santoli is here and we've got mark tepper from strategic wealth partners as well and as morgan just mentioned, we are on track just for record closes on the dow and the nasdaq let's kick things off with t-mobile julia boorstin has a story for us julia? >> well, wilf, t-mobile shares now back in the green after dropping this morning on news that ceo john legere will step down at the end of april and will be replaced by president and ceo, mike seifert. this comes as t-mobile battles to close its $26 million merger with sprint, which is expected to be completed next year. legere denied reports that he was having discussions to replace weworks adam newman. he says this transition has been under development for a long time in a tweet he sent today. guys, back over to you >> julia, thank you. on top of that, we had peter adderton, the founder of boost mobile come on "squawk alley" and make a pitch, make a bid for

the divestitures of boost that are supposed to go to disturb right now. it just seems like in general, when state regulators still looking at this merger, this is not a done deal. and there's a lot that could happen between here and next year >> it's true, although whether it happens or not, i think the companies and the industry going to a different phase, it's not the pure marketing driven story. it's obviously a lot of integration and getting over legal hurdles. so i don't think the market is pleased to see ledgere go, but it's not that surprising >> when this was potential, he was leaving to go to wework, the stocks suffered. then the stock recovered and it's not now falling again, although it opened lower on the back of the news that he's leaving. so the market is obviously taking it in stride more than a couple of weeks ago. >> perhaps if the market is absorbing this notion that it was a planned, you know, secession, episode, he's jumping

in an abrupt way to go to somebody else. >> all right hong kong tensions heating up over the weekend and that's having an impact on macau casinos. let's get to contessa brewer for more on this >> a note from jeffreyies estimates that november gaming revenues are declining even more than anticipated as much as 13% lower than november last year and the analysts say it's in part that perspective clients main gateway to macau. wynn, las vegas sands, and mgm largely have downplayed the impact of these protest, but vip daily volume is off more than 30%. and growth is slowing in the mass gaming sector, as well. shares of wynn right now are actually up 2% ne millco is up 1.5%. it's las vegas sapds that is off by a percent today >> and contessa, for any non-chinese visitors to macau flying in, you have to fly to hong kong first, right >> that's right.

and the airport has remained open but listen, roughly about 85% of the visitors to macau come from mainland china and from hong kong so that's really where their traffic is coming from and if you've got some trepidation on that front, it's likely always going to affect macau. >> contessa, thank you very much for that nine minutes left. let's move on to snap. ceo evan spiegel sat down with cnbc's julia boorstin earlier today and weighed in on the rapidly growing popularity of social media site, tiktok. >> snap and tiktok are so different, and we actually consider them partners so, you know, they're an advertising partner, they're a snap kit partner, meaning that tiktok content gets shared through snapchat but the services are very different. it seems like tiktok is more of a popularity test. >> mike, i thought it was really fascinating, not seeing them as a director competitor and being much more competitor and optimistic about the other main competitor, facebook and instagram stories. and clearly the stock price

today is rewarding those comments in general. >> i guess, you know, years of coexisting with those things probably has given them a little bit of security about their -- snap's place in this market. i think he's probably correct, by the way, about tiktok in terms of how it's used and how it's differs but eyeball hours are eyeball hours. if you have a lot of new fads coming along that are stealing engagement away, i guess short-term, it takes a hit from snap >> mark, you're invested in facebook, not snap do you feel like you missed out. >> i wish i would have rode that out for the 150% gain so far this year. unfortunately, we left it behind the issue with snap is they're doing really well in that 18 to 34-year-old range, but struggling with the 34 plus crowd, the crowd with the deeper pockets. i think their deepest competitor would be facebook or more specifically, instagram. so we would much rather be there. >> 7 1/2 minutes left in the session. s&p just lower, nasdaq just higher let's move on to home builder sentiment, which edged lower for the month of november. cnbc's diana olick has a

summary. hi, diana. >> hi, wilf. with the big builder stocks, check it off up over 50% year-to-date thanks to lower mortgage rates. and despite that unexpected drop in builder sentiment in november the nahb's confidence index dropped one point to 70, the first fall since last june, but well above a year ago. and anything above 50 is positive anyway. current sales conditions fell two points to 76, buyer traffic, off one point to 53, and sales kpngs expectations rose one point to 77 sentiment and stocks are high because mortgage rates are low back to you guys >> diana, thanks so much mike, we've discussed this quite a few times, but even though the curve has steepened a little bit, that has helped things like the banks, it hasn't steepened so much to help the home builders >> in fact, the ten year is pretty much what it's geared off of, and that has not got escape velocity, down a fair bit in the last couple of weeks i think that's supportive, just a general notion that one of the stronger parts of the landscape is domestic consumer and all the

rest of it it makes sense that they're trading this way i don't know that it's off to the races for the home building sector it's pretty well discovered right now that it's a strong market of the market >> your thoughts on home builders >> i like dr horton here so when i look at affordable home inventories, existing homes that are out there on the market, there's not a lot of inventory when you look in that 250 to $500,000 price range. that's what dr horton specializes in, is building those affordable homes >> meanwhile, levi strauss stock is down about 1% today the stock has underperformed since its ipo, but our own jim cramer sat down with levi's ceo and talked about what differentiates levi from other retailers. >> consumers want to come into the store and they want an experience if they're just going to come in and transact, they can do that online but they want to come into a store and have an experience, something that's unique, and something that's instagramable

and we have shops in most of our stores where we do personalization and customization. >> and don't miss the full interview with levi's ceo chip berg on "mad money" tonight at 6:00 p.m mike, i mean, we've seen so many of the company's that went public this year sell off since their debuts, including levi's does it belong in this batch of newly public -- >> yeah, i don't think it quite fits with the narrative of companies that stay private too long, they took on too much capital, that were less software oriented than we thought, like uber, for example. so not quite, although i do think it shows that the appetite for a brand-new fresh name, even with an old brand attached to it, is not really that strong, at least right now >> a new stock, but an old business is something that the market didn't know what to do with >> so the one thing that he mentioned was that consumers want an experience and i believe that but if consumers want an experience, then nordstrom would

be performing better the stock's down like 20% this year, and when i think of providing an experience to the customer, i think nordstrom does it best, right so if they're not successful at it, i don't know how levi's is going to do much better. >> interesting to hear you say that i'm more of a 40 karats, frozen yogurt kind of girl. if i can eat and shop and feel really good about myself shares of karuna therapeutics are up more than 400% today in today's session. >> potentially game-changing therapy with people like schizophrenia. that's how citi put it, noting the company's experimental drug provided strong efficacy in a mid-stage clinical trial while sparing patients from safety issues the more than quin up thing in karuna's stock price gives the company a market value of more than $2 billion. the drug still has a ways to go before it could reach the market, though karuna says it ames to start a larger trial of the drug by the

end of next year guys >> so, meg, clearly, 400% rise, $2 billion market cap, how big is the market for this type of drug >> analysts are putting multi-billion dollar potential market previews on this drug, if it's approved. it has to get through phase iii, of course. but it is a large market millions of folks have schizophrenia, and often they are not well served by what is already object market. they have bad side effects so more drugs are needed it could be a multi-billion dollar drug, but phase iii is traditionally very hard for drugs in this category the placebo effect can be very high, so it's hard to see benefit on top of that it's going to be a tough road ahead, but investors saying, this is way better than they expected today for this drug >> meg, thank you so much for that moving on, we've got two and a half minutes left to trade the dow just positive. mike's been looking at the market internals >> kind of mixed a flattish index performance and more stocks are down than up

i would also take a look at the new highs. and lows on the nasdaq here you have over a hundred stocks with new highs. it's something to be focused on. and momentum versus value. a lot of noise about value coming back, momentum reasserted itself outperforming value >> we have less than two minutes to go. let's send it over to rick santelli for a look on bonds >> if you take a look at an intraday chart on 30s. the rest of the curve, down two basis points in very tight ranges pound versus dollar, all the brexit polls look as though maybe a plan is actually going to be passable and we'll see a real brexit after the december vote it made the pount versus the

dollar intraday trade up to -- well, on this long-term chart, you see the last high there, 1985, today's was one tick above that bertha, boy, did it hold the 85 lows and make a comeback >> yeah, it did. we are going to be closing here, it looks like, at a fresh all-time high. among the stocks making new highs today, nvidia. that's a big bounceback after some disappointing guidance from the company last week. new 52-week high, still 25% below its 2018 all-time high amazon, take a look at the difference apple and microsoft at new highs today. new historic highs amazon still about 14.5% below its all-time high. and below the radar, take a look at peloton today it actually finally climbed back above its ipo price, now at 30 bob, over to you >> flattish day, bertha, keep an eye on the big picture when you have the equal weight

s&p 500 and the market cap weight s&p 500 hit new highs at the same time, we hit value and growth, hit new highs at the same time. and you've got cyclical and defensive names like tech and consumer staples hitting new highs. broad rally in the markets, even though you have a flattish day with the s&p 500, essentially ending the day up one point. the dow up 28. welcome to the "closing bell," everyone. i'm wilfred frost. >> and i'm morgan brennan in for sara eisen along with mike santoli. >> let's check in with where we finished as you can see, record all-time closes for the three major averages, albeit only fractional gains today. 29points, 0.1% for the dow s&p just getting positive in the final minutes of trade to join in as well >> and joining us to talk about the market day, mark tepper,

founder and ceo of strategic wealth partners, is still here with us, along with mark lusheeny with anney, montgomery, scott. triple ms on set here today. mike santoli, i'll start with you. >> and an upside down "m". >> so i guess it's quadruple anyway mike santoli, fresh, record highs for all the major averages, albeit, just barely. >> just slight it's a little bit of an upward drift or a trudge. it's not as if people who came into today and said the market's hit a record high and i'm either really excited by that or really spooked by that. that's probably a positive also, the market declined the opportunity to sell off on what seemed like some adverse trade talks news this morning. i think that shows the stakes are getting lowered. as long as the market remains fixated on, if we don't reescalate the trade war, the market's probably okay i'm still watching for sentiment to get a little too topee. maybe we're getting there, but not likely >> are we more likely to go up

3% or down 3%? >> i think vuyou would have to give the advantage to up but i don't think either one should be surprising if you're down 3%, you're still in an uptrend, by that magnitude of a pull back that's probably your better takeaway >> mark, is this just all about trade now. is that what's dictating market moves? >> i would say "yes," but i think the market really made a statement today in not selling off, given the fact that there was kind of a pessimistic outlook whether or not this phase i deal was going to happen but i do think phase i is pretty much completely priced in. i do think you have to see a phase i deal i don't know that china right now has the incentive to get it done, like they did a couple of weeks ago. i think elizabeth warren slipping in the polls is causing them to retheir strategy but i do think trade is front sk and center >> mark, what do you think about this market right now and how dominant the trade phase i possibilities are to the moves

we've seen >> well, morgan, i think it's undeniable that it is dominant, certainly, and should we see that perhaps, which is a movie we've seen before play out, which is, there's some relapse in the talks, relative to actually getting this phase i down payment on the negotiations, that would certainly clip the market pretty well but at the same time, obviously, we have the seasonal factor here, where the set-up is for a santa claus rally. there's the fomo principle that's alive and well. and we know a lot of investors are either underinvested or have been on the wrong side of the trade so far this year so there's a bit of a catch-up phase to be had. in addition to that, i think importantly, including china but beyond as well is just indications that growth abroad is beginning to stabilize. they're still tentative, they're not uniform, but i think collectively, we're starting to see enough positive signs that improvement is at hand and if that's the case, that will go a long way to soothing fears that the backdrop for corporate earnings, particularly for u.s. multi-nationals is

going to weaken. instead, perhaps it bolsters the case between 2020 earnings expectations which are still expected to be up year over year can be realized. >> fed chair jerome powell met earlier today with president trump and treasury secretary steven mnuchin let's bring in steve liesman steve, i guess unscheduled, this meeting. but not wildly unexpected for this kind of thing to happen >> no, they talk from time to time, presidents and fed chairs talk from time to time this is their second meeting this year. they've had three other phone calls, according to records from the federal reserve. so i think the context, though, wilf is the -- are the tweets from the president that are sharply critical, that makes a meeting kind of curious and makes a lot of people want to have been a fly on the wall to have listened to how it went down >> mike santoli, in terms of a meeting between the two, i mean, we know the fed chair has said that, you know, things are on positive, data dependent right

now. what do you think that conversation potentially looked like >> obviously, from his side, i think we know what it looked like from powell's side, we know it was a rigorous theiteration tha the way we see the world when the president followed up the news that it was a cordial meeting and didn't lash out with any kind of hostile comments about the fed chair, that might have dial doed down the temperar a little bit in terms of people's response to it. but i do think that both sides have their positions sta s stakt and we know what they are. >> presumably, even if the president is in general tweets to suggest or in speeches suggest he still wants further cuts or flirts with the idea o negative rates, he must be pretty happy about the pivot that he's seen and content with the data of late >> it's hard to know, wilf i would not impart those emotions to the president, given what he said publicly or said in the tweets, i think it's fair to

say that republicans in congress judged by the testimony last week certainly seem to be -- have not a lot of objection with where the fed is right now and i think you point out that three different rate cuts, the fed has stopped reducing its balance sheet. in fact, it's begun to grow its balance sheet. so policy is relatively stimulus and certainly, objectively, more stimulus than it was planned to be this time last year so i think the thing is, wilf, is that the president among other things is a real estate person and i've never, i don't think, met a real estate person who thinks interest rates are low enough >> mark, in terms of how you're kind of deciding which stocks to go with, is the fed much less of an issue than it was, say, six months ago >> well, as i said the last time i was on about a week and a half ago, right, three to four cuts, that's considered a midcycle adjustment that's very bullish for stocks once you get the five cuts, it

becomes a problem. that's kind of a recessionary-like scenario i think it's very unlikely the fed cuts again there's really no reason for the fed to cut right now they've already fixed the yield curve. however, with inflation as low as it is, if there are problems, they do have some wiggle room here i think right now, i think the markets are fine, the economy looks fine there's no reason to cut again >> i think if we get the gdp tracking data now from the atlanta and new york feds are showing sub-1% if that's what it is, it will be interesting to hear the commentary around that, as to whether the fed can actually declare victory and say we're on hold indefinitely. >> steve liesman, thank you. we'll get back over to bob pisani for a look at today's biggest movers bob? >> the market wants to go up, even with dubious trade talk news today, the market generally, the low prints right near the open, close near the highs for the day, that's been a trade all month long the stunning diversity of the rally is what really sticks out

to me. we've been talking about health care stocks here you look at your humanas and wellcares hitting new highs. the medicare for all threat is greatly diminished in the last month. these stocks are all reflecting that but elsewhere, just the stunning breadth of the rally home depot and the home improvement space. this is a massive name that's up 40% so far this year we've been talking about walt disney for a long time it's the same story. it's up almost 40% this year finally, the banks had a terrible time last year. jpmorgan, also another winner consistently up about 35% this year guys, back to you. >> bob, thanks so much for that. let's get to market for a final thought on the markets mark, what's your take from some of those comments that bob just mentioned to what can continue higher of those sort of stocks >> well, i think as a group one thing that is common amongst them is they're iconic brands in their respective space and investors have been crowding

into the things that have been working and they've been work vrg wel ing very well. i also think it's interesting that some of those are more cyclical in nature than the defensives that have been leading the market up until the month of october so i think that is encouraging and it speaks to the rotation that we've seen or rather alarmingly since the beginning of october, into this value-oriented subspace, that includes things like industrials and financials and i think that's a good sign we have been teased like this before, only to see this be one big head fake. but i think given the set-up around not only the firmness of domestic conditions, but finally now, for the first time in about a year, firming global economic conditions i think there's a backdrop for these cyclicals in their rally to be sustained into 2020. >> we have a news alert. just going to hit the pause button on that discussion. it's on the movie industry julia boorstin has it from us. julia?

>> a big ruling from the justice department that could have a huge impact on movies' theatrical distribution and could spark consolidation. the department of justice's anti-trust division saying that it ames to terminate the settlements which prevented the movie studios from owning movie theaters these are known as the paramount decent decrees macon delrahmi saying the decrees are no longer needed amc, imax, and sin mark moving higher on this news, which could move to consolidations or the sale of these companies to media companies. that could lead to the closing of the three-month window between theatrical and home entertainment releases certainly a fascinating area to watch. morgan, back over to you >> julia, could hathis have an effect on everything we've seen

as well? >> it's really interesting that we've seen netflix as the prime example, do more limited theatrical release, where it doesn't have access to all of the movie theater chains, because they don't want to put movies on their screens that are going to be available for streaming, either right away or a couple months later. what i think this will mean is netflix will continue to try to use its movies to get attention, for the streaming product and also attention for its filmmakers, but what we could see is other studios do something similar to what netflix is doing if there's a movie studio who says, this film is not going to have a three-month run, it might do really well for a couple of weeks. let's put it in a theater for two weeks and make it available two weeks later. we could see a real change here if one of the media giants does end up buying one of these theater chains >> julia, thanks so much for that she mentioned tomorrow, the chief will be joining us

thanks to mark tepper and mark leshini joining us today still to come, fedex firing back at "the new york times" after a story claims the shipping giant slashed its tax bill to zero without following through on its promise to spur growth we'll get reaction from the reporter at "the times" that broke that story >> plus, we're launching a new series called watch this space to highlight investing opportunities in the space race. we have a great lineup of guests all week on "closing bell" starting with mark boggette. we're back in 90 seconds ♪

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ah, i'd love to, but people get really emotional when i sing. help from a team that will exceed your expectations. ♪ welcome back fedex at the center of controversy today after a "new york times" story scrutinized the story that ceo fred smith played in lobbying for the 2017 tax cut bill the story claims that despite fedex now having a zero dollar tax bill, the company has not invested in its employees to the extent it has initially promised fred smith calling the report factually incorrect and saying i hereby challenge ag sulzberger to a public debate in washington, d.c. "the new york times," meantime, responding to fred smith's statement, saying that fedex ee's colorful response does not challenge a single element in our story. joining us now is jim tankersley

who works with "the new york times. we should also know that we reached out to fedex who said the ceo, fred smith, is not available for a statement. and you claimed they paid zero tax in 2018, when they in fact, say that they did pay some tax and they notified you of that before the story went to print is that fair >> well, no, what we said is that they owed zero tax in 2018. you can make tax payments in any year for lots of different reasons. we asked fedex to explain to us exactly how much they paid and owed in taxes in 2018 and 2019, in 2017. we gave them a long and detailed list of questions months ago they never responded to any of those detailed questions and we stand by all the facts in our story. >> on the headline, jim, ultimately, is the person that is responsible to answer questions on the benefits and pitfalls of the tax cut be the politicians that enacted it? or business leaders that ultimately have a duty to serve

their shareholders as best they can? >> well, i think it's a wonderful question i think that we have a responsibility to hold both politicians accountable for the promises they make and the supporters of politicians accountable for the promises they make to help sell policy changes. in this particular case, the promise was very clear that a cut in the corporate tax rate would lead to an immediate and sustained boost in boost investment in the united states. we have not seen that. we have not seen anywhere close to that. what we have seen is, essentially, lower, slower growth in investment post tax cuts under president trump, than pretax cuts under president trump. >> jim, fedex is a very specific story. they've had a lot of issues in europe with their tnt acquisition and how that's rolled out, especially on the heels of a cyber attack. they have a lot of exposure in asia, so all of the u.s./china trade back and forth has impacted them a lot, as well when you look through the numbers, how much of this was fedex specific versus some of

the other companies that might be in similar positions. for example, u.p.s.? >> well, sure, another great question fedex is entirely indicative of the investment response that we've seen overall from companies. in fact, there's more than three dozen companies, i believe that zeroed out their tax liability after the cuts per our analysis. but we have not seen any -- we did a regression analysis of size of tax cut versus amount of increase of investment and found no relationship. and if anything, there was a weak relationship in the inverse that companies that got smaller sized tax cuts had slightly more increases in investment. >> i guess, jim, some of the points you make are clearly on the surface seem to suggest your thesis is correct. but companies don't make their capital spending decisions on a year by year or month by month basis. and is it fair to say that the real definitive answer to this answer won't be known for a couple more years? >> oh, absolutely. i think that we keep writing

stories over and over about what these analyses tell us if you had just taken the investment response from the first quarter after the tax bill passed, you would have had a very different story and i would pike like to point , that is something the investment surge did. now we're a couple years into it that story has changed there is a real possibility that economists raise that over time that lower tax cost will encourage more investment. and if that happens, we'll absolutely report that, too. >> jim, were you surprised to see the response from fred smith? >> i think, it's the first time in my career that anyone has ever challenged my boss to a debate over a story i wrote. that was different >> i would love to see it, i'm just not sure the wider public would, but i think it's very "new york times" business section and cnbc specific. i think it would a great debate. i hope you successfully, jim,

trigger it >> i would love to, if nothing else get an interview with any of the fedex executives that we asked for comment on this. because i would love to learn more about how they, you know, see the effects of law on their taxes. >> jim, thanks for joining us. great story. >> thank you up next here on "closing bell," we'll break down the charts to see if investors are chasing record highs for the market are starting to get overconfident. >> plus we are kicking off our week-long special, watch this space. coming up, we will hear from a top venture capitalist in the space investing industry to find out where he sees the biggest oprtits t fal ontierieinhein - [spokesman] if you've tried college but never finished,

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welcome back let's send it over to mike santoli for his third dash board of the day mike >> morgan, investors were pretty frightened back in august and september, and they are definitely unafraid for the moment if you look at ways to track the sentiment, investor positioning, deutsche bank has sort of a composite look at this this shows equity exposure based on fund flows, based on professional investor positioning with regard to futures, and all the rest of it. so obviously, this is going to oscillate up and down, around an average. this is a very important peak. that's that early 2018 peak that was really the closest we've

come to sheer universal exuberance in this whole bull market and right here you see, it's getting up there i wouldn't say it's yet extreme, but we seem to be in some kind of a range where we're capped roughly around this 0.8 level. now, it doesn't mean the market can't trudge higher as things get better, or for that matter, even the fact if this goes down a little bit, it still probably can be okay, because you see we sort of existed there for most of 2017, when the market was strong also. 2014 was an up year, as well but it seems like, i think a lot of folks have already done a little bit of their chasing as this market has taken off. >> is it the direction of travel of this line that makes the most difference as opposed to the absolute level i think the magnitude matters, as well. it builds over time. assist little b it's a little bit of a cumulative measure how far it runs usually tells you how long it's been running that way >> mike, thank you, as always. >> up next, watch this space a top investor in space technology tells us about the latest trends emerging in this fast-growing industry.

>> plus, a new study maybe forcing the medical community to rethink heart health we will discuss the impact that could have on medical device makers later here on "closing bell." cist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. so servicenow put your workflows imm-hm.cloud, huh? your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

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welcome back it's time for a cnbc news update

with bill griffeth hey, bill. >> definitely a music upgrade since i was there, wilf. here's what's happening at this hour an air strike has slammed into a biscuit factory in tripoli, killing at least seven people in what the u.n. envoy there said could be a war crime the air strike also wounded at least 33 workers, who were taken to nearby hospitals for urgent treatment. back here, senate majority leader mitch mcconnell said today the house's impeachment inquiry against president trump is likely to continue until christmas, but he added that he is pretty confident the president will not be removed from office. >> i can't imagine a scenario under which president trump would be removed from office with 67 votes in the senate. so, i don't know how long senators will want to continue the trial, but i'm pretty confident at the end, it will not -- impeachment will nod elite to ouster. >> and finally, happy news taylor swift will perform on the american music awards this

sunday after all, following a public spat with the big machine label group, which owns the master rights to her older material the company reached a licensing agreement with the singer, so she gets to sing on sunday night. and i'm dearly hoping she sings one of her old country hits. the title is, "i'm only me when i'm with you." >> there we go >> one of the big ones >> bill, i want to go back to what you said at the top did you actually get to pick the songs? because wherever i come up with a request, it's always roundly rejected >> clearly, i didn't get to pick the music. i don't know who did, but, yeah. >> anyway. it's always one of the brilliant team bill, thank you. >> have a lovely afternoon >> you, too. surprising results in a new stent study could change the way doctors treat heart disease and impact medical device makers and google is set to launch its digital cloud-based gaming ndut wthtomorrow fi oheer this will be able to compete in that crowded

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bell." investments in the space technology industry skyrocketing this year. the latest data from seraphim space shows that it grew %. i spoke with tony bruno back in september about the vc investment boom in the sector and whether he sees this as a lasting trend. take a listen. >> hini think it's super exciti that vcs are interested in space and putting money into it. many of them are not sophisticated about space or our industry and i believe most of the investment that's gone in will be eventually be destroyed there's way too many start-up companies, especially in the launch world, in small launch in particular, relative to the amount of demand that there will be for going to space. ula is a mature company. our revenues pay all of our bills in returns to our owners and we're able to do everything

you're seeing here within that kind of mature business model that will be really insensitive or unaffected by when the vcs are finally done and move on to the next big thing >> ula is the result of a joint venture between boeing and lockheed martin. it was formed back in 2006 after the last big satellite boom that was expected in the late '90s and never really materialized. and actually led to something of a collapse in the launch market back then. but joining us now for more is mark boggette, ceo of seraphim capital. >> good evening. >> i want to get your response to tony bruno's comments just now and i guess, in terms of context, why perhaps he's wrong given the fact that you are making investments in this space. >> well, indeed, there are now nearly 150 companies that have raised venture capital funding

in the launch segment. and i actually tend to agree with him i think that there are too many companies that have been invested and it's highly likely that the majority of them will fail but i still think that we will be left with three, four, five, six venture-backed launch companies that will go on to succeed. >> now, mark, investing in space, at cnbc.com, i would point viewers towards some of the articles written by my colleague, michael sheets there. the way he breaks this down is there's really four main categories human space flight, national security, satellite communications, and imagery and data analysis. where do you see the greatest opportunity for investment right now? and how would you be going about it >> yeah, we see the opportunity in the imagery and analysis. we believe that -- well, our thesis is that the size of satellites, the cost and weight of them, has fallen to a level where satellites with significant functionality can be

launched for between 100,000 and $1 million per satellite so, the traditional satellite is costing 300, $400, $500 million. the smallest satellites enable you to build a much bigger constellation. and it's the big constellations that we believe where the value is because they can bring data to almost realtime or indeed, realtime and we think it's the realtime nature of this data that's going to create a lot of big, new market opportunities in a very broad range of end verticals, such as the insurance market, the martime market through to the retail construction, oil and gas. and we believe that there are $1 billion opportunities to use this close to realtime data in a broad range of these end markets and that's where the opportunity lies >> mark, we speak a lot on this channel in the last six months or so about the valuations that we saw in the broader venture capital market, the private market, and clearly stories like uber and wework highlighted how some of those have become stretched. what's it like in your subsector

of the vc market in the space sector are all the companies you're investing in still loss making are some of them already profitable did you have a fear that valuations are a little steep? >> yeah, so, the majority of the companies that are in new space are still at the stage that they're unprofitable and the market leaders, the emerging leaders within the market are still growing to that profitable stage valuations are subject to supply and demand, so the sectors where there's a significant amount of interest such as launch, and such as the constellations, the new constellations, these are the areas that can see significant valuation and significant increases in valuation, as they're being chased by investors. we believe that there's a lot of value in the downstream end of the market this is the end of the market where it's the data analytics of this huge amount of unstructured data and the opportunities to use that data in these end verticals that we've talked about.

that side of the market, the valuations are still very attractive likewise, the down link subsection, so this is the market that's taking the data down from space, down to the ground, and doing that reliably, doing it with ever-great volumes, and doing that cyber securely this is a really underinvested market and there's some fantastic valuations in this particular market. so it depends where you're looking within this overall market >> so, mark, we're seeing -- we're starting to see some public market opportunities for investors right now. virgin galactic, perhaps being the most high-profile, having gone public here at the new york stock exchange, as the first commercial human space flight company. but in general, when you look at these new breeds, these new start-ups of space companies, how can investors get involved >> well, like many of the technology sectors, companies are staying private for longer, so we don't see an huge rush of

these new space companies coming to the market anytime soon so really, the way to play this market at the moment, in order to get into the earlier stage venture opportunities that form the majority of the market is through venture funds like ours, is several space-focused venture funds that can provide private investors exposure to this market there's only a limited number of quoted new space companies with virgin galactic being the latest to join the market, with a greater than $1 billion valuation. so some liquidity. most of them are pretty small companies at this stage. >> so, mark, given all of the different companies that your fund has invested in right now, what are you most excited about? are there specific names >> yeah. so, a range of the constellation companies that we've invested in are really exciting at the moment so one of our portfolio companies is a company called spire global this is a company that has miniaturized small sats in order

to collect data about the weather. most of the weather is formed in the oceans and this company has the largest constellation of weather satellites in the world. currently it has more than 100 satellites in orbit. and through those satellites, it collects twice as much data as all of the governments in the world added together and this companies believes that more data will lead to them having more accurate weather forecasts. and we believe that there's a huge value in the accuracy of those weather forecasts. whether there's a $1 billion market, we believe this company has a great opportunity to say a significant portion of that market they're looking to actually ipo next year. they're one of the -- one of the leading companies in this market >> well, mark, thanks so much for joining us much appreciated >> you're very welcome >> we've got a news alert on uber frank collins has the details. frank? >> hey, there, wilf. another top-level uber executive now announcing that he's leaving the rideshare company.

today, chief product officer mana gupta announcing his last day listen on november 13th. he said in part, after a few discussions with dara, referring to the uber ceo, as well as with my family, and now that we've made it through the ipo and an important year for the company, i've made the tough decision to leave uber gupta joined uber from google in 2015 and became the chief product officer just last year and again, he's the latest uber executive to leave the company uber's ceo left the company in june back over to you >> frank collins, thank you. >> thank you up next, retail results on deck home depot, kohl's, and tjx are all reporting earnings tomorrow. the key things to watch, ahead >> and coming up on "fast money," president trump's former national economic adviser gary cohn will join in an exclusive interview about his latest venture, as well as trump, taxes and his thoughts on the 2020 race does your broker offer more than just free trades?

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galla implanting stents or undergoing bypass surgery worked better than lifestyle changes and found they didn't. the patients with chest pain, the more invasive procedures provided more relief boston scientific, med trtronicd abbott labs were closely watching the results many feared that stents led to worse outcomes so the results that they were no better and helped with chest pain were a positive you don't necessarily see that reflected in those stock prices, but many were worrying it could be a lot worse >> people were wondering it could show worse results than neutral. so what's the point? i get your point on the chest pain part of it, but that seems underwhelming? >> well, the quality of life part is important, doctors tell us that if patients havecalled agi could be very helpful.

but they were worried that they might have been worse, because there can be some complications with implanting stents and doing other surgery procedures so they were worried it could turn out worse for that arm. and in fact, it didn't they were about even and guys, it's important to note that for patients who are having chest pains that last for a few minutes, doctors told us, those folks could be having a hard attack and this does not apply to them. these are just folks with stable heart disease. >> important point to make, there. meg terrell. thank you. >> let's send it over to mike santoli. final dashboard of the day >> we're calling this underestimated no more that's the economy this is citigroup economic surprise index something we check in on once in a while. essentially, this is how the economic numbers are coming in relative to consensus economic forecast so obviously, things were not looking great here in august and september. the data was consistently falling short of estimates then there was this big revival. forecast, forecasts get revised

down that's why this goes up and down without necessarily reflecting the absolute strength of the economy. we saw that big uptick and now it's all the way down again. we have a spike on the chart about neutral or actually slightly worse than neutral coming into this week. data coming in, slightly lighter than forecast. here's the thing because this is an oscillator and a dynamic situation, forecasts get revised up and down i'm interested to see in 2016, we keep going back to the example, we had a big recession scare, the market took off and economic surprises came back down but hey, that's around the summer of 2016 we didn't have much of a sell-off and we were off to the races in 2017. doesn't necessarily mean it tells you where the market's going, but no longer do we have people essentially overestima overestimating consistently what the economy will be doing. >> mike, i know we were talking about this before, but the key theme to me that seems to be emerging from all of your different charts is that when you look at them, there is nothing that suggests a repeat of last christmas. >> no, there isn't

i feel like we actually had our little scare, our near-miss on an economic accident in august and september. the markets overaccounted for that now we're coming on the other end of it. and i don't think we're as vulnerable in terms of the market rhythms, either it doesn't tell you much about the next few percent, but it does tell you that i don't think that the fed is working against the market the way it was perceived to be last year, as well >> and the key theme, mike, from the dashboard's subtitles today is, what, that you love the united nations >> the united nations, you could take that away from that, i suppose. or simply that it's a little bit of light, unimaginative word play >> there we go still, i like -- let's go with the u.n. mike, as always -- >> i don't dislike the u.n i don't want to leave that impression >> mike, thank you >> up next, a gaming game charge google out with its new cloud-based video game service, but can it hold up against the likes of microsoft we'll discuss when we return

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google set to launch its cloud base video gaming system tomorrow josh lipton has that story for us >> reporter: google officially flipping the switch tomorrow at noon eastern its new streaming game service the idea here that you're going to pay google $10 a month and you can stream these high quality graphics to your pc, tv and most pixel phones. no need nor a pricey game console. should you sign up our own tech reviewer says not right now. it's fun and works well but lacks a big libor. better wait to see what games launch next year remember there's competition microsoft is already testing its own gaming streaming technology too. >> josh, how much in gaming today does it matter what console you're playing own versus just the bottom line of the game >> reporter: well, i think the problem is here, wolf, that the

problem to gamers and the reason they are excited is the potential of such technology is that you would be able to stream these complex graphics rich aaa games any time, anywhere now that's more limit high desert here with google. you will be able to work in a browser, play it on tv with a streaming device and most pixel phones there are some limitations 22 titles to start there are some notable titles like red redemption ii interesting how it shakes out. promise of this technology has companies beyond google excited. microsoft is pursuing it with project x cloud. we don't have a date, price or launch date but microsoft would be a real rival here microsoft has same technology as google, so it has data centers and the infrastructure to deliver this technology. it also has a long history in gaming

it's got the content been buying game studios has the rights to franchises like halo. be interesting to see how this competition shakes out >> the gaming industry is taking shape and growing so fast right now and so many different angles to it. you touched on this but to dig into it further, how are companies like alphabet and microsoft working with the video game publishers. is this a tail end or head wind for those publishers >> i think you're right. big picture, listen. big tech wants a piece of this market and for a very good reason it's a tremendous opportunity. this is an industry that video game industry will see revenues of $174 billion. different tech companies are getting into it in different ways how this works with publishers that's interesting you look at google -- some publishers made their content available.

like red redemption ii if you're an activision fan or call of duty that continue the tent is not available. for publishers it's interesting on one hand there's excitement about this technology. video game streaming is at any time future? on the other hand, what kind of puts and takes, what kind of sacrifices do you have to make if you team up with google how much do you give up in power of distribution, revenue share. those partnerships will be interesting to watch >> josh lipton, thank you. shares of alphabet finished down 1% but not before hitting an all time high back to special distribution in april of 2014 earlier in the session. up next your wall street look ahead. key things every investor needs to watch as we head into a new trading day when "closing bell" returns. servicenow put our workflows in the cloud.

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welcome back to "closing bell". shares of coty finishing higher. announcing a partnership with ky kylie jenner coty will acquire 51% in kylie

cosmetics. the deal is expected to close in the third quarter of fiscal 2020 and guys, i want to note the jenners, owns, outright owns this company not like other celebrity or fashion or beauty brands where they licensed their name and image. a lot of money coming to the jenner-kardashian family >> as you said, a way few else have done so successfully. looking ahead of a slew retailers set to report tomorrow >> reporter: home depot reports. we'll listen for specifics about impacts of tariffs and lumber price deflation. home builder confidence slipped a point, though remaining in positive territory kohl's also reporting tomorrow we're hoping to hear details about whether it's seeing a boost in foot traffic and sales by accommodating amazon returns

and, of course, the all-important outlook for the holiday shopping season. we'll listen for similar details coming out of tjx. that company's shares are up 32% year-to-date a good run especially compared to macy's which are down more the than 40% guys thanks so much for that. so retail reports to come throughout the rest of the week. mike, as we noted after retail sales on friday earnings going to be enough to move the dow in a serious direction. >> home depot -- of all the bellwethers out there for the domestic economy went into this at a new all time high i think that's a sentiment for housing, more broadly for retail three weeks into their quarter but six weeks into the third quarter of the calendar year what they say about the pace of consumer activity, i think, will have a little bit of an impact on how we think about the path

of ecom. >> in term of economic growth forecasts for the fourth quarter how important are what these companies have to say about the holiday shopping season >> it's pretty important because you're seeing those estimates get down below 1%. the intra quarter estimates. it will matter a little bit. less so for the indexes but for sentiment. >> we're out of time >> "fast money" begins right now. live from the nasdaq market overlooking times square this is "fast money" we're join by head of technical and macro research tonight on fast president trump's former national economic adviser gary cohn joins us to talk about trump, taxes and block chain. snap ceo taking a jab at the competition in a sit down only on cnbc. who will come out on top in the social media