effects. so we think it's really quite manageable and relative to the standard of care, very good tolerabili tolerability >> dr. paul, a pleasure speaking with you, thank you very much. dr. steve paul, the ceo of karuna therapeutics, now the best-performing ipo of the year. meg terrell, our thanks to you as well. >> hard to beat that >> thank you for watching "power lunch" >> "closing bell" starts right now. welcome to the "closing bell." i'm morgan brennan in for sara eisen at the nordstrom's post in what has been a week of wild retail swings. shares of jwn is up 12% right now on the heels of earnings, broader markets are higher too we have 59 minutes left until we put this trading week to bed i'm carl quintanilla in for wilfred frost. we've got some positive comments from both washington and china, calling investor worries over deal negotiations the data pretty good today, as manufacturing and sentiment beat expectations the nasdaq is set to set a

seven-week win streak and tech is the second-worst performer in the s&p. joining us for the hour, barbara duran from bda capital is here at post 9, talking more about a market that happens to be happy as long as trade tensions are not escalated, pretty much right? >> that is for sure. and i think a lot is being discounted in the market in terms of global recovery, the fed is on hold, but watching careful. and we have yet to see the effect of the interest rates next year. but trade, i think, it's what people are expecting is that there'll be no more bad news i think hoping for something more, like a rollback of tariffs would be a bit much. this seems to have morphed into a geopolitical technological fliskt i think the downside is limited also for those same reasons, plus people are defensively postured and so on but i think what it's going to take is next year, having to see what the earnings are going to be and that's a possibility >> is the market even

considering that possibility is that priced in at all >> i think it is priced in i think people are expecting we won't have more tariffs. phase i has been going on for the last three months, but i think it's probably with the election looming next year and he's heard from a lot of ceos, i think it could happen. >> eamon jaser is covering the white house meeting on vaping. kayla tausche brings us up to speed on the latest china headlines. and carl has a look at how vietnam is cashing nont trade war. and phil lebeau has details on tesla's cyber truck. but let's kick things off with eamon. >> reporter: they've just wrapped up this meeting here at the white house. it was about an hour long. we expected the whole thing to be behind closed doors here, and at the last minute, they brought some cameras into the room so we will see the entire meeting. reporters who were in the room tell us that this session got fairly heated in the conversation back and forth between the proand anti-vaping

camps. the big surprise guest was senator mitt romney of utah. we didn't expect him to be there. he did attend, was debating on the anti-vaping side, saying that utah is a mormon state, but he says a lot of high school kids in utah are vaping in the bathrooms of the high schools. something he's very concerned about. and believe it or not, guys, they were debating the idea of unicorn poop, which is apparently a flavor of e-cigarettes that kids have been using and debating whether a product like that is designed to bring in children as customers or not the tobacco side and the pro-vaping side were making the argument that they can do this responsibly and that prohibition is not something that the united states has had a lot of success with, whether it was marijuana or alcohol didn't work in the past, they say it doesn't work now. we're standing here on the corner, just outside pennsylvania avenue, just outside the white house. and we're going to talk to some of the ceos when they come out here we'll bring you anything they have to say about what else went on behind closed doors here at the white house, guys.

>> all right, eamon. thank you. >> stocks moving higher on renewed optimism for a trade deal with china. for that, we'll turn to kayla tausche. >> president trump continues to say a deal is potentially close, but in a "fox & friends" phoner this morning, he acknowledges the primary setback that it can't be an even deal. he said, quote, i told president xi, this can't be like an even deal, because we're starting off from the floor and you're already at the ceiling so we have to have a much better deal the two sides are at odds over which country must remove more tariffs and they're currently at a stalemate. there are two additional complications this week. in a new fcc ban on federal funds going to zte and huawei, that happened today. and a bipartisan deal backing hong kong protesters trump did not commit to signing that bill, potentially dangling another bargaining chip for beijing. carl >> thanks for nap in the meantime, we're looking at new

data showing that u.s. imports from china are down more than 13% year over year, in the first nine months of 2019. but imports from vietnam are up nearly 35. back in june, we visited vietnam, took a deeper look at how the country is benefiting from some of these trade disputes we are live in hanoi 6,000 factories in the garment business alone >> these are just one of the lines where they're making a stack for nike samsung has changed the picture more than anyone, investing $3 billion in this industrial >> carry things like apparel, electronics, and auto parts. >> at the time, we talked a lot about the challenges of ramping up supply chains in vietnam, but every additional day, where tariffs are in place is one more opportunity for a manufacturer to diversify their supply chains out of china >> those numbers, i mean, up 35%, imports from vietnam, certainly speaks to how quickly some companies seem to be making these adjustments.

having been on the ground there just a couple of months ago, are you surprised? >> no, not really. these numbers sound about right. i do think we need to keep in mind getting a new supplier, vetting them, getting contract work done is a very long process, especially if -- for manufacturers, where they've already got orders it's hard to bring on new orders >> particularly if it's technology, which can be some very sophisticated stuff i think the low-hanging fruit has already happened and i think for a while, business executives weren't sure what to do and they're really moving as quickly as they can, if they've got complex manufacturing needs, it's not so easily filled. >> tesla, meantime, is lower today after unveiling its highly anticipated electric pickup truck called the cyber truck last night it's been trending on twitter all day. analysts expressed mixed thoughts on the new vehicle. oppenheimer saying, quote, a majority of consumers will not be inspired while baird sedays, quote, over time, impressive

features will earn over an audience and toni sacconaghi saying, quote, the truck looks weird, like, really weird >> i think it looks cool >> twitter also weighing in on the truck's design this gif of ryan gosling laughing another showing it in the paint app, tweeting, elon and print. and another tweeting, finally, my boy at elon musk made the car i always drew when i was 5 you like this design >> i think it's cool i'm also not a pickup truck owner, so maybe i'm like part of that demographic that would see this and, you know, likes the design and, you know, would be the niche that everybody keeps debating about, that this would speak to it's also made with the same materials they're using for their new space-x rocket, so i guess i'm partial. >> that's what i thought i thought they used the designer from one of his space companies. >> nerd pickup

musk says he drew inspiration from ridley scott's "blade run." take a look at that original trailer. >> there was just one outfit making replicants that superhuman >> november 2019, los angeles. phil, i don't know what you find more interesting, the actual design and its reception or the obvious demonstration that went awry today >> well, i enjoyed both, to be honest with you. as somebody who has gone to a number of these events, elon musk does not like to see anything fail. he is a perfectionist. so when he saw the demonstration of the shatterproof windows shattering not once, but twice, i mean, he tried to put on a brave face there, but having been at these events and having watched him up close, you could

tell that this was not sitting well with him. it's one thing to say, we've got a great vehicle, but to sit there and tout that you have shatterproof windows and then to see this happen, that's what stood out the most from the unveil yesterday >> mike, the specs seem to be pretty solid, pretty impressive. did you take a test ride in this vehicle. is that the case if so, what was your takeaway? >> i did take a test ride in the cyber truck. my takeaway was that it did not feel as quick, as blisteringly quick as the rides i've taken in some of the other tesla products, like model "s" and mo model 3. it has plenty of room in the backseat and a jump seat in the middle so you can have six people in the truck. there are no side mirrors and the wheels and tires do not look production ready ooich got more questions than answers. >> phil, now that we've seen this, you know, once it's mary barra's turn, what's the

likelihood it's going to look old-fashioned in comparison. >> it will look like most of the pickup trucks. general motors has 31% of the pickup market. they realize that electric vehicles are coming and that they need to have an electric pickup truck but they are not going to survive the cash cow, which is the full-sized and heavy duty pickup mark that they have a huge presence in so as a result, what you will see when general motors and ford and the traditional automakers roll out their electric vehicles, you'll see more functionality tied in with the fact that these are electric vehicles, greater capability, the ability to use tools and accessories off of those vehicles but you will see a more traditional pickup truck design. i mean, it's proven itself over the last 80 years. i know that elon's fans -- i know that they will say that it's boring, but for somebody who's in kansas citi, kansas, or kansas city, missouri, if they're driving around a pickup truck, they want functionality

they don't want to look cool that's no what they're in for. >> mike, you mentioned -- questions whether around the truck is production ready or not. what do you think this is going to do the production lines at tesla when they do start to manufacture it we've seen what the hiccoups were for model 3 this seems like a whole other design and manufacturing situation altogether >> i suspect that there are going to be challenges with making a truck out of stainless steel and then doing that at volume, and then doing that to a price point under $40,000. i'm not an economist, but i'm trying -- i'm struggling to do the math on how that's going to work out i have no idea what they think they're going to do and whether or not this will actually appear as it was presented in 2021. i wouldn't be surprised if the timeline gets pushed back a little bit >> well, we've seen that before. phil, while we have you, we also want to ask about this ongoing back and forth between elon musk and tesla shortseller david einhorn. musk initially wrote to einhorn on november 8th, telling him that he made numerous false

allegations against tesla. einhorn wrote back questioning the company's accounting practices and now einhorn just tweeting another letter to musk, writing in part, quote, i haven't heard back from you and i followed up by contacting your investor relations team more than a week ago. silence. what's your take on this >> it strikes me that this is how we will see them communicate in the future. over social media! i'm surprised that there's any communication between investor relations for tesla and david einhorn. and i bet you we will probably hear back from elon musk at some point through social media that, obviously, hopefully is being vetted first by the board. but that seems to be the way that these two are communicating. it's like they like to have a little sparring, a little public sparring as opposed to actually communicating. >> well, we know who has the bigger bull horhorn, at least o twitter, and it's not einhorn.

phil, mike, thanks, guys appreciate it very much. staild this afternoon, despite this week's pullback, stocks are still within a whisper of record highs, but an upcoming event could inject a dose of volatility into the market santoli will explain and later, we're rounding out -- excuse me -- our wat"wath this space" series with xxprize founder peter dmandis joining us the flash expectations coming in at 52.2. and consumer acceptabilities with a reading of 96.8 "closing bell" will be right back it's tough to quit smoking cold turkey.

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44 minutes left of trade major averages are higher right now. let's send it over to mike santoli for today's market dashboard. mike >> morgan, thank you very much we're going to start with something of primary concern wall street starting to turn its attention to the whole campaign sequence next year and probably goes without saying, no leader is infallible. we'll see what that means for the stock market with some leadership groups. and the message of the masses, what's the average stock, the crowd of stocks saying about the

overall index action then pocketbook issues, consumers and their mood about their own finances so first of all, of primary concern, this is a chart from wells fargo's derivative strategy group, showing the forward expectation of the markets for volatility level it's essentially the pricing of volatility index futures and other derivatives. and it shows you by calendar slice here when the market believes you might see a concentration of volatility or a little bit of a spike in volatility what's this date right here? well, it's early march that is when the super tuesday primaries are. perhaps it's considered the kickoff to the real heart of the election season. there's some other folks, strategists out there like michael hardin at merrill saying, the market seems to have a clear ride until perhaps that point. whether it's true or not, really bri predictive, or just shows you the habits or predilections of how the markets think about elections, that is interesting that we're already seeing it kind of welling up in that range of the calendar, guys.

>> mike, you've got to see tell viewers, hartnett's targets and the threes >> he's being saying 3333 for the s&p on 3/3, which is march 3rd. i think it's an intentionally cute forecast, but it does tell you directionally this idea that perhaps the market has some more room to the upside, but maybe it's going to have a little bit more chop once we get into election time. >> all right mike santoli, thank you. we've got 42 minutes before the bell the dow is currently up 102 points, moving back towards highs of the session the s&p is also higher right now, 0.2%. nasdaq and russell also in the green, although keep in mind, we're poised to finish the week in the red for all the major averages up next, drones are coming, that's according to a new note from luke capital which identifies the u.s. companies that stand to benefit from commercial drones. we'll break that down, later and later, give them a break. tesla's window smash is not the

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because your investments deserve the full story. t. rowe price invest with confidence. welcome back to "closing bell." the word on the street, stifel upgrading uber to buy, citing its growth opportunity and 2021 profitable target. sun trust naming uber its favorite transportation disrupter of 2020, saying uber

ride should provide valuation support for uber's entire portfolio. stifel upgrading l brands to in line bath and body work's continued outperformance is undeniable the drones are coming, the drones are coming. that's according to luke capital's latest note on commercial drone package delivery the firm says china will continue to be a leading market for commercial delivery drones due to the rapid pace of technological innovation, but it also says u.p.s. and alphabet have an early lead among u.s. operators, due to upgrading divisievices from constrictive frameworks to more expansive faa rule sets. barb, is there a name here that you specifically like? i mean, "l" brands in particular in a week that's been busy for retail has -- >> i read the note, "l" brands basically went to a hold, which doesn't mean buy victoria's secret is taking much longer to turn around. yes, bath and body works is doing very, very well, but their

same-store sales was also negative and that's a bad sign the analyst was saying, the stock is down 44, 45% since the summer, but the risk/reward is more attractive. i think he's right that there's a limited downside, but i think it's a long time before i make real money in this stock i would not be a buyer >> dara has bought some stock. they've talked about exiting eats markets, where they're not number one or two. is there a turn here or not? >> it's interesting, the fact that they're now willing to, they said maybe 12 to 18 months, they'll decide on uber eats. they'll cut back, not just go for break, and expand at any expense. they're going to focus on target markets for uber eats. and they've got 30% market share worldwide. the addressable market is estimated some $400 billion. it's huge. and they've got the scale, they've got the management talent, and i think it's probably a good call that we're through the ipo lockup, all of that stuff, the extraneous factor it's not a bad call. and the valuation certainly has been more attractive over the

last few months. >> it's been a long ride since 45, that's for sure. just about 38 minutes until the closing bell the dow up 111, s&p, 3110. when we come back, we have your last chance trade. >> and after the break, chair of lvmh joins us to talk about the company's potential tie-up with tiffany. and here's a check on bonds. yields moving lower today and turning in their second straight weekly decline "closing bell" will be right back ♪

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>> let's get a news update with sue herrera back at hq hi, sue. >> hello, carl hello, everyone. here's what's happening at this hour israeli prime minister netanyahu says that he will accept any court's decision into corruption charges filed against him. but then in a facebook video posted on his page, he also repeated calls for law enforcement officials to be investigated for their conduct in his case. cnbc.com reporting that mike bloomberg is spending nearly $20 million on tv ads, as he prepares to enter the democratic presidential race. data compiled by advertising analytics shows the former new york mayor has invested the sum in key primary states. joe biden is officially a candidate in the south carolina presidential primary he made it official while visiting a soul food restaurant in that state. he was there that he presented his paperwork to a waiting state official and believe it or not, take a look at that a chicago woman has set an unofficial world record for holding up a hula hoop

jenny done set the record of 75 hours at city bar this morning she's hoping to reach 100 hours. she's using the stunt to raise money to fight mental illness. you are up to date that's the news update at this hour morgan, back downtown to you >> 75 hours! >> 75 hours. >> holy smokes >> i can do it for about two seconds. >> you notice it was done at a bar. so you never know what the motivation is there. >> but anyway. >> all right, well, congratulations to her sue herrera, thank you let's send it over to mike santoli for the second installment of the market dashboard. >> it was for a good cause, but i would want the official record if i was going to put in all of that time for that no leader is infallible, that goes for the market as well as other parts of the world so look at these three leadership stocks or groups so far for on a one-year basis. semiconductor index, microsoft and apple. a nice bit of sink rownicity

just trouncing what the market has done the thing to focus on here is this little curl you've seen them come off the boil these semis are some 3.5 to 4% below their highs. microsoft has barely budged to the downside is this going to leave the market bereft of an engine to the upside or are we going to absorb it. i would also point out these other times on the way up. so something to watch as we monitor things here's a great chart, though first-time historical perspective. these are the stocks since 1990 that have gone as high as a 4% weighting in the s&p 500 apple, you see it right here, most recently, but before that, microsoft, ge, cisco, exxon in various years since 1990, and this is how long they managed to stay there one year for microsoft, 15 months for ge. so you see, some of them have had a good run, but really nothing longer than 15 months in all of this span and you see that apple has

bobbed up and down below it. a couple of notes. one, this can come down without apple falling apart, because other stocks can go up more than apple. also, before 1990, it wasn't uncommon to see at&t and ibm to be worth 19% of the index. doesn't say anything decisive about where apple goes from here >> the gains are amazing when you consider their market cap is basically the size of the russell. >> it's enormously, and that's kind of the way bull markets go. you have the top-heavy names power the way, but it is amazing to think what we'd be looking at if, in fact, apple and microsoft had sat it out >> going back to the first chart that mike just showed, semis and microsoft, if you do see them coming off of the run that we've seen so far this year, can the market continue to power higher without them >> i think they start to come off. i don't see them coming in that much it's really, are the fundamentals changing? if anything, on the

semiconductors with global growth recovery, they should have a support but i think it's pretty normal to see a little bit of a dip down there so, i don't expect that in any of those names they've got great long stories there. >> mike, our thanks to you we'll see you in a bit as you've seen by now, shares of tiffany have been on a wild ride they have given lvmh access to their books for a potential takeover joining us is the author of the new book, "aesthetic intelligence." pauline, it's great to have you. thank you for coming >> thank you for having me >> so this feels more flirtatious than kbaicombative, wouldn't you say >> wherever you make a bid for a public company, it's pretty combative. tiffany is not a willing seller. and the story that hasn't come out is that there are actually other potential bidders who are at a minimum taking a look at this company so, we'll see. the next few days and weeks are going to really bear fruit

>> why do you think that's the case what is it about tiffany >> number one, it's a very scarce asset it's the only independent luxury jeweler in the world, branded jeweler that is available, that is scale, that is high scale, that has global awareness. so whoever it goes to, it's not like there's a good number, too. and for lvmh, less than 10% of their total sales are in the watch and jewelry category, so this would be very additive for them it would balance the portfolio >> do you think we're going to see more consolidation more broadly in retail, whether it's on the luxury end or the more affordable end >> we've seen a lot of consolidation in the last few years. i think we'll see a lot of zpags in retail. i think a lot of the players that are in the middle are going to have to go away we're just overretailed as a country. we're overretailed as a sector and there'll be winners and losers in the market as healthy and consumers are spending, but not spending on the middle of the market >> speaking of which, i remember a time when the thinking on tiffany was, you've got to get

people to go more than engagement and valentine's day silver was going to be big, all of that. would lvmh, do you think, take it down market or up >> i think lvmh would bring it up you know, if there is such a way to go up for tiffany's, because they're such a great luxury brand. i think what they bring to the party besides capital and having the same kind of luxury brand and feel is that they have -- they seem to have better technology, they're very good at innovating and tiffany has struggled the last few years, which i would love to have your thoughts on that >> i think tiffany has not struggled with quality, they've struggled with design and coming out in new ways, modern ways, interesting ways to express their brand, above and beyond that beautiful blue shade that we all know so well and has bebeen their mark for the last 50 years. >> what other players? you mentioned other players may want to play in this who? >> the two most obvious, there's

regmont. the other one would be caring, which is lvmh's closest competitor in the fashion and accessories sector also french owned. >> we're going into -- we've got black friday literally a week away we're going into peak shipping season fedex and u.p.s. just came out with the numbers both are expecting another record season due to ecommerce growth luxury hasn't necessarily participated in the ecommerce phrase as much do you think that's starting to change, especially when you do have some of these online retailers, al bit, maybe in the secondhand market like the real real and some of the others coming in, do you think that will change? >> i don't think it will change much in fashion and soft goods returns in luxury ready-to-wear are very, very high. some of the players have as high as 50% returns, because fit is so important when you're spending that kind of money. if you're buying athleisure, you can be a lot more forgiving with how things fit on you. and i also think that the

customer really needs to feel and touch things when they're spending at the high end of the market other segments of luxury, i think that's where the growth will be. >> it's sort of a left turn here, but i know you have thoughts on this tesla truck >> oh, boy >> what do you think >> having just written a book about aesthetic intelligence, i think it is an example to have really poor failure of aesthetic intelligence it is the ugliest-looking video that i've seen since the amc greml gremlin. >> wow >> not optimistic. >> a lot of viewers will remember whatgremlin you don't believe elon is shooting for a pickup owner that has a different state of mind than what we think a pickup owner is >> i'm sure that's what he's shooting for the reality is americans love pickups, but americans who love pickup trucks are not necessarily prioritizing environmental sustainability so point number one, there's a built-in conflict there. and point number two, i still

think he is made such a miss on the design front i was optimistic i would say the only thing that's good that came of it is the price point, which is lower than people expected >> all right we're going to keep watching pauline brown, thanks for joining us >> thank you >> congrats on the new book. >> thank you we have got 24 minutes before the bell and here is where we stand all the major averages are higher right now the dow is up 99 the s&p is up 0.2% nasdaq, russell, transports all higher as well up next, we've got your last-chance trade. plus, will that cyber truck glass goof end up shattering sales of the new vehicle walter isaacson will talk about some of the other botched product launches we've seen in the years past and what that could signal about the outlook for the truck. n'goy.wa ♪ ♪ ♪ ♪

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fingernails what would happen, but there was no slowdown in evidence they beat earnings, revenue was up 30% and i think people are really underestimating the international markets, how big that can be for them it's still very early stages in countries like india or japan or north korea or a lot of other countries. and as far as competition, they have been against big competition the whole time whether it's pay tv with bundles of news and sports or endless channels with all the content. so the new competition coming in, you look at disney disney, i think, will be very successful they've got a great library, but the library is small it's 600 titles. so for them to do new, they'll maybe do, who knows how many it will cost them a lot. and that's compared to netflix's 6,000 titles and they're bringing out another almost 60 new things this fall their content, the quality and quantity, i think it's overwhelming i think the stock could be up 30 to 60% from here >> interesting

you think the market is prepped for maybe a rising churn we're ready for that >> i think they think there's going to be churn. i think all of this competition will eat their lunch but it will take a long time for the competition to scale up and a lot of money it is not going to happen that quickly. it will be years, in my view and even as third party content goes up, even that will be slow. i think people are really underestimating the power of this there is this big, secular thing going on with people wanting more and more streamline, i mean, to watch streaming videos. and that's not remotely over >> all right, last chance trade, netflix. shares are fractionally lower today. we've got 18 minutes before the bell here is where we stand right now. dow's up 0.3%. s&p is also up by five points right now, 3108. nasdaq, russell higher we're poised for losses for all the major averages for the week, though when we come back, uninterrupted coverage of the final minutes of trade in the market zone. plus, we'll hear from one

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make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. 13 minutes left in the trading day and the trading week we're now 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 to break down these crucial moments of the trading day and today we've got barbara duran from bd8 capital partners here as well we're going to start, though, with apple reportedly seeing soaring demand for its air pods and josh lipton has the details for us josh

>> reporter: so morgan, no surprise here, air pods seem to blanket san francisco and now a new report says shipments of apple's wireless earphones will double to 60 million units in 2019, driven by demand for those new pricier air prods pro model. apple declining comment to cnbc, but investors care, because even as iphone sales are falling, the wearables, home, and accessory segment, which includes air pods, surged 54% in the last reported quarter to a better-than-expected $6.5 billion. and just this week, remember, microsoft saying that its air pods' competitor called surface air buds are delayed until the spring guys, back to you. >> josh lipton, thank you. mike, it's not helping the stock today. we've seen a little bit of a breather here. >> not today the stock has been straight up for a while now. and i think this falls in the category of, well, that's nice and over time, it can build into something that maybe does make its way more meaningfully into the valuation, but it's still in

that zone of we don't really know how to model it or if there's an upgrade cycle that's attached to those products and the iphone is still the bulk of the margin that the company collects so i think it's only good, but not necessarily the main motivator. >> we always say, oh, it's not going to move the needle, but you put together enough small categories, eventually, the needle starts to move. >> and i think it shows the power of their brand and the loyalty of their customers they expect quality and they'll pay up for it. >> tesla remains an enigma today. that stock is under pressure after unveiling its brand-new cybertruck last night. the pickup truck's design was met with harsh criticism by some, but at least one analyst disagrees. jed calls the truck design unique, futuristic says it will resonate with customers and lead to solid demand he was at event last night and joins us tonight by phone. jed, thanks for phoning in good to talk to you. >> you too i just landed from my l.a. trip. >> what did you see that you

liked and do you think he's getting some free media out of the fact that that demonstration went wrong >> possibly. but, for me, forget about what the truck looks like look at the performance factors. if you look at tesla as a stock, it's about transitioning from low-volume, high-priced vehicles to high-volume, low-priced electric vehicles. that was the challenge that's what they're coming through. we got a great quarter of profitability last quarter they can keep that up for next year, stocks are going higher. look at the specs. the specs from this truck suggest you've got costs that are coming down 30 to 40%. that's a harbinger for what we think earnings will do for this stock. we will know in three years whether or not this is a good design or a bad design until then, we can do the debate i don't think that matters >> but jed, the stock is down 6% today. and certainly, at least from the pushback from the critic side of things, the design is exactly

why this stock might not become mainstream and is being seen as niche. who is actually going to buy this truck >> i don't -- you're talking about a truck that's going to be launched in three years. yeah, you'll put some orders in. by the way, the orders are only $100 so i don't think -- i'm just giving you my perspective. i don't think this matters for this stock, whether it's going up or whether it's going down. and i would say that most of the analysts that are focused on the design here, i think that's going to be a red herring. >> jed, how big of a deal is it, the demo, the throwing of the ball and the windows cracking? how big of a gaffe is that >> yeah, i mean, i thought it was a -- you know, i thought it was a failure. i think that they are getting more publicity, but i think that, frankly, you know, when you demo something, you leave nothing to chance and you make

sure it's rehearsed, as steve jobs would often do. so, so that was a swing and a miss there >> mike, the move in the stock today. certainly, we see big moves in tesla, that's not unusual. >> it's not unusual and it has been levitating on, you know, really in a vacuum of incremental new news so i think this maybe shows you that the latest bit of this news was really not attached to the pricing of expectations for this truck, i don't think i think it was kind of this adverse headline it seemed like it took some of the air out of the enthusiasm, just behind the general brand. i don't think anybody buying it or selling it today was doing it buff the prospects for this product line, which barely exists >> all right, jed dorsheimer, thanks for joining us. >> thanks. >> meantime, karuna therapeutics

has been one of the hottest stocks on the street and rallying again today >> the stock is bouncing back today after a decline yesterday following the company's secondary offering, but these moves are nothing compared to the stock's almost 400% gain earlier this week on positive data for karuna's experimental drug for schizophrenia we talked with ceo dr. steve paul today on "power lunch". >> very nice effect in terms of the magnitude of the antipsychotic effect and again, without the troubling side effects of the current standards of care, no weight gain, no sedation, none of the motor movement problems. >> guys, the next step, of course, is proving the same effects in a larger phase iii study which they aim to start next year. meanwhile, wall street is already speculating this company may be an m&a target back over to you >> meg, it does seem like we've seen -- this is the second example in recent weeks of a promising, either trial or announcement of a trial and then outsized gains that day, right >> absolutely.

biotech sentiment is improving dramatically right now, guys i'm hearing from a lot of folks who are at conferences saying, things are looking up. but it's really interesting it's coming at this timing, because washington is really cracking down on drug prices. when you see good data and new drugs being approved way ahead of schedule, which we just saw just recently with a very tex drug as well, these are good signs for the industry and sentiment really is improving right now. >> meg, thank you. your take either on karuna or moves you've seen in health care more broadly >> well, it's interesting that biotech, you know, when you get to phase iii and you haven't been there yet, i think it's always risky to either buy these stocks you know, you hold it if you own it, but you're taking a risk there. and in health care in general, there's been lots of good stocks that are below where they were six months ago, for political purposes, and for political reasons. and some have recovered, but i'm still not tempted, because i still think you guys did the chart on the volatility around the march primaries, and i think

we have more to go to see if elizabeth warren or bernie sanders get even more traction and then we get more concerned about health care. >> shares of footlocker, meantime, are falling despite stronger-than-expected profit and same-store sales and courtney reagan takes a closer look at that stock for us. >> so footlocker put it, better thans expected earnings and comparable sales they were up a strong 5.7% the results initially sent shares higher premarket, but on the conference call, the athletic retailer issued some pretty disappointing holiday quarter sales and full-year sales guidance as well as full-year guidance thatsent th stock lower. and while back-to-school was strong for the company, sales weakened as the quarter progressed management also noted more challenging apparel trends, excluding nike and jordan. those tend to be a little stronger right now footlocker also calling out a slowing logo trend jpmorgan's matt boss says that could be most impactful for brands like tommy, champion, and

tommy hilfiger so if that's slowing, watch out for a number of different names. carl >> hey, court, given the prints that we go this week for your beat, could we expect more color going -- coming out of black friday a week from today >> i think the color that we get on black friday is going to be pretty general and pretty hard to nail down any real specific trends i think a lot of retailers, even though the sales are spread out, still have their biggest days of the year on black friday now, it might be split between online and in store, but even a name like home depot, not a traditional black friday name, their best sales day ever was black friday last year but we didn't know that until several months later so we'll see what we get >> yeah. it's coming up on us and the thinking around retail this season, barb, has been markdowns are controlled, cold weather is helping a little bit here, right? we haven't heard that from every name >> no, no, we haven't. and you've got so many different, you know, cross currents, as well. you look at nordstrom, nordstrom

people got excited about that, but they still have big issues they're still repositioning themselves their same-store sales were still down, which to me is always very telling. you have negative same-store sales, even if this area is looking good or not, you've got to be very cautious. even a name like footlocker. you know, footlocker, they really depend on the right merchandise selection, plus, they have another issue, where their core market, which is the youngsters, 15 to 24, who are now switching to buying more online, directly from their brands and they've had some of the big brands so every, you know, there's very different stories for a lot of the retail, so it's been hard to generalize, you know, and some of the winners have started five years ago making the transition to multi-channel and some are just getting started. they may yet get there >> and a huge gulf between how the market wants to value the acclaimed winners, the ones that have figured it out and the big box, and the ones that can withstand any environment and footlocker if you're in the mall, the stock is dirt cheap and the market

doesn't care it sells off when you somewhat light guidance >> how much of the action around retail this week do you think illustrates overall market sentiment? >> i think it's similar in a sense that people would rather buy quality at a higher price than by kind of beat up secularly challenged type businesses for a trade >> barbara, hearing you talk about this idea of winners and losers, are you actually invested in retail are there names that you like right now? >> i've been invested in li lululemon has been a favorite. they're just firing on all cylinders. and it looks like that can continue footlocker only seems like it has the one lever to pull. something like lululemon has international growth, more footage, more product lines, all that sort of thing i like that. i've had nike for a long time. i own names like costco and walmart. i really stick to the ones where i see they have great management and a plan to move forward >> that's a good list.

in the meantime, mike, let's look at the market internals >> if you look at the breadth of the new york stock exchange, up and down stocks, obviously, we have up indexes, but some days this week, even when the market has been up, you've had the majority of stocks down. 17 to 11 ratio, up to down, that's pretty good small caps outperforming as well we were talking about biotech earlier, look at week-to-date, this relationship here, biotech against semiconductors it shows you some rotation going on they're both kind of risk-seeking areas, growth investors, semis are coming off a high and biotech is getting bid right here and finally, the vix year-to-date, we're bumping along the bottom if you want to squint and say we've kind of made a low at the 12 level and are turning up, maybe, to me, that just looks like a steady kind of calm market for the foreseeable at the moment >> okay. let's send it over to bertha for the action at the nasdaq bertha >> it's continuing on that theme. semis are the worst-performing sector here this week, helping

the nasdaq snap that seven-week winning streak and kla is the worst-performer this stock was at an all-time high following earnings last week and it's now in correction from there yet again, it's still up about 80% for the year a lot of investors seem to be rotating into that beaten-down sectors like software. it's one of the winners this week, up about 1%. and biotech up for eight straight weeks one of the big winners this week, medicine company after a good trial data on a cholesterol drug over to bob. >> and bertha, market moving this week, mostly on macro news that's trade related we're down fractionally, but much too early to get bearish on the market retail, one of the few sectors that actually moved on sector specific news. we actually had a couple of companies move up as the expectations were low. look at buckle here, simon property group, that's a new 52-week low for simon property gup and that's the downside of the whole retail environment

that stock moved up. buckle is at a 52-week high. nordstrom low, also doing a little bit better. there's the "closing bell. dow jones industrial average just off the highs today 108 points s&p 500 up 6 >> welcome to the "closing bell." i'm carl quintanilla in for wilfred frost. >> and i'm morgan brennan in for sara eisen >> you hear bob bring you the dow, s&p, and the russell as the data today pretty constructive, whether it was market pmis or michigan sentiment >> financials and consumer discretionary, the best-performing sectors in the s&p today, whereas real estate and energy were the worst-performing all the major averages actually finished the week slightly lower. joining us to talk about the

market day, barbara duran, senior portfolio management at bd8 capital partners is still with us, along with terry spat, chief investment officer at sierra mutual funds. first, i'll start with you resting or rolling over? >> yeah, i can see it both ways. obviously, it's flattened out, slowed down in the last ten days or so. i see that there's a fair bit of selling under the surface. i think a lot of stocks in leading sectors look like they're rolling over on the other hand, you can look at the same exact set of data and say, well, we've relieved some of the joufr bought conditions sentiment got overexcited, but it's kind of cooled off a little bit, and you can have one of these stealth pullbacksas opposed to a real one. i'm not sure exactly how it plays outfrom here, although i will say, if you do -- don't be surprised if you get an index following a pullback, but it's probably not going to disturb the picture of a decent rally

that we've had going since august it probably just a pullback. maybe we're due for one, but i don't think it would be the big one. >> terry, the same question to you. as we finish out the final weeks of 2019 higher or lower from here >> i don't think that we need to make bets. we are advising against making big bets one way or the other. there's just too much uncertainty that's still out there that's binary. we don't know what's going to happen with trade. it could go in either direction. i think there's too much uncertainty out there to make a big bet one way or the other we're just sort of toeing the line in this environment, which i think to mike's point, there's still a lot of under the surface stuff going on that doesn't support too much of a rally going forward. >> what does toeing the line mean how should investors be positioned in this market right now? >> we're keeping air bags essentially in the car we want to make sure that we have trailing stops under everything that we own we're fully invested we're not taking a lot of chips off the table, but we're not also going to put a lot of money

into risk-on right now, just because i don't think you're getting paid for that risk in the markets that we see. and so just staying more neutral in portfolios is a little bit boring, but sometimes doing boring well is what we're good at so that's where we're sitting right now. >> barb, the bulls still argue going into year end that everyone's postured defensively, right? and there will be a chase in december what's wrong with that thesis? >> i think the fact is, people are positioned defensively, which is a good thing in terms of the market continuing to move higher, because people made money, they've done well this fall, but now i think it's interesting that biotech was up eight weeks in a row that to me is a risk-on trade. so that says that there's a little bit of animal spirits there, very little, and all we need is some positive news on trade and it will probably be some very weekend, we're not doing anything more right now. and i think it provides an underpinning to the market because the earnings we're looking for next year, we're not going to see until next year we're done with this pretty much earnings season. so --

>> i think there's a nuance to the positioning question, whether people are defensive or not. the short term tact it will condemn that are always in the market, they got overexcited if you look at the options traders and the people who are very tactical, i definitely think that they were racing it into the highs now, longer term money, long, short hedge funds, still seem very lightly exposed to stocks and not really positioned. maybe that's why the dips have been so shallow in the last couple of weeks. >> it has been difficult to get this market suppressed and keep it suppressed. guys, thanks we are watching this wework employee meeting in the wake of those layoffs announced yesterday. deirdre bosa has details >> a source that was in the meeting tells me that executive chairman spoke for over an hour, outlining wework's strategy just a day after laying off 2,400 employees. he said the start-up ames to be adjusted ebitda profitable by 2021 and free cash flow positive by 2023. to get there, he said that he would look at things like more

jbs and franchising. still, it is difficult to see how they get there, considering the company lost more than $1 billion last quarter i was also told that there was no mention of adam neumann at the meeting. rather, much of the focus was on that magic word of the month, profitability. back to you. >> deirdre, i realize that clure was laying out a five-year plan, but is this the first time we've heard these numbers? >> we did hear a plan before this they made a presentation about a 90-day plan, but this was before so softbanks' rescue package. the one he laid out today is new and the two years, 2021 and 2023 for free cash flow positive were new today. >> deirdre, thank you. mike santoli, free cash flow positive, 2023 how do you think that's going to be received? >> to me, the interesting part

of that is how many of these companies are now essentially targeting not next year, but the year after next, that they're going to basically cut back enough to try and harvest some cash flow? >> but even then, we're seeing some of those names continue to sell off and i realize that wework is private and is being bailed out by softbank right now. >> that's exactly right. and i think that's because they haven't demonstrated the path to even do that much. but even more broadly, you have to figure that they're going to prepare themselves to make themselves look like they have a better financial model >> you're talking enterprise software cloud. >> i don't know if it's going to be big enough that it's going to swing the entire demand story around but it's interesting that there's this retrenchment feeling as opposed to growth at any cost >> all right it's been a wild week frkt market bob pisani looks at the biggest winners and losers on wall street >> mostly moving on macro news, like i said, but retail was an exception this week. home depot is one of the great winners this year, but it was

down about 8% on the week, on some somewhat disappointing retail news. kohl's dropped 20% this week this is not a new low, believe it or not. giving you an indication of what some disappointment will do. the winners, target, costco, ross stores, tjx the losers, the department stores and apparel stores have dropped so much, they're midcaps at this point. gap, 6 billion nordstrom's, 5 billion macy's, $4 billion target is a $64 billion market cap, just by comparisons how the mighty have fallen back to you. >> bob pisani, thank you terry, retail. we've been talking a lot about it with earnings this week, winners and losers what do you think of the sector more broadly and is it a good gauge of the consumer right now? >> you definitely have to pick your spots in retail and i think that there's been a lot of coverage. you guys have done a great job in talking about the strength of the consumer in the u.s. and because of, you know, low unemployment and decent wage

growth but i think what's sometimes getting missed right now is despite fact that we have strength in the consumer, there's been this response to low interest rates that has resulted in just ballooning of corporate debt and a ballooning of federal debt so i think that that's going to weigh on the economy going forward and slow economic growth so strongs the consumer might be, i'm not sure that they can overcome that in terms of the longer term growth and certainly the earnings going forward so you have to pick your spots in retail and be cognizant of the fact just because the consumer is strong doesn't mean the whole economy will continue to muscle forward. >> terry, claims this week do you think that's a tell on the consumer >> good question that's one of the things we watched very closely until that 12-month moving average moves above the current level, which it's not, then trend is still quite strong in our view for unemployment. and so, you know, again, i think the consumer is strong in

general in terms of jobs, but i don't think that that necessarily is going to translate into robust economic growth or earnings growth for the next year. >> barbara, terry, thank you for joining us have a great weekend >> you too still ahead, with a failed demonstration of tesla's bulletproof glass on its new cyber truck shatter the vehicle's reputation walter isaacson looks back at the impact of other big tech product fails. "closing bell" will be right back (people talking) for every dollar you spend at a small business, an average of 67 cents stays local. shop small and watch it add up. small business saturday by american express is november 30th. non-gmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not.

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is november 30th. the reveal of tesla's cybertruck marked by its failed demonstration of the truck's alleged bulletproof windows, it is not the first company to have a demo go wrong. take a look back at some of these other tech fails >> we are in a 360 video, in puerto rico. and -- hold on a second. we're on a bridge here it's flooded >> now, unlocking it is as easy as looking at it and swiping up. and, you know -- let's try that again. ho ho ho, let's go to back up here >> you can help me out, if you're on wi-fi, if you could just get off well, geez i don't like this. all right, let's go back to primaries. i'm afraid i have a problem and

i'm not going to be able to show you much here today. >> just plug it in it's going to say, hey, i see you plugged in a new device and it's going to load in the appropriate drivers. you'll notice this scanner build -- whoa. >> that must be why we're not shipping windows '98 yet >> absolutely. absolutely >> for more, let's bring in cnbc contributor, walter isaacson, advisory partner, professor at tulane, also the author, of course, of steve jobs. walter, it is great to see you happy friday >> happy friday. thanks, carl >> that was a great piece of tape i'll tell you, people still today are in disbelief that someone as careful as elon musk would have let this happen at this demo last night you believe -- i assume, that it was not intentional? >> i don't think it was intelligenceal, but even the fact that you have to ask shows it's not going to be the end of the world. it went viral. it sort of made everybody look at it. and by the way, yeah, windows

are going to shatter occasionally i remember being at that steve jobs demonstration you showed on the clip when the wi-fi was clogging up and everything else. there's an old saying in tech that you're familiar with, which is, you've got to make sacrifices to the demo gods, because the demo gods are out to get you. i think this is cool and by the way, i like pauline brown. she's a friend of mine, i disagree with her, i think the design of this is pretty spectacular. this -- >> all right, so who's the natural buyer? >> well, i think it's got to be sort of an early adopter, somebody who's going to want to make a statement, because it's not like buying an f-150, where you want to be part of the crowd that drives a pickup truck like that i think there are a lot of people who are going to want electric, want to make a statement, want to have an off-road vehicle, and we'll see. i mean, the problem is, it could have that delorean car launch

problem. the "back to the future" design, and you know, it's got to be something that will catch on but just personally, i loved it. >> i'm in the same camp as you, walter i thought it was kind of cool too. i'm not -- i don't own a pickup truck. i've never been sort of the key demographic for a pickup truck, which i think kind of begs the question, though, is this going to be niche or something that speaks to a much wider, broader audience >> i think there'll be a niche quality to it, just like, by the way, apple is a niche product in many ways, especially over the course of its history, but it's very cool to have a guy like elon musk focusing on the importance of design and doing it with physical products. i mean, nowadays, anybody can make an app, you can do it in your dorm room or garage, you can do software, you can do services but doing things like a battery or a car with a molded frame around the cage or a truck like

this, that's really pushing the envelope especially with the batteries, too. and so you've got no just be cheering for the innovators. >> walter, you talk about the natural buyer being someone who wants to make a statement, be an early adopter. it sounds nature, right? i can't assume -- i can't imagine you believe this will be a volume product >> no, it won't be and i'm not sure any teslas are going to be volume products. i don't own a tesla, but if i could, i would you know, i think that when you're doing an electric vehicle, you're pushing the edge of design, i'm not sure i didn't see the numbers. i'm sure they probably didn't predict numbers, but i would suspect that even tesla is going to say, this is not a mass market product at the outset >> walter, of course, it's going to beg the question, though, can they get this truck out in the time frame that they've just laid out >> that's something that elon musk has not proven that he can

do you know, he's got a lot of vision, but vision without execution is hallucination this is a gorgeous vehicle it kind of looks like a hallucination, at times. we've seen how tesla has missed the nuts and bolts production of it you can go back in the history of innovation. and by the way, even with steve jobs, when he did the original macintosh, there was the problem then of getting things out the door, marketing it, pricing it right. so he stepped aside for a decade likewise, intel in the early days had problems, they bring in an andy grow the thing about elon musk and tesla is he's got a lot of vision we've got to see what the execution is going to be like. >> yeah. i have a feeling we're not done talking about the cybertruck walter isaacson, thanks for joining us we've heard it compared now to the delorean and the gremlin >> that's true all right. still ahead -- >> there it is

>> there it is, the gremlin. still ahead, we're wrapping up our "watch this space" series. we'll discuss the biggest opportunities for space investment and the potential pitfalls with xprize founder peter diamandis. and later, netflix and chill. it's a big weekend for the entertainment world with "the irishmen" taking over little italy, "frozen 2" hitting theaters l scs athe"csilong bell" returns. ♪

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welcome back to "closing bell." let's turn it over to mike santoli for his third dashboard of the day mike >> morgan, the headline indexes have been telling a pretty good story, down less than 1% from their highs, going pretty much sideways, but the message of the mass of stocks, that kind of broad collection of names, somewhat different a little bit of a divergence that people are watching right here in blue, this is the net number of daily new highs so it's number of new highs minus new lows obviously, it's kind of faltered it's sort of got to the top of this range and this pull back. this is as of about a day ago and shows you that the market, the index itself has continued higher that's a little bit of a cautionary sign. it shows you there's kind of this pull of profit taking and tax loss selling a lot of names not participating. however, i want to point out that we've gotten to these

points before where it's reached a ceiling in terms of net new highs and it's trended a bit lower, where the s&p has managed to go higher, 2016 and '17 it's not decisive about what the indexes do, but it shows you you probably need some good rotation to happen if you're going to have a greater majority of stocks participating to the upside >> and rotations into the right areas, right >> without a doubt, yeah >> the bigger areas -- i mean, health care, for example, starting to carry the load right now. so see if that continues, as tech takes a breather. >> the bears or the bulls -- the bears are certainly going to use this as evidence that something's going wrong. >> because the bulls were saying, cumulative brett is confirming the new highs well, next we are wrapping up our "watch this space" series how to best play the sector and a look behind the billionaire space race we're going to break down bezos, branson, musk's big intergalactic bets with xprize founder peter diamandis when he joins us when "closing bell" returns.

oh, by the way, musk just besponding on twitter to the cyrtruck news. we'll get you that after the break. 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. keep going, keep going. [maniacal laughter] gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold.

go digital. go grayscale. welcome back to "closing bell." it's the video we've been showing all day. the cybertruck's unbreakable glass shattered last night in

demo tesla ceo elon musk just tweeting, quote, we threw same steel ball at same window several times right before event and didn't even scratch the glass. guys, maybe that's why maybe they just kept throwing that ball at the same panel of glass and it started to weaken it either way, it's certainly been the talk of twitter and cnbc and certainly given a lot more attention to cybertruck today. >> you put too much on the pitch. who knows how they -- >> material fatigue. >> right >> could be! let's get a cnbc news update with sue herrera back at hq in the meantime >> hi, carl. hello, everyone. here's what's happening at this hour a former cia case agent has been sentenced to 19 years in prison for an espionage conspiracy with china charge 55-year-old jerry lee was sentenced in federal court in alexandria after his guilty plea entered earlier this year. jerry sandusky has been resentenced to 30 to 60 years in

prison, the same as his original sentencing he was convicted of 45 counts of child sexual abuse in 2012 an appeals court said laws mandate the sentence minimums in place at the time had since changed. sandusky again asserted his innocence. and during his visit to new zealand, prince charles ignored a question about his younger brother, prince andrew the prince and his wife camilla visited christ krurnlchurch, wh authorities asked him from a distance from his brother should talk to authorities investigating the late jeffrey epstein. and here at home, jane fonda taking part in another friday protest calling for a cleaner environment. she has been leading the demonstrations in washington for several weeks, getting arrested during many of those protests. capitol police today arrested actress diane lane among others as they blocked the street you are up to date that's the news update, guys have a great weekend >> you too, sue, thanks. still ahead, up in smoke the president meeting with

vaping advocates and public health groups at the white house today. we'll key inn e othkey vaping meeting with vertical wellness don't go anywhere. ♪ ♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

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it has been a big week here on "closing bell," as we've dug into what could be wall street's next trillion-dollar industry, space! here's what some of our experts had to say on how to watch this space. >> this is a thing that has captured the curiosity and the imagination of many of tens of thousands, hundreds of thousands, and probably millions of people around the world and starting in the middle of next year, we will start to service that demand. >> we see the opportunity in the imagery and analysis >> great growth opportunities are in what we think of as the earth intelligence space, which is a combination of the satellite imagery and the data analytics. >> the president likes to say, rich guys love rockets well, we're giving rich guys, and by the way, private equity and even institutional investors opportunities to partner with nasa in these capabilities >> it is sort of the kind of

quintessential high-value asset that you would want to own for many, many years >> for more, let's bring in our final space week guest, peter diamand diamandis, founder of the xprize, founder of bold capital partners, and author of the upcoming book, the future is faster than you think. peter, thanks for joining us today. >> a pleasure to be here >> so back in 1994, you awarded the first xprize and it was to the company that basically laid the foundation for virgin galactic, which just went public here recently. this whole quote/unquote new space era has been decades in the making are we finally at the point of saying it's here >> when you have real revenues being made and real private companies that are capitalized by investors and venture funds, yes, it's here it's going to same course as we've seen a lot of government programs that become commercialized and people will forget the fact that the internet, which we think of as this massive $1 trillion amazing economy used to

be a government program, right it was arpanet and we built the systems on top of that and entrepreneurs make it cheaper, faster, better, more reliable and boom we have a growing internet economy and i think the same thing will happen with space. we're going sfrom a government program to entrepreneurial opportunity on the high frontier >> i hear this comparison to the internet a lot there are so many different companies mushrooming up right now, focusing on so many different aspects of the sector and different industries where do you see the biggest opportunities? >> so space breaks down into the following categories communications has always been one of the most profitable segments in geostationary orbit. we're about to see a new generation of satellites one web, my friend, greg weiler's company, o3b, we've got starlink, we've got kuiper to spacex, kuiper is blue origin. these are going to be tens of

thousands of satellites blanketing tether, giving us global gigabit connection speeds everywhere there's another business which is earth imaging, where we're going to have hundreds and thousands of satellites imaging the earth at sub-meter resolution and meter resolution, seeing where cars are moving, seeing in infrared, which buildings are not properly insulated, seeing all kinds of things imaging is a company is called planet labs or planet, which is doing an amazing job and then it's going to be passenger travel and then resources, you know, metals, minerals, energy, real estate, everything we hold of value here on earth, near infinite quantities in space. >> so peter, when you look at -- we have, there's been xprize awards, but overall, to get to this point, a lot of it has been funded by billionaires and i think a lot of the reason is that it takes time, it takes a lot of capital to be able to get to the point of having a self-sustaining business now we're starting to see venture capital and wall street

come in here, as well. what do investors, some of these newer investors to aerospace need to know or need to be aware of in terms of the risks in this sector >> so, yeah, we're finally at a time, like you said, where venture capital is coming in because it sees a profit potential and we're seeing large co conglomerates, sovereign wealth funds coming in as well as wall street so if reality is it is still a bit of a lumpy business in the long-term, it will smooth out. i mean, we're going to start to see virgin galactic with spaceship 2 making regular flights. they have a large backlog of people like myself, who are clients, who want to go. and those first flights will beget interest from other people but up until now, space has been, you know, a dozen events per year, 20 events per year you know, we'll see in some of the experimental systems, we just saw with star ships, with elon's starship, there was a small failure in a demo version.

and it's important to realize that a failure in one system, from one company does not relate to another system. these companies and these systems like falcon 9 has become an extraordinarily reliable launch vehicle, as you fly them more and more, and the more you fly them, the more data you get, the more robust you get and the more we can start to count on them and build businesses around them >> peter, if we consider branson, bezos, and musk sort of team usa for lack of a better word, who's on our tail? >> so, without question, the chinese see space as a massive frontier you have to remember that over the next 20 years, we're going to make humanity multi-planetary species. and the reason that we speak english here in america and why -- i love this ---linga franka is english around the world, that the uk had the

exploring ships and became the exploring nation, in portugal with brazil and so forth so we're on the precipice of us moving into space, going permanently to the moon, going to mars, going and creating colonies in space. and the quo is, which -- you know, which companies and which countries are going to lead that way? 50 years ago, it was the soviet union versus the united states i would say today, it's u.s. as a government and private companies, with chinese companies that are trying to mimic what spacex has done, with reusability, following soon thereafter >> peter diamandis, thanks for joining us check out his upcoming book, "the future is faster than you think. >> thank you president trump meeting with vaping industry and tobacco executives at the white house today amid a heated debate on how to tackle a teen vaping epidemic let's bring in eamon javers at the white house for more on this story. eamon? >> reporter: yeah, morgan, the debate around the country has been heated. the debate inside the white

house today was heated, as well, as some of the industry executives clashed with health advocates and others the surprise guest here was mitt romney, who attended this. the senator from utah, not necessarily seen as a trump ally, but sitting side by side with the president romney clashing a bit here with some of the vaping executives and advocates in the room, saying, this is all about children's safety. here's what he said. >> they're not going to all go out of business because they can't sell flavors they're not all going to go out of business. some may, that would be unfortunate, but some may. if there are 50,000 full-time employees, you've got 5.5 million kids you're talking about a hundred kids addicted for one employee typically minimum wage i put the kids first, all right? it's over a hundred kids per full-time equivalent employee. >> so interesting to watch this in realtime. cameras had access to about an hour of this meeting one of the vaping industry executives told the president that mayor bloomberg is

sponsoring the vaping opposition and bloomberg's no friend of the president, he might run against him as a democrat next year for the presidency, clearly trying to appeal to the president on political grounds there. some of the health advocates arguing back saying, hey, mr. president, we like the idea that you put out back in september that the white house has now seemed to maybe back away from a little bit they're suggesting you were right the first time, sir, so both sides here really trying to appeal directly, personally to the president, to try to win him over not clear where he's going to land we said at the end, though, we've got to protect the kids, guys >> eamon, it sounded pretty sacrifi spicy. joining us now is smoke wallen, ceo of cannabis and hemp brand company, vertical wellness smoke, thanks for the time this afternoon. >> thanks for having me. >> some of the headlines that came out of it, according to the president, saying that he looked back at the era of prohibition and found that bans result in more illegal use it does sound like the vaping industry got something out of this meeting >> reporter: yeah, for sure.

and look, i mean, i came from the alcohol and beverage industry before i got into the hemp and cbd business. and we know what the great experiment, the prohibition resulted in. it criminalized america. and it didn't work so the idea of just like banning stuff is probably not the right path but obviously, we all care about kids and we don't want them to be using these products, but a regulated market that's in the open is probably in everyone's interests. >> is the industry ready for a hard 21 minimum wage and enforcement that we've not seen before >> yeah, look, again, i came out of the alcohol and bench industry we lived with the 21 and over age. and i think that's a logical, sensical approach to it. you know, we're growing hemp, so i'm in the hemp/krcbd business, which is on the periphery of this whole discussion. but based on your last discussion, i'm thinking about growing some hemp in space, by

the way. >> oh! i think there's definitely some experiments going on around beer in space so we'll see how that one goes >> smoke, to go back to -- i realize that the focus today at the white house was on teen vaping and the crackdown there, but we have seen this health situation, this health crisis that's transpired around vaping as well. and largely linked to the black market do you expect that there's going to be more regulation or more discussion, more focus on how that plays out, as well? >> yeah, of course everyone obviously feels for the victims of this and the tragedy of losing, i think, we're up to 67 lives and a couple thousand people that have been injured by these products but so far, everything's been attributed to black market products and for me, it's a case for a regulated market to have a clear, regulated

market where everybody knows where product is coming from and you're not buying from illicit market and the idea that you can buy these different oils online and fill up your own carts, that's got to go away we've got to educate these kids or consumers in general not to do that and to buy from a regular utili regulated product. for example, we've worked with a company called "solseolo sciencs which tracks every sku and you can do a qr code and scan them and you can know exactly where that product came from and it verifies it's a legitimate product. the black market is the problem here, so i'm glad there's a good debate and i know there are lots of sides to the issue, but for sure, a regular utilitied market is in everyone's interest. >> we're in pa weia weird time just this week, house judiciary passes this bill to decriminalize marijuana at the federal level. so there's a lot of layers going on >> oh, for sure. and look, what we're seeing is,

you know, what our grandparents, i guess, experienced during prohibition, there was a big debate, they repealed prohibition. but the only way to do it, because there was lots of disagreement, lots of different opinions and the only way to repeal prohibition was to let each state regulate the alcohol within their borders, right? and that's really what's going to happen most likely with the cannabis world and we've already got 33 states that have legalized cannabis and 11 states that have gone rec legal. and this genie is out of the bottle, it's happening the appropriate approach, i think, is local option, which is allowing states to choose their rules within it. but there's got to be some federal overlay that protects people, right? so that there's ingredients that don't belong in products i mean, one example, you know, we had a great discussion with a bunch of hospitality people and one of my friends said, well, i've been buying from dime bag donnie for decades well, dime bag donnie buys weed from the black market and it's got a thing called eagle 20, which is a compound that's in

lots of, you know -- it's in fruits and vegetables, but when you burn it, it creates cyanide. so you don't want to vape it or burn it. so having a set of rules that everyone follows, i think, is in everyone's interests again, for the vaping thing, for cannabis in general, and it's a progress for the country to move forward. >> smoke, thank you for joining us today >> thanks for having me. up next, it's a wise guy's takeover netflix is pulling out all the stops to promote the streaming debut of "the irishman." contessa brewer is live for us in little italy. contessa >> reporter: you come down here and all you hear about is jimmy hoffa's disappearance. they're even handing out newspapers netflix is taking over little italy. and just in case you were thinking about getting an early start on your friday and maybe walking out the door, eh, rgfoet about it we'll be right back to explain what's behind this immersive marketing push

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♪ ♪ let it go ♪ let it go just when i thought i had escaped that song, it is a big weekend in the entertainment world. netflix's "the irishman" taking over five blocks in new york city's little italy ahead of its streaming release. contessa brewer is standing by with that story, but first, "frozen 2" hitting theaters and

julia boorstin is betting on it bringing in the big bucks. >> reporter: this theater may look empty, but it is packed inside with hundreds of people watching "frozen ii" and disney expects the opening day of "frozen ii" to bring in 40 million at the domestic box office, that would put the film on track to gross between $110 and $120 million in the u.s. this weekend no animated movie has ever topped $100 million outside the summer now, this is expected to be disney's sixth movie this year to top $1 billion at the worldwide box office, and "frozen 2's" success is so important for disney plus to reinforce the value of the brands that disney is putting on that platform. guys, back to you. >> let's head over to new york city, meantime with netflix's "the irishman" has literally taken over the streets contessa brewer is there with that

contessa >> so netflix hired invisible north to take over little italy and turn it to 1975, when jimmy hoffa disappeared. this is all promote netflix's film "the irishman," which has limited release in movie theaters, but it gets posted to netflix on wednesday they're working with 11 local businesses to hand out freebies. so what happens here at the oldest tea shop in america is that you come in and you say to the people, hey, jimmy sent me, and they hand you a rice ball. the thing is, they've had so much foot traffic here that they ran out of rice balls. they had to move on to mozzarella sticks. and all day long there's been crowds of people this is really about deepening brand engagement and loyalty maybe signing up some new subscribers and netflix says making it fun for their biggest fans guys >> contessa, i hope you've been getting to snack all day today i'm curious, though, i see there's a lot of folks -- i see there are a lot of folks around

you. i'm assuming some of them are there as part of this experience what is foot traffic of actual visitors been like >> this is -- it's been a very crowded day and a lot of people have been coming down, holding up the map of the neighborhood here, and knowing that they were going to be in for some freebies down here. but listen, morgan, one of the big fans here, netflix subscribers said, this should have been in movie theaters across the nation. i'm really disappointed by this, but she came down and enjoyed the experience anyway. and that's what netflix says this is all about, which is creating something experimential for their subscribers. it's a value add >> contessa brewer, thanks for bringing this story to us. it's really fascinating. still ahead, hong kong's election set for this weekend. what's at stake ahead all of the protests and turmoil that's when "closing bell" comes back it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind,

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let's get to santoli for his final dashboard of the day and the week >> that's it, carl yeah going to drill into pocketbook issues had a bit of an yup tick, the consumer sentiment pretty sharp rebound starting to look like a lot of

the indicators, macro consumer and industrial did have an overshoot to the down side picked up a fair bit this separates the current conditions from the future expectations that's the green line there. still a pretty wide goal but something that happens later on in cycles, people say everything online, it's fine. you still obviously work the highs for the cycle. if you look ahead of the previous recession, there was a much more pronounced down trend before you actually got into recession. still looking fine the one thing i point out is you go back to 2006 and you have a -- 2016, another one of those v-bottoms. that's the analogy everyone wants to use. >> that spread is one of gunlack's indicators. >> exactly. >> it takes a while to kick in >> it does the ratio of the consumer confidence index to this index, there's a lot of play in that, too. tells a similar story. >> certainly important stat as we go into the holiday shopping

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hong kong's election takes place this sunday. kayla tausche is here with a bit of what to watch. >> reporter: these are the first elections after massive pro democracy protests began the elections are seen as a referendum on the protests and whether the pro democracy message bears out at the polls there's a silent majority supporting their hard line stance president trump said we have to stand with hong kong but i'm also standing with president xi. he's a friend of mine. he's an incredible guy it's unclear whether president trump will back a bill that supports the protesters and whether the violencewill support the protestors carrie lam can cancel the election 24 hours in advance. >> kayla, i wonder if you think

him signing that resolution into law impacts trade talks or not. >> it seems that the white house has tried to introduce new bargaining chips for the president to bring to the table. the white house has been mum on whether he will, in fact, sign it that's not usual in the case that the white house does support something. so we'll see how he decides to proceed there. hopefully in the coming days >> kayla tausche, thank you. mike santoli, just taking a look at where we finished the day on wall street here major averages all finished higher they're lower on the week. >> yeah. >> 1/3 or half a percent lower depending on the index of the week there has been minimal damage at all to the major indexes it's all about i think a lot of the atmospherics around the market non-u.s. indexes performed after leading off the august lows. value and cyclical stocks have come in. semiconductors off the highs treasury yield curve all week for more than a week has been

flattening again the question is is this just an adjustment we kind of overshot a little bit in the initial rally off of the august and october lows or is it really still kind of a muted backdrop to a market that is still pretty fully valued. >> goldman returns this year likely would not have been possible without central bank support what do you make of the argument that this whole run we've seen for seven weeks has been about the balance sheet expanding. >> i don't believe that about the balance sheet expanding. i do think the net number of central banks in easing mode and the fed saying the threshold for rate hikes is very, very high. that's all part of it, absolutely i think the balance sheet, if it's working in that direction, it's purely psychological. and i think that was a lot of what qe was as well, but psychology is what, you know, determines the market's pe multiple so it's not insignificant if that's what's going on. >> next week pvh, best buy,

deere. earnings are slowing down but not done by a long shot. >> all right thanksgiving, too. holiday week expected lower volumes, right, mike >> lower volumes but i think the friday, you know, people actually pay attention to how the markets end. >> yeah. >> major highs and lows. >> that does it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city's time square this is "fast money. i'm melissa lee. it's tim see more, brian, 10% over the past ten months they give us the favorite names in the space bright spot in energy. the chart master has one name that's poised to pop the one chart that caught tim's attention this week. he'll tell us what it is we kick things off with a bang >> oh, my god. >> the expletive tesla shares like the window of that trurk getting