>> very quick answer, plant-based foods, meets, you experimenting there at all >> we're looking at it it's obviously something that the consumer really wants and so we're talking to our suppliers about what the options are, whether for rotisserie chicken or meat loaf or meatballs. >> frances, thank you very much. happy thanksgiving >> happy thanksgiving to you as well >> thanks for watching "power lunch" >> virginia beats virginia tech. >> no way! >> "closing bell" starts right now. welcome to the "closing bell." i'm court aney reagan in for s h eis eisen. at the best buy post, shares are rising it's been a very busy season of earnings some winners, some losers. we'll dig into some of them, coming up. we've got 59 minutes left to go before the closing bell sounds >> good afternoon, everyone. i'm wilfred frost. prrp says the u.s. is in the, quote, final throes of its trade

negotiations with china. mixed economic data as consumer confidence falls, but housing market remains mostly steady and disney rallying on two positive notes, which has helped them propel the dow higher. we are on record high watch once again for the major indices. joining us for the hour, barbara duran from bd8 capital partners. barbara, how do you feel as we sit at these record highs. can we hold this momentum through the rest of the year >> i actually think we can normally, i've been very skeptical. i really thought we would just be in a trading range and unlikely to see new highs. but i think we've got one or two new highs left and it's not just optimism over the china trade partially being resolved i think it's also, unlike last year where people were rushing for the exits, i think this year, they're rushing to get in, because you've got the performance issue. the market is up so strongly and i would suspect most active managers are underperforming here >> barbara is with us for the full first half of the show. kayla tausche has the latest

courtney is going to dig into the tariff impact on retail. and joining us to break down today's economic data and outlook for next year as well. ian hasias let's kick off with kayla on trade. >> the u.s. and china continue to edge towards, but stopped short of solidifying that phase i deal the two sides held a principle-level call on friday night and elaborated on by china's commerce ministry, which in a translated readout said this quote, the two sides discussed how to resolve each other's core concerns, reached consensus on how to resolve related issues, and agreed to maintain communication on the remaining issues in the first phase of agreement negotiations although that is inconclusive at best a person briefed on the call said the two sides did discuss the timing on removing potential tariffs, but the two sides did not finalize what that timeline would be wilf and courtney?

>> thank you very much, kayla. several retail ceos sounding off on how tariffs have been impacting business >> this has combined our teams to really negotiate in a different way, look at the value of the product, look how we pack the product to go into ocean containers, so it lands cheaper in the u.s so that tool kit is there, and yes, there's a margin there to be had if and when tariffs go away >> we've got about $500 billion of goods that are going to be tri tariffed it's going to have an impact on the consumers. i think we can all manage it in the short-term with the hope that it would resolve, because you could put pressure on your vendor base to do certain things but long-term, it's got to work on both sides. so it clearly will result in higher cost for the consumer, which is not good for the economy. >> best buy ceo cory barry is a little less worried, at least about the uncertainty surrounding the tariff impact this year. and it's part of the calculus that went into the increased full-year earnings forecast that

was given today. just last quarter, best buy was expecting a broader consumer spending slowdown as a result of higher prices from tariffs, but barry said the consumer has held on economic data pointsremain fairly positive and most retail groups expect holiday sales growth so together, she said, on a media call, it's giving her more certainty in the forecast for this holiday season. and best buy is one that could see a big impact with about 60% of their cost of goods sold sort of eligible for these possible tariffs, should all of the ones that have been stated go into effect >> so december 15th tariffs would obviously knock their share price if they did come into practice, because they're certainly not priced in the market, as a certainty at this stage. but in general, when you see a company like best buy, who on their earnings calls have sounded quite significant in terms of caution, the reality has been much less bad than feared >> i think that's exactly right. i think that things have been much more fearful than reality has turned out to prove for many of these companies, at least in 2019 like you said, there's still some uncertainty about what

happens december 15th and then what happens in 2020 beyond that but so far, the mitigation strategies have done a fairly good job of cutting out those extra costs for now. >> so bob, when you're picking consumer stocks, do you now kind of park the issues of tariffs and china trade to the side and focus more on the fundamental what this company is selling and what it's selling it well? >> well, it's been 18 months of all of this trade uncertainty. so i think everybody has had enough time to look at the stocks that have been most impacted a lot of the ones that have huge sales or earnings are the biggest companies and they have the most ability to pressure their suppliers, they can eat the costs. there's lots of ways they can do it the question is going forward, how well will they be able to do that when does it catch up. and another round, if this falls through, i think we'll see a very negative reaction in the market overall but we know, as we know, the biggest impact has been in the manufacturing and ceo confidence

the global supply chain is being totally disrupted. >> some mixed retail performance as you can see there today best buy and dollar tree moving in opposite directions the broader markets up about 34 points on the dow that's despite relatively weak economic data that came out this morning, showing consumer confidence falling for the fourth straight month and new home sales dropping by 0.7% in october. let's bring in goldman sachs chief economist. great to see you thanks for joining us. >> good to be here >> first of all, let's focus on today. what was your take on the data >> it was mixed. the sales numbers have generally been pretty encouraging, if you look at all of the housing indicators, i think we're really seeing some signs that the big drop in mortgage rates is kicking in in terms of boosting housing and maybe morebroadly, easier financial conditions are helping. but the consumer confidence numbers were somewhat softer the richmond fed numbers were somewhat softer. it was a mixed bag, but i think the housing theme is important.

>> does that give you a little bit more pause for concern >> it wasn't big enough to really move the needle in my view in general, the conference numbers have been fairly steady at a very high level there have been some ups and downs, but overall, the consumer is in very good shape and clearly the strongest part of the economy, if you include the housing part in that as well >> your latest detailed report, a break in the clouds, the title kind of says it all, that you do expect growth to pick up again next year, but led more by europe than by the u.s is that right? >> we're expecting sequential acceleration in the u.s. as well, and your average growth next year in the u.s., probably pretty close to this year, 2.25%, or so but that probably ends it a bit, because we're ending 2019 on a low note and we would expect some acceleration as we move into next year but also, an acceleration in europe is definitely part of our forecast europe is also ending on a lower note and, you know, from lower levels than in the u.s., but

nevertheless, we're expecting some pickup there, too >> so those recession fears that had crept into the market earlier this year are gone if you see an acceleration from here is that your view? >> that is our view that the risk of recession is lower than i think many market participants and forecasters have said. there has been a lot of concern about the inverted yield curve or the at times inverted yield curve and still flat yield curve. but i do think there have been some changes in how fixed income markets operate, so that you can't simply take the current slope of the yield curve and translate that into a recession. the term premium at the longer end of the curve, i think, is lower and partly for structural reasons. that basically means the yield curve should be structurally flatter and inversions should be more frequent, but also a little less meaningful. >> bob, that kind of outlook for next year, does that maintain confidence that you had for the rest of this year and equities

for next year, as well >> yes, because my concern has been, you don't have a lot of earnings visibility. and the market obviously has gone to new highs, dozens of new highs this year. so what does that mean for next year but the fact is, the fed did cut rates three times and that is a big lag effect, which has to probably part of your forecast, that that will start to -- that does support the market and supports earnings. >> and a more random question for me, which is that if and when the next big recession were to hit, say it were to hit today, which of the major economies would have markedly less firepower to address that this time around compared to the last financial crisis 11 or 12 yeerl years ago? >> well, certainly, europe and japan would be in a much tougher spot, because interest rates are already negative and while they could probably cut them somewhat further into negative territory, the impact is probably not going to be that large europe could and we think should ease fiscal policy in

particular, germany. so i think there is quite a bit of firepower there in principle, if the polls make us choose to use it but on the monetary policy side, which is really usually the first line of defense, there is much less room available there than in the u.s., which you at least still have 150 basis points of conventional easing capacity >> does china still have a lot of flexibility clearly after 2008, they surprised the world with how much they can support growth there. can they do that again or not? >> i think they can. the issue there is a little bit different. they, in principle, still have room to boost credit growth and they can cut interest rates. they've been reluctant to do that, though, because they were worried about financial imbalances that's a very different sort of situation from the major advanced economies, where private sector financial imbalances don't really look like a major threat. we had our big comeuppance, if you will, in the 2008 crisis

but there's just less room than there is in china to provide stimulus, you know, even if you decided you wanted to do a lot more this is less of an issue in the u.s. and more of an issue in japan and europe >> before we let you in, how does your forecast factor in a 2020 election? who's in the white house >> it's still almost a year away, so we're not making assumptions about what's going to happen in the election. it's way too difficult to tell i mean, i do think that as we go into 2020, of course, especially post-super tuesday, you know, as we get ready for the conventions over the summer, it will become a bigger issue but our expectation that we'll see some acceleration is really driven by other factors. the easing and financial conditions that we've already seen, that you're seeing, for example, in the housing market the end of the inventory cycle, which has been weighing on the manufacturing sector, really more than these election-related

issues >> a lot of topics covered thank you for joining us here today. >> thank you we have a news alert on soul cycle. contessa brewer has those details. >> hi, courtney. soul cycle ceo melanie wheelen is resigning the company won't elaborate on a reason, but a source tells cnbc's make it that both sides that it was time for a leadership transition. wheelan was first coo and then chief executive officer. she will resign her director position as well soul cycle has 95 locations. its privately owned by the related companies and a search is on now for wheelan's replacement. wilf >> contessa, thanks very much for that i wonder whether peloton's growth and threat has something to do with it. still ahead, social media sensation tiktok has reportedly racked up more than 1.5 billion downloads worldwide, but that growth has come with a source of controversy around the chinese-owned app. and ahead, we have the first interview on cnbc with an

executive from the company and later, tesla and ford could be heading to a toe-to-toe showdown for pickup truck suprac 'lbrk down the flatbed feud, ahead.

just about 44 minutes left to go here we are on record close watch for the major averages any close higher on the dow, the s&p, or the nasdaq would do it we hit those record highs yesterday. let's get a check on an individual market mover. shares of palo alto networks falling after reporting results yesterday after the bell the cybersecurity company beat on earnings and revenue, but is under pressure today, following weak current quarter guidance that reflects increased expenses that stock, as you can see, down by almost 12%. >> let's get over to mike for today's market dashboard hi, mike >> hello, wilf good to see here, here's what we have today don't stop the world people having too much fun on this market, even talking about melting up together. what are the prospects there the safety dance, the interplay between equities and corporate debt shows you the credit markets are protecting stocks right now. one way or another, really coiled up charts in energy, oil, and energy stocks. see which way they might break from here. and the land down under is

tracking the fed's undershoot of inflation. take a look at the s&p 500, two years, i love the two-year chart. it really encompasses kind of all the relevant peaks and valleys that we've had for a while here and one of the interesting things that we've done here is stretch above this bit of a trend line so that's not too dramatic, right? if we want to go a little bit higher we poked above this trend line it's not as dramatic as that one in early january of 2018 it seems like it's really an extension of this rally. definitely getting slightly overbought, slightly stretched, but fog that says the action today is going to put a halt to this rally but look at the volatility it closed above the 12 level for the first time since october 3rd, 2018. it's still kind of extending to the downside by the way, this makes sense market at all-time highs it's been calm we're heading for a holiday period where the market is going to be open only a day and a half for the next five days so obviously, there's going to be not that much jumpiness or

movement but this does not leave the market very prepared for any kind of a jolt, unexpected headline, something on trade, something in the treasury market, anything like that i think you have to say, things look like they're good, but the risk is, people start getting too comfortable and too many people start talking about the market melting up and feeling like there's no way to lose. i don't think we're there yet, but be on alert. >> mike, i, too, love the two-year chart of the s&p. i agree. and looking at the charts in front of me now, clearly year-to-date because of that december pullback last year, we've had an extraordinary run up but even if you look sort of five years out, the breakout of the last couple of weeks doesn't look that severe at all. >> no, it does not, at all it's only about 3% above the prior peak from july it really does look a whole lot like the break in late 2016, when the market had been sideways for a year and a half or so, and there was a very sharp breakout of that zone. that wasn't the end of it. you're absolutely right.

it does not seem as if this has really been kind of scaling the heights for a very long period of time. so that's why i think you still have to get the benefit of the doubt to the market up here. >> okay. mike, thanks so much bob, the other chart, a very low vix. does that concern you? it can often be a sort of a warning sign when things get -- >> it can be, it can be. the thinking right here is if you're wondering if we're all complacent if we're just too complacent right now everybody is feeling good, and we know how human nature is. you think it's going to go on forever. so we're watching for those signs. people have seized on the consumer confidence, but it was really tiny and so far, it doesn't look like a change in the fundamental backdrop so unless -- china is the one -- the trade story is the one thing that could really upstet the cart here. but otherwise, it's really hard to see in the near-term what's going to upset things. >> i was just thinking about last december, we didn't really see that one coming. >> remember the day before christmas. >> yeah. >> not a good christmas present. that's for sure. after the break, raymond

james says some potential internet takeout targets are being left at altar. we'll tell you why, coming up next and later, a rough day for some major pharma stocks as the opioid crackdown continues we'll explain the teeglast lal challenge in today's "market zone."

welcome back to "closing bell." time to get word on the street

are companies like grubhub and yelp lonely at the altar according to raymond james, they are. the firm throwing cold water on potential m&a in the internet sector, saying odds are low giving evaluated competition raymond james would not view grub and yelp as m&a candidates with zpisignificant falls. karen named chipotle as the best idea for 2020, saying its new drive-through format could help it grow faster rising its price target to $970 a share, up 3% today >> so jeffries doing a deep dive into retail, saying data suggests streetwear and retrocycles are past peak. the data is most positive for zumiez and guest, but most negative for urban outfitters and footlocker they also noted this retrotrend might be weakening on its call

on friday. jeffries also mentioning that vann's is showing viability, this as the vsco girl trend gains traction this includes sporting a more nach natural look when it comes to makeup and cosmetics earlier, joe flory weighed in on how the photo editing app has impacted these big brands. >> there's really a space in which people are sharing what they wanted to be and how they were without kind of the pressures of other places. so those brands weren't necessarily a big piece of what you'll see on vsco it's been a part of that trend as it's taken a life of its own. >> so some brands that are winning in this trend, american eagle and urban outfitters, which sale some of those scrunchies that are part of the vsco trend and in addition to vans, there are crocs and private company birkenstocks and since hydroflask are part of

the trend, coca-cola and pepsico could be losers as well as cosmetics companies like estee lauder, ulta, and coty so there's a lot that goes into this vsco girl trend wilf, do you feel like you have a fuller idea of it now? >> definitely not a full idea of it, but perhaps a less empty one than previously. though the thing that stands out to me most of all on this, to joel's point there that you may not have seen some of those brands originally posted in the photos on the app, perhaps the biggest beneficiary is his company. because vsco has become the name of the trend, which gives the app far more traction than it otherwise would have been. >> and i myself had downloaded the vsco app and never opened it until this trend started percolating and i thought, wait a minute, i have that app. and then he got me interested in it >> and the start-up pack there coming up, which is an odd mixture, it seems to me of various products, but there we go >> there we go >> those are the ones benefiting

overall. and vsco app, download it. >> coming up, we have your last chance trade barb's picking a name she says to buy on a current pullback >> plus, would you eat pumpkin spiced spam. >> sold out in seven hours the whole thing! you can't get it 25 bucks on ebay and i've got one and you know what, it's darned good >> cramer. ahead, we'll see what hormel's ceo about earnings, tariffs, and yes, that pumpkin spiced spam. and as we head to break, here's a check on bonds. u.s. fields falling today on the back of weaker than expected consumer sentiment data. the ten-year note yielding around 10.74%. the two-year, 1.590. "closing bell" will be right back servicenow put our workflows in the cloud. this changes everything. you're right sir... everything.

no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

well, just about 30 minutes left to go here are the three things driving today's action president trump says the u.s. is in the, quote, final throes of its trade negotiations with china. we'll see. mixed economic data as consumer confidence falls, but housing

market remains mostly steady and disney rallying on two positive notes, which is helping to propel the dow higher we are on record high watch for the s&p. we closed above that yesterday time now for a cnbc news update with sue herrera hi, sue. >> hello, courtney hello, everyone. here's what's happening at this hour german farmers protesting in berlin today, driving their tractors to the brandenberg gate and blocking traffic the protest is against the ja e german government's new restrictions on the use of some pesticides >> and protesters protesting the change on the u.s. position of settlements in the west bank at settlements, protesters hurled rocks at israeli forces who responded with tear gas. rescue workers still searching for a missing person following a partial building collapse in cincinnati on monday citi officials say four people were pulled from the rubble and

treated at area hospitals. all four have since been released and arnold schwarzenegger is out to terminate holiday hunger, handing out thanksgiving turkeys in los angeles the former california governor is a longtime participant in the event, held every year by the inner city games and hollenbach police business counsel. you are up to date that's the news update wilf, i'll send it back downtown to you >> sue, i'm not sure i should admit this, but where i saw terminator turkey giveaway, i honestly was thinking, is this free tickets to the new movie in ankara >> no. >> no joke i don't know how i managed to think that >> nope, he does it every year >> there we go sue, thank you very much >> you got it. let's send it over to mike santoli for the second installment of the market dashboard. >> so safety dance is one way to put this this is the way the credit markets are really underwriting the strength and protecting equities from what otherwise

might be high valuations this is a chart of the s&p 500's free cash flow yield when the free cash flow yield is high, it means stocks are relatively cheap that's in blue then we have the triple "b" corporate debt yield in orange, and that actually has been relatively steady but also very favorable. look how low it is right here, just above 3%. now, when this spread is very wide, stocks look extremely cheap relative to bonds. that was the case right here, 2011, 2012 but also, by the way, here, and guess what, when they were close to each other, late 2017, early 2018, that was when the market got very rich and we peaked in an important way, january 2018 here you see, pretty wide spread again, because the bond yields are stubbornly low right now even though stocks on an absolute basis do not appear inexpensive at all, relative to other parts of the capital markets and capital structures of companies, they still look okay from here this is a relationship that you would absolutely want to watch and the bottom one is going to come up, if you get treasury yields higher andspreads on to of it. so benefiting right now from

those very low yields, guys. >> mike, i totally get the point, as you say in early 2018, those two lines converged in a relative sense as this chart shows, so it showed stocks get expensive. if you look over 30 to 40 years, would there be times when the orange line goes well above the blue line? >> absolutely. >> ie, stocks have essentially remained traf throughout this period regardless. >> there was a kind of a regime shift. it was really into the 2000s when that happened back in the '90s, very consistently, you had the earnings yield and the free cash flow yield of stocks that was below not only corporate debt yields, but treasury yields for long periods of time in aen absolute sense there, you have a less-rich market right now. the question is, was that an outlier and would you ever get to that point again during this cycle? we don't know. well, companies are waiting longer to go public according to new research from the car tlolye group. joining us now to discuss is jason thomas, director of

research at the carlyle group who is out with that new report on private investing jason, thank you so much for joining us this is not so encouraging for some of these private companies that are looking to go public. >> i think there's actually quite a bit of demand for ipos the issue is theissuers. it's the companies that are deciding they would prefer to remain private i think that's an important distinction. if we look back 25 years, companies with over $500 million of market value had no choice but to go public if they wanted additional capital and liquidity for their founders today there is a choice, and it's a choice to go with private capital instead. and because of that avenue, you've seen a shrinkage of the public markets, down by 55% over the last 20 years in the u.s. and globally, and yao seen a 75% decline in ipos. and i would attribute that decline to be attributable to the issue side >> and the offsetting statistic to that which really stands out is the enormous growth in the

total amount of private capital. >> exactly and so it's extraordinary growth in private capital, but i think what a key message from the carlyle research report is that it's not so staggering when you consider the growth in the number of companies that are private. so today, there's about 8,200 companies backed by private equity in the united states. that's twice as many companies that are listed on public exchanges in the u.s so that gives you some sense of the relative proportion. if we were to go back 20 years ago, public companies in the u.s. were four times as numerous as those backed by private equity so again, i think that helps contextualize the growth >> we've clearly seen a big growth in the private equity industry and we've seen perhaps a bit of a shrinking and certainly some consolidation in the active asset manager in a public market industry but maybe not to the extent that you would expect given the statistics we just spoke about in terms of thecompanies to invest in. and very different skill sets are needed to invest in those two areas. so what is the takeaway from

that is there anything going on underneath within the industries that we can extrapolate from >> i would say on the private side, there's much more focus on growth, on underwriting for growth, on being able to deliver growth that means industry expertise, more fundamental research. also, expanding geographic reach and just again being able to deliver growth platforms on the public side i think that there's a sense that what people want are passive allocations, but it's passive allocations to a greater number of indexes. the number of indexes to which you can gain exposure in public markets via passive vehicles has absolutely exploded. and that's the main driver of the increase in aum that's managed by etfs and passive vehicles more broadly. >> how are you evaluating some of these ipos when the performance has been so divergent for some of these names. >> it has been well, it's interesting, because it really depends on the market cycle. because so many of these companies that do not have earnings in a different type of market would be fine,

particularly if you can see profitability a few years out. but it's been very clear this year that companies that don't have earnings for a while, their business model is just going to spend, spend, spend, are not doing well and so now, when you're looking at ipos, you've really got to see a path to profitability. so it's -- i think it's really been a bifurcation this year, but a function of the markets. and consumer appetite. >> with fewer ipos involved, the average from 1980 to 2019 is 60%, but in 2019 in the first half, only 17% >> yeah. >> exactly and i think it's -- it's quite remarkable, because these are businesses where it's not just running a small deficit or operating a deficit, but actually, on average, $4 billion of enterprise value with an average operating earnings deficit of almost $100 million so really very deeply into the red. >> jason, fascinating stuff. jason thomas, thank you for being here >> thank you well, here we have just about 23 minutes left to go before that "closing bell" sounds we are on record close watch

so any close higher on the dow, s&p, or nasdaq, it would do it up next, we have your last chance trade barbara is looking at a stock that 98% of analysts say it's a buy. and pot shops feeling the heat as the fda issues a new warning about cbd products we'll take a look at how to play cannabis companies later in the show >> announcer: cnbc sector sport is sponsored by sector spyder etfs ♪ ♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

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

well, here we have about 19 minutes left to go before that closing bem soundll sounds. barbara, what is your last chance trade >> my last chance trade is not exactly undiscovered, it is amazon but i thought it was worth calling attention to it because it's been languishing since the summer it's 15% off its highs and it initially seemed to be a rotation out of f.a.a.n.g. stocks then they reported numbers in october. and even though they really beat revenues by a nice amount, the profits really stunned people. they were really down. and so people said, well, my god, we're back to, when will

they make money? >> the fact is, they had to make big investments on the public cloud side with marketing and sales, they had to make big investments for the one-day prime. and that was, you know, whether it was shipping and fulfillment, but those are really driving the incremental business and over the long run, these investments will pay off and i think you'll start to see an increase in free cash flow and profitability some time next year for amazon. and also, key thing, it always pays to remind people, this is -- they are market leaders in two big secular trends and that's ecommerce and that's the public cloud and by most estimates i've seen, that's only 15% penetrated on both sides there's a long, long way to go here >> if we slightly crudely put company specifics aside, is it worth taking some profits in the likes of apple and microsoft to have bounceback and hit record highs recently and putting it into amazon or not that direct trade-off? >> those are great names see, i own all three names those are core holdings. so i would say, i wouldn't take

it from apple, the apples and microsofts, because they're going to have long runways of growth as well so you're just taking -- you're just paying taxes on profits from names that continue to go up so i would take it from somewhere else if you want to add to your amazon >> we have a little-known company called amazon as bob's last chance trade today. we have 17 minutes left of the session. anything positive is a record all-time close for the dow s&p or nasdaq. and as for now, we are set for slight positive gains on the day. up next, uninterrupted coverage of the final minutes of trade. we'll take you inside the market zone when "closing bell" returns. gold. gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold.

go digital. go grayscale.

you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. 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.

we've got just 13 minutes left in today's trading day and we're into the "closing bell" market zone. commercial-free coverage of all of the action as we head into the close. >> cnbc senior markets commentary mike santoli is here as always to break down the crucial moments of the trading day. and today we've still got barbara duran from bd8 capital partner. she'll stick with us through the market zone as well. best buy put up a strong quarter, revenue also topping forecasts. comparable sales up a better than expected 1.7% and an increase in the full-year earnings forecast as well. ceo cory barry told me on a media call that the uncertainty around the impacts of tariffs from last quarter is a bit more certain that we're closer to year end that's not the case for dollar tree while the retailer also beat profit estimates on stronger than expected revenue with comparable sales growth, it took down its earnings and revenue forecast, which now account for

the impact from tariffs as well as margin pressure from lower smarng consumable products that segment is growing faster than originally forecast, pluz higher distribution center payroll and other expenses, sending shares of dollar tree markedly lower by almost 17% barbara, what do you think of either one of these two stocks here would you look at one of these >> dollar tree, i'm certainly going to look at anything down 17%, you would say, what's going on here? so that is on my list of things to do. that's an -- it seems on the face of it, an extraordinary overreaction best buy is something i don't own, but i wish i did. this was, some years ago, really a commoditized business. their competitors were going out of business, but they have really figured out the formula they're doing very well. i don't own it, but if i had it, i would hold it. >> mike, what's best buy's p\e. >> it's around 15 forward. which is really modest it's valued like a lot of the chain retail, where dollar tree

gets traded. it was above a 20 p\e before today, before it got this big haircut. and dollar general still does trade up there >> in terms of the pivot that best buy has done, it's not the same type of internal strategic change that target and walmart have managed to do, to that extent it's more bounce from a low level? >> yes and no. they've gone through a really big transformation of using the stores and online together in a better way plus, to be honest a lot of their competition went by the wayside in years of bankruptcy target and walmart certainly also sell consumer electronics, but if you want expertise, you go to best buy, and they've carved out that niche as well as getting rid of some sort of the fat when it comes to expenses. >> shares of disney hitting an all-time high today. let's get to julia boorstin for more hi, julia. >> reporter: disney shares rising today on consumer edge initiating coverage of the stock with an overweight rating and a

$175 price target, citing early signs of traction for disney plus and the company's digital strategy, saying that disney's fly wheel is working apptopia reporting that their app has been downloaded 15.5 million times. and generating $26 million per session per day. and hulu and espn plus has seen a 15% increase in downloads benefiting from their bundle with disney plus guys >> julia, thanks so much for that mike, the momentum behind the stock is impressive. even -- and the confusing thing now is what multiple does it deserve? legacy business is still a high proportion of earnings than the exciting over the top stuff and investors willing to give it a nudge towards netflix as opposed to towards cbs >> i think right now it is trading off of the speed of adoption of disney plus. so in other words, just how quickly can it basically get up

to, you know, somewhere within hailing distance of netflix's penetration domestically and around the world but also, by the way, this weekend, there was a reminder that the studio business manages to turn out a hit, too there's all kinds of reasons i think a buyer can justify owning disney at these levels yes, it's definitely getting expensive. and there's not a lot of cushion necessarily, but, you know, all the things that it's now trading off of, which don't include earnings growth for this year. >> as mike said, i think it's hard right here, but what was interesting to me is that the hulu and espn downloads was up 15%. that's also been a question. to support those two, they'll have to spend more dollars i think in the short-term, disney does go higher. but at a certain point, i don't know if that's first quarter next year, they'll look ahead and say, they'll have to spend a lot of money on content if they want to keep this going. so for now we're okay, but at a

certain point, it will be okay we're fairly valued and that's not an issue zplp by the way, $5 million in revenue from those downloads. that shows you, this is more about getting people in the door, get the subscriber ship numbers up, and you figure out whether you can scale into a profitable business model later. >> they have much more ammo as well to pay for more content whether it's iin ining cash flo s. >> they have only 600 tights to netflix's 6,000s the food and drug administration is updating its stance on cbd oil. >> we just heard it. the fda warning that cannabadial has the potential to cause liver damage or increase the feseffec of alcohol or other drugs, as well though the product has been marketed as nonintoxicating. the fda has disclosed that they

have warned 15 u.s. companies they are illegally distributing cbd products charlotte's web, which really focuses on cbd, down 8%. cannabis companies saw the cbd market as an entry to states where marijuana is still illegal and jeffrey's analysts argues the industry estimates have been too high given there's so much regulatory uncertainty here, guy guys >> barbara, is this an opportunity worth taking a risk or -- >> you know, i had bought some for my dog, and i looked online and there's hundreds and hundreds of choices. and as you know, if you've looked into the pot business at all, it's the wild west out there. so what i think it does, it should be incentive for the federal government must pass, must legalize this so we can get going and do tests and regulations, because a lot of

people take this because it's been marketed as harmless with no evidence. >> i don't quite understand how the fda has been so reactive as opposed to proactive on so many areas here it frankly beggars belief. but better late than never we've got six minutes left of trade. drug makers falling today on a report that federal prosecutors are opening a criminal probe of opioid manufacturers meg terrell has got more for us. meg? >> hey, wilf, it's a case of a negative headline rattling these stocks, but we already knew these companies had received federal subpoenas about their role in the opioid crisis. federal prosecutors are looking into whether the companies violated the controlled substances act, normally used to go after drug dealers. i spoke with bernstein analyst ronnie gal said he was surprised the stocks had moved so much and they were moving higher over the past month in hopes for relief a reminder, guys, this saga is far from over. back over to you >> mike, going to be more headlines.

it's hard to judge how much is already priced in. it's one of those things where resolution is really the only longtime -- >> right there's some measure of headline risk, what's interesting is it's coming at a time when there's massive rotation into general health care stocks it's mostly been concentrated in health care buyers, the insurers, and biotech, not so much big pharma, they participated as well that's one wrinkle in that segment of health care that's going to make it a little bit less seem like a sure bet. >> with the broader markets, just under fyi minutive minutese just hit a dow intrasession high, up 66 points in percentage terms. we're talking about a quarter of 1% today but nice little rally in this final hour of trade that we've seen as well >> and before we hit that closing bell, we're going to check on chinese ecommerce giant alibaba, because it had a successful debut for its newly listed hong kong shares. let's get to deirdre bosa for more on how that went. >> getting a strong start in

hong kong, rising 6.5% in that homecoming debut shares on the nyse gaining 1%. alibaba customers including influencers and merchants, they were on hand to strike the gong. and ceo danielle gong said a return to hong kong was a return to home. the listing itself a major victory for hong kong. one, it was a vote of confidence for the city after months of pro-democracy protests that are ongoing. secondly, it's an indication that reforms implemented at the hong kong exchange allowing founders more control can attract more listings. the question now is will more companies, more chinese adr-listed companies follow? back to you. >> yeah, it will be interesting to see what the answer to that is in the long-term. you feel like alibaba is a special situation at this time and it doesn't necessarily plan a path for many others to follow >> well, there are some restrictions in place. you have to have been trading on a stock exchange here in the u.s. for a certain amount of

time you have to be a certain size, have a certain amount of revenue. but there are plenty of chinese large caps listed here in the u.s. that could be potentially looking at this. at last count earlier this year in february, the combined market cap of all of the chinese companies listed here was $1.2 trillion that is potentially a very large opportunity for the hong kong exchange, which just changed the rules to allow for those dual class shares >> thank you very much broader markets, session highs up 72 points set for record closes. mike has been having a look at the market internals today >> they've actually been pretty mixed. not necessarily tracking deeply positive if you look at the up and down volume in the new york stock exchange, it's been 50/50 all day. a set of orders there, i think i did also want to take a look at stocks versus bonds recently, because think actually have been moving in tandem so this is the barclays

aggregate. bonds have almost kept pace with stocks that's an inverted, but it seems like when bond yields go down and it's not a stress event, about economic fear or fed tightening, it seems like the stock market is pretty good with that and the rotations are moving in favor of both asset classes. >> tomorrow is our last full day before we go into the thanksgiving holiday and we have about two minutes left to go here until that closing bell sounds. let's send it over to mr. santelli in chicago as always with a check on bonds for us hi, rick, good afternoon >> good afternoon. and i like mike's piece there. the problem is, most traders expect yields to go up and correlate with stocks and that isn't the case price means yield are moving down look at an intraday of five year we had a good auction, just like yesterday's two-year and it popped yields briefly over 160, but it wasn't meant to be they dripped back down. look at the end of august on

ten-year, that pattern looks heavy, so say traders and technicians. finally, a three-day of the dollar index, lost a little bit of ground today, going sideways, low vol at a lofty level and bertha, looks like nasdaq is doing a sprint into the close. >> another all-time high led by tech, microsoft contributing to that today microsoft and apple together, their market caps are now bigger than the entire russell 2000 but today the small caps put in a newta-week high along with biotechs take a look at this eye-population chart chemocentrics up nearly 300% after strong results on a late stage trial for an autoimmune disease. and splunk up 8 days in a row after software hits an all-time high >> that's 24 record closes for the s&p and on track for 25. renewed confidence around trade following those comment from president trump. but it's important to know that

the story does extend overseas in europe, the stock 600 also on the record watch, just 0.1% away from a new high. the brazilian stock market, 2% away keep an eye on shares of deere, set to report earnings tomorrow morning. last year they cut guidance which caused farmers delaying purchases. and here's the "closing bell." the dow, s&p, and nasdaq record highs once again, the s&p up six points welcome to the "closing bell." i'm wilfred frost. >> and i'm sara eisen. so the "closing bell" just sounded there, wilf. here we go >> record closes once again for the dow, s&p, and nasdaq also, pretty much at a session high or just off it for the markets, as you can see with that run up into the close, up about 0.2% for each of the major indices. a little bit more defensive in turn with the sectors today,

real estate, consumer, staples towards the top and energy falling at 4%. >> that's right, we're just moments away as well from several earnings reports we'll get results from hpq, box, dell, vmware and guess those are coming up. we'll bring them to you as we cross. joining us now, barbara duran from bd8 capital along with dan suzuki from richard bernstein advisers so mike, we ended up higher across the board and at session highs nearly there for the dow >> pretty gentle upside follow-through the last half hour action felt like big institutions topping up their exposure i was talking before about how bonds were also strong today, yield were lower the signals are volatility is very low, bond yields are very low. liquidity is very high not a lot of credit stress in there. it means increased equity exposure going into december i think that's what we're seeing

right here and i think everyone is universally anticipating some rubber stamp on this cosmetic phase i trade deal >> dan, short-term for the rest of the year, do you think we can keep this momentum up? >> i think that's a questionable call i agree with mike that there's a lot of momentum here in the markets, but there's a lot of reason for pause the fundamental data has been showing some signs of green shoots and the market has taken that and run with it and some of the latest data we've seen suggests there may be a little bit of a head fake. as we look at this year over the next few months, i think there's a decent chance that volatility could surprise to the upside i don't think that really people are positioned for that. >> dan, when you take a look at earnings, the season is largely done here, but we had some of these retail names right towards the end which gave us a look into the consumer, when you put it all together, what do you make of the season and what happens to year end?

>> i think that earnings is probably the most important thing for investors to focus on. when you look beyond the fact, if you look at the earnings of all the cyclical sectors, they're posting negative year-on-year quarterly earnings growth i think that's the key, and as you look out to the french quarter fourth quarter, guidanc got pretty heavily cut from the companies. you're still seeing that ongoing, which is why you're seeing forecasts come to post-negative growth for the fourth quarter and that's key whether it's tech or consumer discretionary, both of those sectors are posting negative growth this quarter, last quarter, and the quarters to come that's the big concern here. >> bob, we talked earlier that you wouldn't take profits from the microsofts and apples of this world is there anywhere now at these records with just six weeks left of the rest of the year that you would be taking a bit of profit? >> that is a hard one.

i think has a portfolio manager, you would be looking at positions that have swollen in size and chop it that way. in terms of sectors, i would not be i think defensive have had their run, but they'll probably just mark time. they won't outperform the market you could probably trim there if you saw other areas you wanted to go into but i think we'll continue to see rotations as people look for, they want to keep in the market but where to go that's where the health care stocks have had a niz run, certain areas of it. we're continuing to see this rotation under the surface >> by the way, apple out of nowhere down 0.75% at the close. it was up or flat all day. i think there was a twisty systemic trading going in there. >> it was up nearly 2% yesterday. >> it was outperforming the indexes for a while. >> the firm says its mini bubble meltup scenario appears to be

materializing. and the belief that a recession doesn't appear on the horizon. all of that said, mike, and the framing of it, they're pretty cautious for next year only 6% upside for a full year that's a lot of risk you're taking >> meltup is sometimes a phrase used pejoratively. sometimes this is what it means. other times, are predicting a meltup saying, you can't lose with this. this is what happens when you have a low volatility and lift in the indexes for a while even if we get a rally, there are aspects that feel like a last hurrah only because we're used to this idea that the cycle is late and the election is coming and everyone has this sense that, fine, it can work for a while, but we're going to have a little bit of a reckoning down the

road >> box earnings are out. let's get over to josh lipton. how does it look >> guys, box is reporting earnings let me bring those to you guys a loss of one cent that is in line with expectations revenue up 14% to 177.2 million. box is saying look between 3 and 4% that both modestly positive versus consensus i did have a chance to catch up with a ceo aaron levie on the quarter. a strong quarter, he did note a couple headwinds though. still trying to improve performance in certain areas, certain international regions. look at box's stock. we are higher here in the after-hours. we had a strong move over the past few months heading into this, but was down heading into this print about 2% year-to-date you talk to analysts who cover

this name, and there has been this concern about revenue trend, not growing as fast as it you'd to i asked him about that he said, listen, we are focused on driving growth as much as possible focused on reaccelerating, but we know there's a bigger market out there. but we want to drive commensurate profitability, so we were targeting 8% plus operating margins next year. also starboard value, guys keep that name in mind he's saying shares are undervalued. i asked aaron levie, are you open to selling box? he said, we're going to look at all opportunities to maximize shareholder value, but believes he has a strong game plan and strategy in place to do so, as an independent company guys, back to you. >> josh, thank you so much for that >> mike, decent move higher for this one, 3% after-hours for a pretty minimal beat. >> off a lows base for sure. down from the initial pop. stock had drifted lower. so i think probably some relief.

i think trade on the market's assessment of whether they can get to these financial targets, the company can, that they set out for a while. >> let's get back to josh who has another one for us hp >> wilf, let's move on hp reporting an eps of 60 cents. so beats there on the bottom and the top. q1 forecast, 53 to 56 cents versus expectation of 53 cents they also increased the range for fy20 above consensus i had a chance to catch with hp's ceo, enrique loris. we talked about xerox announcing it's going to engage with hp shareds directly that's after hp's board reiterated a rejection of xerox's bid. and he did emphasize, we have a clear strategy in place that

supports what he calls a compelling investment thesis he's focused on creating value for hp shareholders. that remains his company's game plan and strategy. turning quickly to the units here, wilf you saw personal systems that includes the pc business, 10.43 billion. that beats expectations. enrique lawrence saying, listen, he expects demand to be strong for pcs, but limited by capacity of cpus. and intel did say, ship supply remains tight. enrique lawrence telling me, nit that will be tougher in q1 as for that printing bids, 4.98 billion in the quarter that's a touch lighter versus expectations but executives saying they're holding fast as forecast when it comes do printing supplies and that's his company's profit pool they are not planning for supplies revenue to grow in 2020 guys, back to you. >> josh, thank you so much for that any of these companies you want to buy versus the big goliaths that are performing so well

>> no. hp is interesting. it's already got a premium in the stock for the xerox possibility. but really, they've got big headwinds in terms of i.t. spending and uncertainty there and it's probably not going to outperform its peer group or outperform the market. it's not something i would buy >> those printing revenues were disappointing. they were expected to grow about 5% year over year and fell more than that. thank you, barbara duran and dan suzuki, thanks for being with us mike sticks around still to come, the social media awards are heating up as snap's ceo ames to make a clear distinction between his company and the mobile video app tiktok. >> snapchat's really about communicating with your close friend and it seems like tiktok is more of a popularity contest. >> up next, tiktok's head of creator partnerships is here to respond. "closing bell" is going btoe back in 90 seconds stick with us.

15 minutes fame. that used to be the time frame but for gen "z," it's much more like 15 seconds on viral video app tiktok which is owned by chinese company bike dance the app is now used by 13 to 16-year-olds more than facebook, according to recent data from morning consult. and it's where original short form videos like dances and pranks are seen by millions, even companies like home depot have gotten swept up in the craze. a home depot hashtag has

garnered almost 70,000 views after its theme song went viral in videos like the following ♪ >> congrats to our cnbc interns there helping out with some dance moves. for more, let's bring in tiktok's director of creativity, kudzi chikumbu, thank you very much for being here. >> thank you for having me thank you so much. >> a bigger picture question to kick things off, how do you feel the app's takeup in the u.s. in particular has been? and this focus seems to be very much on young teens. is that a fair summation of the state of play for you guys >> so tiktok's mission as an app is to inspire creativity and to bring joy. and it's actuallyan app for everyone when you go on it, you'll find people of all ages but you're seeing gen "z" really take a hold of it because it truly represents who they are. they are the people that want to

be authentic and be themselves and be -- not have to be perfect everywhere, but just have fun, and also it allows them to be included in a community, and at the same time, especially gen "z," they are the creative generation, the storytellers they love showcasing their lives in really cool ways. that's what you see, like the home depot you showed or there's really cool moms and baseball players and ort dontist orthodg fun on tiktok and being themselves so truly an app for all ages >> so how then are you planning or how are you monetizing this app if you have companies like home depot that are getting 70 million views or hashtags associated with the app. >> so we're starting to experiment with different models and opportunities for our brand partners it's still very much early days in that world. but we're seeing them flock to tiktok, because it allows them to be creative with their brand. everywhere else, you have to be

perfect. every "i" has to be perfect, and just recently, we had alf cosmetics do a fun campaign where they made an original song and you saw people, celebrities and creators and just everyday people having fun with beauty and showcasing who they are. so we're excited to see these brands come to tiktok, work with our creators and create videos they wouldn't normally be able to do elsewhere. >> would you consider facebook and snap direct rivals and does it annoy you if and when those companies launch subservices within their own apps that are quite clearly designed to try to copy some of the advantages you offer >> i think we're quite different. and i think what's different about tiktok is that it's not a social graph-based platform. meaning, it's not about who you follow so much adds it is about who you are, what your interests

are, what you care about so when you make videos on tiktok, it's about being creati creative and because of that, all types of people that are interested about the videos you're making are allow to be seen, but also celebrated so it's a different way of creation instead of just bade on how you follow >> and kudzi, if we could have you take a listen to even spiegel who is the ceo of snap who said that tiktok is a popularity contest >> snap and tiktok are so different and we consider them a partner. they're a snap partner, meaning tiktok content gets shared through snapchat the services are very different. snapchat is about communicating with your close friends and it seems like tiktok is more of a popularity contest >> so it sounds like you

disagree >> so tiktok's mention, the heart and soul of tiktok is to inspire creative and bring joy and that happens in different ways on tiktok than it would on other platforms. when you open the app, you are shown so many fun videos that could be diy or food or a fun mom or dancing to a home depot song and you're inspired to create. so it's more of a creation, exploration, joyful platform of short form video than it is purely just to message >> kudzi, there's been talk of potential chinese influence into the app, which the whole debate around which i will use senator marco rubio's words to sum up, if i may he says, i remain deeply concerned that any platform application that has chinese ownership or direct links to china such as tiktok can be used as a tool by the chinese communist party to extend its authoritarianism censorship of information outside china. what's your take on that

is that ludicrous? is there even a modicum of potential truth behind it? >> data protection is very important for us attic tok and tiktok is actually a global company. in the u.s., we operate out of l.a. so we abide by all local u.s. laws and all data is stored locally there. >> has outside of the u.s., the app ever seen any kind of influence by the chinese ownership company to withhold certain videos or to collect data >> no, absolutely not. we don't remove con ten bastento sensitivities around china or other governments. what we're really focused on is building a platform where people can express themselves freely, be creative and joyful, and that is the main direction that has led to the growth of tiktok and where we focus a lot of our efforts on, especially when it comes to creators and creativity the and pure joy and that's where i spend most of my day doing, talking to

creators >> so the salvation army secretary here in the united states says it will no longer use tiktok as a recruitment vehicle and is discouraging its members from posting videos while dressed in uniform it sounds like you think that's an abundance of caution that is not necessary for privacy concerns at all connected to the fact that this is a chinese company? >> no, no, for us, it's really about having people use it as their everyday selves. and we think we can about everyday people just having fun, it's like, for example, there's professional cooks on tiktok, there's people, orthodontists on tiktok and i think we're really focused on having people express themselves in ways that they haven't done elsewhere and that's where you're seeing people really kind of latch on to tiktok. yes. >> kudzi, you mentioned that tiktok is not based on any kind of network of social connections. i have a couple of kids who have been pretty involved and engaged on the platform for a while. and it just seems as if it's also very self-referential you have these viral themes that

go all over the place and people can tunnel into them but i wonder if they burn out very quickly how do you over time keep people from essentially getting fatigued with that sort of treadmill that they're on, the intensity of it and it kind of seems perhaps a little bit gimmicky at times. >> right so i always like to go back to the mission. i talk to creators every day, and they're like, what should i post what are the cool trends and i'm like, just have fun. our mission is to inspire creativity and have joy you can have trends like the vsco girl, or a really popular song, if something happens recently, for example, the kylie jenner rise and shine meme, which is really, really funny and took a life of its own on tiktok. because you're always talking about everyday life and things are happening in pop culture and creating these memes that are online culture that's shared time and time again, you never really can get tired, because it's not only about the moment,

it's also about yourself so, for example, when i talk to creators and one of them that i think is phenomenal is a creator by the name of sarah luger, she's a college student in nevada, but she studies computer science, but also a comedy video creator, and she talks about her life and her everyday kind of struggles between the two and her african heritage, and it's all really exciting and fun. and the reason why you can't get tired of it is because it's people having real-life fun and not just only hopping on trends, even though some trends are really fun to do i participate from time to time, as well. >> my final question on the revenue front, i mean, the scope to grow advertising dollars here in the u.s. would expectedly be pretty significant if you look at other models of what other social media companies have done as that growth comes, do you expect to have to share a significant amount of it with music publishers clearly, music is a very

important part of of your platform i know you have agreements with those publishers did they share in the pie, as you do better, to quite a significant extent >> great question. that, you know, is not any full realm of expertise i know we make sure that we have deals with the labels and publishers and when it comes to brand partners, we're experimenting with new models, but when it comes to how that will pan out in the future, not my domain of expertise, but we're excited to see how the app is growing and everyone is joining and people really are having fun and also just viral success with their content, as well as the music that's trending on tiktok every day >> >> very fascinating maybe we can do a video later. >> i think you would be phenomenal i think you'd be a star. >> thank you very much thank you for joining us >> i think it would be a sensible error for me to partake. sources say facebook was the

mystery firm bidding against google to buy fitbit joining us now on the cnbc news line is cnbc.com reporter, alex sherman. so what have we learned about the facebook potential opportunity here in fit bit? >> so we found out today there was a public s.e.c. filing that dictated that there was a so-called party "a" that had got in a bidding war with google to buy fitbit made several rounds of bids. sources telling me today that company is in fact, facebook, and in addition to making these bids for fitbit, we also learned that the ceo of so-called party "a," which is facebook, met with fitbit and its executives several times over dinner to learn about the wearable's market so it's an interesting side point here, even if facebook isn't going to do this deal, and we're told that facebook is unlikely to submit a counterbid, now that google as reached an agreement to buy fitbit, we do

know that facebook is at least broadly speaking, interested in the wearables market, at least, specifically, ceo mark zuckerberg >> alex, in your reporting, to what extent did google and facebook's potential interest if buying fitbit spur the other one on it was a sort of case of, well, if they're going for it, we don't want to miss out potentially if we're all being honest about things, you know, what is a relatively cheap purchase for these two companies. >> sure. so i think there's always some element of that, where you don't want to lose to a rival, but i think your point is well taken here, is that this company ended up costing about $2 billion, $2.1 billion facebook bid $7.30 for its best and final offer. google won the auction so we're talking about maybe $100 million or so that ended up

separating the two companies obviously, price was not an issue here these google and facebook are massive, massive companies, so it suggests that even though facebook was interested in fitbit, they were not interested to sort of the nth degree. in the end, they were only willing to go so far and price is really not a main issue. perhaps it was more about learning about the industry and thinking about how will we use a wearable facebook owns several different hardware products already. this would add another to their stable but it may be more interest than sort of coveted asset at this point. >> alex, thanks for joining us alex sherman of cnbc.com, do go to cnbc.com for his full reporting on the story well, vmware earnings are out. let's get over to jon fortt with more >> vmware is down off the highs in the after-hours session right now just up slightly, but revenue beat it came in at $2.46 being versus

$2.41 expected non-gaap eps came in at $1.43. and vmware beat in both of its lines of business, license as well as services vmware also noting the strong growth that came from their license plus unearned wempb. it was up 21% or also 13% if you don't count carbon black and i'll be back shortly with dell's results, which are just crossing as well >> thank you very much, john we will come back to you when you are ready with those results. still ahead, oil prices are up nearly 8% since the beginning of october, we'll break down the charts to see whether this crudes comeback is actually for real plus, hormel shares surging after consumers like "mad money's" jim cramer gobbled up spam and other products

recently hormel ceo jim snee will break down the company's earnings report, coming up next on "closing bell. 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.

welcome back guess earnings are out and rahel solomon has them for us. >> it was a mixed q3 for fashion

retailer guess let's start with eps, it came in at 22 cents adjusted the street had been expecting 18 cents. revenue was a miss that came in at $616 million, the estimate was $620.3 million. comps were down 3% in the americas they were down a whopping 21% in asia you can see, shares down about 3.25% in after-hours taking a look at guidance, not a ton of news there. the ceo maintaining the high end of their guidance and raising the low end, but shares are down after-hours. at one point, they were down about 5% they have scaled back a bit, but a mixed quarter for fashion retailer guess wilf, back to you. >> we have another one dell jon fortt's got the numbers. >> wilf, the revenues a bit light of expectations but the earnings per share, non-gaap was strong non-gaap revenue came in at $22.9 billion versus $23.04 expected non-gaap eps at $1.75 versus

$1.52 expected revenue wise, a number of areas are slightly light of expectations but about in the proportions that you would expect we'll wait to hear what exactly dell has to say. contrasting that with vmware, it's telling a story that's become somewhat familiar we're hearing from hp enterprise today after their report last night. looks like a little more struggle in hardware than in services vmware being strong in software skpfss its results a little stronger. but of course, we have to remember, vmware is part of dell technologies so the overall company does participate in the upside of all of these trends as well, guys. >> got it, thank you very much, john, for wrapping that up for us john santoli now has his third dashboard of the day >> asking whether it's time to ask if crude oil and energy stocks are ready to move one away or the other. that's the way they kind of are set up at the moment look at wti crude oil. this is a two-year and it's interesting here is just the way it's kind of being in a little bit of a cone here,

without many people paying much attention, without it being a dramatic move. it looks like it's getting tightly coiled up there. it's also just nosed above whatever relevant moving averages, trend lines you want to see arguably, it's done better than people have noticed, even though it's not really participated in the big riskon move in stocks. now, look at the equal-weighted energy stock sector. this is an etf that essentially weights everything equally that's an ugly-looking picture, but it is also showing you that it's been bumping along this line for a little while here it's been underperforming crude. there's been some credit issues in areas of small cap energy but anything that you would get, a spark to the upside from a trade yield or something that said, the world is going to grow faster, maybe this is one of those laggard areas. >> certainly some cheap stocks there. mike, thank you. up next, surging spam sales hoping we ining hormel beat ears

expectations we'll speak with jim snee coming up plus, ford firing back at tesla over this video of a cyber truck pulling an f-150 up hill why ford is now challenging elon musk to an apples-to-apples tug-of-war rematch later on "closing bell." when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up. about being a scientist at 3m. i wanted them to know that innovation is not just about that one 'a-ha' moment. science is a process. it takes time, dedication. it's a journey. we're constantly asking ourselves, 'how can we do things better and better?'

what we make has to work. we strive to protect you. at 3m, we're in pursuit of solutions that make people's lives better.

welcome back time for a cnbc news update with sue herrera. hi, sue. >> hello, wilf hello, everybody here's what's happening at this hour the pope will call for a ban on nuclear weapons to be part of

the teachings of the catholic church following his recent visit to hiroshima and nagasaki, he said the use of nuclear weapons is immoral snow is complicating driving during one of the busiest travel weeks of the year. it's already falling across the midwest and kansas, nebraska, minnesota all got hit hard some parts of colorado already dealing with more than a foot and a half of snow and president trump pardoning a turkey in an annual white house tradition, granting a full and complete pardon to the turkey named butter. he also later pardoned the alternate turkey named bread and the president used the occasion to take a swipe at his political opponents. >> the democrats are accusing wme of being too soft on turkey, but bread and butter, i should note, that unlike previous witnesses, you and i have actually met. >> you are up to date.

that's the news update this hour guys, i will send it back downtown to you. >> so that final subheading was about ankara i love it. i was just an hour too soon. >> there you go! exactly. >> sue, thank you very much. >> you got it, wilf. >> all kinds of turkeys. shares of hormel closing higher for the day following its fourth quarter earnings. the company slightly missed on revenue but beat earnings and saw sales for its refrigerated foods grow by 4% and its jenny o. turkey store grow by 30%. and it announced plans for a dry sausage facility and an 11% increase in its annual dividend. joining us now in a cnbc exclusive for more is jim snee, he's president and ceo of hormel foods. jim, thank you so much for joining us here today. >> thank you, it's great to be with you from the spam museum here in austin, minnesota. >> i have to say, i didn't even know that was a thing. so that's also something you brought to my attention. what was the reason for the quarter today? what really drove the business

>> it was a very solid quarter for us as you mentioned, we saw strong business in our refrigerated food segment, our jenny o. turkey store business showed some really strong volume, sales, and earnings growth, really the first time in a number of years. they had some head winds, but it's a business that's got really good momentum heading into 2020, and our grocery products business segment, which is where you would find the iconic brand spam also had a really nice quarter for us additionally, as you mentioned, we announced our 54th consecutive dividend increase and it's the 11th consecutive year that we've had a double-digit increase. we're really proud of that as well and tomorrow morning, we'll be announcing the 81st consecutive year of profit sharing for our team members, and that's equally as important, because they're the backbone of our

organization nothing happens without them >> i understand that sort of before 2014, you were a meat-centric company things have shifted. now it's more protein and eventually you're looking to be a global-branded company but you probably saw that video of our own jim cramer eating the pumpkin spice-flavored spam and you said spam was a standout so was it because more people were doing what jim cramer did and wanted to try it it was a novelty item for you? >> you know, pumpkin spice spam was really more of a novelty you know, the notoriety that w got from the item was just absolutely phenomenal. the way we calculated it was about a billion and a half impressions, which is really priceless. and but more than that, it's really about the iconic brand, spam and the way it connects with consumers after over 80 plus years, it's a great, affordable source of protein. it's very versatile. and it's still on trend with so many consumers today and the fact that we do have a spam museum here in our hometown, i

think, speaks volumes to the strength of the brand after all of this time >> jim, as you said, it's doing well, spam and you also talk about reshaping your portfolio what's the split now between what you'd bracket as the new brands versus the old brands and how different are the respective growth rates >> yeah, i think the biggest difference for us, if you go back in our history is we were probably more of a commodity-type business. and what we've really evolved into is more of a value-added, on-trend business. and if you think about some of our recent acquisitions, applegate, justin's, our most recent one, columbus, those are all brands that are on trend with today's millennial consumer and they're appealing to really that new consumer that wasn't in our portfolio before, so it's really helped us achieve a nice

balance of our legacy brands and some really good growth brands going forward. this is going to be a constan y accountant evolution for us. because i believe, courtney, as you said, aspirationally, we do want to be a global-branded food company, and we're well on our way, because it really is all about the food we know that nothing brings people together like food does and we're front and center when it comes to entertaining and gatherings and that's a place that we really like to be. >> very quickly, jim, as we're out of time here, but i would be remiss if i didn't ask you about the state of the u.s. consumer as we go into the holiday season >> yeah, what we see is very strong consumer demand across so many of our brands it could be the iconic brand spam or some of the newer brands that i described, but the nice thing for us is we're able to meet consumers in so many places in their need state. as you think about the footprint of a retail grocery store, there aren't too many places where you

won't encounter one of our brands so the consumer is strong, the brands are strong, so that sets us up for a very strong 2020, which we're excited about. >> thank you for joining us. jim snee, ceo of hormel, happy thanksgiving to you. >> happy thanksgiving to you >> from one type of protein to another. jane wells looks at the fast-growing business of raising bugs for food. jane >> i'm going to introduce you to the potentially $8 billion bug sure, it doesn't look very tasty when it's alive, but roast it, toast it, put chocolate on it. anybody? anybody? i'm hearing crickets when "closing bell" comes back most people think of verizon as a reliable phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business.

virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. ♪

welcome back we're a few days from thanksgiving this year, forget the turkey how about insect protein instead. barclays now protecting bugs as food will be worth $8 billion by 2030 jane wells joins us live from a cricket farm with that story

i didn't even know cricket farms were a thing until today, jane >> reporter: yes not just cricket farms this is a beatetle bungalow. remember when nobody would eat sushi. in 20 years, we can be saying, of course i eat insects. barclays say the insect market could grow tenfold in the next 20 years the question is to get you to eat it chef joseph yun has made it his mission to make insect food delicious. also, instagram worthy he figures maybe if you like to eat it, you'll also like the fact that raises it uses so much less water >> how do we change american's perceptions from insects as pests as, eww, weapon don't want them, to edible insects, something that's delicious, nutritious, and a responsible source of protein? >> now, nestle is looking at

this potentially as a dog food, as an easy way in. tyson is watching it darling, which is an alternative protein company, is in a massive joint venture to start a bug facility in texas to meet demand this place right here is owned by monica martinez in oakland who's raising her own bugs for her own line of snacks called don begito i think you might have some. >> they are here on set. before i get forced to try one, i have a couple of questions the first being, what is the driving force behind the reason for why this could take off. is it just the amazing content of protein or whatever other ingredients that are in this or is it kind of similar to why we've seen beyond and others take off, because it can deliver protein without it being so damaging to the environment as, say, a -- >> reporter: you hit it right on the head it is -- it is incredibly mar sustainable in terms of land, water, they get most of their water from the air, they emit

very little methane. 80% of the plant's biomass is insects. many other cultures, it's quite common to eat them it's a matter of cultural acceptance here. and there is still a little bit debate over plant-based where you're only killing a plant, to insect where you are killing an animal that has a central nervous system, but there is some debate over whether they're se sentient >> i feel if this really takes off as a trend, bear grylls deserves some credit for being a pioneer in this space. he was ferris to -- >> reporter: yeah, he was. and, you know, actually, it's quite good these are the parents, i have to show you so these are the beetle parents, okay what they have -- these are live meal worms here. this is -- and these get dried and they've got a very nutty taste. and i want to show you one other

by-product, interestingly enough this is meal worm poo. this is a great fertilizer, which she is selling as a by-product to like cannabis growers and biodynamic farms >> it's california people. >> bear grylls would be diving right into those beetle parents live and go straight into them a credit to them >> i prefer them toasted >> jane wells, thank you so much >> and coated in chocolate up next, forget ferrari. it's ford versus tesla the two automakers are set to go toe-to-toe in a pickup tug-of-war we'll explain when we come back. . i started a tiny investment business, and over 27 years, grew it successfully to 36 billion dollars. i'm tom steyer and i approve this message. i'm running for president because unlike other candidates, i can go head to head with donald trump on the economy, and expose him fo what he is: a fraud and a failure.

♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪ [maniacal laughter] gold. gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale.

still ahead, viral video, papa john's founder and exceo speaking out in an interview revealing he at ate more than 40 pizzas in the last 30 days the verdict when we come back. when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.

♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

whether you're out or here on a wifi hotspot. xfinity mobile has more coverage to keep you connected to what matters most. that's because it's the only wireless network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. and now get $250 off when you buy a new samsung phone during xfinity mobile beyond black friday. plus, you can save up to $400 a year. click, call or visit a store today.

welcome back let's get over to mike for the final installment of the market dash board. >> apologies for getting the song in your head. pu the landdown under is where inflation lived a while relative to the fed target. look at the long-term trend of pce, president preferred inflation measure the fed uses annual growth rate headline in oranging and below the 2% target but not been a very -- you know, kind of volatile trend it's been sideways but steadily below 2% now fed chair powell debuted as a symmetrical target meaning it's no more alarm if that much above the targets target as below. the fed will lean toward easier. but it's hard to look at the chapter and say there is

inflation emergency. it's just the amount of inflation the economy is geared for at this point. >> i agree with that, mike thank you and good song now stuck in my head up next, ford challenging tesla to a pickup uck g--wtrtuofar and elon musk saying bring it on we'll discuss when "closing bell" comes back no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424.

dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

ford challenging tesla to the apples to apples tug-of-war and the new cybertruck and the f-150. >> ee month lussky tweeting bring it on after showing the video of the tug-of-war against the f-150. the anticipated showdown:take place as early as next we can. this is awesome. i hope this does happen and they kind of come to it with all the equal terms we'll see whapz. >> awesome more to bring you before the show ends. former pennsylvania pennsylvania john's doing an interview with a local news outlet. >> i've had over 40 z in the last 30 days it's not the same pizzo or product doesn't take are taste as good. >> the adding the truth but the ousting will emerge saying the day of reckoning will come

stay tuned a an awful lot of pizza. >> an extraordinary interview. >> possibly he sampled 40. i'm gichg him credit. >> didn't all all of 40. >> either either way a good effort appear interview worth watching record closes for all three major indices, albeit small gains that does it for "closing bell." >> "fast money" begins right now. and live from the nasdaq market site in times square this is "fast money." i'm brian in today for melissa good evening trade resist on the devg tonight are tim seymour. karen finerman, dan nathan and guy adami. tonight on fast markets locking in another round of records. continues continue the slow steady climb the question is this can anything stop the rally? plus with a major development on the opioid makers telling what you the stocks tumbled three, 4 and