tv Mad Money CNBC October 6, 2020 6:00pm-7:00pm EDT
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hey, i am cramer, welcome to "mad money," i am trying to make friends, i am trying to save you money. call me, 1800-763-cramer that was unsustainable today we learn nearly everyone loses when the president acts and slamming the market. a crushing disappointment. and anyone who lost a job may be on the verge of losing a job
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you have to wonder what will happen to the 14 million odd people and the family working in the hospitality industry let's just say inhospitable. i care about the small and immediate size businesses and workers that are going to be laid off speaker pelosi and mnuchin is making a lot of progress and getting a lot of phone calls, getting close to a deal. speaker pelosi echoes after the president stops negotiations but it was too late. trump tweeted, he was adamant and he'll put a better bill after the election all right, what's really going on here? that's the rhetoric. we all heard the rhetoric, right? the president is taking a calculated risk, betting the economy stronger than most of us believe. he touts it every chance he gets including a couple of tweets today. that's why i told you the senate
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was never on board if you can't come up with a compromise before the people going to the polls, i don't know it will be easier doing it a month from now small business owners hold on after the election airlines make ing it from their losses or renters who can't afford to pay landlords or the state governments that are bleeding from their eye balls because of the pandemic. stimulus bill today is better than months from now although i say this as someone who just had to close his restaurant because it is impossible to make money so what's the point the president's aides are conscious that many of the areas of the economy are red hot right now. they'll stay hot regardless of what the government does the economy that needs help are small businesses they don't trade publicly. the president could tout in his tweets that we are record highs
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although we are a little off particularly after today how about the part of the economy that are -- well, these are the ones that the president is right, they don't need help as long as we have to live with the pandemic, people will move from the city to the suburbs the market is red hot. it does not hurt the marge rate very well. if you still have your jobs and you can work from home, you can buy a nice place in the suburbs and fill up with great furniture and fire pits. you are going to be stuck all day there so why not regardless of the cold and build something outside your house, that's what a lot of people are doing. i like the housing and stocks here lowe's and home depot, the only thing that's stopping the housing market are major down employment neither of those seem likely i am going to stress once again so people understand that there are something in here and
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besides an under shirt, if you have like a heart, you would know that you will only get to take advantage of the housing bull market if you have a job. if you don't you can't get the loans. i am conscious though. wow, what a bozo heartless cramer i live in my car, i would have loved a loan home depot and lowe's they benefit. they're now donors these guys take advantage because they get they're donating smaller guys who needed the stimulus are donating it to them you can't get stronger than these guys so much of the competition to fold. the mom and pop retail may be bad for the country but phenomenal for these folks
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the collapse of the small business advancing in ten years, i say with a smirk no stimulus means no people have to trade down the cheaple store. just like carvana and autonation and carmax they are what you need if you move away from the city and you take the dreaded mass transit. if you want to stretch the field, buy some coford if you have enough money, guess what lay back on your peloton machine. you worry about covid, most people are still are then you are using the internet for most of your shopping the pull back gives you a trip,
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buy amazon there is a reason both fedex and parcels are holding up today at least if you have regeneron don't forget the restaurant chains that are pivoted to take out deliveriedeliveries, they ag it with no stimulus to keep smaller restaurants afloat these chains are the last man standing in the industry, not good for my diet but good for their stocks all that says, i don't mean too good here. we can use that stimulus package. without one numbers will have to come down from a whole host of companies but not technology most tech supports the enterprise and not consumers enterprise is doing quite well you can watch this a bit in tech stocks and pick up some wages. they go down and tomorrow everybody is scared to buy them and by 3:00 tomorrow, they'll be okay and they'll start picking
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and the next day they are fine some people argue a lack of stimulus means we are headed for a recession. i don't think that's true as long as we are headed for the year you buy pepsico or campbell soup regeneron when it comes to the compelling recession, there they are. don't out think of it. we are living in a two-tale city economy. the part that's hurting does not matter to the economy. the part that's working is the publicly traded companies. we have a v-shape recovery in housing and autos. auto retails are not even experiencing a downturn.
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they have enjoyed an essential upturn because they are essential. all the little guys are not essential. all these work regardless of what happens the same for covid-19, they all did well today the pandemic is flaring up again. the president may have ripped his mask off yesterday, most of us will be putting them on extra tight this fall. the bottom line when it comes to the rest of the economy, what can i say? you can't buy stocks where businesses are about to go under here that will pain isra real. that's no longer in the carts. let's go to denise in minnesota. >> jimmy joe >> i will be chilling. >> this retailer is entering its
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busy season, it reported earnings beat of 38 cents. e-commerce up 350% these numbers seem to get loss at the september sell-off. what do you think of michael's mik? >> it does not havs like bed ba beyond k costco and target. let's go to shalom in california shalom >> hey, jim, shalom from pasade pasadena >> what's going on, my friend. >> i would like to know what you think about energy what do you think? >> shalom, this is as great story, it is the best growth stock utility i have seen in my
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career i suggest that you continue to buy nextera energy it is a remarkable company >> how about lendin in new york. >> jimmy choo, booyah. >> earlier in 2018, you recommended trading about 18 i bought and sold a number of times and i am now playing with the house's money. the last two months the stock is gone from 60 to 121 today and the only news i saw was northern c capital market with a 200 price target, what gives, novocure >> a friend of mine passed away, they called me he was going to die a couple of months and he used novocure and he got three extra years of life. all the machines of interim got
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better and better. wall street is too cynical to realize that this company is a real deal. they miss out on 100 points. you didn't i like it. i want you to over think it, i got some winners here. every one of these companies can do well in this new-found no stimulus economy there is the p of public. i am sending you down with the ceo. i am talking to the ceo and with the elections just 28 days away. i am talking about protecting the integrity of the results don't miss my sit down with the red hot clown-fair
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the numbers came in well ahead of expectations. the stock got dinged, 42.5%. last time paycheck reported, they delivered good numbers and the stocks got slammed it is still more than 10% as we last spoke to management in july management was down since, could that pattern repeat itself let's check in the kate snow of paycheck welcome back to "mad money." >> thanks, jim, it is great to be here. >> in the conference call you said we don't expect stimulus. if you were lucky, you got it. you have done a number of things that we should not link you to small, medium size business. i think we should link you to technology and mobile platform these things have changed the way we should think of paychex
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you are a company controlling its own destiny. >> well, i agree with that, jim. of course we talked about it and the technology and investment that we made positioned us to be a tech leader and innovator. you are seeing that in the response of covid over the last two quarters were proud of the fact that we were introduced of the first payroll report, it has been accessed from our clients and estimators for loans and forgiveness and we accepted that to help their krient clients we are proud of the innovation that we put out and personalize service as well if you need it >> also, before we all panic the federal government not doing stimulus there are some states that are doing quite well you talk about how frankly florida, florida opened up entirely i don't know how that's going to
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pan out. right now if you keep the economy open, it seems like your state can make a lot of money. >> florida has been solid on job growth the best numbers they are still down from last year florida continues to be strong and has the high index and our business index that we report monthly. construction is giving that strength, residential and commercial there is a real exodus towards florida and the south and it is helping a lot with construction. >> well, now if we have good hou housing and it is mostly used and people are moving out of the office from the city to the suburbs, lack of stimulus may actually be okay >> well, i think so. stimulus would help small businesses and medium size businesses about 80% are getting to their first loans and looking for more flexibility and more loans to help them out. about 40% we are looking for
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additional stimulus, we are going to get that and unfortunately it looks more like november but even without that, we have seen a number of businesses come back that we had not seen suspended and now about two-thirds to three quarters of those are back processing payroll and for a fewless employees and i think that's going to continue to build >> you did see in the conference call that you think the recovery jobs will be slower than the last three or four months. >> yeah -- >> well, that's true, i think it is progressive it is continuing to happen and we saw a great bounce back in may and june and it began to slow down. it is coming back and we are seeing more small businesses in particular and employees, jim, as you know we have seen new business starts of 20% over last year and we are selling a lot to a lot of businesses that are out sourcing for payroll and h.r.
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for the first time ever. >> let's talk about coloration and new businesses, what kind are they and where are they geographically >> yeah, we are seeing them and spread pretty widely geographically, mostly in the south and west but it is spread out quite a bit. it is really all different sectors of business, you know leisure and hospitality got hit the worse. >> right >> you talked about it a number of times and finding new ways to take opportunities in a covid environment and remote work force and really turn them into something. we have seen the best payroll sales unit growth in over five years in this quarter because of so many business out sourcing payroll and new businesses >> that's incredible i was worried of temporary lay offs becoming permanent lay offs i don't want to say the glass is half empty i feel like i should be talking about glass half full when i am speaking to you.
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>> a lot of our financial indicators are down verses last year as you started the call we really seen much better recovery in our first fiscal quarter ending in august than we expected we expect that to continue through the second quarter and on you know it is hard to predict our fourth quarter in the past spring of next year. we are seeing a much better recovery, it is the technology and investment that we made and we have products that are perfectly positioned for remote forces and those coming back to office here is something you can wear a mask and punch in and punch out. if you are coming back to the office, if you are staying remote, you can punch in and out on your watch or your phone. >> these are things that are happening the next three to six months that could matter, right?
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>> yes, it does. i think we continue to build out our self-service where you can sign on in a paperless environment, everything is paperless from hiring and h.r. and handling everything, electronic signatures can be paperless and remote you will be able to frankly as an employee ask your phone or google or siri when was my paychecks and what did i get paid and a lot of new investments and innovations coming that i think will really position us and position as well in this environment and future growth of paychecks. >> we always talk about reinvention, it is shopify and inventions are people working at home the reinvention is people knowing siris and asking alexa questions. unlike us, wow, that's kind of cool that's their lives >> it is their lives and the
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innovation is what has helped us with our past investment to do so well and recover in this environment and it positions us well in the future as well this is the future it is here a lot faster. >> thank you, marty. paychex, every time we say this. every time it comes down, you have to buy th my father always reminded me, "a good education takes you many different horizons" and that sticked to my mind. so, when $1 a day came out, i said, "why not"?
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in other ways, well... any questions? the good news is... we've learned, we can do this. turns out when we're hitting our goals, nobody cares if we're wearing pants. so no matter what comes next we can work better do better this is going to work. but before we sign i gotta ask... sure, anything. we searched you online and maybe you can explain this?
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i can't believe that garbage is still coming in. that is so false! frustrated with your online search results? call reputation defender today to join tens of thousands who've improved their online reputation. get your free reputation report card at reputationdefender.com or call 1-877-866-8555. we are back in a minute. all right, now more than nine months into a apocalypse year hurricane is slamming the
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southeast. you can't make this stuff up >> generac, they are known for their in-home power generator. the stock had a 78% gain since we last spoke to the ceo in march. stores are essential for renewable. generac did it again with the news they are buying enbala. let's take a look at the chairman ceo of generac. welcome back to "mad money,". >> thanks for having me, jim, it is good to be here >> i am going solve solar panel coming to my house and i am going to be able to make money and selling it back because of
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enbala >> absolutely. it is going to enable the decentralization of the grid we have been talking about this now. electric grid is changing. we are going from this centralized legacy model with wires and power plants to a much better decentralized and digital type of network, it is less c carbon intense >> okay, i buy genera kr and i get tc and i ge the enbala system. what happens >> our energy store devices and what enbala does is a software platform it is a cloud based. it enrolls those assets.
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they call them der, into their platform and that platform can aggregate those assets into a virtual power plant configuration and that power plant can be use by the local utility and operator allowing the utility and operator to tap that resource otherwise that generator would be sitting there really not being used too often and in frequent use type assets this allows it balancing out the grid for all kinds of disruptions that can occur >> i don't typically mention d advertising because it happens and we are not supposed to watch it i imagine the cost so it is a fair game. your commercials, my wife is attracted to actually kind of talks about the notion of return on investment, most people don't
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haves commercia have commercials about that. in english that you do it. you are building a mode with these ads. >> we are. and really those original advertisements that we are doing is all about peace of mind you are buying an insurance policy protecting your home and family when you get that product, you get an outage with the hurricanes or wildfires or storms or whatever that's causing that, if you have one of our products, you are protected, the lights are on and heat is on and whatever you need, you got it it is never been nri product this is enbala now, i can turn that message around and tell you not only you can get peace of mind from that product but you can use it to recoup and save on your energy
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cost and it turns it into an nri approach >> if i am in california and they are dimming the lights so to speak like we expected in a lesser developed country frankly. they must welcome natural gas based generac that gives them power when they don't have power? >> absolutely. california everything that's going on out there and aside from the wildfires, what you saw was the effect of renewable push that's going on with the grid. we are changing the grid and we'll make it less carbon intensive which is great renewable are intermitten. there are days when the winds are not blowing and the sun are not shining. when it happens, capable of being called upon by the local
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utility to help su supplement, e had the heat wave and they get dark when the sun goes down, they ran into a serious issues in terms of supply and demand what they can do is take those despair assets, der and they can aggregate them and put them in the grid and that helps stabilize things so we don't shut portions of power to homes and businesses >> people don't realized how big this acquisition is. it is incredibly important and it is not cheap to buy a regenerator. this is a major transformation for your company >> it is it is not a huge deal. it is a start-up company and located in denver.
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about 50 people. it is not a massive company. thefantastic it is transformative for us. turning it into a services and solution type company. it is a major shift for us it is a great 2.0 develop. we want to be at the forefront and leaning into that as a company and being able to participate in that change >> what are the manufacturing cost right now for your machine. i know you are trying to change things around the right way. >> we are. right now we can't make enough machines demand is incredible for our products right now and of course again by creating a situation where those generators, they're not cheap products these are expensive price. they are home improvement projects and they run off the home supply and they turn back off and utility returns and so there is some what expenses and permits and contractors involved and all kinds of different things they are great when you have
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one. it is always been about peace of mind for us this is what trains us into a much more productive asset. for you as a homeowner, in terms of getting it for assets when it is being used and for those grid operators who are going to count on these types of assets it has more renewable working their way into the grid, you will see the stability issue playing out exactly what's happening to california that's happening to california that's going to play ouour lexus deale.
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a month ago we saw a pull back in the red hot tech dot the stock is up 141% since we first spoke to the ceo on february 18th. cloud 13 at 45 people sold the biggest winners to make all the new wave a major come back, cloud flare is up to 40 bucks. so can this stock keep running we spoke to matthew prince the cofounder and chairman of
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cloudflare mr. prince, welcome back to "mad money. >> thank you for having me on. >> i am thinking of what's happening to the president just when you think we are going back to work and everything is under control and you don't have to worry about a content delivery network or people stealing information, you get a president where i have to worry about whether his calls or zooms are secure we are not out of the woods, are we >> i don't think so. i don't think covid or not we would really would be changing our designing network and thinking about it what we have seen is people accelerating the plans they already have in place. no matter what you need a fast network and reliable network and secure network that's what we are delivering at cloudflare >> you are also not afraid to take on the big voice.
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even you have been taunting google and amazon to some degree the level of confidence must be very high that your network is better than theirs >> i don't think of ourselves as taunting them. we look at some of the business models for legacy technology company that are out there we are built around how you mind data and sell that data with targeted advertising nothing is necessarily wrong with that business model we do think there is an opportunity for new companies to say get to a straightforward business model people pay us in order to use our network. we can deliver services that are actually much more privacy friendly and take on what is i think a much cleaner, much more future resistance business model. that means how do we make sure your customers are in compliance with laws around the world and individual developers have the
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tools they need without having to feed all of their data back to the giant google app machine. >> okay, you entered into the analytic space, i think it is a great way to start your next decade >> congratulations >> the testimonials on your website are incredible it is everyone that i revere out there so people know how great cloudflare is. >> talk to me about the analytics. >> the analytics space have been dominated by google analytics. s the proposition for them is how can we build a system that gives advertisers the ability to target advertisements online that's great on the other hand you are trying to figure out how people are using your data. there is increasingly a concern about privacy. what we realize is we had the
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resources to be able to offer a rich and robust privacy first analytic service and the business case for this is while we are providing this, they can learn how great our products are and adopt the rest of them so we think this will be a great user acquisition flow for other products >> let's see if i want privacy and i want surety then i am starting to think about what the president is doing on a daily basis, the election, is it possible to keep the election private and secure >> you know, jim, this is a topic that you and i care a lot about. starting 2016 where we saw a lot of other technology company tools that were designed to do good things were misused in order to influence the election. we realized we had to do something about it we launched in 2016 a project which gives our services at no-cost to local state and
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federal governments needing to protect their election structures it has been rewarding to be able to talk to state and local officials that are true patriots whether they are blue stays or red states or purple, more than half of the u.s. states, people who are using the project to stay safe. we have a tiger team that's assembled internally and on call 24/7, 365 to help with challenges that may come up over the weeks to come. we have been able to sort a number of attacks but we see everything is going very smoothly, registrations are happening and we are doing everything we can to ensure that the election which is coming up will be free and fair and prevented and cyber attack will not be the lead story at the end
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of the day >> yes >> i care passionately on this question, reuters reported at cloudflare to its work for the trump campaign. >> we provided services for both the campaigns. again, we are not picking sides. we have seen cyber attacks that are targeting the campaigns but part of what we think is important are delivering services as inexpensively or in some cases free. we work with the federal election commission to make sure we can giver our services away for free while complying the election rules and campaign finance rules and what they came back and decided was cyber security was so important for the future of this country and the future of democracy that they would let us and other great companies like microsoft provides services to campaigns
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break. it is time the lightning round. are you ready? dexter in california, dexter >> boo-ya, mr. cramer! >> already halloween, what's up? >> i need your help. >> well, you came to the right place. >> jim, the pandemic, before this pandemic this company was hot. medical procedures have been postponed and this company has been falling off now with the push reopening,
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this company's reopening had be confuse ds what's your opinion? >> i am not going to rid my mask off. most people are scared to go i would give it an mri you will suffocate no one want to go to these things we'll have to hold off >> let's go to john in florida >> hi jim, it has been a while >> what's going on, john >> i like your insight on blnk, please >> i think electric vehicle charging stations are going to be a commodity john, i rather see generac, it is a better start. can i go to cooper in tennessee. >> jimmy choo, booyah, i read all your book. >> thank you very much remember the "titans" my friend.
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>> i want your thoughts on e commerce gaming and online payment. what are your thoughtthoughts? >> this thing is such a horse. i had never had lock buying in singapore, hong kong, north korea. you will have to be as much as i like everything you said on your own on this one. that's it. i have got to say it singapore is not methamphetamy a and neither is malaysia. >> i need to go to tony in nebraska >> hi, jim, what's going on? >> what's happening? >> it is finally coming down we are waiting for you hope it goes to 25 >> gold. this is one of the great companies. how about the best assets and the safest area of money management if that's not enough for you i
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don't know what it is. >> let's go to jose in texas jo jose >> hey jim, crazy day today. i have a question on a company that i have trouble comparing other companies to i don't want to group with walgreens or cvs, good rx. >> look i happen to be a good fan of good rx at price d it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we go you bue off. you downy aded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks.
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month. the president got covid and he just repealed the stimulus negotiations so since i am not a doctor, what i do is i lean to my network of ceos and medical network to figure out what stocks work for you. when you have been in this as long as i have, either your network is good or you have to retire any network is really good, i am sticking around. i find this the hard way, i didn't pay attention to politics, i just follow stocks heck in those days i barely focus on politics. i want to take my cue from warren buffett, find high quality companies -- buffett can get away from it because he's a billionaire. at the end of the day you ignore politics think about everything i would have missed.
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first i would have failed miserab miserably. i flew back to miami to take all the super bowl and missed the game i wanted to warn you the pandemic that's headed our way a pandemic that's coming out from china i started bringiringing the alal early. those were not stock issues but they help us identify a ton of winners. second, i follow politics and i recognize the stimulus package would stage off a depression the economy would come out of the pandemic just fine third, because i have been paying attention to congress i warn you another stimulus bill is going to fail if you listen to me, you would
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not be surprised that the president trump announced he withdraw throughout the elections. i told you stay away from stocks i started recommending regeneron. why? because the white house loves oil. so if oil goes up again, it is going to break out finally i told you to stick with it which is my acronym that i created because facebook and netflix and google all do better during a pandemic. it would have been a lot less
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aggressive of rec meommending ts stocks be careful selling these stocks. all but apple can rally. sure, if i stuck to stocks this year, i would end up giving you terrible advice. as much as i love to ignore politics and medicines, politics and medicine is driving the market right now it is a river. i like to say there isa bull market some where i promise i will find it just for you right here on "mad i'm shepard smith on cnbc, and this is "the news. >> let's get you in as quickly as possible. >> state of the race state of the vote. ballots coming in record numbers. >> i'm feeling like it's november 3rd. >> joe biden increases his load in the national polls, but it's still neck and neck in president trump in some key battleground states we're on the ground where the election will be decided texas officer arrested, charged with murder in the
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