with the fleet, he's got ten years ahead and tons of more miles driven where the other automakers are playing the ev game so i continue to be bullish. i like what he's doing i think the stock showed a lot of relative support in a very low tape it bottomed in may and significantly off the high. >> thank you for watching "power lunch. >> "closing bell " starts right now. stocks are surging as the bounceback gains steam make or break money hour for your money welcome to "closing bell." i'm sara eisen near the highs, up 767 points, every dow stock is higher at the moment the s&p 500 up 2.85% adding to gains for the week, which now stand at up 5.5% for the s&p 500. nasdaq is leading the charge, up more than 3% tech making a big comeback spots in the market that have been hit the hardest are rebounding the hardest now

the cruise lines are leading the s&p up double digits some of the big tech players are having a strong session like amazon, and nvidia, and apple. here is the s&p 500 heat map we'll show you it shows how broad this rally is today. very few winners every sector is stronger on the session right now. energy is at the top up 4% consumer discretionary at 3.5. so are materials worst performing group are -- looks like real estate now that's still up 1.3% we're going to be all over the rally for you throughout the show we have two ceos with reads on consumer spending, hp boss enrique lores about the outlook for pcs and hardware in this hybrid work environment. and later, the ceo of hasbro, fresh off the investor day, where they just cut their full year forecast. we'll talk to him about the new plans to slash hundreds of millions of dollars in cost. but we'll begin with the top stock story of the day that's twitter, rocketing higher

amid session on news that elon musk is looking to complete his acquisition of the company at the original price $54.20 per share the stock is halted still for news pending david faber has been all over this story joins us here at post nine what a treat to have you here. working hard today. >> yeah. it has been a longer day than i anticipated it would be. but that's what it is with mr. musk you never know what to anticipate last night he's sitting there tweeting about russia and ukraine, making a lot of new enemies perhaps, but at the same time he appears to also tell his lawyers, you know what, send a letter over to twitter's board and the court in delaware, tell them i'll just buy twitter for 5420 that's the price i agreed to back in late april before things got a bit more complicated twitter would say before he got buyer's remorse and tried to come up with many different explanations and/or reasons why he should be let out of the deal that's where we were left as of this morning with the possibility of going to court

seeming quite strong on the 17th of october now there have been plenty of people who anticipated perhaps there would be some settlement talks. that wasn't the case n fact, i was on with you on friday when we had that weird story involving ari emanuel. but there were no talks of significance about an actual settlement and, in fact, there still aren't what this was was mr. musk deciding for whatever reason, and we can all speculate about why, that he wants the case to end and that in order to do so, of course, he has to buy the company at the agreed upon price of $54.20 a share. that's what a letter that he sent, as i referenced, his lawyers septembers sent last ni indicates. we're waiting for the court to unseal it and we're waiting for mr. musk to update his 13-d filing he is twitter's largest shareholder, $4 billion worth of stock. so he would update his 13-d filing with this letter.

sitting here, waiting for that to get a little bit more of what he says. but twitter for its part, i'm told, is a bit -- just concerned, wants to make sure everything is appropriate before it drops any litigation. and so you may find that this ends up in court in front of chancellor mccormick, before it is finally resolved. but based on what everything i heard, and what is in that let and the expectations on both sides this deal is lickly to come to an end very, very soon in terms of mr. musk acquiring the company at $54.20. his investors coming in, the $7 billion he raised. them funding, morgan stanley coming up with $13 billion, there is a look at what they committed to with other banks. that's not going to be pretty for them to the extent that that was committed to some time ago when the bond market was a

somewhat different place one may expect they have to take cuts as they sell that debt down that being said, the credit worthiness here is going to be quite high you have $33 billion in equity ahead of you as a lender $32 billion given the equity check mr. musk is writing, with the $7 billion we do believe he's raised money of the money for that equity check. but robert frank has been tracking this pretty closely he indicates to me it could have another 2 or $3 billion that he has to raise if you make sure on the math that becomes a bit unclear. >> brookfield in that deal as well. >> a lot of players. >> you have to think he saw the chances in the delaware court weren't looking good for him. >> you have to think that was the case and certainly to the extent we have been following things closely, they have not been doing a particularly good job in making their case in front of chancellor mccormick the latest back and forth was about privileged communications,

but also the fact that the musk side didn't seem to be making good on pledges to share certain communications, or there were text messages that were disappeared somehow. and so you did sense a bit of frustration on chancellor mccormick's part there was this possibility people raised about you could make a ruling of inference, which would essentially be almost saying if this witness comes before the court, they are not necessarily to be believed, that would be bad. musk was supposed to be deposed later this week. there are those who believe that he simply doesn't want to be put in that position >> sure. >> and so we can go down any number of roads to try to understand what it was that motivated him last night to tell his lawyers, i'll just pay this thing. but certainly you have to think about a couple of those events as being key. >> the stock is moving a lot, up 13%. still below -- >> it is halted now.

>> it moved up, but not near where it will once we see that letter and it begins trading again. >> my question is if we do see it, it could go up to $54.20 is there any regulatory risk ahead? >> everything is signed off on it has been approved by shareholders so the only thing once they sign this deal, again, or he commits to the deal he already signed, would be the 15-day waiting period or marketing period that morgan stanley has it doesn't have to exercise those 15 days, but it does have the right under the contract to say you got to give us 15 days to market our debt they can easily wave that. and that's why i said earlier you could see a deal done within days where musk owns twitter, you know, by next week which is pretty astounding given everything we have dealt with and gone through for these last six months or so. >> there is always a twist >> always. always and i -- i keep imagining, like,

last night he's tweeting ferociously about russia, and ukraine, and making some strange proposals. and then at the same time he's also, yeah, okay, all right, i'll buy at -- just the man is amazing. >> a little window into the text messages. >> we did. we did it has been interesting. but it does appear that very likely we will not be seeing the inside of that courtroom >> david, thank you. >> you're welcome. >> good to have you here on set. >> i'll just stay. i've got to stay until 5:00. >> good show coming up right now, we're going to talk to brent fill, deputy senior equity analyst, covers twitter brent, are you surprised that it is looking like it is ending up this way >> not really. he said at the ted talk this wasn't about money or the economic value it was about the democracy of twitter. and so i think there has been so many twists and turns and it has been a roller coaster that i don't think that anyone -- if you listen to the ted talk, i think he was very clear that

this wasn't a way to make money. >> what is the status of the company that he is buying now? employees, how is the business doing? feels like in the market, given what happened in the stock market and in the tech stock sector in particular it wouldn't have been a long way from 54.20 at this point naturally. >> yeah, i think he also has to understand that this caused a lot of pain on the company a lot of employee departures there has been a loss of faith among the advertisers. so he needs to get this deal -- if he wanted to in the long term he needed to cut this off and get it moving because he just is inflicting more damage on the story than he needs to i think this is good, we're moving on, we had clarity. it was in a holding pattern. are we in the land of the runway, taking off there is clarity now i think he needed to do that they lost a lot of goodwill among the advertisers.

they have gone other places. the users have drifted so they got a lot to do to repair the story now now it goes back to if the deal kills. >> what about the status of twitter's business with the advertising market weakening and the stalwarts like google starting to feel the pain >> yeah, the economic head winds are going to put more pressure on all the ad names across the board, meta, google, amazon, go through the list that's a reality we have seen it in every downturn, advertisers turn off they'll turn off the platforms where there is uncertainty twitter is going to face this in the interim, they're going to not have the faith among the advertiser community as we go into an economic storm so they have to act quick. he has got to get the playbook out, get this deal done and move forward. right now it is in a tail spin. >> yeah. well, brent, thank you very much for weighing in. as we speak, we're getting

breaking news on this front. the filing is out, the 13-d from twitter that we have been waiting for. >> probably came out as you and i were talking very straightforward and two paragraphs gentlemen, and it is sent to the lawyers for twitter, on behalf of x holdings and so on and so forth, they basically say, hey, we're ready to move forward to proceed to close the transaction as contemplated on the 25th of april. that's when the deal was signed, the merger agreement on the terms and subject to the conditions set forth therein and pending the receipts of the proceeds of the debt financing so very straightforward. this letter does confirm what we have been telling people and basically is now simply in the hands of the court, and the lawyers for twitter, and it is just subject to them making sure they feel safe almost in a sense that if we drop our litigation, you're going to go ahead with this, right? i'm sure that is the case.

they have nothing to really be concerned about, one would expect, but you can -- you're dealing with elon musk, right? they provide this notice without admission of liability, and without waver or prejudice to any of their rights including the right to assert the defenses and counterclaims pending in the action, that being litigation, including in the event the action is not stayed so they want that to be the case and that's it. so we'll see if we get the stock open >> still halted. >> this would constitute the news, confirmation of his decision to tell his lawyers or i should say his decision to buy twitter for $54.20. >> see if it opens before the close. >> yes. >> david, thank you. stay close, i guess. let's get a check on the market rally now going strong for a second day in a row. looking at the dow up about 674 points or so we're seeing every dow stock higher at the moment and every s&p 500 sector higher.

s&p 500 up 2.5%. the nasdaq up almost 3%. when we come back, we're going to talk to holly neuman craft who is major money manager about whether you should trust this rally and whether we have seen the peak in bond yields. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes.

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we are watching twitter right now, of course it is still halted for news pending. but we did just get that filing, that news, that 13-d came out where the company did acknowledge that elon musk revived his bid to buy twitter for $54.20 a share that was the original takeover, the one he tried to fight in court as our david faber reported last night. he texted twitter it was back on we got the official filing,

we'll see if twitter br ter ope before the closing bell. a pretty broad market rally with the s&p up 2.6%. every sector doing well. energy at the top of the market. real estate on bottom. up 1%. joining us is new burger berman managing director holly newman kroft. if you have to wonder if we're near the beginning of the end. >> i think people would like to think that, sara, but we don't at newburger this isn't anything different than the rally we had this summer people like to hang on to good news we had a good jobs report this morning that continued the rally that we saw from the open. but we're not going to have a recovery in this market until the fed signals they're going to stop raising rates and that's not going to happen until inflation starts coming down >> so i'm not that surprised to hear you say that. you've been on with us before saying you're defensively positioned, stick with quality the thing is, the jobs report, 1

million fewer openings than where we were last time. that's what the fed wants to see. maybe there is some progress, manufacturing was weak this week >> hopefully there is some progress they have been raising rates the fastest they have in the last 40 years. so eventually it has got to have an impact, a desired impact on the market so we can see those inflation numbers coming down. like we discussed before, there are opportunities in the market today, we do want to be defensive and want to position our portfolios today so that they can really take advantage of the recovery when it happens. >> you're just not ready to go there yet. >> no. this market has seen 35 moves of 2% or more this year that's compared to 7 such moves last year. that's insane. so this market is volatile that's the theme of 2022, and it is going to continue to stay volatile. >> where defensively are you positioned >> so we're still underweight equities, but seeing a lot of opportunities in the fixed

income space short duration munis, you can get yields that are almost competitive with equity returns, after tax, close to 5% this year we have taken our high yield allocation and invested it in floating rate funds, that's been a great defensive play down almost 4% versus the high yield market which is down 15. but now high yield bonds are yielding about 8%. we're going to strategically move, you know, move back into that asset class we're focusing on quality in equities you can find quality stocks in every asset class, even in technology, there are chipmakers trading at 30 times and chipmakers trading at ten times. we'll say active management is key. fundamental analysis to buy the stocks that are going to be good value today, and positioned to outperform. >> you like the chipmakers, even though not exactly defensive. >> no. what i'm saying is there are high quality companies in every

single sector. we're still positioned value over growth. we haven't completely exited growth that would be a very big tax bill because let's also not forget, the s&p ten year average is still 50% higher than long-term returns. the ten-year annualized return is 12% the long-term average is 7%. so our clients, your viewers, they're still investing money that had a huge run, even taking into account the downturn in 2022 >> holly, thank you very much. good to get an update from you you're not buying it not buying the rally thank you. technology is certainly extending its rally from yesterday, adding another 3% today. one name that is joining the rally is pc maker hp it is still down sharply on the year joining me now in an exclusive interview is enrique lores, the ceo of hp. good to see you. >> thank you, sara great to be here >> you do have to wonder with the market rallying if whether

we can get ought of this fed rate hiking cycle without going into a deep recession. do you think that's possible given your vantage point >> we continue to be in a fairly challenging situation. at the same time, the new hybrid work -- the new hybrid way of working is clearly giving us an opportunity to expand our pc business to grow into new areas, so despite the current environment we're very optimistic about the potential that we have going forward >> can you just give us an update last quarter there was some concerns around the guidance on what you're seeing right now and consumer spending, on tech, printers and pcs and commercial spending as well how much is that slowing >> what we shared in our call, i would say the trends continue to be there we saw a slowdown of the consumer business. and we started to see a slowdown of the commercial business and i think that trends are very

consistent with those projections. what we are seeing is the impact of the current environment, but the fundamentals of the company remains -- especially the growth opportunities are there and continue to perform very well. >> you mentioned hybrid work you've been following this debate closely, and have a lot of skin in the game. manhattan, 50%, back to work, new york city just as a test case, is it really -- are people coming back to work? feels like in september it changed. but we're not quite there yet. what are you seeing? >> when i talked to other companies, i think overall the percentage of people back to the office is lower than 50% especially in the u.s. and within that going forward is it is here to stay we have found a way where people can really combine with work we also see the advantages as being two companies in the ability to hire talent, in our

ability to reward employees, in different ways and for us, it is a great opportunity because of the new products that we can build, new solutions we can build and new services we're going to be delivered into our customers >> so you think it is here to stay what about the supply chain, enrique? has it improved? >> it has significantly improved too from where we were a year ago. there are still some pockets where we see component challenges, but if i look at the next quarters, i think the situation will be completely fixing very soon. >> the other thing we wanted to ask you, of course, is it is hispanic heritage month. you're one of the few hispanic ceos among s&p 500 companies have we made any progress as companies have stepped up their efforts on diversity and inclusion in recent years, and what are some of the best practices you've seen? >> i think we have made progress and the fact i'm here talking to you today could be one of the

examples but i think at the same time we need to acknowledge we need to make much more progress across all fronts not only in hispanic, but in any type of diversity. i think that what we're trying to do in the company is embrace that very strongly we look at hp as a community, internally we need to behave in tv in the way we think the rest of the world should be behaving. but also as a platform where we can influence our suppliers. we can influence our partners, we can influence the communities where we are and also i think it is important that as leaders we take accountability of the change that we need to drive. we need to be transparent with the progress we're making and hold our teams accountable to make sure we take these goals as seriously as we take our business goals >> and we appreciate it, you shedding light on a number of

topics for us. thank you so much. great to see you. >> thank you, great to see ou. enrique lores, ceo of hp. up next, former barclay ceo bob diamond on what the federal reserve, should they be paying more attention to the squeeze. we'll be right back. (woman vo) sailing a great river past extraordinary landscapes into the heart of iconic cities is a journey for the curious traveler, one that many have yet to discover. exploring with viking brings you closer to the world, to the history, the culture, the flavors,

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we are watching twitter stocks still hasn't reopened. halted for news pending. it has been that way for several hours now. we got the news just 15 minutes or so, that was the filing from twitter. the 13-d that did acknowledge elon musk's revived bid to buy this company for his original price tag of $54.20. looking like they'll avoid any of the legislation and the fight that musk was having in a d delaware court to reverse the deal we got the news. we'll see if the stock opens 30 minutes left in trade look at the financials, making quite a comeback this week as concerns over the health of credit suisse have eased joining us is atlas merchant capital ceo and former barclay ceo bob diamond. good day to have you on, bob, because you used to lead one of these european banks what do you make of the fact that the executives are having to try really hard to assure

their shareholders that everything is okay >> i think against -- this is against the backdrop, sara, of something you and i have been talking about since we formed atlas merchant capital in 2015 that's the competitive strength of the u.s. integrated banks versus those in the uk and europe and, you know, the actions taken by the regulators post the financial crisis in the u.s. around t.a.r.p. allowed two banks, bank of america and citi, who at the moment, without t.a.r.p. were insolvent to become very, very strong they recovered and today they're competing very, very strongly in the the u.s. market and globally and we have seen this across europe royal bank of scotland is still owned by the government. you're seeing the situation and the challenges that credit suisse today we have seen the trials and tribulations of deutsche bank over a decade. so i think the theme here is that the european integrated

banks were not allowed to recover and prosper post the financial crisis, so we're seeing a continuation of that. so credit suisse is in some ways an example of that, and in some ways a separate case >> so you don't sound very optimistic how bad do you think it is going to get for some of the companies like credit suisse as they -- >> i'm sorry. >> what do you think is going to happen here? do you think we're going to see mergers? >> i think over time across europe you're going to see some of the stronger banks acquire some of the weaker banks i think probably seeing that domestically before across border in the situation in switzerland, you know, i think it is a one-off in terms of the performance of the investment bank and credit suisse over a period of time and i think with the markets are looking for is for this management team and it brought in a strong management team with axle as chairman and the ceo and

now the cfo to make some bold decisions around the investment bank and allow kind of that swiss retail bank, asset management, and private bank continue to grow but one thing i can tell you for sure, this is not 2008 this is not systemic this is about one institution in a country, switzerland, with a strong regulator >> would you buy this stock right now, credit suisse >> yeah. i was thinking you might ask me that i think if you look back in five years and you say at this moment, i had to make a decision to buy credit suisse shares or sell credit suisse shares, i would clearly be a buyer. >> you would so you think the credit default swaps, all of that is a bit of an overreaction? >> it is less than 20% of book value. i think the situation with the investment bank needs to be resolved

i think that's priority number one. but i think the retail bank is very strong. and i think that credit suisse has a good position in both asset management and private banking. >> all right that's quite a statement of support. you know, bob, what i asked every time which is are you still planning to take circle public because you have -- you're at the intersection here of two very bad trends with spacs and crypto is that deal going to happen still? >> yeah, let me take each of those in turn. spacs have been around for years and years and years and years. there have been many successful spacs. and then we hit the hot market of the last two years, which is already dissipating. but spacs will be here for a long time. high quality spacs we made an agreement with circle that was to seek approval of the s.e.c. a while ago it has been a very, very strong

collaboration between a acquisition and circle we wait for the approval from the s.e.c. so we can go public we like this business in circle. it is about payments it is a really well run business by jeremy aler we're encouraging the development of more robust regulatory platforms around stable coins we think we would benefit as the most conservative. so, yes, we're very much looking forward to taking circle public. >> i have a number of things, i'll just -- why do we need stable clients the u.s. dollar is up 15% this year everybody wants a dollar, it is most valuable place to turn right now. >> it is just a digital version of the dollar. and i think to say we're not going to have a digital version of the dollar would be very -- >> not from the central bank it is not a central bank digital currency, which could be coming. >> no.

it is not a u.s. central bank digital currency, nor does the fed necessarily have to develop it on its own. the fed did not develop the fed wire the fed wire was developed by private actors and it was highly regulated by the fed. script was not inviciented by te central banks. it was developed by private actors, and then highly regulated. why can't we in america have a digital version of the u.s. dollar that is strong, and in the case of usdc, all of the redemptions, they always will be at a dollar. we had far more redemptions than we have outstanding, and why can't we see a strong regulatory environment -- or strong regulatory body doing their job, which is to regulate the strongest stable coins >> bob, thank you. always good to talk to you especially on a week like this, on those european banks.

appreciate it. bob diamond. by the way, the dollar is weakening. actually down significantly this week, which is part of the rally here still watching twitter shares still halted. but could reopen any minute. let's bring back david faber for the latest we got the filing. why isn't the stock open >> filing and statement from twitter acknowledging their receipt of the letter. it should open any minute now. one would expect it will open prior to the close, 25 minutes from now we're watching that. in fact -- i think they're starting to get -- they're starting to scream and yell. that would indicate that they're getting very close as we said earlier, stock is expected to gap up not quite $54.20, but probably not far from it. we read the letter as was sent last night -- musk is so -- everything he does is just weird. the only way to put it why wasn't there a settlement talks? why didn't they agree it all the things ahead of time that they need to nail down?

not big things, but little things that, you know, you satisfy every other condition. >> not your traditional m&a story. >> no. and there you see, 52 -- >> looks like it is open. >> it will open very soon. but there are a couple of things that twitter wants before it is going to just drop its litigation one main thing would seem to be elon musk has to sign a solvency certificate. it says based on the new capital structure i'm proposing for twitter, i submit it will be solvent. that's for morgan stanley. morganstanley moves ahead with the debt financing hasn't done that yet or he hasn't said anything in the letter about doing that. it is those kinds of fairly obvious, not overly important things, well i shouldn't say overly important, not overly onerous things that need to occur before everybody is going to be a believer here that this is going to happen you can expect that people would perhaps wait until the very, very last minute to believe it, because of everything that happened previously.

>> good crowd here, standing around, around the post, waiting for twitter to officially open we have some indications on the board. clearly stock is going to go up and this removes -- should remove all the layers of uncertainty around this deal, right? >> even if you trade it right in at the top of the bid ask, it looks like $52.50, still a decent spread. but that does reflect this concern on the part of twitter's lawyers who say we're not dropping any litigation. do everything you're supposed to do, including signing a solvency certificate, a couple of other things there will be a spread there once he does all that, it will close very quickly >> and then the hard work begins >> then the hard work begins shareholders get $54.20, twitter is a private company and elon musk owns all of it. >> remember the outrage in the general public, the beltway about elon musk taking this company private and trying to make it into the town square of free speech.

a huge experiment and one that really riles people up. >> it does and it is funny because that is sort of been on hold pending, of course, the expectation that we would be going to court and therefore still unclear whether he would be the owner and would not be the owner for quite some time we're looking at a scenario where conceivable as soon as next week. c he could own twitter it will no longer trade. there is going to be a lot of perhaps consternation in a short period of time here, but it is happening. all the signoffs have been done pending these little things that musk needs to still do to make sure that he's believed. >> you do wonder if this -- if he went through with this now, what the price of twitter, like how good of a deal is twitter getting here >> such a -- this was april 25th, before the downturn in the nasdaq, before the real downturn in the markets, what we have seen -- >> twitter is in weaker shape.

>> the ad market weakened since then there are people who believe that the stock would trade at $15 were it not for the deal he could have come back for it at 20 bucks and put a premium on that and paid a lot less. he's spending way more than he would have if he just waited six months or never done it at all, of course. but that's -- the question i have is also why not try to settle why not save yourself a couple billion dollars? an expectation, sara, the board would have said, we'll take -- >> want to show you it is opening here up 22% or so 51.80. not quite at the 54.20. >> no. based on people being somewhat circumspect about whether he's still serious, despite this letter he apparently sent while he was also tweeting ferociously about ukraine and russia and probably doing seven other things so that's life

why he didn't settle is also a question he conceivably could have gotten off some discount to the $54.20. never know what the board's approach would have been as i indicated many times in my reporting. they felt like they had a strong case and looking for $54.20. that said, was he trying to avoid the deposition later this week his lawyer was supposed to be deposed as soon as today it is possible, maybe there was something that really concerned him about those potential depositions. >> he wanted out of the deal, and their argument was the bots were not as reported and maybe that wasn't as strong of a hand. the analysts -- >> we have known that. based on the arguments they made so far in court, we have gotten the sense his side was at a decided disadvantage and he certainly is a very smart man and could potentially see the writing on the wall. he might have said, hey, how about 50 you get everything signed up and then a press release saying it

is all done, instead of a letter saying i'm going to pay full price. >> never goes as expected with elon musk. he's getting a weaker company because not only has this been a major distraction, they have seen employees leavebecause of it, and the ad market turned for the orse >> and he's going to be the ceo of this company. this is based on my reporting from some time back. so i haven't heard anything different. it is possible -- >> he's going to be the ceo? >> i remember the investors being brought in, the 7 billion we referred to, talked to a couple of those investors and they indicated in the presentations that musk made to them he would be interim ceo pending the appointment of a permanent ceo. now, maybe he's found that person in the interim. so we'll see but it is possible that he will be running that company and spacex and, of course, tesla >> mooring company. >> and the other company neurolink.

>> tesla is higher still 2.3% there was a point where as the deal chances increased, tesla shares decreased >> he doesn't are to sell much more by robert frank's math, very little maybe another $2 billion when you're worth $200 billion, probably just looking -- >> that issue but also the distraction issue. this is a major project. >> that's a bigger issue >> yeah. especially if he's going to have to lead it. >> yeah. leading it, worrying about it. i don't care how rich you are, 31 -- $25 billion of your money in there, that will get his attention. and he's obviously going to be focused on making sure that is money good if not able to actually compound it >> twitter shares are open for first time in several hours, confirming the company confirming that that deal has been revived and elon musk will buy twitter, $54.20. the deal could close as soon as -- >> we'll see if you get all these little things signed off on we talked about, and that the court agrees

to, and that the litigation is dropped, that takes a couple of days, then it is just up to morgan stanley if it wants to exercise its right to try to market that over 15 days or says we wave that and could close next week. >> twitter up 22% or so. 51.95. we're going to keep following twitter for you. also up next on the show, hasbro ceo on the toymaker's sales guidance cut and whether that's a red flag for the holiday shopping season. still a nice rally up 765 on the dow. we'll be right back. nd ordinary. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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samir is here. we have hasbro ceo chris cocks on investor day. we're seeing a sizable and broad rally for the second day in a row. it looks like we held the gains, up 700 points on the dow s&p 500 up more than 2.5%. and the nasdaq up even more than that right now up 3%. this whole rally is about yet again reassessing the fed rate outlook. this week in light of some weaker data on manufacturing and job openings does that make sense to you. we have been fooled before would you get back in? >> it makes sense, but it is probably still too premature, and seems like the market is trying the jedi mind trick, you will cut rates nothing on what the fed is saying suggested they're willing to cut rates next year if anything, everything they're saying is suggesting that inflation is corrosive they're words, not mine. and that it is going to linger for some time and take time to bring it back down

for all those different reasons, the lower end of the range, 36, 3700 there is no reason to change this rally high. >> yes you are defensive, just like holly newman kroft was earlier shares have been all over the map today. they initially fell sharply as you see, they initially rose and fell sharply after the company issued guidance and had come back into the green at 2%. they cut guidance for 2022, but also announced a big restructuring plan where they'll cut hundreds of millions of dollars in costs over the next three years and outlined a new strategy for driving sales and profits. shares are down more than 30% on the year joining us now is hasbro ceo chris cocks, thank you for joining us fresh off that investor day welcome. >> thank you for having me, sara >> first, on the guidance cut, what is it out there that you're seeing right now that is weaker than expected? >> we knew going into 2022, q3

would be the toughest of the year and it manifested that way. as we look for the balance of the year in q4, we see a growth quarter. we have some concerns around particularly some entertainment deliveries, which caused us to have a more measured guidance for the full year. that said, we think q4 cues up our new plan, blueprint 2.0. it includes a blockbuster lineup of entertainment, which starts off with "black panther" in november, follows that up with seven consecutive blockbuster mo movies, two of which will be our own. and following that up in july with "transformers: rise of the beast," the seventh blockbuster film in the transformers franchise. we have our nerf gel fire blaster and word of a party game based on wordle. and we announced an all new cost savings initiative and operational efficiency initiative that we see having

rising impact quarter over quarter. >> do you think the street -- you talked about entertainment and refocusing the priority businesses and the key brands. do you think the street understands the strategy or thinks of you as an old school toy toymaker what is the disconnect >> i think the street appreciates the power of the blueprint. it has been a great strategy for us over the last decade, driven a tremendous amount of return. over the last couple of years, as an industry, we had to deal with covid, had to deal with supply chain challenges and most recently inflation i think the strategy we outlined today focused on fewer bigger more profitable brands leaning into our gaming strength, $2 billion super high profit high growth category for us and the 250 to $300 million of operational run rate cost savings that we can achieve over the next three years i think our investors and analysts were impressed. >> where are the cost savings going to come from

layoffs? >> a combination of what we call labor and nonlabor labor includes contingent staff and full time staff. nonlabor includes systems, inventory and a variety of other aspects of our corporate overhead the first half will be a little bit more focused on labor. the second half will be more focused on nonlabor, particularly as we make the system investments to drive our supply chain, drive our improved demand planning and gain efficiencies in i.t. >> what about the macro environment? there are worries about discretionary spending, especially going into the important holiday season for you. you told me before that you think that games and toys are, i don't know if you used the word recession proof, not as -- more immune than some of the other categories is that not what you're finding? is that why you lowered numbers? >> toys have proven again and again to be a resilient category in bad times and we continue to see the toy category up this year. games likewise tends to be a

very economically resilient category and biggest brand which we announced as our first billion dollar property, that's grown for 12 out of the last 13 years and we expect this year to be another growth year that will be 13 out of 14. so in general we find a consumer holding up, inflation is a concern. and, you know, that contributes to our measured outlook for the company. >> are you passing along higher prices is that still happening in your portfolio? you dealt with supply chain issues like everyone >> we have had price increases over the last couple of years. that's basically been to keep up with the rising costs and our supply chain however, we are seeing some indications of abatement, particularly in logistics costs over the last couple of months that we expect to continue into 2023 and '24. >> so how -- you're putting your stamp, new ceo on this company, and announcing all these new strategic transformations. how different is this company going to look in the next year or two than where it is right

now? >> well, i think the biggest thing is it is going to be far more profitable. we announced today that we have a plan to improve our profit by 50% over the next three years. our free cash flow is going to be over a billion dollars by 2024 and we're going to be driving a lot of incremental discipline into an already great company, driving an extra 250 to $300 million of cash savings per year, which at our current multiple, that's worth about $4 billion of enterprise value gli th >> what about entertainment? you started by telling me that's g going to be a big focus. you have a slate coming out. what does that look like and what do investors need to know about the cost benefit analysis there? >> yeah, i mean, our entertainment road map is very strong going into 2023 between hasbro and our partners, we have six blockbuster coming out between january of next year

and july of 2023 plus a host of scripted and unscripted content from our partners at disney as well as from our teams at e-1. in terms of entertainment, hasbro has been in the entertainment business since the 1980s. it continues to be a source of strength and resilience for our brand blueprint. and something we'll be continuing to invest in, particularly on our hasbro-based ip that really drives that blueprint flywheel of digital engagement, merchandise and licensing. and i think you'll see over the next couple of years we're going to double our overall investment in hasbro-based ip entertainment and that's going to runt gamut from blockbuster movies to reality tv or unscripted tv shows like "plato squished." >> you should do a guess who one. that's really what the rage is in my household. thank you. chris cocks, ceo of hasbro, thank you. we're watching twitter blue,

to twitter all hour. they did just reopen moments ago and they have been surging up 22% after the company said it received that letter from elon musk and he intends to close the transaction at the original price. $54.20 per share julia boorstin joins us. julia, what insight can you share as to why this is all happening right now. >> sara, all about the timing. we're less than two weeks to go from when the trial is set to start on october 17th and elon musk was set to do his deposition on thursday and friday of this week. he must have been consulting with his legalteams, looking a his options. i know from sources i'm close to the situation that twitter always felt very confident that they had an iron clad deal and now it seems like elon musk is realizing that none of the things that have happened in the past couple of weeks worked in his favor. that's two key things here first, the whistle-blower. that whistle-blower came out with very harsh criticisms of

twitter, but none of them really supported elon musk's case and then there were those text messages that came out last week as part of the discovery for the trial. it indicated in the texts that musk was aware there was a bot problem and knew that would be part of his job to fix it. it also i have to say the texts didn't make him look that good, made him look like he wasn't being constructive in his back and forth with twitter ceo >> got it. really good color, julia, thank you very much. keep it coming as we monitor this developing story. julia boorstin we have just over two minutes to go in the trading day. samir, you say stay defensive. you're not quite convinced that the market has found a bottom. you miss these powerful rallies if you're sitting out of the market what is the strategy right now it is not going to be like, one day the fed is going to pivot, right? and that's been the bottom, is that what you're expecting >> that's a great question

what we have been telling people is on the down days, feel free to provide liquidity in the markets where liquidity is so scarce, on the down days you get some pretty spectacular moves and for investors who are thinking, over the intermediate to long-term, we have 4300 to 4400 target for the s&p 500 for next year and we have been saying if you can buy this market, you're going to be feeling pretty good once the economy starts to turn sometime later next year. so to your point, please don't try to turn down the market. try to keep putting money to work over time and you'll look pretty good. >> the market always looks ahead. ahead of the fed, ahead of the turn what about tech in particular? i wanted to hone in there. nasdaq up 3.2% now, up more than 5.5% for the week. the hardest hit going down on these rally days, you're seeing tremendous strength, do you have a strategy there on how to capture the upside on days like today, without getting into

some of the risky business that gets really hard when there are fears of rising rates. >> we think tech, energy and healthcare are sectors that can play both in the middle ground kind of period, we're going through a transition and lead on the other side as well we think consumer discretionary, which a lot of people lump with tech, which has e-commerce and ev players, we think that will continue to struggle again as the consumer feels the most pain next year, that's when we think the brunt of the recession hits that's how we would view growth as a whole, would be tech would be our favorite play there, comp serves and discretionary is unfavorable. >> samir, thank you so much. as we head into the close, look, the dow is up 800 points, near the highs of the session. every dow stock is higher now. in fact, this is the dow's best day since may 4th when the dow gained 2.8%. so far, for the week, we are

nicely higher on the two-day to start this week. s&p 500 looks like it is going to close up 3% again, best levels of the session right now. the nasdaq also sharply higher, up 3.3%. small caps up almost 4%. powerful rally fuelled in part by a weakening dollar and lower treasury yields, another rethink of the fed rate outlook. now to "overtime" with scott wapner sara, thank you very much. welcome to "overtime." i'm scott wapner you heard the bell, we're getting started from post nine at the new york stock exchange in a little bit, i'll speak to a market watcher who says this rally could go another 10% to 15% higher from here plus, the latest on the musk twitter deal about to go down. and at the original price. we begin with our talk of the tape this dramatic two-day move for stocks, whether it means the lows are firmly in for the remainder of this year