is a miss for alcoa on top and bottom line. reporting adjusted earnings of 7 cents per share versus 13 cents the street had been looking for. revenues of $5.57 billion falling short. drag primary metals or smelting and refining business as aluminum prices decline 27% this year according to alcoa. given the recent weakness in china and the effect on aluminum, the ceo and chairman telling cnbc comments about that country. >> pretty much on all segments lowered the numbers on china. you have to put it in perspective. it's not like falling off a cliff. for alcoa, what is important is in the value add business, the markets that are important us to or the developed markets. we feel like a breath of optimism. >> alcoa lowered its estimate for lower production in china to up 1% to 2%. also reduced its heavy duty truck production outlook and reduced its commercial building and construction sales outlook for china. kleinfeld expects global demand to increase this year and expects a global aluminum deficit in 2016. the conference call is

shares of alcoa dropped initially on that report in after-hours trading.uring the rg session it finished slyly higher. despite the disappointing quarter cnn klaus kleinfeld called his company resilient. >> if you look at what's going on in the market, you see there's a lot of volatility that's in there. from commodity prices to currencies, to worri over china, emerging economies, interest rates. and if you look at that and then reflect it to our quarter, i think you see quite a bit of resilience in there. >> morgan brennan has more on alcoa's quarterly results. >> reporter: alcoa earnings and revenue missing expectations with the biggest drag coming from its primary metals segment or the aluminum giant's smelting and refining operations. the company reporting a $59 million loss in that division as aluminum prices have plunged 25% this year. as we've seen throughout the commodity complex, it is a story of oversupply exacerbated by the slowdown in china, which is the largest consumer of aluminum nu and many other industrial metals. still the company reiterat

alcoa did the same. they lowered their forecast quite a bit but even came in below those lowered forecasts. are there smoke and first roars here? are investors being led along to put a rosier picture on still an ugly pig? >> frankly they are trying to manage the situation where they themselves don't quite know what is happening in china. really is about china. i was chatting with some cfos recently who were saying they saw a sharp fall in demand in china at beginning of summer. the question they're trying to work out, is that down to some kind of inventory readjustment, in which case demand bounces up again later in the year or step change of level of demand which means this could get worse and worse? perhaps one of the most interesting things to watch although consumer prices in china are holding up and consumer goods are still being sold, it is producer prices where you're really seeing deflationary tendencies right now. that is why alcoa is hurting. david: guys, thank you very much. gillian, kimberly,

this is what the new alcoa is.an you please describe how this particular value added piece of material is the new alcoa you should be thinking about? >> well, i mean, what you have there is a 3-d printed metals piece and in fact, it's actually the 3-d model of the alcoa logo. i don't know if you have seen that, right? and you can see also it's very, very fine resolution and this is made out of metals powder printer. the interesting thing in this business, i mean, the powder it's the most critical thing in this. we have announced a few weeks ago that we are actually building a powder facility for those type of applications outside of pittsburgh. so we will be making what i would call the smart ink for metals part of printing. we also at the same time said we have developed technology called mp forge where we can use other 3-d printing in metals and make them through other processes. make them as hard and as stress resistant for applications that today are not those type of things are not usable. so that's one part o

for a free 30-tablet trial go to cialis.com >>> alcoa missed. can see what's happening in after-hours trading. lower than 4%. they had a tough couple of years. what happened with earnings today probably speaks exactly to why they want to split up the company. >> exactly. the commodities part of the business really was very bad. the engineering was a record for them. >> not a surprise. they had a double-digit rally from the lows. expectations headed into print on the high side. what he is talking about globally was not a surprise in terms of auto production in china. let's see how this trades. >> does this portend for the rest of the earnings season or a commodities story? >> i think it's a commodity story. is it value versus growth? is it really the cyclicals laggards that are going to continue to lead? >> don't forget about the tomatoes. >> it's a long story. >> appreciate it, stephanie. >> "fast money" with alcoa's conference call is next. >> live from the nasdaq market site overlooking times square, i'm melissa lee. netflix's biggest bull got

alcoa is looking like a sad face. a sharp drop on lower aluminum prices and the impact of the strong dollar. the company earning 7 cent ace share and missing analyst forecasts of 13 cents. revenue fell to just under 5.6 billion which also fell short of estimates. prices are down 14% this year. major slow downs in markets in china. car production is only expected to grow by 1 to 2% down from the company's own forecast of 5 to 8% just three months ago. heavy production in china is expected to drop by more than 20% and on cnbc, the ceo addressed issues in china. >> we see that demand for aluminum is going to grow 6.5%. we also see that we are going from a slight surplus into a deficit. that's at least what we're expecting for next year. we also see that there is no export into the west. it's come to a slow down. >> they announced plans to split in two separating it's primary aluminum mining and refining business from its specialized metals division. it's due to the auto industry shifting to lighter sterilmater and strong

alcoa is out after the close. now alcoa kicks off u.s. earnings. it's that time again. 13 cents in the third quarter according to a fact set poll down more than 50% on last year. last quarter alcoa missing expectations having out paced forecasts in all but one of the previous 13 periods. shares jumping by almost a fifth though in the last ten days since it announced it would split the company in two in the next year but let's dive into the numbers. chief investment officer joining us from new york today. i guess when half of the world demand comes from a slowing economy like china it still might be tough. >> that and the fact that commodity prices are under a lot of pressure. that creates a real problem for the part -- one of the two parts being split off. the upstream. now ultimately the price will all start to consolidate at a lower price and start to gain some strength. the other issue will be china and how much control it has outside it's control now and will probably continue to do so so that part of alcoa will be under pressure for quite awhi

you mentioned alcoa.ditionally kicks up the earnings season, the stock is down after getting hit by earnings. aluminum prices continue to be lower. this is not the end -- >> this stock was below eight dollars near the end of august. tosaw a huge move up only report a dismal quarter. i saw a lot of institutional put buying happening. traders are expecting further downside in alcoa, $9.50 by december expiration. julie: what would you are trade be to benefit from that sentiment? >> i want to buy the exact same line of puts i'm seeing these institutional money flowing today. the december 10 strike put 450 three cents. they are treating a bit higher now. $.53. a couple months ago, this was below eight dollars. julie: an upside catalyst come of the company will be spinning off its aluminum producing business. one would think that could potentially help the stock higher. would think that but we are seeing a lot of selling happening this morning. even after we had a huge move lower, players are still betting on a

it's not just alcoa.s in the s&p 500 showed accelerated revenue growth i'd expect 20-something. if you don't have revenue growth and earnings growth, you need to tell wall street i'm going to get by company back and do exactly what alcoa did and do a split. this is where the story telling and the narrative shift is different. you go back to the beginning of the year. earnings estimates for the s&p 500 were up 5 to 10% for the year and now it's down 4% at best and that's a huge problem. maria: it's largely the energy space. >> that's what the bulls would like to say. maria: that's the bullish argument? >> if you back out of energy abc is happy? that's not true. you look at industrial and they have the same decline as the actual earnings growth expectations and revenue. dagen: i'm long michael for the weekend. maria: nasdaq, and all trading higher. we'll be back on mornings with maria. xerox believes finding the right solution shouldn't be so much work. by engineering a better way for people, process and te

. >> alcoa catches china's cold of the largest aluminum producer lowers it's supply forecast sending shares down in after hours. >> vw feeling the heat from congress as the u.s. chief michael horn blames individuals for that emissions cheat. this as they say the fine should fit the kicrime. >> there's talk between europe and the u.s. on what reasonable and effective fines will be. let's not go over the top here. >> shares in glencore jump after they will battle zinc production. the move lifts stocks across europe. >> hi, everybody. good friday morning. glad you're with us to wrap up the week together. our european equities this morning flat to a little bit higher. the shocks europe 600 higher by .5% now. our main european equity markets this morning, this is what we're looking at. ftse up by 0.3%. ftse mib by .5% as well. quite a bit of green. our memories escape us. let's see what type of week it's been so far. since monday's trade we've seen a rally there. the ftse 100 on the week higher. the dax up by .5% and the cac up by 5.5% and ibex up by 6.5%. we saw a big sell off taking pla

alcoa reports earnings after the close today. this is an earnings call that a lot of people look to divine information about how the market is doing. what can we expect? thatday we will expect typical rundown of alcoa market and those businesses where they operate. we've got the so-called downstream companies that sell andspace components, car truck makers, that gives you a read on the u.s. european developed world consumer growth and then you've got the other half of the business, commodity producing business. this tells you about growth in the developed world. we've got a tale of two companies. david: alcoa announcing they attend to split. i'm curious what we can divine about the company from metal prices. we have seen we didn't demand in china. thing that is the defines the strategy of splitting up. half of the company has been doing very well for years. iny have been investing building organically. they have been buying companies. profitability in the downstream division that makes products go into sophisticated markets. that

alcoa is going to open slightly lower. how about oil?t's been on a teare weust like stock this week. $50 a barrel this morning, 50.20 to be precise, yought now what that means? gas prices are going to go up again, they have overnight. and now we're at up 32, that's the national average, now this, i'm gsling to say the g.o.p. is in disarray, maybe that is an understatement. the question of the day is, have the repesslicans handed the election to the democrats because they can't elect a speaker? do repesslicans want to fight or do they want to govern? daniel is here, a former member of the european parliament and the author of the book "inventing freedom. & daniel, you bring i'm gsling to say the outsider's perspective here. you're an english guy, you're european. >> i'm certainly not european, i'm british. stuart: you're looking objectively at what is going on. the republicans are in total disarray. they've handed the democrats the election? >> i can't say it. maybe my distance is making me blind to something. i don't see any connection b

what happens, watch alcoa. that's the key to the market. alcoa did report a bad quarter. now stock going down. i think you have to watch the metals. the glencore news today about the zichnc, that's so good for vale. >> are you saying something positive about vale? >> you have to get real about the reale. >> i will focus on getting real about that. why? >> israeliing. >> are they out of the woods? >> no, but petrobas and glencore kept me up at night, now netflix keeps me up at night. did you see the story in the "new york times"? 1.04, drops to 1.02, can you imagine the stock up 12 points off a dollar increase? no sense at all they would do this. there is no -- david, you pay $15 a month if you got to watch "narcos." >> i might. i might. >> i was at best buy last week. none of the guys have tvs. >> what do they have? >> 65 million members. at netflix. a lot of money. >> look -- >> what are their programming coasts? how much of this is a result of them being able to pay that bill? 4 billion, 5 billion. >> david, they know -- i asked about "narcos," i'm talking about a show

alcoa announced plans last month to split operations into two companies this year. this is marking unofficial start of earnings season. it is on. >> it is official. a lot of these companies are likely under pressure with the strong u.s. dollar. when is the last time your company asked you to work for free? "new york post" says urban outfitters is asking salaried workers at home office to volunteer for extra weekend shifts at a new fulfillment center in pennsylvania. the company needs workers to pick, pack, prepare, packages for shipment. employees will get lunch and a ride to work if needed in exchange for working about a six-hour shift. at urban outfitters spokesman said this is common in the industry when there is a new fulfillment center, cheryl. >> turning to incredible story about bill gross. he was fired up after being fired from pimco last year. now the bond king is suing former employer and his parent company, allianz asset management for $200 million for breach of contract. gross also claims that pimco plotted to drive him from the firm he co-founded becaus

alcoa, we have hold recommendation. it is in materials space right now.part like cast parts. liz: sam, thank you on a day we had such news flow, wonderful to have ball last to the ship. sam stovall, capital s&p i.q. i go to david asman to the lori rothman. everything from kevin mccarthy. >> we still have whole another hour to digest. david: fifth straight day of gains of the we haven't had that all day long. of course a lot of stuff happening inside of the beltway. even political insiders were flabbergasted, no other word by the news moderate republican kevin mccarthy was bowing to the tea party pulling out of the race spore speaker of the house. john boehner just said he will stay on but few conservatives will be content with that all it takes of the breaking story coming this hour. >> david, liz mentioned we're waiting for alcoa's numbers, late "earth" quarter. third quarter. unofficial start of the latest earnings season kicking off any minute. [closing bell ringing] this is the worst -- for the s&p 500 in six years. we'll bring the numbers, as soon as

alcoa. by the way the bonds were updated this week. i think that alcoa is not getting its due for the amazing breakup into the two companies. a higher value added products play and a low cost commodity maker. this is what people have been waiting for. and i think that the two pieces are going to produce terrific returns maybe even both of them will go up. although obviously i like the value added business more. that's one point at the downside of alcoa and four points up. i caution, you may get that point down first. finally, friday is a white day. but we'll get a shareholder meeting. one of the most disappointing stocks this whole year, the 3-d printer company. i wanted to put this in front of you because 3-d was a craze, a cult. people used to show me how 3-d printing worked and it ended with a bang. that is exactly what can happen when cold stocks -- check your portfolio, hit the wall. it's what this market has become. for so many high fliers. so here's the bottom line. brace yourself, we are plunging into the earnings playoff. they

they want to hear more details of alcoa's plan sometime next year. there's the numbers for you. >> nicole: sony is moving to selling half music industry, contract with coowner the michael jackson estate. one party to buyout the oh, sony catalog which includes the copyrights that move beatles song, value at around $200 billion. >> cheryl: wow, a lot of music. here is a look at the wall street journal. fugitive a former executive. sold 65 million of series of fraud over the decade. sab miller, rejected a takeover proposal from busch. becoming basically a tense negotiation from number one and two brewer. samsung say that is the personal information of mobile payment was not compromised despite reporting hacking incident at loop-pay, a u.s. start-up it bought this year. good news for some folks. >> nicole: indeed. chicago cubs move on defeating pittsburgh pi rates. pitcher predicted. >> different -- i could just think in supervoal victory. after a week long traders in china got back to work. they were in buying mood. after four up days, they are looking

the biggest aluminum producer, alcoa, missed estimates. he with more is caroline hyde.aroline: big slump in terms of profitability. upon us, ouron is cobalt always kicks it off but it was a gloomy start. sales down by 11%. itnwhile, the prophet we saw seems it is half of what analysts had been expecting. no wonder we saw shares dropped 4% in after-hours trading. the reason is the glut that we are seeing currently in aluminum is all about china. this is the issue, china has been ramping up its supply. supply up 28%, down go the prices when you look at aluminum. half of where they were in 2008. they're down by 20% so far this year. up, butld a creep back the supply and the glut is endless. this is what the pressure has been building on the likes of alcoa which is the number one producer of aluminum in the united states. it is taking drastic action. they are split in the company in two. has been going really well for the business. he has been focusing on new areas of the business, meanwhile the legacy part of the mining business will be brought into two it could be investm

uh that sort of thing. 35:38 quad cities united and alcoa sponsored the 5-k race. more than 70 people attended. the iowa hawkeyes pull into their bye week in perfect undefeated and up in the polls again. after saturday's win over northwestern the hawks have jumped to number 12. it's their highest ranking in years. things looked bleak early on in saturday's game when jordan canzeri left with an ankle injury. but akrum wadley was "johnny on the spot".. he ran wild for 204 yards and 4 touchdowns. the hawks stacked forty points onto the overwhelmed wildcats. the hawks now have a chance to heal as they take a full week off before hosting maryland a week from saturday. meanwhile cyclones falling to the one of the leaders in the a-p poll. saturday night they fell to number four ranked t-c-u. they managed a tie game... 14 to 14 in the first quarter. and even led by a touchdown... but in the end, it was the horned frogs... 45 - 21. tcu falls in the poll for the second straight year after routing the cyclones. next up for the cyclones... baylor... who comes in second in the

it's the largest contract ever with the plane manufacturer for alcoa. also initiating coverage of the stock with a buy rating saying the stock's current valuation and with a pending split into two companies, alcoa's upstream assets, basically the mining and smelting pratoperations, can be, quote, for free. alcoa reports later this week. you can take a look at shares up right now more than 8%. mandy. >> >> thank you very much. to the bond market now. rick santelli is watching all the action there at the cme. hi, ricky. >> hi, mandy. it seems to be risk on versus risk off these days. thank you federal reserve. we know that the employment report, actually back-to-back employment reports were jobs light so let's look at what the markets are saying. if you look at a two-day on the s&p, we rebounded friday and we continue to rebound. that set the stage. 10-year note rates. if you blinked and missed the 1.99 settle under 2%, it was a close call but the two-day chart shows we're building that cushion. it's hard to keep the 10-year at or under or near the 2%. wh

joe: alcoa is falling, off 3% on the news. scarlet: it's a pretty dramatic chart. you can see all of these charts and the ones we just went into on our twitter handles. market saw how the reacted to federal reserve minutes. we want to see how a top view them.s going to we have michael from rowley, top j.p. morgan economist, in the studio. joe: did anything stand out to you apart from what you heard of the september press conference? michael: not really. a surprise. we heard a few people from the fomc say, hey, it was a really close call. yellen did not seem to convey that in her press conference. it turns out i think she gave a pretty accurate picture, because it sounds like most of the committee was fully on board with her pretty dovish message. more dovish rhetoric, the indianapolis fed president saying he is open to more negative fed rates. what do you think about that? do you think that is warranted? not think he is representative of anyone other than himself. yellen, you may recall, was asked about this, and she said we are not considering negative rates at al

david: learning from alcoa last week. a bit disappointing.pany a lot of people look to as a bellwether for how the economy is doing. i think alcoa should not be a bellwether. i think we should say that now. i think it certainly has its challenges with the upstream and downstream. i think the split makes a lot of sense. not just the split in valuation differences. also, if you look at the type of mentality in the mining business, it is all about cost-cutting and will be for a while. the very longer cycle. i think the company still has to prove to the world growth of the divisions will grow and make sense. david: what do you see when you see the price of aluminum today? do you you think we're at the bottom? of aluminum. we have seen some evidence of closure. some example in the u.s. of closure as well. potentially more if prices stay at low levels. aluminum demand is growing. it is growing like 6.5 percent this year and should continue to grow mid single digits in our view. that is a very important distinction. aluminum has a much better outloo

i would much rather use alcoa doesn't -- they actually have a 3d product, alcoa is a technology ycompany. yum, when you go to a european yum, not up to snuff. easterbrook is taking a brand, you know i'm a fan of easterbrook especially after that conversation we had. after i compared their big mac unfavorably to goodyear tires. mcdonald's is making a lot of changes. yum is making changes but going in the wrong direction. i'm not there for this. >> i didn't see that number there. let's call it 70 bucks, maybe below that? >> yeah. >> still talking around a 20 multiple -- >> how is that possible? is it chipolte? >> my question to you then is what is an appropriate multiple given what we're seeing from this company? hence where should the stock be? >> when you have a shrinking earnings base, it's hard to come up with a multiple. i would tell you that to have that level of multiple in an uncertain environment seems wrong to me. that's a takeover and break up premium. if you have to look at this company as a regular restaurant chain you would put it in the bottom quarter. >> to be clear, you do

falling, while alcoa what surged the most in nearly four years after signing a $1 billion supply dealairbus been the stock has rallied percent and the surprise investors to split its business up. 9.3 3% up overnight, and ge led industrial gains in the u.s., rising 5.3%, and the s&p capped its longest rally this year, up nearly 2% on speculation that the fed will delay the rate hike, and let's get more with jack, who joins us now from chicago. jack, really great to see you. let's talk about wall street. the longest winning streak we have seen this year. has the worst been priced into shares now? jack: well, i think for right now, perhaps it has. we had a bit of a bounce back from an oversold condition. we also tested those lows that we hit act in august, so i do think that at least from a technical standpoint, i can we rationale for this bounceback very near term. however, it does beg a broader question, and that is does the fed really have our back? i would love to say yes. but they really do not have much firepower to protect risktakers in the event things go south on this economy. y

we heard from alcoa. they had a very bleak outlook for us. environment for you guys is tense at the moment. tell me, just how difficult is it right now? >> it is difficult for all of us in the commodities world, there's no doubt about it. we are trying to pace out the difficulty with severe cost-cutting programs across the sector there's severe cost inflation that is helping. oil and gas are coming down. still, it's very difficult. >> what we've seen in the last week or two, glencore has made a number of announcements. they're taking some of the supply out of the market. russo is the biggest aluminum producer and alcoa. do you expect they'll cut back? what glencore is trying to do is be the opec or swing producer. >> that's true. if you have cut backs from majors like glencore, that makes a difference. aluminum is very widely had across the world. the chinese hold the charts and they have so many of them. i don't know if they're ready to cut back to find a balance in the market. >> can i just pick up on that? you're saying that the chinese do

that is the most frightening pattern in the entire chart book and alcoa had traced it out.ught we were out of the woods. what was happening during that period that the head and shoulders pattern flagged. europe and china began their slowdowns and started the turn that the ceo had started to execute. still, it was aluminum. over the course of the next few years, he made them less dependent. one that cost the trust quite a pretty penny. mea culpa. one of the things i admire about technicians their intellectual consistency. an inverse head and shoulders pattern signals the opposite. at the beginning of january 2013 lots of people thought that the economy was taking off and investors were running for the food and drug stocks the ones that you don't need a strong economy. and they were headed to the cyclicals, caterpillars, the kind of rotation is the death nell for stocks that go higher only when the economy is slowing. however, tim collins said you know what, jim, you ought to take a look at pfizer because the stock was tracing out a reverse head and shoulder pattern. they wou

shares of alcoa trading flat after earnings after the bell. get to morgan brennan with a preview. >> unofficially kicking off earnings season. and the street is looking for 13 cents per share on $5.65 billion in revenue. now, that eps estimate renting a 59% plunge year-over-year. analysts expect por weakness in alcoa's upstream operations, mining and smelling since aluminum prices declined last quarter. we're looking for comments on china which a top consumer and blamed for the supply gut. their ongoing push into manufacturing parts, that should continue to show signs of gaining ground. the company announced two major supplier contracts with airbus and lockheed martin. but the biggest focus of today's conference call is likely to be alcoa's plan to split into two publicly traded companies in the second half of 2016. analysts and investors are looking for more clarity on the capital structure and the state of the upstream portfolio. shares are trading flat ahead of the quarterly results after the bell. >> be sure to catch our exclusive intervie

alcoa, remember, part of alcoa that was bad actually needs a stronger dollar.t bad. >> see, look? i have a new moment. i have to click on that. >> moments are good. northern lights. >> i'll tell you what it is. it's so important from twitter, i got to click on right here. i know this. i know this. i already knew this. >> i'm sponsoring an ad next to you. i will periscope on the way home. up periscope. >> are you periscoping yet? >> is that dirty? >> what? >> what is that? i'm going to look up urban dictionary what is periscoping. >> oh, boy. >> we'll talk about it during break. >>> when we come back, nominees for the rock 'n roll hall of fame are out. and check out the -- >> oh, my god. >> oh, boy. the futures so far -- >> it's not dirty. >> up by 57 points. the nasdaq up by 12. we are on track for the best week since february for the dow and since december for the s&p 500. stick around. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph,

more earnings including bellwether alcoa, how will this factor into the earnings season. jonathan, jo ling kent, our own jo ling kent, lived in china, knows it well. she says we're only see the tip of the iceberg, iceberg being downward movement in the economy. do you agree? >> path of least resistance for stocks, chinese equities and our own stock market certainly is down. when you see a move of 20% decline in yum! brands, this is not a microcap company. this is a pretty large company. she was seeing real surprises to the downside in large cap companies particularly in china. despite the bounce today and last couple days i think path of least resistance for stocks is still down. david: jeff, companies like alcoa, reporting tomorrow, they have huge exposure in china, will they be crushed the same way yum is? >> i take a different tack on that. i think china is slowing. i think gdp growth will center around 5%. i don't think china implodes like a lot of other people. i've been hearing that for six years. i don't think china will -- david: how do you explain what happened t

>> we are looking at alcoa numbers coming out on thursday. they know the alcoa numbers. low commodity business and business and transportation industry. i think, you know, companies that are less relying on energy, less relying on emerging markets, more relying on consumer will do well going forward. >> maria: all right, i will take your take on the fed. so we will come back to that. rich peterson, thank you very much so much. announcing a major cheerios recall. >> cheryl: good morning, marÍa. recall due to allergy risk. they are labeled gluten free and maybe contaminated with wheat. that's where the company says wheat flour was introduced into the batter. those boxes are no longer gluten free and may cause discomfort with people with celiac disease or gluten free or maybe want to feel energetic, miley cyrus. before mornings with marÍa. insider trading scandal. what that means in fantasy football. we will tell you who he thinks should be taking the blame and how he sees the current environment. ben bernanke joins us this morning. ♪ ♪ ♪ ♪ >> draft kings play on each other

alcoa, which unofficially kicked off third quarter results, reported a big earnings and

earnings kicking off tonight with alcoa. expectations that couldn't be much lower. joe, interesting market action thus far. we've mentioned the streak that we've been on. you do have a lot of these big technology names. as we speak, rolling over, the guys on the previous show were just talking about ebay, but it's more than ebay. it's google and amazon. it's facebook. it's netflix. apple hasn't been participating. what's going on? >> i mean, before doug got an e-mail about the -- you got the fangs getting hit. you've got technology, health care getting hit, and it's all about energy. it's a rotation back in energy. wronk that's going to defeat the up trend and the momentum that the s&p has right now. i think that's going to continue. i expect oil to bust through $50 very quickly. it will all change for oil. it will all stabilize for oil with the presence of the russians and the middle east. pickins -- t. boon pickens talked about a new sheriff in town in the middle east. i think oil will continue to push the market higher. i know pete is seeing big paper in there as

you've got alcoa is looking very good.s of names here, chesapeake energy, the energy names are moving along. so, jim, where would you be putting the money right now? >> look, i can't speak for other companies, but i'm sure they're all renewing. let me tell you something, the price has jumped considerably. i'm not talking biotechs, i'm talking health care, the affordable care act and an industry that's consolidated. to me, the health care sector continues to be a place where i think they have pricing power over their customers, and it's a benefit. liz: we cannot ignore general electric, it is jumping 5.5% on news that nelson peltz is tinkering, putting his fingers in the soup. >> we could ignore general electric, investors have for years. [laughter] liz: exactly. >> however, i don't want to be just the latest person to say this, but the company really is setting up for -- set up for higher earnings. earnings are depressed on several fronts including the oil and gas. the business has been derisked because the ge capital port

nicely today. 5% of the news of getting involved with that company and up more than 5% on the day, alcoa, huge win today, up 8- 9% after signing a billion dollars contract with the european airplane maker, that's been a good day for them, up 9.3% and, oh, by the way, that the nasdaq is back into positive territory for 2015. the only one of the major market exchanges to do that. so good news for the nasdaq back in the positive for 2015. how long will this last? i guess as long as the weak economic data comes in >> all right. that's what i was going to ask you. what did traders say about tomorrow, ashley, very quickly >> well, they think -- a guest in the previous show said there are there is some good value but how far can this rally go before we understand the causes of the rally is because of weakness. there's only so much good news in that >> ashley webster, thank you so much >> yeah. not too shabby. the rally today giving some life to the s&p, which has seen its longest streak and finally leaving correction territory along with the dow and the nasdaq. but billionaire carl icahn is not

alcoa, which unofficially kicked off third quarter results, reported a big earnings and revenue miss

we already got the start of the earnings season thursday night when alcoa came up with numbers that actuallyorked not as good as expected, and that stock was one of the few heavy losers here on wall street. next week, we will get all of the big financials, the bank of america, jp morgan, citigroup, goldman sachs, wells fargo reporting earnings, and then we will get a bit of a better idea of how strong earnings season might be. >> thank you very much. opposition is building up across europe against the transatlantic trade investment partnership. there is a large demonstration scheduled tomorrow in berlin, an organizer sake millions of people have signed a petition against the agreement. the free trade agreement between the eu and usa is highly controversial. opponents don't trust it because it is being negotiated behind closed doors. it would allow the companies to circumvent the law. supporters say it would remove trade barriers and help both europe and the united states to prosper. here is more. >> opponents in berlin last week resorted to singing to get their message across to german econo

brands, alcoa. analyst at s&p capital iq expecting 4.6% decline for s&p 500 earnings.xpectations are negative and often times you see the s&p companies beat the lowered expectations, keith. it doesn't mean it's going to be a good earnings season, but it might be better than the lowered expectations. what are you looking at for s&p 500 earnings? >> it doesn't include a 70% rip in volatility. a lot did change as the estimates were coming down, but they didn't come down enoughment i think, again, if you look at the fourth quarter, maria, they haven't taken down the numbers yet and 2016, it's back to rainbows and puppy dogs. we've seen seeing this, if the rate of change in u.s. growth slows and rate and change of revenue slows and, i call them captain stock picker. he has a tough time saying i'm buying when the earnings are-- a bargain would be no bargain that remains a bargain. maria: or that becomes a better bargain. you know, the truth is now we're at a point where we're probably going to see a number of economists and analysts take the numbers down for s&p 500 numbers,

. >> next is a question, could one generate income on writing alcoa options? >> yeah. if you want to write it to zero. this thing is a disaster but i like the idea of a name you want to hold on to that has dave dend yie dividend yield. add a little yield to that holding. >> time for the final call. the last word from the options pitts. >> tobacco in general and ren reynolds in particular have great runs. take a shot. >> with the december spread in reynolds. >> facebook i like collars for long stockholders in next weeks results. >> thank you for watching. check out our website options actions.cnbc.com. we'll see you here next friday. meantime, "mad money" is up next. >> announcer: the following is a paid program for the new t-fal optigrill plus, brought to you by groupe seb usa -- innovative ideas you can't live without. how do you like your steaks -- rare, medium, or well-done, but juicy? whether you love tender, juicy grilled chicken or mouthwatering grilled salmon, there's nothing quite like the taste of perfectly grilled food. but grilling it right is never easy, un

let's look at alcoa, not a big game in futures.is hurting here, they came out in earnings yesterday with real disappointment, three cents a share, seven cents a share versus $.13 a share, which was the estimate. the problems honestly coming from metal prices. aluminum prices are too low. and finally jpmorgan upgrading wells fargo to an overweight. at the same time, lowering the price target, saying that wells fargo provided a steady report in uncertain markets. stephanie: thank you. let's take you to the morning meeting. john, you have been going around the country talking to regional and committee banks. what does lending look like? john: lending is pretty strong. it's the problem of having a lot of liquidity and not as a generation to put it to work. i think the key theme we are seeing now is we talked to a lot of banks -- stephanie: regional banks. regional banks and community banks is the opposite issue. we are hearing a question we get a lot -- what are you hearing in boardrooms and for management? that's been a shift to focus

alcoa announced the plan to split into two companies. >> turning to nicole's favorite topics.we saw this coming. los angeles clothing making and retail chain has been having problems with employees and secure lenders reduce debt, they will continue without. >> nicole: you know, they've been under a lot of pressure so it doesn't come to a surprise on wall street. here is a look, cheryl. volkswagon, this has been a huge story over the last few months stock down 60% now. focusing on two engineers who were promoting was made the ceo and making a big bet on ge. accumulated two and a half billion dollars raising pressure on amounts to sagging shares. connecticut richest state, that is, indeed, a huge pension problem. connecticut has roughly what it has to pay future retirement for its workers. the state is wrestling with financial distress that of kentucky or illinois. >> rich state with the big pension problems, go figure, nicole. coming up top box off winners, nicole. >> it doesn't cooperate. everything is going to go south on you. you're going to say this is it, this is how i am.

yum, alcoa, dominos and adobe falling short. and so which names do traders see having big news. dom is at the board. >> we have earnings season kicking off, over 30 s&p 500 records will report. you have johnson and johnson on tuesday, b of a. thursday, mattel, citi, goldman sachs, ge and a lot of big names and there could be volatility around the earnings reports, that is what the options mark is telling us. first of'll intel and second of all netflix, if you look at the options, the possible move around earnings, they are volatile than they have been over the last few years or so. you look at intel for instance, up 5%, plus or minus, in terms of the move, on or around earnings here. 3.5% is the average. with netflix it is bigger. 15% up or down, closer to 13.5% to 14%. that is the media and tech side. look at the financials. look at goldman sachs. bank of america, wells fargo. the options market is implying what could be a smaller than average move in those stocks in and around earnings. so tech, financials, the two biggest sectors, some big movers and on the financial side, so

alcoa reports results after the closing bell. the fed reports minutes from its november meeting and could have rate hike timing clues. the imf begins its annual meeting and it is down in lima, peru. that's what to watch thursday. >>> mortgage applications surged 25% last week, according to the mortgage bankers association. that spike can be attributed to lower rates and new regulations, which caused borrowers to rush to their lenders. applications to refinance and purchase a home were up double digits. >>> with more people going online to watch programs, rather than watching them on television, digital video is stealing both eyeballs and ad dollars. julia boorstin was at a media gathering yesterday called the grill conference, where everyone was talking about the potential winners and losers of this massive shift. >> reporter: movers and shakers across traditional and digital media gathered at the grill conference in beverly hills to talk cord-cutting and the future of content. >> it's a moment of cast and uncertainty, but regard

on the data front a report on international trade, consumer credit, among others, and alcoa will reportts earnings, marking the unofficial start to the earnings season. and that is what to watch next week. >>> all right. we talk about it every year. parents can spend $200 or more per child on school supplies. those who can afford supplies, that is. teachers also spend money out of their own pockets. $500 on average. that's why one company got the bright idea to help families get some newer, funkier school supplies into the hands of young students who need them. >> good morning, everybody! >> good morning! >> reporter: at the camino nuevo charter academy in a part of los angeles where the median income is less than $28,000 a year, ito lessler's school supplies are a welcome gift. leffler got the idea to help after shopping with his own kids back in 2013. >> they basically ignored the school supplies aisle. if i'm not excited about what's in the aisle and my kids aren't excited about what's in the aisle, that's low-hanging fruit. so we decided to funk it up a little bit. >> reporter: his

chip names like my con and rambis and commodity companies like alcoa and agricultural companies mike monsanto and companies like yum! brands and wynn casinos, the earnings are coming down. what's hinds all this? simply put, there's a revenue recession going on. the s&p 500 is looking at four consecutive quarters of revenue declines this year if the estimates hold up partly due to the big decline in revenues from oil companies and to a stronger dollar. that's hurt companies' earnings overseas. companies from ibm to united technologies to eaten are all indicating revenues are lower than projected and the conclusion is that the global economy remains weak. as a result, corporations are spending less on new investments and instead using their available cash to buy back a lot of stocks. that's one reason the market held up pretty well this year. another reason is the margins have been strong. the s&p has margins of a little over 10%, near a record. declining revenues means the margins are underpressure. to keep them up, keep the stock market going, companies have to keep cutting costs. ho