baker hughes, halliburton, schlumberger. look how they act, poor to the sector overall.t's where the future is, where people make 18-month decisions or two-year decisions. drilling wells. that's another tell. so here is the xle. this is the thing you can trade. i think it's starting to go -- break the line. i'm going to make the bet we're going lower, lower, lower. i want to sell energy and i want to do xle as the vehicle. >> all right. so chart master says three lowers. >> yeah. >> and the volatility really -- you saw it today. there was that one headline that jackie was talking about. we saw that intraday turn in wti and the intraday turn in energy stocks. it's almost like getting headlines from fed members. >> yeah, well -- the energy stocks really have more actually to headwinds really than just the supply/demand imbalance. take a look at exxon, the biggest constituency stock of xle and attorney generals, and had them going after the value of their reserves and then the s.e.c. jumping in. and the fact they have massive negative cash flow trying to support a dividend

baker hughes and weatherford international. another company in that semtechals index is death they raised their full-year earnings per share guidance by 5% -- revenue grew 8%. ntas raised their full-year earnings per share guidance by 5%, revenue grew by 8%. oliver: let's check on the first word news this afternoon. mark: the united states is sending 600 additional troops to iraq to help reclaim the city of mosul from islamic state. train and advise iraqi's on the plan to retake the town over the next few months. the u.s. has roughly 4600 troops in iraq. paul ryan he does not expect congress to address the hotly debated transpacific partnership trade agreement in the upcoming lame-duck session. speaker ryan said the proposal needs revisions. >> the last thing i want to do, just for the sake of our allie'' relationships is to bring up an agreement only to see it fail. this has to be improved and fixed. that will not happen in the next couple of months. mark: he's increasingly confident that the house and senate republicans will

algiers is also pressuring numbers from the baker hughes now up to 400 and 18 -- 418 rates.et's take a closer look at how the u.s. markets closed. the dow and nasdaq closed lower. feareddaq losing ground in the middle east, we're just two hours from the opening. this is a picture which shows you the reaction to the decision by the federal reserve to keep the policy rate unchanged. dubai up 2%. dobby --s for every abu dhabi. bear in mind that the saudi market was closed. -- the only weak spot in the picture for the most part with egypt. we will talk about that later in the program. let's check in now with the first word headlines from around the world. make cuts of about a quarter of its investment banking jobs in asia. a person familiar with the matter says the bank will get rid of 75 jobs in the region later this year because of the slumped in deal making. worst asiag its ranking since 2008. is that germany is counting down to a national election. the finances of deutsche bank are raising concerns. a magazine reports that angela merkel has failed to support deutsche bank, w

halliburton baker hughes are struggling. face an antiquated notion on brick-and-mortar stores, but the idea that they are not even looking at the global picture when it comes to these things. i've got it through in there. a guy named warren buffett involved. he's a big investor with a bazillion folks who made all these acquisitions in the first place. i kind of think that weight on this as well. warren zubov. we have to like it. in wells fargo, too. >> i haven't seen anything from this administration wells fargo. the result controls 46% of a mark at and what this administration has said they did make sense of sessions on craft. i said give me a break. neil: we are not coming in the united states. thank you very much. he does make you think. didn't really have much to offer, but he does make you think. we are still following the spirit of running development overwhelmingly overrides the president of the united states 97-one. the only no vote on this 9/11 measure. also similarly overriding to become law despite what the presid

weekly baker hughes rig counts, that follows at 1:00 p.m.n patrick harker, atlanta's dennis lockhart, cleveland's loretta mester speaking in philadelphia noon eastern time and rob kaplan in houston speaking at 12:30. a lot of fed speak from a lot of folks who have opinions about what just happened this week. >> clearly the fed presidents have opinions and that's what was so confusing in the run-up to this big fed meeting. but i think janet yellen cleared it up pretty well saying we're on hold for now, we're patiently waiting for the economy to have, in her words, room to run, as well as inflation, and signaling that a hike is still very possible. potentially in december. doesn't give a calendar date. but for all of the hand wringing over the fed and the bank of japan, it has been a strong week. >> a great week overall. the only thing that some people will say is the idea that this week to date it is the utilities and interest rate sensitive sectors leading the way higher. all of that because of that more dovish central bank stance, not just

. >> pete, you have unusual -- >> sticking with the energy patch, take a look at baker hughes today as a matter of fact. 10,000 in november, 52.5 calls were bought. that's a huge commitment. when you're buying 10,000, you're paying approximately a call at $1.60 for these options. that's a nice dollar commitment people are putting into the trade so it's not just about the big energy names. we're actually now all of a sudden looking at the service industry as well. i'm in there and will be in there at least a few weeks because they're going all the way out to november. i like when we see this in a sector where they're just coming after it, coming after it and they continue to come after it. i think it's a great sign. >>> coming up on the "halftime report" we'll tell you why fitbit shares are down 8%. plus the real state of the hedge fund industry. we'll have a debate right here on this desk. "halftime" back in two. the pursuit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away i

halliburton had a $35 million deal with baker hughes. the -- it feels to me, like in the last 18 to 24 months, the regulatory landscape, there has been more scrutiny. i am as that impact if board or someone looking to do a big acquisition? do they say this is just not worth it? >> i think the regulatory environment does play a role to tie that to something you said earlier. asking how chinese companies involved in understanding is companies. let's ask the other way. has u.s. company boards involved in figuring out how to evaluate regulatory risk? because that is evolving as well. and what tools do you use, whether it is for china regulatory approval or antitrust? in the world of antitrust and many of these deals getting there was a state of in market deals that got approved in 2014 and 2015. there were certain sectors were people say we don't think a number one or number two in the sector can merge or number two and number three. and those deals went through. when boards are looking at the 2016, ok, you calibrate that risk and you go for

ofnie: it is a small part supply and demand, but the baker hughes rig, seems pretty substantial.hat added a lot of supply? has not added a barrel of supply yet, but your point is a good one. clearly, we have bottomed out, we are starting to increase gradually. 12 months after the turnaround, we will see an impact on supply. our view is u.s. shale production and overall crude production bottomed out in q2, q 3, and then went sideways. that is part of the global rebalancing i was talking about, that's built into our numbers. it's important but it does not -- a crude production to tidal wave right away. it takes time. david: you say shale production in the u.s. will bottom out in . why are you forecasting it will happen? the purse strings are slowly starting to be opened, most companies talking about, if we have $60 -- if they feel confident about that, they will drill a bit more. starting to see that. the other interesting thing, the average shale well as a decline of 65% in the first year, but in drilling has been at such low levels this year, when you look out there right now, al

oil drillers added rigs for the 12th week in 13 according to baker hughes. >>> now to a major developing story in technology. twitter shares surging on reports that the company is close to a sale. neil doshi has a neutral rating on twitter, $15 price target. great to have you with us. a lot has happened in addition to the huge pop in twitter stocks this morning. google or alphabet i should say crm chief digital officer making mysterious tweets about why twitter could be it. what is your take on this? we heard this story before. >> nothing really surprises us at this point. microsoft bought linked in, sales force bidding for linked in. yahoo! got sold to horizon. we had good companies getting sold, bad companies getting sold. so at this point, you know, with sales force not getting linked in, maybe they are looking to twitter. from a business perspective, i think it doesn't make any sense, sales force doesn't really deal with, like, with advertising type of revenue and doesn't deal with kind of social media personal data from that perspective. so very different businesses and, you know, m

baker hughes reporting that two net new oil rigs were added. not a lot, but, again, we have seen this trend, week after week for about two months now, every week we see another or two or three drilling rigs added as production starts to climb back in the united states. >>> after a summer slumber, volatility is returning to the market in a big way. next week's fed meeting could add more. the s&p 500 down about 2% over the past month. but your next guest says despite a pickup in near term risks, the bull run should remain in tact. joining us, liz saunders. everybody seems to be worried about something except for you. why ware you still off the mystic? >> there is always something to worry about. i think the bull market is in tact. but we noticed we're in a more mature phase, we'll see more frequent bouts of volatility and pullback. the reason du jour is not just fed policy. it is the realization we're losing the efficacy of quantitative easing and it is not a global force ed ad infini. we may have to move to other sources of opportunity for both

they killed halliburton-baker hughes.s why they might not move higher facing anti-trust hurdles. stuart: monsanto is only at 107 liz: correct. stuart: that's anti-trust problems so you think it won't happen? >> possibly, yeah. stuart: todd horowitz come into this. we say that monsanto is one of the most hated companies because of the genetically modified seeds, and roundup, et cetera, et cetera. >> they're hated by everybody, they're not welcome-- did you mention monsanto on a firm, they're going to come at you. they're not welcomed by anybody there. not the greatest operators when it comes to the average guy. so they do a lot of damage to people they shouldn't be doing damage to so they're not well-liked. not well-liked in the neighborhood and this deal will probably not go through because of that. stuart: another one for you, please, todd. the saudis talked to the russians about oil and then they say we'll go along with what you come up with. the price of oil down, just this. >> the oil found a range between 40 and 50.

also, the weekly baker hughes rig count follows at 1:00. harker, atlanta's dennis lockhart and loretta mester speak in philadelphia at noon eastern today. and rob kaplan in houston at 12:30 speaking at an energy conference. not much break from the fed speak so far. >> thought we would get a fu days. the corporate news, john stumpf stepped down from the san francisco fed's advisory council. in a statement, he tells cnbc stumpf made a personal decision to resign, saying his top priority is leading wells fargo. the announcement comes a few days after stumpf appeared before a senate banking hearing on wells fargo's sales practices. >> news came yesterday. and i was on the phone with somebody who said, oh, my gosh, stumpf just stepped down. wait, from the advisory committee. saw it flashing on cnbc. >> same with the e-mails coming through. you raise the bigger question, is there going to be pressure building particularly on his own board of directors? what will be the direction there they choose to go given what many people find was a strong per