but look at what ge's done.f you go back and look at their second quarter, they have been executing. you look at their industrial orders they were up 8%. aerospace is strong. power and water is very strong. health care has actually rebounded. oil and gas pretty much flatlined but pretty good performance in a very weak environment. so if management can continue to execute and get rid of these financial assets, take that capital, use it for buybacks and for key acquisitions, this stock has got more upside potential in the long term. in the near term we do have some reservations. >> all right. i want to get to those reservations in a moment. but first, management has been executing on this plan from mr. immelt for some time, and the street hasn't liked the stock for a long time. why is it different now? >> well, it's just tough. immelt has had his chances and he's missed on some opportunities. but i think what you're seeing in the share prices, that industrials have been very weak. if you look at that sector it's b

ge is but, a digital industrial company.e merging software and machines and creating a new category. what we tried to do with the ads is talk to future employee, a developer. and a developer who will not just be interested in makingming and code but a difference. we had a little bit of fun. tongue-in-cheek other types of apps. you are showing one right now. [laughter] emily: yes, we are. ge makes heavy-duty machinery. what is the digital and is digital industrial term referred to? linda boff: emily, it is all about creating a layer of data and analytics. so that we can not just have the providing ourso customers, our really customers, our energy customers, our hospitals with insight so they can run more efficiently, trains cooperate more efficiently. we can save companies money and predict outcomes. we have built a whole software division and launched ge digital, a division focused on how to enable our machines with the digital knowledge. we have built an industrial ourd, a platform that customers and everybody in the indust

ge, i can go out and buy ge. why should i pay you guys to tell me ge is the right way to go. >> let me frame the discussion. we made ge the biggest investment ever for trian for a reason. it's an amazing risk/reward. i think we bought the best industrial business on the planet. happens to be trading at the cheapest valuation. with regard to risk, david, i feel like we're taking very little risk because of the balance sheet, the brand name, cash flow, unbelievable market shares. think about 70% market share in commercial jet engines. across the portfolio, incredible market shares. they really leveraged their scale. they spend 50% more in r & d than the closest industrial competitor. you have to buy junk in the bond market to get a 4% dividend yield. i feel we're taking very little risk and will sleep well at night what is underappreciated is the upside. what jeff immelt has done is isolate the core industrial businesses. those businesses are amazing. they have grown best in class revenue-wise the last ten years. e

about 1% of ge. the surprise for everyone including myself is how much nelson peltz is endorsing the ge transp transformation. he went point by point and basically put an exclamation mark next to each one of ge's initiatives. it adds an element of watchdog accountability. he's not asking for a board seat at this stage so as long as ge executes he would -- we expect nelson peltz's presence to be in that, what we categorize as constructive activism. >> let me just ask you about the future, that's my final question to you. he's been ge ceo since 2001. that's been 14 years. that's unheard of when it comes to corporate ceos in the u.s. do you think it's time for a change in direction? >> well, actually, if you go back to ge's history it's 123-year-old company. the average tenure for a ceo at ge -- and thomas edison was the founder of the company -- was 15 years. it's not unheard of. that's a very average tenure for a ge ceo. if you had to think about what is going on, the pace of change, my expectation is

what is ge today?ll, it's one of the most complicated companies still even though -- >> that's it, john, right? that's part of the problem is it not? >> it's a big problem. and, look, the company has over 10 billion shares today. we like the fact they're finally buying their stock and getting a little bit of religion on that front, but the fact is they're still going to have an enormous amount of track, and it's such a big needle to move. you need a lot more over time than fine tuning a portfolio. it's still going to be extremely complicated and relatively less streamlined than other companies. >> specifically with the pelts investment, he has been an investor in dupont and hasn't had that much luck there. it sounds like what he wants to do essentially is sort of prod ge along. he's not tacalling for any majo structural changes. we're entering a period where the wall street is essentially down on industrials overall in the third quarter. industrials have underperformed the s&p 500 by about 15%. >> but,

ge for about a year and a half. >> a lot to sniff at ge go after these a lot to do can look really righty don't have data combined their back. >> this is biggest investment ever for trian, it hasn't requested a board seat yet on ge they say it could take on 20 billion dollars, debt and repurchase stock at minimum i bet we see more purchase agreements in terms of its stock, they have already been buying back stock at ge. >> i mean look look at stock if we showed a chart to dagen's point charlie's early story on this the stock ramped into may, peltz basically started prg the stock, but only down since may. >> so again, he is averaging in an interesting position forvist for an visit jeff took over that was 59 3/4. >> an issue why hasn't there been more pressure on jeff immelt with performance since he took over. >> let's not forget he took over two days before september 11 -- so he has had a tough macromacrostory you are right board very supportive of jeff immelt. we will see. >> particular a nice guy a member of my golf club i know him nice guy. >> i like him as well i know him a long time

at ge we have the announcements most recently and he and ge -- >> very friendly.er. >> we've heard this before. jeff has already talked about his relationship with nelson over time. we knew it was positive. we knew that jeff had sought out input from nelson -- >> right. >> -- in terms of am i doing the right things for this company. i think it's a statement that says, look, there's a lot of trapped value inside of ge. we expect the market doesn't recognize that. as they take these actions we're going to be, number one, good investors and number two a friendly nudge to make sure they stay the course. >> but explain this. here's the quote from nelson peltz this morning. recent discussions have solidified the belief that they're going to share much common ground with trian on ways to improve long-term shareholder value. then of course they go on to publish a white paper about all the things that ge is not doing. >> so it's interesting. if you look at the things ge is doing as i look at it right now, you already have them getting rid of $200 billion of assets at ge ca

not jyour grandfather's ge anymore. remember not ge, gte?20 years ago, nobody remembers that other than us, joe. you know why that was? there was a successor to ge, jack's job, didn't get it, got the gte mind, and they confused gte and ge. >> thank you, sir. >> sure. thanks a lot. >> talked about a lot of stuff. >> rapid fire. >> rapid fire. >> boom, boom. thank you. >> thank you. >>> when we come back today, if y missed the catch of the year, we have it for you after the break. by the way, whining can be a good thing, especially if it's a $30,000 bottle. a big auction bringing top dollars to sellers. that story in a bit. meantime, the futures at this hour, relatively flat earlier today, we saw green arrows across the board, and this morning, the market is waiting for a little of direction. we'll be right back. more data means more freedom to do..whatever. that's why at&t is giving you 50% more data. that's 15 gigs of data for the price of 10. because the more data you have, the better. and right now at at&t get $300 credit for every line yo

there has been grumbling about ge stock price for years. >> ge has underperformed for years.t set of has been a struggle for ge. to be able tong buy big shares if you put the stock out cheap unless you are in a position like nelson helps -- nelson peltz. stephanie: is it too, located a company to take an active mistake? brendan: has there been also arallel to the china, structure in a chinese building, and are we going to see growth in america? a bet on ge is a bet on infrastructure. trains, and all of those things -- brendan: exactly. is it a simpler company now to do this with because they have been getting rid of a lot of financial assets? has this triggered this? know, they may be bad for a couple of reasons. regulationsfrank made operating an industrial company with ge capital inside of it very problematic and challenging. growth.he earnings stephanie: this is an important part. many people think this only affects banks. >> this is a subject that is being widely debated right now. over companies that are not systemic companies. -- i was going to say, insurance companies.

the expected eps at 220, that slaps the multiple on ge. ge hasn't seen that multiple in ten years.et there? do they increase the bibacks? that's a pretty rich target. i think ge certainly has upside trajectory. i don't know against the 40, 45. that might be a little bit too much to ask by 2018. >> getting a boost today. better than 4% is the overall update for the market. the market, investors are certainly taking this news of the investment as positive clearly. coming up, shares are slumping today. they got downgraded after dropping more than 35% over the past three months. is more trouble ahead in that space or is it time to buy right? the stock is down more than 4%. as we speak. we're going to get some word from our expert. you're watching cnbc. we're first in business worldwide. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >>> coming up on power lunch at the top of the hour, ge is getting a bounce today. one of the biggest activist investors taking a stake in the industrial giant. stocks that analysts believe have upside

biggest movers today, well, ge.t investor, nelson pelts, the investors seemed to like that, up 5.5%. alcoa, up 9% after signing a billion dollar contract with air bus, and free free port mcmoranp 5%. gives you an idea of how strong the market gains have been today. one last stock i wanted to point out, domino's pizza, dpz, up about 1%. here's the funny story here, liz, they've announced their going to try and sell pizza to the italians, opening up a store in milan, hope to have three open by the end of the year. they say they think they can use local ingredients, and the italians will love it. not so sure, but we shall see. liz: liz yeah, i don't know about the crust, that's the thing. ashley, thank you. yes, exactly, the italians, need the perfect crust. >>> we're just moments away from the closing bell, six minutes, five and a half to be exact as rate hike fears ease. the markets are rallying higher, i would argue that we have the tpp trade deal that's looking rather like a go thing, and then we have a good move o

ge has a lot going for it on its own. and now that nelson peltz is in the mix, you need to be ready to join. and i expect you might get that opportunity when it reports tomorrow morning. much more "mad money" ahead. it's one of the most valuable silicon valley start-ups and it's coming under fire today. but there are two sides to every story, aren't there? i've got the exclusive with the ceo of thernos what she has to say about the accusations from "the wall street journal." >>> and possible positive news and the lightning round. stick with cramer. it's the final countdown! the final countdown! if you're the band europe, you love a final countdown. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. does your makeup remover take it all off? every kiss-proof, cry-proof, stay-proof look? neutrogena makeup remover does. with one towelette. need any more proof than that? neutrogena. laundry can wreak havoc on our clothes, ruining them forever. sweaters stretch

i am saying you can buy ge at any discount. as a matter of fact, you can just go by ge on monday.here's always a bull market somewhere and i promise to find it for you right here at "mad money." i'm jim cramer. see you tomorrow. >> narrator: in this episode of "american greed"... one man's bold scheme to get rich quick. >> the opportunity was there for them to make easy money. >> narrator: albert talton puts a modern twist on one of the nation's oldest crimes -- making counterfeit money. >> this one was different because it was just a computer and several printers that were utilized to print this large amount of counterfeit. >> narrator: talton circulates more than $7 million in phony cash around the globe... >> he was almost proud of what he'd done -- his perverted version of the american dream. >> narrator: ...and launches the u.s. secret service into the largest manhunt of its kind.

and ge is the big weight in the sector, 11%. without the big defense contractor, a few airlines, everything from united technologies, honeywell, it is all done, not by my word. >> to your point, a lot of the companies trying to deal with cost-cutting issues and now the ones that service those companies are saying the same thing. so it is rippling through that space. it is not the time to dive into it. >> do you have a trade on xli which tracks industries. >> yes. when you look at chart from the 2009 lows it has come down now to the uptrend that has been in place since 2009. there is the chart right there. so you have the stock at 52.5 today. 50 is a massive near-term support level. but the uptrend is the big one here. so i think that you'll continue to see fundamental zreerdeterion and i don't think ge can help at ten year high so i want to make a bearish bet looking out to december expiration at around 52.5, i bought the 52-48 put spread and my max gain is at $48, okay, that is basically risking one to make potentially three do

. >> it feels like ge is a stock specific story. you take a look at a honeywell it missed on revenues. >> you had, in both and ge seems stock specific, the stock is up 15% in the last couple weeks, there is obviously activist pressure and it has done it based on fundamentals. the earnings multiple now is 22 times this year's expected earnings, that's a ten-year high for ge. there is a lot of enthusiasm out here without any fundamental improvement. the honeywell situation was interesting to me, got me looking at the space in particular because that stock at one point was down 2.5% on the day and ge was up 3.5% on the date was the xli was actually down on the day. so ge's performance is masking bad performance in the entire space. >> some of the people that reported from emerson to fastenal and grainger using terms like industrial recession. it's not good and ge is the big weight in the sector, 11%. without the big defense contractors, well, a few airlines, everything else from united technologies, to emerson to eaten is down and it d

if he works his magic, ge is going higher.n connecticut. >> caller: utx is going to announce third quarter results on october 20th. wall street wasn't too happy with the second quarter results. and the stock lost about $7 that day. any thoughts on what utx will report for the third quarter? >> i think the united technologies is doing a lot of the right things. i think to tell you i think it has already guided expectations to levels that i think it will have no problem doing. i think greg hayes is in there straightening up the ship, doing a good job. united technologies is not necessarily the industrial i want to own right now. it will be the industrial if the numbers are beaten. i like the stock. i wish it yielded 3. it's got to go down a little more. carol in michigan. >> caller: thank you very much for taking my call. in 2008 or '09, during the recession, i bought ford stock at $3 a share. and i bought it as a lot of 100 shares. it went up, and i was very pleased with the results. i respect the ford family and am proud that

ge has a lot going for it on its own.nd now that nelson peltz is in the mix, you need to be ready to join. and i expect you might get that opportunity when it reports tomorrow morning. much more "mad money" ahead. it's one of the most valuable silicon valley start-ups and it's coming under fire today. but there are two sides to every story, aren't there? i've got the exclusive with the ceo of thernos what she has to say about the accusations from "the wall street journal." >>> and possible positive news how come some of these regional players don't miss my call. and the lightning round. stick with cramer. >>> lately one of the most exciting privately held companies in silicon valley has come under fire. i'm talking about theranos, the diagnostics company with the ultrafast fingerprint blood testing technology that's aiming to upend the entire traditional health care establishment by making it easier, less expensive and much uncon shenable for you to get tested for a whole range of issues. ceo's been payrolled to steve job

yes, ge makes powerful machines.e machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world. padvil pm gives you the healingu at nsleep you need, it. helping you fall asleep and stay asleep so your body can heal as you rest. advil pm. for a healing night's sleep. well well well... with their luxuriousy-pantses fall fashions. oh no, there was a big fall sale at old navy. y'all look like liars to me. no seriously. this was ten dollars. stink like liars too. okay kids, let's go. yeah. alright... thank you. ♪ [ cheers and applause ] >> jimmy: welcome back, everybody. welcome back to "the tonight show." we are hanging out with kate winslet, ladies and gentlemen. cpcp yeah. she stars opposite michael fassbender in the highly-anticipated new movie "steve jobs," which opens in limited release this friday. kate and i are about to play a a game called "photo booth."

yes, ge makes powerful machines. but i'll be writing the code that will al w those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he c i't lift the hammer. it's okay though! you're going to change the world. pain from your day can haunt you at night, don't let it. advil pm gives you the healing sleep you need, helping you fall asleep and stay asleep so your body can heal as you rest. advil pm. for a healing well well well... if it isn't the fancy-pantses with their luxurious fall fashions. oh no, there was a big fall sale at old navy. y'all look like liars to me. no seriously. this was ten dollars. stink like liars too. z okay kids, let's go. yeah. alright... can i get a medium coffee, cream, two sugars? medium hot coffee, cream, two sugars -- see you at the window. at dunkin', we make your coffee just the way you like it. if not, we'll make it again on the spot. that's the dd commitment. america runs on dunkin'. [ cheer

that stock at one point was down 2.45% on the day and ge up 3.5% but ge's performance is masking baderformance in the entire space. >> on the commentary from people reporting, the chairman saying we're seeing things that are terrible, using words like industrial recession. it's not good. an ge is the big weight in the sector, 11%, without the big defense factors, everything else from united technology and emerson is down and it does not look like it's over not by my work. >> to your point, a lot of companies first trying to deal with cost cutting issues are saying the exact same thing, it's rippling through that space. this is not the time to dive in. >> you got a trade on xli. >> specifically when you look at the chart of the xli from the 2009 lows it has come down to the up trend that has been in place since 2009. there's the chart right there. you have the stock at 52.5 today. 50 is a massive near term support level but the up trend is the big one here. i think you'll continue to see fundamental deterioration. i want to make a defined risk bet looking out to december expiration to

a first for ge, right, that's its biggest stake ever $2.5 billion in ge.t's going to be a more hands off approach, engaging in day a log but it's knots looking to get a board seat at least for now on general electric. you have to wonder at fairfield if eyebrows aren't being raised on the news of ms. kullman. >> everybody is smiling, maybe through gritted teeth. >> up next presidential hopeful marco rubio weighing in on everything from cutting entitl entitlement to increasing tensions with russia. >> one of the founders of peeple weighs in on why so many people are upset with her company. it hasn't even gone on to twitter yet. we will talk about it coming up. >>> in case you've lost count there are now 13 people left in the race to be the republican presidential candidate in 2016. >> only 13. our john harwood sat down with the hopefuls who is doing quite well in the polls, florida senator marco rubio answered joins us at post 9. what a treat. >> thanks for having me. i appreciate being here. marco rubio is finding out that when you rise in the polls you sta

finally on ge, you have been talking about ge.y thing to note about this deal, the synchrony share exchange next week is going to significantly reduce the number of stock outstanding. synchrony will operate. gdp on china sunday night. that's going to be a market mover. right now the dow up 12 points. carl? >> have a good weekend. >> you too, bob. let's check in on the bond pits as well. rick santelli in chicago. good morning, rick. >> good morning, carl. we are really camping out at this 2% level. many traders are getting a bit brave playing the notion that it's going to continue to camp there. i'm not sure if it will or it won't, but we can let the charts speak for themselves. two day of tens tells you a lot. first of all today, not a lot of price volatility. doesn't mean there isn't volume going through, but it isn't moving a lot. even the seven out of nine negative numbers on industrial production seem to not phase the traders much. if we look at a may 1st start to ten year, maybe that tells us more. tells us to be careful. we'

take a look at ge shares.ists firm cofounded i nelson felt has acquired a $2.5 billion a in ge as it backs the companies ran to focus on industrial businesses. what does this mean for the debt and the company at large? i want to bring in a senior analyst at bloomberg intelligence on ge. the target seems to be getting bigger and bigger. dupont and now ge. what does he want? >> cannot really get much bigger after ge, right? pretty much the same. improve the operation, get more sales growth, but more leverage on the balance sheet and get the cash flow back to the shareholders. i think that is the basic playbook with ge today. the idea is they were spending too much money. there were areas where they could cut cost and add to shareholder value. >> that is exactly right. with ge they arty have a target to reduce operating spending down 12% per year starting in 2017. in the they are similar idea of making sure the execution works out right just write for the investors. what has not worked is it has been a black box.

ge reporting today, new high for general electric. also we have two dow stocks at new highs, nike and general electric. nike has been hitting new highs for a long time. a good report from honeywell as well. we haven't been hitting many new highs. it's been a small group of consumer names, altria, reynolds american, the cigarette company. clorox has been doing great this week. they've been hitting new highs on a regular basis but not much beyond a small group of consumer names. no love at all for metal stocks again today. we're seeing notable declines in some of the steel names, freeport another day down 4%. alcoa down 3%. i suspect, mandy and tyler, maybe they're trading down ahead of china's gdp report which is out sunday which is widely expected to have a six handle in front of it. we have been talking 7% growth earlier in the year for china. guys, back to you. >> a break below that 7% mark might unleash a wave of stimulus. trig they're stimulus that everyone is expecting. could turn out to be a good thing. we'll have to wait and se

growth and volatile environment, ge held the line on costs and helped by strength in its aviation andransportation businesses beat earnings expectations in the third quarter. >> crisp execution in tough markets, that's the hallmark of a well-managed company. >> reporter: even as revenue missed forecasts, immelt reiterating the firm should meet its profiul targets for the yea, which is turning out to be its most transformative ever. the firm is ahead of schedule on its plan to sell $200 billion in assets for its finance arm aas it shrinks the once mighty unit. it's about to close on its largest deal ever, the purchase of the french power company alstom. and if conditions permit it will sell its stake in synchony this month a move that will let it buy back $20 billion in stock. it's a move to return cash to shareholders and gener e 90% of the firm's profits from industrial businesses by 2018. the plan and execution getting attention from investors who sent the stock to a seven-year high on the back of the earnings news, building on gains that ge's seen since activist investor nelson pel

except recently, because this sell ge and announced to 200 billion dollars of ge assets.he turning point where people were convinced to ge was making the change, making the move to get rid of capital assets and turn itself into an industrial company. they are being rewarded by investors. and i have been talking to analysts. they were more cautious on ge because they didn't feel like they could rate it yet as an industrial company. the fact it did jump up its peers is quite significant for the rating community. the way peoples are valuing them at estimating their earnings. >> let's talk about a currency getting slammed. the zante a quach a -- the kwacha. you can get a good feel for how it has been beaten down. copper prices is the yellow line. of exports of 70% income for zambia. here you see copper rebound but the kwacha has not. what is everyone going to do? prey on sunday, literally praying for the health of the economy. given thet work, health of central banks you might as well try something new. divet to take a quick deep into my terminal. we got the jolts reported it

in ge, you have to show your stuff by doing deals and it's really the dealmaking part of ge that has been a problem, not the way the businesses are run. a lot of very talented ceos have come out of ge and it's one of the best training programs for running a business. it's a terrible place to learn how to invest money. >> you did a lot of work on ge, now nelson has stepped in. will you be next? >> we decided it was not cheap enough. be --hink it's going to markets going lower. >> and it's going to be a fine investment. they are getting out of the -- they've got very little value from the finance business and they restricted their ability to use a balance sheet otherwise and it caused all sort of regulatory oversight and other issues. handled -- on the ceoe taking job, make sure your stock is not overvalued. >> what we've seen happy with -- happen with dupont. nelson wins again. >> she won the battle, lost the war. if she had welcomed him and, she would still be ceo of the company. , andought to the death again a not close and again i'm not close enough to dupont, but my sense is it lo

nicole: ge will earn 26 cents a share today. revenue projected 28 1/2 billion dollars, down from 36.000000000 a year ago. this is the first report with prominent activist investor nelson peltz in the picture and trian fund he is with. it revealed it owns 2 1/2 billion dollar stake in general electric. >>> here is a look at the headlines in today's edition of "wall street journal." u.s. firms fight global cyber weapons deal. there is effort to prevent cyber weapons reaching malicious regimes. u.s. companies say it would upend the way they sell legitimate spyware. nestle had 2% drop in sales as the swiss food giant navigated problems that include ad food scare in india and highly valued swiss franc. card firms push back against netflix. netflix is facing skepticism is from credit cards and experts after the firm said payment miscues contributed to worse than expected subscriber results. nicole: coming up, flash flooding and mudslides trap drivers in their cars in california. we'll have the latest on the situation. and in sports --

ge's forward pe is 21.there is a great disparity between how it trades and how others in its group trade. second stock, melco crown. it is higher today. that's the xli. 3%. credit suisse is getting bullish on the sector as a whole. it goes to bullish from positive. it's upgrading a few names cleg melco crown. on melco specifically, they see a potential 33% upside citing stabilizing vip trends which is really just not the sector down. lt relaxes visa rules and the uniqueness of the studio city property. >> have you seen shares of wynne lately? up 35% this quarter. >> half of that last week. >> there you go. all right. third stock, toll brothers. morgan stanley upgrading it to an overweight. they say the market underappreciates tol toll brothers profit potential. luxury home exposure is the key. the target goes up from $39 to $44. so 18% upside. not the only upgrade recently. us susquehanna upgraded them. >> luxury homes is the core. they're doubling down on the apartment rental unit. they actually doubled it

ge next friday. >> we already talked about the banks which is the big focus for me, but ge is interestingwhat they have to say. nelson peltz is involved in the stock. i'm interested to see what they have to say about growth through acquisition, growing industrial and health care businesses, growing the oil services businesses, some big divestitures coming from the baker hughes deal. let's see if they talk anything about that. >> have a great wieekend. >> you, too, judge. >> "power lunch" begins right now. >>> scott, gentlemen, thank you very much. and welcome to "power lunch," everybody. along with sara eisen, i'm tyler mathisen. mandy has the day off. we're all at the nyse today. >> how lucky is this? >> i don't think we've ever stood this close together ever. >> it's been a huge week for equities, the dow on pace for its best weekly gain since february. the s&p on track for its biggest gain of 2015, so will the rally keep on trucking? >> and we've got a great mystery chart for you. check this one out. it's a sector, and it's up more than 7% this year despite the recent

has 1% of ge make it one of the top 10 shareholders. peltz says ge could take on $20 million in debt and repurchase the shares. seeking apparel is vonnie: chapter 11 bankruptcy liability. american apparel has been in turmoil since last december when their attorney was fired as ceo during misconduct charges. one of the favorites to win the nobel peace prize this week, germany's chancellor angela merkel. she's the three to one favorite over pope francis. the reason -- angela merkel's response to the refugee crisis. it's not like the oscars were is the deadline for good acts. you can still win the nobel peace prize. tom: the nobel prize for and onure on thursday, the economic as well. it's a rare pleasure. what a lineup this morning as we recalibrate off of friday jobs report. carl weinberg and dominic konstam, and to begin with dr. weinberg, let us talk about how "bloomberg go." our central banks behave amid inflation. this is a chart that you know that you may not know. the yellow line is the federal reserve bank interest rate in the uni

i'll be programming at ge. oh i got a job too, at zazzies.friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition! at ally bank no branches equals great rates. it's a fact. kind of like playing the boss equals the boss wins. wow! david: shares of yum, really getting hammered, between 17 and 18% after a big third quarter miss. ashley webster, it has to do with china primarily, right? okay, ashley's gone. we'll continue to keep you updated what is happening with yum! brands but right now, you can see it is down to $69. after hours. ashley is there right now. i was saying it is

yes, ge makes powerful machines.'ll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world. that's a good thing, eligible for medicare? but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they pick up some of what medicare doesn't pay and could save you in out-of-pocket medical costs. call today to request a free decision guide to help you better understand what medicare is all about ... be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. there's a range of plans to choose from, too, and they all travel with you anywher

yes, ge makes powerful machines.be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world. dad: yeah, 20 something years now. thinking about what you want to do with your money? daughter: looking at options. what do you guys pay in fees? dad: i don't know exactly. daughter: if you're not happy do they have to pay you back? dad: it doesn't really work that way. daughter: you sure? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab. >>> markets flat lined so far. consumer discretionary at the top end and consumer staples. >> like the barbell approach when it comes to the consumer. staples standing out as the worst performing s&p 500 sector vying with utilities. this despite the fact that m molson kocoors is higher. weighing the sector down, monster beverage,

most recent finance, we had similar businesses, but here was ge, a well-respected company, champions and leaders in these businesses. that and move forward on their legacy. they have been in that business for decades. we love those kinds of businesses. of the business is sold, what else did you take a hard look at, and what did you pass? f: we looked at things that fit and things that did not fit, and there might be other issues involved, either pricing and hope for, said the things we did, we like. the things we did not do, we are happy someone else got. erik: were some of those irrational? mr. stumpf: everyone has their idea. and that is what makes the world go round. people have different views of values. fargo generates about 3% of its value outside. what kind of businesses overseas are you most interested in pursuing? you mentioned supporting u.s. companies, but where? if a u.s.-based company is sourcing product from overseas or vice versa, if a needs andent bank product or a service, like foreign exchange or a payment service, those are the kinds of things that we do, but i do

i know you like ge. >> and i've been in ge for a long time. ge is one of the names and you talked about the activists, it is as much about them in terms of gef as least. and they do have energy spras as well. it has the energy component and the activist and i think there is a lot of reasons and the stock has done nothing. could you close your eyes and say where is ge. it is around $25 or $26 a share. it hasn't done much in a major way. but i think there is nor upside than down side. >> our next guest said to steer clear of the sectors. carter is breaking it down at the smart board. >> i think we heard the word berserk from dan and karen send the pendulum swung the other way and it is titled dash for trash and so let's look at the charts. so i want to start here -- now i'm focusing in on the average. this average is the three sectors that have had the big move off the low. so energy, materials and industrials. again if you market cap weight these. it is less at 7.6%. but these three pieces of market represent 20% of the s&p and up double that o

>> on the case of ge, i think that's kind of success.t much of an advantage anymore, maybe we should down size and think about being more effective and efficient in a smaller size. i don't think that's necessarily a bad outcome, but dodd-frank has a lot of great things in it. capital is much better, bazell three rules have come in internationally and banks are much stronger, we have a much more system-wide perspective, the fed is looking at the whole financial system. one thing that relates to your earlier question, we now have authorities where the fed and the fdic can intervene and disassemble is lehman or a failing firm in a way that's safer for the system and takes away some of the too big to fail problem. there are some positive things in dodd-frank. obviously, there are some things that are not as good, but i think we made good progress there. maria: you can argue today, the federal reserve is more powerful than ever before and has gotten more powerful. >> the central bank needs to be powerful to do what it's assigned to do, at the

therefore people are playing ge as a way to bottom. >> ge had another great week.hat was the week think announced the decision to divest most assets of ge capital. it did not sustain. it did not sustain because of the price of oil and the lowdown in china you think it's different this time? >> i think the balance sheet is different. i think it's under-levered company and it won't be circumstances, siffy, it can buy back more stock than people think. ge, i hope it comes in so people can get in. >> what a week we've had. this is the same week that ellen kullman was fired. it happened this week. >> exactly. it's been an amazing week and it's not over because tonight -- >> tonight, 9:45. we can watch the mets beat the dodgers. jake that, jane wells. let's talk about another west coast company. tesla receiving another downgrade at barclays. they go to underweight from equal weight. the firm saying they see many challenges ahead for the electric carmaker especially in regard to the musk has taken a shot at apple when saying apple is hiring tesla's engineers. he said they

what do you see off ge this morning?e: it is better than expected when you look at operating verticals. i think you are on the money, tom. it is all about, look, we are getting some breakdown. division, health care, pretty much in line with transportation, aviation. tom: this is this idea that we continue to see and underestimate, which is use of cash, retirement flow. the big number of 30 billion, i do not have a ratio for that. we will give you share reaction. francine: it is ahead of what is expected. tom: this is the backdrop to recall not an activist shareholder pushing for control, but mr. peltz coming in with a solid minority interest in maki it clear he is happy with what he sees with jeff immelt. is just going to be manager of the decade -- is jeff immelt going to be manager of the decade? cgede, it is something to state globe -- stay global -- to see ge stay global. france,if you cge from to italy -- if you see ge from france, to italy, there are fantastic engineers than the consumer products. they have the cul

by to help preview movie for me and these two come with the major background in the action fantasy ge nre. >> lord of the rings thrilling ace monk his many credits, game of thrones, part of hers, together now in the last witch hunters. >> sure. >> let's bin with the thought that witches, live among us. >> i think witches are real,

still ahead, things may be getting brighter for ge.own the company's third-quarter earnings. that is next. ♪ betty: welcome back to "bloomberg market day." with ge earnings beating estimates, you would think they behind. julie hyman standing by with those because of the market desk. julie: i'm tried to fix my chart on my bloomberg terminal, which we will get to in just a second. we have had a number of industrial countries coming out with perl in the earnings that --sed estimates the most missed estimates. the most egregious is qantas service, down 27%. the coming coming out with preliminary earnings per share for the continuing operations for 22 to $.24. the prior forecast was for $.44. a big mess for this company. this company provides services to both utility companies and gas pipelines companies. on the electric side, it's seeing small-scale on electric transmission and on the pipeline side, th it delays pop line construction projects. the train company also missing analyst. it said that its agricultural mineral transportation busi

no i am... do you know what ge is? when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. i'm a gas service my nrepresentative. n. i've been with pg&e nine years. as an employee of pg&e you always put your best foot forward to provide reliable and safe service and be able to help the community. we always have the safety of our customers and the community in mind. my family is in oakland, my wife's family is in oakland so this is home to us. being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. together, we're building a better california. >>> done some research on regular lion hunts. they may take two or three weeks before they even get a shot off. what i'm doing is, i get