that is why you look to somebody like jpmorgan. if you are going to look at specifically who is exposed to commercial banking, that is more of a conversation with our regional bank analyst. shery: thank you so much for that, alison williams. a bold gold atg that. the toronto management company agreed to buy a gold asset management business for $50 million. for where on where he sees the opportunities is the ceo peter grosskopf. a lot of gold puns there. today we have seen gold under pressure, given that we have a risk on mood. not surprising given the rally we have seen this year. what will try the next leg not surprising, gold at the end of the day is an insurance asset. when people are worried, it becomes accumulated. in the past two weeks, the markets have been more risk on. i think we expected to see a pullback. long-term, we see lots of trouble ahead. as other commentators were saying, possible recession, 10 years into the bull market, negative interest rate environment, would suggest lots of problems servicing that debt and h

i think jpmorgan in general, though, checked all the boxes, very steady performance. think all of them are steady third quarter was a little slow in investment banking and that hit in some areas. >> saw that in goldman's numbers as well. still leading in terms of the franchise and m&a, the numbers were down year over year the correspondenti underwriting down, i think 9% decline overall. even though they, jpmorgan and morgan stanley when it comes to equities are numbers 1, 2 and 3 depending on the quarter that you're talking about but overall, more muted than i might have anticipated given how often -- how much time we spent talking about ipos, plenty of them >> underwritings with a little bit light for goldman. again, just volumes mostly not there. it is interesting because they obviously -- the group trade oz on a macro basis trades with yields, with expectations with how much we have left in this expansion. that will determine what credit costs look like down the road. it is a quiet backdrop for them in terms of results. question is does the market give them any cre

jpmorgan a dow component.sachs indicated down less than 1%. citi numbers out at 8:00 and that will give us more insight as well. wilf, thank you. >>> coming up, two big stories in the world of sports and entertainment. first as we head to break, take a look at u.s. equity futures which has been solid all morning long up triple digits on the dow after a slight pull back yesterday. nasdaq's up 25 s&p up 10. we're coming right back. when you move homes, you move more than just yourself. that's why xfinity has made taking your internet and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches... no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started. >>> lebron james had some choice words for the houston rockets general manager darryl morey asking about the n

jpmorgan's 380 -- >> yeah, they have more scale. jpmorgan could lose money on this.f you look at its earnings, you know, it just doesn't need this, if you know what i mean. liz: beguiling. >> too much perks and not enough business. liz: that's called too much sizzle, no steak. dow is up 251. closing bell 8 minutes away. they may not be as cuddly as these little guys, but our countdown closer says the dogs of the dow will keep your portfolio from rolling over and playing dead. "the claman countdown" is coming right back. no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead . . we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson'

acted if you have to buy a bank buy jpmorgan on dips but here is the two-year chart on jpmorgan this has been routinely rejected dating back to early 2018. and it's having obviously some trouble there. that being said it's the only major bank on the planet making a new high since the financial crisis and it's obviously best of breed. when you think about what's going on this week, we had a chance where maybe we see the yield curve steepen a little bit. maybe we see some of the economic data changing a little bit. or maybe at least sentiment as it relates to trade deal maybe the brexit situation got better if all that stuff interests you and you think about jpmorgan and the guidance they give when they report october 15th after the opening and they say, maybe they have the opportunity to give better guidance than what downbeat investors are thinking, then this is a name you may want to set up to own with defined risk over the next couple of months this is implied volatility and i think that, yeah, focus on earnings, you know, the implied move about $3.60 you know, that's about a littl

. >> jpmorgan tomorrow morning around 6:45. we get a good look at what the consumer looks like and whether they are lending more money. sachs, hear from goldman where we will hear about trading expectations. we also hear from bank of america wednesday, morgan stanley thursday. with that said, all of the major banks are expected to have lower revenue throughout the year. they have all been impacted by tough deal fees. morgan stanley and goldman sachs, investment banks have been impacted most. jpmorgan doing better with a lot of people lending over the year. that said, the yield curve has been pretty tough on all of these banks. jpmorgan, wells fargo, bank of america revising their net interest expectations for the year. also, treating is expected to pick up a little bit.

point that just becomes too expensive in my opinion. >> and jpmorgan -- and carter and i have had a spat about this i can say not that bad of a chart. it's outperformed the s&p a little bit the last two years even though it's not representative of all of them. so guys talking about morgan stanley, goldman sachs, the asset managers, it's as much morgan stanley as anybody. asset managers are seeing massive compression so i don't think you'll see great numbers out of morgan stanley. the flip side of all of this on the capital market side with record low rates again, you saw a lot of folks rushing to refinance in the corporate bond market and issuance bond market. i think you'll see pretty good momentum into the fourth quarter and they'll guide to that. steve talked about housing all very good for a mortgage business that was largely dead in the first half of the year when rates were going a lot higher i don't think it's a terrible story, i just don't think it's an extraordinary story. >> we had inversion of the yield curve until basically a week ago. how do you think that manifests its

maria: interesting to see jpmorgan. commitment that jp made. >> i understand that wework's bonds will pay 15%, crazy number. junk bonds pay around 6 bonds, 15%, you have a credit card for a better rate than that. i mean, that's unsustainable for a company that's losing money. >> well, we will see what happens, i think it's crazy on $2 billion worth, at this point if i were wework, i'm surprised -- >> maybe he thinks he will end up with some of the real estate at 50% off. maria: we will take a break, general motors, united auto workers bringing union leaders together in motor city for negotiations, we will take you there. washington nationals bringing the fire in game 3 of the playoffs last night, tall hay -- highlights ahead as we watch earnings. back in a minute. everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the bes

shery: what would be the other option, jpmorgan? we reported last week that wework had higher jpmorgan morgan to refinancing talks. we understand 60 housing finances have been looked at. the total could package $5 billion. the breakdown is still up in the air. at this point, it looks like it would be a $5 billion that package. shery: last week, as we saw the news breaking, their bonds jumped to a record. michelle: when a news came out of they were facing a cash crunch, bonds plummeted. bonds have been trading at distressed levels ever since the ipo was pulled. when the news came out that they were looking at a $5 billion debt package, that set the bond soaring. that meant the company was not go into bad territory. that are investors, banks have an incentive to help his company turn itself around. fails, that is bad for more than just wework. shery: when do they run out of money now? michelle: as soon as thanksgiving is when they need to get things sorted out by. shery: michelle davis, thank you for the latest on wework and the diffe

would a fed rate cut really matter did they read jpmorgan's numbers? holy cow they're just racking up fees left and right commercial bank and asset management divisions were both effectively flat but wait a second, it's not as bad a result when you consider where we are in the business cycle. obviously there's some weakness in the business cycle. will you look at this? isn't this beautiful the stock only jumped 3% on the news i like it even more after this run. not only is jpmorgan best of breed, even after that, it sells at 12 times next year's earning estimates. that is ludicrously cheap. i did a club call this weekend and i said you know what, this is the one it can do that it really can. it can break out to the upside after jpmorgan reported, it's so tough, so tough to go after them, but that's when citi group reported and it posted a nice top and bottom line. it was the kind of result we've now come to expect with modest revenue group, in-line costs partially fueled by the company's monster buy backs. while citi's came in less than expected, they

jpmorgan revenue up 8% wells fargo and citi flat.share price leading the market, citi and wells fargo have more levers to pull going forward. the theme is low and net interest margins offset by decent loan growth those two factors combined jpmorgan holding small growth in interest income year over year down 1% quarter over quarter, citi and wells fargo declined year over year income commodity and currency tradi tradi trading gained the most focus. goldman, sachs was only in line with expectation equity trading revenue, investment banking revenue was in line for most of them goldman, sachs shares down, despite headline revenue being in line. they missed due to lower than expected buy backs, softer investment banking revenues than expected we reported earlier that jamie dimon sounded more cautious. he was still confident about the u.s. consumer. here's the citi citi ceo. >> we saw them revise growth downward i would describe that as more of a catch up to where many of us had been than necessarily any new information. 3% global growth n

sample last week, but majority of companies beat earnings and the most important thing, i think, was jpmorgan and american express talking about the strength of the consumer in loans and spending and that's really the underpinning to the economy. and so we also know the fed, they have a meeting coming up. i'm not expecting them to cut rates, but they have made it clear they stand ready and i think that forms an underpinning for the market. and not to mention china we have a little truce there >> i think we were all expecting some more down babeat commentar from what we've heard so far but so far, it's been okay maybe restrained, but not so negative from the executive ss. >> exactly things a little bit lower. but that's what people are waiting to see, what do they say about the consumer it's encouraging >> by the way today, you take boeing's negative effect out of the dow and all the major indices healthily higher coming up, by the way, an interview with secretary of state mike pompeo. he'll weigh in on energy, syria, ukraine, china, and much more. that is about five to ten minutes away don't

if jpmorgan does come up with the cash, you get the feeling that it can be fixed.ng is softbank comes in and just buys the equity out. why? because they are in it so much, they can't let this thing go under. then they take a controlling stake, maybe they probably fire current management and the ipo is many years away. or a long time off. third thing is just break it up and sell it, let it just blow the whole place up. we should point out one other thing because i have been asking, adam neumann, the ceo, has come under a lot of fire, he's now executive chairman, he had resigned as ceo after the botched ipo, is he under any sort of regulatory pressure and scrutiny. i am told no. that's his statement. i asked for a statement from his spokeswoman and that's what we got. i am told he is not under investigation. liz: i have a very important question. >> yes. liz: does anybody have a razor? what the hell? >> you know what this is? liz: what is that? >> this is arafat. liz: all the more reason. get me a razor. >> arafat doing the queer eye. like i'm a very, you know, styli

just the two banks alone, jpmorgan, they have got 10,600 branches.hey give us a great view of domestic economy. jamie dimon saying the american consumer is going strong. what does that mean for the stock market going forward? joining me nuveen equity strategist bob doll. thanks for joining us. >> thank you. charles: so far so good for the week 23 s&p companies reported. 91% have beat. won't be all that good but what are we getting so far. >> the strength of consumer. we have yet to hear from manufacturing companies where things are more questionable. we need stabilization in manufacturing here and overseas. germany, china, pmis, the isms, get a little stabilization there i think we get a lift. charles: when jamie dimon this morning talked about the u.s. consumer, waynes are higher, spending combined with strong balance sheet and low unemployment, that is offsetting weaker business sentiment and capital expenditures and some things people are concerned about manufacturing. can manufacturing be soft for the moment with the strong u.s. consumer? is that

and if you want to buy a bank, go buy jpmorgan.organ act very poorly and some of the other money centers really underperform jpmorgan, so stick with jpmorgan >> paul, you're out with this report that talks about revisions heading into earnings season and how typically, it indicates an upside for the stocks, except for financials. how are you reading in the analyst revisions when it comes to banks and where we're heading into with the earnings season? >> yeah, so when they have positive revisions, they tend to do a little bit better, but right now we've seen in the last month of financials, negative revisions outnumber positive revisions. so sentiment is very negative on the stocks i think dan is right that they're not going to get back to their glory days of valuations but some of these big banks like jpmorgan pay higher dividends than the market and the s&p financial sector and they have plenty of room to increase those dividends i think if you do see weakness in the stocks following earnings tomorrow, you should get into it and j

a couple of weeks back, jpmorgan might jump higher. >> jpmorgan, routinely rejected between 119 and 120ing obviously some trouble there. that being said, it's the only major bank on the planet that has made a new high since the financial crisis, and it's obviously best of breed. you buy the december 120 calls for 3 bucks when stock was trading at 117 >> jpmorgan's up about 11% with time left on the trade what do you do now >> i think you probably roll this thing it's had a nice run over the last month traded as low as 111 earlier in the month. now it's about 126 or so so the december 120 call is $6 in the money, closed at about 795. you know you probably took am some profits already. you could have spread this thing because it was an outright call purchase i'd probably take the gain if you're continually bullish, think about rolling up and out for instance the january 130 call now is offered at $2 50 that would break even on january expiration at 132 half, that's probably how i would trade thisfy remain bullish. >> back in september, a big bond bounce >> here's the tlt. here's the trend

taylor: what are your takes on the jpmorgan competing deal?ndrea: i think overall as we have seen in the real estate market, bondholders really do enjoy a strong real estate play. what we have to keep in mind is with bondholders, they are looking for steady income. with wework's business, if they can turn it around in a long-term strategy play, the bond would actually perform very well. but that is it taking the bullish perspective. a lot has to happen between now and that turnaround. taylor: and sarah mentioneded the jpmorgan deal would take longer and one of the benefits with softbank is they could get it quickly. how quickly does this company need cash, and if they get it, how long can it last them? andrea: if they can minimize a lot of the overhead with sales and marketing, which i think is trailing on the balance sheet right now the business could , sustain a little longer than we were all expecting. however, they do need about $3 billion in cash going into q1 of next year. taylor: looking at the softbank side, how much of their reputatio

one from their biggest shareholder, softbank and one from jpmorgan. let's start with the state of play wework spokesperson said they have retained a major wall street financial institution to arrange financing. what do we know? >> it could come down to these two options. the major institution is likely jpmorgan if wework will raise debt that will come at a higher cost over the last few weeks we have been reporting how the credit rating has come down. the other option is softbank remember at the end of 2018 softbank was going to invest billions of dollars more into the company to take a majority stake. those plans fell through as the vision fund investors were not on board with that you have to wonder does it come down to adam neumann he has majority control. which option does he want to go wi with >> what's the significance of them going with softbank >> it has no cash flow what would the debt investors be paid with? >> office space. >> i don't get that. i imagine it would have to be softbank we don't know if neumann still has control or not i think i

i should mention, jpmorgan seemed to buck the trend.cing their headquarters last year, said they were recommitting to new york city. but according to my sources, once that amazon deal fell apart , that was supposed to bring thousands of high-paying i.t. jobs to the area. wasrnally, as the bank reevaluating its location strategy, amazon deciding not to theq2 here, that killed opportunities in new york. jpmorgan had been banking on amazon flooring a lot of tech talent, they were hoping to poach from that same pool. now it is not as likely. shery: we mentioned the texas what other alternatives are out there? michelle: moving employees to ohio, delaware. delaware is where they have had a lot of these employees. i hear that they will be moving some junior investment bankers and even a whole credit risk team is being moved there now. we have heard they are madison,ng selling 383 their investment banking headquarters for a decade. again, still very much in flux. they have not made formal decisions on how many people will be in new york. it is

a stable: call the jpmorgan coin. it is backed by the dollar, so israel stable. [laughter] >> do either one of you worry about competition? i heard it at the board meeting yesterday. internet platform companies that can great your data. an asymmetric relationship. bank data,e enrichment, and use it for their purposes, but banks don't have the same opportunity. are you worried about internet companies taking away market share? >> yes, these companies are great competitors. some are good, some are not good. some will do well, some will not. we should be competing with them on a level playing field. all know this, but a lot of account tour bank someone many years ago. you gave it to them for a reason, but they may still be coming in and taking your bank data every day. account to someone many years ago. that should not be allowed. we have sued people over this, we have locked people down. we have put a system in place that i think everyone should do. we will tell you what data is being taken by whom, and you have the data to turn it off or not. we are not saying tha

to achieve a deal a lot of stocks within a percent or so of new highs including nike, microsoft, jpmorgan chase is there at 120. tyler, back to you >> thanks very much. as the major averages close in, will earnings be enough to take the markets to those highs gentlemen, welcome to both of you. you both share the view that earnings are not going to be the nectar to the market that maybe some would like it to be burns why don't you explain first why you feel that way. if there's probably going to be one driverer, real, really the will come from the macro fronts. we had good news coming out of the brexit negotiations and we had a temporary cease-fire with the u.s. china trade what it seems those have done is steepened the yield curve a bit. it's positive for the financials it's positive for cyclicals and value equities as well that might be a bit more of a driver for the remainder of this year for earnings. >> if it isn't going to be earnings that take the market higher, i guess the question could go one of two ways what will it be on the one hand or conversely, is the market kind of whistli

the thing with the jpmorgan chase package, it would take so much longer to pull together.oftbank could pull the money together very quickly. that is the advantage there. >> shear chart that i am showing to our bloomberg terminal audience. we know the story. the bonds are trading down to about 84 cents on the dollar. yet that is a far cry from 30 cents to 40 cents that you normally see. when you look at the jpmorgan deal and the bonds, this 15% coupon, i know we don't know much about the price or kjeldsen, is there a sense that there is a general market appetite for a big high-yield deal like that? >> yeah, i would say so. they have found potential investors. nothing is firm yet. but just the notion of a possible deal, then wework's existing bonds were higher this week. they had been trading lower. if you price something right, you can always find a market for it. >> what are your takes on the jpmorgan competing deal? >> i think overall as we have seen in the real estate market, bondholders really do enjoy a strong real estate play. what we have to keep in mind is with bond

jpmorgan is one of its biggest financers.f bailout package to help the company, to give it cash before runs out of money. we heard from sources that could be as soon as next month. they are racing to try to put together a couple of different alternative plans. one is led by softbank. we've heard that that is about $5 billion that would be a combination of money that the company would put, softbank would put into we work. it would come from softbank group itself rather than the vision fund. on the other side, you have jpmorgan putting together this debt package which could carry very high interest rates. we've heard it could be 50% interest rates in order to get investors interested in putting additional money into the company. these are two competing alternatives. it's a very fluid situation. the board still has to look at these options. there's a possibility could see some combination of the options. haidi: the jpmorgan root would be the riskiest offering in recent years. what are investors us -- saying about this? >> invest

we have the terror of global research for jpmorgan.h for having a fear. -- the chair of global research for jpmorgan. thanks so much for having us. importance should investors globally looking at these talks for progress? miniybe they can get a deal, not a comprehensive deal, but a narrow deal on a couple of issues. i think there is -- [no audio] an area where maybe china agrees to buy more agricultural products like they have done in the past. , if donaldhe u.s. ofmp is willing to let go that lever, the no more tariffs. >> the chinese also have the existing tariffs that can be rolled back, the national security issues that have come up. there is a broad range of issues. i think immediately, we are looking at the agricultural purchases and exemptions they have talked about going through. >> what should investors be looking for or bracing for in 2020? stories, as the big the rising geopolitical risks and deterioration of business, we're looking at manufacturing numbers and expansion lows for september. the global has collapsed. -- has c

jpmorgan, on the other hand, has led the pack throughout the day. their 8% revenue growth year over year really stands out compared to rivals jamie dimon was more cautious on the corporate outlook due to the trade war but remains very upbeat about the u.s. consumer focus turns to bank of america tomorrow and morgan stanley on thursday ceo will join us exclusively here on "closing bell" to go through all the themes of the week and much more >> and earlier today, you mentioned, there are some more levers to pull, potentially there. >> yeah, so, interesting how they both were lower in the premarket when they reported and both significantly higher now. and they both did face that kind of pressure, because of the yield curve. the tone, though, that came across during the call, one, importantly, was that the forecast for net interest income, the part linked to the yield curve didn't really see declines it's almost as if we saw the worst in their forecast for that interest rate-sensitive part of the business, even if we get a couple of more rate cuts and t

jpmorgan popped 11%. unchanged a week later.k later. they can't hold the gains. i want to switch gears a little bit because it feels like the company that everyone is talking about for the week is netflix. that's a hard one to figure out quarter to quarter, but the last lot more pressure on them now than ever before. >> yeah, i don't think it necessarily represents the whole tech space because they are more in direct competition situation with competitors that make hardware, frankly, now apple, google, i just don't know how -- and yet their costs of making content which is all they have to have now to keep people from switching or paying for other services is very expensive. i don't see how they will ever be an extremely high margin company given that background, and i think investors are starting to get concerned about that there will never be profit margin to support this level of valuation. they show anything weak this week, it is going to be pretty negative for the stock which hasn't been doing that well either. but again i

michelle: there were two packages that were dueling, one from softbank, the other from jpmorgan.a last week, we heard that wework was in favor of the jpmorgan package because the company could retain control, would be a lot of debt, but would not dilute shareholders as much. they ended up going with softbank. about $9 billion rescue package. softbank has not invested nearly $20 billion in this company that it is now valuing at $8 million. that includes a $1.5 million equity tranche, and the rest is debt. it is pretty marvelous that they are investing so much in his company, that they are staying with his rescue package which they don't believe is worth as much as they have invested. shery: softbank has their own issue, setting up that second vision fund. what do we know about how wework is planning to spend the money? some of: at this point, the money will be used to help get some of their properties to mature status. they said only 30% of their properties are at that level. i think they will also s me of the money evaluating what to do with the business. there is talk about poss

. >> do we know if this is in lieu of the jpmorgan deal or instead of? >> if these are both on the table, that's pretty different. one of the major decisions that the board will have to deal with this week and into next depending on how long it takes them to make this decision is which one is better for the company? which one will provide them a better path forward? the jpm deal is around the same amount of money. it's in a somewhat complicated debt package. , due to getstock control of the company? >> they do not. they do not get majority control. longer ceo, heno board member. he still owns a lot of stock. board member. he still owns a lot of stock. in a transition like this, the ownership could change. he could be looking to get nonvoting shares or some combination of different shares. it they will be taking on more of a stake in the company. control not necessarily guaranteed. >> what would be the new tiger -- valuation? lower than the high water line that came up earlier this year. it seems like the ranges are all over the place but it could be as l

jpmorgan is leading the banking effort.lert the we work board about financing as early as friday, could be over the weekend, but it is do-or-die time. they are going to tell them about the bank financing. can they get enough money, about 6 billion dollars, can they raise that money? they are now scouring between 60 and 100 possible investors, to raise this money. it's essentially is this, if we work would rather have plan, the bank plan as opposed to the soft bank plan which i will give you in a minute, if they can raise that money, it will be borrowing, give them enough time to get them in the crash crunch, likely to run out of cash in november, give them about a year for financing. they can get down to its core business and do an ipo in next year or two. that's the plan here, if that i go the jpmorgan route. that route is contingent however on being able to raise enough money. we should point out if jpmorgan does raise enough money there's a good chance that soft bank will put a little bit of equity in as well. but there'

we are also showing you, jpmorgan, here's that stock. reported earnings this morning. the company had record revenue and jamie dimon says the consumer remains very strong. >>> i want you to take a look at johnson & johnson because this stock is up, it actually raised its guidance despite 13,000 lawsuits. more on that in a moment. check goldman sachs, just mentioned it, it is down. they missed on top and bottom lines. a couple things did well. trading was okay for them, other parts of the business not so much. other companies reporting this morning, united health, citi was so-so, so is wells fargo, mixed bag there. fractionally lower for the two banks. united having a pretty good start to the session, up more than 6%. >>> joining us now, d.r. barton, susan li, ashley webster. the dow jones industrial components doing pretty well for the most part. think about jnj. you got 13,000 lawsuits, anything from baby powder to opioids, everything else, and they were still able to get forward guidance. what do you make of this? >> here's what i beli

jpmorgan out with a note saying shocking, simply shocking.alk with michelle, the ceo of biogen. there are already questions about is this the data driving this, the fda taking a different tact he said this is the data we're following the science here there was a futility analysis. they looked at the studies at an interim basis. as companies always do and try to figure out if the drugs la s look like they will k you saw the drug take a massive hit on the news. everybody thought this drug was dead and even more than this drug itself, the whole hypothesis that targeting am lloyd beta plaques was the right way to go after alzheimer's disease. i talked with him and the lead of the program who said the science drove this it is extremely rare after a futility analysis suggests the drug isn't going to work, it actually will work. so the company saying they're going to file for approval in early 2020 after guidance from the fda. the ceo telling me they dotted all the ts and crossed all the is with the regulator. on the call, the head of r&d telling an

it was a jpmorgan intern that pointed this out to me years ago. it was one of his summer projects >> in terms of the trade, does it matter the hope buildeme buie been up a lot going into this period >> right they have been monster, almost 50% for some it's the same thing that's happened three times even in the next six months they built on those gain. i think it's a sign that it might do even better >> you say a 3% move in the s&p between now and your end, base case what happens in 2020 does that get stocks to a price where they are vulnerable say to a 10% or greater correction in 2020 >> our thinking is markets have gone nowhere for 20 months we had flat markets hovering it's only happened three times since world war ii three of three times it was resolved with massive upside break out in stocks. i think if the s&p hits that 3100 it's going to be the fourth instance i think it tells us s&p 4500 by 2021 >> what did the intern think >> i'll have to find him on bloomberg. >> thank you >>> billi >>> biogen is the stock today. remember back in march t

last week there was a jpmorgan piece that was very negative they did 4.8 people were looking for 5.2.e worried about domestic i think you find yourself a buyer of the stock obviously the issue is there are others that are more attractive in the space i like wendy's the idea that this is some sort of a dramatic short fall given the fact that we're all looking for a short fall, i'm not buying it i think that this is one that we want to hear what they have to say. i don't believe it's as bad as the stock looks. given only because i realize that many people said it was going to be bad and it was not great. >> no. >> i would kill for a 5.9% comp. >> right. >> it's down 7 people looking for stuff to buy. >> right. >> maybe down 7 you buy a company with huge -- huge global comps, there is so much good today, though. procter, united technologies procter is incredible. i don't know, how do you get double digit for some categories that have been so bad. >> beauty and health and -- >> i thought that was incredible. >> just to see numbers like that, a big company like that, able to turn things ar

they were also believed to be considering a jpmorgan rescue plan. more details on the scoop from ellen huet wednesday. plans thatone of two are maybe in the works that are the subject of a lot of discussion going on this week. scrambling to keep the company going and are set to run out of money as soon as next month. as you mentioned, there is a new deal for a potential proposal to invest something around $5 billion in the company. that would give them a much larger stake in the company. although, as we reported, not a majority stake. taylor: do we know if this is in lieu of the jpmorgan deal or instead of? >> it seems like these are both on the table. they are pretty different, so one of the major decisions that the board will have to deal with this week and into next , depending on how long it takes them to make this decision is -- decision, is which one is better for the company? which one will provide them a better path forward? the jpm deal is around the same amount of money. it's in a somewhat complicated debt package. so they are trying to pi

i think now that is jpmorgan. jpmorgan came out this morning, good earnings.sumer lending business is strong. i think that's why the market is up. >> neil: there are a lot of things we don't know yet, for example whether we will get past phase one of the china deal. the chinese are raising hackles. you have to remove the december tariffs, no movement on that. the tricky stuff, we don't know about that. it's accelerating. we've upped the ante with sanctions. then we have this impeachment thing. it goes on and on and yet the market climbs and climbs and climbs. >> add to that brexit, the iran problem, kashmir, a lot of issues. the ims came out and said the global gdp growth was going to be around 3% which is the lowest we've had since 2009. we had a contraction in gdp. you see of global slow down, a lot of problems in the world so you want for your money money where it's safe and there's no yield to put your money. dividend stocks, stocks that are fragile assets. the only place to do it is in the united states. >> the secret is, i like to tell people, us, the co

jpmorgan lowering projections from 5% to 6%.s less value attention around the company's current offerings as well as a missing presence in the chicken sandwich wars and a bigger push into plant-based meats but on the upside, jpmorgan projecting that the investments that mcdonald's has made around technology could help to boost spending in the future back over to you >> it's pretty amazing mcdonald's has made at least three acquisitions in recent months that are focused on technology so how does that change the game in this company? >> that's right. so mcdonald's has been making a series of either strategic investments or straight-up acquisitions in the past six months all centered around enhancing and bettering the customer experience some voice recognition software technology so they're hoping that will be in play in the quarter to come that dynamic drive-through technology is in about 800 stores now and should be fully across the united states by the end of the year. that could push more traffic to mcdonald's in the future, gu

jpmorgan comes out, consumer is strong. consumer is good. market goes on 15% run. same thing this earnings season with jpmorgan going first. you're seeing this come in after this. starting to see worrisome signs of consumer. don't know if it is amazon story. i this amazon is one of the best companies in the world. it is worrisome to see the consumer slowing. >> if i could throw this in, fourth quarter operating income, 1.2 billion to 2.9 billion is guidance. it is significantly below the estimate. connell: that speaks to spending on operating income, maybe on terms of getting your expenses. jeff, your final thought? we'll move on. >> the health of the consumer that is the story. i like john am very concerned about this number. i said if the consumer breaks the market is going to break. we have to dig into this. this could be a sign of tough times ahead. connell: always say some of the conference calls are not worth tuning in for. this will probably be. susan, were you saying something before we wrap it up. >> get back to you on the revenue number for the quarter. p

. >>> apple's price target was hiked to $265 at jpmorgan. the analyst seized sentiment on the stock, they have an overweight rating on the stock, the stock was up 2% to $223.97. newe brands was upgraded. the company is on the verge of a turnaround. the price target is $25. and the shares gained more than 2 1/2% to 1872. >>> still 18ahead, bernie sanders has a plan to tax corporations and address the pay gap between ceo's and workers. >>> we work has pulled its ipo. the start-up formally announced it intended to go public last month. it revealed big losses and a nfusing corporate structure. then came weak demand f f its ts stock. last week weworks co-founder and ceo stepped down and gave up his voting power in the prhe ipo has been shelved. >>> forever 21 has fed for bankruptcy. the fashion retailer that hel popularize fast fashion has filed for chapter 11 protection. they would cease operation in 40 cea countries and close up to 178 stores here in the u.s. forever 21 plans to continue to operate its website and simplify its operations while

i take jpmorgan trying to protect its employees like this maybe?> perhaps trying to look at pits employees and their tax situation as well. maybe some of them are asking for this. stuart: and morgan stock is so up had this morning, and otherwise up market. got it. thank you, lauren. at&t they added more mobile phone subscribers who pay a monthly bill. and they're 5% dividend looks solid that stock is up 3.5, on at&t right now, the dow component walgreens they reported high or profit held by high per prices for branded drugs and increased prescription volume. that stock is up 1.5 all up this morning and then support making money helping buy more paid prescriptions 8% higher what a someday. all right now look at microsoft. stocks up very nicely thank you. it beat out amazon for multibillion dollar pentagon deal. the stock is at 144 premarket up 2.5%. lauren, com into this. this has all about cloud business -- gaining ground here. a surprise win for microsoft they wanted $10 billion tenure deal from the pentagon everybody thought amazon could get it b

mcdonald's is among the very bottom losers of the dow 30 after jpmorgan forecast that a coming miss oname-store sales for the third quarter, but despite that bearish sales call, jpmorgan says we're still hot on mcdonald's shares we reiterate a buy rating. the stock is down now. but investors clearly not loving the notion of a slowdown in foot traffic. while they got their october surprise and an unwelcome one, could the broader markets be in for a bigger scare? a fox business exclusive with the wall street guru who for decades has had almost supernatural midas touch. blackstone's annual ten surprises report each january 1st are the most widely read on wall street in history. we have him now, well before january, when "the claman countdown" comes right back. ♪ hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ sometand with theall screen xfinity stream app, which is free with your service,

let's bring in steven, the number one industrials analyst on wall street, the senior analyst from jpmorgan. good to talk to you today. >> thanks. how is it going? >> you heard i think some of the commentary around utx. how would you sum it up? >> yeah. so keep in mind this is a story that's been many years kind of on the come. they've been in a heavy investment cycle for five or six years now and every year it was kind of a bit of a false start on street expectations as to when this thing would inflect. i think we are kind of finally here and i think that's important because the whole profile of this group right now remains that, you know, at least a couple months ago when i talked to you guys, was that the defensive growth names were getting high multiples and the cyclicals were getting very low multiples and people were nervous about those. i think you've seen that reverse a little bit here in the last obviously month or so which i have my views on, but utx is one of those where it should really be in more of the defensive growth camp and it was trading like it was a beaten down cyclical

>> jpmorgan easily had the best quarter. solid. >> which is the best stock >> citigroup is the best stock ten weeks from now, value acts to support is it expires eith s get citi gets it done on their own. >> what's the would stock? >> plain vanilla banks are not doing well citibank, wells fargo and jpmorgan in the meantime, the rest of the industry's expenses have gone up one-fifth, over the last four year, the industry expenses up one-fifth. the three big banks are flat the largest banks are getting the benefits of scale. the smaller banks are not. >> address goldman's quarter wilfred frost is out in california, he's interviewed greg lemkow. how do you agress the quarter? >> goldman sachs results this quarter, it's not a close call they had several markdowns they underperformed in investment banking and trading. >> and others were up in investment banking >> right >> it wasn't a great quarter but, yeah, goldman underperformed by -- >> leaps and bounds. >> they were last, why >> well, this is a transition year for goldman sa

the jpmorgan deal would have laden the company with debt, no doubt.y they raised the 5 billion. i was skeptical but they raised it. however, that might be a negative. the positive was that shareholders, people that are in the stock, the early investors, they wouldn't have gotten crammed down and deluded. this deal clearly dilutes the shareholders. in the jpmorgan deal they were not going to pay a dime to mr. newman. he would have been out, right, or nonexecutive chairman land. this deal paid him. i'm telling you, you have to have -- unless i'm missing something here, you have to have a lot of -- to sort of rationalize this deal. yes, the other deal was expensive. it would have been debt, but it didn't cram down the shareholders. he got no money. this deal the deal where the guy at the top conceivably -- i mean he's responsible for its botched ipo, for the overspending, for being in a million businesses they shouldn't be in, the gross mismanagement, gets money and consulting contract. and stockholders get diluted massively. i'm just telling you, i don'

i think you could equally say goldman sachs and jpmorgan.newman had a very close relationship with jamie dimon -- liz: had or has? >> i hear they're -- reason, listen, he stepped away. the ceo -- thepany's run by two other executives, but, you know, jamie's still there. if you look at the timeline, apparently newman stepped down after speak, after, you know, being around the jpmorgan offices in the executive suite. so the theory that jamie said now might be the time to go. so that's where we are right now. soft bank is telling peopling it's standing behind the company, that means it's likely to put money in, and then they could raise money. but if soft bank backs away, i don't know if they can raise money. and we're going to find out. i mean, i think this is going to come to a head soon. liz: charlie, thank you very much. charlie gasparino. the nasdaq taking it on the chin down 1.9 5%, a lot of 112 points. we are coming right back. don't go away, ten minutes before the closing bell. ♪ ♪ but allstate actually helps you drive safely... with dr

we get a look from the jpmorgan guru.is bloomberg. ♪ all right, it's time for a bloomberg exclusive. the s&p reclaiming an all-time high after its july record, is the smart money all in? are there still concerns on the horizon? quinn atby with vonnie the robin hood conference. -- vonnie:nk you, thank you, joe. the s&p closing at an all-time high for today, but we have now surpassed where jpmorgan said we would end of the year. do we stay at these levels? wouldsaid that this happen in the first quarter. the publisher note from earlier was that it might have an earlier. our price target is still above. we are still positive on the market overall. we don't think we are going into recession. there is perhaps some upside from here. vonnie: you wrote a note recently saying that the window is open for value. how long is it open? open: we think it could be as long as the election is next year, but most likely in the first quarter of next year. we think that pmi's are likely to be bottoming and we are seeing signs of that in asia.

jpmorgan, obviously. market earning gets it rewarded 1.6 times price to book value. but morgan stanley, goldman sachs and citi are trading below book value the market is saying fine the this might being your peak returns on equity. if you look at the whole set up citigroup continues to stay up perhaps looking as most cheap relative to how it's been performing, guys >> interesting on halftime today they think it's a golden age for banking stocks the issue is, okay, the numbers were good. we could say that. the stocks have moved a lot in a short period of time over the long period, no but lately, yes. so how do you deal with that >> it's about positioning. nobody is in these stocks. if you believe in the value to trade these are classic value stocks we're also returning cash. they have dividends. they are buying back stock that's very important. so, i like them. i don't know if it's the golden age at this point but they are cheap enough still and they are returning shareholder -- shareholder returns, i think you pick your spots. >> all right well netflix is one of the

there will be debt involved and the jpmorgan financing package is being discussed.could be expensive for them, not to mention the jpmorgan has competing interests. existingcan dilute shareholders, including adam neumann, who has a loan out with his share of budget collateral between morgan and the banks. you have tension among the stakeholders. romaine: the tender, i guess that is for the existing shareholders. is that good? >> for the existing shareholders, but remember, it's much lower than before, some money is better than no money. [laughter] it depends on where you got in at. caroline: notably, softbank is looking to take a majority stake , where as before we did not think that would happen? >> that is a big deal, as we knew that softbank was the preferred option. shareholders like softbank and they think that they will give them the time that they need to turn around the company. right now softbank has no choice but to like them back. [laughter] is, what is the difference between taking money from softbank versus the vision fund? >> the vision fund is like any