for "nightly business report," i'm morgan brennan. >>> with industrial companies like cat and 3m fueling the market to new highs today, does this mean the market rally is broadening out? christina hooper is global strategist at invesco. christina, welcome, good to have this rally recently has been tech and financials. today, a couple of old line industrials helped along. is this a good sign, is it a sign that there is a rot? >> well, there's certainly a rotation going on. and this particular one has been fueled not just by the global economic recovery, but by a weaker dollar, which is certainly helping a number of industrials. but i think the key point is that the advances being made by the stock market for the most part are fairly narrow. and it does suggest some underlying vulnerability. that coupled with, of course, stretch valuations. >> give me some detail on that, on where it is narrow and why that is a vulnerability. >> well, it's narrow in that we just don't have that many stocks on a given day participating in a rally. if we were to look back over the last few months, for exampl

morgan brennan is back at headquarters with all the details. hi, morgan >> reporter: hay, melissa. it was a trifecta of bad news for ge most stunningly, a huge cut to 2017 operating cash flow ge had previously forecast 12 to $14 billion for 2017 today, the company cut that in half >> the cash flow for 2017 is horrible $7 billion number, it's way off of our expectations. anyone's expectations. that is not -- that's not the new normal $7 billion is not the new normal there are a number of steps we're going to take to improve that significantly in 2018 and beyond >> reporter: on the call, management said there will be more restructuring costs this year and doubling next year's cost cutting target to $2 million. but there may not be enough cash coming in to cover the dividend. currently, there isn't today flannery wouldn't commit to keeping it as is. >> we've talked about the dividend already from a philosophy perspective, we've managed for total shareholder returns. there will be a mix of capital that goes into dividend, a mix that goes into organic and inorganic investment the final

morgan brennan has more on amazon's latest push into the territory of fed >> reporter: amazon is diving deeper into the delivery business. the e-commerce giant is reportedly testing a new service in the u.s. that would target independent sellers that participate in amazon's prime two-day shipping program. amazon would manage package delivery, bypassing their own system of warehouses. fedex and ups would still make the deliveries, but amazon would be calling the shots. analysts an investors are missing the bigger picture. >> amazon is doing what larger retailers do, they build out their own infrastructure. walmart has 8,000 trucks, 30,000 trailers, dozens and dozens of distribution centers, yet they're still the largest customer for eve mainjor trucker 0 you tell there. >> reporter: for ups and fedex, e-commerce respects a fifth of all business, with amazon a fraction of that. it's a dynamic that we discussed last week. >> we pick up and transport and deliver things from 220 countries in the world, from billions of people and millions of businesses, one to the other. they seem like they'

morgan brennan has more. >> reporter: ups expects to deliver 750 million packages in holiday season. it would be another record, a 6% increase compared to last year. the delivery giant expects to handle at least 30 million packages or double average daily volume on 17 out of the 21 shipping days that would make up peak season. ups's cfo says it's crucial the return on all the investments it makes to keep up. >> we're creating different solutions for our customers during peak. as we do that, we're putting new resources in, creating temporary capacity. there are very few businesses in the world that can flex 100% of their average daily business for a four to six week period. >> reporter: according to a recent deloitte survey, for the first time ever, more people will buy things online this holiday season than in stores. companies like ups and fedex have been pouring billions into their next to expand capacity. a year-round process that will be put to the ultimate test in the month of december. to repair, ups is hiring 95,000 workers, opening more facilities, putting three new boeing-ma

cnbc's morgan brennan has details. >> u.s. consumers are feeling pretty good about opening up their wallet. the consumer sentiment index has jumped to its highest level in 13 years. retail sales are up strongly as well. september's increase was the biggest in two and a half years. walmart wants to speed up returns at its stores. currently it takes about five minutes. a new app is supposed to cut the time down to just 30 seconds. finally, why do people make bad economic decisions? why do nfl teams overpay for top draft choices? if you had figured it out, you might have won this year's nobel prize for economics. instead, that honor went to university of chicago professor richard thaler for his work on irrational decision making. how does the decision making expert plan to spend his $1.1 million prize? he says, quote, irrationally as possible. i'm morgan brennan, get all your business news on cnbc. >>> all right. let's talk weekend weather. we'll begin with visibility here because this morning we do see some spots of just some pa

i'm morgan brennan. get all your business news on cnbc. >>> starting out with a live camera view in wilmington, delaware. looking over the stadium, it's cloudy, there's some fog in place. it's just not a pretty morning but the good news is it will be a pret afternoon. we have to get there first. our radar and satellite view. clouds are in place and then patchy fog. some misting this morning and even isolated trying to fall right near the jersey shore. really we are not talking rain for today. what we're talking is drying out our area. temperatures currently in our philadelphia neighborhoods. check these numbers out. 67 the average high this time of year. some of us are there right now. fox chase, parkwood, and then very close to that at 66, center city and down to the airport, 66 degrees. temperatures right now much warmer than they should be for this point in the day and this time of year. in the afternoon it will be much easier for the temperatures to rise to the upper 70s and even low 80s. hour-by-hou

morgan brennan is back at headquarters with the details. hi, morgan >> reporter: hey, melissa. tough month, tough week, tough year, now down 32% for 2017. but with a new ceo and management team, there are some clues on how execs and investors are viewing ge's prospects insiders rarely sell ge. that hasn't really changed ben silverman says since 2017, selling by outgoing vice chair beth comstock. before that, 2016 had only one, a transaction by jeff orenstein, his first and only sale on record that one and joyce's this year were for real estate transactions comstock not really clear. but the buying is what tells the bigger story former ceo jeff immelt was a pretty big buyer, including four weeks before his retirement. new ceo john flannery seems to be taking a similar approach in august he boosted his stake by 20%, spending 2.7 million dollars. ge has five years to build an equity stake worth ten times starting salary. i'm told flannery has already met that since april 6th, other board members bought, including james tissue of lowe's, whose $2.5 million investment was his first

i'm morgan brennan more potential bad news for equifax. company firming that it has taken one of its customer help web pages offline as its security team pages offline as the team looks into at potential cyber breach. the spokesperson saying we're aware of the situation identified on equifax.com website. our i.t. and security teams are looking into this matter and that a bun dance of caution have taken this page offer line this coming after independent security analyst are trying to trick visitors into installing adobe update this coming with malware it's affected the data of 145 million u.s. consumers equifax equifax shares are down 3.5% on this latest report back over to you >>> paging senator warren. paging senator warren. it's matter of time before he gets on that >> this is a stock that bounced off of 90. very, very strong bounce beyond even v shape. got up to 115. now it's rolling over again. i don't think it holds 90 this time there's no shorts in this stock at least as of the last data i saw. less than 3% shortage. i don't get it d

morgan brennan fakes a look at the changes >> shares of general electric tumbling today after the industrial giant announced sweeping leadership changes. among the biggest, the departure of cfo sorenstein replaced by transportation head jamie miller. in march, the latest example yet of the strategy taking shape under new ceo john flannery. but the move stunned wall street. especially since flannery had supported borenstein at least until recently. analysts worry it could signal more bad news. >> he's viewed as being able to roll up his sleeves with john flannery, the new ceo, to effect change. so i think there's a concern here that with him leaving, that maybe the underlying earnings of the company is a little worse than expected. >> but the changes are also overshadowing another development. activist investor will finally join the board. trian owned nearly 20% of the company when it invested $2.5 billion. trian has lost money. but today it said it continues to, quote, believe that ge represents an attractive long-term investment opportunity with signifi the stock has tumbled by 25% this fla

morgan brennan takes a look at the quarter and what may be ahead for ge. >> reporter: for general electricit's all about restructuring. still, the oldest stock in the dow's new ceo john flannery says everything is up for review as he begins to make "sweeping changes" at the struggling company. >> i've spent really 90 days exhaustive review of the whole company, so the businesses, our culture, corporate spending, everything at the company has been up for examination, every stone turned, no sacred cows. >> reporter: the comments came on the heels of a particularly disappointing quarter. earnings missed expectations by 20 cents, and full-year profits were dramatically slashed. but the biggest surprise was operating cash flow. ge had previously forecast $12 to $14 billion for 2017. today it cut that metric in half. flannery is already taking steps to rein in costs, eliminating what could be thousands of corporate jobs. grounding the fleet of company-owned jets and shuttering some research centers. today he doubled ge's cost-cutting forecast to $2 billion for 2018. but with all this talk of cos

are down more than 3.5% right now >> fresh 52-week low morgan brennan, thank you z. >> shopping online is easy returning things you buy online, a major hassle we'll tell you about walmart's plan to get you in and out in 30 seconds. what's coming up >> for ten years, since the financial crisis, interest rates have been on the way down or low. for eight years, the stock market has been on the way up. in fact, record highs nearly every day. you know that. do you know how to invest in a rising rate environment? we haven't had one in a decade it looks like we are there now we are going to ask legendary investor, bill gross, how to invest and training your strategy coming up at the janus henderson advisory people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might

morgan brennan is monitoring the events from headquarters what's going on, morgan. >> the national space holding its first meeting in 25 years. this is led by vice president and council chair pence and who's hearing testimony on everything from national security to commercial enterprises. so this is a who's who of aerospace and defense, including lockheed martin's ceo, spacex president. the focus, space exploration, including a push to return americans to the moon. this is something the trump administration has expressed some very serious interest in doing. so orbital's dave thompson and bob smith both saying that lunar colonization is doable and the boeing ceo adding that automation and robotics are also big opportunities. >> we see the opportunity for zero gravity, low gravity manufacturing as being a viable commercial practice in space at some point that could either be in low earth orbit or lunar as we're doing on earth with combinations of humans and robots working in our factories, robotic application to space manufacturing i think is another leading edge technology area, an import

i'm morgan brennan. get all your business on cnbc. >>> beginning with that look at our first alert radar and satellite, an interesting picture. pretty clear. we have clouds and fog this morning. when you look at the satellite view it's harder to see the lowest level clouds so it's not showing off as well as would like. mostly cloudy and scattered fog is currently in place. leading to misting this morning when it's a fine rain so when you're driving thatter collects on the windshield and helps turn on the wipers though it's not actually raining. you're driving right through the water. the good news is that will start to weaken. look at the temperatures now. already on the warmer side. a few spots are there now. 65 for west mt. airy. we're officially 66 degrees at the airport. this is a warm start to an october morning and a warm afternoon, too, temperatures well above average. this is just for today. i want you to watch the cloud trend. this morning clouds and fog. speckles of green you see not rain but m

morgan brennan, morgan, thank you very much. 700 pngt in a year, but another high profile investor is calling it a fraud. one that should be compared to enron. needless to say your upcoming guest disagrees. brian kelly coming up to defend bitcoin. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. >>> to say it's been a bizarre two trading days for ge investors is an understatement after disappointing earnings the stock dropped 8% on friday morning only to rally and end the day higher that optimism though short lived because ge shares fell at today's open and now down more than 6%. jeff covers ge for vertical research partners, has a hold on the $20 target jeff, what the heck is going on with ge? was that all short covering friday after

the new ceo john flannery speaking to cnbc today using words like horrible and unacceptable morgan brennan joining us with more morgan >> strong words from what was a really strongly disappointing quarter and this is a quarter that a number of analysts are calling a, quote, kitchen sink quarter since it's john flannery's first as ceo of ge. it's all about restructuring we're still very light on details and makes the november 13th investor update all the more crucial meantime, to sum this up, i would say there are three big factors in play. cash flow, dividend, and asset sales. operating cash flow, by far the it biggest disappointment right now. ge had previously forecast $12 billion to $14 billion for the year today, it cut that in half >> the cash flow for 2017 is horrible $7 billion number, it's way off of our expectations, anyone's expectati expectations that is not a -- that's not the new normal $7 billion is not the new normal there's a number of steps we're going to take to improve that significantly in 2018 and beyond >> now, as we found out on the call, this is what spurred outgoin

. >>> caterpillar surging this morning after a big beat on earnings morgan brennan is back at hq withcolor from the call >> that's right. caterpillar crushing expectations by 68 cents this morning. revenue also better than expected the sales growing across all the machinery maker's key businesses including construction in china, onshore oil and gas in north america, and more spending by mining companies now, cat saying it now expects revenue of $44 billion for 2017 and adjusted full-year earnings were also boosted to $6.25 per share. that's from an earlier forecast by the company of $5 per share so this is a big raise and it speaks to the accelerating global growth signs of recovery in the commodity complex, also the fact that industrials that have been making investments to streamline and make smarter the manufacturing process, not to mention the actual products they're selling themselves, are beginning to reap the rewards. those themes are playing out with caterpillar, but also blue chip industrials 3m and united technologies which also reported beats and raises this morning as well

sara >>> time now for cnbc news update with morgan brennan hi, morgan. >> hi, sara, here's what's happeningr joint chiefs chairman joseph dunford holding a briefing on the niger operation which left four dead. dunford saying the soldiers attacked in niger did not seek additional help for about an hour adding that their families deserve an explanation of what happened he plans to share information once the investigation is complete the ambush happened on october 4th. >>> president trump awarding the medal of on mhonor to captain g rose, ran into enemy fire several times to provide medical care to his comrades during the vietnam war. the 69-year-old is a 20-year veteran of the army. >>> secretary of state rex tillerson urging the iraqi government to resolve their conflict with the kurds through dialogue tillerson making that call in a meeting in baghdad with iraqi's prime minister >>> and rowing away in the giant pumpkin. west virginia university college students hosting a special relay race on a lake horticulture students hollowing out pumpkins to make them float. who knew races like this ar

for your cnbc business report, i'm morgan brennan. >>> power of a good idea at the right time and rightlace separates successful entrepreneurs from those struggling to get a break. >> yeah, this morning, we're joined by a business woman who went from pr executive, stay at home mom, to inventing an entirely new industry. >> thank you, chris and pat. we are excited to have aly wed here, the founder of dry bar, a salon that focuses on one thing, a fabulous blowout. you're a good ambassador for your own product. thanks for being here. >> thank you. >> you're on so much lists, fortune 100, but you had a humble start. just 8 years ago you were working out of the back of your car going home to home house calls. tell us your story, how you went from a one-woman show into this booming mogul business. it's such a great story. >> well, i've been doing hair professionally really for almost 20 years now, and i had a bunch of different careers and i became a stay at home mom, gosh, my kids are 10 and 12 now so many years ago. after staying home with my kids for a couple years like a lot of moms out t

. >> morgan brennan joins us from cnbc with the details. good morning. >> good morning. can start your nissan car or suv with just your voice. the automaker says about a dozen of newer models, including the pathfinder and sentra will work with amazon's electra such as unlocking engine, turning lights on bmw will integrate alexa into its cars to help people get the latest news or ask directions. back over to you. >> morgan, thank you. >>> chick-fil-a keeps opening new stores in our region and today you can grab a clihicken sandwich while waiting for your flight. it's in the national hall before you go through security. you can't take your chicken sandwich i don't think through the mag no tomorrowteres. >> columbia heights and h street northeast are other locations. when i used to be out in the field, we knew where every restaurant was. >> it's about to cater to the habit even more by downsizing the doughnut selection. they will notice fewer flavors bit end of the month. the doughnuts. i think that's going to confuse people if you take out doughnuts. don't you want a dough

ge ceo jeff immelt under the microscope this morning for his reported use of two company jets morgan brennanq with this busy story. morgan >> certainly buzzy you have quarterly earnings tomorrow and ahead of that a "wall street journal" report highlighting the use of a second business jet on jeff immelt's business trips around the world, a plane used as a spare incase his ge-owned jet had mechanical problems ge did tell the journal two planes were used for business critical or security purposes. in other words, this wasn't done regularly, rather an extra plane would be put on standby while immelt was on site in certain locations, for example maybe some parts after seven-stop trip involving africa nonetheless, raises questions about companies keeping their ceos on safe and on schedule we've reached out to corporations and security experts for more insight on this type of practice we'll share that once we have some more, but meantime this speaks to an even bigger story at play for ge right now, cost cutting. new ceo john flannery has said repeatedly there are no sacred cows he's already scrapp

we can, a live one at a launch of a space-x falcon 9 rocket, space-x's 16th launch of the year morgan brennan joins us, a little more commentary morgan >> reporter: this is a falcon 9 rocket that just launched from florida's kennedy space center it is carrying a korea sat satellite into orbit, a satellite that's going to bring broadband and television access to south korea it will be up in orbit for the next 15 years. why this matters, this is the 16th launch for elon musk's space upstart. that means it has now doubled its previous annual record in terms of launches, most launches it had done in a single calendar year had been eight before now it has several more launches on the docket before year's end we get this first falcon heavy, the next-generation rocket test. more milestones expected for this company next year but the plan here, and this is going to happen within the next couple of minutes, is that first stage booster stage is going to detach, it's going to come back down, and for the 19th time in a row, the company's going to try and land that back on earth, specifically on a drone s

. >>> i'm morgan brennan here's your cnbc news update at this hour.urity recipients will get a 2% increase in benefits next year it's the largest increase since 2012 but it comes only to $25 a month for the average beneficiary. the social security administration announcing the cost of living increase this morning. >> the death toll rising to 31 in the california wildfires. with hundreds still unaccounted for. flames have scorched vegetation, destroyed thousands of structures, and even hollowed out a tree nearly 300 square miles have been charred >> kobe steel's president telling reporters the company had uncovered nine more types of products whose inspections had been faked or manipulated, including copper alloy pipes and steel wire rods. both are used in vehicle tires and engines. >> the chicago cubs are moving on, beating the washington nationals 9-8 to win the decisive game five in the national league division series. the marathon game ended around 1:00 a.m. eastern time and the defending world series champions will play the los angeles dodgers for

morgan brennan joins us now with more on that story morgan >> hey, bill, that's right general electric coming under scrutiny after the "wall street journal" reports the use of a second empty business jet on some of former ceo jeff immelt's business trips around the world, a plane used as a spare in case his own had mechanical problems. that did change in 2014. it had been a ge-owned jet, a chase plane. in 2014 that changed when according to sources familiar immelt scaled back the longstanding practice to instead hire locally sourced planes kept on standby in certain areas for certain trips. to this, ge saying, quote, two planes were used on limited occasions for business-critical or security purposes." now based on some conversations on our air and also off, this wouldn't be necessarily unusual to have a local backup plane on standby depending on the circumstances, location and also some discussions with the board. but this does sound pretty sensational. the reason it's gaining traction today and that gets to the bigger dynamic that is under way at ge right now. cost cutting so new ceo

morgan brennan stepping in to give us details on that story. morgan >> reporter: hey, bill, that's right. ge shares are down more than 3.5% right now after leadership changes under new ceo john flanery including the retirement of cfo jeff bornstein. down about 4%. we're at session lows. a number of analysts say that comes as a surprise given the fact flanery initiallyexpresse support for bornstein. since he was elected vice chair in june. they fear this development may signal the upcoming numbers may be worse than expected remember, ge reports earnings next friday but then perhaps more importantly, flannery meets investors to lay out his strategy andup da update the lor term financial targets in november that's down 25% so far this year now. the change overshadowing a very notable one, trian fund's ed garden is taking a seent the board. that was announced this northern trian owned 1% of the stock since 2015 and the move could according to experts who tracked his work on other boards including thrill ones be a positive right now the stock is trad

normal there's a number of steps we're going to improve that significantly in 2018 and beyond >> morgan brennanver the company and joins us this morning with reflections on that interview and the quarter. good morning >> good morning, carl. i think if there were two phrases that seem to be coming out of wall street right now, the first is kitchen sink. the fact this is the kitchen sink, quote, unquote, quarter for ge, given the numbers, the new ceo's flannery first in the season, and cash flow, it's been the focus all year, really for many quarters at this point. in fact, the numbers had been disappointing and the cash flow now for the full year forecast is $7 billion. that's been reduced by about half is really what everybody's focused on, so it is really, you could say, horrible as the new ceo flannery said in this interview with david faber it's stoking all these questions about what happens next, what happens with the dividends he said in the interview we'll hear more about that on november 13th also what happens with all of these different business segments there's been a lot of focus on w

let's get to morgan brennan back at hq. >> let's take a trip abroad, shall we european stocks on trackoday's session at a four-month high. the german dax hitting a fresh all-time intraday high it could close above 13,000 for the first time ever. we're just right there on the edge the index is up 13% so far this year it's handedly outperforming the europe's stocks 600. germany's buyer helping to lift the dax, that's in a $7 billion deal, you can see the move right there for bayer. the transaction will hope to convince regulators to approve its acquisition of monsanto, which you can see is up about 2% here in the u.s. for trading here today mining stocks are also among today's big winners. this is due in part than the stronger than expected chinese import and export data the company is importing more iron ore from other places that is up about 7%. moving on to current sis, the euro pulling back from highs of the day, though it is still stronger against the dollar after spiking on release of this morning's u.s. consumer inflation data hovering around 118 right now. european bond yields sp

morgan brennan joins us now. orning good morning, morgan >>> eps of $1.45 that matched estimates for u.p.s., revenue of $15.98 billion the company raising the low end of 2017 earnings guidance, that's 585 to 610 per share international leading the growth daily export volumes up at 19% freight, the other business that doesn't involve consumers, but the hurricanes had a $50 million negative impact on domestic profit but the big focus today, what will happen with peak holiday season this is likely to again be a record for package volumes we already know u.p.s. plans to hire 95,000 workers but expect to hear much more. analysts want to hear how the big capital investments will help with demand and how holiday surcharges will help to counter costs and drive better profitability. that is an issue that has played out in previous peak seasons other topics, tax reform amazon and u.p.s.'s take on economic growth since it's considered such a bellwether also cfo richard peretz will be on squa"squawk on the street" t morning.

morgan brennan is here with more on both. >> it is spreading throughout the biggest industrial companiesney we'll's latest, home security business as well as automotive business those together is totaled in $7 billion in revenue. this move comes after a five mo months review and mid activists pressure from third point argued by the divest of aerospace. if you take a look at shares of honeywell, they are up 24% this year ge on the other hand, shares are down 25% this year, it is facing similar pressure, activist shareholder triumph fund gaining a seat on the board happening just yesterday following a big management shuffle the pressure on these industrial giants to slim down because of investors believe that some of the parts is greater than the value of the whole that's what is playing out in industrial rigs right now. >> we got meg terrell here onset talking about something similar. they're talking about a spin off? >> from industrial to the whole business sector now. >> it is not the biggest part of pfizer business. pfizer brought in $3.35 million in reserve news. wall street responset

maritime freight you have not been able to trade trucking freight futures i got it out now >> morgan brennans here with more details >> okay, so this could be a game changer for u.s. trucking. $700 billion industry larger for most commodities that have future markets maritime phrase as brian just mentioned, the baltic exchange for a long time. you can lock in for a price now, you can do shipping in the future and enter trans risk. here is how it is going to work. you do not lock in on space on a truck when you trade these futures. you are trading against an index of rates truckers like when rates rise. carrier will say $1.50 on a route. on the flip side for shipper, it could be the opposite. they can go along and hedging against spikes like the ones we are seeing following the recent hurricane. it is almost like and i don't think transit would say this, it is like taking out price insurance. it is what the company is looking to do and if the concept takes off, this could bring stability and transparency to the freight market which in turns could affect the balance sheet of many different bus

. >>> i'm morgan brennan here is your cnbc news update for this hour. russian president, vladimir putin, out with a message for the u.s. if america quits the intermediate range nuclear forces treaty. putin says moscow is ready to develop both nuclear and nonnuclear weapons systems in response to other countries doing the same >>> secretary of state rex tillerson will embark on a week-long trip beginning tomorrow, visiting saudi arabia, qatar, pakistan, india and switzerland. in the mid east, tillerson will discuss the conflict with yemen, iran and the ongoing dispute with qatar >>> the british film institute removed its highest honor from harvey weinstein he has been accused of sexual harassment by dozens of women. weinstein was awarded the fellowship in 2002 for his contribution to british cinema. >>> and jcpenney betting on smart watches this holiday season the retailer announcing it will have brands like samsung and lg beginning october 30th before halloween holidays start earlier and earlier. that's the cnbc news update. >> earlier and earlier morga

. >>> we've got news on ge let's get to morgan brennan with that morgan >> reporter: hey, kelly, that'se at ge. effective today. jeff immelt is retiring as a director and chairman of the general electric board you'll recall that immelt stepped aside ceo. john flanery took over october 1st. immelt going to remain chairman until year's end now we got a press release from the company saying he's stepping aside, flannery is going to take over as chairman according to this release, i immelt's determination that the ceo transition has proceeded smoothly and flannery is ready to succeed him as chairman of the board. also worth noting immelt is retiring as director and chairman of the board at baker hughes, now a ge company lorenzo simonelli, president and ceo of baker h er hughes is goio succeed him. take a look at shares of general electric, they did close the day up slightly higher again, immelt is stepping down earlier than expected as chairman of ge back over to you >> yeah. moving a bit higher on that, too, morgan. thank you. opens him up to do other things here, mike b l, including lead

the company like we own it for the benefit of our owners >> all right let's bring in our own morgan brennan who has been covering the ge story for us. and also with us here at post 9 is citi analyst, andrew, who you have a buy rating on this stock. now, we talked earlier this week, andrew, about whether this would be sort of a kitchen sink kind of earnings report. it looks like one. threw all the bad stuff in there. do you think this is as bad as it gets or is there more to come as he takes a scalpel to this company? >> look, i think this is as bad as it gets but i also think that there is more to come. what i mean by that is, i think this quarter there was pretty big surprise in terms of negative earnings and power. power was worse than we thought. but at the same time, you could see that ge kind of threw in there that cost margins were lower than we thought, there was a lot of sort of recognition that power was actually as bad as, you know, people had feared. and i think, you know, as we look forward, i think people are going to say, okay, 3q was way worse but could get better from here b

morgan brennan has the details. >> reporter: shares dropping today. on a "bloomberg" report that amazon testing a new service stateside that would bring logistics for third party merchants in house, specifically merchants to sell goods for the prime shipping, two-day shipping, but do it from their own warehouses using carriers like u.p. ss. and fedex what does this mean? u.p.s. and fedex would be handling many shipments but amazon would call the shot and presumably be able to negotiate lower rates. in a statement amazon saying it's using the same carrier partners to offer the program that it's used for years incl e including u.p.s., u.s. postal service and fedex. addle "we support al of our customers and expect to expand the relationships in the future. the most telling response to this report from fedex, "there continues to be reporting related to network in the transportation industry that demonstrates a clear misunderstanding of the scale, infrastructure and complexity involved in running a global transportation network." therein lies the dynamic,

lows,g near session morgan up 6/10 of 1%, goldman down 1.8%. joining us now is brennan hawken live from the ubs trading floor. the quality of these beasts today, -- beats today, there were beats. brennan: i thought the results were ok at both firms, better at morgan then it goldman although they were starting at different points. organ starting at a higher point, things had been going well throughout the year so the bar was higher for them. a were able to achieve that. -- they were able to achieve that. on the goldman side, they have and ratherg on ficc substantially. this quarter they looked more in line with the pack, albeit at the back but they are not trailing significantly. the next step will be moving forward with many of the growth initiatives they have weighed out. shery: you mentioned goldman howing on ficc trading but significant is it that although it plunged it plunged less than expected? how positive was that? brennan: when you think about it , year to date trading revenue for the u.s. bracket firms, goldman is a significant outlier. the range of declines a