tv Closing Bell CNBC October 12, 2015 3:00pm-5:01pm EDT
>> i think a lot of people out there will say that they need oil to stay above 50 in order to be a sustained rally here, but -- >> who would have thought that oil was important for the stock market? melissa lee, thank you very much. "fast money," big show tonight. thank you for watching. "closing bell" starts right now. >> hi, and welcome to the "closing bell," everybody, i'm kelly evans here at the new york stock exchange. >> welcome back. >> it's good to be back. >> i'm bill griffeth. happy columbus day, by the way, which means no bond market trading, thinly traded stock market. the action today has been in the oil pits. crude settling down more than 5% on news that opec's oil output rose in september. they are not cutting back because of low prices, they're pumping out here more, we will take you live to the nymex for details on that coming snup and dell buying emc, this huge deal
$67 billion. we will break down why bigger isn't always better and especially in the tech world. >> you look back at some of the other tech merge he wishes in the past, i thought of hue let pack err and come back which didn't work out well, that was $18 million and this one is $67 billion and there is a lot of debt involved in that one. >> number two in the rankings the evongo come deal. >> this one does eclipse a lot of these. all your golf eye fish nad dose out to the gary player invitational, talk the business of golf with pros jason duffner and natalie golbas one of us is excited about this. natalie had the great pleasure in the pro a.m. of playing with dominic chu, i cannot wait to hear her view of dom's game. >> plus the innovation in the
auto sector tnls at pace. a special edition of the spark today with a company that says its product can determine stress and road rage. >> are you feeling stressful? >> see you after the exchange. >> i can't wait for that. let's start with oil. taking a big hit as you saw today. jackie deangelis stepping in from the nymex with that story. >> good afternoon. a 5% slide today. we also saw a thin volume on the nymex trading floor as well. 4710 is where wti finished the day. a lot of traders told me they were not surprised by the action we have seen today. this is the typical pattern that we have seen. we had a 10% move up last week, we kept trying to breach that $50 mark and hold, we weren't necessarily able to do t it's not surprising we got profit taking today. having said that we heard from opec today, it's monthly outlook is now on the market. traders saying this is how we're reading it, of course opec is going to say this, they're going to say everything is fine, u.s. production is going to come down
meaningfully in 2016, they're also going to say that global demand it on the rise and in fact that is exactly what was in the report really sort of substantiating opec's position to not cut production at all which is really what the cartel wants to do. take that with a grain of salt. something said that traders are looking at the fundamentals again because what drove the market last week was technicals and also maybe the market getting a little ahead of itself on geopolitical news as well. this morning the secretary general of opec says that it does think that we're going to see reasonable conditions in the marketplace by the end of the year, you add the kuwaiti oil minister out saying there are no calls within opec to cut production at this point. you've got two competing sides to this story that have been here for the last year and change and the question is who is going to win this game of chicken, guys? back to you. >> yes, indeed. by the way, dom and i had the pleasure of playing golf with jackie this summer. we had a lovely afternoon of golf. jackie, i know you will be very interested to hear what natalie
gulbis has to say about dom's game. >> i want to see pictures of his outfit because we worked on that this summer. >> did you? >> we did. >> he posted a photo already on twitter of himself and natalie. >> i have to take a look at that now. >> jackie, thank you. oil going the other way today but out of the game the emerging market index is up 9% and that's despite growing concerns about the slow down taking place around the world. why are em stocks rallying? let's get out to seema mody for the details. >> the surprising turn around in emerging markets has a lot of traders scratching their heads and questioning whether this rally is just a head fake, especially since the fundamental story hasn't changed. brazil dealing with high inflation, china's growth slowing, morgan stanley says despite an economic backdrop the sell off we've seen in emerging
market stocks may be overdone for now. the index losing 17% in the third quarter, valuation wise some traders say emerging markets look more attractive, trading at 12 times earnings verse uls the s&p 500 which is trading at 18 times earnings. another factor helping emerging market rebound is the lack of china noise, but that changes this week, kelly and bill. investors get a read on whether china is dealing with a deflation problem when is repleases ppi and cpi numbers. bank lending comes out later this week. perhaps the most important data point will be trade data. the export/import numbers will provide evidence on just how much economic activity is falling in china. and the likelihood of the chinese dee valuing the yuan against the daughter which could reignite those fears of a global currency war and wouldn't be seen as a positive for the exporters in the retail and auto space that rely heavily on
china. guys. >> that's a point. seema. thank you very much. in our "closing bell" exchange today jack rogian, david kelly and kenny pomom car. stock market has taken a breather because of columbus y day. we are getting ready for this onslaught of bank earnings and the trade data seema was talk being today tom. >> the earnings and all the other u.s. -- retail sales, ppi, empire state, cpi, all these numbers will come out. it will be an interesting and busy week. all eyes looking at jp morgan tomorrow and all the banks later on. some of the banks and financial weak today. you have to be careful, it is columbus day, market very quiet, volumes are low. don't read too much into it. that being said i'm getting the sense by recent market action
that the market is taking all this in stride and not getting nearly as worked up as they have been every time we talk about a weakening china or concern over china. it's going to be interesting to see how it plays out this week. >> david, reminded every passing day about how weak global export activity is. how unusual it is for global trade to take a dive not because of the u.s. financial crisis but just because of a weak global economy. what does that mean for us back home? >> i think it could be a little bit oversold as an idea here because we have seen much better growth in services around the economy. what we're seeing is two trends here, manufacturing is suffering, exports are suffering, but services are doing better. and the other thing is commodity prices have been pulled down. looking at the chinese numbers, you know, they're still running a big surplus, another big surplus we believe for september. what they're importing is getting cheaper. if you look from that perspective the chinese don't really need to devalue their currency because they are still running a big trade surplus, they are able to buy these
commodities cheap. overall i'm not that worried about the overall global outlook, i like seeing lower oil prices if they're caused by supply issues rather than demand issues, i don't think dee plant is that weak, particularly in the developing world. >> can this market come back in equities and move higher if oil is destined to go lower, do you think? >> i think a lot of these low oil prices have been factored in. what worried people earlier in the year was the velocity of the move. when it moves as quickly as it does it starts to worry people. if it moved 5% a day i think we have to be on the sidelines and watch, but what we saw happen the beginning of this month was a complete change and shift in momentum. i don't know if kenny saw it on his floor but we saw it on this floor. all of the selling pressure stopped and once that happened we saw the natural buyers come back into the market. something is happening, bill. i don't know if it's a dollar story, maybe we've pegged the
dollar way too high, especially for corporate earnings and maybe we will be pleasantly surprised over the course of the next few weeks but something is telling me this earnings something is going to be better than people expect. >> it's that combo of the strong dollar and weak global demand picture. david kelly, just to bring it back to you on that point, what's it going to take over the next couple of years frankly for a lot of these global economies to start to get significant demand coming back into the global picture again? what could possibly be the catalyst now that they are backing away from structural reform? are we left with the hope that the commodity prices magically rebound? >> i think frankly if governments around the world would actually just trust their consumers to spend money and not try to constantly fix things it would actually help. we believe that raising short term interest rates in the united states will actually stimulate economic demand here. i think the global economy will gradually pick up steam. i'm not that worried about low commodity prices i think they do keep consumers overall.
on the earnings story remember that we think that between oil and the dollar, two the points you mentioned those potentially have taken 15 to 20% out of year over year earnings growth which is an enormous hit. the fact we are only down maybe 5% for two quarters and 10% last quarter that says u.s. companies are doing pretty well. we have one more quarter in which earnings will be held down by these factors. i'm pretty optimistic in the earnings outlook particularly if you look six or nine months down the road as opposed to the earnings season over these next few weeks. >> kenny, as jack pointed out we had sort of a turn around ten days ago on the market just go turn around, hit a short term bottom on the dow around 16,000, we are up 1100 points since that time. you pointed out all the things coming out this week. are there levels you are going to watch as the market 1/2 dates gates this busy week this week. >> certainly we are hitting our head, test it had twice in the last couple of weeks on the down
trending 50 day moving average, we have done that twice, on friday we went up and through it so that's going to be an important thing to look a the next resistance levels will be the 100 and 200. on the way down 2000 will be a range where psychologically the market is going to look for support if it comes under any pressure, but i agree with the other guests. i think earnings season is not going to be nearly as difficult or ugly as maybe they had prepared us for. i think there's lots of pleasant surprises. >> thank you, gentlemen. i appreciate your views. jack, kenny, david. we will leave it there. the market drifting hire despite the big move lower in crude. >> the pure play tech told, will it work? a look at dell's big purchase of emc is coming up next. >> plus as we've mentioned natalie gulbis has placed among the top ten golfers in 35 tournament. coming up, we will talk to her about the rise in tv ratings for
women's golf among other things. >> i bond from she has something to do with that. >> i think maybe. you are watching cnbc. we are first in business worldwide. 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.
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in the first 18 to 24 months a significant reduction in the debt, which is going to come from certainly the cash flow of the combined companies, which is quite powerful. some cost synergies but importantly the revenue synergies here are about three times larger than the cost synergies. >> that was dell ceo michael dell this morning on squawk box. conventional wisdom states that bigger is better but we will have to wait and see if that's true for this dell emc deal. >> to gauge how well these big deals work in technology, out to san francisco we go and cnbc's josh lipton. >> bill, big tech deals are no slam dunk, we know there are real risks with any mega mergers, some are hits, some are misses. there was, for example, hp's acquisition of compax in 2001.
at the time the merger was talked about as a deal that could create a powerhouse to take on ibm, sun micro systems and even dell. critics charged that acquisition was ultimately a dud leading to a plunging stock price and thousands of layoffs. other deals have their fans, take a look at facebook's acquisition of what's app for $19 billion. youssef scully says it's too soon to tell whether that has been a success. facebook hasn't done to monetize that deal yet. facebook is generating about $100 million a year but he thinks it will ultimately prove extremely successful because of what's app's potential to disrupt the telecom industry. when it comes to the it hardware space analysts say to expect more mergers, dell and emc, they say this is a mature fragmented market where consolidation does make a lot of sense. back to you.
>> stay with us, if you would, josh. what's interesting about this is it's basically two big companies combining themselves. michael dell mentioned these revenue synergies, does that mean bigger is better? >> well, there are -- listen, so you're talking, you know, those combined companies, they have annual enterprise software services revenue $45 billion that's still smaller than microsoft, ibm, hewlett-packard, it is a new player on the block but not necessarily we don't know yet whether it's the biggest and baddest. still, listen, for 33 and change a lot of analysts say that represents a good take for emc shares, it's about a 25% premium to that recent trading arrangement. there is this go shop period for a couple months, kelly, but the list of suitors is pretty slim and pretty low. even with those suitors most would probably be more interested in the vm ware business not necessarily that legacy storage business, guys. >> i think one element of this
we haven't talked about is being able to operate as a privately held company. they took dell private a couple years ago, he was able to work his -- this deal in privacy with his partners, silver lake partners and i wonder if they are able to take bigger risks they feel without the big eye of wall street and shareholders looking over their shoulder the whole time. >> well, certainly when you heard that conference call this morning and listened to michael dell talk about taking his company private he was very happy with that transition. >> you bet. >> it was all good news, he was very excited, he talked about the growth the company has seen, says they've been taking share i believe he said for 11 straight quarters, talked about how they added i think he said 2000 salespeople in just the last two people. says can't wait to get out there and start selling these new services. a lot of excitement from dell. he made a point of in saying how life is good as a private
company. >> i'm surprised they did the interview this morning. they don't have to. >> and not just the biggest tech deal we have seen but tenth biggest m and a deal we have seen by rich peterson there. thanks, josh. >> heading to the close, 42 minutes left in the trading session here. stock market is operating let's just say on half hour now because of columbus day, there is no bond trading, banks have been closed, the dow is up 39 points but oil has been the big feature today with that 5% decline on the close. still ahead on "closing bell" news that twitter employees are not going to like, layoffs are coming to that social media company. we will look at whether this is a sign of more problems to come for twitter. >> first, 000, forget about smart cars, we are going to talk about smart seats, they monitor your health and stress and this is while you drive to adjust conditions accordingly to make sure you are not sleeping, for example. we will show you exactly how this works right after this break on today's edition of the spark. >> cool.
columbus day means quiet trading for the stock market, we are up 37 points on the dow, it's been anything but for the oil market, down 5% today on word that opec is not pulling back on production even though prices have been lower and bond prices, it is a nonbond trading day. named sports car ferrari is revving up an ipo road show,
literally. >> ferrari finishing up the first lap of that road show in new york city with a lunch at the st. rege vis. ferrari is parked in front of ubs which is running the ipo. ferrari will be valued at up to $10 billion in this sale but it's only selling about 10% of the shares. ferrari telling investors it's really more like a luxury company akin to prada rather than a car company like bmw or porsche. the wait for a new ferrari 488 is longer than the wait for a burken bag, two years for that car there, $250,000. ferrari says it's going to drive earnings with more limited additions cars, as well as ex paneled noog ferrari branded clothing, electronics, watches and even theme parks. it's also going to expand production by 30% to 9,000 cars by 2019 mplts the question is whether ferrari can satisfy
shareholder demands for growth while remain an exclusive brand that's prized by wealthy car collectors and buyers. we will see whether investors will respond to that high price tag both for the cars and shares. >> i had no idea there was such a waiting list for a bir skchlt en bag. >> out to kelly out on broad street. are you stressed out? what's going on? >> i have to say i actually am a little stressed out here. you are not supposed to drive in high heels. that's another issue. i am out here with a little bit of a look into what the car of the future might involve and it has a lot to do with the very seat i'm sitting on. i'm joined outside the new york stock exchange by rob huber who is helping develop this toek nolg that will gauge how stressed out i am while driving. >> yes, there are sensors in this seat and they can detect your heart rate and respiration rate and therefore we can understand if you have a high level of stress or a level of
fatigue. then we create counter measures to help release those conditions. >> so if i'm too stressed out what's it going to do? >> so if you're stressed out we will stipulate your heart rate sin creasing, respiration rate sin creasing. >> okay. >> as you get -- it will give you a therapy to detect -- >> is it like a mint arena therapy? >> it's more of the calming sensation of heat. >> okay. ? if you say stress detected and now you want a therapy what you are feeling is a soothing massage and warming sensation that will calm you down. >> it's actually doing it right now. >> yes. >> you guys had some fun with this in development. what if it thinks i'm falling asleep? safety wise this is a much bigger thing. >> absolutely. this is really important. i'm going to simulate a situation where now it's showing that your heart rate is reducing and respiration rate is reducing and now it's going to energize you with a more vigorous massage and a cooling sensation that will wake you up.
>> so i hit yes. now, that's what the driver does, they acknowledge, yes, begin this treatment. okay. it's sort of a lower back push. >> yes. >> if you will. >> yes. >> i can see this being potentially a lot more aggressive if need be and it's not bottom of the seat as well. >> there are other features. let's say you are at a workout and you have a fit bit or i watch and it has information about how you're feeling, it can dee teblngt that is correct it's a connected system so it's connected to a personal device and it can turn on a ventilation system as you get in to cool you. >> if it knows that i went for a run and got in the car it would cool the car automatically. >> yes. >> in a way this seat isn't just about keeping me alert and dee stressed, it's also about controlling the car's environment around me. >> it's about connectivity and about understanding more about the individual person. >> so, again, with full support for anything that can made the road safer when might we see this come to market and are you working with any major car makers right now? >> yes, we're working with many
car makers, we anticipate this to be on the road in 2018 or '19d. >> why is it going to take that long? >> the technology is ready. it's a matter of getting it aligned with a customer and moving it to a production level. >> are we talking traditional big three or is a name like tesla or even apple which wants to develop the car of the future going to have this kind of technology. >> really any of the car makers, many of them are very interested and we're talking about many different customers. >> last question, cost. how much are we talking about for this kind of feature in a car? >> it would be a very kind of common solution in a premium vehicle initially but then it would migrate into a larger volume segment. >> i want -- my heart rate is quite high for just, you know, doing a television program, i guess. bill, i'm going to have to work on that. for now, rob, thank you so much. >> i noticed your heart rate went up when they gave you a wrap and that does happen here. we need those for the anchor seats. >> i better get better driving mocks for the next
demonstration. >> let's get to a cnbc news update with sue herrera. >> here is what's happening at this hour. russia sum ming britain's defense attache in moscow to explain reports that uk pilots have been authorized to shoot down russian aircraft in the middle east. the british foreign office say those reports are inaccurate. south carolina in full recovery mode from its historic flooding. governor nikki haley says it won't take years for the state to come out of the disaster. she assured residents response teams are working fast to help find haurgs for displaced residents and remove pounds of debris. umpqua community college opening their doors after the shooting tragedy that took the lives of nine people two weeks ago. governor kate brown helping to welcome the students back to their classrooms. new orleans chef paul
prudhomme was laid to rest today. he died on thursday at age 75. a fitting send off to the king of creole. that's the news update. >> i bet they had one heck of a buff faye after the funeral sniem sure they d well deserved, too. >> thank you, sue. we are heading to the close with 30 minutes left in the trading session. the dow is up just 43 points but we've highlight td the big decline in oil prices today. that has been the feature with wti crude down 5%. still ahead former minnesota governor jessie ventura will be entering the lion's den at the new york stock exchange. the one time pro wrestler says big business not elected officials control the government and he will present his case coming up. you're watching cnbc first in business worldwide.
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welcome back. watching markets here into the close, the dow is up 43 now, the s&p just adding a point, nasdaq up 8, oil down sharply on the session, shares of yelp have been sliding. you can see down 9% now. we will keep an eye on it and bring you further details as we get them. bill. >> all right, kelly. we are in the last critical half
hour of the trading day with steve grasso, stuart frankel on the floor of the new york stock exchange. we are not so much focusing on today because of the holiday but we are definitely looking ahead with the bank earnings and all the economic data coming out this week. >> it's going to be big but the hurdle i should say that these guys are, the benchmark that these banks have to jump over it seems it would be lowered so much maybe they will crawl over t a lot of people looking for that is correct maybe the worst is already priced in. i'm not one of those. >> a lot of people have been anticipating that maybe expectations are so low that it would be easy not just for banks but other sectors as well. >> i think that's an easy way out for people to say this market can only go one way and that's up. right now we are in a sell zone, we are at 2016 in the s&p cash, the sell zone is 2000 to 2032, right knack smak in the middle of t i think we will probably head lower, we are at the upper edge of that range marketplace. >> you are still in that space
where you are selling any strength. >> i think this is an opportunity to sell strength. think about what we have had to digest, china, commodities, risk of deflation, what's going on with the fed. nothing really in my mind has changed significantly or substantially to make me think that we can go to a new -- new all time highs. >> got t thanks, steve. >> thanks, bill. >> it's a big week for earnings and to some big banks who will report in the next few days. jp morgan kicks that off, then we have netflix, intel, all coming up. investors look to go see whether corporate america is seeing any hit from china and the emerging markets. according to s&p capital iq expectations for earnings growth for the s&p 500 are down more than 5% on the year, let's get more on what to expect with lindsay bell and patrick williams. welcome to you both. linsey if earnings shrink 5% that would be the third straight quarter of decline. how significant is this stretch? >> it will be the first time for
an earnings decline since the first quarter of 2009. this is similar to what we saw last quarter. in the second quarter expectation were earnings would decline by 4.5%. we ended up being in positive territory. expectations have come down much further so we could potentially end up in in negative territory. >> we ended up in the second quarter and first finishing just positive. the significance would be precisely as you guys dee sooe it, too, we see a drop for the first time since the big recession. >> exactly. the difference as far as the analysts are concerned is the fact that we've not got over 45,000 ratings in the top 6700 stocks are analyzed by the crowd on the site. >> what's the goal? so if the official is down 5% on the year what are you guys seeing? >> we don't measure the whole market like that, we really look at individual stocks. >> for example, netflix, what are the expectations and what do you think is going to happen here? >> what we think is pretty
amazing is what the analysts and crowd think on netflix because it's such a popular stock, the actual predictions of both are exactly the same, they are within one cent of one another and essentially saying it's a hold over the next six months. we think that's because netflix was since i believe enough only to put a dollar on the price and they are going to expand around the world. >> where is netflix? consumer discretionary. >> consumer dis depression naer and that is expected to have the best growth. double digits, 11%. the only sector that's going to be double digit growth and the s&p 500 consumer discretionary index is up 7% this year. expectations are high for this group going in. we have gotten early results from nike, darden, leonard, carmax, carnival, they have all beaten by decent amounts and most of them have at least reiterated but the majority of those stocks have gone down on those announcements because
everyone is expecting expectation toss rise. >> it's interesting to contrast that with consumer staples. i don't know if you have a few examples of companies that are seeing bigger more steady international businesses hit by the slow down in global growth. >> what we're seeing is the popular stocks, the ones that are the major it stocks and tesla, they are attracting a lot of the crowd. >> even though it is expected to shrink on the year. according to this s&p again, supposed to be down a little less than 1%. >> where we see it is kind of what the crowd is thinking about how they're going to look to actually purchase that as consumers of where they are predicting for it to go which is more of a consumer thought process than r rather than analyst. >> part of that decline for technology for this quarter has to do with apple. that's going to have a significant impact on them and compared to a year ago comparisons which are quite substantial. >> everybody is talking about
banks what, about jp morgan. >> the crowd is bullish on jpmorgan but not as bullish as the analysts r they are about 5% ahead of where the crowd is and we really think that that's because of the fact that most of our audience doesn't really associate with the big banks anymore, they are looking for towards -- >> doesn't associate with them? >> they want to be able to make predictions, they want to be able to buy stocks that they enjoy, it's a larger audience, the millennial audience really and so i think that they really kind of -- you know, they kind of blame the banks still for 2008 for the crash and they want to be involved in watching stocks and participating in stocks that they feel at home with. >> one of your colleagues came through here recently and say the biotechs have been beaten down so much, they've gone way below what the expectations for their earnings r i'm not going to ask you to disagree with your
colleague. >> i wouldn't do that. >> what do you guys think about one group that got clobbered in that third quarter. >> none of the fundamentals have changed outside of, yes, there is that hillary clinton tweeting and the government could come in against the pricing power, but this group still has the best growth in the s&p 500 biotech sector, so with the stocks beaten down so much, valuations so low, if you're looking for grow -- >> healthcare overall, you guys say it could be up 7%. these are the benchmarks people have to meet as these numbers come in. thank you both so much. >> about 20 minutes to go into the close. again, stocks are drifting higher which is the only game in town today except for oil and that one moved sharply to the down side bucking the month to date trend but we're shrugging it off. >> donald trump promises if he is elected president of the united states he will not cut entitlement entitlements, coming up, we will look at the entitlement positions much each of the
there's a look at shares of chipotle up 2.3 today after hiring kurt garner from starbucks. he -- at starbucks, now he is at chipotle, stock responding positively as a result. every year for more than a decade celebrities, businesspeople and golf pros get together for the gary player invitational tournament to raise money to go towards underprivileged children's education. >> this year's gary player invitational was played at glen arbor golf club north of new york city. we are joined by two of the most popular professionals on their respective tours, jason duffner and natalie gulbis. we are thrilled to have you guys. thanks for joining us. by the way, natalie, i want to apologize ahead of time for my golf partner dominic chu that you got to play with today. i know he is long off the tee but it's anybody's guess where the ball goes after that. >> he actually hit it pretty
great today. i think you guys would be quite proud of him and he does hit it long but he was a lot of fun to play with and very entertaining and you could tell he loves golf. he is pretty excited to be out on the golf course today. >> very entertaining is a good way of putting that. jason, i'm hard pressed to think of other sports who do as much more charity as professional golf. >> yeah, definitely. that's one of the biggest things out on the pga tour and lpga tour is the involvement with charity and giving back. for somebody like mr. player to take the time to use his platform in golf to not only raise money but create awareness and get people involved in the charity game is just awesome and i'm happy to be part of it today here. >> natalie, we read that ratings for women's golf are on the up. what can you say bh the kind of attention that you're grabbing from viewers, maybe bringing more people to the game?
how do you take that and leverage that and to create longer fans of the sport? >> well, we have a great ambassador in gary player. today we are here at his event and he is a big spokesperson for women's golf and inviting lpga players and women players to be part of this event and as part of his mission to not only raise money through the game of golf for different charities but also bringing more attention to the game. i have been fortunate to be able to be part of that and see a lot of the success in my last 15 years on the lpga. every year it gets better and better and it's you guys supporting us today and people like gary player who is out there and an advocator for women's sports. >> we are at an interesting time for professional golf. both of the tours, natalie, you are still in the past anica period and even post some of the other great players who have been number one there, jason this is the post tiger era, but yet both of the u.s. teams, the
women won the sole hiem cup in ex i will rating fashion and yesterday it was the president's cup in south korea. jason, you have a lot of young players coming up on both tours hand that helps golf a lot right now, right? >> oh, yeah. i don't think the game of golf has ever been in as good a spot as it is right now. you've got a lot of young exciting players, people that are kind of graph tagt toward these young guys like jordan speets and you are not seeing the same guys winning every week, you're seeing three, four, five different guys through a couple month stretch that are playing great golf and throw in some older guys like me here and there sneaking around. tinning keeps it competitive, keeps it fresh and brings more excitement to the game, i think. >> on our tour or number one player is a teenager. >> what's that, natalie? >> our number one -- on our tour
our number one player is a teenager so we definitely have a lot of young talent, too. >> liddia cohen and others are doing well. >> i was looking at leis of deals, jason, you have even managed to sign vineyard vines up to the golf game. talk about what these endorsements, is this just, you know, bringing more people into the game, is it big enough money to keep you going as you eye whatever your goals are now recovering from your injuries and taking you to that next level here? >> yeah, vineyard vines has been a great partner, they have been in the clothing business for a while, they approached me a couple years ago wanting to get into the golf side of t i think it's a great fit, you know. their brand is so recognizable and so strong across the united states i feel like a lot of the people that wear their stuff already play golf, so it's been a great fit. they've been a great partner. you know, i couldn't be more happy being associated with a company like that. >> natalie, gary player was the
very first professional golfer anywhere who popularized being fit and at his age he is still very, very fit and you have carried on that tradition more than any other golfer i think on the lpga. jason is famous for what we will say politely and duffnering which is a form of planking. fitness is big in golf these days. >> it is huge in golf. gary player has been talk being that all day today. he definitely was one of the first to come out and is very proud of the influence he has had on golf. he is 80 years old, about to turn 80 and still in incredible shape and still talk about this morning doing thousands of push-ups and sit-ups every single day and talked about how fitness really helped him throughout his career and to have a long career. i think as you look at all the tours fitness is a big part of the tour and jason is more fit than the last time i saw him so i know he has definitely been
working out and it is a big part. this is my 15th year on tour and i think fitness has really helped with the i don't think jeft of my career not only to prevent injury but just have a long career and we do have gary player to thank for being one of those first influencers. >> setting that tone, that's for sure. guys, both of you, a thrill to have you, thank you for joining us today. best of luck in the new seasons coming up for your tours. >> thank you. >> appreciate it. >> i was going to say as much as it is about staying in shape these days, so mental the game of golf. i don't know how you guys do it. >> this is where the game is played, that's for sure. ten minutes to go here. dow up 38 points on this columbus day. credit markets are closed but we're seeing green across the board although slightly across the s&p 500 and the nasdaq up about 5. >> wasn't exactly a buyers market in columbus day but jeremy hill has a retail pick for the holiday season.
you are a good example of money managers who are having to -- rather than looking at the big picture in the sectors out there you're picking stocks individually right now, that's how you feel uks make the most money right now, right? >> well, you know, we spent a lot of time over the last couple days debating whether spoke has been supplanted by value, one of our all time favorite growth at a reasonable price stocks is target, the retailer, we think brian cornell and his join are doing a wonderful job. they've distinguished from walmart, it's a fashion forward kind of company and those are the types of stocks we think you can hold for quite a long time. >> what kind of risk is there this earnings season where the results are desperate but it's all reg testify. >> earnings season is a bit of a strange beast this time around because not only is it just looking at u.s. companies of course it's looking at interest rate policy risk, systemic risks and the opposite of fearful in
financial markets is less bad and that's exactly where we are today. the chinese implemented a small measure to help their auto loan sector, glencore commodities stopped selling off, in addition everybody is slightly more convinced that good is bad, bad is good now so we're back in that regime where it's going to eventually focus right back mirror image to earnings. >> that's exactly what i asked. >> exactly. >> can you name any -- is there a sector, is there -- >> right. well, for us the sector that we think probably the has the most potential right now is technology. >> all right. thank you very much. >> thanks for joining us. we're following our colleague it's not your imagination joe can you remember anyone among other right behind us there is the president of cnbc that's mark hoffman and becky quick, they get ready to ring the closing bell today, our colleagues are celebrating the 20th anniversary of squawk box and the morning team is here
joining us in the afternoon. >> very cool. worlds are colliding. we actually will have more coming with all of this as they get ready to get up there on the platform. >> bob pisani is also back. >> after the bell jessie ventura has done it all. he's going to visit post 9 later. you're watching consumer. first in business worldwide. important than your health. or the freedom to choose what doctor you want to see. so if you have medicare parts a and b, consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, these let you choose any doctor who accepts medicare patients. you're not stuck in a network, because there aren't any. plus, these plans help cover some of the part b
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about two and a half minutes left in the trading session here. bond market closed today for columbus day, so we had kind of a thinly traded day for the stock market and the dow itself had a very narrow trading range today of about 75 points, the narrow west range we have seen since late july. here we are up 37 points and you can see we were up about 40 a couple times today. what did have movement was the price of oil on word that opec is not cutting back on production. in fact, it is maintaining it and increase tg in some cases and as a result wti was down -- it was down 5% on the settlement at 2:30 eastern time, came back a little in the lick tronk session, here it is down 4.4% at $47.43. but bob pisani is back. we're black you're back to get ready for earnings this week. >> and we will get intel, too. i think what's important about this earnings season is we need
to see a real pop in not only earnings but revenue. we are down about 5%, that's the projection for the third quarter on revenues and on earnings. normally we see a move up right now as we go into it, it's not happening and i think that's a little bit disconcerting. it will take a lot to get to flat, so revenue still not there, so we have a combination of no real revenue growth and we have 10.5% or so on some of the numbers that we're dealing with in terms of the margins, that's topping out as well. you have topping out on margins and slightly down revenue growth. going to be a rough situation. i do want to point out today when energy stocks were down they were down big in the afternoon. i don't know if you can put up the expiration or production stocks but names like murphy, cor, all those stocks that were up 5 or 6% last week were down 5% today as oil went down a little bit. my point is we had a nice run up, but then they basically took
profits today. they didn't particularly believe in the fundamentals of this rally. that's the point about energy that's been heart breaking this year. >> our colleagues on squawk box celebrating their 20th anniversary of its debut back on this date in 19956789 congratulations, guys. very proud of you for that. second hour of the "closing bell" with kelly evans. i will see you tomorrow. thank you, bill. we will come to the krsh. our colleagues there from squawk box celebrating 20 years, becky quick in the middle, andrew ross sork kin but everybody who makes that show half. mark whoever man, the chair of cnbc, matt quail, rob conqino, everybody who helps get that show on the air every day. we will have much more with them in just a moment. finishing the day on wall street a positive session with the dow
at 46 points, the s&p looking to add about 2.5, its nasdaq about 5. remember, the markets broadly -- credit markets were closed today for that columbus day holiday. oil was open. we will talk more about the tough session that it had in just a moment with today's panel who is joining me now, catherine ram pell from the washington pose and sara eisen and we do have guy adami. welcome, everybody. >> welcome. >> hi, kel. i didn't know you were welcoming me. welcome back. it's been like months. >> it is good to be back. let's start with oil because this was the trade that got everybody excited, we flip at calendar to october, oil is back, markets are different. what happens how? >> that's the story. my sense is the oil volatility index, the ovx that has been elevated and has remained elevated. even when you saw crude oil rally leading me to believe that
there will be another leg down. today you saw the ovx up pretty significantly. i do think there is another leg down in crude. obviously the news out of the saudis was not helpful and, again, clearly it's a supply issue. i think it's as well a demand issue, steve liesman might be coming on in a little while. that's why i think interest rates continue to grind my yer. the story of the day devoid of anything is the crude oil. >> supply, demand but also the u.s. dollar. >> yes, had a little strengthening going the opposite way where we had been. it was a quiet day and narrow range, also columbus day so the bond market was closed, but if you put it in context october has still been a strong month. it was tabulating how strong it's been since september which was a brutal month for the equity market. right now the dow, s&p and nasdaq are all having their best month since back in february. the s&p would only have to rise i think less than half a percent
to make it its best month of the year. so the question from here is you could look at this an optimist would say we held the gains for the last week and held the gains since october. there is a lot of event risk going into this week, we have corporate evenings from big banks, ge and netflix, those are going to be the tests to see whether the rally can continue as we see it. >> against that backdrop it's interesting to back out and say, wait a minute, so you are telling me people are buying emerging markets, they're buying some of these commodities right now even as we are still feeling just how severe this correction in their economy really is. >> it's a strange turn around, right, that a month ago, a couple months ago there was a lot of panic about china, panic about brazil, a lot of general freaking out about the risks coming from outside of the united states and today for whatever reason some of those risks in the minds of investors seemed to be subsided. >> as some have said seeing to go bottom fishing. picking up for a second on the
impact the fed is going to have amid all of this. the econ survey revealing most americans don't know enough about the fed or treasury to inform an opinion on those who are running it. >> janet and jack went up the hill and when they got to the top nobody had any idea who they were. take a look. we asked our 800 respondents all across the country average americans what you think about janet yellen and jack lew. take a look at this data. janet who? some 64% don't know enough to answer. of those who do she is about split, 18, 18% approve, 18 disapprove, compare that to ben bernanke, 20 points less of the unsure there and sort of a net disapproval rating there for ben bernanke. same thing when we go to jack lew or jack who in this case. 73% are not sure enough to answer the question. he has a slight negative rating compared to tim geitner.
bernanke and geitner were both in the public eye during the financial price is and i'm not sure that janet and jack dislike it this way, i think they prefer to be doing their jobs rather than in the public eye as far as i know. but when you ask about the effect of what the fed has done, take a look here. we asked about the effect of low interest rates. 47% said as far as they're concerned financially no affect at all. of those who say there has been an affect 30% say its helped 12rks% say it has hurt. what about the effect faeb on the u.s. economy of raising rates, something that's high on the mind of at least us at cnbc. 42% believe it would hurt, 22% say it would help. on the issue of approval or disapproval of the fed, fed doing better now than during the time of ben bernanke but they don't know who lew is and janet yellen either, kelly. >> maybe it was unusual to know so prominently bernanke and geitner, those kind of figures.
>> right. >> still, troubling perhaps. we will yet more, steve n just a moment. guy, i was going to ask you that last chart steve showed when he asked about the effect of a rate hike, 42% of people said it would hurt as far as they're concerned. it's a higher proportion than i would have thought. what do you make of it? >> if you think about it makes perfect sense. people think with a low interest rate environment their payments are less f rates continue to go lower they will refinance maybe once again. it's somewhat intuitive to me that people would say raising rates would hurt them. i will push back and say one thing, i mean, this survey is more commentary on the people in the united states. i bet you if you asked those same people who joe biden was you will get about the same responses. so me -- >> oh, come on. people know the president. >> well -- >> surely. >> i would love to believe you. i would say that it's within the realm of margin of error that they would not know who he is as well but that's just me.
>> i think it would be interesting to go out and poll wall street and their approval rating of the fed. it's been a while since i've heard so much fed criticism heat up, they missed their opportunity to raise interest rates, they're fueling bubbles, they're getting too many could you say from the markets and not responding to the real economy, they have several other mandates, there are so many fed criticiskricriticisms i wonder approval rating would be. >> i think pretty lousy. if you polled people that do it for a living on a day to day basis i think they would say disapprove. a hardy disapprove. it's like this, you want -- this is going to sound like a crazy analogy but i will give you one, hopefully you can figure this out. if you are a fan of a football team, you want your team to win fair and square, you don't want there to be seven pass interference calls against you by the officials that continue to give you field position and in a lot of people's eyes that's exactly what's going on with the fed. you want to win and lose on your merit not because you have somebody backing you up.
>> i was just wondering, guy, to what extent when your team loses and play lousy do you blame the referees? i wonder the extent to which sara you are hearing all this criticism right now, you know, the fed is a pretty easy whipping boy on this kind of stuff. the market went down, it went down hard and people it seems like from both sides are blaming the fed. as far as i can tell what they did -- and we had a guy this morning, a former fed guy argue that commodities are declining because we are at 0 interest rates. i thought that was one of the most curious arguments i have ever heard out there. >> that's why the proportion of people long interest rate hikes would hurt him surprise me because there's so much criticism of the fed at present but there still seems to be an acknowledgment higher rates wouldn't necessarily an positive. >> nobody wants the punch bowl to be taken away. look, i think the fed has front themselves to be kind of the only grown-ups in the room when it comes to any sort of economic policy on the fiscal side,
congress has completely abdicated its responsibilities to basically do anything and potentially will introduce lots more uncertainty into the market, into the economy in the coming weeks and months ahead. the fed for all of their criticism at least they are trying to be careful, they are trying to be thoughtful and they are actually responding to the data rather than just ignoring it. >> did you have partisan questions as well? >> we did. what's interesting is when it comes to handling of the economy the fed rates higher than democrats in congress and much higher than republicans in congress. about even with where the president stands although more people are unsure to answer that federal reserve question. they got about a 45% approval rating which is up 2 points higher than when we asked five years achlgt they are doing at least better than their staunchest critics in congress. >> just to flip over for a second because we are approaching major earnings which will be a real impact for the market even if as our best last
hour told us no one our age cares about the banks anymore or wants to put earnings estimates on them. how much are you looking at jpmorgan to set the loan? >> i think they will set a huge tone. out of all the one that is going to set the tone will be goldman sachs because i think the environment we've been over the last quarter for them has been one of the best trading environments we've seen in quite some time. the last quarter they reported was outstanding. i think this quarter could be better. although jpmorgan will set the tone in terms of when they report, i think goldman sachs will show people how well they actually do things this quarter and in going forward. gs for me. >> and there is a big goal, another one of these crowd source earnings shops has a much higher number for goldman sachs than the street which has pulled back its numbers by 25% just the last couple weeks on goldman's results. you have to look to the markets i guess. >> we will find out. i will come back on after the report and if i'm wrong i'll say it, if i'm right we will talk about t i think you will see a ridiculous quarter out of
goldman sachs. i can't say to you the stock will act in kind although given the selloff over the last few weeks in gs is should bounce. >> all right. we will leave it right there. steve, we have to go unless you can do it in 140 marks cha snoorks we will be talking to dan turullo about monetary policy, economic policy and bank regulation in which he is an expert. >> it's very noteworthy mention, steve. thank you very much. steve liesman. we do have breaking news to get to. sue herrera, what can you tell us? >> we can tell you the fortress investment group plans to close down its macro hedge fund run by michael novagrats. in addition to that the firm is expected to inform investors about the come in coming days. the macro hedge fund declined better than 17% through september 1259. that's according to some filings. once again fortress is going to close down its macro hedge fund.
back to you snief three letters and it's just wow. sue, thank you. guy, another three letters wlarks do you think? >> i will give you three letters, oil. this might be the first but probably not the last and i have no idea what fortress had in terms of trading. the thing that sticks out to me is the move in energy. a lot of people probably trying to pick bottoms are getting long on the way down, that coupled with maybe some currency moves again. mic novagrats is one of the brightest guys out there, an ex goldman guy, he will reemerge at some point. what this shows you is how tough the environment is for everybody. >> this is just the macro fund which is a small by high profile fees. mike novagrats being probably the most high profile piece of fortress. the macro fund this is not a new strug snool no. they've been caught against a lot of these. interesting mike novagrats who frayed r made his name is
trading currencies with emerging markets. these macro funds have a hard time timing t they did well on the euro call last year when the euro collapsed gensz the u.s. dollar, it's been a little choppier the last few months or so. >> for hedge funds the last month or two we keep seeing the numbers come in and they do not look pretty. fortress macro fund shutting down, mike novagrats leaving. >> thank you, guy, thank you and be sure to stick around to catch more of guy with the "fast money" crew. oil, the commodity king will reveal which run is coming to an end. twitter shares hit hard on news of big layoffs coming. twitter no longer seen as a growth story. top analyst bob peck will join us on that coming up. first, consumer's very own squawk box celebrating 20 successful years, beck yeerks joe and andrew will join me after just ringing that closing bell today.
box celebrating 20 years on air. they dpoent forget to have a little fun. >> ♪ ♪ >> i will never wear this tie again. >> look at that. look at this thing. >> he said he had to make a phone call. i don't know what it's about. >> squawk ard moment has been brought to you by -- >> how embarrass snug look good. >> thank you. >> you need to have -- oh, my god. >> we welcome andrew sorkin, becky quick and joe kerr anyone. >> it's great to be here. we know each other from afar, we
get to see each other behind the sequence but it's great to be here. >> congratulations. >> is this post 9? >> yes. >> i have never been on post 9 before. >> what do you mean? >> this is the new york stock exchange. >> yeah. >> because you were up on the platform. >> i think so. >> you guys now have the new studio midtown. it's going to be a big deal on thursday, thursday morning 20 years. >> throw back thursday. >> outside? >> yeah. >> people, crowds. >> we have jim cramer coming, we have carl coming and we have faber coming. >> and the lineup between now and then. tomorrow morning you are doing a big media focus. >> that's right. >> what are you going to hear? >> we have barry diller. >> you are interviewing us. >> that's what i'm supposed to do. >> come on. >> i might start sweating. >> you are going to start throwing hard balls in a second. >> this is why we tune in.
how long has it been, andrew, for you now? >> for me four and a half years. >> becky? >> 11 years. >> wow. >> wow. >> joe. >> i was in high school -- >> he is original. >> squawk box 20, but i think 24 at the network, yeah. >> were you in swadling. >> i was watching. the whole time. no, i mean, so 20 years you guys have a big celebration tomorrow as well, but the whole week it's basically just reflecting on, hey, look what you've done. >> we talk about being up there. >> what was it like? >> it was exciting. we thought we would be sort of jaded, didn't we? sort of think it wouldn't -- didn't you get sort of a buzz? >> yes. >> capitalist i can bucket list, my socialist bucket list, something. >> i saw some contempt. >> and we have a big debate coming up in a couple of weeks. >> we will do the preshow and i
told you there are going to be mostly republicans there, kelly, is that okay? >> that's what happens at the gop debate. are you okay with that? >> i don't know if i can ask any hard questions. >> sue, you guys just range the closing bell. for you first time? for everybody. >>? >> first time for everybody. >> have you done it? >> no. come on. >> she's here every day, she sees it gn g. on. >> you have 10 years, 15, 20, that's what it takes to get up there. >> did you see that gavel? >> i've heard when they do it wrong. >> art cashin just came up to us the floor trader who is on our air a lot, said one time somebody used the gavel and half of it fell down and hit his son on the head and knocked him out. >> i could have. >> you did it well. >> kelly, one thing that i was thinking about coming here, how long 20 years really is. we played the song from 20 years ago and it's amazing how long ago that is, but i realize that we used to call people on pagers and you would put in your
number, they'd call back and you would have to have a pay phone to get the call back, there was no such thing as internet. >> if somebody doesn't show up for the show they are just not there. >> the only people i knew with pagers were drug dealers. >> the fed would say something and people would run out towards the bank of pay phones to try to be the first person -- >> what about corporate earnings? did they fax them? >> yeah. at the journal back then they were faxing things. i remember getting my first e-mail. >> nothing was digital. there was a kiem when scripts -- now i feel like i walked to schooling both ways uphill. there were carbon copy scripts you had to pull out and feed it into an overhead projecting for a teleprompter >> 20 more years? >> definitely. if you get rid of a if you bad genes we might live to 140 and yet eat bacon. >> we've got to go. most favorite moment, joe, 206 years. >> people always ask me that. you know, there were moments
that were full of sort of drama and poignant moments, i will never forget september 11th but then there was richard simmons was so funny, we had fab joe in, we have had shatner where i did an imitation of jim carrie imitating him. we have been sports guys. business guys are great, warren buffet, steve jobs walked off the set didn't like the questions. >> life? >> live. 20 years there is a lot that has happened. >> i was going to ask becky same thing. favorite moment. >> it's hard to pick a favorite moment. what i love best every day is where we are all getting ready and about to go on, those last few minutes before show time. >> is that where the dancing comes from. >> we haven't done a lot of dancing. >> i don't think i saw you dancing, andrew. >> i wasn't dancing. >> you have to loosen up. >> i know. favorite moment was the first day and you said to me, are you going to wear your coat or not? and you forced me to take the
coat off and then i felt like a real member of the squawk team. >> we almost took them off here but we couldn't because there is a requirement. >> there is a strict dress code. >> no requirement for pants i was told. >> we will be tuning in tomorrow morning. guys, huge, huge congratulations. >> thank you into thank you for coming on this afternoon. andrew sorkin, becky quinn, joe kornin. you can all be part of the squawk box celebration, from 7:00 to 8:00 a.m. eastern. for tickets and info you can send an e-mail to "squawk box"/tbt @cnbc.com. >> jack dorsey making his first big move as ceo of twitter and sources say there will be companywide layoffs as soon as tomorrow. is twitter no longer a growth company in stock. that's next. entitlements like social security and medicare always divisive between dems and republicans but now those are
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1.87 a share, also below street expectations. also lowering four year 2015 comparable eps forecast lowering that to 6.17 to 6.29 a share from 6.45 to 6.55, again, below street expectations. company also coming out with q4 eps forecast and basically saying that they are revising these numbers lower thanks to fleet management solutions some weakness there that there is a temporary execution issue related to record fleet growth that the company expects to resolve in the fourth quarter. also less rebust demand conditions in used vehicle sales. again, ryder revising lower its current quarter guidance as well as it's full year guidance, shares are down about 6% after hours. >> thank you, morgan. some tough times for ryder there. also twitter stock getting hit hard on the talks that the company will make major job cuts, investors worried the r it
won't get to the roof of problems. kurt wagner senior he had sore social media. bob, let me start with you because the share reaction is real interesting here. sometimes companies lay off, people think earnings will be better, shares rally. why do you think here they went the other way? >> first of all, today you had a pull back in some of the mid cap names, yelp, pandora, zillow, twitter was caught up in there. you have concerns on whether or not this is a high grower. we think it's obvious, top line growing 40% plus, bottom line growing 50% plus, we think the layoffs could be a good thing. twitter monetizes at a fifth or so where facebook and their competitors monetize, they monetized at three times the cost for its employees when you look at stock based compensation and shows into new ceo is getting engaged. now here he is making proactive moves right siding the costs
>> kurt, what are your sources telling you about what and where these layoffs are really getting to when it comes to twitter here? where is the ax falling? >> i think that it's going to be falling across the entire company from what we heard at the end of last week is that this will be companywide, no specific department is necessarily going to be hit harder than others. i will point out twitter is mostly engineers, about half the company are engineers and so there is this feeling that from an engineering standpoint they have been too big for some time now, so i think that there are going to be a lot of engineers leaving the company. i think the point here is to trim things down and become more efficient and jack dorsey had talked about that in the past that he just thinks that they need to go quicker. >> i can't necessarily think of another recent high flying company that has a lot of expensive employees or whatever that had done this to quickly. >> what is especially bizarre is that they recently announced a
bunch of new features, implemented some of them, announced other ones, it seems like there is more work to be done rather than less work to be done. the timing is a bit odd. there are plenty of challenges but ultimately what it comes down to is growing users. bob, i bond what are kind of time frame jack dorsey has, how long investors are going to give him to show results. are we going to start to see it on a quarter basis, like job cuts or is this going to be a longer turn around that wall street wants to see? >> yeah, i don't think investors are looking much from q3 obviously, q4 what whe want to see are green shoots that the new products are resonating, moments are starting to pick up and really what investors are looking at is '16, can you get that mau number, user number growing again. part of this is the monetization side of things where you are improves your roi, increase targeting, rolling out new ad products, if those two happen
together in harmony you can reaccelerate the top line growth. >> at which timer is a product be something that helps to have more people thrown at it as opposed to less? >> well, i think when you compare the number of people that twitter has working on its product to others in the industry, say, facebook, the number of engineers per user is pretty high. the issue is people just start getting sidetracked from the ultimate goal, there's no real focus. that's what jack has been talking about here. i don't think they are going to -- by cutting people have an issue keeping the product up and running, it's just a matter of keeping things a little more focussed. >> were you surprised to see layoffs? i know it's a weird question to request but i'm wondering because it does seem unusual. >> i was not surprised. i've been having conversations with people close to twitter for some time now that have been saying the company feels too big. so the fact that it's happening this quickly, that jack since he was named the formal ceo just a week ago, that is a little
surprising, but the fact that they want to come in and trim things down, no that doesn't surprise me at all. >> all right. thank you for joining us. kurt wagner reporting on twitser ace layoffs and bob peck with grounding of where to go with the stock from here. >> time for a cnbc news update. >> here is what's happening. some scary moments for passengers aboard a jetblue flight from syracuse to new york city. flight 115 had to turn around after smoke was reported in the cabin. more than 100 people were on board. donald trump was challenged by question nurse at the bipartisan conference in new hampshire which is dedicated to compromise and problem-solving spring. after one questioner called him out for his divisive rhetoric trump responded by saying he is going to be who he is. >> a ceremony held today to commemorate the 15th an verse of the attack on the uss coal. dozens of family and friends as well as surviving sailors gathered at the uss coal
memorial in norfolk, virginia, the ship's home port. 17 sailers were killed in that attack. on a much lighter note an oregon farmer, take a look at that, won the annual 42nd half-moon weigh off today. steve's pumpkin weighing in as 1,969 pounds which gave him the first place size of $11,000. but the total was lighter than in previous years because of the western drought. the world's record is 2,323 pounds set last year in germany. there is a canned pumpkin shortage so this guy could make a lot of money with that. that's the cnbc news update this hour although he did win 11,000 bucks. >> there was an article in the journal today about some of these california business he is like a barber shop that haven't cut back enough on their water usage. a giant pumpkin. really? >> i think there will be that controversy certainly and the farming community out in california uses the majority of
the water. so you are right. you can get a lot of pumpkin lattes out of that. >> you could. the next gop debate is right here on cnbc. coming up, should we reform entitlements like jeb bush and marco rubio advocate or leave reform programs along like trump and huckabee are suggesting. to ? 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. [ 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,
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here is a look at how we finished the day, dow up 47 points, s&p only added 2.5. and that was despite a big drop in crude, terrible session that was down almost 5%. we saw that play out with big declines across dow components like chevron. we are less than three weeks away from the next republican presidential debate. one hot button economic issue is entitlement reform. marco rubio and chris christie support reform, but we have donald trump, mike huckabee coming out against t whose side are you on? joining us is jimmy petsacukaas and wes moss. welcome to you both.
jimmy, it's interesting, i guess, more interesting to people who are still trying to do something about entitlement reform which everybody said has been a third rail in politics. >> you want to do something about it and people want to do something about it because they just look at the math, what we're going to spend on social security and medicare is going to go up as a share of gdp by 50%. what do you do about that. >> either raise taxes to pay for it or try to slow that i know crease in spending. those are your two options. fortunately what donald trump has proposed is the worst of all worlds, to do nothing about that spending increase and massively cut taxes by $10 trillion over a decade. that's the worst of all worlds and that will lead i think to a fiscal irresponsibility. >> wes, he is number one in the polls. is that because people like what he's telling them? >> well, kelly, there is a -- he is number one in the holes for a lot of reasons rather than trying to cut the system donald
trump is proposing to fix the system and he will fix the system. there are millions of americans that have been promised social security and have been paying in for years answered wants to just keep those promises, number one. number two, there is so much waist in the system. we spend over a half a billion dollars a month through fraud for social security disability and what a lot of these candidates are doing is they're trying to -- a, they're cutting and, b, they're tinkering with the system. donald trump wants to -- he wants to fix the system and he wants to grow his way out of the issue. >> okay. grow his way out. >> you can't grow your way out. you can't grow your way out of these entitlement commitments. it is flatly wrong to say people have paid in what they are going to get out. on medicare it is absolutely not true. the amount that medicare recipients are going to get out is multiple times what they have paid into the system. there is no way you can grow your way out of this. >> a 30-year-old couple --
>> jimmy, go ahead. >> a 30-year-old couple today is going to pay in 600 grand and they are going to get back 2 million. that math doesn't work. and the tax foundation which look at donald trump's economic plan found it would give you more growth but also lose $10 trillion. you can't do both things. you can't lose trillions of dollars and say i'm not going to do anything about the system, they paid n the status quo will not work. >> you know what trump could do if he wanted to make the system more whole, you know, co let in lots of working age immigrants, that's the way that you pay more into the system to support the huge number of people who are going to get paid out of it and yet -- >> prt of that. >> that option is pretty much off the table. >> what trump is talk being is eliminating illegal immigration which is a tremendous drag on the system. he is going to support each -- >> that is not true. >> -- which is a kind of people that come to this country and
contribute to the system that will help to grow the base. immigration reform is something that is important to broadening the base of people that pay into social security hence helping to fix the system. >> how are you going to broaden the base which reducing the number of working age people? >> well, it's very simple. if you're reducing a drag on the system but you are allowing legal immigrants that are productive in society in then you're absolutely growing the system and that's a huge part of what has to happen here. >> i hear you, wes. jimmy, the problem, though, is this isn't -- when is push going to come to shove? while we can point to the math and appreciate people trying to do something about this, are they really going to do it this time around? >> i think -- listen, you absolutely have to. you have a simple choice. we're going to have -- we are trending $5 trillion more on entitlement spending over the next 25 years. what do you do about that? you have to do something because
the deficit at that point will be like trillions of dollars a year, you have to do something, either cut that or you have to raise taxes and trump doesn't want to do either of those things. >> hang on, wes. jimmy, before we go who do you think has the more substantive proposal here, is it krissy, rubio that we have heard from wanting reform on this front? >> what they have in common they want to slow that growth rate and have benefits be less jen russ for wealthy americans. i think that general structure works. >> all right. we will leave it there. rowdy this afternoon. understandable so. appreciate you both being here. thank you very much. in the next gop debate will take place right here, that was just a snapshot of it. here at cnbc october 28. coverage starts at 5:00 p.m. eastern time don't miss a moment of t. it's a black eye in big pharma. shares of ely lilly getting slammed after they announced they will stop development of a key cholesterol drug.
and jessie ventura, never shied away from speaking his mind. the former minnesota governor now saying corporations own the government. he will join us on set. here is the new york stock exchange to explain later. you're watching cnbc first in business worldwide. re stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next.
across the drug industry today as everybody is vying for a piece of this big pie to try to lower cholesterol. let's start with ely lilly, they did stop a late stage study of an experimental cholesterol drug because it looked like it wasn't going to work. analysts have been looking at this as one of the biggest potential drugs for ely lilly. they are putting sales at their peak at $5 billion. all of that coming out of estimates for ely lilly. you also saw negative read through to merck because it is developing a similar drug. people trying to sort through whether that drug might be in trouble as well. you also saw some positive read through to other companies working in cholesterol like rejen roll and amgen which have these inject i believe drugs that just got approved. it was thought that these drugs being developed could potentially complete compete with these inject i believe so. you saw stocks of a.m. jeb and rejen ron rising today on this
news. the last company is esperion also developing a different kind of cholesterol drug taken orally. that stock initially popped on the idea that it would have less competition but settled lower as folks started to worry that the fda might require for studies to see how well that drug helps reduce the risk of heart attack, stroke, things like that. because cholesterol is a huge market, millions of americans, billions of dollars, lots of companies working and lots of stocks moving. >> i remember when we were talk being i think this very drug when it was in development and those 5 billion figures were being bandied about and everybody was getting their hopes up. because ely itself in the statement says there is a low probability the study would achieve it's primary end point that sound damning for this whole field of inquire. >> potentially. that's why folks are not just counting this out for ely lilly but worrying about this for merck as well.
there have been other drugs in this class that will failed before. as for ely lilly people are still excited to see what is going to happen with their alzheimer's drug, they had positive data on their diabetes drug. >> we would like to see progress on those as well. thank you for now. >> our me go terrell there. he is the former pro wrestler and former governor ever minnesota. will he add donald trump's running malt to his resumé? there he is. we will find out from the man himself. jessie ventura joining us in a moment on post 9 when we come right back. digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way
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welcome back. jesse ventura says corporations are running our government and america needs to pay attention to how involved they are in key government decisions. it is one of the strong points from his book american con conspiracies, second edition, available online and in stores now. and jesse joins us to talk about this. and you're here at new york stock exchange and you can point to a list of companies involved in some of the conspiracies. >> not really. just because you study con conspiracies, doesn't make you crazy, no, i'm not saying that. just that you've seen some companies around here that have
done this. >> yeah, like monsanto. this ties into corporations running the government. they contribute huge money to the candidates and they expect to get paid back. it is called bribery in the private sector. if you do it in the private sector you go to jail but in the public sector it is fine. so they bribe the candidates with money, the politicians. then the payback is the politicians then name monsanto people to the fda, the food and drug administration. monsanto has never been turned down by the fda for anything. >> and donald trump has made this a plank of what he talked about. i bought politicians, maybe it was hillary clinton for this and others for that, have you heard from him since saying, do you think you would be his running mate. >> that running mate thing came as a joke. i had roger stone, one of his operatives on my off the grid show and i said, roger, imagine how angry the republicans would
get -- >> so you don't want to get involved in donald trump. >> not necessarily. let me finish. i said imagine how angry republicans would get if trump picked the ultimate independent to be his running mate, me. and right away people said would you run with donald trump. and i said we've been friends now for 25 years. out of my respect for him, if he did ask me, i would give it serious consideration out of respect for you. >> and what would you do? what would be the policy against corporateship of government. >> changing his mind on things like immigration. i don't believe in building walls. >> you were just in mexico. >> i live in mexico. i don't just am there, i live half of the year there. and i choose to do that. but i think ronald reagan, who is the icon of the modern day
republicans, he must be turning over in his grave. because i recall a quote he made, mr. gorbachov, tear this wall down. and now we're going to build one. >> and let me ask you, jesse, when people voice support for bernie sanders an we have the democratic debate tomorrow night, for donald trump, explain what that anger is with politics today and what exactly is the number one priority for people to see in the next election. >> the ang over is over the career politicians who are there to pad their own wallets and not work for the people and there is anger over that. that is why you're seeing the success on the republican side, the top three contenders have never held an office. and if they would allow the harvard professor in on the democratic side, you might see it there. >> if corporations are the source of the corruption, how does that make someone from the business sector better thar --
>> it doesn't necessarily. people have to understand that running the government is different than running a corporation and i'll explain why. when you run a corporation, it is for profit. you are there to make that corporation money. government is to provide services. that is different. providing services is different than providing bottom-line financial gain. so that is what all of these private sector people are going to have to learn. that the government's job isn't to create money or profits, it is to provide services. >> and who in the current running, either party or yet to enter the fray, do you think best embodies this person, this change in 2016? >> well i'm happy for what donald is doing to the republicans. he's destroying the party. i'm happy what bernie is doing to the democrats, he's destroying them. my main focus is destroying this two-part -- two party dictatorship. >> you could almost call it a
conspiracy. >> all of this dictatorship in this country for hundred years now. >> understood. >> and their response is did you know a child born today takes its first breath of air and is $50,000 in debt and won't get a job for 18 years. >> and asked which party they belong to. jesse ventura. thank you, former minnesota governor and author of the book american conspiracies. we have news developing on barkleys. we'll bring you the details right after we take a short break here on "closing bell."
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i'm seema mody with breaking news on barkleys. changing at the top. the financial times is reporting that barkleys will name ex jp morgan banker jess staley as the ceo. the appointment is expected to be announced in the next two weeks. the 58-year-old will join the hedge fund he joined in early 2013. after a more than three decade career at jp morgan. again jess staley will be named the new ceo. the appointment expected to be announced in the next two weeks. kelly. >> wow.
seema, thank you very much. keeping our eyes on barkleys overnight, we'll see how it reacts as we get bank earnings, beginning tomorrow morning. thank you for joining us on "closing bell." let's hand it over to "fast money" right now. "fast money" starts right now. live from nasdaq, overlooking time square, i'm melissa lee. our panel today. traders are nervous heading into earnings season but one sector is a screaming buy right here and right now and we'll tell you what that is later on. and a big update from goldman sachs. there could be big trouble for the earnings reporting this week. and mike novo gratz stepping down from his fund. we'll tell you the name and the sectors that may have tripped him up in a special report. but the top story tonight and that is earnings. earnings season is here. we're calling it opptu