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tv   Closing Bell  CNBC  October 20, 2015 3:00pm-5:01pm EDT

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trade, maybe we need to have the pothole trade. good year monroe. >> tire companies. >> lkq, o'reilly. >> yeah. >> no reclining. last word. thanks for watching "closing bell" -- or "power lunch." "closing bell" starts now. again. i did it. hi and welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth. i look forward to the day when low heels become fashionable again. >> as do i, by the way. >> okay. tesla, by the way, have you seen tesla shares today? >> yeah ouch. >> they were down 10% earlier, down a little over 8% right now on a new consumer reports survey that says that the model s reliability is worse than average. we are going to have more details on this breaking story coming up in just a few minutes here. >> and the trail that are broke the internet. fans flocking online to buy tickets for the new "star wars" movie after the latest trailer
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for the force awakens was released last night, there a is a look we will talk to a top analyst about the impact the new movie could have on this stock. >> we may or may not play the entire trailer. you are going to have to stay tuned. >> several times. >> also yahoo is about to report its earnings after the bell tonight, the stock down more than 30% this year. we will tell you the key numbers to watch for when that report hits the wires coming up next hour. >> and man who plays former apple ceo john scully in the latest steve jobs movie, jeff daniels will join us live at the new york stock exchange to talk about that role and whether will mcilroy was loosely based on bill griffeth. so many similarities. >> will ferrell's role was more like me. >> i'm ron burgundy. >> we digress. we if i know with the news on yum! brands spinning off its china business. jane wells has details on that. >> investors not quite as happy about it now as they were earlier today but still happy.
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boy, that was fast. one week after adding an activist investor to the board who was pushing for change change came. now, by splitting yum! into two companies the management turns its cash cow china which is strug noolg a separately traded franchisee of the parent company, volatile but potentially faster growing. the split will get yum! brands off the china roller coaster. the parent company will stand-alone as slower growing but steady and 95% franchisee owned by 2017 a structure that should generate lots of cash. this was a unanimous decision by the board which includes keith meister. yum! said the transaction will be completed by the end of 2016. it's intended to be tax free and there shouldn't be a higher operating cost by splitting in government analysts have told cnbc the spinoff in their opinion reduces the chance someone will take over yum!.
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credit suisse is neutral but values the combined companies at $82 a share. deutsch bank says it's more like 74 bucks and it has a hold. >> jane, this is so telling, isn't it? who would have thought just a couple of years ago yum! would ever want to spin off its china business, it's 60% of revenue for this company is international or china. it's a huge number. i think this tells us a lot about the operating environment and i wonder how specific it is to yum! >> well, when you see what happened with wynn is it a yum! problem? is it a china problem? everybody was so gung-ho on china and many of these companies are stumbling now. one of the interesting things about separating china as a franchisee, which mainland china as a franchisee just try to get your head around that there's no taco bell there yet and they feel like by split tg off and focusing on it can do things like that and turned around and be fast growing. burritos in beijing. >> you brought up wynn jane.
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i also encourage people to take a look at united technologies, also talking about orders for its elevators down significantly in china. it's share -- >> take the stairs instead. >> better for your health. no but it's down to 15% from 25%. yeah, jane. >> one last china mention today which came out of nowhere. lockheed martin is going through the regulatory approval for its sakorski acquisition. the last country having to approve it is china. they expect t but i didn't even know china needed to approve. >> wow. >> and by the way, the new leader of canada justin trudeau has said they are not going to buy the f-35. that's according to reports on reuters, but again another potential hit. >> 65 planes. >> jane thank you so much. >> thanks, jane. >> you bet. >> let's get to all of this in our "closing bell" exchange today. joining us riverfront chief investment strategist rod smith, princeton securities senior floor broker benlis at post
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9 today and rick santelli with rabbit's feet and all kinds of things for the cubs getting ready for the game with the mets tonight. ron smith, this whole conversation about china, everybody aspired to be there, we knew it was going to be the century of china, but now people are starting to rethink that a little bit here. is that narrow minded to be thinking about that or what's going on, do you think? >> i think it's very right to be thinking about t we just came back -- two of my colleagues just came back from a visit to china and it's very clear that china is at a crossroads. nobody should be surprised that otis elevator is having challenges because the industrial demand for building buildings and building out infrastructure, that story which drove commodity is over and has been over for a while. >> ron, let me jump in for a second here. >> sure. >> on the point about infrastructure, and this is important for everybody, just
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this week china media reports, national media reports, were talking about more infrastructure coming. if they suddenly come out with a huge new infrastructure investment plan does this change the entire story we have just -- and the entire narrative we are talk being? >> no, the infrastructure plan they are going to do is actually very smart. what they're going to do is build first high speed trains to connect all of these ghost cities and make them dormitory suburbs of the main cities. that's intelligent investment, but it's not going to involve otis elevators and it's not going to involve commodities and anything like as much as the last boom did, but the consumer still a story. yum!'s choice of splitting off their business most companies have had a very hard time really capitalizing on the consumer in china. >> right. >> because china doesn't want them to, but i think a focused company that doesn't have to worry about the parent company status that's a smart decision in my view.
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>> ben willis the overall market very quiet, questionnairevery narrow trading even with the ba rog of earnings coming our way and the economic data. when the market is this narrow it feels like the market feels like it figured everything out right now. what do you think is going on? >> two things i want to make a point on. one, the china trade as i told you yesterday, we call that the joe gi bare ra trade. it's too crowd. nobody goes there anymore. princeton securities has been talking about it as a place to be focused on as a trader. that trade is all loaded up and we are stafrgt starting to see the observations of traders move to other areas. today's market was a dee fanging of the market. those big momentum stocks getting hammered. that took a great deal of momentum out of the stock. it appeared to be believe it or not some of the people -- if i can derive from it that it was those that were short -- squeezing the shorts in those stocks are now -- the stocks are
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now being dumped. so there is a momentum play coming out of that. some of the benefits -- some of the lesser followed names, that's why you see the mid caps performing well, you see some of the regional financials performing well, some of the technology, the hardware and technology sector seems to be benefitting from the flows but the actual volume of trading around the street right now is down about 20%, but if you want to put a headline on t this is definitely a dee fanged market. >> other than the cubs out in chicago what are you watching this this market today? >> probably a big drop in the subscriptions of the consumer reports. i will tell you what this tesla story, it's a wonderful story on so many levels because when investing becomes a religion or when looking at the environment becomes a religion never a good thing. so two months ago consumer reports gives the car 100
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points, not 98 not 99 100 points even though i could get a 72 vega out of any junkyard and beat any tesla from new york to california any day of the week. flash forward two months -- in two months flash forward and 1,400 people that actually own them say there is a reliability issue. listen, consumer reports should have done a better job. i still say that the tesla of today is going to be the tucker of tomorrow. okay? and not because it isn't a wonderful car, tucker was a wonderful car. tv was wonderful but it took 20 years to come to the marketplace marketplace. if elon musk would have had his same car and had a natural gas charger maybe we could talk some business, but it's an odd car for an odd group of people. we have too much money and probably four other cars in the garage but it does speak volumes about the investing areas that
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many young people see, they associate a product with a religion and things go wrong. >> i encourage everybody that watch the movie about the tucker automobile from out several years ago. it was a great movie about all of that. >> bill do you have a second to come back to something you said? >> yes. of course rod. >> you said at the beginning that you felt like old and news -- i wrote a weekly which talks about the market being in a decision box. >> right. >> i would say that all the news is not known and the market is trying to figure out if 2016 is a recession year for earnings or another year of growth and it's stuck in this decision box between 1850 and 2050 and the break out will be really significant. our judgment is the breakout will be to the upside but we have a pretty aggressive risk management plan. >> i was going to wrap this up by asking you where are you making money right now?
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>> the place that you're going to be making money if you are a little bit patient is the ongoing staelt bull market in japan that is still not understood. japan has outearned the u.s. since the lows and continues to outearn the u.s. so that's one place. and you will make money in europe if as seems to be happening, bank lending growth and retail sales growth has not suffered from the lull everywhere else this summer. >> okay. >> the china story is overdone. i think stay with japan and europe. >> we have another guest coming up who likes the japan story. thank you all gentlemen. appreciate it. >> good luck tonight, rick. >> absolutely. >> 50 minutes to go until the close. the dow is up 70 points. been fighting into positive territory kind of like yesterday. >> we just showed ib ism is dragging the down. >> the broad index there down about a point for the s&p, the nasdaq giving up 20.
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>> when we come back will the new "star wars" movie propel disney's profits and stocks to a new galaxy? it says here a leading disney analyst will give us his take on that coming snup and jeff daniels joins us at the stock exchange to talk about his portrayal of former apple ceo john scully in the steve jobs movie that's hit ag lot of theaters this weekend. t ag lot of theaters this weekend. i ag lot of theaters this weekend. ng ag lot of theaters this weekend. lot of theaters this weekend. former apple ceo john scully in the steve jobs movie that's hitting a lot of theaters this weekend. portrayal of former apple ceo john scully in the steve jobs movie that's hitting a lot of theaters this weekend. ceo john scully in the steve jobs movie that's hitting a lot of theaters this weekend.
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all right. 45 minutes left in the trading session. the dow is up just 4 points right now, but we are really focusing on weight watchers again. it was up 115% yesterday, oprah bought a 10% stake at friday's closing right of $6.79. >> yeah. about a third of where it's currently trading. it's made just in big round numbers -- she is in on her $43 million investment she has now made roughly $110 million in two days. >> i mean now we have to see if it all pans out, but wow. just shocking. she has by the way an option to acquire an moold 5%. she is joining the board and she will they say be in her advertisements coming snup that's not normal oprah. you don't usually make that kind
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of money -- you make that kind of money on two days in the market but it's not typical. >> tesla shares are hitting the skids on a sorry phil lebeau broke a few hours ago. >> it's the annual reliability report from consumer reports. every year they survey all of their subscribers and people send in their responses. well the response from 1,400 tesla model s owners was not a pretty one. this year consumer reports ranks the tesla model s as having worse than average reliability. tesla doesn't have more than one model so they don't rank the brand overall, but it is the lowest ranking for the model s in the last three years. here is jake fisher from consumer reports on what people were complaining about with their tesla. >> we're seeing all different types of issues, some of them are annoying issues squeaks in the hatch or squeaks and rattles in the sunroof but also major issues in terms of the on board charging system we're even seeing people who had to have
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the entire electric motor replaced. >> tesla responded to the report from consumer reports by saying that model s over the air soft ware updates allow tesla to diagnose and fix most bugs without the need to come in for service. in instances where hardware needs to be fixed we keep the consumers convenience and satisfaction top of mind. take a look at shares of tesla, under immense pressure immediately after the report came outer at 1 point down more than 11%, it's got back a little bit, guys. for people understanding at home how far tesla has dropped, it's lost just about a quarter of its value from its all time high which was set back in july. back to you. >> phil one issue on this for people try trying to wrap their heads around how they could have gotten this 100 score while this is the case with these reviews, these are two separate -- it's almost like the payroll survey, there's the payroll, household survey. will this ultimately influence a score on ter form ans tesla gets
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next rear or no? >> no. you have no understand those are two separate reports. completely separate. that report from consumer reports where they rated the model s at a 100 out of 100 is strictly based on the consumer reports auto team test that go video on a wide range of things. so it is a complete auto test. it is their review their opinion. that's separate from this. this is owners of model s coming in and saying, hey, here is what's not working with my car and then based on those responses and calculating it versus the average for other automobiles it comes up with a rating of having worse than average reliability. >> all right. >> comes at a bad time for the company and the stock right now that's for sure. not great press recently i phil thanks very much. >> there are less than two months to go until "star wars" the force a wanes ens hits theaters. last night following the premiere of the latest trailer fans crashed movie theater sites
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trying to get their hands on pre sale tickets. >> the question is will the latest installment of this legendary movie franchise be able to live up to the hype and take disney stocks to new levels. let's rich in rich chul low. you think it will. >> i absolutely think it will. the only limiting factor for this movie on the first weekend is how many heat remembers available, how many seats are available in those movie theaters and how many time slots they can physically make available for people to watch the movie. >> isn't part of the problem, though, also expectations. we're already seeing this is going to be the biggest movie of all time couple billion dollars in box office. unfortunately for investors and this is the investor point of view, if that gets guilt bilt into shares now what happens? >> buying the story and you saw on the news after the movie premieres we will have to circle back and see how it's performing versus expectations but right now -- just on this product -- >> i think this movie can do $300 million in the box office if it has a gadd first weekend.
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>> you mean the first weekend? >> yeah. >> disney is very good at creating tangential products that go along with that. it's not just about the movie, it's what they can sell otherwise. >> and that's what would drive the stock price toss higher levels after, you know december 21st right? but, you know right now just looking at this and not other disney's products but baus they may have some issues on espn and on the tv side but just looking at this movie i think it's guantanamo bay to be very successful. right now versus all the other block busters this year it's performing on google trends right at the same level of these other big movies jurassic park and it's not out for another two months. >> apparently this is all more important because there is speculation among the analyst community that espn viewership has peaked. we've talked about whether or not it has, but are the stakes higher because of what's happening on the cable side? >> absolutely. all right. abc structurally and disney
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structurally the problem is they have 19 networks. okay? so when you have a bundled world and the value is created from content is king and the network, that's great. when you have a skinny bundle world and the value is created by experience and pieces of content, content tent poles as we like to talk about, then that's a problem when you have 19 networks because you don't have the programming to fill all 19 networks so you have to consolidate those networks or figure out an experience that people are willing to pay for. >> there's not one ounce of you that is worried that maybe it's not going to live up to the hype at this point. you know how this works. the bigger they are the harder they fall. >> the combination of walt disney and what they've done strategically with the avengers plus aa abrams and what he has done execution nael with "star trek" and his other films makes
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me highly confident that they can produce the goods. >> it all looks great on paper, doesn't it? >> that's why we have the opening weekend. >> that's why they play the game. exactly. rich good to see you. rich trullo. >> 30 40 minutes left in the trading session here. the dow is down just a point here. again, we point out ibm is the biggest drag there. if it were not for ibm the dow would be up about 50 points right now is bu that disappointing earnings report has taken a toll on ibm stock yet again. >> still you have apple, travelers, a couple -- travelers with earnings doing a little better, that's bolstering the blue chips there. coming up we will preview yahoo's results due out after the close. that could set the tone for trading tomorrow. >> up next here he comes, emmy award winner jeff daniels is in the house to talk about his latest role-playing former apple ceo john scully yes, will mack he will voi is coming up to the anchor desk where he belongs. on "closing bell" after this.
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need we introduce this man? his credits include wide ranging titles, the marshall that's just been out, the newsroom that we all watched because it was like a documentary and the legendary dumb and dumber as well. >> one of my favorites, by the way. by and dumber i could probably quote that movie from memory. >> we are not worthy.
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>> his latest role jeff daniels attacking the tough character of john scully in the movie steve jobs which does make place at one of the tumultuous times in that company's history. joining us is emmy award winning jeff daniels. >> it is a pleasure to be here as will and as jeff. this is quite something. >> you have nerve to the new york stock exchange. >> what do you think? >> seems like the whole world goes through this place, maybe it is right now. i don't know. >> what did you learn about apple in doing the movie? >> what did i learn about apple? that it's run by human beings it's not some corporate entity that just -- that people like john scully are -- they are not cliché that you would think out there, what a corporate guy is. they have strengths, they have weaknesses, they have feelings, they have emotions and that was what was school about sculley is that he cared about steve jobs as a person chased his creative
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genius but tried to steer t it was fun to play john the strengths and emotional weakness that he ended up having to go through because of what happened. >> sculley was brought in to be the adult in the room for the company at that time in the company's listly but he ended up being the bad guy because he forced steve jobs out. do you play a villain in this movie? how do you portray him. >> no he is not a villain. the trick to playing anybody is they are never the villain. sometimes you play a villain and he is going to kill somebody okay, goat get t but like a sculley, what he did was what he thought was best at the time. certainly you can look back and go why did you stay with the apple 2 instead of the mack. didn't know it at the time. now the mack is what the mack s what i took a a washington friday john, i got to meet him once not only did he wish he could go back and redo that decision in hindsight but also he misses the relationship with steve. that it was special. that he bought into the fact
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that i'm not -- he was a marketing rock star with pepsi and now i get to help this guy change the world and he really bit on that. >> no relationship with steve jobs ever ended well right? >> there is a wake of people behind steve. >> he was a tough guy to love. that is part of the controversy here. my favorite line in the "new york times" review this have movie is that it's a creation myth written by a kept tick. your buddy aaron sorkin who you did the newsroom with as well. the people who love steve jobs don't like this movie because it shows all the warts, right? >> it's not a marketing pamphlet. it's not a brochure. it's a study of one of the great creative geniuses we have ever had. much like henry ford much like thomas edison others, steve jobs said i'm going to change the world and then he did a bunch of times. you have got to be a certain mindset to do that and those guys are complicated. they are not simple they are complicated guys with issues. steve was no different and
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sculley was a guy that was brought in to steer her towards the next idea which was going great until it didn't. >> bill mentioned the newsroom. have you said which character you is based your anchor man character in the film on or people you might have spent time on or been influenced in that portrayal. >> i may be the only actor to publicly admit that i didn't do any research whatsoever. i did not want to shadow one particular anchor. i read the pilot, i saw that i'm taking cell phones and throwing them at cameras, i'm going why would a brian williams or a sean hannitiy or keith observer man why would they want me out there going, yeah i base it had on so and so we just made it up. >> and then you mind out how easy this job is to do right? >> no. i've even gone -- i remember takes on newsroom where i would be reading good evening, i'm will maxwell, mcavoy. sometimes reading is difficult.
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>> did we get him? >> fantastic. >> is he on the phone. >> john sculley here. >> i don't know if you knew but sculley was going to join us and now he is, he is on the phone here. >> this would be a really good time to tell me you don't hate what i did. >> right. right. you've seen the movie i imagine, right? >> i have seen the movie and i love it. terrific entertainment. jeff daniels, you were terrific and i love you in everything you do, i just saw you in martian the other night so i was thrilled to have you play me so thank you. >> oh, thank you john. i told you when we met and you were leaving i said i think you're going to like t we really went after the scully side of the story and really tried to show your strength in dealing with steve and i'm thrilled you enjoy it. >> john do you understand why some lovers of steve jobs don't like this movie and the way he is portrayed? what do you think of the way that michael fast bender plays him in this movie? >> well of course i understand
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that but most people don't know steve in those early years and the reality was that he was always a genius always brilliant, but he was imperfect and even some of the products weren't yet perfect, but the steve jobs that everyone has spiers so much today did become a very different person. 'd wonderful wife he had a great family of three additional children, including lisa but this is not what this is about, it's not a bio pick or history of apple, it's a history of steve back in those early days when he was a complex man going through some very complex relationships including with me but particularly with his daughter lisa. >> is there anything john you feel needs to be done to set the record straight after viewing this film? >> well i think the record has to be said that steve jobs was a terrific person. i think i knew him as well as anybody did back in those early
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days. he was quite different, he had multiple sides to him. he was complex. so the picture was accurate in the things they showed about steve, but it didn't tell the whole steve, the steve i knew would laugh and giggle and people loved working for him and there were a lot of other things to steve jobs. he went on to get married, he had a very happy marriage and he had three more children. so steve jobs did end up with a very full life but he had a very complex life while he was maturing. in fact, in those early days it was pretty similar to what you saw in the movies. the movie -- >> well i was just -- >> it wasn't accurate to every detail but did capture the personality of steve in those early years. >> the guy who knew him the best in those early days was wozniak and he says everything in that movie didn't happen. >> correct. it's not a documentary as john said it's not a bio pick or documentary it's this kind of
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fictional zags of a person and what he was like as john said during that time. >> so learn more about steve jobs telling stories that never happened. >> or taking walter's book and forcing him into three launches you get an understanding of who steve was, of what john might have been going through and then walk away. if you're looking for a documentary go somewhere else. >> john sculley, thank you so much for calling in. >> you are very welcome. >> that's john sculley the former ceo of apple. >> now we'd like will mack he will boy voi to take us out of here. >> let's find out what's going on elsewhere in the world, time for a consumer news update about susan herrera. i understand you are closely monitoring a royal welcome in england. >> i am. you made my day. pleasure to have you with us. here is what's happening at this hour. queen elizabeth taking chinese president xi jinping and his wife on a tour of buckingham palace.
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the queen showing xi who is on a visit to britain a display of items relating to china. >> joint chief of staff joseph dunford landing in iraq to get an update on the battle against isis. he sees no immediate prospect of russia expanding its air strike campaign into iraq. >> the volcano in western mexico showing renewed activity that volcano is one of the most active in mexico and it's been flaring up in recent days. ohio police have released dash cam video of an incident involving cleveland browns quarterback johnny manziel and his girlfriend in fr last week. manziel claiming she through his wallet out of the car. she said she tossed his wallet after manziel hurt her arm. both admitted to drinking before the incident. >> you are up to date. that's the update right now. back to you all. >> we feel up to date. thank you very much sue. >> 25 minutes to go here.
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the dow moving back into negative territory. down about five points. again, weighed down by ibm today. the sooen down a point, the nasdaq down 23. it's red rare rows here with less than half an hour ago. >> ferrari gearing up to price its initial public offerings after the bill. a leading analyst will tell us how he sees the ipo market finishing up this year after this. built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business...
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we are in that final and critical half hour last half hour of the trading day. i have mat chess lock of virtue financial with here here. quiet market. >> i think we're looking forward to ferrari tomorrow i really think. >> is that really it? >> i think it's a real health barometer what have the market is doing and ipo market in general. we haven't seen very good ones recently, most of them priced 18% below the midpoint. if this one can exceed if he can
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expectations it will be a healthy sign for the market. >> earnings also we're getting a mixed picture of corporate america right now. >> it seems like they're hurting the stocks that miss and the rest of the market has been able to rally. transports have been strong and every else has been week biotech, huge momentum stock and bell weather and ibm has taken the market down. >> any expectations for yahoo or chipotle tonight. >> i'm sure he will get a ton of coal tilt you don't want to go to anything position wise on either of those. i would expect them to tomorrow to be super volatile. >> thanks very much. kelly, let's falk tauk about ferrari. >> in just a moment we have yahoo posting results, too, in less than half an hour from now. josh lipton has a quick preview of the numbers the street is looking for, josh. >> kelly, there is concern about yahoo's turn around giving that exodus of key executives we've seen there. after the bell investors could
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have more clarity about the health of marissa mayer's company. here are three metrics, eps of 16 cents, revenue 1.26 billion. eend da of 230 million. beyond the core business investors want to see if we get any more insight from mayer about alibaba. they plan to go ahead with their spinoff even though the irs has not said whether that transaction will be tax free. difference in potential tax liabilities amounts to billions of dollars. yahoo stock down more than 40%. can marissa mayer put the bulls back in charge? stay tuned. >> we will have more after the bell. ferrari set to price its ipo. sources telling cnbc that could happen above estimates, as high as $53 a share. >> let's quick in rich peterson on not only that ipo but the big
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picture. first of aushlgs ferrari, i made a note to myself this more of a stock offerings or a collectible. >> let me say that talks about the death of ipos is much exaggerated. >> the front page of the wall street journal today? >> the fact that s&p indices rolled out the s&p oip and spin off index, the total return is up 2.5% year to date better than the broader market. >> total terms. >> that is not a ton and pin office are a different category. >> it's a new issue. ferrari it's a spin off in a sense because fiat chrysler owns 90% of the shares. >> right. >> they are selling 10% to the public, going to sell 17 million shares between 48 52 kelly recently reported the expectation may be as high as 53 that's going to be one of the few ipos ever price that had high. >> that's my point. are you buying stock or are you buying a collectible? everybody wants a piece of ferrari, a legendary auto maker >> sergio had his way it's a
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brand. it's a brand like prada, so -- >> is it representative of the whole ipo market right now? >> the ipo market it's a mixed picture. obviously you had great performance with shake shack up over 130%. other side of the coin first data it's flat. you have companies that have been withdrawing their offerings, albertsons neiman marcus. >> you mentioned albert cons and me nieman. since the tech waters have gotten choppy are the nontech ipos doing better or are they struggling to make gains? >> for technology it's almost like or fans of the 140 odd ipos that are priced in the u.s. with less than 14% are tech companies, thea the lowest number percentage wise since 2008 post crisis. efr one else a mixed picture. that's been the driver for ipos in the past several years has been the jump start our
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business -- >> job stack. >> job stack. september of 2013 in the two years since that happened 480 ipos 40% have been in the healthcare sector. a lot of the big deals we see, restaurants, discretion naer healthcare, it's again, a company that has a business some profit and some cash sha that's going to drive-in investors to buy them. >> what a concept. as it should be. >> if we can only help. >> thank you. rich peterson of s&p capital iq. >> over 15 minutes left to the in the session and the dow trying to figure out which way we are going to go. yesterday we had a big buy program on the close that pushed us in positive territory. >> tomorrow may be the 30th anniversary of back to the future. but up next morgan brennan looks at transports over the last 20 years for an amazing stock story. >> also still ahead yahoo earnings and we will break them down with the man who wrote the book on yahoo literally and a
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less than satisfied shareholder as well. you're watching cnbc first in business worldwide. but up next morgan brennan looks business worldwide. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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for 20 years the last three months of the year have been a boone to a handful of stocks consistently outperforming all others. >> morgan brennan joins us to tell us what companies those are and why they do so well. >> so it's been a tough year for industrials with the s&p sector down about 5.5, 6% this year versus the broader indexes 1% decline. here is the good news, historically these stocks industrials, tend to out perform in the fourth quarter. dating back to 1995 the industrial sector has on average returned 6% in q4 versus the s&p's 5%. now, the stocks that tend to pop perhaps not so surprisingly many of them are transport names, that stand to benefit from the holiday peak season uptick. jb hunt it has traded positive 90% of the time over the past two decades, averaged a 14% return according to ken show
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another name union pacific has also traded higher 90% of the time in q4 average return 8%. a similar story for other railroads as well namely kansas city southern after last week's earnings results that stock hasn't been faring so well lately. another name to consider that's not a transport, deere. over the past 20 years the neighboringer of farm estimate equipment has traded positive 90% of the time. averaging a 13% return according to ken show. back over to you. >> morgan thank you. something to keep an eye on for sure. 'tis the season. 12 minutes to go stocks moving a little lower. the dow down 20 points the s&p giving up nearly 4, the nasdaq having a tougher session. >> mr. cash inn was pointing out 300 million to buy into the close. minor little bump. not nearly what we saw yesterday. >> it will get exciting after hours. aside from earnings we are also likely to see the ipo price for ferrari which could be a record
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setting one. if your cars are -- if cars are your thing, i should say, be sure to check out jay leno's garage that's cnbc's new prime time series it's tomorrow night at 10:00 p.m. >> love that show. first, though why a market correction will not lead to global recession. we have steve parker who will give us his take on that when we come back. ♪ ♪ ♪ (singing) you wouldn't haul a load without checking your clearance.
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eight minutes left in the trading session with the dow down 18 points. joining us steven parker from jpmorgan private bank. you have given a lot of thought to this pull back that we have seen in the market following what was admittedly a lousy quarter for corporate america. >> it was but there has been an interesting trend going on in equity markets so far this year. when you look for the full year the s&p is flat but under the surface there's something interesting going on. if you look at how the market has done during earnings reporting season it's up 8%. once earnings season ends and you stop focusing on what companies are doing and start looking at the headlines around greece or china or the fed, markets are down 7%.
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so what's important is that we are in the beginning stages of earnings season and two longer term it is those corporate fundamentals which markets are saying are still pretty good that drive equity markets. >> we had a guest at the top of the hour when we say what do you do in this environment, figuring out corporate earnings and everything else he said i buy japan. i know japan is a trade you guys have looked as well. why do you think japan continues to work? does it make sense for u.s. investors? >> absolutely. japan has been one of our favorite trades being a big guilt filth that we have had in client portfolios for a while. recently it's been punished. people are look at japan and seeing the slow down in china the impact on japan could be meaningful but when you actually look the amount of revenues that come from china from japanese companies are pretty small, 5%. last quarter despite meager global growth japanese companies delivered 20 plus percent growth. they are looking at profitability. there is still a lot of low hanging fruit.
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>> but you do have to be selective here. i mean you know in the aggregate the feeling was that the expectations for corporate america's earnings were so low that they could do a walk over but then you get a morgan stanley, you get hog -- >> harley-davidson. >> harley-davidson, ibm of course they have been suffering for three years now. it is very much a market pickers market right now, right? >> that's right. i think we are at a point the earnings cycle was matured and you are seeing differentiation between the winners and losers. markets are rewarding those companies that deliver and punishing those that can't. you have to be more selective right now. we're still finding opportunities, whether it's through smart stock picking or finding some of the sectors that we really like. >> which would be? ? one things that we like is the consumer. there is a lot of momentum in terms of the consumer. the top 10% of the households
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have delivered the top 10% of consumption growth. as you start seeing the wage pressures pick up seeing people making more money, getting more confident there is a huge portion of the consumer base that's out there waiting to spend and that is where we are looking for some of the opportunities today. >> tell that to walmart. thank you. >> steve, thank you. >> good to be here. >> we are coming back with the closing countdown for this tuesday. >> after the bell, yahoo earnings just ahead, what impact will the recent executive exodus have on company performance and morale, our analysis coming up. you're watching cnbc, first in business worldwide. td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you
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matters most. welcome back. exactly two minutes left to the close. here is what the dow did today. selloff, this was much like we saw yesterday and then sideways action once again. we are going out with a decline of about 9 points. ibm was the big feature among the dow components with that decline of almost 6% here after the disappointing report last night. ibm alone took about 55 points out of the industrial average. we would have been positive without ibm today. now we get ready for earnings tonight. we've highlighted them yahoo expected out just after the close, we are down 2% on that one and then chipotle is out as well, down 1.5%. weight watchers continued higher
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up another 30% today, bob pisani. >> anything oprah winfrey says at this point is going to move the stock market. >> she invested $43 million and now she has made $110 million alone on her investment. how nice for her. >> i think the main story that's evolving i did a story on trader talk today is the revenue issues that are continuing. so today ibm, united technologies, even rambus these are not particular industries. many industries are talking about revenues generally being lower than expected and we are seeing q4 fourth quarter, revenue expectations for many industries slowly coming down and that ultimately is what matters. you can say, yes, the energy companies are having problems yes the strong dollar is hurting multi-nationals, all of that is true but the global weakness is the big story. my concern is that the stock market has held up because margins are strong 10% on
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average. if the margins start going under pressure, they are going to have to cut costs. >> thanks bob. see you later. go out down 11 points ringing the bell jm smoker celebrating 50 years at the new york stock exchange and celebrating annual trading week for kids at the nasdaq. stay tuned now for the second hour of the closing bell with kelly evans. see you tomorrow. thank you, bill. i'm kelly evans. yesterday on the bell the dow surged into the green, today not the case, though giving up about 9 points. the s&p, the broad market, going out with a design of 2.5 and the nasdaq giving up about 25 points on the session today. notably it was down half a percent. we are awaiting some key earnings reports this hour. josh lipton will be covering yahoo's results for us and morgan brennan is standing by to bring us chipotle two biggies here. we are also waiting shortly on
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potentially getting the pricing information for ferrari's ipo. we have michael block in the house and our very own sara eisen. "fast money" trader steve grasso will join us momentarily. michael block, what do you make of this market? >> i think we're running out of gas. the thing i've noticed as we keep grinding higher on low volume. there is no leadership. is it growth? one day it is then it stops. the thing that i notice is even as we were making those highs this morning the momentum stocks, dow jones market neutral momentum index went straight down and then when we bounced back it didn't recover. the stuff that's been working wasn't working this morning, the stuff that isn't working was working this morning. >> this is what one of our friends on the floor pointed out, your point about momentum he said we've gotten dee fanged today, facebook netflix, google were not working. what does it tell new is it just, hey, it's just for today. >> it tells me there's fatigue t may just be for today.
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they could resume momentum tomorrow. let's see what happens with earnings and overnight in the other markets, but to me i think we're running out of gas. i've slowly been telling clients to take profits, fade trim exposure buy some puts now that the vix is not to elevated anymore. >> if you want, sara to look at some of the winners, on the dow united technologies which is maybe for the wrong reasons, but a $16 billion cumulative buy back. this is a huge buy back program, they only have a market cap of what did i say $86 billion? those shares are rallying to the tune of 6% in one session at the highs. they were about -- there we go closed higher by about 4%. the earnings were a little weaker, they have some company-specific issues and a massive buy back. >> that's what it is. there are company-specific issues with earnings and deals and ipos but in terms of a general theme, driving this market it does seem a little directionless.
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alan russ kin butt putt out a great note he said that's because the four major macro themes that have driven this market are very much open-ended china and it's currency policy emerging markets and just how much they're suffering and how much it's weighing on global growth the federal reserve and u.s. economy and then whether we can expect more stimulus from the european central bank, we will get clue this week and from the bank of japan. all of them are very much uncertain going into year-end and could determine whether the -- by the way, you say running out of gas, still holding 6% rally for the s&p in october. >> steve what's the mood among traders? what are you guys thinking b listen, last week we held the 2020 level on the s&p, we almost held 2035. it seemed like we were holding in there. what do you think? >> i think it's the same confusion that the rest of the retail investor the rest of the institutional investors are feeling as well. it's confusion. you are up here at the upper end of the trading range and for me it was that 2032 level. once you breach that once you break through that to the upside pretty -- in pretty quick order
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you get to 2071 as the next line in the sand but i will tell you that there's not real conviction. >> and china might be one key over arching reason for this. we have yum! brands doing its china spinoff united technologies talking about china orders for otis elevators down significantly and wynn and its struggles in macau. that's real uncertainty as to where china is headed. what where does that leave the biggest growth story of the last several years? >> you and sara just -- you nailed t this is what's been the growth engine for this marketplace. it's been the company buy backs as well been that underpinning financial engineering, but when you look at china, are they ever really coming back online? are they ever going to be that growth engine again? it might be a services sector of the economy that's going to regrow -- >> the growth fear is that it would have a hard landing which it doesn't appear to be having from the data.
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>> the bigger take away is when you look at earnings this is the weakest earnings we have had outside of a recession in the history of the s&p basically. >> because we are projected to fall year on year we will see how they tp to come in michael. >> speaking about china, we talk about wynn is having problems that's not a new story that's been going on for years, corruption maybe some slowing going on there so it slows down. you talk about utext there's a company that was left for dead suddenly everyone was sure they come back not as bad as people think. there's rain bows and puppies and, you know the thing to remember everyone left them for dead and suddenly the stock is up okay it's because of u.s. nonresidential construction. >> those figures were impressive. otis elevator orders up 47%. now, why they booked the hudson yards project, one of the biggest construction projects ever to happen in new york city that's maybe an unusual case
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but we also know, everybody, there is a boom in commercial real estate happening in this country. >> it's working and the one consistent group that i keep telling people to buy, you can say it's a safe group but you want to put money to work the rates are working. it's going to have to go after yield, cap rates are low, they could go lower. >> by the way, everybody, yahoo does look like a miss 15 cents versus the 17 cent earnings estimate. >> if you look at what led today it speaks to that rate chase. you had tell comes, utes leading today which is not an overall bullish sign for the overall economy based on growth or lack thereof? >> the ten year treasury yield went up today. >> you have that temper tantrum all of that going on that's such ain't vent history. >> the smart money, the dumb money, you can -- you can never
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hang your hat on anything. >> what do you think would lead in a rising rate o environment, you would never say utilities and they do. >> let's get to josh lipton. yahoo is moving to the down side on its earnings. >> let's get you those numbers, kelly. yahoo reporting 15 kernts on 1.23 billion. the street was looking for 17 cents on 1.26 billion. just coming quickly through the release here kelly, may ven, mobile video native social ads 4 $422 million in q3 up from 295 million in the year ago period mavens representing 29% of revenue in the third quarter of 2014. there was an increase of 38% in the third quarter of 2015. turning through the segments gap search revenue 509 million, traffic acquisition costs 119 million in the quarter, display revenue 509 million, traffic acquisition costs there 104 million in the quarter. on this call here today we will hear more traction that they can
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give us about may vens any update about its plans to spin out that stake in alibaba and those key executives living you would think mayer will get plenty of questions about that that conference call starting at 5:00 p.m. eastern. >> thank you very much josh yahoo shares down 1.5%. >> i'm not looking at this -- it's funny because i have traders actually hitting me realtime as this is going on. in addition to telling me how nice my hair looks what they're telling me what's the count down to mara mare out at yahoo. >> would per departure be met with a rally in the shares. >> is this a twitter situation where it's like okay costello is out now who is in and then we muddle around in perg tore for a while. how do you get this back on track? they are not running the company right. google in addition to doing a lot of things right is a cost cutting story. we tear from jock tac is up who is running this company?
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>> it's a big thing, everyone is worried about the spinoff, traffic acquisition costs but when you see who they are chasing, they are chasing facebook and google. if you look at facebook they have 80% of the social revenues and if you look at google they have 88% of global search. it's really a difficult position that they've been pegged into the corner of is. >> third straight consecutive miss to consensus estimates, but the shares are positive by half a percent. >> the average analyst price target is $45. 70% of analysts say it's still a buy. to her defense they like what she's been doing with the alibaba stake and tax free pin off if we can get it done with the irs. >> i don't know if they like it or it's been pounded far enough that it's down in the price and upside risk is a greater potential than down side. we all heard about them being turned down or pushed aside with the irs deal but maybe there is upside risk at this point. >> this is almost not a fundamental stock anymore.
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where are the bodies buried in this? what are they going to do with alibaba, will shareholders be happy with that that's who is playing in the stock. the momentum investors have been gone since jerry yang. >> once that's done you can spoke us on the fundamental business and whether it can offset the declining legacy desktop ad revenue. >> if they're paid per click number is going up that can offset some of the decline in traffic obviously that they've seen recently. that remains a big question. so it remines a little of the discussion we were having with ibm yesterday. if you're trying to strategic clee reshape a company and you have a piece of that -- that's performing quite well while the rest of it is struggling at what point is that enough for investors to hang on, believe in the company, believe in the executive, believe in the turn around story? >> it comes down to time and price. is this enough here? people have left this for dead. when i talk to the big tmt investors they say one quarter is good show me two quarters
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that are surprisingly good i'm going to get very interested in owning this long-term. >> chipotle numbers just hitting the street. $4.59 on the earnings per share is a miss relative to the $4.62 estimate we have still up on the year but the shares sharply lower. down 6.5%. if you want to talk about a momentum name guys while this isn't a tech play it certainly has been in that cot gear. look at the price still, $660 a share there. a miss on the bottom line by 3 cents for chipotle while it looks like the revenues are matching $1.22 billion that makes it a 12% gain on the year. i mean all right, let's get to morgan present then. thank you for joining us with more on these chipotle results. >> so it was an earnings miss $4.59 per share versus $4.62 per share, revenue $1.22 billion. comp sales, one of the big numbers same store sales, coming
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in at 2.6% that was slightly better than the 2.4% that was expected. the company says it opened 53 new restaurants during the quarter. also maintaining its low single digit compare comparable restaurant sales for the full year, they are sticking with that outlook. also saying that they are opening 215 to 225 new restaurants, that is up from their previously announced range of 190 to 205. so taking look at shares of chipotle right now they are down about 5% in afterhours. >> what do you make this have? >> they are still working through a couple of problems you still have that pork supply authority analogy that they're dealing with. you also have comps that are just unrealistic that they could attain. astronomical comps to beat. you have yum! you have the spin off, mcdonald's a turn around story. there is a lot of other places to play when people look at a $700 name. ultimately i think this gains a little traction back but there
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is a lot of other ways to go right now. >> i would just add to it you know chipotle has been a pretty bullish story and i like how sort of dow jones called it they are in their awkward stage. they have grown two decades, 1,900 stores, they are not going to get 17 to 18% same store sales growth. obviously there is some growing pains along the way. it will be interesting to see management's commentary around some of their other avenues of group, they have this asian cuisine that's spend spreading all over washington, d.c. >> they have 11 units right now so is it really going to move it? a lot of times i get nervous when a company of this size starts to die flekt our attention with an 11 store shop house. >> look, i think the story is a little tired at this point. that's the problem. there are good points here they brought in a new chief information office to help with their analytics, kurt garner, that 2.6 comp it is lower but i
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think investors have adjusted for that. let's see what the analytics are, they have been clever in the past it feels tired right now, let's see what's next for chipotle. >> when was the last time everybody ate at chipotle? >> i go all the time. >> we doing all the time but the lines are crazy, if they do that mobile ordering that's a huge benefit. >> thank you so much steve. more coming up with steve grasso and the "fast money" guys at 5:00. they will have the latest headlines from yahoo's earnings webcast. don't miss it. and did don't go anywhere. we have much more ahead including a shareholder who wants ceo marissa mayer out of the c suite. ferrari's ipo could price every moment now and could be one of the biggest of the year. you're watching cnbc first in business worldwide.
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welcome back. take a look at yahoo shares again in the red. reporting third quarter results and down about 1.5%. as you can see right now it's still bouncing around quite a bit. with us is nicholas carlson, he is editor and chief of business insider. welcome to post 9. >> someone say yahoo so here i am. >> with an ex claims point. these latest results coming in another miss on the top -- on
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the bottom line i'm sorry, actually a little on the top line as well. to the point that mike was raising last block, how much longer does marissa have here? if i were to make a prediction it would be that the spinoff happens, the company looks cheap to private equity and someone comes in buys it and just changes strategy and there goes marissa. >> who are the buyers? >> i think peter childrenen and silver lake, they were interested last time. there are a few people looking at yahoo and think it's cheap. >> let's get out to josh lipton. he has a little more for us. what can you tell us? >> well, kelly, also in a separate ak it looks like some news on google and yahoo. an 8 k could goel says it's going to provide yahoo with search advertisements through google's add cents for search service. google is going to pay yahoo is percentage of the gross revenue of the ads displayed on yahoo properties, also google could suspend yahoo's use of these
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services upon certain events. a relationship more a partnership here looks like being spelled out between google and yahoo. going to get more headlines as they come. back to you. >> what's more important here nick? is it that they sign up for partners and continue to press on the kinds of things we're reading about or is it that they sort out the executives including some of the talent drain they continue to see into it's got a long-term problem and short term. short term is that mayer can't hang on to executives. jackie reses was a star executive at yahoo. she led all those acqui hires. the long-term bigger problem is that yahoo is trying to make apps that people use. people use about five apps snap chat facebook. >> five total apps. >> really people use five all the time. really it's mostly facebook. so right now yahoo is competing
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with the field. so there are venture capitalists who have billions of dollars to invest on lots of apps and they can fail. yahoo is trying to put a few out. they put maybe a half dozen out a year and you never hear about them again they go out and they're gone. they have two apps in the top 100 on the ios store, one is ranked 64 that's yahoo mail another is tumbler which they paid a billion dollars for and it is way up in the rankings. >> we are getting word on their guidance. josh lipton rejoins us. what can you tell us josh? >> well, kelly you see yahoo stock heading lower in the after hours, one reason to be could be the guidance. q4 yahoo for gross revenue of 1.16 to 1.20 billion. the street in terms of gross revenue was looking for 1.33 billion. so a little light in terms of q4 gross revenue guidance. yahoo stock edging into the red here. kelly, back to you. >> thanks josh.
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it is down about 1.4%. mike, your thoughts? >> the ebitda guidance for q4 160 to 200 and i have the street looking for close to 280. they're really setting the barlow here. you have to wonder what are they doing. are they setting themselves up for as nick pointed out there's going to be a transaction or end game here. in the meantime they're saying we have a lot to clean up here. >> it's a mess. mayer shouldn't have taken the job. >> why not? >> i think because yahoo is not -- the problem they needed solving was one that she wasn't going to go in and solve. >> i would just argue with that a bit. wasn't part of the problem the culture and morale and didn't she -- i mean people do give her credit for turning it around. >> she came in and had a nice 90 days six months got people working there again and just the problems -- you buy the honeymoon idea. >> absolutely. her idea was supposed to go in there and like magically produce the next snap chat and like the analogy she liked to use is steve jobs. so steve jobs first came out
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with the i mack and that wasn't a big business success but told everyone it's a new apple and then he came out with the pichlt pod and it was can a boone from there. we haven't seen the i mack and definitely not the ipod. >> who would be the right executive for this company. >> >> that's a tough question. if you are buying into yahoo and want to own yahoo you're trying to own a legacy company that has profits based on the desktop web and hoping that whoever is running the thing is going to take that money and invest it in some new thing. just invest in something else. >> why do you think that that makes it so compelling to take it private. what is it that they need to accomplish outside of the glow if you will of public markets. >> they need to shrink drastically and then sort of -- well they maybe don't need to go private, they maybe need to have a ceo that can have a more kidded conversation with investors, saying we're going to invest it in this plan. maybe it's more of these -- a nice optimistic thing for yahoo is they have the sunday they are
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going to have a football game on, the nfl, that's cool that's not what mayer went there to do and maybe millions of people watch the jaguars play the bills on sunday and that's yahoo's future. >> it's an nfl and juggernaut. speaking of getting candid to your point about guidance mike maybe that is what's starting to happen here. yahoo shares under pressure. we will have more still to come including a disgruntled shareholder saying ceo marissa mayer needs to go. apple announcing it's music service has 6 million users. kevin o'leary will join us next. you may think you can put off checking out your medicare options until you're sixty-five but now is a good time to get the ball rolling. keep in mind medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans
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welcome back. we will start with an earnings alert on intuitive surgical. >> what we have here shares right now looking like they are up about 6.3% on 46,000 shares worth of volume. the company reports earnings per share of $4.47 that beats the average analyst estimate of $4.23 a share. also revenues coming at $590 million, $580 million was the average analyst estimate here and again shares are again up by 6.3%, 46,000 shares have traded and over the past year to date period the shares are down 11% over the last 12 months 2.5% to the down side isrg shares moving albeit on relatively light volume in the after hours trade. >> dom, thank you very much. it's been more than three months since apple launched its music
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streaming service. tim cook spoke at a technology conference last night where he gave intel on how many users the company is seeing. >> apple music, i know -- i'm finding personally that i am discovering a whole lot more music than i was before because i was getting into a rut listening to that same old -- those same old songs and so i think it's -- i think it's fabulous and honestly to have you know over 15 million people in there and people just started falling off in the beginning of the month i'm happy about it. >> joining us now is someone who is not so happy about apple's music service, cnbc contributor and shark tank investor kevin o'leary. welcome back. when you first brought it up on this program how dissatisfied you were with apple music, has the experience improved at all for you or will you believe the numbers? >> i like the fact that apple
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has the most content in streaming, it has more albums and more content than spotify but does, but the product doesn't work. if you have a large owned category, i'm a hard core music guy, i stripped all my music off carson dalys to high resolution mp 3, i have to convert it to apple's lesser quality format which i am not going to do after having invested all that time. plus when you try and take owned music that you have an itunes and merge merj it with their streaming product it doesn't work. i'm not saying it doesn't work well i'm just telling you it doesn't work. >> but if it doesn't work for kevin o'leary but it does work for -- >> kelly, i can't make -- well look, i mean i'm a user i pay a lot of dollars to apple and i am a support of their products. the amazing thing for me with apple, i don't own it anymore. it used to be a 5% weighting for me and i don't make these
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decisions emotionally. it didn't make the cut when ousa went through the rules-based test of apple's plans sheet. too much volatility, decreasing margins, increasing leverage. i can't believe that i'm telling you this, i don't own it anymore. it's not a good enough company to put in ousa. gone. >> it's not in a fund. do you own at all personally anymore? >> no. my major holding are my etfs. i don't own it anymore. i'm not telling people to buy the etf. this is what i do. there's other companies with better balance sheets that hit the mark. j and j, for example, microsoft, you know at&t, verizon all replaced my apple holdings and it happened automatically. >> would you buy the ferrari offering tonight? we're talking about a $53 price that's been floated out there, we could get the pricing any moment now. >> never. i mean think about what's going on here you're trying to tell
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everybody that this car company is her maze her maze is a 35% growth margin on sales, this company has 10 to 14. this is going to be another tesla, spoke smoking hot and gravity is going to hit it. people are going to realize why do i own a car company and tell myself i should pay 15 16 times multiple when the rest of the indices trades 6 to 9. this makes absolutely no sense. it's like harley-davidson is not really a motorcycle company it's a brand. >> let me ask you you have a new prime minister. what do you think of justin trudeau? >> he is started off the process extremely poorly and ended up after one of the longest elections in canadian history as one of the best campaign stump speechers ever. he was a metric around just get rid of harper, that happens in politics, anybody that has been around for ten years people get kierd of he happened to be at the right place at the right time. >> he's not bad on the ieds.
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look at the drudge report the photos that they ran today, main thing it's about this heartthrob showing some old boxing picture of him, i guess. seriously he is now steering your country which is going through a recession and a very difficult environment. is he the right guy to do it? >> it's not like my daughter, i'm trying to explain this this guy is going to raise taxes that's bad the reason i left canada in the first place was tax was too high back in the '90s and she says to me but, daddy, he looks fantastic. go figure. >> we will leave it right there. kevin, thank you. better let us know if you start to listen to apple music or buy the shares. kevin o'leary. time for a cnbc news update let's get over to sue herrera. sorry it's just me this time, sue. >> it's wonderful. russia and the u.s. signing an agreement designed to minimize the missing of midair collisions as both countries carry out air strikes in syria.
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peter cook says the agreement does not include zones of cooperation or sharing of target information. russian president vladimir putin says russia's air force has been successful in destroying the enemy's infrastructure in syria. he addressed newly appointed officers at a kremlin ceremony today. vice president biden appearing at a forum honoring walter mondale who was jimmy carter's vice president. they both said there's one rule in the office of the vice presidency, don't criticize your boss in public. they both talked about how the ofts has evolved praising each other for how they have shaped the office. krissy chris is making another bed for elected office he is running for congress in 2016. the one time republican governor from florida is running as a democrat in a district that would kplu saint peters burring if the new congressional map is approved by the florida supreme court. back to you. is time running out on
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yahoo's ceo marissa mare after another disappointing quarter? >> and what's the better foreign policy when it comes to client and russia? donald trump's negotiation to expect or carly fiorina's negotiation through strength. we will gate their positions coming up.
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welcome back. here is a look at how we finished the day on wall street. the dow gave up 13 points with utx and ibm going in different directions. it was roughly flat. the s&p was down 2 points the nasdaq was down 24 and lost a half a percent. we have just heard from yahoo and chipotle both in the red, yahoo down more than 1% chipotle down more than 2% one of its first earnings misses in over a year. chipotle's earnings just got started a few minutes ago. we will bring you key headlines from that call. keeping an eye on those yahoo shares. missed on earnings as you can see there. the missed just adding to the list of west coast for the company, art jackson, a yahoo shareholder who has been saying mara meyer needs to go. i have guessing the latest earnings figure these sis there, but what is it or who is it that's needed for this company right now? >> i think marissa was a
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wrong hire from the start. she did something smart in her first year she hired enrique dais de castro and explained it by saying it was a bad fit. the board of yahoo and shareholders need to do the that i am thing with mayer now. there are other people that could lead it, chris cox i would love to see who is head of product at facebook jim land zone at cbs interactive. so there are high pro vile hoe profile leaders out there, about a change needs to happen now. >> mike. >> eric cox or lanzone or something like that comes in. what are they going to do? if you are in their shoes what would you do? you are an investor but what would you do? >> well the biggest -- one of the biggest problems i have with mayer is that she increased head count after she came n this is a company that's got more employees than facebook it's got -- if you believe them is
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12,000 employees, i think it's probably more than that. it should be something like 4,000 or 5,000 employees for the amount of revenue they are doing. someone has to come in and take a hatchet to it. this is th isn't rocket science, we can't leave this for the private equity guys who want to buy this on the cheap. someone can do this in public but they have to cut costs. the two crown jewels that yahoo has today are finance and sports and they are woefully underinvested in. someone has got to cut focus -- focus on things like style blogs and katie couric reading the news and a bunch of celebrity editors like joe z and bobby brown, get rid of all that stuff. focus on what matters. milk the business for as long as you can, just like tim armstrong did at aol, focus on finance and sports and i do think there's also a play or ott if they get new management. >> you forgot one crown jewel and that is the 15% stake in alibaba and the fact they are
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going to pin spin it off and that could create shareholder revenue in a tax efficient way. the bull case is that there is still value there. >> absolutely. sara this is something they should have done five years ago. why it's taken marissa mayer three and a half years wandering around and talking to the same investors it escapes me. they should go ahead and spin off not just the alibaba stake but the yahoo japan stake. i think the opportunity is really what's left and that is the core business which has been forgotten about which trades at almost zero value today. but it still is maybe a billion dollars a year in ebitda. you take the head count down to 5,000, 2 billion a year in ebitda employ a multiple on that you have a real business there. >> eric jackson. should the next president take a hard line with russia and
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china or work towards a compromise? that's the rift between two republican candidates carly fiorina abdicating for a stronger u.s. military while donald trump saying negotiation is the key to success. we will debate who is right next. r! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is?
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we are just eight days away from the gop presidential debate on cnbc. the latest poll numbers by nbc news and the wall street journal, front runner outsider donald trump remains the top choice at 25%.
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still in the pack former hp ceo carly fiorina. donald trump believing in negotiation was russia and china while carly fiorina has been abdicating a stronger u.s. military front. here to hash out both sides, peter november row, he is also author of kounching tiger what china's mill tar richl means for the world and roberts dietz a professor at george mason university and senior counselor to the director of the cia. welcome to you both. appreciate you joining us. >> hello. >> peter, i love the giant closing bell logo behind your bell as well. >> let me just say -- let me just say thank you to the city of arlington and at&t stadium for making this happen on the road. >> listen, while we have you, you are a big advocate of the position that donald trump is taking which appears to be that he would be comfortable speaking w negotiating with putin and
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with china directly. why do you think this is going to lead to a better outcome for foreign policy for the u.s.? >> let me give you the big picture here. particularly on china with donald trump. he is not a johnny come lately to that issue. he has been speaking about this issue for over five years about china's unfair trade practices, concern about the rising mill tarrism and donald trump a lot of people don't know this he is probably -- i would say he is the most well read of anybody on this issue. he is a very sophisticated analyst when it comes to this issue. number two, i think that if donald trump makes it to the general election, he will win on the china issue simply because he will appeal to one constituency that the democrats absolutely have to need and that's the reagan blue collar democrats who have just been getting hammered by china. he is the guy who is going to do this. what's his policy?
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>> yes, he is going to negotiate because that's what he does and does well, but he is going to negotiate with strength. the first thing he is going to do first day in office is he's going to brand china is currency manipulator, something that obama promised in '07, never d but what that will do is basically force china to the bargaining table to get a fairer deal for the american people domestic manufacture years and the american worker. >> robert dietz, carly fiorina in the last debate said she might not even spoke with putin at all. why do you side with her on this? >> the international political system dislikes vacuums and every time that there is a power vacuum a country that we walk away from or ignore a bully like putin is going to step in. we saw this of course in the ukraine, we're seeing it now in syria. the notion is that one needs a
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strong military and that in turn will lead to negotiation. if you take for example, the work that president reagan did with president gore be chof that arose because of the strong military posture of the united states. all of us favor negotiation and it works very well when you are working with our allies in western europe for example, or our allies in south asia but it doesn't work with bullies. >> mike. >> professor dietz, if putin is such a bully, i have a question for you. do you want to see putin go away? is that the end game here? >> that's certainly would be perfectly fine it he went away what i'd rather see is see him tamed. >> if i might say something here. the big difference between donald trump and everybody else everybody else in this race on either side is that putin and
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xi jinping will respect and fear donald trump just like the world reflected and fooerd ronald reagan. that's the other thing that trump has in common with reagan. i don't blame carly fiorina for not want to go talk to putin. he would overwhelm here. nobody is going to overwhelm donald trump and the idea that you would not negotiate with putin or xi on these kinds of issues when you have some common interests and some competing interests, that's just wrong. >> sara. >> that's why carly fiorina is not going to make it. >> peter -- >> bull all respect, ms. fiorina has negotiated important arrangements all over the world. >> she has off shored all our jobs to china. that was a great negotiation. that's what trump is going to hit her on. >> go ahead, rob sneert to be sure if afghanistan decides to bring in casinos, bars golf courses, then mr. trump's experience would be very useful. but the fact is that what's really needed is somebody with
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savvy business experience internationally and carly fiorina as ceo of houle let has that experience. >> gentlemen, thank you both. peter november row, robert dietz appreciate t the next republican debate will take place right here on cnbc. next tuesday october 28th -- wednesday i should say, coverage starts at 5:00 p.m. eastern time. what can mt. everest teach you about leadership? we will speak to a woman has scaled the mountain and skied the north and south poles. on the next episode of jay leno's garage jay and his friends are pushing a news tank to the limit to see how fast it can go. be sure to tune into cnbc tomorrow night at 10:00 for the latest episode. wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast.
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welcome back. just getting word about the pricing of ferrari's ipo. reuters reporting it at $52 a share. the range was $38 to $53. offering 17 million shares. kelly joining us. this makes it one of the top ipos of the year doesn't it. >> i don't have the numbers in front of me but it is a more
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enthusiastic and more exciting since alibaba. $52 a share, that is the price. they had that in mind and they wanted to make sure the market didn't go sideways in the interim. there was a call at 4:00 and 52 was the target. and 53 would have been above the range and excitement about the deal but i'm told the company decided to go more of a cautious course in hopes of having a first good day in the public tomorrow, not seeming like there they are too ambitious, i guess. and they've come out at 52, which is good in this climate. >> we can expect to see a lot of shiny cars out here tomorrow. thank you, kelly. >> we'll continue to follow it for you. our next guest is a history making mountaineer, climbing the highest peek on each content, including mt. everest.
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now she's documenting her travels with on the edge. welcome to the program. it is good to have you. >> thank you. it is good to be here. >> would you buy the ferrari ipo. >> yes. absolutely. i would also like to buy a few ferraris. >> that is what most people have in mind. but what you have accomplished is outstanding. was this a personal challenge or a time of personal crisis what was the motivation here and what have you learned? >> when i was younger i was intrigued by the story of the ant arc tirk explorers and mountaineers and i would read books and watch film and i had my second heart surgery when i turned 30 and after that the light went on and i said if i want to know what it is like to be an adventurer in the crazy environment, why not getting out and doing it. if other people can do it then why can't i. >> with the additional limitation of your heart surgeon and other medical factors?
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>> yes. >> so when you set out to do this how scared were you? and the reason i'm asking about all of this is there is so many people who wonder what their own limits are and your personal experience is wondering where those limits are? >> well i think -- what helps me is i use fear to my advantage. people say how do you do this without getting scared and i don't. i'm scared a lot. and i use fear to my advantage in that can keeps me awake and alert and on my toes so i think it is a useful tool. >> you have an nba, you work for goldman sachs and in the medical device and pharma industry and for arnold schwarzenegger how did you come to this? >> i've had nine lives. i think life is short. it is good to get out there and try different things. and i've enjoyed different aspects. and i wrote the book on the edge and all of the lessons i've learned from my career
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whether it was medical devices or goldman sachs or in politics or in the extreme environments, they are all in the book. so that is one of the reasons i wanted to write it. >> what is your message to people who feel they are stuck at the office 9:00 to 5:00 these days. what advice would you have. >> i give them advice that i talk about in the book when you are in the environments you cannot control, kplasencely will -- comeplacency will kill you. constantly pay attention to what is going on to you and adapt to a landscape constantly shifting and changing. >> and something interesting about being scared to your advantage, have you run into people that you have been advising or speaking to that can't channel that properly and what advice do you give to them? >> i think fear is okay. it is a normal emotion. when it becomes dangerous is when it paralyzes you. complacency will kill you. it puts you at risk.
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you have to act and react quickly in environments constantly shifting. >> when were you the most scared? >> on my second everest expedition and the movie came out and it doesn't always have a happy ending when people are up on the mountain in the storm, you have to make smart conditions when the conditions around are you far from perfect. >> advice we could all take. thank you for joining us. >> thank you for having me. >> allison levine. the chipolte conference call under way and the yahoo about to get started. we'll get you ready for the next hour of earnings conference calls right after this. ovies. well i wrote a few books did a speaking tour, i... i've been helping people plan for retirement. and i help doctors identify cancer treatments. is that all? i recently learned japanese... yeah, i was being sarcastic. i haven't learned sarcasm yet. i can help with that.
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welcome back. let's check on the names moving on earnings after hours. we begin with yahoo down 2% on the earnings miss. chipolte down 1.8%. and vm ware and isrg also. >> what are we watching. >> watching san disk tomorrow night. we're on deal watch there. a lot of deals happening. we'll see how this plays out. >> sara cocoa coling earnings out tomorrow and watching the canada dollar and watch the foreign exchange market. >> crazy how it didn't go down
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with trudeau getting it. because everybody was short. >> that does it for "closing bell." "fast money" begins in moments. what is on tap. >> we are all over the conference calls and the vm ware out with earnings and we'll see what they have to say. >> over to you guys. >> "fast money" starts right now. live from the nasdaq markets overlooking time square i'm melissa lee. your traders are pete brian, kelly and steve grasso. three big stories we're following for you tonight. yahoo, volatile after hours on an earnings miss. guidance coming in light. that call underway. and we'll bring you the headlines from marissa mayer. and chipolte stock is falling. we have a top ranged analyst and he will weigh in on what it could mean. and new details on the ferrari ipo moments ago, and what you need to know about the luxury carmaker ahead of the first day of trade. and we start with yahoo. let's get

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