tv Power Lunch CNBC October 30, 2015 1:00pm-3:01pm EDT
do you think i'm going to give you content? content is movies. not necessarily -- >> given the icon and. great having you. look forward to seeing you back. >> oh it's fun. >> few hours left and the best month in four years. along with sire ra eisen from the new york stock exchange. who said october would be scary? it's setting up to be the best month for stocks in four years. the major averages up 9%. but will these gains persist? over the next few months. has the year end rally been called into question? will october's gains take the steam out of it? is in the meantime, shares of valiant tank, the pharma giant making a major move to protect its business.
and one of valley's biggest defenders is out defending. and u.s. special forces heading to syria. will this add more uncertainty and volatility to the oil market? before we tackle that one, let's go down and touch base with sarah eisen. >> one stock everybody's watching today. shart of valiant pharmaceutical. down more than 60% in the last three montes. the company fighting defending its business practices of the. and also today. one of valiant's biggest investor s ackman, olding a cal to hold his stake. >> -- with the specialty pharmacy philidor. activities raising questions about the company's business practices. this comes after pharmacy
benefits manager cbs care mark, express scripts all said last night they are terminating their relationships as well. citing non compliance with the terms of his agreement. and last week saying it acquired an option to buy the specialty pharmacy at the end of 2014. valeant said 40% of flowed that the channel. and a lot of investors questions valeant's decision to not disclose the situation earlier. questions still remain. and of course many of those questions also discussed today in an hour's long presentation that just ended by big valeant investor bill ackman. >> and now with that stock down 40% over the past couple weeks,
one of valeant's most high profile investor, aforementioned bill ackman, titan. we must always call him a titan. >> one-half of the billionaire brawl. >> you have been looking into this. tell us. >> it's been bill ackman's special today. another four hour discussion that just ended a moment ago this time of the investigation of the valeant. ackman has reason to care. his 21 million share position which is his fund's second largest, has lost him an estimated $1.7 billion on paper so far. and he has every interested in defending the company. taking stock of the issues facing valeant. ackman says he has faith it will prevail despite risks and historic underinvestment in public relations and lobbying. near term he said valeant will prioritize replacing its lost 6%
of the revenue lost with that piece of it. and finally we'll continue to run a business that performs really well. ackman expressed faith in mike pearson, whom he described as exceptionally focused but gruff at times. and --. for instance, he was aware of the specialty pharma business when it invested in valiant originally. wasn't aware of valeant's $100 million option to buy philidor until just last week when the revs of of us learned about it. >> you said he lost on paper 1.7 billion. is that from his initial investment or the peak of the
stock. >> that is taking both combined. he gave us the average purchase price of his two major investments. the original, you know, $19 million share investment, something of that order. and then bought another 2 million shares last week. he gave us the average price and based on today's price. >> 1.7. if i said million i meant billion. i get them confused sometimes. >> and that's obvious going to change. and that's on paper. he hasn't sold -- that's on paper. >> if it's friday it must be rig counts. and that is what we have the baker hughes weekly north american rig counts is out. the u.s. rig count for oil rigorous, oil rigs, down 16 to 578. it is also at that level down
1,004 rigoros from the same tim last year. this represents the ninth straight week of declines for oil rigs. although we should point out like we often do that oil production still remains close to record highs in this country. but we do see more rigs coming offline right now. in this case down 16 oil rigs u.s. to 578. >> we also see the price of oil almost up a full percent above 46. also in the news, u.s. special forces are headed to syria. will have add new volatility to the price of the market? jackie dangless has been speaking to traders about that. >> let's talk about what we're saying here. we're saying there is a limited number of u.s. troops on the ground in syria in an advisory role. and by all accounts traders are telling me they are really not
worried though it is offering a little support to oil prices. wti up about a percent. brent a little more but not breaking the $50 mark. they feel the rumors were in the marketplace so they are not seeing anything new here. it's different than the reaction to the russian air strikes because russian's involvement was seen as support for iran. and iran obviously in conflict with saudi arabia in terms of its stance in syria. and the saudi foreign minister was out this week reiterating that iran must accept the removal of assad as part of any solution in the serine conflict. so no change in the situation there. and approximate bottom line of the pits action here is u.s. involvement in this capacity is probably more of a stabilizing factor against isis than a disruptive one. but at this moment we have to see where this goes. back to you. >> and we're going stick with the oil space right now. exxon and chevron both out with their latest earnings.
exxon slid more than expected. chevron beat forecasts but then slashed thousands of jobs. gains for them today but there you see year to date, i guess. no that's a 12 month thing. having a good october. both are up double digits for the month. morgan brennan breaking it all down for us. >> so basically i can sum up earnings for these reports like this. you have upstream operation, oil and natural gas production, continuing to hemorrhage money amid low energy prices but downstream, this is the refining operations, posting big profit growth because the boosting margins. so that what makes exxon and chevron less risky at least relative to other energy sector stocks. looking at chevron specifically we hat a beat on the top and bottom lines. upstream eked out 59 million profit. that was down from 4.6 billion
dollars a year earlier. a huge drop there. but downstream earnings grew 59% to $2.2. chevron's cap x budget will be 25% lower in 2016. that is a steep cut for such a big company but with more spending reductions e expected in '17 and '18 as well. as part of that it will cut as 6 to 7,000 jobs. the dividend which is almost 5% has been a big focus where chef ron is concerned. on the conference call, executives saying the, quote, first priority is to maintain that pay out, insisting there is enough cash flow to cover it through 2017 at which point it is expecting 70 dollar crude oil. and it's already sold 11 billion assets since last year. it expects to acquire another $10 billion in proceeds through 2017. so they are up almost 2% on the day on that beat.
>> and what is the word on exexon? >> exxon we saw a beat also on the top and bottom line. here is how it's holding up. production earnings plunged 78ive 79%. a loss in the u.s. division. refining and chemical operations doubled to $2 billion. i hasn't announced the steep cuts we saw at chevron but the company is focussed in reigning in costs as well. quarterly cap x was about the fifth lower than a year earlier. but id did spend more on dividend. the objective is to pay a quote reliable and growing dividend. that is about 3.5% right now. however the top u.s. oil company has been prudently tapering buy backs. so purchases are expected to remain for the current quarter. and shares for exxon are up about 1.5% as well. and tyler, exxon and chevron are both echoing what we've heard from other oil companies that
have reported earnings this week. and that is the fact that they are getting ready for oil and gnat gas prices to stay lower for longer. >> a big revenue beat for exxon. about $4 billion. that is not chump change, is it. >> no and that's the benefit of these integrated oil companies. the upstream and the downstream. if one's well, the other maybe not so much and vice versa. >> thanks so much. appreciate it. >> keep an eye on the markets. indices heading higher. we're getting ready to close the books on october and it is shaping up to be a banner month for stocks. the three majors up. will it continue into the remaining two months of the year. >> the million dollar question. about whether or not i can predict where the markets are going to go. i cannot but i can tell you historically what they have done in certain situations in the past. so take a look at this again. as we talk about these 9 to 10%
moves higher just in the month of october, it almost made you forget about all of that volatility and turmoil in august and september. on a year to date base we're still negative fractionally on the dow. s&p up about 1.5%. the nasdaq leading the way higher. large cap tech a big parking t that. what else is moving in the markets here. the dow and s&p are on track for best months since october 2011. four years since moves like this. and the s&p just to put in context has only had 12 monthly gains of 8% or more going all the way back to 1987. as for what's moving and driving things, material stocks, technology stocks and energy stocks. all of these guys helping to propel those gains. and they are sensitive to the economy. so perhaps a good sign. maybe the bulls are a little more comfortable with that side of the story. and then of course here will stocks end 2015 positive? request. >> well october has gained 8% or
more four times since 1980. in those four occurrences, the market is up three out of those four times. the average gain 4%. so again some different times. and of course tyler that is part of the story for the rest of it. going to powerlunch.cnbc.com for some other stories to look at. >> thank you very much. shares of boeing's biggest rival airbus soaring today. both higher today. that plane maker now gearing up to boost production. phil lebow with the details. >> the reason air bus shares are moving higher in part because of raising production but also recording better than expected third quarter earnings. the numbers way better than expected. most were expecting them to earn 50 euro per share. they earned 70. and you can see the increase there. core operating profit up 12%. and that raised production of --
raising of production guidance is the other reason that the shares are moving higher today. look where they are when you talk about their bread and butter, a-320. that is the narrow body, the counter to the 777. by 2015 they are going to be up to 50 a month. and today airbus announced they are going moving up to 60 a month. so 20% increase in production by 2019 and by the way, some of those will be coming from the company's new plant in mobil alabama. all of this raises the question, where are the backlogs for air bust versus boeing. and they are getting rather tensionive, looking autoeight nine ten years. airbus now up to more than 6700 planes on backlog. boeing, 56 in terms of backlogs.
and the narrow body is the bulk of the backlog for boeing and air bus. take a look at shares. a lot of people are i now talking about whether or not we're looking at the possibility over the next two years of perhaps a draw down in terms of orders. because really don't have many new models coming on and such extensive backlogs, will there be more appetite out there for airlines to add even more in terms of orders. that is one of the things people are talking about today when you look at boeing and air bus. >> could be an inflection point. tablet troubles. new data showing shipments plunging. what it means. plus congress narrowly avoiding a the government shut down this week passing a two year budget. but what's in it? you're watching cnbc's first in business worldwide. sure, tv has evolved over the years.
brighter. bigger. thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. welcome back to power lunch. iech sarah eisen. shares of colgate palm olive taking a hit. revenue came in below forecast. shales polling for the fifth straight quarter and colgate warning of continuing. shares of decker outdoor, the company behind ughs are soaring,
up almost 9%. they makes ughs and other footwear. it beat on the top line. gave an up beet four year forecast. and weyerhaeuser also up a full%. thank you sarah. the bill in the house has passed. heads to the white house. but what exactly is in it? eamon javers is in d.c. for us. what dune. >> we're waiting on the president to actually sign the bill. the key piece, suspending the debt ceiling until march 2017. that means that president obama will not face another debt ceiling fight in his presidency. it also means the new speaker
paul ryan won't have to deal with this headache until he's got a little mile blg in the tank here. also about 80 billion above the sequester limits. the sequester itself will officially stay in place long-term. and also long-term entitlement reforms as part of the deal. and a couple of ways they are going to pay for this entire thing. including reduced crop insurance subsidies for farmers. authorized oil sales out of the strategic petroleum reserve. and this one is interesting. making it easier for the irs to audit partnerships including private equity and hedge funds. a lot of different pieces in this bill. and as i say we're waiting on the president to sane as expected some time today. >> now to syria. word today that some u.s. special operations troops will be inserted into syria, if they are not already there, to act in an advisory role. what do we know?
and what does it mean? >> well what we know is that white house press secretary josh earnist is briefing reporters right now at the white house. he was asked how many troops specifically will be on the ground in syria as part of this shift in policy? he declined too hans that, citing ongoing military security about what exactly they are going to be doing and where they are going to be and who is going to be there. but earnest at pains today to say this is a shift in strategy. they are emphasizing the things that are working in syria and deemphasizing the things not working. but interestingly we are not going to hear from the president of the united states today according to josh earnest. the white house secretary saying the president has spoken previously on syrian policy and will not speak on this today. a lot of statements that he did not want to and would not put u.s. boots on the ground in syria.
obviously circumstances on the ground as changed and u.s. policy as well tyler. >> dominick chew now. >> -- to require pmc-sierra. this just four and a half hours after pmc sierra announced a higher price agreement from sky works. all cash bid. went from 10.50 to 11.50. and investors anticipate a possible bidding war here. pmc shares touching highest levels since may 2006. so those shares essential a focus today. >> lot of activities in the chips. tablet trouble. new data showing shipments plunging. what is behind it and what does it mean for apple and its rivals? speaking of which, what a month apple shares have had. up about 10%, doing a little better than broader s&p and dow. power lunch will be right back. you pay your car insurance
premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year.
there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. welcome back to power lunch. i'm sarah iez p. the pain continues in the tablet market. research firm ibc just reporting new numbers and they look pretty ugly. josh lipton has the story and the impact. josh. >> well sarah the tablet market has now been in decline a full year according to idc. q 3 was the fourth straight quarter where tablets suffered a
drop. 48.7 million shipped worldwide and that was a decrease of 12.6%. the top three makers are apple, with 23%. samsung with 16.5 and lenovo third at 6.3. so why are tablets under pressure? >> there's been cannibalization with smart phones. we know consumers also don't upgrade tablets as routinely. and as idc points out with markets like north america and western europe well past 100 million tablets per region now, opportunities for growth are getting harder. still tim cook remains confident in his tablet noting improvements in software and the product's potential in the workplace with the soon to be released ipad pro it does not look like a saturated market cook told me.
though the ipad had become a much less critical device for the tech giant, now counting for less than 10% of total sales. >> thanks very much. to the bond market and rick sanitiy santelli tracking the action. >> let's look at the charts as we close out the last business of the month. two year, wow a big pattern. what's fascinating is last friday we settled at 64. up nine. a good chunk of that, of course ebbs and flows based on whether there is a fed meeting or not which really encapsulated the difference between this week and last week. tens are up about ten basis point, 11 to be exact at 2004. dollar index was at 9305. 96.80. big move. the s&p 500. 1920 to 2092. so you can clearly see we've had a lot of action. and all the patterns pretty much
look the same. some logic to the markets. >> rick, thanks very much. we're going to pick up right there. who said october would be scary? it is setting up to be the best month for stocks in four years. the major averages up 9%. but the question from here, have some of these big gains taken any steam out of the year end rally? we'll discuss it next on power lunch. we thought we'd be ready. but demand for our cocktail bitters was huge.
i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey. will you be ready when growth presents itself. realize your buying power at open.com.
hello everybody. i'm sue herrera. here is your cnbc news update this hour. the u.s. will send less than 50 operations forces to syria to serve as military advisors in the fight against the zlukt. the troops will operate in an advise and assist capacity. more than 300 nigerians held captive by boko haram that were rescued by government troops are now being treated by the red cross. many of the former captives have medical problems and all of the children there are receiving
malaria shots. from chrysler, about half a million cars are being recalled. moisture with build up disabling the control module disabling the system. from years 2003 and 2004 are being recalled because air bags can deflate for no particular reason. careful of the kiss cam. steve ballmer and mark cuban ending up on the kiss cam last night. the two have been feuding over a particular basketball player. but both appeared to be having some fun being on that video board. you just can't beat steve ballmer sometimes. that's the cnbc this hour. >> that clever operator behind that kiss cam. >> you never know. >> thank you nasdaq has been the
star performer. the biggest winner of the three biggest averages. bertha coombs. >> yeah. the big cap tech is really what's led the nasdaq's rebound this month. baidu surging about 12%. but it is among the china stocks that though still in bear market territory is up about 30%. a lot of them look like that. a big rebound amid consolidation. also a big rebound in chip stocks. pmc sierra, and sky works and semi. and the big gainers have been the nasdaq 100 caps. helping that gain 12%, microsoft the biggest contributor. amazon and apple. take a look at microsoft. the real standout. biggest monthly gain since october 2007 and now just about 5% from its all-time high back
in 1999. which is helping to move the nasdaq 100 very close to its all-time high surpassing that y 2 k high. >> thank you. it is not just u.s. markets that have been strong. the rally seems to have really spread around the world. >> let's start with asia which was a source of concern over the summer given the free fall in exotic stocks. fwau but a dramatic turnaround. the hong kong stock market up 9% or so. what's changed? well a couple of things. one is investors seem to have become more comfortable with the china story. yes it is slowing down but it is not collapsing. second the central bank announced a series of rate cuts last week. it also suggests china will continue to take this proactive approach to stimulating the economy. and the same goes for europe.
just take a look. ecb's mario draghi fuelling markets with the strong commentary. we saw this ecb rally in europe. france, u.k. spain all higher. and all of these countries of course benefitting from a weaker euro. the euro breaking below 110 this yeek. a critical part of europe's economic recovery. and with economists expecting further easing to be announced in september, analysts say we could see the euro heading lower. one of the things that could fuel markets in november and december. sarah. >> all about central banks. >> as seema mentioned, october on track to be the best for stocks in about four areas. have the rapid gains taken the steam or some of the steam out of any year end rally? joining us to answer that
question is my guests. steve i'll start with you since ush here. you say we could still get a year end rally. traditionally as the strong period because of accounting and taxes and window dressing and other fun things going on. >> all we've done is call back what we lost in august. we're basically flat for the year now. and we think we're now finally entering a period of probably sustained expansion in the averages probably up through the end of a next year. >> you are predicting 2200 on the s&p 500 end of the year. >> 2200 this year. 2500 end of next year. we're going to have big earnings recovery next year. lap the oil situation. you have the fed hiking in december almost certainly at this point. that is good for the bank. that is a big sector of earnings in the s&p. bio tech stocks coming off lows in and out but the big pharma
deal announced earlier this week. we think there is a lot of runway left in the averages through next year. >> let's dive deep entire the why? as steve said the october rally made up for what we saw the swoon in september and end of august. wasn't that selloff due to the fact that global growth was disappointing and the federal reserve was about to raise rates? has anything really changed? >> no it hasn't. count me in. i hope steve's right it sounds great. but i think there are some warning indicators that one should pay attention to. you just pointed to one right there. i would also say that u.s. economic activity, you know, we had the gdp number yesterday that wasn't great. consumer spending today wasn't great. labor reports in the month weren't great. data points are softening from the fall and arguably the fed -- the data is getting worse can the fed is in better position to raise in september than they may be in december. i'm not saying we're going in
recession or it bears watching will they raise interest rates in that environment come december or does all of this -- you know, their words have power and were they just using them to talk the market down off a speculative bubble a couple of days ago? >> or do higher interest rates necessarily bode poor things for u.s. stocks? push back on this idea steve from michael. >> the numbers yesterday were quite good for the economy. all we really had was a soft patch because of the slowdown in the china. but the other numbers in the economy are looking pretty good. organic 3.5% yesterday. a good consumer sentiment report today out of michigan. we think the fed is absolutely going to go. they were worried about china in september. china looks like it is soft landing. i think they pretty much signalled they are going in september. and that's actually -- those first few hikes are good for earnings in the u.s. >> we'll see what happens. thanks to you both for opposing views on the markets. and to your steve and michael
good to see as you well. and go to power lunch at cnbc.com right now to see how they're playing specific picks. student loan debt was a big topic at this week's republican debate. and plus the dean at the top business school, how to keep his students from being buried under a pile of debt. when power lunch comes right back. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
♪jake reese, "day to feel alive"♪ yup, we're constantly making thinkorswim better. here at td ameritrade, they're always working. 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!
year. key corps is buying first niagara financial for $4.1 billion. that creates the 13th biggest u.s. bank. and first solar is shining today. up nearly 10%. beating the streets on earnings and revenue. and new york mets stock. pour performance the previous five years but quite a good record this year. there are four other stocks in the s&p like that. and you can read about them on power lunch.cnbc.com. >> shares of sun edison down today. after kelly evans asked hedge fund giant david temperatupper the rumor he was in the stock. >> there was some rumor you were going to come on talk about it.
would you pick a sun edison? >> you know people probably smoke a lot of marijuana out in your viewing audience and people on twitter. because i don't understand where stuff comes from. i've never talked about stocks on this program. we haven't had any big positions in my book for a year. i just was -- i mean, really truly. there must be some really good ganja coming into the country. >> there you go. kelly evans joins us now from carnegie mellon. >> oh tyler. hello from pittsburgh. yes. and david tepper was here this morning for ground breaking of the tepper quadrangle. a key part of the carnegie mellon going forward. i'm joined by the dean, bob damon. and i won't ask for your stock picks here bob. but what's interesting is the influence that the huge amount of money tepper has committed is
having on your ability to grow an mba program. a subject which is a big topic for power lunch viewers. how are you going to set this one apart from others. >> our mba is differentiated in a murm of different ways. our program and our students are outstanding in terms of analytical skills, their ability to solve problems, using analytical methods, very strong leadership and communication skills. and most importantly here on this campus and i think what really differentiate this is school from many others is our connection with the rest of campus. our students have the ability to work alongside and with students from computer science, engineering, fine arts. which is really what they are going to be doing when they leave school anyway. so we give them that opportunity here. so that really creates a unique experience for them. >> and not just for the students look at some of these.
what's the significance of this kind of interaction? >> as you know technology is changing business rapidly and it's having an effect in many ways. it is really, sort of, erasing industry boundaries, if you will. and changing the definition of what a competitor is. our students need to know how technology is changing business and be prepared to deal with that when they leave this program and really manage in a very dynamic 21st century business environment. >> tyler. >> with a couple of quick questions. number one is, what is the most popular course at your business school? or maybe what is the most popular new course that would be different from, say, five or eight years ago? and second, is an mba still worth it? >> most -- there are a lot of popular courses. we have courses in corporate restructuring is quite popular. it is a course that i teach actually. business analytics is a course
that's quite popular. we also have courses and a whole program around leadership development, interpersonal skills, which are extremely important for students over their four year career. >> and in as an mba worth it i would say absolutely. the r.o.i. on an mba is quite good in fact. our students they double their salaries relative to what they had when they came into the program. the r.o.i. is quite substantial. they have a payback period of maybe three years. stuff find the right program though. the one that is right for you. and you shouldn't focus on rankings necessarily. you should really find the one that's best suited for what you are looking for. >> all right. that's perfect answer. go ahead kelly. >> yeah. ty, go ahead if you had one more question before we wrap it up. >> i'm curious.
you talked about data analytics and we've spoke on the several other deans of top schools like yours. and they say that one of the areas people are increasingly interested in is the whole field of big data and how to use it in business. i really can't think of a place better suited to do that than a place like carnegie mellon. am i right about that that data analytics is a growing and more important field than ever before? >> you are absolutely right. data is prominent throughout business. you need to know how to harness the information in data. you learn that here this business school. and being part of kangy melon creates opportunities for students to work across campus with students in places like machine learning and statistics, to really learn from the very best. it is important and will remain important. >> thank you so much, bob damon, the tepper school of business.
and we'll have more with our interview this morning on closing bell. that is coming up in just a little bit. and you will get a look at a couple of drones and snake bots too. >> oil prices holding steady despite sending forces into to syria. will this move have any impact? we'll talk about that and more when power lunch raurns. awe believe active management can protect capital long term. active management can tap global insights.
sports freaks. x1 from xfinity will change the way you experience tv. welcome back everybody. i'm tyler mathisen with this hour's power points. one, stocks higher today with the dow and s&p on track for biggest monthly gains ever. u.s. oil drillers cut rigs for a ninth consecutive week. cut down 16 bringing the total rig down to 578. and micro semi requiring a proposal to acquire pmc sierra just hours after they announced a higher price agreement with sky works. >> the republican national committee is quote suspending end quote its partnership with
telemundo for a debate in houston next february. in a letter to the network reince priebus says it cannot continue to work with nbc on the debate without full -- on our campaigns. accusing cnbc of acting in quote bad faith by not following through with promises to focus on economic and financial issues. the letter says the rnc still plans to hold a debate on the scheduled day with national review remaining a partner. now in a statement, nbc news says, quote, this is a disappointing development, however along with the debate broadcast partners we will work in good faith to resolve this matter with the republican party, end quote. this comes as campaigns set a meeting without inviting the rnc to participate about the format.
>> the yield on the ten year note, a big jump this week as the fed seems to make a december rate hike definitely possible at the at least. with the threat of rising interest rates scare would be home buyers into the market? plus robert frank following what could be the most expensive art collection ever sold? >> it's five hundred pieces totaling over $500 million. we're going take a tour of the toutman collection and look at the $35 million pick sow. big art, bigger numbers coming up.
selling 18 homes? easy. building them all in four and a half months? now that was a leap. i was calling in every favor i could, to track down enough lumber to get the job done. and i knew i could rely on american express to help me buy those building materials. there are always going to be unknowns. you just have to be ready for them. another step on the journey... will you be ready when growth presents itself? realize your buying power at open.com sometimes they just drop in. always obvious. 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.
i'm brian sullivan. coming up on a power lunch, boots on the ground in syria. what you need to know about our operation in ha country and what it means for your money. plus could the fear of the fed spark a run on housing? and we haven't forgotten about making you money to end the week. a five star fund manager is here with her five star picks. but first, sarah how are the marketing looking. >> looks wlierk gaining steam here. the dow s&p and nasdaq are all higher. it is a pretty narrow trading range though on this last
trading day of the week and of the month and don't let this little action -- don't let it fool you because this is the fifth week in a row of gains for u.s. stocks. it is the best month for u.s. stocks. we're talking about the s&p and the dow since back in october 2011. in terms of today's leading groups we've got energies and materials on top. that's led higher by rise in commodities, specifically oil prices. a gain of 1%. bringing up the rear is financials and consumer staples. tyler. >> sarah, thank you. could be the biggest art auction of all time. the sale of the $500 million collection of -- >> alfred toddman, he towered over the world. he went to prison in 2001 as part of that price-fixing
scandal. he died in april. now his family and sutbyes are looking to revive the family. >> he loved women. lot more women than men. guess goes with the territory i guess. he really saw an artist as working on a problem. and that the work of art was the solution to the problem. some art has done exceptionally well. if you have a great eye. people have done very well over the years. but he really bought things he wanted to live with. things he loved. and he lived with everything. >> one of the most expensive could be this de kooning valued
about 25 to $35 million. picasso's woman seated on chair. and this mode glany could fetch $25 million. the sale is not actually until january so we won't know the total value until all of it is sold. >> his totally -- really concentrated in -- >> it goes back 3,000 years. he has every -- literally thousands of years. he's got antiquities. literally everything in between. buying since the 1960s. had access to the best of the best over 30 years. so every -- we showed the contemporary and the post war stuff. but it is a bit of everything. >> and he owned the auction house. >> yes he did. >> not a bad place to be.
>> if you want to be great collector. >> and his history is a separate story. >> for another day. >> happy halloween. have a great weekend. everybody have a grade weekend. brian sullivan is now along with the second hour of power. brian. >> thank you all very much. it is now -- well it is now 2:00 on wall street. 1:00 at the cme in chicago. as the dow heads towards one of its best octobers ever. hi everybody. happy friday. i am brian sullivan. lisa lee is at the nasdaq. all are on track to post their best month in four years. wow. we begin though on a more serious note. a major development in ongoing conflict in syria. the white house announcing it will send a very small number of u.s. specials ops forces into that country. in other words boots on the ground in syria. more from alina database no eamon javers.
my apologies. when i say small it is a very small amount of troops. >> less than 50 operators on the grounds. a stepped up pace of air strikes they say. josh earnest is briefing reporters as we speak. he's been at pains to say or not to say that this is a combat mission necessarily. they are still going to be advising local forces on the ground. he won't say exactly which forces those are for fear of tipping the u.s. hand here. he's also been asked about the russian involvement in syria. you know, the russians are actively conducting air strikes in syria. he was asked what happens if russia air strikes accidentally hit u.s. special operators on the ground? he dismissed that as the hypothetical. but he also said there's been other tactical and low level effects on the military to deconflict there. and also we've just got an
statement from brand new speaker of the house paul ryan on this development. here is what paul ryan is saying this afternoon. house speaker paul ryan saying this commitment of u.s. forces must come with a coherent strategy to defeat isil. otherwise we are likely to see the same results in the region. i look forward to reviewing the details of this announcement. so a fairly cautious statement from paul ryan. but we're also hearing from other members of congress says this new activity needs to be authorized. we can expect that debate to continue into next week. >> eamon, thank you. >> now let's bring in helema croft. >> i think it's more admission of the strategy of saying we just want a political settlement alone isn't working. >> these are incredibly brave people. but you are right. fifty. and what is is that going to do. because we have trained syrian rebels before.
and they were routed. >> and basically fife or ten left fighting after we spent all that money. what doid we do in. in that theater in 2007 so when you dpar this to the surge i mean it is really an antisurge strategy. it is really basically hoping you can get some type of the diplomatic settlement. but there doesn't seem to be a coherent military strategy for rolling back ice right now. >> increases russian activity as well. now this. what is going to be a outcome of syria? it seems like we're continuing to inch towards greater conflict. >> i look at the middle east and i say normally one war in the middle east with the arab israeli conflict. we have four active wars. and the russia active now, the doubling down is means it will be a nasty stalemate. so you have more and more refugee, greater casualty counts and the middle east looks ever more dire. >> should we be concerned about
saudi arabia? what could it do? it's already involved with yemen. it is not doing well because of the oil picture. if it goes into this conflict, what happens to the oil production picture? >> one of the big concerns we have is the financial cost for all of this to saudi arabia. they are burning through reserves at an alarming rate. running a very high deficit this year. and one stories we're following is there are signs there are members of the royal family who are not entirely happy with the strategy. so people are now talking about potential real leadership shifts in saudi arabia. the oil strategy and military campaigns is not sitting well. >> could this impact how much oil opec decides to produce or cut is it. >> ouchbt things we highlighted today if we have any type of situation where there is increased turmoil in saudi arabia, increased unhappiness with the policies that would be a potential path to an exit to
this market share strategy. not our base case but we watch very closely internal developments. president of that regime is the most important goal of the monarchy there. >> syria is not really an oil producer. i think they have one active field i believe it is. >> no it's a very small producer. >> 30,000 barrels a day. it is nothing -- so strategically how is it important? >> it's important because a the budgetary implications. but it is a stillover effect. isis sees syria and iraq as one battle field. if you don't have a strategy of containing isis in their home base in syria and iraq it spreads throughout the region. >> and the greatest concern about saudi arabia i'm assuming would be the far eastern point goaar which is the biggest oil field in the world by more than two field. if we start to see isis activity there is that an con zblern that is a con earn duh in 2006
you --. there was a shooting around ab kick on september 24th. i'd be watching ab kick very closely. >> great insight as always. let's bring in roberto freedlander. strategically though, it is important you are also focused on saudi arabia from an investing standpoint. what's your take? >> yes. well obviously they are not a major oil producer or major transit hub for oil. what is notable is that by having more boots on the ground there. we have a lot of players in the area. we russian in the area, saudi, isis. antiassad forces. the huge infrastructure. the key risk is really to the infrastructure in syria. there are a number of lines cross-crossing through saudi arabia up north turkey, syria,
iraq. the key is if any of these pipelines are hit by any of the multiple parties in the area and you have all of these parties in a country the size of washington, risk to these appliance is a big danger. there is not a lot of swing capacity. one of these applianpipelines he is a real risk. >> and your team's job is take all of this stuff we just talked about and make it actionable for your clients. in your notes this morning you said very clearly buy the u.s. refinery stocks. >> i like the refineries here. i've been bearish since the summer. the crack spreads have piqued out. they came in from 28 below 10 last week. and seemed to have a found a bottom here. exxon beat on the revenue side
promptly because of the refiner revenues and those almost doubled year over year. there are a lot of underto the refiners here. and i think they bottomed out -- upside to the refiners here. >> oil looks like it's going to end the year pretty much where it began. oil has been stuck in this mid 40 range some time now. do you see any breakout or other actionable advice regarding oil? >> yes i do. it seems the market has found an equilibrium around 45, $46 a barrel in wti. i think any geopolitical risk put in any commentary from the saudis, economy commentary from the opec meeting and you could see a run above 50. and i think we go out the year somewhat north of 50 in wti. >> have we seen the worst for the oil picture? >> i do think so. and there is a lot in the short camp that we're looking for crude to break through 40. we see it through 50, they have
have to throw in the towel on the short side. >> we had good data points on the major integrators with better than expected earnings and one was the strength in refining margins and you like the refiner. what are some other oil games? you do say the bottom is in for oil. >> i do. >> which -- and also pay a nice dividend to boot. >> i like pbf. pbf has made great acquisitions in the last couple months. one being the torrence refine ray from exxon. they got great exposure throughout the united states. and now great exposure to california california. the other is valero. they are the best in the international markets. and really they are top of the line in international markets for international exposure. the other would be psx. they had great number this is
morning. it is making new highs here. they were certainly shown they can execute. i think it heads a whole lot higher. >> pdf, valero and >> breaking news on the big banks. >> the fed staff is ib issuing a proposal at putting a additional buffer on the fed bank's. this proposal basically aims to end the whole concept of too big to fail or skepticism about the concept of too wig to fail for the big banks. the new requirements under the propyl would add extra loss protection at the parent and it's known as total loss absorbing capacity. the fed staff is expecting eight big banks to add long-term debt as a means of reaching the new requirements and currently they say by its estimates the eight banks are short about $120
billion in long-term debt. specifically six of the eight banks although they would not, people familiar with the situation would not name the two that are not or currently in compliance. so six of the eight banks would need to issue additional long-term debt at the parent. the cost of serve servicing that debt 680 to $1.5 billion to the big banks. the people familiar with this say this cost is expected to be off set the economy. if they fail there is another buffer there and taxpayer money would not be used to rescue them. --. and rules would also be applied to the u.s. subs of some large foreign banks. once again the federal reserve board is meeting to look over proposals and vote on them at 2:30 today and then of course it will be put out to public comment. once again at this point right now the fed staff estimating
that 6 of the 8 big banks would have to issue another 120 billion of long-term debt in order to meet the latest requirements. >> as a member of the public i'll comment. are they aware that the biggestbabiggest banks are bigger now that be pre financial crisis? >> yes and this only adds to the balance sheet. once they sell this debt they are going to have to find a way to -- >> pay for it. which means make fewer loans. >> and means they have to go out and -- so it just increases the balance sheet. so yes, all of these regulations again are adding to -- >> fed proposes banks to take on more debt. >> bigger banks. >> mary thompson. >> thanks a lot. more why a december rate hike could be a boost for housing. and we're looking for opportunity in some warn buffett bets gone bust.
small move higher in rates we saw this week but the potential for rates to move more dramatically higher. some say that would actually juice home sales at least in the short-term more than it would hurt them. why? let's do some math because you know i love the math. the average contract rate on the popular 30 year fixed moved around an eighth higher from tuesday to this frigday. some lender are now at 4%. not a huge pop but some --. what does that mean to a potential home buyer? object 9 bucks for eve$9 bucks hundred financed. say we want to 4.5 park next year. that would raise costs about $29 more per hundred thousand.
but just that. >> i believe it actually could be a catalyst for the market for people to get off the fence and jump into housing while rates are still relatively good. >> that's plausible except for the supply issue. mortgage rates are not the biggest head win for housing. it e it's. >> could the fear nudge reluctant buyers off the fence or maybe nudge some sellers? let's hear from our panel. do you think there are going to be some family sitting at home. oh my gosh, the fed is going to raise rates. let's buy now. >> in our experience buyers don't try to time the market but sellers do. and i think dianna hit the nail on the head. sellers are the ones we should be concerned about. they are the ones who have a low mortgage rate if they have
refied. and what will make them actually add inventory next year? two years ago we talked about sellers being locked in. they loved their mortgage and hated that you are house and decided to stay put. will this increase if it happens make them again hesitant to add to supply and that is supply we desperately need right now. >> okay. supply is a fancy word for nobody wants to sell their house. >> exactly. >> why not? what's keeping -- all we heard was how miserable homeowners were for years. now the market is back up. i would have thought a flood of homes for sale on the market. instead it is the exact opposite. why? >> i think sellers are listening to the market. they want to see how market prices go. i don't know if you have ever sold a home before but it is a yukky protsz. to get tlit and the list and it then to find another one. and that's key. if you are trying to move up to
a new home. again you are a seller today. you are a buyer tomorrow. you have to find a home. you may not be a i believe to find and then you are stuck in your current. >> i like the wording, yucky, process. but are sellers being greedy? >> sellers are trying to get the best price for the home. i think it's smart. i think it's what every seller wants to do. the problem is they have lagged information. they look and see what their neighbors got this summer and they think they are trying to list now they can get the same price. but the market has changed. at red fin we've seen that demand has slowed a bit from earlier this summer. they may not get the same price their neighbors did. and that is going to be a rude awakening for some sellers. >> we need to go but you are making a very important point. we need to double check on that. this is the idea. whenever we have a bad existing number or low home sales or low expectations a lot of people come out and say see this is the
end of the housing boom. no it tends to be just no homes to sell, correct? >> that's sometimes how it guess t. >> thank you. up next. the studs and the duds from one wild october in the stock market. plus a five star fund manager showing us her playbook for the rest of the year, including whether she is betting on some of warren buffett picks that have gone kind of bad this year. why pause to take a pill when a moment spontaneously turns romantic? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess.
side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com today, we're seeing new technologies make healthcare more personal
with patient-centric, 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 clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪
we talked and wrote about this back on september 1st. when the market falls more than 5% in august as this year, stocks usually rally into the end of the year. and that is exactly what's happened. in fact october has been a great month for the bulls. the s&p 500 on track to see its best month in four years. and there have been some big standouts in october. so with that in mind here are the best performing non deal. you know, they weren't up because they got bought, stocks over the past month. dupont, the ceo moving out. stock moving up 32%. trip advisers. wynn resorts. auto desk. on the flipside there have been
some names that have shall we say missed out on the october rally. among the worst performers. consolenergy. swn, quanta and sea gate. warren buffett, even the greats swing and miss sometimes. dow components, buffett owns last year as of the last filing date. walmart, american express, png and ibm are all done 10% or more thisst just this year. same goes for some of his other holds like via com, fox and john deere. let's get some advice maybe a buffett stock or two. and maybe some good picks for your portfolio. margaret, before we get to the stocks that you love, looking through your funds holdsiningsh
didn't see any names i discussed close to the top. but you do own american express. that is that one you are sticking with in these times. >> yes. i think a good company that can really own and -- really been created away are the costco relationship. a lot of folks haven't focused on the fact that in the last quarter what american express reported was that net new accounts were up more than a million accounts in north america. that is versus more than 300,000 in the prior several quarters. and that tells you their spending back into the business to grow the revenue and grow accounts. it is working and the brand still resonates. we still like that one. >> other three buffett dow names. walmart, ibm, pmg. >> those are not stocks in our portfolio. >> i've got to ask about linkedin. a blow out quarter last night.
the stock is up 12%. it is in your portfolio. at what point is it getting expensive? there has to be a point at which you say it is time to pull the rip cord on this one. >> that's fair. it is obviously up quite a bit today. i think you have to step back and ask why? and the reason is there were a lot of doubts how deep the market for recruiting was or is and combined with the company has a sales force reorg earlier in the year. and last night you saw the hiring revenue accelerated the quarter up 39 verdict prs 36. so --% versus 36. it is not an expensive stock but we still think there is runway here. they have an advertising business.
all of the businesses are under monetized. so i would stick with it. >> the other is ups. the stock has not done too well over the course of year to date as well as 12 months. as we enter the holiday season is there fear or concern perhaps it won't execute once again for the holidays? >> that is a fair point. the reason it hasn't outperformed over the last couple of years is because they have misexecuted in the fourth quarter. we have seen signs that whereas two years ago and last year the company was really struggling frankly to meet the demand in the fourth quarter and to price appropriately. now they feel like they are acting a little more strategically in terms of taking business in termination s of tr move things around to maximize revenue. and i think what a lot of folks forget is margins are actually depressed for this them. and if they can get pack to 15%,
there is meaningful upside to earnings. that would be a nice increase for the stock. >> i've got a 16-year-old dog i'm trying to get to live forever because he's once in a lifetime. he obvious lly won't. i'm spending a lot of on medicine. is that the reason you like zoetis? >> animal health is an important part of their business. they make the medicines and vaccinations for animals for food supply chain and for your dog at home. what i find interesting about this business is to us it looks a closet consumer staple company. but with better revenue and profit growth. and we've seen concerns about drug pricing really effect a lot of healthcare stocks. this is off its high and we think it is unwarranted. >> a quiet performer. you could say they are all bark and no bite.
hi everybody. i'm sue herrera. here is your cnbc news update. the white house says that sending fewer than fifty special forces operations to syria will haven impact and intensify the efforts. white house spokesman says the forces would amplify president obama's policy of supporting local forces in that country. and rejected an offer from electrolux and general electric and is preparing to take concerns to trial. the department is challenging elect lux's plant ak acquisition of ge arguing it would harm competition. finishing touches on house speaker paul ryan's new office
are complete. there is that new name plate which has been placed on the doorway leading in to his how was. he's the youngest house speaker in nearly 150 years. back to you brian. he's got a big job ahead of him. >> certainly does. thank you sue. sthoo well the oil market closing out october with a slight gain today. but jackie deing . >> little less than 5% on the week for the month crude oil up a little more than 3%. what was interesting, brent crossed the $50 mark or hit it just in the last five minutes of trade but did rebound to the downside to finish under fifty. you talked about the top of the hour about the u.s. troops going into syria, limited number of troops n advisory role, adding
support to the market today. the move on the day. nothing as drastic as we've seen. 60% more move just this week earlier. have a great weekend. >> every day we dig throw mounds of research to find the five most interesting stock trades of the day. >> stock number one. trimable navigation. this follows earnings where management expressed optimism from next year. the new target is about 10 or 15% upside from here. not everybody is as positive though. piper jaafari remaining cautious because the end markets may still yet be soft. >> this caught my attention. i went into the press release. the ceo said the revenue were negatively impacted by poor
conditions in agricultural market. and as those things lessened he'll see growth next year. that is a lot of things that knead to go right. >> those are all the factors. >> right. >> we were only impacted by wind, rain, sand, sun, heat and cold. >> and if all those things improve then we'll see growth next year. >> i hope? >> yeah i don't know. second stock. solar city. huge miss on the third quarter last night. lowering its 2015 and 16 guidance for mega watts installed. solar city is now focusing on cost reductions and becoming cash flow positive by '16. baird says the stock --. until solar city shows traction towards that cash flow goal. and check it out. this is sort of an outlier brian. take a look at some other ones that have reported. first solar is up 12%. also report last night beat in a race. sun power was up 10%.
more than 10% the previous day on a beaten raise. >> as a consumer considered putting solar panels on my house but as my heating bill goes down because natural gas falls it makes solar that much less economically inefficient. i wonder if solar companies are hurt by low power prices. >> that's been the case the last year or two years. it's gotten worse just now. >> a bio tech stock. -- following quarterly sales earnings and guidance all better than expected. this stock's been crushed this month on growth concerns. but perhaps this quarter will ease the concerns. the target is 85. the that was 20% upside this morning. we found the call. it's still like 13% upside but it's still upside. >> maker of hard pumps.
fourth in imimperva. the stock a winner of 122% over the year. >> the average target is about 78.5 bucks. almost everybody else sees upside too. >> today's's under your radar name. today's is inter face. did you get the tiles for flor? this is them. the parent company. called interface. upgraded from a buy to a hold. note that investors didn't like trends despite a record quarter. and the analysts say interestingly enough takes a
swipe at wall street, meaning the guidance raise how this results in a 15% correction is puzzling but that is today's wall street. the target interface, 24 bucks. the stock is 19.5. >> i want to --. no it didn't. so you are part of wall street too, steeple. that's what i have to say. >> boom. there you go. street talk down. time now for trading nation because traders trade better together. and let's talk. the consumer discretionary space. a sector dramatically leading the market this year. editor of the crossing wall street blog. and technical analyst with asbury research. great to have you on. in your analysis can consumer stocks keep leading? >> absolutely. consumer discretion has been a huge home run for investors. it was at 15 at the market low and hit another new high today. one thing i'd point is a big
difference between consumer stocks that are financed and consumer stocks that are not finance. we're not going to see this yet but i think some time in 2016 we may see a break between the two subsectors. >> what do you mean? what are the difference? providing financing to wi that product? -- buy the product? >> you finance to buy the product. >> lyiike solar city. you are going to borrow the money to put the solar panels on. >> exactly. >> so what you're take. who's in better position the ones you need finances or for not? >> as interest rates go higher that adds more cost and less financing will be done. remember the xly, we call it consumer discretionary. but it is a huge sector. from ralph lauren and tiffany to mcdonald's and raw stores. so we're really going to see a break at some point once the fred interest rates have an impact on consumers. >> one could argue almost
everything is consumer discretionary even coal if your kid was bad. so there you go. john, you are charting the consumer discretionary etf. how does it look? >> it looks good. i mean it is actually up at its highs it made back in august. and it's been stalling as you would expect. a great move. it's up 11.7% in the last pont. so there is going to be some profit taking up here.month. so there is going to be some profit taking up here. if we look at the chart it is at the highs. the high is 8361. that is the level we're watching. now what we're not see iing is track the assets going in and out of the etf. and those assets have been expanding really since october 1st, 2nd and have really been exploding. >> that explains the recent run. more buyers than sellers.
sometimes when there are more buyers than sellers stocks go up. so 83 is the key if we move through that that is support and then another leg up. >> as long as the assets continue to expand this is going to go higher and it could go significantly higher between now and the end of the year. the too much profit taking so to speak and we see the assets rollover we're going to get some kind of a pull back. i really like the space but you need to watch those assets up in here because a lot of back and forth is taking place at the old highs. >> guy, thank you very much and have a grade weekend. >> for more trading nation head to our website, tradingnation.cnbc.com. and it's been a hot month for stocks, a warm month weatherwise but an ice cold month for one
if pfizer buys allergan it could be one of the biggest so called tax inversion deals of all time. that is when a u.s. company buys or all of a big part of a company in a lower tax nation where allergan is currently based. so why aren't the bills to stop inversions actually calledstop inversions. and if the antiinversion crowd wasn't fired up before, if this deal goes through you can bet they are going to be. >> it is a billion dollars of last annual tx revenax revenue
u.s. citizens. you got a 12.5% in ireland versus 35% in the united states. and our friends at acg analytics and ernest and young did a report and they found over the last eight years, 1100 companies wouldn't have left the united states if we had a 25% corporate tax bracket. so, you know, it is counterintuitive. but actually if you lower the tax -- corporate tax bracket, more companies would stay -- it would actually have more tax revenue. >> we're in this weird team. because the public hates it rightfully. do your fair share. pay your tax bills. you get all the benefits of the u.s. system. congress hates it, they are trying to stop it. but really can't legally put a complete and they can't ban it. corporations keep moving overseas. what is the solution? >> it's definitely getting very political in the last 24 hours. marco rubio, hillary clinton
have made waves here. the white house yesterday. i think as an investor you have to think about the next 18 months. with paul ryan as the speaker, that is a positive step. we need corporate tax reform. the question is for investors are we going to get it between now and when the obama administration leaves the white house? and you probably get it late next year. but that means that in the meantime corporations brian are under such pressure. you have got negative revenue growth this year minus -- >> so larry -- >> -- percent -- >> bottom line is push to get deals done because of a possible change in the political landscape concerning inversions. >> and the pressure is -- what i was getting is negative revenue growth this year. two percent gdp. and if you are a cfo and see another company doing inversion you are under pressure to do something. because you have to satisfy
ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.
tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.
welcome back to "power lunch," i'm melissa lee. lows of the day as we are approaching the final hour of trading for the week. we have the nasdaq off of the session lows down by 12 points right now and for the s&p 500 also just off the session lows. take a look at the dow right now, down 34 points, but it has been overall a very hot month for stocks, a cold month for retail names. let's bring in richard jaffry. the weather stunk for reit tailers, great for all of us, we didn't have to wear heavy down jackets yet but stunk for the retailers. does that mean that there is going to be pent up demand going into november and december? >> unfortunately not. the warm weather in september and the start of october is going to hurt the season. consumers don't recall that they didn't spend in september and spend doubly in october or november. >> which retailers is poised best going into this tough backdrop? weather is something uncontrollable but there are a
lot of other things retailers can control like inventory levels and so on. >> inventory is a part of this, but this is highly discretionary. the consumer is look to be inspired to buy the newness, trends, the fashion, so the retailers that can get the trends right will do well. >> what are the hot trends in this holiday? >> in the men's space it's a tailored look and much more crisp almost dress up look. a very tailored suit, pants that are not baggy but rather without pleats and much more tape err. the young men are beginning to dress up much more. we think that's going to continue. in the women's space there is a return to the '70s, boho look, wide leg or bell bottom pant and a return to high-waisted trousers. a bit of the bohemian fashion which we've seen continues with a full skirt with those boots from last year. so there's things to motivate the consumer that are out there,
a couple of players -- >> richard, high-waisted trousers, what is this 1984, are we going back to leggings. >> it's for the women and it's in denim. >> that's what i mean, nel me griffith -- okay. before that, this weather it's great, 70 degrees in the northeast in late october. we love t some retailers will rightfully blame it, but what retailers are going to blame it because they can but that's not why they have sales that miss? >> well, i think any of the retailers that became blaim it exclusively aren't being honest with themselves. if you are trend right you can manage through a difficult september or october bad weather. if you do get the trends right and it's the retailers that have a combination of being off the pace in terms of trend and the weather that will suffer the most. >> all right. richard, we are going to leave it there. thank you very much for joining us. >> thank you. up next, the perfect trick to keep you from running out of
treats this halloween. storm trooper jane wells -- are you sure that's you, jane? >> yes, brian, and if you end up on the dark side of the force this halloween running out of candy, some silicon valley startup guys have developed an app for that. that story is your destiny. when "power lunch" comes back. we thought we'd be ready.
but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey. will you be ready when growth presents itself. realize your buying power at open.com.
take a look at shares of valeant right now on an inter day basis it's off of the inter day session lows. lots of moving parts to this story but bill ackman engaging in a four-hour conference call defending his large position in valeant but the stock still losing after that conference call. the stock has lost about $4.50 per hour of that bill ackman conference call just for reference. tonight at 5:00 on "fast money" we are going to talk about the valeant story and what is next for this stock. brian, it seems to be getting worse and worse just when you think it couldn't. >> when you run out of customers or at least they stop getting cut that's what happens. with halloween falling on a saturday this year kids have all day to go around asking for candy but do not get tricked by running out of treats. jane, i'm a better shot than every storm trooper in the movie wells has that story. >> brian, tomorrow is one of the biggest days of the year for kids, for dennis and hershey and
mars. we will spend as much as $2.6 billion on candy this halloween. usa today says the top five candies are kit kat, hershey, snickers, m & m's and number one reese's. why reese as soon as you have to ask, it's peanut butter and chocolate. if you live in fear as i do that you will run out of candy there's now an app for that. >> spoon rocket is a smatartup the bay area. they make their own meals and deliver them for as little as 6 bucks plus a feel of 2.50 to 27756789 this halloween if you use the app and run out of candy they will deliver candy to you in 15 minutes and they have said that they've got a thousand pounds of candy just to be safe. >> so we do make a little bit of money but the whole point of this is to further engage the community so they know about
spoon rocket. >> only in america or maybe only in the bay area would you have a startup that promises cheap meals delivered and halloween candy and it's already raised $13 million in funding. back to you. >> jane wells, are those the pumpkins you have been looking for? >> very good. i am your father. no! >> i hope no, jane. that would be bizarre and genetically impossible. i'm much too tall for you. jane, thank you. all right. awesome stuff. time for our stocks of the week. melissa, boston scientific is my pick. it gets no love at aushlgs it's up weekly, monthly, this year and 12 months. no one talks about it so there you go, bsx, get some love. >> nxp semi is mine. took down its guidance for the fourth quarter across product categories, it got crushed, today up a little bit, still down 20% for the week.
>> you're still sticking by your claim that you have never seen "star wars"? >> my claim? it's true. i haven't. it's a fact. >> we're going to bing watch together. "closing bell" starts right now. and we welcome to you "closing bell" for this friday, i'm bill griffeth here at the new york stock exchange. hey, kelly. >> oh, hello, bill. i am kelly evans out here at carnegie mellon university in pittsburgh. i just wanted to let you know, bill, i'm making a new friend here, i think he might be a capable co-host even. had i, herb. >> hi, kelly. >> he is a home exploring robot butler, bill. he not only co-hosts i think he can bring me coffee from joe kernen to herb, you have been all over