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tv   Closing Bell  CNBC  November 5, 2015 3:00pm-5:01pm EST

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based on the conference call comments so that's going to be key and the conference call of course happening during the 5:00 hour. >> okay. that wraps it up for "power lunch" for today. we will head over to "closing bell" right now. and welcome to the "closing bell," everybody, i'm kelly evans here at the new york stock exchange. >> i'm bill griffeth. we have both been standing here waiting for hours for the show to start. >> ages, ages. >> long, long time. what a day it's been for facebook shares, soaring, last i saw 5%, still is. company pushing the market's share -- market share, the market cap past $300 billion thanks to strong digital advertising sales that they reported last night. coming up we will tell you where facebook now ranks on the most valuable companies list and whether those good times can last. >> speaking of earnings, we have another wave of them heading your way after the bell today. disney news corp., kraft heinz
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shake shack some of the big names getting set to post their results. and then we will hear from disney ceo bob iger moments after those results are released. >> i wonder if he has seen the "star wars" movie yet. >> plus china's stock market rallying 16% over the past month. jpmorgan chase executive of the asian pacific will tell you whether it's over for the stock market. dominic chu takes a closer look at the changing of the guard, if you will. dom. >> a huge changing of the guard, a new world meets old world general electric one of the most iconic companies in american business history now, yes, worth less than facebook a company that's only be public for a years now. as you take a look at the market values you made mention of the
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fact that facebook is worth 306, perhaps $307 billion that's rare a if i had air. let's take a look at the concept and put it in context of some of the bigger names in today's stock market the s&p 500. if you take a look at current market values apple still at the top of the heap there, around 670 or so billion dollars, alphabet/google $523 billion microsoft 434, exxon still up there, always up there on that list $354 billion berkshire hathaway shares worth 338. you have that idea that amazon and facebook these new world companies now taking their top in the spot. if you go back in our time machine back to 1995 at the end there we asked the folks over at s&p dow jones indices about which stocks were worth the most at the end of 1995, so about 20 years ago and take a look at this, it's general electric, ge back then was worth about $120 billion and then at&t, the two biggest companies out there,
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about 103. exxonmobil just about 100 billion dollars, coca-cola pushing that mark and merck at $81 pll. this old world industrial type companies, pharmaceutical type companies dominated the s&p 500 at the top versus what we see today more on the technology side. just to put it in perspective back then with $120 billion that valuation for ge made it roughly worth about three times the size of general motors or a pfizer and about six times the size of cisco and worth more, guys, back in at least 1995, bigger than the combined market caps of microsoft, ibm and cisco combined. just to give you an idea 20 years ago how big ge really was. >> i'm learning so much over here, dom. thank you. this is great stuff. our dominic chu back at headquarters. let's take a look at facebook. helping to lead that $300 billion mark is its surge in advertising revenue specifically mobile ad growth.
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>> and is this ad growth sustainable for facebook? let's bring in matt britain the ceo of social media marketing agency myr. i asked the gang to put a three year chart of facebook together taking it back to its ipos in 2012 when it fell from 30 to 20 on concerns that it wasn't in mobile, mark zuckerberg needed to get off the dime and get going into this mobile ad space and now look at it today how it has changed, huh? >> wow. >> yeah, i mean, i think it's amazing. i think what facebook has done which i think a lot of tech companies should take note of they didn't worry about the stock price when it dropped, they had their mind on their vision and long-term strategy and knew they needed to involve the user experience and product to move to mobile and they've shown that they can do that with flying colors. >> the most important thing for them now is keep this log rolling momentum going. what's next for facebook now that it has a buildel active users every day?
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>> well, they're rolling out new ad products which allow advertisers to become a lot more context do you recall reaching the right consumer with the right message at the right time. facebook has logged over 2 trillion posts. they have so much data on consumers they can target a consumer who wants an umbrella when it's raining out or wants a car when they just put in their old car because their lease ran out. being that context do you recall for brands can drive more roi. >> anecdotally there's so many conversations today about whether as we are all realizing who you important and powerful this data is we want all off you are data out there, compound that with some of the reports including the journal today talking about how iran is spying on certain u.s. people through their facebook accounts and other kinds of things. >> it's scary. >> is the backlash inevitable now that we understand what's really going on here? >> this new millennial generation there's a big miss con sempgs on the media on how they perceive privacy for the
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millennial generation prief ses what they're talking to a significant other at about at 2:00 in the morning, it's not the brand they like or sharing personal information about their lives. that's become their general de facto lifestyle. this generation moving forward doesn't fret putting themselves out there, it's just a way of life. >> one initiative they have going is this virtual reality, does that resonate with you? can they monetize that? is that a growth area? >> it is a growth area but still super early. facebook is so forward looking, they have such great looking, the accu lus seems like it was crazy, but five to ten years from now it could transform gaming or communications. it's still a little while out but could change the game for the consumer moving forward. >> already doing so for advertising. mat, thank you. >> thank you. let's get to our "closing bell" exchange for this thursday with the dow down 29 points as we wait for tomorrow's jobs number ken mahoney is with us at the big board, next to peter
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costa from empire executions and we have rick santelli in chicago. peter costa, is that what the market is waiting for, you know, we have had a couple quiet days here after very strong days monday and tuesday. what's the catalyst right now? >> right now the catalyst is going to be tomorrow. i mean, you know, everybody has been waiting to find out what the numbers are going to be like, how the fed is going to respond to that, you know, over the coming month or so. >> everybody keeps raising their expectations now, goldman went to 190,000 today from a previously 175,000 with some of the other data that's been coming out recently. so our expectations for that number are rising today. >> expectations for everything is rising, you know, for tomorrow's numbers and i think that is definitely going to -- it will spur the fed but also you have to look at the -- the fed is looking long-term, bigger picture and i think that, you know, one month of very positive data, you know, some wage growth i think it's more important that they get wage growth if there's an acceleration in that then
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they may act. to me i think it might be a little early, i think -- i still think that there's probably a couple more months of positive growth, you know, i've said this from the beginning of the year, i thought it would be next year, i thought it would be the first quarter of next year, i still stick with that. >> in the meantime the market is separating the haves from the have notes, if facebook joins apple, a.m. sflon and alphabet as those that have the winning to recall la today who is in the have not camp? ? the haves are the fangs. ibm, walmart at the missed, this morning we join the have notes of qualcomm and whole foods. you will see a separation, the have and have notes as we get closer to the end of the quarter and end of this year money managers will start dressing up their portfolios. they want to show that they own those fangs, they want to show they own those stocks. they definitely want to show ibm
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and walmart and some of those names. >> yeah. >> rick, i was having a little fun with charts this morning. we are mar velg as how the two year yield has gone to four year highs. i went back and looked at an even longer chart, this is a 20-year chart of the two-year yield -- >> you can't even find these yields, they just disappear, don't they? >> eight years ago the yield was 5%, ten years -- or 20 years ago, whatever it was, it was at 7% was the yielded on the two year note. fathom that, rick. >> it's automatic scaling for one thing that makes it so dramatic on computers. listen, bill, what you have arrived at is so telling. how many times a year people say raising a quarter point would be the end of the world, the system would come crashing. how did we survive? how did we have so much prosperity with close to double digit interest rates? yes, the trick is that when i
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read some of the things that lockhart said it makes me crazy. you know, they want to manage market expectations. forget about that, manage the economy, the market will follow. listen, i'd like to ask everybody on our panel if you look at year to date payroll creation so far for the nine months this year versus last year on an average which year do you think is better? >> now. >> now. >> in i believe. >> i'm with ted. >> i will tell you that it's 25% -- 25% less job creation on the nine months this year annualized than it was last year. last year was 260,000, this year thus far 197,000. so this notion of janet gellen saying, listen, everything is lining up, everybody has changed so dramatically since the september meeting. what dat it is she looking at? >> why do with he always talk
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about interest rates in nominal terms. if the interest rate is 4% but you have growth doing and inflation doing one thing that's a very different picture. >> kelly, we don't have to worry about it. that's mr. market's job. if investors are willing to take a yield of 224 for the tens it's all in the soup. okay? the soup is all done, the market mixes it all up for us. >> right. but what i'm saying is that that 2% while it doesn't look great on a historical basis is probably what 3% if you throw inflation into it, that's not that dissimilar, right, from what that -- >> you and i agree -- >> -- 20, 30 years. >> that would be you and i agree on what inflation s i absolutely don't agree that the personal consumption expenditure is any type of inflation indicator that i would put at the top of mount rush more personally. i think the price of cheese, the price of milk, the price of lettuce or rent would be much better. student, cost of college. >> yeah.
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>> these numbers are always skewed to how much activity in your life. you only buy one house, you only send a kid to school for four years but if those four years you send your kid to school for take 20 years of your savings away maybe they need to weight this stuff a little more. >> is the fed really data dependent or market dependent? it seems like in -- >> market dependent. give that man a could you pea doll. >> we have to get off this bad news is good news for the economy because we are not going to raise rates. we want to see the fed normalize rates. we can't stay at 0.25%. we have to get some arrows in the quiver. we have to get fed fund rates normalized to 2, 2.5%. >> peter, what levels are you watching right now? what's critical for this market at this point? >> two things, number one historically over the last 33 years i've been on the trading floor on my birthday the market has closed up above its previous close 85% of the time.
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>> happy birthday, peter. >> thank you very much. i wanted to bring that up as a pat on my bed. >> that's pathetic. >> people are -- i think there's a lot of people staying on the sidelines, i think that they are a little nervous about what's going to happen tomorrow. you know, i mean, i don't think anything is going to happen tomorrow. what you're going to get is exactly what everybody is expecting. what we will have to wait and see how the fed perceives it. are there any underlying numbers that are important in there that we haven't looked at too much. you know, i don't think there is going to be any surprises tomorrow. >> a shameless fishing for a happy birthday. >> yes. absolutely. absolutely. i will tell you that. >> next he is going to tell us he was 18 years old when he came on to the trading floor, too. >> no. that i will not say. >> happy birthday, peter. >> thank you. >> thanks, everybody. about 45 minutes to go here, the dow is down 34 points, the s&p is down 5 today. the russell small caps by the way we have been watching for some dispersion, those are lower by a point, the vix is higher on the session and the nasdaq is
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down 20. >> busy round of after the bell earnings again tonight. disney, news corp., kraft heinz among the big names. we will tell you the numbers the street is looking for, bring those to you the second they appear on the tape and of course offer instant analysis at the same time. >> disney ceo bob iger speaking with us right after the entertainment giant posts its results. don't miss it. up next, though, red alert on what a british exit could be from the european union and what it would do to the economy in europe and world europe. morgan stanley says a recession could be in the offing. our wildred frost weighs in while we condition on the "closing bell."
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welcome back. breaking news on exxon here. dominic chu has details. >> all right. so we have now learned here at cnbc that exxonmobil is under investigation by the new york state attorney general's office, eric snyderman on the possibility that exxon mobil may have misled the public and investors about issues related to climate change and or about how those issues may have
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turned -- rather impacted the oil business overall. this is of course a very hot button issue in the political arena right now as well. we also want to read you because we do have a statement from exxon mobil with regard to these particular story points. they say via a spokesperson that, quote, we have received a subpoena for production of documents relating to climate change from the attorney general of new york and are assessing our response. exxon mobil has included information about the business risks of climate change for many years in our 10 k, that's their annual report, also their report citizen report and other reports to shareholders. we unequivocally reject the allegations that exxon mobil suppressed climate change research contained in media reports that are inaccurate distortions of our nearly 40 years history of climate research that was conducted publicly in conjunction with the department of energy, academics and the u.n. intergovernmental panel on climate change. so there is their formal response back. again, it was first reported in the "new york times" but again confirmed by cnbc that exxon
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mobil is under investigation by the new york state attorney general's office. >> energy stocks have been lower anyway today but exxon is down 1.5% right now. thanks very much. some other movers for this thursday, ralph lauren popping on a better than expected outlook for the holiday quarter, company's earnings also beat street estimates even though they were weighed down by the strong dollar and restructuring expenses. qualcomm tumbling to a 52 week low. earnings out last night managed to top analysts expectations but first quarter guidance disappointed and the chip maker says it is still struggling to get chinese customers to pay for licenses. >> u.s. investment bank morgan stanley warning that a british exit from the ear mean union could push us into a recession. so recession, is this the first
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time we have heard that concern? >> this morgan stanley report is saying that it could be a big negative impact saying in 2017 growth forecasts could be halved below 1% but they do say that might be a temporary move. they put the chance of this brexit as we call it in the u.k. a british exit from eu at about one in three. they take that from the betting markets what the odds currently imply but another gauge of how likely this is is a recent poll by the polling firm in the you can ugov who said the chance for an exit is 40% versus 38% for staying in. st. paul in june was a 6 point doctor difference in the other direction. >> is this why mark carney was was as i wish as he was about his discussion about monetary policy. >> it pushed the pound down by -- i don't think that's related to brexit immediately, i think there's inflation pressures in the you can and that's linked to the weak euro.
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what we're doing is importing deflation from the eurozone because of the price pressures there. longer term definitely this has a potential impact on the pound moving forward and that swing in the poll i said earlier over the summer that's really down to two big factors, the refugee crisis and the greek crisis and in particular the way that the greek crisis is seen as germany controlling greece and people concerned that brussels is controlling the u.k. a little too much. >> a lot of the arguments in the case about britain staying or going from the european union have been made in dollar times but simon nixon said this could ultimately come down to security. is it a world in which britain can project its authority to create a stable situation if they are part of the european union or if it's not. >> i think that's definitely a big debate. there's the trade debate which
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we've been puctouching on, we a still a small country should we be part of this bigger block. what would the relationship be with the u.s. moving forward, the special relationship remain or no longer a part of the eu would that not be the case. it's hard for us to say that, but one point that those people that want to leave europe do highlight is the size of britain's military, that's still going to be the fourth biggest in the world. germany bigger economy and bigger power in europe but a much smaller military. on the u.s. point i would just add because we did get news today from michael grow man, he said the first time comments were seen a u.s. official relating to the trade part. he said he wouldn't be that keen to make separate bilateral agreements with any country if the u.k. did leave the u.n. that's a crucial argument, whether if they left they could strike up new trade agreements.
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>> they have their hands full at the moment. >> absolutely. all right. we're going to head to the close here with about 38 minutes left in the trading session, the dow down just 18 points, probably waiting for that jobs number out tomorrow morning. >> but up next our dynamic duo of barney frank and larry kudlow weigh in on the government's first conviction in a spoofing case and if that will open the floodgates to fresh pros cure. >> bob iger will speak first on cnbc moments after dis me releases its earnings. that's an hour from now. and find out what iger thinks, the new "star wars" movie could do for disney's profits and stock and whether he has seen the mother. >> that's the question. right after this.
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welcome back. the government's first conviction in the spoofing case involving a high speed commodities trader could lead to more prosecutions. >> bob pisani has more on that story he has been following all day. >> it's a great story. a new jersey trader became the first person to be convicted on a charge of spoofing, flooding the markets with orders he did not intend to execute. michael koskia owned a firm that over a three-month period over 2011 he made $1.4 million by spoofing in corns, soybeans, copper and gold, for example. here is an example how spoofing right work. a trader might enter a series of
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orders to buy a stock or commodity at prices slightly higher than the market, the prices move up but when the market participants try to interact with the buy order it vanishes and goes away, at the same time the trader would sell contracts he or she already had bought at prices higher than was available a moment before. this is a pretty old scheme, it's a variation on the old pump and dump strategy that's been around for many, many years, however, computerized trading enables you to do it faster. still it's essentially a scam. his attorney ordered that the low was vague and it was unclear just what spoofing was, but the jury disagreed. it appears to have come down on the side of the prosecution which had argued that spoofing occurs if a trader has a algorithm that's designed to be canceled when anybody tries to interact with it. prosecutors argue he had an intent to deceive. this is very important because spoofing was specifically made illegal by the 2010 dodd-frank act. this is the first time there has
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been a conviction under that law. it's not clear if this is going to encourage prosecutors to bring more market manipulation cases, but it does provide for a clearer legal framework for prosecution. by the way, this is being very -- being watched very closely by the ekd person to be criminally charged with spoofing, this is navinde navinder sarou. he has also been accused of market manipulation in the stock market. he has denied those allegations. by the way, there has been several big high frequency trading firms who were actually witnesses for the government in this case. i do anticipate it will be appealed but we now have case law that's out there or ruling in effect and we have the case that's actually very interesting we will be following it carefully. >> and as a matter of law sarou's case involves the flash crash in may of 2010 that he is charged with causing. thanks very much. let's get more reaction now from cnbc senior contributor larry kudlow and barney frank
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who co-authored had the dodd-frank law which made spoofing illegal. barney frank, your thoughts on this case? >> well, i think it's a very pro market development. what this says is that we believe in the market, we believe that a market in which people freely and honestly buy and sell is the best way to set prices and when people engage in this kind of activity they are interfering with the market setting ability of what is happening. you get price discovery from a good market and when people manipulate it this way it interferes with it. i would also say that one of the great strengths of america is the legitimacy and integrity of our financial markets. there was a fear a few years ago we wouldn't have any ipos, we're doing very well. i think protecting the integrity of our market and giving people the assurance that this is a legitimate buy and sell, demand
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and supply set mechanism is a great asset for us and we need to protect it. >> barney, i'm going to sound like i'm a smart alec with this but i'm not, i'm sincere, was this a narrowly focused law pertaining strictly to high frequency trading or could this conceivably get to bluffing? bluffing has been around in markets forever and traders are always telling me they got bluffed out of a position or whatever. would you go after that as well or is this only about high frequency trading in this case? >> no, i think -- look, everything that you criminalize you have to draw a line. you know, there were very few absolute either/or and bluffing is a reasonable thing, but if you go too far, if you have, in fact, taken action that misleads people then i think, yes, you can go after it. so i would say it's more likely, obviously it's come out of the high speed trading but i would not rule out somebody who
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carries the bluffing too far. it's one thing to bluff, it's another to actually do some physical things that displays the good workings of the market. >> larry. >> i basically agree with barney on this. assume they have all the evidence they need and only point i would make is this is this worth 25 years in jail? that's what you're flashing on the news. 25 years. >> that's the potential there. is that too steep, barney? >> no, but -- >> that's a big number. >> that's the maximum. i would bet -- i'd like to make better legal but since it isn't i obviously the law nobody is going to get close to 25 years. you have a, ma muscle in there in part because if there was a widespread scheme that showed real damage, yes, then you want that, but rarely do people get the maximum and i would agree with larry 25 years for this one
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instance, no, that's way beyond what should happen and what will happen. >> the other concern i have is, again, the law is the law, just that the other concern i have is that overjealous prosecutors over time will really get involved in the whole market process. as barney said there's price discovery in the market process, there are bids and offers, sometimes you change your mind. i mean, are we going to ban trading? how far are they going to go because the inside trading cases they all prosecuted these guys and they got off. they got off because the evidence wasn't there. so i'd just be careful on this. i'm just raising a caution point. >> larry, can i say i agree two things, first, on insider trading because i think that's a problem here that's been apparently illegal. the convictions were overturned not because there wasn't evidence, in some cases there was very hard evidence, but because the law has never been codified and the judges said, do you know what, you are prosecuting people for something
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that you prove that they did but you haven't pro fd that it was against any existing law. i think this is a case where my former completion from to statute these. as to overzealous prosecution i agree that's a danger but that's a danger for young black kids smoking marijuana. the evidence in america is very thin that you are going to have excessive prosecution of people in the financial industry. i would agree with you that that would be a bad thing but i would not put it on empirically and realistically on the top 108 things i would worry about. >> look -- i'm sorry, go ahead, kelly. >> real quick, something that's quickly going to dominate the agenda is what's coming up this saturday night. we just saw a promo from "saturday night live," donald trump is guest hosting, listen to what he has to say. >> this week presidential candidate donald trump will be hosting "saturday night live" and i'm not supposed to say this but he said i could be his running maity. >> did you hear, i'm trump's vp?
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>> i'm just shopping around. >> what do you think, larry, is it going to help, hurt? >> look, everybody does it, hillary did it. it's just kind of interesting. i think it's more entertainment than politics, but, you know, will mr. trump take shots at ben carson and shots at jeb bush? nobody knows. what the script is going to look like nobody knows. it's entertainment. he has done the show before. >> who do you think would be a good vp for marco rubio just as a hypothetical. >> i would take john kasich of ohio. >> really? >> how about that. look, i wasn't even prepared for that question. that was fast. i was fast. they need ohio. they need ohio. rubio -- rubio is young, john has been around, he knows washington. so there you have it. >> yeah. hey, i like -- all right. interesting. larry kudlow, barney frank thank you both. >> you're welcome. time for a cnbc news update with sue herrera.
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sue. >> here is what's happening this hour. an official says illinois police officer charles joseph gliniewicz who killed himself tried to arrange for a gang member to put a hit on the village administrator because he feared she would discover he had embezzled money. investigators also say that they found packets of cocaine in his desk after his death. former president george h.w. bush says one time pentagon chief konld rumsfeld served his son badly when he was in the white house and that former vice president dick cheney built his own empire, quote/unquote, and asserted too much hard line influence. this is from his biography which will be published next week. donald trump is running the first paid ads of his presidential campaign. he is spending about $300,000 in radio ad buys in iowa, new hampshire and south carolina. they do not attack his vie valls but they do blast politicians in general as being all talk and no
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action. and panera bread is the latest chain to stop using eggs from caged hence. they say they will use 100% cage free eggs by the year 2020. mcdonald's, starbucks announced they would make that switch as well. back to you guys, kelly. 25 minutes to go into the close here. look at this, dow is up 1 point. s&p is down by 2. we will keep an eye on it, though, as the vix is lower now, the russell positive by one, the nas dk down only about 15. >> the market that has come bay a lot like ours, china's, when we come back we will find out if jpmorgan chase is bullish or bearish on china for the rest of the year and going into the new year. that's coming up. 10 gigs of 4g lte data, each. just $30 bucks a line thats 10 gigs each and no sharing need new phones for the family? get the samsung galaxy s6
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we are in that last half hour of the trading session here. joining me at the telestrator board we have mark newton from gray wolf execution partners. >> we have had quite a ride since late august, that bottom we put in here. i'm curious are we destined to do more or bumping up against resistance, what do you see here? >> we're starting to see a few signs of stalling out. the market had been up 12.8%
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within four weeks time. >> this is the s&p. >> just in the last couple days it has pulled down and we are really testing those lows of the last couple days. that's going to be important in the short run. if we get under 2096 in the cash that means we will have at least a little bit of a correction down to 2079 which is the next key level. point being seasonality generally in november for pre election year suggests we peak in the 4th or 5th day of the month before rallying. sentiment has gotten very enthusiastic again in a short period of time. it makes sense we could stall out and smart to show signs of backing and filling. >> one sector healthcare, specifically biotech. >> healthcare has been the third best performing sector in the last month and biotechs are up again to a key level. if you look at this level right here for the xbi and so, that's going to be dee for this to get above. until that happens my thinking is we do stall out here. obviously we saw shortfalls in
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revenues today, celgene and some weakness there. my thinking is you will sell out in biotech after this run we've seen in healthcare. bottom line is seasonally and based on momentum indicators as well as sentiment suggests we have to stall out a bit before we make further upside. 2032, so, you know, the good money likely has been made already on this little bounce from late september up to where we've seen. >> good to see you, mark. thanks. >> like wise. thank you. let's go out to seema mody for a news update. >> we're actually going to talk about china, shall we? one of the out performers, one of the leading concerns among investors over the summer. this shanghai composite plunging 32%. since then we've seen a dramatic reversal in chinese equities, officials in bull market territory defined as a 20% rise from its recent low. even if you look at the tech heavy shen zen composite it's up 22% over the past one month. what's changed?
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not a whole lot on the economic front, a slight improvement in services activity and property market, but manufacturing still slowing down not to mention growth. it's the proactive approach taken by the chinese central bank, recently cutting rates in an effort to boost spending and the stimulus is expected to continue. sbo anticipating another cut before the end of the year. keep in mind a whole slew of data is out next week on expo s exports, imports, inflation as well as credit growth. experts i speak to say that could potentially change the direction of the market so we will be keeping a close eye on that data coming up next week. back to you. >> all right. seema, thank you very much. joining us right now we want to talk about the chinese market, jean ulrich is choice chair of asia ma pifk civic at jpmorgan chase. what are we to make of this rally? what is that about do you think? >> well, you know, the chinese market actually was oversold back in the summertime.
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as you remember the market plunged. during the few weeks in the summertime $3 trillion of market cap was lost. now the economy seems to be stabilizing i would say the data actually show the news is less bad and actually the news is actually showing some things improving because since the beginning of this year the central bank in china has already cut rates six times, they've also injected liquidity into the chinese banking system, plus we have the five-year plan on the cusp of being launched sometime in the early spring of next year. investors have become a lot more enthusiastic about buying into some of the oversold chinese shares. >> jing, do you think this is the start of a sustained uptrend now in the chinese economy or is this just a rebound after the selloff? >> i think things are actually stabilizing in the chinese economy, but most importantly what we're seeing today is a
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dichotomy which is the dichotomy between the service industry and the manufacturing industry or you could say the dichotomy between the new economy and the old economy. in the most recent quarter we've seen the service industry actually grow 8.6%. that is becoming the most important driver for choois gdp. today accounting for 52% of gdp now while the manufacturing sector is actually shrinking only 40% of gdp. so going forward i would expect the service industry to continue propelling the economy forward while some of the old traditional industries will need to be restructured. >> you know, i'm going to ask you about the chinese market the same question i've been asking about our own market here in the united states with our rally. is this more the rally of an expectation of better economic times, in other words, is it a fundamental rally or is it more about expectations of what the central government and what the peoples bank of china will do to help things out?
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is it more about monetary policy or fundamentals? >> well, in the short term monetary policy clearly helps because central banks around the world have been injecting a lot of liquidity into the economies and china is no exception, but in the longer term for the stock market to have a sustained rally we need long-term structural reforms. in china those reforms are going to be very far reaching. everything from population policy, removing the one child policy after 35 years to banking reform, restructuring the state owned enterprises as well as giving capital markets a much bigger role. short term monetary policy absolutely helps but longer term the reform program should begin to bear fruit which would help the market rally on a more long-term sustainable basis. >> and even longer term than we have of course the demographic issues to get into but for now thank you very much. >> thank you.
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>> let's see, about 15 minutes to go here, dow is now up 17 points, s&p trying to turn policy, the nasdaq still down 10. disney earnings are out in less than an hour. we will have an interview with bob iger. >> only one week left for you to help a very, very good cause and to have a good time with kelly and me. >> support the lulu and leo fund, it goes towards children's education, it's a great cause and one that's close to our hearts. >> you get to come to post 9 at the new york stock exchange, watch us anchor the program, maybe even make an appearance on the program and then we go across the street to our favorite watering hole and have a lie bags afterwards. let me just say maybe even get to meet the man himself art cashin. >> maybe, no promises. we will see how high that tale can go. straightaway to chart we will be back right after this. it's just what you do for family.
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disney the big name after the bell with its earnings but news corp., shake shack and several others also going to turn in their results, our dominic chu has a preview. dom. >> we've got a lot of earnings
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after the closing bell, but here is the cliffs notes version on what to expect. first of all, analysts are looking for disney earnings of $1.14 on revenues of around $13.6 billion. now, the last earnings report there was a lot of concern about the results over at espn the sports network and the future subscriber growth there. watch that for sure. also moving on to news corp. they are expected to report earnings of 6 cents a share on sales of around $2.1 billion. on the consumer products side kraft heinz already got headlines after announcing yesterday they were going to close seven plants and put 2,600 jobs. watch for any color on other operations fronts issues, earnings expected to be 62 cents a share on $6.7 billion of sales there. let's can off with shares of shake shack. they are expected to report earnings of 7 cents a share on sales of $47 million and get ready for a possible volatile stock move, options traders are
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pricing in a possible 8% swing in the stock up or town on the heels of that earnings report, guys, back over to you. >> volatile one. okay, doc, thank you so much. keeping an eye on markets, the dow is holding on to a gain of 5 points. bill. >> and art cashin just signaled there is no imbalance on the close here, nobody is going to go up or down at this point waiting for that jobs number tomorrow morning. a bit of a mixed bag on the market today but heather hughes of sun america funds believes in order forward valuations will continue to be an obstacle for stocks. you pay your car insurance
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all right. six minutes left with the dow up 11 points. we have heather hughes from sun america funds. i guess the market is waiting for the joe bs number tomorrow morning, right? >> yes, that all important jobs data is coming tomorrow. we have always waiting for the sign and what will the fed do if we get another print below 200. >> do you think the market is setting itself up for a strong number with the expectation that the fed will have to start raising rates in december? >> they said theirselves there were hints of that, okay, in december this may have to happen based on our two mandates of
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unemployment at 5.1% and inflation data. i know that global concerns are always on their mind, but there's so many variables. just as many potential events that could happen globally as there are molecules in this earth. nobody can predict that. perhaps we should move on the path forward to normalized rates and see what happens. >> you are saying capital gains could be a head wind for new flow funds. >> in our industry i get many calls during the day what are the capital gains expectations going to be in year. not that they're astronomically high, higher than prior years, but if the market is flat if you have 10, 20% capital gains distributions and all that means is the retail investor holds mutual funds, some of those securities within your woert highly appreciated gains that have yet to be taxed if they were sold. even if you're -- let's put in
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the grand scheme of things if you're married in the highest capital bracket even a 10% gains would mean a net out-of-pocket at the end of the day of 2.5%. so i'm not saying it's a cause for panic but i would not be naive to t either. >> you can get that from a ten years yield by the way. >> 2.2. >> we will be right back with the closing countdown for this nurse. after the bell it's a media earnings parade, disney, news corp. and dream works we will get you those results. you will hear from disney's ceo bob iger. you're watching cnbc first in business worldwide. stickers. o love what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does.
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leaving you free to focus on what matters most. welcome back to "closing bell" i'm seema mody with breaking news. dupont according to reports is in two separate talks with syngenta and dow chemical about a potential agricultural deal. this has gained steam after no santa abandoned its effort to go after syngenta. >> we're getting ready for those earnings reports including from disney and you will hear exclusively from bob iger. i'm sure he will talk about the new "star wars" movie set to open next month.
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we are going out with a decline of about 1 point on the dow. stay tuned for the disney earnings, we have 3 m ringing the bell at the new york stock exchange and the ceo of stellar biotech nolgs at the nasdaq. here comes the second hour of the "closing bell" with kelly evans and company. see you tomorrow. thank you, bill. welcome to "closing bell," everybody, i'm kelly evans. here is how we're finishing up the day on wall street. the dow looks like it couldn't quite stay in the green, going out a with a slight decline of 2 points, same thing with the s&p 500 the nasdaq gave up 15 points, the s&p closed right on the dial at 2100, the nasdaq closing at 5127 and now investors are bracing for a barrage of big earnings. let's get to julia boorstin and morgan brennan and seema mody
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hungry for shake shack's results. thanks to all of you. we will have much more as they start to cross the wire. joining today's panel we have our own mike santoli and cnbc contributor carol roth, steve grasso will also join us shortly ever off the floor. welcome to you, mike. what do you make of this market? still the consolidation phase you were talking about? >> yes, and a gentle one at least at this point. if you were bullish come noog this week this is the kind of consolidation you want to see. still choppy, a lot of air pockets, a lot of stocks getting blown up when they don't deliver and facebook did hog all the oxygen today in terms of the upside, now it's stalling near those old highs, 2100 level we've crossed it 50 days this year. >> i think it's interesting that so many of the high quality momentum favorite names are getting close to their 52-week highs. whether you look at the fang stocks, some of the consumer favorites out there like the
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nikes of the world they're knocking on that door. it will be interesting to see if they can break through and being the contrarian always i'm not sure that they can. >> mike, this goes back to what you were talking about earlier, this is the companies -- especially the tech companies but touches on president consumer, these are global tech platforms. >> yes, amazon, also visa, that pretty much describes most of them. also like an autozone. there's a consumer name that everybody seems to love and people crowding into it. i think what you saw today was the banks rallying and leading the way. the treasury curve is adjusting to this greater likelihood of a december lift off in rates and at least the banks like it right now and the rest of the market is at least an sore be the possibility. >> how many times have we heard -- we've been hearing that the banks are on the cusp of the break out, that the rates are going to rise, they're going to benefit. some of them are trading at less than book value at this point in time. it will be interesting to see. again, contrarian, i'm not sure
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that they are going to be able to get there quite yet. >> i totally agree the only reason to like the banks is if in fact the fed does move. you can't just have the expectation and there have been false starts on that, but if december goes you at least have the fundamental backdrop for it. >> if we're talking about a steep yield curve which is the best for banks to make that differential there is a couple ways we can get there. one is that the fed raises the short end and the assumption is that then the long end raises as much or more. the other thing that could happen is that people's inflation expectations and growth expectations on their own could rise and steepen that curve. i wonder which of those two things is happening or even if those two things are working together. >> i would say the former is probably more likely than the latter. >> right. >> where you're seeing the more direct impact is the charles schwab's of the world, those stocks where you have huge cash balances that the broker earns something off of and money market type accounts. that's what the direct impact s
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the steeper yield curve that would be great if it happened. >> that's why i raised t i do wonder -- we welcome steve grasso off the floor. talking about the ten years, 30 years upon which our mortgage rates depend, our pension obligations depend. if that all can get lift off, so to speak or if the fed moves maybe the economy can't support it, you never know those rates could stay roughly where they are. >> i think it's more concerning that the fed hasn't lifted off already. what are those actions or lack of actions what has that told us in the marketplace? i think that's more troubling than anything else. >> what about the jobs report tomorrow? >> well, that's -- this is the big thing that everyone is looking at during the course of the week, i think that's the biggest data point that we are going to see. unfortunately -- unfortunately it's always the biggest dat point. that jobs data will be the biggest employment data. >> here is the issue, though. we will likely see that jobs data -- retailers are expected
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to have a great season but you have to look at the quality of the jobs and when i see so many of these big companies -- >> it doesn't even matter. i think the biggest thing -- >> it should matter. >> it definitely should. but i think if we start getting in the weeds about the quality of jobs it's a whole other witch-hunt for us to every defer. >> this isn't the same old quality discussion we've been having. there is a new wrinkle relating to the gig economy. i was speaking with gary cone of goldman and his view is that, mike, you have people taking gigs but aren't emblematic of a truly healthy economy. >> it's the establishment survey that you get the nonfarm payroll number from, that's somebody who is an employer who is saying this is how many people work for me. there's structural changes that the job numbers have not captured. >> we're starting to get the earnings through. let's get over to morgan brennan with dream works. >> a surprise profit from deem works for the quarter.
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an adjusted gain of 2 cents per share, analysts had been looking for a loss of 5 dents per share. revenue also beating $259 million versus estimates of $206 million. now, in terms of some of the information some of the headlines here, strong performance of home in the home entertainment window that helped drive revenues in the feature film segment 11% higher, the television segment revenues more than tripled year over year, consumer products revenue more than doubled to $27 million so taking a look at shares of dream works they are up nearly 3% in the after hours on a top and bottom line beat. back over to you. >> all right. morgan, thank you so much. we're also getting shake shack results as we can see 12 cents x items which is 5 cents above the consensus forecast. our seema mody has more on that one now. >> it's a big beat from shake shack, kelly. $53 million in revenue versus the $47 million estimate. earnings blowing past expectations 12 cents adjusted
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versus 7 cents. the company also raising their guidance you can see the stock is moving after hours up by 3.7%. kelly, back to you. >> thank you. two movers to the up side, not that they have to do a lot with one another but shake shack and dream works. >> from shake shack's standpoint there is the potential for a short squeeze here, big short position. that being said i still do not buy no pun intended as a long-term investor the valuation for this company. their valuation is absolutely insane, they're being valued as a -- almost like a tech or momentum stock. this is a restaurant company that has to open new units or in their case they are doing a lot of licenses which means in those cases they are not actually owning those units so i think that you will see perhaps as we saw in the after hours some movement on the stock, but as a long-term investor it reminds me a little bit of the krispy kreme story, you will people lining up around the block and there was going to be a krispy kreme in every neighborhood, but at the
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end of the day there is a certain kind of pattern to restaurant valuations and i just think this one is so far out of the realm of reality that if you are a long-term investor you wouldn't want to touch this with a ten foot fry. >> mike, what do you think? >> i definitely agree that it is valued as if these things are going to be there's going to be hundreds of these. >> scaleable, like burgers have scale abls. >> there's so many restaurant concepts out there and they have not worked out, you had the nood else and companies, the papa murphy's all of these had a great story to start out. shake shake at least a distinctive. the stock was up 5 to 6% from 2:30 to 4:00. >> it's up number 5 perspective after hours. a bigger mover is dream works. steve, thoughts on dream works. >> it was always dependent on their latest and greatest hit, that's the way you valuated the company, now there's other
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streams of revenue, tv, streaming, new media. i think the more they can cloud that picture of how you valuate the company the better it is for them moving forward. it's up 20% off the recent lows, it has had a pretty good pop. >> now it's popping 10% after hours, too. >> if you're long maybe you trim into this. as long as they can cloud that picture maybe you can grind sideways to higher. >> if you think about dream works in the content space and the content library and the potential for franchises, which are really i think the key investment thesis if you are going to be media, i don't know that this is the name. i mean, it certainly doesn't compare with a dice knee which i know we're going to talk about in a little bit. >> i would simply say $2 billion for, you know, some relatively unique content is not a big number in a consolidating media space. >> dream works now up number 13%. we're getting craft heinz results now. let me go back to shake shack, they raised their revenue
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outlook for 2015 to between 189 and $190 million on the high end that's up we will call it 15 to 20 million. same shack sales growth between 11 and 12% so getting more explicit on that, too. interestingly i think they also define their comps as stores open more than two years. >> you have to because you have the honeymoon period when something opens and everyone rushes in and wants to try it and then it comes down so you have to wait that time in order for it to normalize. they don't have very many shacks i guess you would say in their comp base. >> we will have much more after this. let's take a quick break here. before we do that steve levels you're watching for tomorrow? we're talking about jobs, jobs that sweet spot seems to be 170,000, if you blast through that or go higher i think they're hard pressed to actually have lift off in december. they're painted into the corner here so it's not -- it's not an easy doo he significance. >> i've heard that phrase so many times today, painted into the corner. >> it's more troubling that they can't raise. >>er be sure to catch more of steve grasso on "fast money" at
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5:00 p.m. today. disney's earnings called will kick off then. walt disney's earnings are due out any moment now. we will get you the results when we cross the wire and we will speak to steve iger on a first on cnbc interview. keep it here.
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welcome pack. kraft heinz is out with its earnings. sara eisen has the details. >> it looks like it's a little light on the revenue number and earnings per share number. i will share with you the numbers that kraft heinz just reported. $6.3 billion in terms of sales, that was a little less than analysts were expecting. in terms of the eps 44 cents a share, analysts were looking for 62 cents. it sounds like a big miss but analysts didn't knew exactly what to expect from this quarter because this is the first quarter that kraft and heinz are reporting together as a combined public company. their merger finalized in july so this is the first time they have really put their sales together and their profits together and so it was a little tricky to get a comparison. you can't look back on last year on an estimate exactly, but the sales number came in light, the organic sales revenue which a lot of people were looking at to see the strength of the underlying business, the oscar
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meyer meats, heinz kevin um, negative 2%. still a problem with sales growth for this company but the key is going to be how executives talk about cost cutting, productivity and margin expansion. that's been the key to the stock, that's why kraft heinz is up 30% over the last year, it's been a key to the 3 g warren buffet power merger which is what this company is all about right now. so look for analysts -- look for the company executives to talk about that on the call. this is the first time that an list investors will get to hear from the new management since the merger was announced a few months ago. >> at first when you said organic net sales i'm thinking that's a segment now but i see what you mean. sara eisen with the latest on kraft heinz moving down 2%. walt disney's results are out, we will get you the full report in just a moment. larry hafferty is with us, he is associate portfolio manager to react to those numbers. our julia boorstin has the
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numbers. >> disney beating earnings expectations reporting adjusted epa of $1.20 per share, wall street had been expecting $1.14 her share, coming in 6 cents better than expected, revenue coming in at $13.51 billion that's just a hair lighter than expectations. wall street had been looking for $13.55 billion. right in line there just a hair light of estimates. looking at what really drove the results this quarter, this is their fiscal fourth quarter fifth consecutive year of record results. looks like a lot of strength in the media networks, media networks reporting 1.el $2 billion in operating income and that was really driven by cable, cable operating income up 30% to $1.66 billion due to an increase at espn. that's better than operating income expectations of $1.55 billion. that expectation of there being some challenges to the immediate raia network's business with questions about cord cutting really an interesting one here considering that growth at espn
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driving the upside surprise in the cable network's business that's to be a big hot topic to discuss with bob iger in our interview coming up. we will continue to dig through these results and look at what else is driving these results. back over to you, kelly. >> julia, thank you. walt disney shares are lower 2% after hours as i mentioned larry hafferty is with us. larry, a lot to dig through here. your initial take, through. >> from looking at the cable network cash flows, kelly, it's good that espn didn't go extinct. that's the part of the business that people are worried about. now the fun is going to begin. this is the warm up exercise for the basketball game. "star wars" will release, probably be the first or second biggest film of all time. the cash register i think aring will be from the ancillary markets. they've told people they are going to sell $13 million games if there's a 10% royalty that's
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$65 million right to the ebitda line for disney. they paid $4 billion for lucas films. tom staggs i think did the deal and disney used to be pretty good at figuring out how much to pay for things. lucas films hasn't contributed much to disney, i think probably once the first film comes out you are going to start seeing cash flow consolidated in the billions of dollars of area and this film is not a one trick pony, there's going to be a i believe is that of these films, theme parks and then next year you have shanghai opening and clearly the chinese government is going to do everything they can to make that an enormous hit. i don't know, the only question on the stock, kelly is how high is up. >> well, before we throat away with that balloon let me read about what they're saying wraered to espn and the release. the increase reflected higher affiliate and advertising revenues partially offset by an increase in programming st
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coulds. there was contractual rate increases and increase in subscribers, they had a full quarter of the sec network which launched last august partially offset by a decline in subscribers at certain of our networks. >> people rushed too quickly to the idea that somehow the cable business was falling apart. bob iger's comments last quarter were much more about the way it's going to unfold in subsequent years. i don't know what larry talks about in terms of the studio business obviously going to be getting momentum. by the way also parks up 10% on the top line in the latest quarter. that still continues to be a great segment for them. i don't know if they get after a pass on the cable business for a while. >> have we dee bungt cord cutting. >> i think for the meantime we have. many times on this program i remember when the stock went back to the mid 90s and i said buy, high 90s and i said buy. i think we're getting closer to a level that probably makes sense here, but if there's any pull back i still think it's a
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buying opportunity. i think that people as mike said jumped in to say that espn is done for, they absolutely aren't and i think that in terms of "star wars" from a franchise standpoint the fact that they are going to be opening a "star wars" park in california, there's so many things that this company does right it's incredibly well managed, their content library is immense and then back to espn. if you think about live sports, i mean, that is the reason to not cut the cords and yet there are going to be higher costs associated with some of those contracts but that's not going away. >> larry, i will remind you with a nationals were talking about what ring they would be wearing at the start of the season and totally flamed out. there is no such thing as a sure thing. why is everybody talking about it like the "star wars" is a sure thing and not only in their execution but in their execution up to the ever increasing expectations for the whole movie and everything around it? >> i think that's easy, kelly, it's multi-generational. people like me are going to be able to see this film with their
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grandchildren and i think you have a sneak preview of what happened with "jurassic world." i learned from jeff cats berg that movies are a kmunl experience and you go to a dark theater and you hear that wonderful john williams music you relive your childhood, you relive the childhood of your children, you have a great chance to enjoy yourself, you're going to see it in a crowd, it's a unique kind of proposition. >> the shares -- >> disney is being valued as normal media company right now. >> the shares are selling off 2.5% after hours. there was a slight miss on the top line. why do you think the shares are weaker giving everything that we're saying and what is the valuation? how rich is it? >> i think you can't look at the after hours trading. i don't know who does this, but if you want to buy a ticket on the secondary market for the premiere they are available for $125. that's $125 for a movie ticket. so this just shows you the pent
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up demand. i think what people are going to miss on this and i saw it with my children when the last generation of "star wars" was out is people are going to want to see it multiple times if it's halfway decent. >> got it. >> i think the risk is that it's not halfway decent, but i think these people are smart enough to make sure that that doesn't happy. >> i'm only cutting you and everybody off because we will hear from bob iger himself in a moment. my apologies. thank you for joining us. >> don't go anywhere. we have much more on disney's earnings coming up. bob iger discussing the results on a first on cnbc interview before he even speaks to analysts. stay tuned.
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welcome back. we've got much more on disney's earnings now. let's send it over to julia boorstin who is joined by disney's ceo bob iger. >> and bob iger, thank you for joining us after reporting your earnings, thank you for joining us from your headquarters in burbank. i really appreciate it. >> you're welcome. >> so, bob, i want to jump right in. your earnings per share grew 35% and it looks like a lot of that strength was coming from cable networks, espn in particular. last quarter you raised concerns about the health of the tv bundle and espn. what do you have to tell us no you about e schspn and that tv bundle. >> it was a great quarter up 35% and our media networks were up
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27%, espn was up 30% in the quarter. we also had incredible strength from our studio up over 100%, some of our key segments, parks and resorts, consumer products had strong quarters. the last earnings call we made a decision to update guidance that we had actually given in 2014 about espn subfees and when we did so we also were candid about what we were seeing in the environment at that time and the fact remains that the industry did lose some subs in the last year. now is that a reason for panic? absolutely not. people still love television, they still love espn and they love live sports and, in fact, we are in an environment today where there has never been a greater demand or our brands and our content. so we feel really bullish about our television businesses in particular espn and looking a back on the quarter if we could do it over he we wouldn't, we
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wanted to be candid about what we were seeing. the fact remains that the guidance that we updated back then remains in place today and espn's future, particularly given the array of great programming that they have and the demand i mentioned that's out there in the marketplace for it remains very bright. >> and looking at the health of the cable networks division, revenue up 12% in the quarter, operating income up 30%. as you look forward to your next fiscal year are there any changes to your outlook? do you think that the -- that perhaps the market reaction to your comments last quarter were overblown? >> it we're not going to give any guidance for the year about any one of our businesses or about espn specifically. we're looking forward to a great year as a company. we've differentiated ourselves as a company in many ways because of the array of great brands that we have and great franchises and on the eve of what's our first "star wars" movie we're feeling really good about the year ahead
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particularly led by the studio and the studio slate but marks and resorts and media networks. no guidance for the year and nothing more to say specifically about the espn numbers. i should also sad, julia, maybe it's worth a conversation, that we're seeing a different media environment in general, there's more competition for the consumer and a lot of that competition is coming from platforms that are offering better user experiences and mobility and we think the key to success in media today really three things, you have to have great product, you have to offer a good user experience, meaning the product has got to be easy to end into, easy to use and mobility is really important, particularly for young people. now, we as a company have demonstrated a knack or a real interest in being on the cutting edge of new technology platforms, we're going to take advantage of it as we already are in the year ahead and years ahead. it's that simple. >> so what does that mean we should expect to see from you in terms of those innovations? i know that you're launching
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this disney life app in the u.k., it's a straight to consumer option. what does that indicate about what we might see here in the u.s. and elsewhere around the world? >> well, we're going to continue to use new platforms to place or ak sell our product, whether those platforms are third parties or technology that we ultimately use ourselves, we're launching in the u.k. actually in just a few weeks an app or a service that is disney branded that will have hundreds of movies, thousands of tv shows, thousands of books, thousands of songs, games, for instance, that is disney branded, again, one of the reasons why we are differentiated as a company is that brand disney, it's a direct to consumer product, it's going to sell for roughly just under 10 pounds a month in the u.k. we feel really good about t it's technology that we know is
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leverageable not just across markets around the world, but it's also technology we can ultimately use for our other products. we've talked about this before, but we foresee a day or an era where this company in particular will be able to reach consumer more broadly and more directly and we're excited about those prospects. at the same time we are continuing to do what we can to make the traditional platforms as success as possible in this era, we feel good about a number of the steps that we're taking in that regard. we think that there will be more to come, but generally speaking as we look at the media environment, the opportunities that we have today to distribute our product to reach more people are greater than we have ever seen before and the appetite for high quality branded content has never been more voracious. >> i want to hear you talk a little more about your parks business, i understand you just got back from shanghai.
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what update can you give us on the shanghai park and the planned launch next year? >> yes, we were in shanghai last week on one day that we were there there were 10,000 construction workers working on the property, it's rising quickly from the ground. we expect to open sometime in the spring of 2016. i'm guessing that in the next four to six weeks we will be able to tell the public what date we're actually planning to open. we're not quite there yet. we felt great about this from the beginning. we continue to feel great about it. the opportunity to bring such a great product, a disney theme park to the most populous country in the world, the most populous city there to shanghai is really exciting for us, one that not only we appreciate but we're very excited about in terms of the prospects. it's got a lot of original content in it as well as some of our most iconic theme park experiences like a giant castle and we are already seeing just
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great interest in the marketplace for this product and can't wait to show it to the world. >> your studio has a big quarter ahead with "star wars." what can you tell us? what are your expectations? >> everybody asks me to tell them something about "star wars." "star wars" is premiering in the united states on december 18th, actually it will be available i think at 7:00 at night the night before. we are thrilled with the film, it's got something for everybody. i think one of the great things about it that j. j. abrams has done is he has managed to blend, i believe, perfectly the -- i will call it the old and the new and that essentially means that there's something for the most after dent, the most avid "star wars" fans that are out there but it's also a film that will appeal to people that have never seen a "star wars" movie. it also is a great blend in terms of talent of some of the great stars that led the parade of "star wars" starting back in
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1977 with a whole new cast so in many respects it's a partnership between cast members that are familiar and many that are not familiar with the all. it also has a lot of humor, tremendous amount of heart, a lot of action, just a lot of "star wars" and we can't believe -- actually, we're thrilled with the reaction so far to the trailers we have had in the marketplace and i think that's evidencing itself in advanced ticket sales which have been really strong. can't give away any of the plot right now, we're being really careful about that because there are so many moments in this film that are so exciting and thrilling we want people to experience them for the first time when they go to the movies. >> well, bob, we're almost out of time here i just have one quick final question for all those "star wars" fans out there including myself, where is luke skywalker? he is not in any of the posters. what can you tell us? >> i can only tell you that luke skywalker is in the movie. nothing more.
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>> okay. >> i promise that. we will not disappoint. >> we will have to leave it there. glad to hear. breaking news, luke skywalker is in the movie. thank you so much bob iger. we appreciate it. >> julia, bob, thank you so much. you heard it right there, luke skywalker in the movie. let's get a round up of all the other after hours earnings with seema mody. >> we have a lot of big movers. monster bench, a solid beat $757 million on the top line versus the $736 million estimate. a 3 cent beat on its bottom line. this is a stock that has been an outperformer this year, up 35% year to date. moving on to tablo software, 14 cents adjusted versus the 7 cent equipment. $171 million versus the $158 million estimate on its top line. it's a beat from tabloar software, adding more than 3800 new customer accounts.
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weight watchers 38 cents adjusted verse urs the 29 seventh estimate it's a beat on the bottom line as well as the top line. it's increasing the yearly guidance even though the stake from oprah increases president amount of shares outstanding. weight watchers up 9% after hours. finally let's end with news corp. 57b cents adjusted versus the 6 cent estimate on revenue. news corp. up eight-tenths of a percent after hours. >> a lot of movers. time for a cnbc news update. let's get over to sue herrera. >> here is what's happening at this hour. new york attorney general eric snyderman is investigating whether exxon mobil deceived investors and the public regarding climate change risk. exxon responded saying it rejects allegations it suppressed climate change research. britain will resume flights to sharm el sheikh tomorrow after agreeing on additional security measures with cairo. british prime minister dominic chu holding a news conference
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with egyptian company a sisi after hosting the president at 10 downing street. adidas announcing an initiative to help high schools get rid of native american mascots. they will provide free design and financial assistance to schools looking to replace those mascots. taco bell did irk it out after making good on a world series promise. the restaurant chain had promised if a player stole a base anytime during the series everyone in america would get after free taco. a base was stolen so free breakfast crunch wraps were up for breakfast this morning apparently. >> is missed it. >> i did, too. who knew? >> to late. >> back to you. >> thank you. sue herrera. >> whole food shares getting hammered after increasing organic food. >> translator: competition taking a bite out of their sales. er how whole foods is trying to differentiate itself from vie valls. find out how the rise of outside money is forcing many presidential candidates to loser
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control of their campaign messaging we're back in two. 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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so wi got a job!ews? i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition!
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whole food shares sharply lower today after reporting disappointing earnings largely on the increasing number of stores also offering organic groceries but whole foods is doing its best to stand out in
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the increasingly crowded field. jane wells has the details. >> kelly, part of the turn around strategy according to management is to continue to differentiate whole foods from rivals because they really do think their food is just plain better. so while everybody and their brother is now selling organic whole foods has added an additional rating system called responsibly grown. to qualify for that program as good, better or best suppliers pay two subscribe to a whole foods website and answer questions about things like pesticides and other organic stuff but also water conservati conservation, energy use, treatment of farmworkers and nonorganic conventional farmers can't qualify for those good, better, best ratings. >> we're trying to get into topics that are not offered by organic specifically and it also gives us an opportunity with our nonorganic suppliers to dig in and recognize their top iks we need to address that customers wants to know about, pesticide use, soil practices, et cetera,
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that many nonorganic growers are doing a good job on. >> all right. now, when they first rolled this program out last year they rank ld a lot of organic farmers who said we are already growing responsibly and why should a conventional farmer get a shot at a getting good rarity. whole foods said it's not better or replacing certified organic it's a complimentary layer or complimentary label. more from matt rogers rogers on all this week i have been doing a series of stories looking into organic, what does it mean to be organic, how closely are farms inspected, how much of this is based on trust. we will have one final story on the web tomorrow is organic better. back to you. >> i love it. much more information as you said for people our jane wells. up next, katie cog will join us on their take on what's ahead for these markets and you will hear the r word for another goldman exec. ach can quickly
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become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.
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earlier today at the 15th annual g sam symposium i spoke to gary cohn. here is what he had to say about how worried he is about a recession. >> i'm worried about a recession, i'm not obsessed about a recession. i think that the u.s. consumer is doing their job and i think the u.s. consumer is going to continue to do their job. the great news for us is that we have very low commodity prices
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and our u.s. consumer does a great job of everything they don't put in their gas tank and everything they don't put on their table to eat they put right back in the economy and you've seen it in aubl sales, durable good sales and the u.s. cbs continue to shop. as long as our u.s. consumer still feels like they are okay, whether they are in the w-2 work force or 1099 work force or the unemployed work force i feel like they are strong enough to keet keep the economy muddling. we are definitely in this muddle away. >> i asked him what about the federal reserve raising rates for the first time come december. here are his thoughts. >> what do you think happens once the fed begins raising interest rates. let's argue this they do so starting with 25 basis points in december. >> you're really asking me a question about the path and where do i think they're going to go from here. in my view if i'm not view where i don't think they should raise rates but i can see that they have to because of their credibility issue so they're going to, i will concede, my view is the path will be very
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shallow and very long and, therefore, this will be an ee long fated period and i'm also of the view that within moments of them raising rates they will add a word we haven't heard for decades in their vocabulary, a word called lower. >> a word called lower. joining us is another goldman sachs it executive katie koch. great to have you here, katie, welcome. >> thanks for having me. >> let's talk about the knock on effect. he was focusing on macro conditions in the u.s. what about emerging markets? >> yeah, so we continue to be pretty constructive actually on emerging markets. the narratives obviously very challenging but like most things in investing the narrative ultimately snaps back to valuation and these countries are now trading at a 30% discount to develop markets. the only caution i would give you is that it's very important to know what you own and own what you know and in our case that means being very selective
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at the company level. >> speaking of that one of the other themes we hit on quite a bit was this idea of how long is the wind toe, quote/unquote, open for a company like uber to go pub i can will. gary's point is it's a company that is disrupting the way we do business so it has time. how else do you identify companies like that this might be good investments regardless of what happens in the rate hike. >> in emerging markets i think it's being uncontaining yourself from what's even in the index. there 50% of our portfolios not even in the listed index. in an em context we avoid things like state-owned inter surprises but they act in the interest of country rather than the shareholder. so much more focused on shareholder companies. you picked up on technologies. i'd extend talking about emerging markets in china specifically to say this is a country that despite the macro being pretty challenging and i'm happy to talk about that in detail actually micro bottom up we see things in the tech sector
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like e-commerce which we're pretty excited about in china and own in our portfolio. private companies, entrepreneurial. >> what about some of the big brands? one of the things that was interesting to me about china was some of the marquis brands like a name like nike it seems to me like the chinese consumer that's what they're willing to trade up for. is that a thesis you are holding as well throughout emerging markets. >> we like nike and own that in our u.s. portfolio. that's more of a beneficiary of the millennials theme and that generation liking a healthy lifestyle. china 60% of their sales come out of the u.s. china is part of that but they have some strength domestically. going back to chooib not only can nike win there. also i would say local companies that are able to target the mid and lower consumer that maybe they can't afford nike but they can afford ante which is another athletic apparel company in china that is doing well that is a theme we have ex poesh tour to
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in our portfolio. >> there is this market perception that went from the market should trade with iron orr and then it's like the chinese consumer story seems to be playing out as scripted. is it that is easy this transition. >> it's never easy. if it was easy everyone would be doing it well. actually, what we think as it relates to china is that it is in this transition, it's actually going to probably be quite bumpy, there is going to be periods of bad news, periods of volatility, there's going to be disappointment but in that dislocation lieser opportunity and i think the head line for investors is, yes, consumer definitely looks better than the industrial part of the economy. we are focused there, but again, there has to be the subteams that are the most a trick testify. >> what is the most surprising way you would say to play the millennial theme? >> i would say for us probably financial services and the technological disruption that's in financial services.
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it's possible that this generation of people they may never actually go to a bricks and mortar bank to looking at companies like that could be pretty interesting. >> katie, thank you for joining us. >> absolutely. >> katie koch from goldman sachs. covering the globe for us really. covering the globe for the a market flash on men's warehouse. >> we have an earnings warning coming in from men's warehouse. it sees its q-3 earnings between 46 to 51 cents well below the prior guidance of 87 cents. the decrease was driven by a decline in traffic as the company begins transition away from the buy one get three promotional events. in addition to that, q-3c comps up. >> that is a tough one. thank you. donald trump known for his outlandish comments.
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the other candidates running for the republican nomination are losing control of their own campaign messages. we'll talk about why and how. that's next. ♪ 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. ♪
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welcome back. breaking ne breaking news on united airlines. >> united continental holdings said its chief executive officer oscar munoz will be back to the company in the first quarter of 2016 after his recovery is complete from his heart attack. that was also contained in a letter that mr. munoz delivered to employees. he thanked them for their support and looks forward to being back with them in 2016. >> thank you. the republicans running for the white house in 2016 are increasingly losing control of their own campaign messages. >> that is because of the increasing reliance of super pacs in the campaign trail. in the last election cycle, super pacs were this grand experiment going on where you could donate unlimited money to them, but they couldn't coordinate with the presidential
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campaigns directly. that meant the presidential candidates had to appoint their aides and confidantes and trusted insiders to run these trusted super pacs and not talk to them about television spending, hiring staffers, doing all things campaigns used to do. take a look at this stat pulled together last night. it gives you a sense how many money super pacs are spending on the republican side. outside ad money on the republican side on tv ads, $42 million. that's 95% of what has been spent. the super pacs dwarfing what the campaigns are doing. $400,000, just 5%, a different race on the democratic side. one of the questions coming out of this campaign cycle is whether these super pacs are effective or not. particularly because they have to spend a lot more money on television advertising than the campaigns do because they don't get the same discounts from the tv stations campaigns get.
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a lot of debate inside political circles over whether or not this is working. >> the first major cycle where it's coming to the fore. thank you. >> you bet. the jobs number for october is out 8:30 a.m. eastern time tomorrow. we should have a countdown clock. what to watch next. >> steve liesman will have a cnbc exclusive interwu with chicago fed president charles evans.
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the great beauty of owning a property is that you can create wealth through capital appreciation, and this has been denied to many south africans for generations. this is an opportunity to right that wrong. the idea was to bring capital into the affordable housing space in south africa, with a fund that offers families of modest income safe and good accommodation. citi got involved very early on and showed an enormous commitment. and that gave other investors confidence. citi's really unique, because they bring deep understanding of what's happening in africa.
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i really believe we only live once, and so you need to take an idea that you have and go for it. you have the opportunity to say, "i've been part of the creation of over 27,000 units of housing," and to replicate this across the entire african continent.
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don't quit your day job yet. that's the title of our even carol ross new show on is this like a "shark tank" thing? >> it's almost like a pre-"shark tank." entrepreneurs are the back bone of the economy. so fail to succeed we want to get entrepreneur hopefuls with that great idea and say is this something, whether your hobby or side job, something you should leave your job and pursue or maybe you shouldn't quit your job yet? >> before money changes hands. >> sometimes we get them at that stage and sometimes we don't. we have some with great ideas, some with not so great ideas. we always have good take aways, even if they don't take my advice. i leave them with pieces of advice to make them more
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successful. tune back in to "closing bell" for a whole wrap-up for you. "fast money" begins right now. thank you, kelly. "fast money" does start right now. live from the nasdaq market site overlook new york city's times square. >> valeant plunging. kate kelly with a special report. the apple rumor mill kicking into high gear from reports to sky high apple watch sales. we are separating faction from fiction. china may be back in a mull market but there is worrisome signs hiding beneath the surface that could spell trouble for the


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