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tv   Closing Bell  CNBC  November 20, 2015 3:00pm-5:01pm EST

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chipotle is dealing with an e.coli break out, this could be a bigger deal for the stock as we're seeing in today's session. that's tonight at 5:00 on fast. >> it was great to be at the nasdaq i'm off all next week. >> have a good week off. >> "closing bell" starts right now. welcome to the "closing bell" on this friday, i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth. big gains for the stock market for the week. now, if the s&p closes at or about 2089 and we are a little less than 3 points away from that this will be the best week of the year for the boarder market. we will see whether stocks can hold on to these gains for the close. for the dow we are well off the highs, it had been up 182 points at the peak, now up just 67. this is an expiration date. it is the third friday of the month so we could get volatility
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at the end of the day. >> take a look at nike, that's been a big help to the dow, popping after yesterdays stock splint, they told it about it after the bell. we will tell you why much of the streets still bullish after all of these moves. >> when the last time a company split their stock in it happened all the time in the '90s. >> it started to happen a little bit once we got that round after 2009, things started to come back. apple obviously did it and there was another example of a company that was under pressure to increase its financial moves, return capital to shareholders, now nike following suit. a lot haven't and the average price of the stock is higher than it has been historically. >> as the hackers group anonymous takes aim at isis in the wake of the paris terrorist attacks we have a former member of that organization, of anonymous joining us live to talk about whether the war on terror will be won over the internet and whether silicon valley should be sharing its information with the government.
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>> but first let's kick things off with breaking news on chipotle. dominic chu joins us with the very latest. >> what we're watching right now, again, chipotle shares to catch you up, the shares are down about 8%, just hovering near their lows of the day so far, this after a couple different pieces of news came out. the centers for disease control posted their website, you can go to that seb site, this idea that they've added three additional states with regard to the e.coli outbreak as people possibly infected with that certain string of e.coli that was included in washington and oregon that shut down chipotle stores there earlier on. now, the states if you keep tale now include california, minnesota, new york, ohio, oregon and washington, a total of 45 people in that statement from the cdc say are infected with links at least to that same strain of e.coli that was in washington and oregon. they also say evidence suggests
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that the common meal item or ingredient served at chipotle restaurants is the likely source of this particular strain of e.coli. chipotle has responded with a statement dated today saying it is working closely with health officials and it is not unusual to see additional cases after the first ones have been reported. now, in an official news release chipotle says, quote, we take it incident very seriously because the safety of our food and well being of our customers is always the highest priority and, again, we also kind of want to bring you up to speed they say we offer our sincerest apologies to those who have been faegd. as we watch what happens throughout the course of this last hour of trading it's going to be important to see how these things finish up. over the last three months chipotle shares have been under intense pressure because of this e.coli related tok move. we will bring you more details as they become available. certainly a stock to watch for traders, guys. back over to you. >> dom, thanks very much. let's tale this week's rally.
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bob pisani right behind us on the floor of the exchange. as we said earlier, it's amazing, this could be the best week of the year if the s&p can hold these levels. >> last week it was the worst week of the year. i was standing exactly in this spot last week -- put up the s&p 500 for the last couple weeks, the s&p was down 3% on the week and a week later the s&p is up 3%. we are exactly where we were two weeks ago. when i was standing here exactly a week ago the vix had gone from about 16 to 20, the volatility index, now it's gone from 20 to 16, do you get my drift here? we've gone exactly back where we were two weeks ago. now, here is what's interesting. some beaten up sectors have done remarkably well this week, etf gainers for the week, emerging markets have come back, so brazil -- they haven't had a week like this in ages, brazil has been straight down, china
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internet stocks strong there, aerospace came whack in a big way, obviously aerospace and defense big because of what was going on over in france and the retail sector was especially strong because the discounters came out with earning that were better than people anticipated and all the fears that department stores were going to be bad for everybody else really did not materialize. we saw select retailers bouncing back and of course nike ask having a grade day today. global markets also did really well. so germany was up over 3%, that hasn't happened in a long time, they did really well, france up 2.1% as well and sprain up 1.8% for the week. my stock of the week i'm going to call for square. here it is. remember what happened here, $9 square was, $9 was what it priced at, $12 was the median, it opened at $11.20, traded
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almost as high as $15. there it is, two-day chart for square. right now down just fractionally $12.71. a big sigh of relief in silicon valley over this. if this would have opened at $8 after pricing down from 12 to 9 everybody over there, all of those unicorns waiting to go public over there there would have been a bit of an earthquake. a lot of relief that even though they had to price it undo, give people a discount, the stock itself has been behaving very into isly in the last two days. >> bob, we have to leave it there. why have we basically cut our gains in half just on the session today? what are you hearing? >> i'm not hearing a lot. there's just kind of a quiet sense of exhaustion on the big gains that we've seen on the week. all the sectors are down just about the same here, we have seen oil move a little bit, we've rolled into basically a new contract. it's pretty much across the board slight decline. >> thanks, bob. bob pisani on the floor for us. now to the biggest mover of that
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dow today, it is nike. sara eisen joins us. >> for nike investors the holiday presents came early this year. investors got the $12 billion buy back, a 13% dividend increase and a two for one stock split. on top of that helping to fuel a, what, 5% rally in the stock today to all time highs cementing niek's spot at the top of the dow jones industrial average. nike has been able to avoid the retail slump thanks in part to the strength in athleisure, it's trendy, it's growing and it's a real stand out in an otherwise sluggish apparel environment. also they have had pricing power, charging more because their innovation machine is alive and well and the company has been revamping its comply chain to make production and distribution more efficient. all of that has helped profitability and margins and also global strength. with nike particularly in china and western europe those places
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where many other companies are having trouble growing nike is posting double digit both in both geography. why analysts remain bullish, 84% of the street says buy nike, that's the highest percentage it's been in years despite what is a high valuation at this point for the stock. >> it's interesting as well to see just how bullish people still have on this name. when everything is working on you, when you basically pulled every lever, you know, it becomes ever harder to increase the price, but yet the sell side largely remains bullish. >> there is a few factors behind that. there are catalysts, for instance, the olympics, whenever these big sporting events happen nike ramps up it's innovation machine and you see that in terms of a boost to sales. the other big thing that people say and we called talked to an analyst at jpmorgan, they said athleisure is a general trend
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toward health and wellness that millennials are choosing when it comes to all sorts of consumer products including food and he doesn't see it as a trend going away anytime soon. as long as nike continues to dominate the category it should continue to do well. those are two reasons why the bullish beat is intact even though the stock is near record highs and up 40% so far this year. >> companies in this category can be trendy, but that can be the kiss of death sometimes, you're trendy for a while and then fall out of favor. nike never has fallen out of favor, the swoosh still hot, just do it is something that people say whether nike still uses that in their ads or not right now, but they still have held on to that cache of being an apparel maker >> in retail and fashion trends can change easily. it really has undergone a growth spurt over the last year or two,
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it hasn't always been like this and that's part of some of the supply chain efficiencies i talked about, it's also part of china, bill. nike was struggling in china for a long time breaking into that market. that turned around in the middle of last year, it's been able to trump some of its competitors and started to grow double digits in that market taking share from other global brands and adidas has been falling behind. a few things have added up for nike as well as the broad strength of the category which was list lifted the nicies and under armour of the world as well. >> sara eisen there. let's get to our "closing bell" exchange for this friday as we close out a pretty strong week for the bulls. jim khan from wealth enhancement group, peter costa and rick santelli will be checking in from chicago as well. as bob pisani pointed out our worst week of the year last week, best week of the year this week potentially.
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last week we were absorbing that strong jobs report, maybe getting used to the idea that the fed was raising rates but this week with the strongest week it became even more evident that the fed is likely to raise rates next month. what's going on? had. >> i think investors are finally getting comfortable with the potential of a rate rise in december. like i said, i'm still not sure about that, but do you know what, as far as the investments are concerned, you know, the economy is doing fairly well, you look at the earnings mostly across the board, most of these companies can pretty much absorb a little bit of an increase in their borrowing wost st coulds. it's not going to be the end of the world. if we have a 25 basis point rise in december, if they can come out and say that we will probably have another rate rise at some point in the first quarter of next year, you know, clarity would be very good, it would help a lot of people understand what it's going to mean to earnings going forward. >> rick, a quick word here as we keep an eye on why these stocks are moving off their lows, some
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people were chattering about fed moves today. >> listen, i know the stock market had a good week, i like the way bob talked about it in the matter of a couple weeks down 3%, up 3%. the market may be getting more comfortable from an equity perspective, but we're still a couple weeks away from the meeting and i contend investors are a little trigger happy but they are not contesting the move. let's face it, there's a lot of liquidity in equities at least for the most part. i'm not sure how many conclusions we can draw from that, but if you look at the markets it's rather compelling, there has been major flagging no matter which part of the curve you combine with any other part of the curve, they are all flattening and that indeed is due to the notion that there may be a fixed income comfort factor there and of course when you look at what's going on with the dollar it's going to pay attention to what rates are paying attention to. how it turns out for equities is anybody's guess. that's why normalization is so
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important. we all hope it holds all its gains and moves even higher, but that comfort factor, that knowledge still is allusive because of policy. >> jim khan, where do you put your money right now? if we are all guessing rates will go up do you go with the defensive plays or do you stick with anything that you feel is growth oriented right now? what are you doing? >> so i have to disagree with rick a little bit. one of -- our clients are asking us questions that are similar, what's going to happen with equities if interest rates start to rise. if you go back and look at the last four cycles of tightening equities have done quite well. if you look at the underlying reasons why it goes want to comments by fed member bullard which is they are going to respond to the data. they are unlikely to continue to raise rates in an economy that can't handle such a hike. if the expansion is accelerating as opposed to contracting you
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should see corporate earnings and margins respond positively to that. over time you see higher margins at the end than the beginning. we are right at the beginning and we would expect when we get into 2017 and rates have gotten to what's more of a normal level that the equity market is going to be meaningfully higher. we are not afraid of equities in the face of rising rates. >> that is counter intuitive. i appreciate your perspective on that this hour and everybody. thank you for joining us. >> we have breaking news. we have to go, guys. that breaking news involves airbnb. dom chew back again. >> the latest valuation i rounds, airbnb is looking to raise about $100 million in its latest funding round and that that valuation would be $25.5 billion. again, a $25.5 billion valuation selling $100 million worth of its own capital here to raise that money. again, airbnb sees revenues per these sources of $900 million for 2015 and they do say that airbnb booked 23.8 million
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rights in the third quarter versus 11.3 million a year ago. this latest talk about unicorns, this time airbnb and uber who some out there say shouldn't be included with unicorns, in this case airbnb saying -- at least dow jones saying they have raised $100 million values the company at $25.2 billion. >> we heard jim cramer say this week that as he looks at some of the valuations of these companies, airbnb may be the only one that really is worthy of it. >> we saw a difference between the private market valuation of square and what it was when it finally came to market, too. we have to keep that in mind. we have to go at this point but we are heading out to -- with about 45 minutes left in the trading session with a gain of 77 points. >> we're moving a little higher here, still off the highs of the session. coming up health insurers rebounding from yesterdays losses, we have bertha coombs helping to explain that reversal. >> one week after the worst
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attacks on french soil since the second world war parisians are getting ready to honor those who died in the terror attacks with an outpouring of noise and light any minute now and we will take you live there when we come back. when you're not confident your company's data is secure, the possibility of a breach can quickly 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. you ppremium 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.
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france is preparing to commemorate the fallen in last week's terror attacks with an outpouring of noise and light. >> our chief international correspondence michelle caruso-cabrera covering this important story in paris for us tonight. good evening, michelle. >> hey, bill, hey, kelly. we are just about a minute away from when parisians and french people were going to mark this moment one week ago when the first bomb went out, but it is not going to be a moment of silence, instead they are calling on people to make some kind of joyous noise, to make light, to light candles, to do something. the hashtag on twitter is 21 h 20, to mark the time, remember, here in europe they use military time or 24 hour clock that would be 8:20 in the evening.
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we're seen here lots and lots of people gathering, earlier we saw people holding hands, people even dancing. this is the one place where people are going to be allowed to gather in mass because under the state of manual that was extended today by the senate people are not supposed to gather in large crowds. we are about five seconds away. let's see what happens. we don't know if there is going to be a lot of noise here at the place or where else in france at this point, but this is the moment now when the attacks began one week ago tonight.
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>> you can hear music in some places, we set up cameras all over paris. here is actually pretty quiet, but we can hear the national anthem being sung somewhere about a block away. this particular place has been the center of mourning because the bataclan theater which is just a couple blocks away is where the most people died, 89 people, the cafés where people died are just a couple blocks north of me. we should also say that today the death toll rose by one person from 129 to 130 people today as a result of the attacks. remember, there have been many people still in critical condition in the hospital. all of this week.
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we can hear it, michelle, growing louder there behind you, i'm wondering as well what we know at this point about the response from european leaders to continuing to accept refugees across the continent, how that now as the week passed is continuing to shake out. >> it's been an incredibly difficult conversation. paris is very divided, france is very divided, europe is very divided at this point. i heard angry words against angela merkel today because she wants to continue to accept refugees whereas in other parts of europe, particularly in france, they are quite concerned about knowing who is coming into the country and concerned that the borders and the checks and the intelligence sharing just isn't good enough to keep the people safe. there was a headline in the paper today, kelly, that said the cause of terrorism, open borders in europe. so there is a threat to this
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concept of people being able to move freely from one european country to the other even if they are holding a eu passport. for so long we talked about whether or not the euro was going to hold together as a ens considery, now we're talking about whether or not there is going to be open borders. one member of parliament said to me today, look, if they can't keep the borders secure in this block of countries we are going to have to keep our own borders secure in this country. so the tenor of the discussion has gotten quite, quite difficult. >> i was just thinking that. yet another challenge to the structure we know of the eurozone. let me ask you quickly. it would seem to be unrelated but maybe not, the attacks in mali, of course, as a former french colony, but the malien government has been outspoken in its -- i don't want to characterize it too indelicately but their thoughts on islam and
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the reasons for the attacks down there. anybody in france feeling an extra -- a kick because of that right now because of the attacks down there? >> yeah, the country was gripped by it, bill, because, remember, close relationship with mali for many years, it's a former colony of france, two years ago french troops went in at the request of the government of mali to help them try to regain control of northern part of the country that had been taken over by islamic jihadists and extremists. it took them about four months and then most of the french troops left but there was still about 1,000 on the ground. the french military has been very aggressive in northern africa and so people in france were familiar with what was happening there and saw it as connected to what happened a week ago. first of all, because it happened one week later and also because they know they have had troop involvement there as well.
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>> very good. michelle, thank you as always. michelle caruso-cabrera live for us tonight in paris. >> hacker group anonymous is claiming to have taken out more than 5,000 isis-related twitter accounts thus far. >> this story fascinates me. joining uls right now is greg howe, she was a member of the hacker group anonymous, he is currently with rebel and we welcome you, greg. thanks for joining us today. so many questions for you. let me just say what do you expect anonymous to be able to do as it declares war on isis? how and where will it be effective, do you think? >> the biggest thing groups like anonymous and the other, you know, hackers taking part in this can do is to cut into the recruitment methods they're using online, to cut off their ability to reach new young impressionable people in other countries and for the most part the best thing here is that it's
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legal. they are not having to break the law. they are not having to break into systems to do this. so anyone can take part. >> greg, how much success do you expect them to have, especially as it's been reported isis moved its social network largely from twitter to much more protected areas in the last many months. >> well, they moved a lot of their -- what they would consider internal communications over to systems like telegram but not only has telegram gone in and shut down as many of those they can find that's not a good place to recruit new members. they're using systems like twitter and like facebook and their own websites for recruiting. these hidden places where they happen to be doing their internal talks are kind of a different beast. >> is the plan just to try to expose them or do you think anonymous can go after their source of funding? can they shut down their bank accounts, really hit them where they live, do you think?
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>> i've seen stranger things happen with anonymous, it really depends on who shows up to do the work. anonymous isn't any given group of people, it's whoever shows up to use the name. so it's possible that happens. i think the biggest thing they accomplished, though, is cutting off a lot of the avenues that isis are currently using to recruit foreigners to do these things. >> you mentioned, greg, that there is some of this is which is legal and basically just pointing out to authorities who these guys are. what about parts of it that might be crossing the boundary and using the hacking that they can deploy so effectively to maybe push the line across what would typically be handled by law enforcement? >> well, of course there's going to be that with this group of people and really any of these types of things online. i would say that the most effective is actually the currently legal things of reporting the accounts, shutting down the websites. the hacking, it adds some
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sensationlism, it gets people like me on your show, but in the end i think the most important thing is just to stop the recruiting. the one thing i would like to add that's really important is if you are just a member of the public and paying attention to this and you go and find out where they are and where they're organizing and you decide how to help out, always remember there are legal ways to do the things they are doing, you don't have to go break the law. also remember that everything they're doing is being monitored by every law enforcement agency out there. >> we billed you as a former member of anonymous but you sound very much like a current member right now. i'm curious the big picture question before we let you go, why are they picking this particular fight? they've gob after the klan, other entities that they feel have been at the deficit of individuals. why did they pick this particular fight against isis, do you think? >> there's a few big reasons why isis is a great target for them. one is the fact that they are using the internet so strongly
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to do their recruiting and to do all their propaganda. so that gives anonymous a hook in to do something about it. the other thing is that if you look back historically at almost every major operation anonymous has undertaken freedom has been a big piece of that and i think one of the problems everyone has with isis is the utter lack of freedom anyone living underneath of them has. so those two things put together are what i believe drove anonymous down this path. >> greg, thank you for joining us. >> thanks, greg. >> absolutely. >> we've got about 30 minutes left in the trading session here. this could be interesting. we've really lost a lot of the gains the dow saw early on. up just 79 now. it is an expiration day so we will get a lot of volume, we will see if we get volatility as well. >> morgan brennan there was a special report on four retail stocks posting impressive gains pretty much driving the whole
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sector higher over the past year. >> health insurers are speaking out after united health said yesterday it was considering leaving the obamacare exchanges, we have details on that important story when we come back on "closing bell."
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welcome back. let's get straight to sue herrera with a news update. >> here is what's happening at this hour. greek police detaining dozens of migrants and they dis embark bark from a passenger ferry on suspicion of forged papers. police say the faked
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registration papers have a stamp that meant the holders didn't need to have their fingerprints taken. hillary clinton is calling for a tax cut for the middle class. her campaign says that she will detail new proposals for a round of tax cuts meant to boost take-home pay. to pay for it she will offer proposals that ensure that the wealthiest americans pay their fair share. gop presidential candidate ben carson filing for the new hampshire primary in response to donald trump's comments that all muslims in the u.s. should be registered he said he doesn't think it's a good idea to treat people differently. >> no var 'tis will pay $350 million that it paid specialty pharmacies illegal kickbacks during 2007 and 2012. that is in exchange for inducing patients to fill certain medications. >> back to you guys, sue you in an hour. >> some of the nations largest health insurers are saying that their obamacare businesses are
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performing in line with forecasts. >> bertha coombs joins us with more a day after united health had a different message. >> that's right. you're seeing the reaction today in the health insurance sector, one of the best performers today up nearly 3% on the day. they are basically saying, hey, we knew what to expect on these exchanges, trying to reassure their investors one day after united health lowered its guidance for 2015 and for next year and said that it may actually exit the obamacare exchange market all together because of the losses that it is seeing both anthem and aetna reaffirmed their guidance and anthem's ceo going even further looking to reassure customers as well saying that they remain committed to the individual market both on the exchange and off the exchange and to working with regulators to try to improve the viability and sustainability of those markets. now, of course, anthem and aetna
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also want to reassure regulators because they are trying to secure approval for their pending mergers, but molina health ceo doesn't have that issue. they are moving higher. they are a medicaid operator so they know how to deal with the lower income members and customers and he says we are fine, we are really puzzled by united warning. he thinks that the larger carriers really have to get used to this market. you can read more about this on >> bertha coombs with the latest. the hospitals are moving higher, nike also helping the dow up 85 points in hour, it's going to be one of the best weeks of the year after one of the worst. the s&p adding -- >> we will come back with a leading trader, he will tell you what he's watching in the stock market as we head toward the close on what is the most important half hour of the day and the week after this.
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welcome back. tesla lowered today after recalling 90,000 of its model s sedans for a possible seat belt defect. tesla calls the cost of the
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global recall immaterial. the stock is down just .6% at this hour. >> i'm on the floor with matt cheslock with an eye as we close out the week. what a week it's been on what's moving this market. >> you know, if you woke up monday morning and never thought the market would have done what it's done. it's impressive. one sector we will probably focus on next week will be retail, forecasts aren't so good, we saw retail get pounded last week, have a strong rally this week, we will see what it does next week. >> oil has been weighing on the market. >> eventually they will find reward in that risk. eventually that's -- that sector will probably go up. we've seen healthcare, consumer discretionary perform pretty well. we will find another reason to buy this market up. >> why do you think we are off the highs of the session? is there any concern about the federal reserve? >> no, i think the federal reserve confirmed our suspicions about a gradual raise, that
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shouldn't be a shock to the market. we had such a strong week with so much negative news coming out, the geopolitical and terrorist stuff and the fed maybe raising rates. >> we will get you get back to it. bill. >> all right. thank you, kelly and matt. next month there are two monetary policy meetings likely headed in different directions. while the european central bank says it will not hesitate to expand its stimulus program if it's needed the next fomc meeting of the federal reserve is expected to bring a rate increase, but our next guest thinks a hike in december could lead to market turmoil. greg iff from the "wall street journal," chief commission reporter joining us at post 9 for once. >> hi, bill. >> good to see you in person. >> thank you. >> first just the fact that ecb and fed have different agendas right now, that's for sure.
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>> that's clearly showing up in the exchange rate market where the dollar is appreciating strongly which is spilling over to the economy, why you see the industrial and export side weak while everything else like housing seems to be doing fine. >> that said there is still speculation we heard it on the trading floor is the federal reserve going to raise the discount rate, is it going to wait until december. >> they're not going to move inter meeting, it's only in an emergency they will do that. they will wait until december. it's not uncommon for them to meet and consider discount rate requests, but typically and a meeting the governors then go meet separately then vote on the discount rate. >> first thing i thought was whatever happened to the discount rate. it used to be such an important indicator. >> financial crises -- what really matters you will know we are in a crises again. >> you don't think they are going to raise next month. >> i do think they will raise i'm not sure it's a smart idea we've only had one month, just one month of good wage growth i just don't see what the hurry s
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i would like to see them wait a few more months. in the continuum of things this would qualify as a small mistake into the a big mistake. >> the impact of monetary policy on the question, if they mate until we see wage growth are they behind the curve. >> not in my opinion. i'm flags as far below target as it is now, expectations in the markets also for low inflation they could actually tolerate a couple years of strong wage growth before it threatened their inflation target. >> we will see what happens. you have a new book out called "foolproof" tell us about it. >> it goes back to the days before the crisis and asked why did we have such a severe crisis i argue it's because by did so much to make the economy safer in the 25 years before. we made the bank hold for capital but low inflation and frequent recessions made people take on more risk and more debt and by making the banks stronger a lot of the risk migrated
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outside of the banking system. i think we see this in many walks of life. in football players put on these helmets, this he feel invincible, that's why we have a concussion problem. >> i love those points and the distinction that you make between engineers and ecology gists, a former thinking man will find solutions, the latter thinking those forest fires should burn themselves out. thank you for joining us, greg. >> greg ip with the fall street journal. >> 17 minutes to go here, dow is up 88 points. watching also to see whether this will be the best week of the year. what did we say, 2089 is the level. >> we're almost there. >> basically there. we will see what happens in the last quarter hour. the nasdaq up 29. >> retail has been getting bruised by the s&p 500 still up over the past year. >> tickets and toys for the new "star wars" film are going faster than the millennium falcon's kesel run kelly was
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telling me. i have no idea what that means. we will see how that could affect your holiday plans coming up. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.
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this is more than just a town. this is our home. and small business saturday... is more than just a day. it's our day... to shop small at the places we love... with the people we love. for stuff we can't get anywhere else. and food that tastes like home. because the money we spend here... can help keep our town growing. on small business saturday, let's all shop small. for the neighborhood,
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the town, the home we love. on november 28th, shop small. retail stocks have been getting hit hard of late but
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there may be hope for that sector. >> morgan brennan has been doing digging for today's session. >> there has been a lot of focus on retell, the xrt on track for the best week since january but let's dig deeper and see what's working in the space. so the s&p 500 retailing industry group that's up about 30% over the past 12 months, it is trouncing the broader s&p of 4.3% gain here is where it gets interesting. michael o'rourke at jones trading points out that four stocks have accounted for 90% of that yearly gain. so a.m. gallon, netflix, home depot and lowe's. now, a.m. gallon which is up 128% in the past year accounted for 54% of the industry group's gain, 18%, home depot, with that stock gaining about 31%. netflix which is up 110% over the past 12 months made up 13%
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of the overall move and lowe's added another 5% to retailing's gains with those shares popping about 29% over the past 12 months. now, if you add in the next two biggest contributors, those are o'reilly automotive and autozone and that means that more than 96% of retailing's yearly increase can actually be chalked up to six stocks, specifically stocks that reflect where consumers have been spending their money, internet services, home improvement and auto. noticeably absent, guys, apparel. >> as we've witnessed that's been a tougher one, morgan for now, thank you. >> 12 minutes to go here, dow is up 90, we're edging ever higher, the s&p adding 8 points, the vix lower. >> it's friday, you know what that means? it can only mean david darst and he will be joined by another old friend, oliver porsche when we come back after this. important than your health.
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minutes left in the trading session here as we finish up our conversations during the commercial break. joining us from post 9 here oliver persia and independent investment consultant david it must be friday, darst. good to see you both. so we go from last week which was one of the worst weeks of the year to the best week of the year. what do you make of that? >> i think it's just nervous markets or you had a little bit too much of a sell off probably a little bit ahead, look for a little weakness into into next week. we are all excited for thank giving but you had third quarter gdp, home prices, home sales, inflation data, european data. i don't think next week is going to be a quiet week, you will see volatility, but overall still pretty optimistic going into the last months of the year. >> what do you think, mr. darst? >> i think you want to have a little extra powder on the -- let's hope nothing ever happens again, but there's a heightened level of uncertainty related to
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terrorism, the market has itself very well here and in europe given that shock that's happened in the past, but i think investors were willing to buy last week, i think that's indicative of a better tone to the jobs market, motor vehicle sales, oliver mentioned housing, the inflation number came in at 1.9% for the core consumer price index which is very close to the fed's target so they can raise because of help unless something happens. i think stay with europe, stay with japan, kelly, but have -- it's time to maybe have some powder in case that's one of the best mental defenses in case there is something unpoured that happens that you can put that money to work. >> and the fed is making it even clearer day by day it seems that this they plan to raise rates next month and yet we continue to rally here. >> i think a small fed rate hike is going to be positive for the market. keep in mind one of the things that's been plaguing the globe and markets has been weakness
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around the world. a stronger dollar, so you have the ecb easing further hintsing at it, the stronger dollar is going to help europe economically, help their exports so that lifts everything a little bit and you don't need much at these levels. >> we dee coupled from oil. for a while oil and equities correlated perfectly. now it's almost the opposite here. oil is below $40 this week and -- >> hipg index hit 498 today which is an all time record low for it, it's down 95% from its big peak, 50% this year, i think that's indicative of not only oil but commodities. we've said stay away from commodities right now because of china's reduced demand and brazil's reduced demand, all these emerging markets. that having been said you saw this week coleman and others have begun to turn poll testify on emerging markets and there, again, is this seam of
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selectively. emerging markets in junk bonds, selectively junk bonds, emerging markets, emerging markets debt, real estate investment trusts, you can be in those but you cannot buy the index anymore. >> we will leave it there, guys. thank you. >> happy thanksgiving, everybody. >> happy belated birthday to someone who didn't tell us last week. >> happy birthday from last week. good to see you. >> all right. we will come back with the closing countdown, bob pisani and i. >> after the bell in the wake of those paris terrorist attacks syrian refugee crisis is causing a rift in this country, too, between two "closing bell" regulars we will get into it with barney frank and larry kudlow. that's coming up. you're watching cnbc first in business worldwide. you can't prt the market. but through good times and bad... t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.
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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. all right. two minutes left here. we are heading to a close on an expiration day, the dow up 80 points. bob pisani with me. usually on a friday we would look at weekly charts, we are going to look at two-week charts because of the difference in trading from one week to the next. there's the dow as you pointed out at the top of the hour, you know, the worst week of the year followed by the best week of the year. a gain this week -- actually, we are up half a percent. >> we were down 3% last week, we are essentially up 3% this week.
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i think what people have a hard time, i got a lot of e-mails about this, how could it possibly be, we had one of the worst terror attacks in years and that marks the bottom to of the stock market. >> two week chart of the ten year yield as the yield curves flattens a bit as it gets ready for a rate increase, you can see that over the last two weeks we have gone from essentially 233, 234 town to 226, wti oil this week dipped brief below $40 on the now expired december contract, we are rolling over to the next month starting monday and the volatility index, you were mentioning this, we went from 20 all the way down. we peaked at 20 and now we are back down 5% today to 1603. >> it's a little dis con is certing that the yield curve has been flattening. the long end, ten year has been moving down on yield, the shorter end is moving up. that's not what you really want to see when the economy is
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improving, you want to see a steep thing of the yield curve. we will debate that next week. >> thanks, bob. it's women's entrepreneurship day at the new york stock exchange, they are ringing the closing bell here and at the nasdaq it's members of the sloan school of management at mit. that's the first hour, here is the second hour of the "closing bell" with kelly evans and company. have a good weekend. thank you, bill. we will come to the "closing bell," i'm kelly evans, what a week it has been on wall street. the dow going out with a gain of 92 points, up half a percent, bolstered by nike among others. the s&p 500, look at this one, we needed to hold 2089 to make it this the best week of the year, looks like we are going to just about two that for the bod index, the nasdaq up about 6 tenths of 1%, 31 points closing above 5100. we have our own mike santoli along with cnbc contributor evan newmark and "fast money" trader
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david seaburg. welcome to all of you. i don't think anybody saw this coming monday. >> no. you did have a setup friday even before paris happened we did have a very oversold market it had gone straight down 3% in a week. did you have the makings of perhaps a bounce. it's been stronger than a bounce, i think basically people got comfortable with the fact we made it through earnings season, enough strength among those familiar leaders, the big nasdaq stocks that have been leading the way all year and also just a little bit of reversion to the upside lift from the laggards. >> where does this leave us? what has been the driver last time around, last time around we had google, facebook, alphabet putting in stellar results. what is it now? >> it leaves us in a familiar place in terms of the s&p 500 right at 2100 that's a level marked near the top of the range for most of this year. everyone playing this idea that seasonal strength into thanksgiving is going to work again, maybe it will, there's a
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better than even chance of that, but also the credit markets haven't been celebrating like equities have. i think it's a bit of a mixed picture, but, you know, gdp tracking okay, we got througher earnings season. >> i think the past week the market as mike alluded to slipping into the year-end like a warm bath. and it's the same names, the bank stocks, whatever you want to call them, they've been leading, you know, google or apple -- alphabet, rather, was up 2% today or something like that, the ones that have been good all year have continued to do well and i think that's actually the problem with the market which is you're seeing kind of fund managers chasing strength, trying to make sure they look good come year-end and that i don't think is the thing that takes this market higher, i think you've got to see strength in commodities, in -- >> do you? >> i think you absolutely have to in order -- because either you believe that the global
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economy is going to pick up or you don't. >> right. >> apple is not going to become a 1 trillion indianapolis company that's not going to take the s&p higher. >> so david darst mentioned this last hour but the ball stin dry index being one barometer at historical lows, we know what's been happening with copper and are watching oil closely. i guess it all depends on can you make the case that china is going to pivot towards an economy that needs less than those things. >> or can you make the case that in the commodity super cycle we made so much of it and created so much infrastructure from making all the stuff we have to ship around the world that we have plenty for a while, even for a slowish growing economy, that's another case you could make. >> david seaburg, what's attractive to you? >> i think what's interesting, you talk about the market, there is a level of complacency that exists. you talk about that year-end trade, there is a lot of hedge funds that have been burned and the individual investors are
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relatively complacent with the stocks that have been working for them. we are in a market right now where if you look at the valuations of a lot of these companies it's difficult to find something that looks super cheap and things that are super cheap are cheap for a reason. we're, again, focused on the high quality names, the names that we talked about a million times on this show, but i would say this, i think we're getting to a point where we could see a little pull back even in the high quality stuff. you look at amazon, google, facebook. i love those stocks long-term but i think they will have a pull back here near term. >> i say this, the only stuff i have even been buying and i have been buying a little over the past couple of months are the beaten down sectors, you know, i like oil, i like e and p names, i like buying, you know, just broad exposure to a certain sector, be it precious metals, mining, be it -- it's not because i'm going to -- the globe is going to grow 5%. it's just either the world is
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one of two things, either as mike said you are going to see basically flat to very little global growth over the next few years and it's pricing that in or you have possible upside. >> i wonder, mike, it was having to hear goldman's call getting more optimistic about emerging markets. can we see emerging markets do well with china not so much, can they do anything to be a source of strength for some of these sectors? >> i think you can make the case that just to have some kind of relief, basically they've sold off so much, underperformed for so long you don't have to have things be great for the markets themselves to do okay. if you basically said the dollar is not going to race ahead to huge new highs, maybe that's enough to have money flow back into there for a while. >> it hasn't punched through 100 yet on the dollar index. let's look back on what a week it has been. bob pisani in the middle of the action. >> it was a tough one to explain to people. i want to show the charts we showed in the last hour, the s&p
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500 last two weeks this time last week we were down 3%, it was one of the worst weeks that we had seen in a long time, and now we are up 3%. that's as close to a perfect v as you are going to see. the v last week went from 16 to 20, 20 is when you start paying attention, this week it has gone from 20 to 16 essentially. there's another inverted v that you see. it's hard to explain and people have asked me to try to explain it. the paris attack essentially marks the bottom of the stock market. some will say, well, the europeans like draghi came out immediately and said they would be more accommodative. we did see germany up 4%, one of the best weeks in a long time, even france up 2%, spain up 2%, even emerging markets did very well, so brazil, for example, had one of the best weeks in a long, long time, china was really up nicely, alibaba was up 6%, remember, we talked today, u.s. based china stocks like alibaba going into the msci indices on december 1st. that might have helped a little bit.
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there's your emerging market index. other stocks, big gainers in retail, remember the terrible news we had from the department stores two weeks ago, that didn't happen this week as the discounters like ross stores, tjx, walmart and target all came out better than expected. the bottom line is much less concern now that the consumer is slowing down, that's not the narrative, the narrative is consumer not buying in department stores and certain apparel, that's the key narrative. here is something that really caught my eye today, the noaa reporting that october this year october was the warmest october on record and not only was it the warmest october, it was the warmest month recorded relative to then months average temperature. in order, in simple terms, it was really hot and since a lot of people go to department stores for those clothes, for those heavy winter clothes that helps explain a little bit of why we got such terrible reports from them. >> i was going to say i ran into shorts and a t-shirt yesterday, maybe the day before. there is something to that. the retailers more broadly what
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do you do with them? >> a lot of the old line retailers, gap was up 5% sometime today. cheap becomes worth buying even if just because things aren't going to fall off a cliff. >> i don't love that argument. that's the sears argument. cheap in retail can always get much, much cheaper. >> the reality is -- i mean, if oil goes well under $40 all the energy names are going to go down with it. i mean, that's the reality. the question is, you know, how much down side do you have? in a world in which oil does go to $25 a barrel -- >> you think retail has more down side than the commodity complex? >> i think if you look at much of retail as a secular story as opened to a cyclical story. i happen to believe that a lot of retail is not going to exist in ten years. >> james. >> i think it's stock by stock. the beaten down sector just buying it just because it's
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beaten down is insane. if you look at a name like macy's which has been annihilated think about what happens when we have one snap of cold weather you will see that stock lift and it could move $5. i look and say those are the names you can look at from a trading perspective right now. from a long-term standpoint retail still in a tremendous amount of trouble, especially the malls, which you cited earlier. so i say be very careful, be selective, trade them don't invest them. >> back to chipotle. one of the big losers today, we had that new e.coli outbreak sending the stock lower than more than 10 perspective on the close. >> chipotle stock dropped after a cdc post about an e.coli outbreak listed three more states ro reporting people being infected by the same strain of e.coli as the chipotle outbreak. that brings the total states affected up to six. they include california, minnesota, new york, ohio, oregon and washington. a total of 45 people are
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infected, evidence suggests that a common meal item or ingredient served as chip restaurants is the likely source of this outbreak. chipotle has responded saying it has worked closely with health officials and it is not jushl to see additional cases. the to k closing down on heavy volume, falling to its lowest level since last june, down over 12%. >> let's get to our own jane wells who joins us on the landline, jane, it's significant perhaps especially that the new states include california and new york. >> absolutely. you know, kelly, i think that surprise is perhaps that we don't see more of this considering the move by the american consumer and this whole push towards fresh ingredients, chipotle in particular has been proud of how it doesn't work with factory farms, small farmers, nongmo, not everything is organic but it presses for that sort of thing. all these sorts of things create more stress on the supply chain and you have to be more vigilant about it.
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even though the food to be healthier it could be more at risk to pathogens like this. now you have something from coast to coast and chipotle has said already it is in a deep clean of many of its restaurants in oregon and washington, now it's going to look at all of its food safety procedures and it's brought in two scientists to help them look at this. >> which would suggest it's perhaps a more complex problem than identifying one supplier. >> absolutely. if this is in new york and california, this is probably not the same supplier, although we don't know yet and in fact it has yet to be confirmed that it came from chipotle, no the all of the victims ate there but most of them did, it seems more likely and it's going to call into practices as we go forward just cleaning, cleaning, cleaning this fresh produce. i don't know about you, but when i buy the triple washed spinach in the store, i always say should i wash it again because you just don't know. >> i'm starting to review my own practice. i do triple wash it, but i
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should. >> the way the stock reeked was interesting. after chipotle came out with its own statement it did not stop the bleeding. i feel like the market is not making some sober evaluation that says, oh, this is going to be, you know, x amount of traffic is going be to host from this, but when you have an expensive stock it's based on fundamental momentum. they can't have one quarter of lousy comps. >> it works out to over $40 million it each case. >> wow. >> the stock dropped by almost $2 billion today. it's crazy. crazy numbers, but, you know, if it's systemic then it makes sense, if it's not systemic then it doesn't. >> david, what would you do with it here. >> i will say i absolutely got it wrong when it was at 600 bucks i thought it was a buy. when they originally shut the stores down, i think it was 34 in question, they were closed for the entire quarter, the rest of the quarter it was only like a 10 kent hit to earnings. this brings into question in a
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completely different light. i'd say i was wrong at 600 bucks, i'd say stay away from the stock until we get more news blow off a little bit. >> there's more coming up with seaburg with "fast money." they're asking could google's latest push into the cloud be a push in the stock. they will be talking to one analyst who says it may be too late for the tech giant why are biotech investors ignoring red flags in the c sweet. >> could gold prices regain their luster? we will speak to the man with the largest physically backed etf. first in business worldwide. (patrick 1) what's it like to be the boss of you? (patrick 2) pretty great. (patrick 1) how about a 10% raise? (patrick 2) how about 20? (patrick 1) how about done? (patrick 2) that's the kind of control i like... ...and that's what they give me at national car rental.
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said. >> yeah, 35 ounces. >> okay. there's actually been an increase in demand for the physical product this year, hasn't there? >> over the last quarter certainly we've seen 8% rise in overall demand for gold and that's primarily coming out of two particular areas, consumer demand out of asia, china and india, but also actually increase here in the united states. so coins and bars like that. >> why do you think, mike, that's not bolstering the price more? >> i guess the question there is what is exactly driving the price of gold. as they always say all the gold ever mined in the world still exists. the demand for the physical doesn't make it dense in terms of the money flows, correct? >> yeah, there are clearly more factors in terms of just the pure demand fundamentals of gold and clearly one big thing that is driving the price is something that is talked about on this show is the federal reserve and raising interest rates and how that affects gold. so that's the big driver at the moment. >> right now if you look -- when yields rise, especially short term yields rise, price of gold
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goes down, it's almost a perfectly inverse relationship. >> i did -- you know, i buy a mutual fund, it invests in miners and precious metal miners, it doesn't buy the physical gold. and i generally as a rule i stay away from the whole physical gold thing. >> why? >> it's very speculative, very volatile and to my point of view i'd rather own an equity in a company that can make money off of the price of gold rather than go and pay the dividend than trying to speculate in the price of gold. >> what would you say to that, will? >> well, i think, you know, here are the facts in terms of it being speculative, the majority of gold investors actually hold it for the long-term so it's a small amount of your total net worth, but people are pretty much in it for the long-term. in terms of volatility the actual volt tilt of gold is pretty much equivalent to the s&p 500 over a period of time. now, what's interesting about that -- >> the last three years we have
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probably seen -- what is the price of gold down 40, 50%. >> down 40% in the last three years. >> all i'm saying is -- a lot of people buy golden margin, it's one of those things. that's why when interest rates go up the price -- >> let me ask you that about an fed being an influence because it has been going down since it peaked in 2012 or something like that, we had another round of qe after that, people thought that was going to have gold go up. what would be required, i guess, to have gold in the relatively near term bottom and start to appreciate? >> i think honestly one big factor is the first interest rate rise ironically because although it may have a short term negative effect on the price the majority of that information we believe is priced into the market because this has been fairly well telegraphed over the last few years. so if we do get an interest rate raise, 25 basis points that's not going to be significant and indeed we are in very, very unusual times. ever since gold left the gold
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standard and started trading freely in 1970s we have always had interest rates higher than we have today. so gold rising 25 basis points, 50 basis points in our view is not going to be significant. >> i'm getting used to new dumbbell curls over here. it has a nice feel to it, will. thanks for joining us. >> thanks for having me. >> we do have some new developments on pfizer and al or began to get to for you. meg terl joins us on the phone. >> there was uncertainty about what was going to happen with allergan and pfizer's talks. i am hearing from multiple sources that the discussions between the two companies are progressing, the deal isn't done yet, but we shouldn't be surprised to see it potentially on monday or at least before thanksgiving so sometime potentially next week. the two sides still do need to firm up the price but sources do confirm it is being discussed around 11 pfizer shares per al letter began share which our david faber has reported.
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they are also discussing the break up fee which is in the ballpark of 2 to 3% of the deal tot total. the treasure rules do make things uncertain but does not look like they doo deter the deal. also an important thing to note, i think reuters just reported today that ian reed the ceo of pfizer would remain in that role and brent saunders the ceo of allergan would take a senior position at the company. what i'm hearing is that brent saunders could be a very likely successor to pfizer's ceo ian reed and presumably the way it could be announced is as we have seen with other deals with brent saunders has been selling the target company when he was c. when it's announced the ceo of the buyer is announced as the ceo, this happened with activist but after the deal closed brent saunders was named the ceo of the combined company. it's not inconceivable that couldn't happen here as well. bottom line it sounds like
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allergan and pfizer are still continuing their talks and could be early next week. >> meg, thank you. on those talks which are not deterred by what we heard from the government. >> if anything they're probably fast tracked. advertiser has been seen as very intent on doing something like this, i guess they are okay with the fact that pfizer shares under performed merck and lily, for example, by 12% this month. basically the market is saying it might be a fat price, execution risk and all that but it seems like both sides are determined to press this. up next barney frank and larry kudlow are going head to head on whether we should be letting syrian refugees in this dony. >> and "star wars" toys are flying off the shelves.
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welcome back. the senate is the next stop for the house bill passed yesterday essentially blocking the influx of syrian refugees. with concerns terrorists could speak into parts of the u.s. the debate has been raging on the campaign trail and opinion pages. we turn to barney frank and larry kudlow. good to have you both with us. larry, first to you. is this knee jerk response the appropriate one? >> i think it is the appropriate one. i think we should have a moratorium for probably a good 12 months as the fbi corrector jim comey has said and others have said, we don't have any files on the syrians, nothing,
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we don't have passports, criminal records, travel plans. we have no idea. the u.n. picks people, we get one shot to vet them, one interview in the state department to vet them. that is not not enough for american security. we have in a war and have to go to war footing when it comes to refugees and immigration. that's as plain as i can make it. >> eamon javers took a look at this, he said they are fingerprinted, interviewed, there are protocols. is the issue those refugees from syria and iraq or is it just the place of vulnerability in this country where people are able to gain access which is what they did leveraging the access yump has granted to these refugees. >> i think it's both to tell you the truth with all respect to eamon, but i think it's both. you hear fbi talking about the lack of files i take that seriously. look, because we are in a war we know that some of these isis people are going to try to sneak in. we just know in a. the idea that they are just, you know, children and women, heck,
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we saw up in boston yesterday's children and women and young boys become tomorrow's suicide bombers. so we can take no risk right now in my view. >> barney, why do you say let them in? >> i'm very disappointed in that. i wish some of these people who are so concerned understandably about american lives had that concern when they sent american men and women into the war in iraq. a lot more americans died in that war in iraq, an unnecessary and foolish war that did more harm than good. secondly, we are talking about people who are the victims in part of our own policies. if we had not gone to war in iraq i think things would not have been as bad as they are. i understand that we have a primary responsibility to protect ourselves, but what's the equation? is one american life worth a million lives? we have clearly not disputed hundreds of thousands of people, innocent people, yes, women,
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children, all the people, men as well, who are being victimized by this brutality. they are seeking to come here to get some safety. they are seeking to go to europe. remember, if we say no then presumably europe says no and all these people stay there and is there a risk? sure. there are risks. the risk, however, i believe, is a fairly small one in terms of the quantity of people we're talking about. so this is the question i have to ask people like larry, are we saying that the ratio between the value of making sure there is no risk to any american life and the lives of thousands of other people is infinity? that to protect the possibility -- to prevent the possibility of any risk whatsoever to american lives we will let thousands of innocent people suffer and die? i don't accept that. >> larry. >> look, i hear you, barney rs frank on this, i understand that, i agree with you about humanitarian values, but i think one american life is one too many and we have just seen in
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paris what eight or nine terrorists can do to hundreds and hundreds of people and we know they are coming to get us. i have a different suggestion, though. as we map what i hope is going to be a total war to destroy isis, that's a whole different subject but that's what i want to see, we should establish syrian safe zones, that is the answer to the refugee problem. >> no, it's not the whole answer. >> our bombing has been poor, we need ground troops, a ground coalition of nato and u.n. and europe and arab allies. we need to do things to destroy isis and while we're doing it we need to be sure that every american life in the homeland is safe. >> mr. frank. >> let me say again i wish people had been had been so served about protecting american life before they sent people into the iraq war where so many thousands were killed i mean that seriously. if we are going to have this calculation about the value of american lives let's not use it at certain points let's use it across the board. i think we are going to see a no
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fly zone but it's going to take a while to set up. one american life, i don't want to see american lives put at risk. i voted against the war, but the notion that we will do whatever we need to prevent any threat to any american lives, even if it means putting thousands of other lives at risk is a great mistake. i now understand better i something i couldn't understand. i was the chairman of the committee that brought out the bill to apologize to the deputies and americans who were rounded up because there was a fear in world war ii and frankly the japanese were in a position to do a lot more damage to america than the terrorists did, we lost a lot more people at pearl harbor than terrorism by far and these people were rounded up and the notion was, well, if there's any danger to most americans then we are going to round up our own -- these citizens even if there is a slight danger and i wondered how could that happen. now i understand. people panic and people have this equation that others -- the lives of others mean nothing.
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>> final word, larry. >> listen, barney, i think it's a natural reaction for americans to want to protect their own. do you know what else is wrong here, syrians have already come into the u.s.a. and local law enforcement authorities are not notified, they didn't even know that they're there. >> how much damage have they done, larry? what's the problem? who has been killed by them, larry? >> we don't have enough time to refight iraq or the japanese internment. >> the syrians that are here, how much damage have they done. >> >> right now one american life is too many, we are at war and we have to go to war footing on these matters. >> thousands of other people's lives -- >> 47 democrats voted for this deal and i think it's going to get through the senate, too, and that's -- >> it is wholly inappropriate. partisan considerations have no considerations in this debate. >> i wish we had more time, it's a crucial one. barney frank there, our larry kudlow.
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time for a consumer news update, let's get back over to sue herrera. >> israel prime minister benjamin netanyahu says the people of israel welcome the release of jonathan pollard an israel spy who has been released after 30 years in a u.s. prison. pollard wants to emigrate to israel but is prevented doing so by the terms of his parole which state he must spend the next five years in the u.s. >> sug gar and corn industries have reached a secret with respect in their billion dollar battle over sweeteners. sugar processors were seeking $1.5 billion in a false advertising crane against corn rye finders. a.m. dwlon japan can deliver orders in less than an hour. 18,000 products are available for the service in select parts of the tokyo for prime members. each delivery costs about 7 bucks. and driving in the u.s. in september reaching a new high. the dot says nearly 260 billion miles were driven, the most ever
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in september of any year. the nations driving has increased for 19 months in a row. part of the cheap gas equation, i think. that bodies well for thank giving traffic, doesn't it? >> yes, exactly, that, the airport strike, it's going to be fun. >> it is. sue, thank you into thank you. >> have a great weekend. >> sue herrera. the battle for your living room is heating up today with netflix and amazon launching two original shows. strong "star wars" toy sales have awakened hasbro sales. we will find out when we come back. if ynow's the time to get your ducks in a row. to learn about medicare, and the options you have.
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welcome back. here is a look at how we finished the day. as remarkable as that 91 point rally is it's a fullness of the rally this week with the s&p up 3%, gaining another 8 points today, the nasdaq was up 31. less than a month away from the highly anticipated "star wars" film "the force awakens" and the pre release numbers are hitting a record. sources telling the "wall street journal" sales totaling more than $50 million already and those numbers are translating to increased "star wars" toy sales, from light sabres to action
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figures. has bow ceo telling fortune magazine over the past few weeks we have seen a shortage of products that are selling exceedingly well. fear not he does promise those store shelves will be filled soon. joining us is jamie cats from morning star. >> thanks for having me. >> i guess this answers the question what's going to be the big toy this year for christmas, it's clearly all about "star war wars". are they going to have enough product on the shelves? >> it sounds like there have been some stock outs but it also sounds like the company is trying to rectify that in advance of the movie actually coming out into the theaters. so i think the reluctancy of retailers to take stock in advance of the holiday season has maybe sort of nipped them in the bud this go around. >> the retailers themselves you mean? >> yes. >> yeah, that's an interesting point, mike. >> jamie, i wonder dwlus it -- obviously hasbro stock has been riding high already. how do you look at the opportunity on an ongoing basis?
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is it going to be a flurry in the months surrounding the release or is this an evergreen franchise for has bow. >> this is an evergreen franchise. once you get that initial boost from that first franchise being out there it gets much harder to grow the sales year over year and while, you know, there are additional "star wars" films coming out over the next handful of years and some marv he will properties in between it's hard to get that initial bump again not scale or degree that you get in the primary year. so as we think longer term we have sort of a mid single digit top line growth as more of a normalized growth rate for the business. >> jamie, it's evan newmark. do you know which of these action items or which of these "star wars" items are the big hits? and don't tell me that a jar jar business doll is one of them because as far as i'm concerned they should have gotten rid of him all together. i don't think i don't know if he's going to show up go en. >> i haven't seen any lists of
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what specifically has been stocked out. i know there were some commentary earlier that actually some lower priced ticket items were moving a lot faster and our inclination is it would have been that collector set that would have gone. i think the accessibility through some of the broad based retailers has changed the price target and i suspect that it's some of those more accessible price points that are moving a little bit faster. >> jamie, i know this may be outside your purview, but is this a positive for the retailers which might need a boost in terms of traffic and sales or is it a big headache for them that could potentially weigh on their performance. >> >> i think it depends on the retail retailer. for a lot this season we've seen stock lines perform weekly and hard lines perform well and for retailers that have a disproportionate percentage of their in those soft line categories they could still be at risk for some disappointment
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ahead. >> thanks for joining us. jamie caths from morning start with a hold rating on that name. why biotech and pharma investors may be ignoring red flags. and how about elon musk fair in his acting experience last night on the big bang theory? n quickly in his acting experience last night on the big bang theory? e in his acting experience last night on the big bang theory? 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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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. 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. welcome back. biotech has been rallying back this week along with major averages. this after a drastic sell off in recent months and it's been one of the most loved sectors by
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investors the past five years, rallying nearly 300% during that period. our next guest says biotech investors have been distracted by the promise of improving society's health. jeffy sonnenfeld joins us now. good to see you, jeff. let me just begin asking you about biotech, then. we will begin with, i think, you know, there's a couple different places you could go, you could go to myelin, theranos, but people have ignored the substance of what's happening in board rooms to their pearl. >> that's exactly right. you have summarized my article piece that i had in fortune last week with annoying efficiency, you've covered it all in two sentences, that is the key message a. we saw this before where people were talking about a dozen -- 15 years ago we were talking about e board govern nance, people were saying we needed a different exception and investors were tolerating venture capitalists on almost
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two dozen boards, all kinds of reckless casual oversight practices, folks were intoxicated with the promise of what e-commerce was going to bring to us, whether or not it was back dating options or weird pro form ma statements or strange booking of bartter that nobody else could get away with, people weren't questioning it until the bubble burst. here happily i think in biotech we have had a month that has led to tough questioning that's been missing before. people who were raising these issues before either were short sellers that are being dis pair ajd, several from citron it to -- andrew left. >> andrew left in particular and jim khanos was asking he is questions about what's missing here. looking at myelin you have a board where the ceo has considerably less than 1% of the stock, the chairman and yet he controls the whole structure of the board because of one of
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these tax inversions they pulled off to become a netherlands company early last spring. shareholders didn't realize that they can't name their own board, the chairman can because of a weird post world war ii creation in the netherlands actually to protect nazis from taking control of dutch companies, they created this thing where you can create certain kinds of structured ownership where a foundation controls it. it's unbelievable. you look at valeant where basically what's the business model there? most business models in biotech are creation, discovery, development or else it's cheaper distribution and somehow getting the goods to the public. in this case it was really cutting down r&d to virtually nothing, jacking up 500% on old drugs and layering in all this apparent intent to deceive in these unnecessary unique exclusive specialty drug things such as this philidor company
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with disguised names. it's hard to understand what's going on there. >> let me interrupt you there. let's talk about valeant. you know, this is a case where, yeah, maybe poor corporate governance but the people were invested, a lot of them are long-term investors, they've been on the board for a long time, they bought into the ceo's vision, which is basically not a biotech vision at all, it's a roll up of -- >> exactly. >> -- preexisting companies. so they buy in, they are long-term investors, they buy into the corporate governance structure. isn't it caveats emp for? whos to blame for that? >> you are of exactly right. i'm not looking for government intervention, i think you and i both believe ultimately in efficient markets. the sad thing is before the market brings out its punishing misconduct we have a lot of investors that get hurt. i join you on a clarion call
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that boards and investors should be asking important questions. in this case the basic business model was a highly questionable one for valeant to start with. becoming a canadian company, piling on in the course of three years over 30 companies, including bausch and lomb and $8 billion and things like that is that if they had something they could govern, if they understood it, stripping away r&d to 2, 3% for an okay total shareholder return. allergan was spending 7 times as much. >> i totally agree but my point is the investors in this, whether they were mr. ackman and his funds or sequoia capital or the other hedge funds, they were totallien o board with the program. >> or larry ellison and others. >> they were doing what they wanted. >> they were -- they bought into the original model which i will argue is a flawed premise, the model behind it all, stripping away the research, jacking up prices on old products and, yes, you are right, they bought into
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that model and frankly had they bought into allergan which is paying seven times as much or people were investing a lot more in r&d, you look at today's news on allergan and pfizer they have better shareholder returns and spending 7 to 15% on r&d, but it's the deception of philidor. larry ellison didn't know about that. no, the other investors didn't know about that. these disguised names where you have executives that work for valeant that are making strategic decisions using psudonimis identities. >> we have to go but we take your point. >> trust is the issue. have a great weekend. >> amazon raising the bar on the streaming wars, the company releasing a highly anticipated man in the high capital which was its most watched pilot, ever. will it be enough to steel the steam from netflix. aa-flac!
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. amazon and netflix fighting fire with fire today. each launching a must i ant is padding a drama with sci-fi and fantasy ties. julia boorstin has details on both. >> they are both launching new
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exclusive series today. amazon's "the man in the high castle," in which the nazis and the japanese won world war ii. it was the most watch pilot and the biggest investment in a single show yet. meanwhile today netflix is launching the marvel series, jessica jones, which has also drawn positive reviews. >> original programming is what creates the buzz around these channels. not older content that they're rerunning. and what you are seeing out of amazon and netflix and even h u hulu, all of the online outlets are trying to create their own buzz worthiness. >> greenfield said the growing investment are a natural progression away from the media giants and draw subscribers to prime free shipping which gets them to spend more money. originals are a key way to differentiate services in light of so many content choices now.
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kelly. >> julia, thank you. guys, what do you make of it? and again, there is a lot riding on the fact that each one of these is a success. >> without a doubt. and as long as we're talking about the next new show, they are doing great. whether it is a flap or not, about whatever measurement, they are bundle it with other good stuff so the stakes are not high and they could keep growing membership. >> to me -- >> people are cutting the cord. >> for me, it is the downside of traditional media channels rather than the upside for netflix or amazon. because to me, it is just viewing habits are shifting very dramatically, very quickly. this is just a manifestation of that. and if i were a traditional media company, i would be very, very worried. >> this reminds us of what mario gabely said today. >> in a investors event, he is considering cutting the cord at his home because a billionaire looks at his cable bill and says it is too expensive. >> and he has cable vision and a big stake. >> do not watch tv any more.
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and i'm an elder gentleman. >> i do think that you will still have a lot of people realize you don't spend that many less money for a lot less choice. but it is probably a good equation for many. >> i would say this is trouble for the cable companies. >> i still watch tv. >> you are a super millennial. >> i'm with a baby boomer. >> how do you sit with it? >> if you watch with a little delay, you could fast forward. >> thank god we don't have any fan duel commercials. some good things are happening. elon murveg making a big appearance, speak of which, on tv last night. but not to make a new announcement about tesla. we'll tell you what it was. and dow stocks making a good potential for investors on the hunt for yield. we'll explain. excellent looking below the surface, researching a hunch...
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yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you. tesla shares were lower today on news model vehicles were being recalled to check seat belts. we know he'll on musk is the mind behind tesla and space x. he showed he has some acting chops to, on the big bang theory. >> you have to be kidding me?
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>> sorry. >> you're elon musk. >> i am. [ laughter ] >> well, what are you doing here? >> i'm washing dishes. well, i was on the turkey line but he got demoted for being too generous with the gravy. >> elon musk, actor. >> i can't tell whether or not it w it was funny because the laugh track was so loud. my natural reaction was overtaking ben the laster. >> i know you don't watch traditional sit comes. >> for you, you are used to. >> are you sure that was not a live studio audience. >> i'm positive. >> it is interesting to see those guys treat them as oh, elon musk. >> and the network has a larger single pool of viewers than anything on television and a
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place to actually kind of get this cool factor with a constituent. >> the two of you, who i hold up as shiny examples of your generation, i'm horrified right now. >> traditional tv has a lot going for it. >> apparently. they have a demographic they didn't have. >> could i get some final thoughts before you flee the coup. >> no. big things should happen next week. but that is when things happen. >> the s&p was up 3% in the week and believe it or not, the week was up. so who knows for the upside for the holiday. >> it is range bound. >> we've been using that term for over a year. on "closing bell." that does it for us. "fast money" begins in moments. >> shares hit a new high in today's session could. it grow its own amazon web services in-house.
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>> that was interesting. >> it was. >> and they decided now to double down. >> yeah. they might be late to the game. we have a difference between amazon and google in the cloud. >> good stuff. straight over to you guys and have a great weekend. >> you too, kelly. "fast money" starts right now. overlooking times square, i'm melissa lee. our panel tonight. tonight on "fast," chipolte tanking after three new states were added. we have the details. and the force is with the box office. star wars advance ticket sales has disney shares back at all time highs. but there is a better way to play the craze. and something rare is happening in large cap stocks and it could have investors on the hunt for yield very excited. but we start off with the markets. the s&p with the biggest weekly gain of the year, ending higher by more than 3%.


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