tv Closing Bell CNBC November 24, 2015 3:00pm-5:01pm EST
>> pleasure. >> tyler, makes me want to refinance or something. >> i've had every kind of loan you should the books. the loser loans. now i've got a 15-year fixed. the attraction there, the payment is higher, but you pay off the loan and spend less on interest. >> exactly. >> and that'll do it, folks, for the two hours of "power lunch." >> "closing bell" starts right now. >> welcome to "the closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'm bill griffith. energy is, in part, keeping the market afloat today. we have exon and chevron leading the dow components as oil rallies on those geopolitical and pfizer is a part of this rally as well. >> the u.n. secretary-general meantime encouraging all parties to ease tensions after turkey took down a russian fighter jet. we have a former green beret to discuss what the news could mean for the u.s. coming up.
meanwhile, things are getting a little heated between two billionaires with out of this world ambitions. we have the latest on jeff besos and his company's historic rocket landing. it's not the launch. it was the landing that they landed and nailed. >> plus, google getting into the mortgage broker business. we'll break down what it means for housing and for your data. this move, of course, being watched by the industry quite closely, bill. >> but let's begin with traffic-related stocks and how they're moving lower as global tensions heat up overseas. >> it's going to be a busy travel week for a lot of us in the u.s. here. if you talk about what's happening with travel advisories being issued by the state department and everything else happening in the world, airlines are standing out as the worst performing industry group within the s&p 500. remember, this after the state department issued that global alert for americans planning to travel following the terrorist attacks in france and mali. now, delta, american, southwest, united, continental all down around 3%. just slightly off their worst
levels today. those stocks are draggingindex, which is down on the day. other travel-related names here of royal caribbean, marriott, and avis. priceline also under pressure as well. as we talk about the reverberations, kelly, bill, about what's happening with the terrorist situations, the turkey/russia situation that's developing, a lot of those travel stocks impacted. let's not forget that oil is reacting, and that may be what's providing some of that head wind to those travel-related stocks. back over to you. >> dom, ironically on that note, it's energy that bill mentioned. the dow is leading the way as the sector is up because oil prices are up. that's quite the opposite of what we might have seen in the past when oil spiked like this. >> absolutely, guys. >> our dominic chu back at headquarters. let's get more on turkey shooting down a russian war plane near the border with syria. michelle caruso cabrera has the latest. >> turkey confirmed it shot down that russian war plane early this morning, claiming it
violated turkish air space and ignored repeated warnings. right on that red dot is where it happened. russia denies their plane crossed the border into turkish skies. video of the incident showed a war plane on fire before crashing on a hill. two crew members apparently parachuting safely out. a press release from a syrian rebel group said one was killed and the other captured. russia later confirmed that. this isn't the first issue when it comes to russia and turkish air space. last month turkish jets shot down a russian drone that it said had violated turkey's air space as well. russian president vladimir putin said the shooting down of a russian fighter plane by turkey on tuesday was a stab in the back, and he warned of significant consequences in relations between the two countries. putin said this during talks with jordan's king abdullah. the situation spooked the markets because it raised concerns that the civil war in syria would widen into a much wider conflict between russia and a member of nato.
but nato commanders urged turkey to show restraint in the future to avoid else kaslating the conflict. president obama said this happened because russia is targeting rebels who want to oust the dictator of syria, bashar al assad, instead of focusing their air strikes on the islamic state. kelly? >> michelle, on that point, it's interesting because this week we have president hollande visiting the u.s. and then russia in order to build this international coalition to fight the islamic state. president obama reiterating he wants russia to focus its attentions on doing so. but turkey, of course -- i guess what i'm saying is on the one hand we seem to be part of a group involved in that effort. on the other hand, of course, is nato, if turkey is struck and wants to do something about it, that would be our first priority. it strategically seems as though the countries are on both sides of this conflict. >> john harbaugh will talk more about the situation, but i think you put your finger on a key issue. it's so complicated in this region right now, kelly, because there are so many different players with so many different
vested interests. in one situation, someone is our ally. in another situation, they're our enemy. you write that across the entire region with at least 60 participants in this coalition that's trying to fight the islamic state in syria and northern iraq. >> let's get more on that now. michelle, thank you. president obama did weigh in on the diplomatic mess earlier today. john harwood has the details from washington now. john? >> kelly, president hollande and president obama met today. they agreed to ramp up air strikes in the wake of the paris attacks and the subsequent attacks in mali. but president hollande echoed president obama in ruling out the use of a ground troop force in syria. now, president obama speaking against the backdrop of the tension that has raised over the downing of that russian airplane said all parties need to de-escalate the situation, but as you and michelle just said, he underscored this incident shows the need for russia to refocus its air strikes not on
moderate syrian rebel groups but on isis. >> this points to an ongoing problem with the russian operations in the sense that they are operating very close to a turkish border, and they are going after moderate opposition that are supported by not only turkey but a wide range of countries. and if russia is directing its energies towards daesh and isil, some of those conflicts or potentials for mistakes or escalation are less likely to occur. >> of course, the ultimate challenge is that the president and the administration has said that the removal of bashar al assad from power in syria is necessary to prevent and to destroy isis. russia and iran are on the opposite side. they're trying to prop up assad,
the administration with 65 countries allied in its coalition, is trying to make the case that assad has to go to resolve this conflict. today's shootdown of that russian airplane does not make that task any easier, guys. >> that is for sure. john harwood at the white house. thank you. let's talk about all of this in our "closing bell" exchange. john mannelly from wells fargo funds is with us at post nine. so is kenny. and i'm going to start with you, rick santelli. we're finally -- we've talked a lot lately about how these international incidents, we haven't seen much market response, but today we did. not a huge response, but you did see oil go higher. you did see gold go higher. you did see the kind of movement that you would expect for this incident. i wonder why this one had that kind of impact on the markets this time. >> well, i don't know the right answer, but i can tell you the only thing i hear on this trading floor that would suffice to answer the question you
asked, and that is vladimir putin. the traders down here say with the strike against a russian plane, knowing vladimir putin, you know, he's a man of action. i'm not saying words versus action. you can pick your poison. but many traders thought that having him involved is the reason the market paid a bit more attention. but you're right. we could argue that maybe the dow jones industrial average had a 30-point premium post the press conference between hollande and the president. i witnessed it as well, so the markets did move a bit. i would think world peace would be worth a little more than that, but it really is about energy. and energy is a very confusing issue. if you look at the last time oil was down here and look where the s&p, the dow, and nasdaq were, obviously correlations have changed since july of last year. right now it becomes a surrogate for whether stocks go up or down. but it's more a question of financing and issues with the junk bond market and all those issues are magnified because of what the fed is going to do.
but yes, geopolitics doesn't have the oomph in the marketplace it once did. maybe we've just learned to assimilate the unknown of the future, but there's no doubt that when you include russian jet in this equation, it does get a little bit hotter. that's in the words of traders i talked to. >> kenny, what about the guys here on the floor of the new york stock exchange? what are you hearing? >> i think that's exactly the truth. the fact that it was russia that got drawn in and then the rhetoric that came out very early this morning with putin and what this attack actually meant really kind of set the tone this morning. you saw what happened in europe when we found this out at 4:00 in the morning. european markets right away started to tumble, down better than 1%. that carried over here. it was only not until this afternoon, after obama got up to speak and trying to put everybody in place and not overreact, that you saw the market, you know, start to feel a little bit better and move forward. in fact, now we're to the plus side today, which i think is actually very, very interesting considering how it felt this
morning. >> you know, john manly, earlier this morning when word first got out, it took the european markets down sharply. our own stock futures went down sharply, but now we're talking about how it's the energy stocks that are bringing the market back today. they're among the leaders here. how do you invest in this kind of uncertain environment here when you're not even sure what motivates certain stocks to move? >> that's always been my case, but i think you don't invest hour by hour. i think you have to look out beyond that. you have to look for certain themes that are going to hold on for a while. you may get bounced around in the interim, but trying to play it on a short-term basis belongs to the traders. they're good at that. i'm not good at that. you have to look at this and say usually incidents don't lead to greater escalation unless the country is looking for that escalation in the first place. i don't think either country is at this point. >> being who? who do you mean by that? >> i don't think the turks and russians need their enemies to be more angry. these things happen, unfortunately. usually when they escalate, it's because the countries were looking to escalate already.
i'm not sure that's really the case. i think it's obviously a very uncertain situation. you don't need one more thing to sort of push it a little bit further. but in and of itself, is this going to change policy incredibly? i can't imagine that's the case. >> kenny, you're shaking your head. >> no, no, i would agree with him. that's absolutely true. i don't necessarily think the action this morning from turkey was intended to create another enemy. i don't think that's what they want to do at all. do i think it's unfortunate? absolutely. were any of us there to really understand it? no, so you can only kind of go with what we know. i do think that the situation, if it calms down, will lead to stability in the market and allow the market to move forward. don't forget, this has always been a good week for stocks. thanksgiving week, stocks have always performed very well. it did feel like, and it does now, feel like stocks want to do well. they're going to be held kind of in check until this situation calms down. >> hey, oh, by the way, we had that gdp revision this morning. rick santelli, does that still
support the possibility or a likelihood, if you want to go that far with it, of a rate increase next month? >> you know, i think it does, but if you assume that atlanta gdp now is going to be correct, they're predicting 2.3 for the fourth quarter, you look at the 2.1, let's assume it stands, the average for the year is a bit under 2.5%. last year was a bit over 2.5%. the year before that was a bit under 2.5%. you get what i'm saying? you know what, this is the new growth factor. now, how the fed factors that in with the calibration of zero and trying to move off of it is going to be very difficult. but one thing i learned this morning, if you're looking for 3%, 3.5%, 4% growth, the way the economy is currently wired, you're not going to get it. we need to have changes, and those changes may be in administration, a new congress, or years away. >> right. >> all right. >> thank you, gentlemen. >> thanks, guys. >> appreciate your time this afternoon. we have about 45 minutes to go until the close now. the dow is moving higher by 56 points. as bill mentioned, that's after
a triple-digit decline in the futures session this morning over concerns about what was unfolding abroad. now the s&p is up about six points. the nasdaq, five. the dollar index is down two-tenths. >> yeah, down. it's not the safe haven play that we saw yesterday. meanti meantime, our hedge fund titans losing their touch? bill ackman and carl icahn. kelly digs deeper into those moves. also ahead, jeff bezos' blue origin. we'll get you the details coming up.
dole out or kind of slice up a business called virtustream, which was supposed to be a joint venture between vmware and emc. the reason shareholders seem to like that idea is virtustream is a new business, has potentially high costs, and the worry was that would get dumped into vmware, vmware would get parts of that, and the tracking dock in vmware, which was going to be used as currency to fund this acquisiti acquisition, would get weighed down. of course, vmware has already suffered since that announcement. investors unsure about a number of things, including whether vmware would continue to be competitive and the tax consequences of this deal that dell is trying to do. but this new headline on virtustream, the idea that emc is going to keep a majority of that and the costs, will not end up dragging down vmware further, seems to have have been a positive impact on the stock, bill.
>> all right, john, thank you very much. let's look at a few other movers today. we have dollar tree rising on better than expected quarterly sales. this was the discount retailer's first earnings report since acquiring family dollar. the company's ceo says its business is being helped by low-income americans who face higher rents, taxes, and health care costs. analog devices also hired today the chip maker's earnings beat street earnings on the top and bottom lines thanks to demand for products including smartphones and tablets. and we have another hint the fed could hike in december. our senior economics reporter steve leesman joins us with the latest minutes from the fed's exciting discount rate meeting. >> get out your party hat, bill. yeah, 9 of 12 reserve banks asked for a discount rate hike in october. the fed obviously did not hike at the october meeting. most fed banks were asking for a rate hike at the discount.
the most fed banks asking for a discount since june 2006, other than a technical vote they took in 2010. these are the boards of the banks that asked for it, but the president has a lot of sway. think of it like a prosecutor and a grand jury in this case. they kind of get the result they want. boston, interestingly enough, was among the banks in favor of raising the rate. many wanted to go up by a quarter of a point to 1%. minneapolis fed, they asked for a quarter-point cut in the discount rate. just held a meeting on the discount rate, kelly. we won't get those results until after the fed meets in december. we'll know sooner what happens with rates with discounts. this is just a hint of the thinking at many of the federal reserve banks out there. >> steve, thank you so much. steve liesman. meantime, bill ackman's stake in
valeant going up. >> despite its almost 40% plunge this year, hedge fund manager bill ackman remains a big believer in valeant pharmaceuticals. despite saying a month ago he wouldn't buy more funds until additional capital was raised, he tripled down recently. equivalent of 12.5 million shares through both options and a bit of stock. those transactions revealed late yesterday that valeant holdings are at 9.9% of the company's shares outstanding and appear to make ackman the second largest stake holder in the company overall. ackman has said he believes in the company despite concerns over its specialty pharma business and valeant is, quote, tremendously undervalued, unquote. still, the bet hasn't been kind of late to pershing square, which is down 25% on the year through beginning of last week thanks in large part to valeant. >> if i'm bill ackman and i need
to get this company's stock price up and pretty quickly and significantly, what is the best way to do so? he's an activist. does this mean pushing the company to be more aquiztive? do you see a big target out there that could do enough to bolster their share price, or would it do more harm than good? >> i think the signals we're getting from the company are that they're not going to be incredibly inquisitive right now and some of the business unit where is they wanted to do that, that activity was sort of on hold while they focused on replacing their lost specialty pharmaceutical business, which contributed about 6% of net revenue above a division of seven. so seven for specialty overall, six for the partner they lost. their determine that logical business is going to hit near-term head winds because that was the one that was most affected by the specialty business. ackman, i'm sure, would probably like to see more acquisitions over time. right now his belief seems to be that it'll be a slow and steady recovery for the stock. the company simply needs to go about its business, issue its
10k after the end of the year, meet with investors, keep communicating better, and just kind of take the necessary steps, speak at conferences, things like that, to try to burnish investor confidence. when it's lost so dramatically after some of the investigative reporting, the concerns over the specialty business, and other lingering questions, which are being explored, i add, by an ad hoc committee, it just takes quite a bit of time sometimes for the stock to recover. >> meantime, kate, i'm intrigued. karl icahn has disclosed this 7.1% stake in xerox, which he feels it undervalued. stock is down 1.5% today. what's going on there? >> it's like these activists are reading from the same cue cards. it's undervalued. they're going to seek potential operational changes, et cetera. >> but you didn't get the bounce you often get when these announcements are made. >> it did after hours and before hours today, it was up 5%. i was talking about this on
"squawk box." i can't explain why they're down 1% to % today. i would make this observation. icahn, who's known for using the bully pulpit of cnbc and twitter and other places has been very mum today on what he's doing. he's stuck to the filing. he said he might seek board representation. he's taken the 7.1% stake. we don't quite know what to make of it. this is a company whose shares were down over 20% this year. you know, obviously he sees room for maneuvering, although perhaps likes the brand, likes the management. we just don't know enough, i guess. maybe it's the uncertainty that's hanging over it. >> i guess. >> all right. in any case, lost a little bit of luster, at least for today's trading session. kate, thank you so much. let's get to seema modi for a quick market flash. what's moving? >> up about 11% after being halted. the stock spiking on a reuters report citing sources saying shire is preparing to make a new takeover bid for the biotech player. shire is apparently, according
to this reported, working with morgan stanley, evercore, and deutsch bank on a new bid, which could be structured in cash and shares. now you're seeing the stock coming off its high, though still up about 7% on the day. following a wave of consolidation. >> absolutely. thank you, seema. all right. we're heading to the close. 35 minutes left in the trading session. the dow is up 47. exxon and chevron accounting for roughly 25, 26 of those points today. health care in the form of pfizer and united health also helping out today so far. >> up next, battle of the billionaires in space. jeff bezos beating elon musk in the race to successfully land a reusable rocket. more on this coming right up.
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jeff bezos' blue origins has beaten elon musk's space x to a major interstellar milestone. >> hi, jane. >> hey, guys. i'm here at the forum, which isn't far from space x headquarters. musk and his company have been very high profile. jeff bezos and blue origin have been the opposite, operating out of the limelight in texas and yesterday landing, literally, a historic first. >> and liftoff. >> blue origin launched its
shepherd rocket named after legendary astronaut alan shephe shepherd. after it reached 330,000 feet, which is believed to be the edge of space, it landed back on earth. now, this is in contrast to space x, which has tried a couple times to land a rocket on a floating platform at sea, though musk also plans to eventually land on land. bezos explained why reusable rockets are the financial holy grail. >> it's way too expensive to use expendable rockets. it's like getting in your 747, flying across the country, then flowing the 747 away. you just can't do that. and so this is the first reusable rocket in the world. >> now, musk has also used that airplane line before. only weird thing about the blue origin video is that in the middle of it, it goes to animation when it's up in space, sort of looking like what the experience will eventually look like. it was confusing to go from real to animation to real. musk congratulated rivals on twitter for achieving vtol, vertical takeoff and landing, then followed up saying there's
a difference between space and orbit, and it takes a lot more power to get into orbit, inferring his rocket reusability tests maybe are harder. blue origin tweeted back, well, not really since space x has only been trying to recover its suborbital first stage booster. so rocket smack talk. i'll be back next hour to explain why i'm at the forum with an exclusive new look at a new business model for live entertainment. we do a lot here in l.a. >> you had me confused there. what are you doing in the forum where the lakers used to play? you'll explain that later. >> i know. i miss it. the fabulous forum. >> what jeff bezos is leading up to, he wants to put tourists in space. this is an important step. >> he wants to do a whole bunch of stuff. he's also building engines. he has a huge new deal with nasa and with united launch alliance. he's doing several things. one of them being putting tourists up there. you know, it's a multipronged business approach. rockets are just one part. the fact he did this first, that's a big deal. by the way, elon musk still
hasn't been able to relaunch his space x rocket since it blew up earlier this year. that may happen next month. >> i'll bet when you get into space, you'll be able to shop on amazon at the same time. just a guess. >> what a frontier. >> prime. need a prime membership. >> yeah. >> see you later. >> oh, man. and we look forward to seeing jane next hour as well. that'll be a great interview. time for a cnbc news update. >> hi, kelly and bill. here's what's happening this hour. a manhunt is on for another suspect wanted in connection with the paris terror attacks. belgium authorities issued an international warrant for mohamed abrini, who they say was seen at a french gas station with another suspect just two days before the attacks. at least 12 people are dead after a bomb hit a bus in the tunisian capital city. that bus was carrying members of the president's guard. the government is calling it a terrorist attack, and the entire city is under a curfew. a seen your police official tells nbc news a shooting incident near the belgian border
does not appear to be terror related. the official said it appears to be a robbery and police are in control of that situation. here at home, firefighters are now in control of a fire that broke out at mexico's biggest oil refinery. a company spokesman says three people suffered minor injuries and operations have returned to normal. you are up to date, guys. see you in an hour. back to you. >> sue, thanks a lot. as mentioned, about a half an hour to go here. dow is up 39 points, and it's interesting to watch that dynamic from higher oil prices to bolster this. s&p is up 4.5 points. nasdaq barely in positive territory. >> when we come back, we'll talk with a leading trader. he'll tell us what he's watching in the final and most important half hour of today's session. >> plus, we'll speak with a retired lieutenant colonel of the army special forces. he says the u.s. faces more risk in the downing of a russian war plane. stay tuned. and the options you have.
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happening with turkey and russia and continue to move higher? >> no, i definitely can't. i just don't see it. i'm really shocked. let's see how europe opens tomorrow. we've been the beneficiary of most of the rally. europe didn't see it. we saw this mostly after, about 11:30, when europe closed. it depends how they open is how we trade tomorrow. especially with light volume on a holiday. >> true. why do you say it's different now? why in the wake of the attacks in paris the market have the best day of its year, but now with turkey downing this russian jet, we're starting to question that? >> people are always concerned about what's going on in russia. they're the big fish over there. so that's going to be a major thing. we have another terrorist attack in tunisia we're dealing with now. we haven't got full information on that. these things are ramping up. they're coming with more frequency. the market is very resilient. we just keep trending higher. it's kind of scary, kind of alarming down here. >> not to mention what we thought was an incident along the french/belgian border upset markets. that turned out to be nothing. do you think this is what
happens now going forward, that we're quick to react to any headlines? >> we're definitely at headline risk here. one thing we're seeing is a rally in oil. oil here stabilized at 40. we had all the bearish calls. no one was bullish in the market rally. is it geopolitical? where do we go with saudi arabia and opec? are they going to defend market share or price? that's something we'll see next week. oil will be a catalyst. that's a sector that has a lot of reward to it. if that can trend higher, maybe that pulls the market higher. other than that, you know, i think we're in wait and see and very cautious attitude. >> absolutely. be nimble, be alert, as art cashen would say. >> absolutely. >> math, thank you so much. bill? >> kelly, we have a developing story right now involving costco. seema modi stepping in with details on that. >> bill, thank you. a cdc investigation announcement regarding a multistate outbreak of e. coli infections linked to a costco rotisserie chicken salad. as of today, according to the cdc, 19 people have been infected with this specific
outbreak strain. cases have been reported across seven states. now, according to the cdc, five ill people have been hospitalized and two have developed a specific syndrome, a type of kidney failure. no deaths at this time have been reported. again, this is an e. coli strain related to the costco rotisserie chicken salad. as we learn more details, we'll bring them to you. >> seema, thank you very much. let's get back to this other story, the downing of the russian fighter jet by turkey's air force. certainly steeped in controversy over violations of air space. as the finger pointing continues today, the markets and the world are concerned about a possible escalation that could include the united states. that includes our next guest, retired lieutenant colonel scott mann. thank you for joining us, sir. >> yeah, hey, bill. thanks for having me on. appreciate it. >> we were talking with a trader earlier about why oil moved on a story like this one. in the past on geopolitical concerns, oil hasn't moved.
the traders said one factor this time around would be vladimir putin. he's a man of action. do you agree? is that the wrong guy to pick on if you want to put it that way? >> welt, he definitely is an aggressive guy. you know, i think probably as the facts continue to trickle in here, we'll see that the russians actually were, you know, probably probing air space. i don't think that changes the fact that we're going to have to deal with russia inside syria. i say this in my book g"game changers." it's like everyone is just dropping where they want to drop. the fact this has happened -- it hasn't happened sooner, frankly, kind of surprises me. >> do you agree with the president's strategy here, scott? >> you know, i don't. well, in the sense that i don't think that this notion of, you know, really leading from behind, which in my opinion, allowed russia to come into the fold in the way that they are in syria, where they're essentially conducting their own unilateral
bombing campaign while the west conducts its bombing campaign. i don't think that's a solid vat ji. i think eventually that's going to come to a head. that is a really big problem when you consider the fact like, for example, turkey is a nato ally. we're bound to defend them. so we've really -- i think we're going to have to weigh in here and start to play a more assertive leadership role in what's going on in syria or otherwise this could get worse. >> and you think that is more u.s. troops in syria, yes? >> the whole boots on the grounds a peck, bill, is overused. in my book, what i talk about, the only thing i've really seen work against isis and al qaeda and other groups is where we put advisers like our green berets in these rough areas where isis sets up shop and we help the locals push back on their own. that's what isis does. it's a bottom-up strategy. >> i'm glad you brought that up. i was going to ask you, the president during his news conference said he wants to go with the strategy they've been
going with. he talked about how they've already been able to gain back some ground in iraq in those portions isis had controlled and taken out certain isis troops. but he said we have to find a way to accelerate that strategy. is this what you're talking about? >> well, i think that's the problem. we're trying to accelerate a fight against a local population that has all the time in the world. i think trying to accelerate it during one presidential administration or something like that, you're just not going to get the results you're looking for. look, these folks are operating in tribal societies where we have to go in and we have to establish relationships and we have to help these people push back on their own. that's going to take time. americans are going to have to realize, i think, that this is going to be a long war, and accelerating the timeline is not going to cut it. >> all right, scott mann, thanks for joining us today. >> thanks for having me. >> let's get more on this story now. live from istanbul, turkey, nbc
chief foreign correspondent richard engel. good afternoon to you. >> well, good to talk to you. the question here is not necessarily did the russian plane violate turkish air space. the turkish government insists it did. it has released some images it says are the radar images showing the flight path of that turkish jet. and the u.s. military says that, yes, the turkish jets did violate turkish air space, but critically, an american military official say it violated just few a few seconds. it just briefly passed rights through turkish air space. so was that enough to prompt this very aggressive response from turkey, downing a russian jet, a nato plane firing in anger and downing a russian plane and sending those two pilots parachuting out, one of those pilots being killed and russia says that a rescue
helicopter pilot was also killed. and that is raising many questions about was there another motive. many analysts that i've spoken to, including u.s. officials, believe that there is another motive, that turkey was not just firing on the russian plane because the russian plane happened to very briefly do this border infraction, the kind of thing that happens in this country quite a bit, but it was because of the targets that russia was hitting. russia was targeting syrian rebels that operate in that border area in northern syria. and they are predominantly turkman rebels. they're ethnically cousins of the turkish nation. turkey has complained repeatly that moscow and the assad regime have been targeting and pounding these turkish rebel areas, and this time it seems this border crossing may have been something of a pretext for turkey to act in order to send a message both to moscow that it won't accept
the bombing of its fellow turkmen and to alert nato that it needs more help. >> richard, on that point, many here are wondering what kind of response, other than what we've already seen, this will provoke from russia. further than what turkey might do or call upon nato to do with regard to that. before we get too far down that line, though, what is the verbiage in turkey? what are they saying about this? how is the communication to the public? how is this being framed? what's at stake? >> turkey is presenting this very simply to the public, saying the borders were violated and we acted to defend our borders full stop. they are not focusing on it heavily. the country is now in the middle of a political shake-up. there's a new organization of the cabinet here. i was somewhat surprised earlier. just about an hour after this incident happened or an hour after this incident became
public, the turkish prime minister came out, made a press conference, addressed the public, and he only spoke for a minute, maybe two minutes, but i would say it was less than two minutes, on this crisis with russia. and then quickly moved on to the political changes and the new cabinet in this country. so turkey is trying to at least domestically make it seem like a clear-cut border violation, no big deal. >> we'll see. thank you so much, richard. >> thanks, richard. >> nbc's richard engel in istanbul. 15 minutes to go here, as we turn our attention back to the market. we saw a selloff in futures this morning as this became public. since, we've seen a rebound, in fact, partly because oil prices are higher. that's bolstering shares of some of the biggest energy names in these indexes. >> you know, the next time you google the word "mortgage" you may get a very different result, one that benefits google. we'll explain when we come back. >> and we're also about 20 minutes away from
hewlett-packard earnings, or should i say hp. anyway, it's notable because it's the last time that hp ink and newly spun off hewlett-packard enterprise will report earnings as a combined company. get the numbers right here first on cnbc, first in business worldwide. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade.
welcome back. google getting in on the mortgage broker business. diana olick is tracking this development out of california and joins us now. hi, diana. >> hey, kelly. with the help of lending tree, google has launched google compare for mortgages, and it's already a licensed mortgage broker in california. now, the compare tool, just like its car insurance compare tool, helps consumers find the latest mortgage rates from multiple lenders, including all the related criteria k like terms and fees. consumers can then apply directly to an approved lender or contact them from the ad. now, since google is getting data from zillow, this allows all lenders who use zillow for
their marketing to now reach potential borrowers across google. there are, of course, other sites that do this like bank rate and nerd wallet. but google, we all know it's a behemoth in the search world, which could give it the advantage. this comes as quicken, the largest online lender, today announced its rocket mortgage, which promises to get you conditional approval on a mortgage in eight minutes. you just feed in all your information. it checks you out and spits back a yea or nay. you might want to talk to someone. it's a complicated affair, getting a mortgage. >> it reminds me a little bit of their incursions into the insurance space. all i know is the industry is going to be watching this carefully. as you say, a lot of people using it should do the same. >> yes, ma'am. >> diana olick. ten minutes to go. look at that. although, we are coming back well off the highs here. the dow is now only up 14 points. the s&p up two. the nasdaq negative.
>> art cashen just pointed out, it's $200 million to sell going into the close, not a lot, but we'll see if it has an impact as we head toward the close. most consumers are celebrating the low gasoline prices out there. our next guest says the savings at the pump have not translated into a wave of consumer spending. he's concerned about that. he'll join us next to talk about it. the only way to get better is to challenge yourself,
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about seven minutes left before the close as major averages hover just above the unchanged level here. joining us, ron weiner from rdm financial group. you were just pointing out, you know, the high concentration of performance, it's a few stocks that have been leading us higher generally lately. >> the top-ten capitalized stocks in the s&p 500 is up 13.7%. the other 490 are down 5.7. it's kind of tough to be a money manager if you don't own those ten. you know, you didn't do well. those people who bought dividend-paying stocks did horrible so far this year. no one wants to own the mamby-pamby. so the last time something like this happened was 1999. for those of us who have been
around that long, you know that 1999 it was cisco, microsoft, just the huge tech companies. and we know what happened in 2000. i'm not saying there's a crash. i think some of these are fairly valued. i'm just saying for the prudent investor, for the prudent money manager, you know, it was a tough year, but for the hedge funds who took bets, they got hurt bad. >> is it a sign of an unhealthy market, end of a cycle? >> no, we think the market is fairly valued. we don't see anything great going forward. the dollar keeps rising, corporate profits are just getting haircuts. they're doing well. take out energy, take out the dollar, and actually u.s. companies are doing well. but those things are persistent. so we're not looking for great things, but we don't think it's horrible. >> but just for the record, then, you're still sticking with those dividend-paying stocks. >> absolutely. for those who need income, should have that. for those who need growth. everybody is different. i think everybody should own -- we own facebook, microsoft.
we own those things, but you just don't put half your money in it. that's all. >> good to see you, ron. thanks. words to live by and to think about. we're heading to the closing countdown for just a moment. i've got this frog in my throat today. >> get you some tea with honey. >> i guess. >> after the bell, the fight against isis took on a new complication today when nato member turkey shot down a russian fighter jet. coming up, we'll talk to the former ambassador to turkey and iraq and ask him if cooler heads will prevail or if escalation is more likely. you're watching cnbc, first in business worldwide. [vet] two yearly physicals down.
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all right. two minutes left as we head toward the close today. mary thompson joining me here for the closing countdown. we had a selloff this morning, as you might imagine we would after the shooting down of that russian jet by the turks. but then it came back again, led higher by oil. oil was the straw stirring the drink today. >> it was, but it was stronger from the open. i think what you want to note in the market's reaction today is that the rhetoric coming out of the u.s. and france maybe wasn't quite as aggressive as some people had anticipated. because of that, the markets, the fears of a greater escalation, you know, overseas kind of dissipated. as a result, we saw the markets pull up. as you mentioned, energy was stronger from the get go. when the markets were down, it was the only segment that was up. again, it's leading as we move into the close. materials also looks strong as
well as consumer staples. a number of companies came out with better than expected earnings. >> as we head to the close, the end of an era. hewlett-packard will be reporting earnings for the last time as a combined entity before they split into two companies. >> that's right. big change there. >> as they try to affect this strategy to separate the good from the bad, as it were, in terms of their earnings over the last five years. >> yes, a number of people will be watching that. one of the big tech companies that you wonder whether or not some other. >> reporting around 2:00 this afternoon that the fed members were increasingly looking for or expecting a fed or maybe
promoting a fed increase, i guess. so the second week in december becomes the focus of the markets as we wait to see what the central bank does at that time. >> thanks, mary. see you later. going out with minor gains. telecom indonesia ringing the bell here at the new york stock exchange. stay tuned now for hour two of "the closing bell" with kelly evans and company. see you tomorrow, kel. >> thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans. keeping a close eye on these markets here as we go out. we did see big declines in futures this morning. turning to gains in the session, which looked like we might give up entirely on the close. the dow going out with an increase of about 21 points today. the s&p adding two. the nasdaq up less than one point. just ever so slightly higher. we did have some other moves. crude oil was moving higher. the dollar, interestingly, was moving lower. the vix was slightly elevated. so a lot to talk about here.
big earnings coming out momentarily. joining today's panel, we have our own mike santoli. steve grasso will also join us shortly off the trading floor. mike, interesting to see us bounce around during this session. it doesn't really feel like a decisive move higher at all. >> it really wasn't, although i think the muscle memory of this market is so strong to kind of buy geopolitical bad news. that was obviously in effect again this morning. obviously oil, the increase in energy stocks is the reason that we're not a little bit negative on the day. i think it wouldn't have been a dramatic day otherwise. what caught my eye was the rally in retail. if you look at the xrt, i don't know if that's the market saying, hey, these are going to be beaten down, or maybe we'll have a black friday. >> interesting you bring up retail. dollar tree, which if you think about the commentary it gave us, was an ugly picture of the consumer. they're saying they're hard pressed so they're coming to us more. meanwhile, the consumer confidence number.
i know this didn't get a lot of attention, but it was quite weak. almost unusually weak. >> the consumer confidence number, it's a little bit backward looking. it's all about kind of what mood were we in a few weeks ago. obviously that was fresh off the kind of fall/summer crisis and the economy. it's not very predictive, but it definitely does show there's this overlay of skepticism out there. >> and some interest as well in the job market, how it's perceived. those perceptions declined a little bit. so that makes it all the more interesting when we're watching for the jobs report next month. the last one before the fed is going to raise interest rates, as we suspect will be the case. the stakes are pretty high for all of this data to hold in there and deliver. we had gdp today as well. do you think it's all consistent with that full steam ahead approach at this point? >> i think given how quickly the markets were able to shrug off the terror attacks of just over a week ago, i think that tells you that the fed does have the room, that no weak consumer confidence number is going to derail that. it would have to be such a
negative jobs report, kelly, that i think they'd look right past almost any other bad news. but again, an event that happens between now and their meeting, that could change things. other than that, i think we are on pace to see that first move, but it won't be a series of -- like a machine gun. it'll be one, perhaps done, but then a considerable period of time. >> you raise an interesting prospect here because there is this one factor f you will, mike, that dave was talking about in his year ahead outlook, which is actually the opposite. what happens if the job market holds? then we talk about the fed moving more in a stair step way. >> he was looking at ways the consensus might not have it perfectly right. i think this idea of low and slow after that first rate increase is probably the correct consensus call. the fed has been basically telling you that. however, if the market outperforms, you'll have seasonal factors in the first quarter that are actually going to help you if you don't get a really cold winter.
so if you have an upside surprise on gdp and other numbers, all the sudden the markets will races to that possibility of, okay, maybe it's going to be a more sustained tightening campaign. who knows. >> kelly and michael, i also think a lot of folks are waiting for the first reaction. what's it going to be like when they make that first move after the fed meeting in december? an because of that reason, a lot of the money that's on the sidelines right here, as you point out, the muscle memory of the market, the market, people are waiting and they're not committing cash. all the sudden you could have a very sharp january effect hit later than usual. normally we'd start feeling it now. i don't think you see it until after the fed meeting. >> we welcome steve next to you here at post nine, fresh off the trading floor. what was happening in the session today? were people focused on the role vladimir putin is going to play now that the russian jet has been downed, or was it a broader combination of factors? >> i think it was putin. the majority of the headlines we saw involved putin. that's what most of the traders were looking at. when you see something like this
happen, it always errs on the side of the bulls. crimea, they bought the tape, about 12% higher once those headlines broke. i think it's counterintuitive, but this marketplace is not scared of these hot headlines anymore. >> that's exactly what you were saying, mike. what changes that at this point? >> something that seems very open ended, that seems like it's going to be some kind of escalation that people are not necessarily talking anymore, to be honest with you. the other thing that changes that, at least in the past, the transmission mechanism has been an oil spike. that's when the market gets focused on this kind of thing. now the question is, how high would oil have to go for it to be considered a negative right now? >> and if you take energy out of today's action, it would have been a much more negative day. you saw those energy names rally. those are the names that pick us up off the bottom in the s&p. we got close to the support levels in the mid-2060s. >> it is a bit ironic.
you have oil spiking higher. that's supporting the market. even though consumer confidence is weak. >> and energy stocks were the weakest sector in the s&p 500. so to see them basically with crude oil monday down to that level, piercing it briefly, and just a reversal from there. now with what happened over with the downing of the jet by turkey. i got to think those phone lines are burning up to turkey right now. the president talked about he's going to have a conversation. you know the last thing they want is to draw russia into something with turkey. that would be something that, kelly, would spike volatility and crush the market. >> meantime, our guest last hour mentioned we have this dispersion, i think is the word, between the companies in the s&p doing the best and the worst. one of the widest we've seen since 1999. i just bring this up, mike, because it has been a tough year for activists, by some measures down 12%. if you look at that basket. so we're left with a market where you have to pick the
winners. that's what's working. more reminders today of maybe the tough battles that karl icahn and bill ackman have ahead of them. >> look, the broad market stopped marching higher together over a year ago when corporate earnings stopped rising as a general tie. so you basically had people crowding into where you could be promised growth. i do think what's interesting about this latest batch of activist announcements with icahn and zooer rocxerox. >> you look at the funds that have done the best have been the event-driven funz. >> speaking of which, we have hewlett-packard earnings hitting the tape right now. let's get to these quarterly results. the last time it's reported as one single company. david faber has those numbers now. >> that's right, kelly. as you point out, the october 31st day was the last day that
they were together, so to speak, as a public company. but they're reporting that last quarter and their full fiscal year both hp inc., of course, which contains pcs and printing, and hpe, which is the enterprise group, storage, servers, software, all of those different services. big picture here, hp inc., not quite as good as people might have anticipated. hpe, perhaps better than people anticipated. $14.1 billion was the revenue number from hpe, up 3% in constant currency. it is the second consecutive quarter of constant currency increases in revenue for the company. the enterprise group, a standout, had 9% growth in constant currency but did have actual real growth at 2% overall. industry standard servers quite strong. intersurprise services revenues seem to moderate a little. they've been down, but only down
2% in constant kucurrency. some new things they're doing in terms of infrastructure for the cloud, along with something they'll be doing with microsoft that we'll get more news on very soon. the overall picture, though, at hp inc., something a bit different. we know it's a very competitive market right now. 19.7% is the company's mark share when it comes to pcs worldwide. they may have a decent house, but it's not in a particularly good neighborhood right now. the transition from windows 8 to windows 10 has not yet resulted in upgrades. there are 600 million or so pcs out there that are at least four years old. the expectation is that you will start to see the cycle turn, but right now it is quite ugly. down 14% on revenues in both psg, personal systems group, and desk tops. and printing also down 14%. there the company continues to suffer from currency. overall, of course, currency a
big story for hewlett-packard. in printing in particular, it's not just the weakness of the dollar versus the euro, for example. it's also the ability of their japanese competitors to benefit from a weaker yen and price more aggressively and take share that they're suffering from. it's been interesting watching the performance of these two stocks since the split took place on november 2nd. they have gone in opposite directions. hp inc. has been up rather sharply. in part perhaps it's a bigger retail name a dividend a key part of it. hpe moving the other way. it will be interesting to see how the response is to the first earnings report we're getting where we'll get the guidance and everything else from both of these companies separately. although, i think on the conference call, they actually all still will be together, kelly. it is somewhat confusing, of course, but as you point out, it's the last time we're going to see it reported as one company.
it is now two companies, and it will be reporting from here on in separately. back to you. >> all right. david, stay with us, if you would. just want to get reaction, guys. john, what do you make of it? >> just a vanilla kind of report. i mean, nothing outstanding. not doing anything really wrong. i don't want to say goldilocks. someone else already has that moniker. this is an okay report. >> do you like these two companies now that they're split? do you prefer one over the other? think this changes anything? >> i don't prefer one other the other, really. >> you're more of a chocolate ice cream kind of guy. >> i'd rather have a defined bet on one space that's a little hotter than this. they're not enough in the cloud. that's where all the growth is right now. >> mike? >> it's interesting. i'm interested to see how the market treats these stocks. as david said, they've kind of gone separate ways. seems to me they'll be on a relatively long leash this quarter. it's not as if people thought this was going to be make or
break because they're just in the process of splitting. to me, it's interesting. i think people view hp inc. as the spinoff that maybe was the neglected piece that maybe you wanted to grab hold of. to me it's all about what the market perceives. >> and we should mention hp inc. giving up 3.5% or so on this report while hp enterprise was up about 2.5%. again, there's like five sets of numbers. >> i think people got overly bullish on hp enterprises. i think they got overly bearish on the hp -- did i say it reverse? hp inc. they got overly negative. when they split, you saw the reaction. they just tore off. i think they both settle in now and probably see the real reaction now. >> david? >> yeah, you know, it's going to take a while for each of them to establish a separate investor base. that's in process right now. they are very different, remember. one is really a no-growth business. it's returning most of its
capital to shareholders. the other, they're hoping for growth. they've seen it at least in constant currency. man, are they getting hit by the dollar when you look at the real potential revenue growth. by the way, to the market's reaction here, these guy have communicated a lot recently. they had their big investor meeting not that long ago. they communicated yet again when the split took place. there shouldn't be too much in here that's unexpected. although, i'm sure they will get some weakness. the ceo of hp inc. on specifically how weak things really are in personal systems and printing. we'll be able to ask meg whitman specifically herself on "squawk on the street." it gets confusing. i don't know, guys. i guess they can't change the name. >> on that point with hewlett-packard enterprise, you mentioned the interview with meg. you heard john here saying he wants to see it more in the cloud. that's where the growth is. do you expect to hear more on
that front from her tomorrow? >> yeah, i think they're going to talk about cloud infrastructure and how they're benefits from everybody else's cloud offerings. remember, hp is not doing it in that sense, how we talk about amazon web services. they are benefitting from all of the services that are offering cloud to businesses because they're buying a lot of hp's equipment to do that. so she will be speaking about that. there is also a new deal or a new effort they're going to be making specifically with microsoft, kelly, which we know has been making real inroads when it comes to its cloud offering to its customers. >> support of office 365 and that sort of thing. in any case, a ton for you to get to. thank you for joining us this afternoon to go through these results for us. david faber. be sure to stick around and catch more with steve on "fast money," talking airline stocks. they did get hit today as a global travel alert goes into effect. they'll be talking to helane becker. more on hp's results still to
crude prices did rally today, up nearly 3% after turkish fighter jets shot down a russian war plane. is this rally sustainable in the face of rising tensions in the mediterranean and the persian gulf region? let's get some answers. welcome to post nine. >> thank you for having me. >> there are so many different pieces of this to unpack, really. a lot of the people in markets today obviously focused on the role that russia will play from here, but also i guess we should begin with the reaction in the oil markets, which was for crude to move higher. but this was a lot to happen for crude to move higher. what keeps it sustainably moving higher? >> first of all, there are no immediate supplies seemingly at risk. is it a position where the market was positioned so bearishly that when you get a headline like this, you get this outside move? i think that's part of it. there are four wars in the middle east. we've had a situation over the past year where the middle east
has gotten progressively worse and the oil market has shrugged it off. we've seen in the last couple weeks some reintroduction of geopolitical risk premium. if there's no physical supply at risk, is it sustain shl in terms of a rally? i think the next big story to watch, obviously, opec meeting. again, that's the big story. >> what is your call for oil prices from here? >> we think it's going to be fairly subdued. we think wti will average about 58, brent, 62. that's without a supply disruption. so we have to keep watching for the middle east because that's your potential upside risk. anything coming out of there, supply is coming off. you're up against a wall of inventory. that's the problem in terms of moving higher. >> mike? >> fairly subdued but a 40% gain from here. >> what's interesting is 58, you know, for next year, look where we were a year ago. so it's a recovery, but it's not a recovery to prices which can keep many middle eastern countries flush. even at, you know, 58 average, so many of these countries that we're talking about are circling
the drain in terms of their finances. >> so is the muted terrorism premium or geopolitical risk premium, supply premium, is that just basically a bout, the fact the middle east is less important in terms of the overall supply? >> i think what the north american energy revolution did is we're not as concerned about a supply disruption. when we get inventory levels, it's like we can sustain an outage. there's a sense we can sustain a month-long outage if there was something out of the middle east. again, you look at the political situation there, something could go dramatically wrong. isis does attacks in saudi arabia. if you had major energy facility attacked, i don't think you should shrug that off. >> i agree. i think that into the opec meeting on the 4th and the soft launch of the opec meeting on the 3rd, i think we'll see prices going to the upside, in other words from the right to
the left on an upwafrd basis. but i think we're going to see situations like this that was introduced overnight with the downing of the russian jet, putting that terror threat or that political risk on the table, building it back into the brent contract, not necessarily the wti. >> absolutely. and even today, 12 members of the tunisian presidential guard were killed in a terrorist attack in tunisia. these incidents are going on throughout the region. if you have something major in iraq, something meerajor in the eastern provinces of saudi, that will take you materially higher. >> how much of that $46 a barrel is geopolitical risk at this point? and how much chunkier could that get? >> i think it's very, very little at this point. what could move the market higher besides somebody -- is if
opec decides to surprise everybody next week and pull barrels off the market. there's almost no expectation of an opec cut. if something did happen, if saudi arabia switched their policy and said, we're out, we're willing to cut, i think the market would be very surprised by that. >> thanks for being here. appreciate it. will the u.s. be dragged into a potential conflict between russia and turkey? we're going to speak to former u.s. ambassador to turkey james jeffrey coming up. first, railroad and trucking companies are racing to get a piece of the booming border business with mexico. we'll head live to that border when we come back. i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do.
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welcome back. we start here with a market flash. seema modi, what's happening? >> want to draw your attention to a solar company, sunedison, after it said it's selling projects in india for about $230 million. keep in mind this was a big outperformer in today's session, gaining as much as 23% on the day. as you can see, still moving after hours as well. sorry, gaining about 37% in the regular session, kelly. >> thanks, seema. appreciate it. rising costs in asia have given a huge boost to mexico's trade relationship with the u.s. and the transports are all trying to cash in on this booming border business. morgan brennan is in santa teresa, new mexico, with details on what's happening there.
hi, morgan. >> hey, kelly. take a look at this. this union pacific facility is 11 miles long. it costs $400 million to construct. you have trains hauling everything from consumer goods, electronic devices, to finished autos, even beer coming on trains through this facility. it speaks to the book in u.s.-mexico trade, which is up 550% over the past two decades since nafta took effect. now, as mexico increasingly becomes attractive destination for manufacturers, this has continued to create a two-fold opportunity for transports. basically, raw materials and products from the u.s. are shipped down to mexico, assembled, and sent back north as finished products. here in santa teresa, across the border, the biggest city in mexico is juarez, and one of the biggest manufacturers is there, where this dynamic is playing out.
>> that operation is primarily dedicated for the bto model, built to order model, for computers for dell and hp. it's the largest of its kind in the world of any company. our current capacity in a good day is about 50,000-plus computers per day. >> so there is a lot moving across the border here. that number is expected to grow. this is just one example. you have manufacturers, transportation companies, even the states themselves. expect to see this cross-border trade continue to grow. now, that as the economy continues to improve, consumer spending begins to grow, and also as new initiatives, including the u.s. exportation of crude oil to mexico begins to come online. that's the reason you're seeing billions of dollars being invested along the border here as we speak. back over to you. >> morgan, stay right there. just looking for thoughts here, guys, on what to make of all
this. >> actually, morgan, to what degree is the growth from this corridor coming at the expense of the west coast ports? i guess, in turn, how much of the mexican export business is really being taken from asia? >> and that is a great question because as we've seen costs in asia increase, that's part of the reason you're seeing this quote/unquote near-shore boom here in mexico. there's actually an interesting dynamic playing out because you have raw materials and products from the u.s. coming south, but you also have products that are being shipped in through those west coast ports from asia and then making their way south into mexico to then become finished products back here in the u.s. so in some ways, it's almost a three-point trade pattern. and the business here in mexico and transportation companies on both sides of the border actually expanding their operations in that country as well because as mexico continues to grow, you're seeing some of that trade, some of those exports from mexico not even
come to the u.s. anymore but ship back out to other countries. >> signs of that country's continued development. morgan, thank you. morgan brennan in new mexico. time for a cnbc news update with sue herrera. >> hi, kelly. here's what happens happening this hour. russian military officials say the pilot of a downed fighter jet was killed by grounds fire as he parachuted from the plane. russia is also denying the jet crossed into turkish air space. canada says it will take in 25,000 syrian refugees by the end of february. the newly elected liberal government made the announcement just a short while ago. officials say that refugees will be screened overseas before being transported to canada. health officials say at least 19 cases of e. coli are now linked to rotisserie chicken salad sold at costco stores in seven states. so far five people have been hospitalized due to their symptoms. consumers who purchased the chicken salad on or before november 20th, don't eat it.
throw it away. and with thanksgiving days away, the tsa is releasing a list of travel tips to help passengers get through security more quickly. the agency says get to the airport two hours before your flight and remember, keep those liquids separate in that little plastic bag. all right. that's the cnbc news update this hour. back to you. >> sue, thank you so much. could escalating tensions between russia and turkey end up raising the stakes in the mediterranean and persian gulf hot zones? the former u.s. ambassador to turkey joins us next. plus, we'll head to the l.a. forum and find out how terror fears are impacting concerts and other events later on "closing bell." stay tuned.
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brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. welcome back. a quick check on how we finished this session today. the dow did end higher by about 19 points, bolstered by energy. oil was higher in the session. the s&p adding just two points. the nasdaq, less than one. we have some breaking news on a data breach. sue herr ra is back. >> hilton worldwide is saying they have target the an unauthorized malware that targeted its payment card information in some point of sales transactions. hilton launched an investigation immediately and has strengthened
its systems. however, they say as a precautionary measure, if you stayed at a hilton worldwide hotel over a 17-week period between november 18th to december 5th of 2014 or april 21st to july 27th of 2015, you should check your records. they say this information would have included card holder names, payment card numbers, security codes, expiration dates, but no addresses or p.i.n. numbers were accessed. if you stayed at a hilton worldwide between those dates and you can go on their website, they have those dates listed, you should check your records. back to you. >> sue, just briefly, looking through this, they mentioned point of sale systems. with hackers being in their kind of gift shop areas. >> with starwood, it was the gift shops and restaurants.
>> is this that, or is this referring to all general reservation systems? >> they just say general reservation systems and point of sale. i don't know that hilton would necessarily be any different than starwood would in terms of where their point of sale is, but they don't break it out the way starwood did. starwood was specific in saying restaurants, gift shops. for instance, if you bought something at a gift shop that morning at starwood, they definitely listed that. they're just saying point of sale. so we'll see. i'll keep you posted. >> sue, thank you so much. any response again, a slightly different one here. >> starwood was also lucky enough to have a bit from marriott come as that news broke. hilton doesn't have that, not trading down big on this. it's all, i think, about how quickly they address it, number one, and number two, what steps they took to mitigate it
immediately as far as, you know, offering some sort of credit monitoring systems to the customers affected. >> the fact they have these defined periods when it was relevant means the market is not necessarily going to take this as too much bad news. >> fair enough. that was the very end of last year, second quarter of this year. please go check online. tensions are high after turkey shot down a russian fighter jet. seema modi has been following the reaction. >> the rally in russian stocks has come to an end following news this morning that turkish military shut down a russian fighter jet. the russian equity index dropping about 3%. its first fall in seven sessions. just last week, the index touched its highest level since 2008 on hopes that russia, working closely with the west to attack syria, would strengthen relations and result in sanctions being lifted sooner rather than later. but these geopolitical anxieties are dominating trade today with the russian ruble weakening.
etfs also trading lower. the concern among investors is that the unrest in this region will escalate and dent economic ties between turkey and russia and overall weaken the fight against the islamic state because, kelly, there's this growing consensus among political strategists that the west needs russia as well as turkey to attack or fight terrorism in syria. of course, outlier events like the one today really complicates that effort. >> it does, indeed. seema, thank you. joining us for his reaction to all that's happened, it's james jeffrey, distinguished fellow at the washington institute and former ambassador to iraq, turkey, and albania. serving the last two presidents. thank you so much for being here. >> thank you, kelly, for having me on. >> your first thoughts here on where this leaves turkey, where this leaves nato. what's next with russia and the response from america so far. >> well, that's a big order, kelly, because much is going on right now. first of all, we need to know the facts.
although, the preliminary indications are from the u.s. military and from our radar track i have seen is that the russian plane was inside turkish territory. we have seen similar such incursions in the past. so this is an example of russia pushing its weight around in a very sensitive area because russia's ally, syria, claims that particular province of turkey since the 1930s. the main issue for the united states is to find a way to de-escalate this incident without looking like it is abandoning or moving away from turkey, who is, a, its nato ally, and, b, is a country whose territory was invaded basically. president obama took the right tone today saying that turkey has the right to defend itself, which it did. >> mike? >> mr. ambassador, you say russia seemed to be acting in a provocative way by being in this air space. what about, though, the decision by the turkish military to actually shoot it down?
should we infer from that there has been extensive warnings and back and forth here, or does it seem like it was a little bit of a rash response by turkey? >> well, u.s. military personnel have stated that they heard the ten warnings the turkish gave the russian aircraft. the problem is, when you're moving at mach one and mach two in very advanced fighter aircraft, as both sides were in, with missiles that can be, once they're fired, basically not deflected from the target, you don't have much time to decide. and that's the issue to consider. those f-16 turkish aircraft probably thought that they might be under attack as well. >> i wonder now if we turn to the response here. richard engel reported that turkey's prime minister didn't spend much time this morning talking about it, that, you know, there hasn't been a lot of heated rhetoric since. we did see some response from russia and vladimir putin.
do you expect more? >> putin, first of all, is not predictable. i've had experiences with him, as have many american diplomats. he tends to push the envelope and basically do risky things. on the other hand, there's one obvious way to de-escalate this, which is to call for, as i hope american soon does, for an independent u.n.-led investigation of the facts. that will put putin back on his back feet because if he refuses to cooperate, then he's not in a good position to escalate. what we want to do is get him to de-escalate. he's the most likely person to escalate, not erdogan. >> well, that's a really thoughtful way forward. thank you so much for joining us, mr. ambassador. james jeffrey on "closing bell." our next guest will name a few potential takeover targets. and wait it will you hear what a-list celebrities reaction to the premiere of the new movie
"the big short" was. investors who saw the financial crisis coming and made fortunes betting against the economy. stay tuned. what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is?
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so hp enterprise, who do you think they could go after here? >> i think there's really a seminole event now post-split. you have to put fuel in the tank such as areas around cloud, cyber security, big data. there's companies like quick, splunk. these are the areas where you're seeing growth 30% to 40%. a lot of these other large tech companies like hp, ibm, oracle, they're in the right lane of the highway going 2 miles an hour. now they need to find what that growth engine is going to be. we believe it is in acquisitions. >> john? >> any names come to mind right away, big guy? for instance, vox, that's one of those cloud-sharing files via the cloud. that would certainly seem, after the big decline that it's had, there had been rumors swirling about this one. >> yeah, i think box is front and center in terms of how that fits on the cloud. really, right now for whitman, it's about going after hybrid
cloud. that could be names like box. you also could come and say big data like click, splunk, if they lever out the balance sheet. then you look at cyber security. you have proof point, ford net. there's a number of these sort of mid-cap players that they could go after, as right now it's going to be a battle royale for the cloud. this is their window of opportunity. look at ibm, oracle, look at the struggles they're having. now hp really has an opportunity here to, you know, put fuel in that tank in terms of m&a. >> what if they don't? what if they decide, you know, that all those added up aren't going to move the needle enough or they're going to wait and pick a more strategic direction. in other words, with meg whittman coming on the network tomorrow, if you don't hear some major aquiztive spree like this, what does that mean for the sharers? >> sure, look at emc.
they really had to sell to dell. it just shows. it's like watching grass grow in terms of overall growth. if it's not m&a, this is going to be a mt. everest like uphill battle in terms of trying to be a hybrid cloud player. as we've seen time and time again over the last few years, these companies talked a good talk, but they don't walk the walk. it really comes down to m&a. that's the opportunity. i think you see countless examples. look at microsoft. it's the only company that's done organically some acquisitions, but they made the horde decisions. >> dan, thanks for joining us, making the case. appreciate it. >> thanks for having me. >> don't miss an exclusive interview with meg whitman tomorrow at 9:00 a.m. on "squawk on the street." up next, one of the biggest names in the entertainment industry is making a triumphant return to los angeles to launch his new venture. he'll join us live from the l.a. forum when we come back.
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maple entertainment, now of the oak view group, who's launching a new venture for venues. welcome to both of you. jane? >> hey, kelly. tim, welcome back to l.a. >> thanks, jane. glad to be back. >> it's odd to see you in the forum instead of in the forum, instead of staples center. what is oak view group going to do. >> they have a lot of different divisions and will do a lot of different things. but one of the areas and divisions we're doing is pulling arenas and stadiums together to buy together, to sell together, to book together and to think together. so believe it or not, as a collective force, as big as these brands are, we don't tend to talk to each other as much as we should. so we're going to try to change the way we go about business, change the way we go about music in particular. >> you are going to leverage the cloud of the power of this alliance. and you want to make live music as profitable as live sports. give me a specific example how you will do that. >> this building is a great example it.
doesn't have a anchor tenant or a scoreboard or a press box. it is the -- bono thinks it is the greatest music hall in all of the world ux could economically build and create these kinds of buildings and facilities based on music. but we are always very geared toward the anchor tenants, whether it be basketball or hockey or both. music does 40 or 50 nights in a building so they will do more nights of music than a hockey or basketball team will play. but we sell separately and independently. we don't have the suite or the box or the sponsorship revenue or the premium seating revenue because we never combine and consolidate it. so we're going to think about how we treat music differently. this is predictable. it is coming. we know we have the dates. we just don't know who is filling the dates on any given year. >> how many areens in the alliance and how much does it cost to join.
>> we don't want too many because we can't satisfy them. some of the members, we've been called to do a favor or two. when you have the most powerful and respected guy in music. >> he is your partner. >> he is my partner. and i've been in the business 40 years and we could pick up the phone and call an agent and say you are not routing to this build, what do we need to make that happen. we have done that a few times and so far it has worked. we're there to make sure we protect the best interest of the building. so we can't have too many. because then we are stretched too thin. >> how many do you have? >> we have about 12. i actually picked up three or four this week after the announcement came out. we will end up with 20 or 22, somewhere in that neighborhood, plus a few stadiums. and then we'll probably limit it to that to make sure we could be affective. they don't pay a lot. they pay us about $100,000 every quarter. and from our standpoint, we earn a little bit of what we create for them.
and arenas sell sponsorship independent, one-on-one. and we're going to go to them to take categories that no one sells and combine 20, have a national footprint like a media platform and go to the categories that would never consider buying it and say we could get you a roll out nationally and sell the inventory. we get paid on those sales. >> tim, we have to go. but real quick, you are helping david beckham bring a soccer team to miami. there is news there? >> i think we're -- we have found a site. it is probably different than what people think we're doing. we're going to know in the next several days and before major league soccer and the board of governors next weekend. >> kelly, back to you. you have a lot going on. you are investing in start-ups. we could go on for half an hour. we could talk about security for stadiums, which they never talk about. it is all one-on-one. more to watch from aeg. >> great stuff, jane. tim, please come back, whether it is security or live sports stuff that is happening in los
angeles, there is much, much to discuss. thank you. hoild stars were out in force for last night's premier of the big short. it is a movie about investors who made a fortune from the financial crisis. up next, what they had to say about the film. through elkhorn ranch,d the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks with chase for business. and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it.
the big short, the big -- the movie based on the book by michael lewis tells the story of the buildup to the financial crisis in 2008 and the four men who bet against the american economy when they saw the crash coming. our producers caught up with lewis and the stars and the drrktor of the -- the director of the film at the premiere in new york last night. >> it's preposterous. it was the hardest story hi to write in terms of explaining stuff to a reader. >> i've been angry about it since it went down. the images of the families being thrown out on the street and the loss of savings an not one official is held accountable. i don't understand this. what surprises us is that it is still going on now. it is going on in different forums but the same mentality and greed is good, and the rating agencies are worthless. and it needs to be looked at. because it could happen again. >> i didn't really have much of
a reception of wall street going in. and so there wasn't much to change. i was sort of apa thettic about it, frankly. and then in reading the book and the script and talking to adam and going through the shooting of it, it's a terrifying story. >> stop being intimidated by banking. stop being intimidated by your broker, your bankers. ask questions. do your own research. it is not that hard. >> and there you have it. all reacting to the movie "the big short." . breaking news news on walmart. >> what is happening, sue? >> a u.s. investigation into potential foreign bribery by stores have unearthed possible misconduct in brazil. investigators found live to support the sweeping allegations involving mexico that initially prompted this particular probe. however, according to the
documents and people familiar with the matter, brazil is now the focus. it is an investigation into potential foreign bribery by walmart in brazil. kelly, back to you. >> thank you, sue. looking for reaction, walmart shares and faced this with mexico and was some extent cleared in the "wall street journal" reporting not long ago, mike. >> it is interesting. and i think walmart didn't come out and say this, we were operating by the rules in place down there. it was pretty transparent. so hard to know if this is going to stick any more than that one did. >> i wouldn't think that it is eitherism agree with -- i agree with michael. i think over all walmart is doing things right and turning that thing around. >> and let me ask, because we don't have the details, but this is petrobras related, does that change the narrative. >> petrobras has been accused of much larger fraud than this and much larger payoffs than this. and for decades and decades. i have to believe that is much bigger than walmart. >> fair enough. again, we'll keep an eye on it
for everybody. we'll leave it there are for now. mike santoli and john naj with with us. melissa lee, what is happening. >> nall analysts are getting bearish so we have one analyst with three devices here on set that will kill the holidays for go-pro. >> kill or help -- >> no, hurt. >> hurt. >> my hearing is going. over to you guys. >> thank you, kelly. "fast money" starts right now. live from the nasdaq market site overlooking times square, i'm melissa lee. the traders are pete, steve, dan and guy adami. tonight on "fast," geopolitics back at the forefront with turkey and syria dominating the headlines and one retired colonel said it is about to get worse. what it means for your proefl. and tale of two hewletts. it is