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tv   Closing Bell  CNBC  October 5, 2016 3:00pm-5:01pm EDT

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will survive an intel hike. from jeffries, very interesting stock there. apparently i need to learn more about what ibm does. i just got an e-mail. thank you for watching "power lunch." >> "closing bell" starts right now. welcome to the "closing bell." i'm sara eisen in for kelly evans. >> i'm bill griffeth. a pretty good rally today. a pretty good bounce, if anything, after the two down days we've had. energy sector moving higher as oil nears $50 a barrel here in the u.s. and the financials are getting a boost again as yields rise again. we're going to dig deeper into these moves coming up in just a little built here. >> the pattern is developing. >> developing, that's for sure. >> major news blaking the i bre
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afternoon. the fbi secretly arrested an nsa kr contractor for stealing contract materials. he worked just like edward snowden. another black eye for the firm and shares are moving slightly lower. we have details on what was allegedly stolen and the potential fallout here coming up. meantime, salesforce.com is reportedly getting more serious about this bid for twitter. shares of both stocks moving in opposite directions, although there has been a comeback of sorts for twitter. jim will get more on this. a possible bid for twitter by it sales force. the weaponization of finance. that's when countries like the u.s. use the power of banks to impose its will on other countries. ian bremmer will explain the
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risks of this strategy. >> it's a lot to think about. he's calling it after the g-zero. you've got the imf meetings tomorrow. >> this will help get us in the mood for global conversations. >> let's start with western crude at $50 a barrel. plus this discovery, more oil off the coast of alaska. jackie d. has more for us at the nymex. >> the high was only 3 cents off. the technicals really driving this trade right now. of course, we do have some support from the opec deal and the number. usually the trend will break through, even if it's only briefly. it didn't happen today, but traders still think it's possible. how long can we stay at this $50
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level? that is the million-dollar question. many people say we're going to be range-bound for the rest of the year with this being the high end of the range. remember, we could take another drastic dip down into the 30s. we did do it last year going down to nearly 26. that's when demand dropped off. some people are concerned that opec deal just might not materialize at the end of november, so that's something we have to watch for. finally you mentioned that discovery in alaska of oil reserves, that would boost the state's production by 40% in the future. this is just one of those examples. we were very concerned about oil being a scarce resource in this country, and now we find ourselves to unlock all these, we could potentially see oil prices continue to stay low, even lower than where they are. if we don't get the demand up to
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churn up the supply, and we keep poaching, it's not going to balance out. back to you. >> it's good if we can. you said highs for the session. sergeant gill foil, and rick santelli checks in from chicago. you know what? i'm going to start with r.j., and you're the fixed income and so do stocks. we have this sort of -- what do you see going on here. >> i think starting a couple years ago, looking to push our yields a little bit higher. then today we had sochl strong
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data. a nice bounce-back in the u.s. economy, affirming the growth path is certainly going to be well above 2%. with that yields are heading higher and they expect in terms of other fed officials going forward. >> so, saerj, tapering used to be a really scary word for the markets, this prospect of federal income tax hikes and better data used to be her blessing to the fed to go have them make a move. oil stopped at $49.95. which is the tech level rkts it can't be put tonight. going back to the other so i had of question, the two ism reports were very, very promisely.
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the manufacturing and the non-manufacturing sides. ism. this friday we have the jobs report, next week we have retail sales, next week efrl, then i think the fed is clear to go. i don't know if they'll go in november, but i think if we look like we these products rkts. and now we get to rally in stocks. what do you make between the interpersonal relationship and fixed income today? >> i think the fish market has issued remembered. >> sometimes those types of confer mon danes move have to
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make. in terms of stocks, i think that's pretty clear f. but what short memories we have. this is the problem with near termism, especially when it comes from the top down. last month was 51.4, the lowest level since february of 2010, okay? so really there's nothing new. we ebb and flow on data. you take a step back, nothing has really changed with regard to the glide path. i look at forecasts from the imf. they're about as accurate as we see from our fed. but the one thing i found curious is how the u.k. versus the eurozone in its entirety for growth next year, that spread is not very wide. what that tells me is they completely miss the dynamics there, and i think all of these are important issues, but at the end of the day i think stocks are doing well because i don't think anybody soersly considers
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fred making a move in december. what's going on in treasury isn't because the economy is on fire rkts but what's left of the fixed income gas. >> a lot of good points there. r.j., how is the market position for the jobs report on friday? >> well, over the long haul, the market has gotten much closer to neutral. positionwise, it's not too surprising, then, whether it's news r there at the jobs report on friday. someone neutral in his positioning needs to move and react to the data. i agree we've gotten focused, but many forecasts from the fed to the imf to the private sector about gdp rates is proven to be
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wrong. with the rumors coming across. i wouldn't be surprised to see an upward bias to meals today as long as the date at reflects it. >> you're a lot on the gord those poll odds. >> is. if, there is a chance, maybe not in the last hour or so, but we can go to $21.74 real quick, maybe within a day or so. >> thank you, guys, so much. appreciate it. now for the deadly hurricane making a beeline for the southwestern u.s. mccoy is in a walmart in miami with the latest on the storm. people are probably stocking up, blake.
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>> reporter: from everything from batteries to flashlights, even wood to board up people's windows. this is happening from here in miami all the way up florida's coast and into the carolinas as this storm looks like it will brush light. right a lodge. the governor has ordered evacuations and president obama is urging tho those. >> if there is an evacuation order in your community, you need to take it seriously. we anticipate that not only is there still a chance that the core of the storm strikes florida and some of the states further north, but even if you don't get the full force of the hurricane, we are still going to be seeing tropical force wind, the potential for storm surge
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and all of that could have a devastating effect. >> a major concern with those winds is, of course, not only the damage to homes it can cause but also to power lines. it can knock power out very easily, and it will be quite some time before power can be restored in the milgd of a storm, obviously crews are not be enough for the storm. get enough at this power, they are cancelling all flight, but after tomorrow, there will be no flights in and out of miami, and this is a major hub for them. guys? >> before you go, i heard at least two counties in florida, they're mandatory evacuations. the rest are ont, or are they expected to make them mandatory in the long-term or short-term.
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we heard a similar thing from governor nicki hail he'll. many. look at it as an evacuation and get out. >> a lot of these people have been through these before. blake mccoy in. >> the dow, a pretty good balance after those two down days we had so far. >> coming up, ""mad money"" potential bid for twitter. jim joins us with the highlights and whether he actually thinks sales force and twitter will make a good fit. >> a lot of companies, apparently, are a good fit with twitter. >> another black eye -- the fbi
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arresting an ntsb contractor stealing. we will speak with a accident tent pochlt. cnbc, first in business worldwi worldwide.
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amazon launches a new benefit for prime members in the u.s. it's called prime reading. it's a service that provides access to more than 1,000 kindle books, magazines and comics at no additional cost. in fact, users don't even need a kindle e-reader or fire tablet as long as they have the kindle app on their ios or android devices, citing amazon's prime membership service, morgan stanley and suntrust are raising their price targets on amazon stock to 950 and $850 a share, respectfully. another samsung phone
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overheating and putting out smoke on a plane. josh lipton has those developing details. what happened, josh? >> so, sara, more bad news for samsung here. a samsung galaxy note 7, the very kind of smartphone that was recalled for overheating batteries reportedly started smoking on a southwest airlines flight. that incident happened this morning, apparently forcing the evacuation of that flight while it was still on the ground at louisville international airport. there was smoke in the cabin, but nobody was injured. now, there is some conflicting news right now about the phone causing these problems. the owner of that phone is telling nbc news that it was a replacement galaxy note 7, but samsung in a statement to cnbc saying there is no evidence that this incident is related to the new note 7. we are working with the authorities and southwest now to recover the device and confirm the cause. we have reached out to samsung
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and will bring you that reaction if and when we do get it. guys, back to you. >> thanks, josh. and that's a replacement phone. >> right. justin, in the middle of a time when they're already in damage control over this massive crisis. interestingly, the shares are back to the highs of the year. >> we'll have to get to the bottom of this before it's over. our next guest says politics as we know it is over. and now he's calling on the national monetary fund to turn its course toward politics for the first time ever in order to combat a rise of what he sees as unilateralism and the use of financial leverage as weapons. >> with us now the president of the eurasia group, ian bremmer, who just spoke to the fed. ian, good to see you. >> good to see you. >> we're all going to d.c. for the fun tomorrow. >> you guys are. i'll stay here. >> here's the problem. the imf typically does not get involved politically.
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even now, for instance, christine le guard weighing in on trade. they're careful not to make it a global issue. >> we've dealt with the sort of big recession, the financial crisis in 2008. but the geopolitical recession is really just picking up steam. tha that's about a lack of global leadership, it's unilateralism of everyone else, the anti-establishment tendencies we're seeing makes it difficult for them to do their jobs. if they're not able to address the politics in their mandate, then they won't be fit to create the kind of stabilization we desperately need from these organizations. if they won't do it, the chinese is more than happy to pump a bunch of money into countries, but they won't have the stamina that the imf was created to support.
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>> you said the cooperation that has existed since world war ii is starting to dissolve right now. we're seeing that. how does the imf deal with that. they are, in essence, a political body. how do they deal with the politi politics? >> right now they deal with it behind the field. christina leagarde said they ned to recognize that political instability and the changes in the political order are going to directly undermine their mandate. if they're not able to comment on that in the same way they comment on a country which is not putting policies in place that will allow them to grow or meet the imf mandate, you've got challenges. right now they're trying to fight with one hand behind their back while other actors are much
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stronger. when donald trump says putin is stronger than obama, of course, he is, he's a dictator. the fact is if other institutions around the world are able and willing to bring everything to bear, to actually make economics work for them, then american-led institutions have to do the same thing, and the imf has not had that capability. >> but the imf is not necessarily an american-led institution. yes, it is headquartered in washington, d.c., but the way the fund works is that many different governments around the world put money in, and they have to please their parties that are members and that are funding them. in fact, congress has held up money for the imf for a long time now. so how can the imf go about picking sides when, a, it's not an elected body of officials, and b, they can't have loyalties because all the members pay in. >> the imf is not an american-led institution. on the other hand, it was created by the united states and
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has a series of values that support liberal democracy and western-based free markets. now, no question in a world where the chinese and other emerging markets are a bigger part of the global economy and they're paying more in, they need to have more of a say. so the imf's mandate is going to have to represent less of those western values than it has historically. but you can't allow the imf to become the g-20 where whenever they meet, they accomplish almost nothing. the imf has to get things done. >> are they on board with your idea? >> they asked me to do it. it was precisely the fact that christine and david lipton, number one and two at the imf, realized they did not have a political mandate. they said, can you put together a pamp for per for us and we'll around and talk about this. >> and the paper is called
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"after the g-0, overcoming weaponizati weaponization." another good conversation is tapering in policies. about 45 minutes left to go here before the closing bell. triple digits on the dow, 119, s&p 500, 44%. the nasdaq, .50%. sara kelly talks to jeff osher. that will be coming up in a minute. an nsa contractor steals
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government secrets when the "closing bell" comes back.
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let's send it to kate kelly. she's out there exclusively at a conference by jeff osher.
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it's all yours, kate. >> it's great to be here with jeff at his first ever television interview. welcome. >> thank you. >> this is a really challenging market, but you're up 6% since june 30 which is better certainly than the average hedge fund and better than s&p by twofold amount. tell us how you're doing it. >> we're not doing a lot differently than what we've done the last 11 years. we're faux very focused on idiosyncratic ideas. there are very company-specific ideas that have nothing to do with gdp linkage on the long side, and there are a lot of smaller, mid-cap names that we feel have holes in the balance sheet that we continue to focus on in the short side. >> typically you tend to run twice as many short positions
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you do long. >> the fund ifrtself is disciplined around a market approach. with the longs typically being two times the size of our average short, and the net effect is a market neutral approach that insulates us from the volatility of the market. >> one thing you've done, it's not a short thesis, it's a long one, but green dot, the pre-paid card company, you called for three new board members you were suggesting, two new directors, the ceo is still in place. what's your next move there? >> i need to be somewhat sensitive here but i think there is unfinished business at green dot. this is a franchise that has assets that could be unlocked to world class leadership. the board, i think, understands the referendum that shareholders unequivocally delivered with only 20% of all shareholders voting for the ceo. there are two paths here.
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the first path is to replace the ceo. and there are reasons that we would support the board choosing not to take that avenue. the second avenue is to allow a strategic or financial buyer to try to maximize those assets. at this point based on conversations we're having with the board, we think the board, the new board, the newly constituted board, understands what the fiduciary duties are and has real reputations, and we think they'll ultimately do the right thing here, which is a change from what we thought would happen three to six months ago. >> okay. one last question because i know we have to go in a moment. i'm curious because you went for gold. how do you feel about gold now? some people like it as we enter a field of volatility, partly because of the new presidential decision? how do you feel about that commodity? >> i don't have much of an
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opinion on gold. we have several mining shorts in canada that hedge out that commodity risk. >> a market-neutral philosophy, again? >> yeah. barrick gold have taken $2.5 billion out of our cost structure and it's a very different entity today than it was when stock was trading at 3 times book valley 12 years ago. >> maybe i'll follow up with you afterwards and we'll be bringing you guys many more details from this afternoon later today and tomorrow. thanks so much to jeff osher. back to you, kelly and billy. here's what's happening at this hour. florida's governor rick scott says that state could be facing its biggest evacuation ever, because hurricane matthew is threatening almost the entire atlantic coast of florida.
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american airlines cancelling all flights arriving at miami beach, ft. lauderdale on flights after 4:00 p.m. taliban and afghan forces continue to battle. before the taliban were beaten back by afghan forces with the help of u.s. airstrikes. safety regulators investigating complaints that side airbags on some nissan versas can inflate if the driver or passenger doors are shut too hard. the recall covers about 155,000 cars from the 2012 model year. and the first jet pack flight in the uk took off today. there he goes. a former australian commercial pilot, an inventor of the jb-10 jet pack reached 400 feet in
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flight. that would help with london traffic, i would think. >> bill, you need that coming in from new jersey. >> you're going to get to la guardia tonight. we all could use that at various times. >> it looks beautiful, actually. nice, slow ride. >> thank you very much. see you later, sue. although you would get helmet hair. we couldn't have that. 20 minutes left in the trading session. the dow up 120 points. we have a leading trader telling us what he's watching. a major force could be a bid against twitter. what are the odds an actual deal here gets done? well, our very own jim cramer just spoke to sales force ceo about it and he'll tell us in a few moments.
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feds will have to do something more a little earlier than we anticipate. we're starting to see all fed governors come out and say, we need a raise, we need a raise, we need a raise. >> in fact, yields are going up, and now we get a rally in stocks. is the market becoming accustomed to that idea? >> we tested it numerous times. we are accepting of the fact the rates are going higher. we know we're getting one. now do we get it in november as a surprise? the market won't like that. or do we get it in december when we see more of what's going on? we had oil up. oil has been a major mover in this market. rising rates are good for financials. they're the two strongest segments of this market today. >> so do you like this market here? >> i don't know if it breaks out by any means, but i think we've been in a nice range. we'll buy these dips and sell these valleys. friday may be the indicator. if this number is that good, the fed may be forced and the market is not going to like that at
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all. >> we'll see. thanks, matt. sara? 20 minutes to go here, bill, before the closing bell. we are still looking at a rally on wall street in three sessions. the dow is higher by 125, the s&p half a percentage point and the nasdaq up half a percent as well. the fbi has arrested an nsa contractor for stealing and possibly leaking highly classified computer codes designed to help the u.s. in cyber warfare. we're joined by a network security pro next to discuss what happens now. and is sales force actually preparing a bid for twitter? those stocks are on the move. we just spoke to "mad money's" jim cramer about that possible deal, and jim will be joining us in a moment with the highlights. and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere.
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some big news breaking earlier this afternoon regarding national security. the department of justice announcing the fbi recently arrested an nsa contractor who is accused of stealing classified materials. the man worked for booz allen, the same place edward snowden worked for.
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the material the man is accused of taking is called source code, which was meant to hack into governments like china and north korea. >> senator john carlin was on "power lunch" and he spoke about this recent arrest. >> this was done intentionally, and when you're a government employee, you swear an oath to protect information, knowing the damage that the disclosure of sensitive sources and methods can do to our ability to protect ourselves against all sorts of foreign threats. so we take this type of case very seriously. >> joining us right now from the cyber summit, david kennedy is ceo of trusted sec. he himself is an employee of the nsa. howard martin, is that the suspect's name? >> that's right. >> what do we know about him, and do we have a notion of why
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he was stealing this? he didn't seem to have the same kind of political motivations that edward snowden did, right? >> we actually see a long lineage of this happening all the way dating back to world war ii where you had folks who would defect to other countries, such as russia and china, to sell these secrets. these type of tools that are used to infiltrate and attack other countries are very valuable to this country, so you can get millions and millions of dollars just by selling these. i don't know if that's the motive, but it's definitely an enticing one when money is tied to it directly. >> were there actions taken because of edward snowden, and if not, how is this happening again? >> these tools are designed to infiltrate some of the most sophisticated security systems, so having access to nsa secrets is very damaging because if a contractor from booz allen is able to get these, who knows how many other contractors are out
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there? i was talking to matt nelson about how big this could be in a global perspective, around the damage it can do and the tools they can use. this looks like it's either from the 2013 or 2014 time frame, and it went this long without being detected. that's a pretty big gap in security from the nsa. >> we ask the same questions every time this happens, after the edward snowden incident -- >> every time. >> when we talk about this fellow martin, maybe there is just a financial incentive, as you're pointing out here. you know, we have to rethink who has access to this information and how valuable it is. how does booz allen get all this in material? >> what you're seeing is the problem the military has right now is they have cyber command and all these different areas, and they have trouble maintaining talent because we don't pay as much as the private sector. so they go to booz allen and
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other organizations that provide these types of services where they can pay these people and go through government contract. when i was in the military, i had a high level of government clearance. i never would have thought to do this, but i was very compartmentallized in what i could see. the way of protecting this information is a little bit looser. you saw it happen with manning, the army soldier that was able to release confidential information to wikileaks. edward snowden had success out in hawaii. there are probably other contractors and other pieces of data that we've leaked that we have no idea of right now that's out there. >> we did get a statement from booz allen as a result of all this. here's what they said. when booz allen learned of the arrest of one of their employees by the fbi, we immediately
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reached out to the authorities to offer our total cooperation in their investigation, and we fired the employee. we continue to cooperate fully with the government on its investigation into this serious matter. >> this man hacked into source code. can you tell us who has it and what it's worth? >> it how the nsa performs objectives or targets around the world. if i want to hack into china, i have a particular source code i can run that's very, very secret. it's been developed and it costs a lot of money, researchers and things like that, to go and build. that's how we break in and steal intelligence on military capabilities. think of it as equivalent to a missile or something like that that we can use for military capabilities. it's very, very sensitive, it's very, very secret and it's the last thing you want to have ever, ever, ever be exposed to
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other government agencies. it puts everyone at risk. >> how lovely. david, thank you. appreciate your insights today. >> thank you so much. appreciate you having me on. >> david kennedy used to be with the nsa now the ceo of trusted sec. watch for twitter to start fielding bids this week. our own jim cramer sat with mark benioff, who is reportedly just one of the executives for twitter. >> when it comes to twitter, you have to look at it like this. number one, we look at everything. >> you look at linkedin. >> we look at everything. you name it, we look at it. we have to go deep on everything. we have to understand what is possible for our shareholders, what isn't? but in the scheme of things, if you look back at my track record as a ceo, i think you'll find that while i look at a lot of things, i actually pass on most things. >> well, jim joins us now from san francisco, and mark considers twitter, he told you, it's an unpolished diamond or
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jewel or something like that. do you think it's a good fit? he's been on a binge this year buying all kinds of companies. does twitter fit the prototype for them? >> well, this one probably around $29. it would be 20 billion and it does not fit the prototype. he played rope-a-dope with me. i don't know how many times i could ask him the same question without realizing, he's going to give me a mohammad ali answer and i don't want to be on the canvas. this guy is interested in buying it not for what it is but for what it might be. mark benioff has a vision than the guys who actually run it. figure out how to get more people on, take other people off it who is running the company right now, restarting the growth and at the same time not getting in the way of his production of doing 10 to $20 billion over the time frame that it might take to literally fix this twitter. he's not giving me a no, he's not giving me a yes, and i have
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to tell you, i think he's very interested at a price. >> well, the price is going up by the minute every time we speak here, jim. twitter shares up by about 6% right now. it was important to watch shares during your interview. they popped off the lows of the day down at 7%. i just wondered if they were trying to play it down at all because they've been getting hammered on these reports. >> i think a lot of what's going on is twitter, when it reports, is going to go down very big. i think the company has no growth. it hasn't spent to be able to get any growth. it talks a big game about the nfl or whatever the heck it's talking about these days, but it's not growing. so mark will be buying a no-growth asset whatsoever and marrying it with a company that has tremendous growth. it would slow the growth down, and what does that mean? the growth stock owners, the big mutual funds would sell, sell, sell. if it sells, sells, sells, just
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sthoot down and add it right here, right now. he didn't take the bait. why didn't he take the bait? because i think he wants to do the deal, he envisions twitter what he wants it to be. but right now? sigh nara when he puts this a little differently. do you think there's other companies that sell better than twitter? >> the google shares are quite flat now, actually. >> if you look at what he's buying whether it be artificial intelligence, whether it be the einstein program he's unveiling, all of these are about mining data. what is the biggest chunk of data out there not being used? i think he would tell you it's twitter and the twitter feed. but remember, mark does not look at the company and say, wow, all these guys are kurting each other and fighting; i don't know. there could be billions of people who feel like facebook is
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taking away all the equity. facebook, amazon, alphabet. that's all you hear about here. the only one in the game would be twitter. if you buy twitter, it's like buying an nfl franchise that's a new franchise with no players, except you're going to lose a couple years and then be able to make the plaufyoffs. mark is not a loser, but it's the only game left that's social, that's mobile, that's artificial intelligence and be the. >> good stuff. good to see you, jim. thanks. appreciate it. >> with a football remps and everything. be sure to catch. mark beioff. >> the dow up 112 points?
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>> do you think the run in utilities is over. our next guest says think again. he makes the case for owning them, on next with "closing bell."
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the dow coming back up, 147, and we were at 156 at the peak there. joining us, pete steve kroll from crespi hartd. >> we think the safer names are going to play. we're also thinking under 2% for probably two years because inflation is very rampant out there in a lot of industries. >> i would say conventional wisdom would probably say the opposite, that we've had low rates the last few years, and groups like utilities are still overly expensive and in bubble-like territory because interest rates are so low, so they're going to go up. >> that's 100% right, and when we came out here a year ago, two years ago, three years ago with bill, we said the rates will stay low. the point is if you look at
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energy, you look at retail, you look at various industries, farm, brokerage sbis, money management business, there is deflation out there, so we just think that -- we want the rate in a cloud of dust. >> you think this is a fed rate again? >> the fed has been talking very tough, and i think they'll do something in december. >> we remember when that he did the last time in december. not much. >> this is the top end of the range in rates and probably the market short term. >> thanks, steve. steve kroll joining us. as we head to the close of the dow at 102 points, we'll have the closing countdown in just a moment. more on the story developing this afternoon. an nsa contractor arrested on suspicion of stealing code used to break into other countries'
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computer systems. you're watching "closing bell "snoochlt
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last four days. the 10-year yield, we're at 171. >> and this is the source of a lot of movement here. bank stocks hitting some new highs today, interest rate sense activities pressure. >> even though the dollar has been stronger here, we've been closer to $50. we hit $49.95 today. >> ag hitting 15-year highs. >> the price of gold has moved lower. that's reacting in part to the stronger dollar here. then the stock market today, we get this bounce after two down days with the dow up 114 points. again, that's from the last three trading sessions. >> put up, for example, bank stocks or energy stocks. i mentioned eog. we got the smaller companies. we have bank stocks like sun trust, regions financial and zion at 52-week highs.
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haven't seen that in a long, long time. and finally those interest rate stocks you and i keep talking about, the utilities in the telecom down today. >> the closing bell at the midboard at the nasdaq. stay tuned for more in just a moment. welcome to the "closing bell." i'm sara keeisen in for sara kelly. without closing up 10 points. s&p up nine, the nasdaq up about half a percent. the small caps actually doing better. financials, energy and industrials lead the way higher. those great sensitive telecom and consumer staples lag.
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young trading lower by its earnings support. we'll bring you those. and then a former contractor for the nsa has been arrested for possible theft of highly classified computer codes. we'll bring you the latest on that developing story from our own cambridge cyber security summit coming up. first let's talk about this rally. joining us for the hour today n cnbc commentator mike benpoli, and lisa kopp from u.s. bank. mike, we see a selloff in bonds and a pretty decent cyclical rally in stocks. >> last week we went down on that, so we thought maybe bond yields and stock prices were going in the same direction.
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i think a few things are going on. we have more evidence of a little bit of a september bounce in the economic data with the services ism. we definitely got another turn of the screw saying stocks can be okay with that and a rise in bond deals if it all seems to be happening for the right reasons. but we're still in this range. i don't necessarily see this as a decisive move. we're still trapped where we've been for 11 weeks. also heavily shortage stocks popping, a lot of noise out there today, so a lot of reasons for stocks to be up on the day and higher yields did not stand in the way of it. >> lisa, what do you make of this, the yields going higher with stocks starting to move higher as well? is the market saying it could accept a rate increase here in the near term? >> we are actually feeling positive similar to mike as well, even though there is, we believe, the base case for a rate increase in december. we think actually the he cequit
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market as a good case to possibly climb higher. the reasons for that is the numbers come in good on the economic side. there are reasonable assumptions you can make on the bottom upside for companies continuing to bring in some good earnings delivery through the end of the year. and at the end of the day, the interest rate outlook overall and inflation outlook remains restrained. so there is plenty of support for that equity market to continue to grind higher. >> i'm glad she brought up earnings, mike, because we are on the brink of another session season. where are the analyst estimates and how much is baked into the market since it's run up now at this point? >> coming into the week, s&p 500 earnings for the third quarter are supposed to be down 2.1% year after year. what's interesting about that is one of two things. estimates were cut over the course of a quarter less than normal, so maybe that means the companies are not maybe seeing things deteriorate as much. also the average beat the typical beat rate of 30%.
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that gifves you a shot in third quarter. but i think it's the fourth quarter everyone is keying off on and sales start to recover. to me it's going to be a sector story. but i do think to the second part of your question, sara, i actually think if we had big down surprises to earnings, that is certainly not expected. >> steve grasso has closed the books on this wednesday. what did you make of the rally today? >> i think without oil this rally does not take place. if you look at that correlated versus inverse correlation between the s&p and oil, it's correlated right now. if we don't have strength behind oil, the market goes no place right now. opec, i said it to you yesterday, opec has taken the place of the fed in the eyes of many of the investors. we've looked at guys who think this is a technical bounce, maybe people on the sidelines. look at ism. >> better.
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>> we've had ism take this market down a month ago, so now we have to see is ism an anomaly or retail sales better, industrial production better, but we have to wait a week for that. >> we also have to wait possibly after the september numbers because august was weak and september is now bouncing back, and we wonder if numbers like today on services are going to be the new trend, or was it just a correction in what we saw last month? >> we're generally feeling good about where economic indicators are headed. if you look at many of the leading indicators such as wages or unemployment or consumer confidence, they remain steady. while there are certainly headwinds and risks we want to remain aware of, between that and our expectation, that company earning should come through with a good, modest, steady trend of growth. we believe we'll be okay coming into the end of the year. >> all right, lisa. thank you for joining us. appreciate your thoughts on today's market action. meanwhile, new questions are
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being raised about the price medicaid has been paying for those epepipens. meg is going to update us. >> this is the characterization under medicaid of whether it's a generic drug or an innovative drug. mylan has been charged by a number of congress men that it should be charged as an innovative drug which would pay 20% rather than 13% as a generic drug. medicaid confirms they have been overcharging. this is a letter from medicare and medicaid services. in this letter they say cms can't comment on the total amount of rebates owed to mylan for this classification. the cms confirmed it reached out to mylan several times saying the classification was
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incorrect. mylan trading basically flat right now, but this has been a continuing concern. >> it shows how politically charged this issue continues to be. the biotech index is down 10%, mylan down even more. >> since hillary clinton had bad words to say about the whole industry, to put it politely -- >> more than a year ago. >> exactly. it bounced around, but it had been coming back, and i think mylan was the new thing that said, why are we focused on this? let's go invest. there's too many other spots where we can put our money to work versus having every other night there be an adverse headline to the whole sector as a whole. and then you have wells fargo there. so it's financials, it's biotech. both are capable of rally but why? >> you know what i find interesting, though, it's an
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adjacent story which is the cvs's of the world, those stocks have been weak. maybe they got caught up in that defensive sector trade, but i also think this is bringing attention on that entire food trade of how people get paid for drugs and all the reimbursement. >> they are getting some of the blame. >> let's move on to another story. twitter shares popping today that the company will be fielding offers as early as this week. let's talk about alphabet is the best thing on twitter. mark benioff was just on our air saying sales force is going to be very aggressive. they really want this company. but you think google is the better fit here? why? >> i think you need to look at two things. number one, you need to think who can do the most with it, and number two, who can pay the most for it? i think google, or alphabet, as it's known now, can do it more
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successfully. we published a note yesterday outlining six reasons why we think google is the likely buyer. one is clearly data, one is that realtime information that google doesn't have or has a little bit of which they can dramatically improve with twitter, and last but not least, valuation. goog orlanle or alphabet could 4 or more and it would still turn into a nice acquisition because they can take the costs out that no other player can do. >> you said the $30 billion big price tag for twitter would not be a percentage of alphabet or anything else, but is there a sense a company has the appetite to be a buyer, even of a company that size? >> the biggest acquisition --
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they've made two acquisitions, really. the biggest was youtube, the other was double click, and both acquisitions was 2 or 3 billion and they ended up performing very well for them. they have $700 billion in the bank. they have $30 billion here in the united states. they don't need to repatriate any of it. they checked so many boxes that to us it makes no sense for anybody else to buy it other than alphabet, and they certainly can. >> steve grasso, thanks for being here. when you look at twitter, what are the chances -- it behooves them to have a whole litany of corporations that can buy them and companies that could be in this m and a mix. what is the chances there is no buyer? i'm hoping there is, but what are the chances there is no buyer for twitter? >> for your sake, i'm hoping there is also, because fundamentally, just based on the
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p and l, the stocks were overvalued, clearly. there was already a built-in premium. jack dorsey has been at the helm for 12 months. they haven't done a whole lot. q3 results will be coming out over the next two or three weeks. we don't think you'll sigh lee out of him. they've tried things in this streaming context. i don't think it's necessary to move the needle even though it's a strategic move on their part. i think shareholders are going to start making noise if two or three weeks go by and we haven't really seen any bids emergineme. then you'll have activists to start take a more serious look at this. >> mark beniotf, or else that was just the biggest bluf we've seen out there.
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zp zptz. >> steve areno, we will see you next hour, i take it. your journey is not finished. >> i'm going to hit the subway. my favorite part of the day. abhey lamba calling securities a disaster of the day. a hot story and a hot stock with twitter pushing up another 5%. yum earnings. we'll look at an analysis of those earnings to find out how taco bell's breakfast offering in the chinese operations are impacting the bottom line. plus, black rock is cutting fees for a dozen of its exchange-traded funds. will that spark a fee fight in the assets management industry? golden sachs asset management business just had the closing bell. we'll join you on that in just a
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moment. plus we'll have details for you on the nsf contractor allegedly leaking secrets, and the national security agency which employed alex snowden. happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen.
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blackrock announcing it's cutting fees on its etf. a move that could be more competitive with vanguard and state street. >> certainly investors will take advantage of lower fees. we're joined by the blackrock ceo. >> apparently sara remembers that day. it was just over a year ago that we launched our product. >> into a very competitive market. everybody has etfs now, right? >> it is a very competitive market and obviously it's evolved over the almost last 25 years. really over the last 10 years, it started to evolve with players like ourselves, goldman
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sachs asset management, who wanted to offer the etf wrapper, if you will, like any other product. >> your etfs are what would be called smart data, fun factors or some other weighing etiology that is trying to perform. that market is also a quarter of a trillion dollars. how do you stand out there? >> indeed, mike, in fact, that's an area we've sign leen a lot o growth in just the last year. we've seen over a billion and a half of inflows just in our products over the last year. really, i think there's two ways. one, the strategies have to be able to stand on their own. you have to be known for this and at gsam it's in our cocor core strength. the oert is cost. we took cost out of the equation by offering our lineup at lower
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prices. that really takes it out of the equation of the investor of deciding on the strategy and not worrying about what the cost is. >> what are you doing about the fees in responding to blackrock's move? >> we came into the industry with what we think is very competitive fees. when you look at the average of the smart beta category, 38 basis points. extremely competitive as well as price lower than some of the other beta offerings out there. when you look at international offerings at 25 basis points versus an average of 58 basis points, we think we're priced right for the market already in a beta safe space. that said, services as a whole benefits the end ininvestor. >> when you call it smart data, is that going to go on zero? >> probably not zero. will it come very close to zero?
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sure, as you think about capital markets as a whole, it's really that long, slow road to zero when you apply technology, particularly the technology we have today not just from an investment management, but the training that goes into essentially that mix. i don't think we'll get to zero, but i do think we'll continue to see pressure there. >> steve, good to see you again. let's all reconvene in a year, what do you say? >> it's a date, absolutely. >> steve sachs. we've those earnings now. susan has been poring over them. how do they look? >> a miss and sales in china not good. let's start with eps earnings per share. $1.09 per quarter. they were looking for $1.10. the market was looking for 6
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billion, they had 3.4. in china we know they're splitting in two. they will trade as two separate listed companies on november 1st, but as for same-store sales, we saw them come down for a market that was looking for 4.5%. those i spoke to say these are the last earnings going into the split, so it probably won't make that big of a difference, have that much of an impact, so what we're watching for is the analysts meeting next week. >> keeping in mind the context of this stock which has really started to run up into the planned split. greg in his comments said he was pleased with kfc/taco bell in the u.s., and in china they exceeded their expectations as well, although not so much for investors. >> it didn't exceed the street
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for sales, but it's based on exactly whether people think the spinoff in china is going to get a higher valuation or not. they already have an investor in that china business. the stock is actually a little bit off its highs. not terribly much off its highs given it gets wrapped up in that whole stable quality company. >> they do mention this international court ruling during the quarter, claims regarding the south china sea which triggered a series of pro sentiment, and without that, we would have seen a quarter of poor sales growth in china. >> an ansogynous development. tim kaine and mark pence went head to head last night in that first and only vice presidential debate. when we come back, we'll discuss which one had the upper hand and if that could have any impact on who voters vote for as the next president. edward snowden had leaked
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confidential information. and now another employee is being charged with stealing critical data. this new arrest coming up on "closing bell."
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last night's first and only vice presidential debate between tim kaine and mike pence certainly had plenty of fireworks, but will it have any impact on the november election? john harwood joins us with some
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of the highlights and people have been debating that question all day long, john. what do you think? >> well, in the short term, the effect of the debate was to calm republicans who had been seeing donald trump go backwards ever since his first debate with hillary clinton over a week ago, and with the subsequent controversies he fueled after that, so the fact that mike pence came out and gave a solid, reassuring performance was the kind of thing republicans wanted to see. one of the things mike pence did was he didn't really engage with tim kaine on his repeated attacks on the controversial things tim kaine had said about individuals, but he did try to recast in ways more congenial to conservatives some of the statements that donald trump had made on policy issues like russia. take a listen. >> when donald trump and i observe that, as i said, in syria, iran and ukraine that the small and bullying leader of russia has been stronger on the world stage than this
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administration, that's stating painful facts. that's not an endorsement of vladimir putin, that's an indictment of the weak and feckless leadership of hillary clinton and barack obama. >> now, people have been wondering how donald trump was going to react to that debate. first of all, the fact that mike pence did pass up some opportunities to defend donald trump and also the fact that the headlines say today pence won and a week ago they said trump lost. one of donald trump's advisers said pence won overall but lost with trump. however, donald trump was out on the trail today and he was bragging about his running mate. >> mike pence did an incredible job, and i'm getting a lot of credit because that's really my so-called first choice, my first so-called hire, as we would say in las vegas. and i tell you, he's a good one. he was phenomenal. >> it's notable that donald trump said there, i'm getting a lot of credit for the mike pence
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performance, but the bottom line question we started with is this going to fundamentally change the race? i don't think that is the case. hillary clinton has a lead, maybe three, four, five points nationally. she's winning in most of the battleground states, and the really crucial matter will come on sunday night in st. louis when donald trump gets a second chance at hillary clinton. there will be one more on the 19th of october, but he needs to make some head way personally, donald trump does, this weekend, guys. >> it appeared that mike pence was trying to use the same strategy that hillary did in the first debate where you remain unflappable. don't play into the attacks that are coming your way. what do we make, though, of tim kaine and the repeated interruptions and the attacks he was making throughout? obviously by design, but what was he trying to achieve there, do you think? >> what he was trying to do was put in front of a large audience, and we think more than 40 million people watch this, as many of those controversial statements that donald trump has made as possible. try to get tim kaine to defend
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them, or if he was not going to defend them, be able to say i noticed you didn't defend them. he did that, it's just that in doing so, he didn't look all that great. he didn't look comfortable on the attack. i suspect the fact that he continued to jump in made some viewers uncomfortable, but i have got to say that some democratic strategists have said, yes, in the short term, mike pence had a victory last night, but tim kaine's performance is going to wear well as we point up his not defending donald trump and saying things that weren't true. in other words, when tim kaine would say, donald trump said x, mike pence would say, are you kidding me? he wouldn't say that. but in many cases he did. in fact, the clinton campaign has a video out about that today. >> all right. it certainly had more fireworks, i think, than people expected. >> that's right. >> thanks, john. john harwood in washington. time for a news update with sue herrera. >> hi, bill.
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in a statement to the white house rose garden, president obama called the climate change accord an historic day in the fight against climate change. >> today the world meets the moment. and if we follow through on the commitments this paris agreement embodies, history may well judge it as a turning point for our planet. >> over a million people are set to evacuate south carolina in the next few days in preparation for hurricane matthew. more than 300 buses left from greenville heading to charleston to aid in the evacuation efforts along the coast. donald trump touring a christian school in las vegas. he was serenaded by children as he entered the international christian academy before visiting a first grade classroom where he joined the students in a bible pledge. tom brady returning to practice with the new england patriots after serving his four-game suspension stemming from the deflategate scandal. the patriots play the cleveland
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browns on sunday in cleveland. that's the news update this hour. sara and bill, back to you. >> i think the patriots have to be relieved they are 3-1 during his absence. >> and in a really resounding fashion. >> what, they don't need him as much as they thought they did? >> i don't think so. i think they'll be really glad to see him on the gridiron. >> there is a collective sigh of relief in boston that he's back now, that's for sure. jump in any time on that. >> i did. with all my football knowledge and skills. we'll have more on the nsa contractor who has been charged with stealing government secrets and the agencies and what they can do to ensure it doesn't happen again. speaking of cyber security, the ceo of southern company will be joining us to tell us how much of a threat cyber hacking is to our nation's energy
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let's look at how we finished the stocks. the dow up 112 points today, the s&p up almost 10 and the nasdaq up 26 points to 5316. an nsa contractor has been arrested for stealing highly classified computer codes. like edward snowden, he worked for booz allen. eamon javers is here with more information. what can you tell us? >> reporter: the "new york times" was a first with the story for us. here in cambridge, we happen to be surrounded by nsa officials, fbi officials and a lot of folks from the senior department of justice as well. this nsa contractor's name is
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harold thomas martin iii, and he's 351 years old living in a suburb of washington, d.c. he was arrested back in august. he worked at booz allen and hamilton, a contractor in the area. what officials said they found on his person, on his property, six sensitive top-secret documents among those that were recovered. broader material also recovered, but that's what he's charged with right now. officials are also telling us if convicted, martin faces up to 10 years in prison for the theft of government property. as you mentioned, booz allen is also where edward snowden worked, so not a good day for booz allen in terms of the publicity around this. here's what booz allen is saying now. they said when they learned of the arrest of one of its employees by the fbi, we immediately reached out to the
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authorities to offer our total cooperation in their investigation. and we fired the employee. we continue to cooperate fullly with the government on its investigation into this serious matter. there is a lot we don't know about the story, including why mr. martin took this material, brought it back to his house, and what, if anything, he intended to do with it. was martin allegedly in cahoots with an overseas intelligence operation? did he intend to sell it? was this a wikileaks sale? what we know now is that another nsa contractor has been charged with taking these documents and has been arrested. back to you. >> you know what i don't understand, and i think we have a minute here with you. this happened in august. we're talking as if he was just arrested this afternoon and we have to figure out what this is all about. they've been working on this for two months and they still don't know what his intentions were and what he did with the information? >> and was it all secret?
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>> we still don't know. the documents -- talking to officials here, i get a sense that there is more to the story that we are going to learn over the coming days and weeks. i don't know what exactly that more is, but the documents were filed under seal, which means that they were only unsealed today. that's why the story is becoming public today. presumably between the end of august when this arrest was made and today, there have been other developments that are not reflected in these documents that we don't know about. you would assume that u.s. authorities are trying to get this person to cooperate with them, talk to them, share information with them about whoever he was working for, whatever he intended to do, and at this point now, these documents are being made public, he is being charged, and that puts a lot of legal pressure on him to go ahead and cooperate and maybe see what he can do for himself to lower that potential 10-year sentence. >> we'll await more details, especially on that motive, as you say. eamon javers, thank you.
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another key topic at that cyber summit stowed. what's being done to keep the energy threat from happening? numerous warnings on our country's power plants. you operate a number of them, tom. have you been fielding cyber attacks? how much are they threatened? >> oh, sure. hey, bill and sara, great to be with you again. the entire industrial infrastructure, especially for critical infrastructure, is under attack every day relentlessly. we should just accept that. i would argue that the industry has been called out by a variety of reports even to president obama as one of the best prepared in finance. it's not just power plants. i would argue the nation's electric network, our nervous system, if you will, is one of the most important assets that we have to protect. look, you can never say with center that you're safe.
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i would say, however, that we're as well protected as we reasonably can be. and i think one of the most important things we have to do right now is to understand the relationship between likelihood and magnitude and develop a sense of priority. >> well, the electric grid gets a lot of credit for being a wonder of engineering and so forth, one of the great developments of the 20th century. but it's aging now. it's getting old. it needs updating badly. how much of a target and a soft target is it because it is an aging asset? >> yeah, bill, i think that's -- that is a mischaracterization. i think in general, the nation's infrastructure, particularly transmission system, one of our former energy secretaries, not eric moniz, put that out there, that we have an ancient grid
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system. i think he's dead wrong. i think our nation has been blessed with the infrastructure that arguably around the world is the envy of an energy infrastructure. but here's one of the points today that is so interesting with this news from nsa, and that is what's in house. look, we know assets. 87% of the critical assets in america are owned by the private sector. we're doing a darn good job of protecting those. but it's not just whats, it's hows. in this whole notion of insider threats, cyber health, how people behave is really important in linking up a formidable kind of cyber protection regime. >> tom, what's the nature, do you expect, of any threats that might come in? in other words, is it just going to be the equivalent of a denial of service type thing, in other words, just shut the lights off in a certain area, or is it meant to do more damage? >> look, it's way beyond that, and this kind of attack regime
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continues to change, so it's one of these ideas of you know le we gretsky saying you have to skate to the puck, we have to find where this is and try to get ahead of it. it's a very daunting task, but i think we're working very hard and working with government response and an integrated response. when we think about electricity, we need to integrate a response with finance, telecom, transportation, water and others. >> tom, before we let you go, the other threat that's facing the industry right now, and indeed, much of the east coast is hurricane matthew. we're not sure exactly how much of a magnitude and impact it's going to have, but what are you guys do to get ready for that right now? >> sure. i just got off a phone call at 4:00 this afternoon. it's our national threat response activity. we have activated a mutual assistance network that has been
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in place for years, and i talked personally with the ceo of the utility along the east coast there of florida, nextera, and i think we're doing all the right thing. we're marshaling resources, we're positioning those resources before the disaster happens, and then i think we'll be well positioned to take advantage of any damage in the restoration activity in a superb way. i really feel confident about our ability to handle this storm. it's going to be tough, but that's when we're at our best. >> okay, tom, thank you. >> great to be with you. >> tom fanning joining us from cambridge, mass. moving into a lower manhattan neighborhood, but don't expect the typical target experience when it comes to shopping. we'll head live to the store to show you what we mean, next. $750,000. that's how much the highest paid
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the big apple is getting a tiny target. a smaller than normal location is opening downtown in the tribeca area, hoping it will attract the locals, although i think i would want the big box store. courtney reagan is there. how is it different? >> if you want the big one, it's on the east side, so you can go there. but this is one of the flex-format stores, bringing the number to 27. they plan to add 20 more of these, at least, by 2018. so this store is about a third the size of a normal target. at 45,000 square feet covering two floors. the retailer says it's not just downsized but it's customized to fit the urban shoppers frequenting the area, families
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and working professionals. there is apparel, home goods, electronics and even a cvs. there is also a cafe and on-line pickup at the front of the store for quick convenience. in august, you'll remember, target posted the weakest comparable sales in nine quarters and target ceo brian cornell pointed to the ciprofloxac flex-force stores as a driver. on the most recent earnings call, cornell said the productivity on flex-force stores is higher than the company average and they're meeting and exceeding company targets. last year nine of target's new stores is flex-format. it's funny they're building this flex-format as target is closing all 102 flex-format store locations. the difference there is target was traeattracting more of the l
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shoppers and they're hoping to hit the more densely populated areas which probably makes more sense for that target cachet brand. >> i think it's a good idea, the tailored inventory they're putting out there, i think it's a smart idea. >> courtney, are they selling groceries there, because i know brian has made a focus of getting into food but that's been hurting them because of food deflation. >> downstairs is where you'll find grocery aisles and that does, of course, include beer. there is also a decent portion of baby care, even strollers, despite sort of the smaller footprint here making room for that, because there are a lot of families down here with a lot of new housing developments that you all might be familiar with down here. it's been a very busy opening day, that's for sure, and the assortment could continue to get curated as we see what the customers are looking for, what is here and potentially what's
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not if target needs to sort of fix that going forward. but today is just day one. >> does it smell like popcorn? >> there was certainly the popcorn and the pretzels downstairs. we had some beyonce playing. we turned it down so we could hear this report, but it's been a bit of a party here, that's for sure. >> the land of the fancy baby strollers. >> i think it's a good idea there. thank you, courtney, very much. courtney reagan. >> that's why god created suburbs. netflix is working hard to break out of living rooms and onto the big screen. the streaming services signing its first long-term deal with a theater chain. what that could mean, coming up. all the big bank meetings in washington, d.c. all the heavy hitters in finance are there. we'll be speaking with jim yong
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kim, sergio ermotti and chairman alan greenspan. all coverage starts tomorrow, 10:00 a.m. eastern, squawk on the
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variety releasing its list of top paid tv talent. >> we love this stuff. >> netflix actors claimed three of the top five spots in the drama category. and look at that. lauren graham and alexis bledel of the not yet released "gilmore girls," $750,000 an episode, beatinging out peter dinklage from "the game of thrones."
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>> plus, netflix signed this deal with luxury theatre chain i-pic, releasing on the big screen the same day they appear on the streaming service. this has been tried before. it will be interesting to see if people actually go to the theatre to watch. >> a lot of times with niche movies where they want to have it for some purpose or another. the theatre chains don't like this, obviously. they try to preserve that exclusivity. to me, all this stuff kind of speaks to netflix being at least increasingly just another studio and distributor. in other words, they're very much more like an hbo than like some unique animal, which means you have to pay in a similar way or better. >> very good point. and they really need to watch their -- we keep saying, they need to watch their costs, but they just keep going oh up as we see here. >> of course, they said at a conference last week, they're going to work toward having half their programming be originals. so they're going to have that
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high risk-high reward as opposed to bidding on the open market. >> see if they can raise prices on the consumer to help pay for it. our first look at the replacement samsung phone that began to overheat and smoke on a plane. this was the replacement. our dierdre bosa has the update. >> reporter: what we do know is that it was a samsung device that began to pop and smoke on a plane. and that caused the evacuation of the flight in louisville. it was still on the ground. the owner of the phone sending us some pictures at nbc news. showing what he says is a replacement galaxy note 7. that is, of course, the very phone that samsung has recalled, because of serious fire and burn concerns. and hazards. so this is the photo that you're looking at right now. he's told nbc news that it began to smoke out of his pocket and he threw it on the plane. arson investigators have confirmed that it was a samsung
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device. but here's where it becomes a little unclear. and we are waiting for more from samsung on this. but so far, the company is telling us that there is no evidence that this incident is related to the new note 7. so essentially it's saying that it could have been a mold model of the note 7 not replaced by the recall. the company says they're working with the authorities, and southwest. southwest also wouldn't confirm the model to us. we will update you if we hear anything. this is a developing story. guys, i want to mention, if it was, in fact, a replacement phone, a replacement galaxy note 7, samsung's reputation is going to take another big hit. not only is it still dealing with the recall of 1 million of those original samsung galaxy 7 notes, but there has also been reports that its washing machines have been exploding as well. back over to you. >> thank you, dierdre. i can understand the phones having a battery from exploding, but a washing machine?
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i heard those reports too. >> not a battery, clearly. something else. although i also -- an investor took a stake in samsung and basically said break this thing up. not a great day. >> all right. if you're just joining us, young released earnings earlier this hour, the stock trading lower in the after hours session. one taco bell in canada is adding a major item to its menu. where is that going? we'll talk about that after this. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars.
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taco bell itself thinking outside the bun. the fast food chain transforming one of its locations in chan dainto, get this, a one-time airbnb to celebrate the launch of the double dia which is a quesadilla with double the meat, of course. >> of course. in case you're wondering, available for one lucky winner and three friends on october 17th. the company is already accepting entries and will announce the winner on october 11. this is just getting out of hand here. >> you know, the stunts are crazy. you have to think that how do we reach the millennials? what's our core audience? and just going to throw it up against the wall. i don't know if you are calling them a winner if it they get to sleep --
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>> it might be fun for a kids' sleepover. >> second prize is two nights. by the way, in case you missed it, yum brands missed by a penny on the bottom line, down 2% in the after hours. mike and i will be here tomorrow, sara from the imf meetings could not be more excited in washington. >> my favorite place. >> thank you for young us on "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. traders on the desk, pete najari najarian, steve grasso, guy adami. the bond market wreaks havoc on dividend-paying stocks. four names not only surviving, but thriving in this rising rate environment. plus, a surprising group of stocks that were left for dead last year, up more than 100% this year. one of our traders thinks there's more room to run. and oil closing in on 50 bucks a barrel. any traders buying ene

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