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tv   Closing Bell  CNBC  October 31, 2017 3:00pm-5:00pm EDT

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i lost my train of thought. >> tax -- >> tomorrow. and the fed tomorrow it is a big day. it is a cnbc wonk fest we're going to be here all day picking apart that tax bill, number one we will pick apart the fed decision it will be one of the last presumably that janet yellen presides over. >> thanks so much for watching "power lunch." >> "closing bell" starts right now. ♪ and suddenly to my surprise ♪ he did the mash ♪ he did the monster mash ♪ the monster mash ♪ it was a graveyard smash note >> did you do this >> i didn't. but i would have if i was given the choice i love this song you can only play it once a year right? >> i think that's already enough. >> i gather you don't like this song. >> it takes many e back. >> come on, it takes you back? >> i'm dressed up as a ghost, though welcome to "the closing bell." i'm kelly evans at the stock exchange >> i love your costume.
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>> nice orange tie. >> that would make me bill griffeth the end of the month, which z stocks are the big winners and big losers for the month of october. >> what a year it has been for the stock market today the cme looking to launch bitcoin futures before the end of the year. a wall street expert says it reninds hr reminds him of the financial crisis all over again. terry duffy will join us to discuss that on a first on cnbc interview coming up. >> kind of like christmas music, you can only play it that one time right? then tomorrow it's too late. all right. let's get to washington where executives from facebook, twitter, and alphabet are testifying right now before the senate judiciary committee about social media's role in last year's presidential election kayla tausche has the latest on what's going on right there. kayla? >> reporter: bill, you've seen the ceos and chiefs of these companies pushing out prepared testimony on their various platforms but it's the general counsels who are here in washington fielding questions from the senate judiciary
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committee on crime and terrorism about exactly how much they knew about russian influence on their platforms during the 2016 election we're still in the prepared remarks portion of the program right now, you are hearing from the general counsel and head of law enforcement at google, talking about the breadth to which that platform was used during the election. and we'll be learning a little bit more about what they have been doing behind the scenes to kplat this, to try and keep this from happening in the 2018 election season, and what they've been doing with lawmakers to try and shape regulation and try effectively manage this going forward. interestingly, you are seeing the democrats outnumber the republicans at this hearing. two notable members of this subcommittee, senator john cornyn who's the number two republican in the senate, as well as senator ted cruz, are not here today you do see the chair of the overall umbrella senate judiciary committee, chuck grassley is here he made a little bit of a
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belated entrance the democratic side is stacked here so that could mean that there are going to be some tough questions coming for these top attorneys from facebook, google and twitter. guys >> and kayla, that reminds of the big read in the "journal" today about how google's closeness with washington and sternl certainly with the democratic party does not seem to be nearly what it once was. >> reporter: certainly that is the case the tides have changed significantly, kelly when the ranking member of the committee opened the floor, he said in reading the testimony of these three companies, and the facts that they put forward, no serious person could deny the fact that russia influenced the election, and used their products to do that. the fact that lawmakers are talking about this with such serious tones here means they want answers there is regulation on the table. there are various ways that they could go about this and potentially there could be penalties for this company having covered wall street, remembering banks after the financial crisis, multibillion
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dollar fines, growth initiatives, tampered in the face of needs for risk management companies being called too big to manage. doubtful that any of that would go that far or that extreme, but certainly we've seen that attitudes toward these companies can change quickly >> tech is the new wall street as we like to say around here. kale wiyl kayla, thank you very much for n now. as many at 126 million americans may have seen russian propaganda during the election. julia boorstin has more. >> reporter: reached 126 million people is eye popping especially considering that the russian-backed internet research agency spent only $100,000 on ads. sounds like a pretty impressive return on investment but facebook's general counsel, collin stretch, is trying to downplay those numbers raising questions about the impact of ads on the platform. stretch noting that a person in the u.s. his served about 220 stories in their news feed every
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day implying ads could have have been lost in a flood of information. stretch noting that a person in the u.s., a lot of information, in saying that roughly 25% of the ads were never shown to anyone because ad auctions are designed to reach people based on relevance facebook notes it doesn't know exactly how many of those people actually saw the content they only know how many times it appeared on users' screens now despite questions about facebook's ability to calculate precise reach and value of an impression, facebook shares are up about 37% over the past year thanks to advertising growth this russian ad scandal comes as the tv giants are working to pull back ad dollars from facebook and google to television we'll have to see if proposed regulation and self-imposed transparency measures further legitimatie izize facebook's ads particularly in the political sphere or race questions about their impact guys, back over to you. >> yeah, puts them in an odd position -- on the one hand, they always say how effective
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ads are on facebook. now they're saying -- >> not that effective. >> they didn't see that many ads. okay before you go, julia, another story on your beat, netflix now suspending production of "house of cards" season six what can you tell us right now >> reporter: that's right. netfl netflix, of course, counted on "house of cards" as its iconic content and media rights capital which produces the show and licenses it to netflix announcing today they decided to suspend production on season six of "house of cards" until further notice they said this will give them time to review the current situation and address concerns of our cast and crew of course, this comes on the heels of very serious allegations of sexual harassment and sexual assault against the star of "house of cards," kevin spacey guys, worth noting that "house of cards" really was considered the show that put facebook on the map in terms of original content. we learned yesterday season six will be the last season. last season in the whole show.
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so we'll have to see what happens here, maybe they'll rewrite it and cut out the president, kevin spacey. we'll have to see how that shakes out. >> all right julia, thanks. we'll see you later. let's get to our "closing bell" exchange, final one for the month of october great gains for major averages this month michael gibbs from raymond james is with us today cnbc market analyst steve grasso from stuart frankel, and rick santelli checking in from the cme in chicago steve, i mean, we've put september and october to bed almost, and those are the two most difficult months, we are told, traditionally for wall street they've been anything but this year. >> it's true that's what we've been told. never listen to what you've been told, oddly enough, on wall street so the last news cycle has dealt with dooirindictments, dealt wia policy, tax reform and the new fed chair, whoever that would be whether it's he or she the market have sort of absorbed
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this is right around new highs once again. and the path of least resistance remains higher and everyone has said, is tax policy in or out of the market doesn't appear like market participants really care i think they care about things for about five to seven minutes. that's what they'll do with the new fed chair. the new fed chair will be a lot more dovish than people think at this moment. and whether it's the horseman that got you here in the form of the large cap tech companies, or whether it's the smaller cap russell 2000, one way or another, this market seems intent on going higher from here i don't see a lot of resistance other than the fact that people say, hey, how can i buy at historic highs >> well, michael, to that point, you guys think technology still has room to run. the financials, industrials and energy, but tech has had such a monster month, right michael gibbs?
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>> i guess he can't hear us at this point let me go to rick santelli here as we head into -- today was the first day of the two-day fed meeting. is there any relevance to this meeting at all given that nobody expects a rate increase until december's meeting what are you expecting to come out of this thing, rick? >> reporter: well, every fed meeting has some relevance of course, traders will be looking at the statement and deciding if there's anything in there that gives them even more insight into what you referenced and that is the notion that many are expecting a december rate hike nobody is expecting any surprises tomorrow but i still think that it will be important i think that the bank of england thursday will also be extremely important. as part of the world seems to be looking to reverse some of the policy of stimulus, while others like the bank of japan seem dead set to stay on the course. and with respect to what's priced in, what's not priced in in the narcotmarketplace. i'll tell you what with the dow 50 points basically round
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numbers off its all-time high, it just doesn't seem congruent that there's anything built in because of the give and take of the news flow mostly running negatively in many ways involving the administration, dooich indictments, what's in, quhawhas out of tax policy. steve said we have a kevlar type market bitcoin, wasn't very popular at $100 wasn't popular at $1,100 $2,500, started getting a long line over 6,000. opening futures contract there's something about the appreciation of a market, no matter what it is, or how significant its fundamentals are that draw a big crowd and there's no doubt about it, the equity complex not only domestically but globally has a wide following and they seem somewhat impervious to the naysayers. >> michael gibbs, where do you guys see the most opportunity in the market right now >> we still like tech. i don't -- you're in a bull market that's hitting new highs every day, you got to stay with
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the fundamental momentum and technical momentum and it's there. we like financials as well think we had a good earnings season nose stocks are not as extended now. they're more timely than tech if you're putting money to work today. we still like those areas. industrial looks like a good area to be now in the way the economic conditions are, valuations are fine. the stocks weren't too extended there, either. so we see plenty of opportunity, but i think tech is still the clear place that we would like to be for the next 12 months >> so, michael, you go with those stocks that have proven themselves at this point what about the laggards? you don't look at those as maybe playing catch-up at some point as this market progresses presumably >> you know, bill, that's been a tough trade to try to make this market has been so momentum driven i don't know in it's the passing investment, etf momentum, whatever it is trying to reach down and pick up the laggards has not been a winning strategy at this point in time i'm not
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going to fight the tampe the only laggards i'd do, bill, are in the strong sectors that have come down during earnings season to attractive price points and earnings weren't bad. maybe the stocks got hit jauust because the market was nefrvous on them. those the others that are true laggards, i'm not sure i'd come down there in general. >> all right >> by the way, rick, what was that, christopher columbus or were you a pirate what were you? >> aye, matey. >> that does not look like christopher columbus, kelly. >> he's got the hat, i don't know. >> what is that? barney rubble? fred that was some party. >> fred flintstone >> that was some party. >> sure was. >> the chicago bureau. that's crazy thanks, guys see you later. love your costume, too, by the way, grasso. see you later. we're heading to the close here we've got 48 minutes left in the trading session. so the dow's in record territory. the hnasdaq in record territory the s&p and russell are not
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right now. all right. bitcoin, though, hitting a record high after the cme announced it's planning to launch those futures rick just talked about cme group chair and ceo terry duffy will join us in a first on drns kr krns krcnbc interview. if you want to know if the iphone x is worth all the hype and better than the blackberry, we have a x, an 8, and 8 plus all there with todd hazleton we'll give us the review and play with some of the toys coming up here. we always want to hear from you, reach out to the show and share your thoughts with us on twitter, facebook or send us an e-mail you're watching cnbc, first in business worldwide
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welcome back nice rally on wall street today. the russell rebounding from yesterday's decline. the small caps up 1% the dow up 53. above 23,400. >> okay. here it is this is what it looks like so you got facial recognition, you got wireless charging, got updated hardware cameras. that's what the $1,000 iphone x will get you right now >> our digital technology product editor, todd hazleton,
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is the one who has brought this phone over to us he's here to demo it for us as well, todd. >> i am. >> worth every penny >> i think so. i bought one right away. >> this is the demo version. this is not your phone. >> this is a phone from apple we reviewed that's up on the site now. >> you would buy it because you're into the tech -- >> exactly. >> what about the more typical consumer >> i think most typical consumers are better served by the iphone 7, 8, 8 plus. if you want everything apple has, this is the phone to get. >> i go the animoji up here right now. since they're shooting over your shoulder, show them what it does there. so watch the face on the bottom. hold it up a little higher what you're seeing is faces that todd's making to the phone -- >> stick your tongue out >> oh, nothing when i stick my tongue -- it's halloween we should go with something fun. alien maybe. there are no zombies. >> there you are is this why i'm buying this
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thing? >> no. >> for $1,000? >> this is just the fun. you're buying this because it's got the best components apple ever put in the phone, includes a screen from samsung, apple fine tuned it. includes the front-pacing camera everyone is talking about face i.d. which works really well i had some issues in some light. others were having that, too in general even in the dark, with my glasses on, it was picking up my face wireless charging. >> you mentioned, i'm feeling this now, it can run hot. >> yes. >> it's already warm. >> i talked to apple a little bit today, said it's typical when you're setting up the phone, doing the processing in the background that it might get a little hot i noticed it yesterday when i was watching a movie. >> another thing, we were just talking about the wireless air pods the other day what is the issue there? in terms of how well they're able to connect with the phone while you're listening. >> yesterday on my ride home from work, i was noticing -- i was listening to my air pods on there as i normally do and kept dropping bluetooth i wasn't sure quhafs goiwhat wa
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with that. that's something i'll fautalk t apple about. things like that often get patched in a software update. >> unlock that >> here's the iphone 8. >> we got the 8 also. >> which we hear is selling well in china potentially. >> yes, potentially. >> here are the two together here's the 8 and then the x. >> right you're looking at a 4.7 inch screen. >> should i bother with the 8? >> yes i think most people, in fact -- you like blackberry, bill. >> well, that doesn't make me a bad person. >> no, no, no, i know you like the keyboard i would probably for most people go with an 8 >> an 8. >> if you really want everything, and if you're paying, you know, a down payment, you're paying 30 bucks a month versus 40 bucks a month, it's not that much of a difference, go with the x, a better phone, you're going to have it longer i think you'll really like it. the 8 is a great phone a lot of people really like it i actually bought the 8 plus right there that i already own. >> before you go, try the facial recognition. how that works get vinny in there. >> the camera. >> there's no button on the screen to unlock it. >> just unlocked that fast and swipe up that's it. >> try that again. lock it and unlock it again.
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>> i look at it, the lock, unlock then swipe up. that's it. if you try it -- >> wow, that was quick. >> -- it won't unlock. the cool thing is, too, when there's notifications on, they'll appear here but won't say anything when you look at the screen, you can look read the text messages. >> you didn't press any button or do anything, it saw your face and knew. >> right, that's it. >> it rejected me. >> it's pretty neat. >> i saw that. cool stuff >> it's amazing how high the price point is, but even best buy came under some heat for potentially overcharging people or -- >> $100 more. >> they said, look, it was to offer a wider suite of products and ways you can buy these phone. is everyone basically doing the monthly installment plan >> i think so. i think that's the best way to swallow the pill $1,000 or $1,150 on the high end. pay $500, 30 bucks a month throughout the contract, own the phone, that's the best way to do it there's confusion. people used to say, i used to buy the iphone for $100, $200
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and kept it for two years. that was still baked into your carrier, bill, you didn't see it that way you're seeing it differently more like a car lease. >> what's your delivery date >> mine is friday. so, yeah. >> because you're todd hazleton? >> no, i woke up on last friday morning, i woeng up, didnke up,e up at 3:00 in the morning, i woke up for work, ordered the phone. said coming friday. >> did you do full price >> no, the down payment and paid $30 a month. >> i heard people who paid full price had an easier time >> i bet, it's a cash zone. >> thanks, todd. >> thanks for having me. >> take that 40 minutes to go until the close. we're looking at the dow, the s&p, near session highs pretty much right here. up 53 points up five for the s&p and nasdaq in record territory. two big power companies announced a deal today we'll speak with highland capital's mark okada about the partnership and how it could impact utility space. >> he short of saw that one coming. cme announcing now plans to launch bitcoin futures before the end of the year. coming up, we'll be joined by
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cme group chairman terry duffy and it's a first on cnbc interview. we talk about that coming up here on "closing bell. stay tuned like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential. i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant.
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ameriprise
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you know, i take it back, the dow is not in record territory, about 40 points away. you had the 85 point selloff yesterday. >> yeah. >> i wasn't here i hadn't downloaded that we'll see if we can finish the month in record troir toerritory sony soaring today after lifting
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its full year operating income forecast to 630 billion yen, more than $5.5 billion this would be its highest profit ever, by the way it's 26% higher than its prior estimates three months ago electronics company posted a better than expected quarter this morning largely driven by a boost in video games. sony trading right now up 12.25% meanwhile, mondelez still higher today after reporting an earnings beat last night the company saw third-quarter sales rise as americans ate more snacks surprisingly and business improved in the emerging markets that stock is up about 6% right now, kelly >> just out on this halloween day, today vistra and dynegy both up today, a little l less man 4% our next guest said he liked vistra and suggested the two companies would make a good match. >> we think that it's cheap.
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we think the company really has some really neat things going on as far as what's going on in texas, period, and then there's some m&a stuff going on that we think could be really cool stock's got a lot of upside. dynegy is the only one left with vistra and putting them together would be very accretive. >> joining us right now is the magnificent mark okada, kelly has no idea what i just said, co-founder and chief investment officer of highland capital. mark, good to see you, welcome back. >> hey, bill, happy halloween. let me stay happy birthday to my son, leighton. keep going, son. i'm proud of you yeah, we're doing well here. this announcement is one of the things we talked about in this stock in vistra -- >> did you know something? were you doing process of elimination? did you know they were talking >> it -- we didn't know specifically there had been some rumors it makes a whole lot of sense. kurt morgan came out of energy capital partners on the private
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equity side, they had an interest in dynegy when he was there and the synergies from this transaction where worth about $4 billion and, you know, amazingly, right, we thought this would happen we didn't know when. and it just got announced yesterday. but there's some other really cool catalysts here and the great thing is that don't get too confused about price versus valuation. that can fool you or maybe that's your trick here the treat really on halloween is that this stock should be up in the upper 20s easily just based on the dynegy news and really it's down a little bit. >> why is it so -- once we see the shares of both companies popping, you have a sense the industry needed this to happen dynegy has a bunch of debt why is this such an attractive move for vistra to make? >> well, specifically, there's $350 billion of synergies, $5
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million to $6 million of tax shield on a present value basis. you put those together one of the things we think is really interesting sb wh ining happened in texas. the combined company is going to bt largest independent power producer in the country but also the largest in texas texas is growing at a net clip of 350 people a day. versus a lot of other power markets that are shrinking so you've got this growing demand, and but a lot of that demand's been met by very old coal production and with this merger, you got a lot more concentrated in one player, so one of the things we think's going to happen is they're going to start to take that coal power out of the market which will move to tighten up prices and really enhance the cash flow >> now, you're a value player. i mean, to the point where you look for distressed properties where else do you see something? i mean, puerto rico, and the situation there with the -- trying to rebuild their
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infrastructure utility wise and otherwise. is that a play for you >> bill, we're just so happy we're not involved there as far as value is concerned, you have to really kind of understand what the end game is there. i think it's a very difficult situation to handicap as far as where that recovery is going to happen but, you know, back to this vistra situation, i think it's very easy to see some more levers pulled in this business i think if they just trade back to the multiples that the industry should be at, they get this merger done this stock could double from here >> mark, just curious on what you said there about puerto rico you said the recovery, period, could be difficult to happen >> well, look, it's a country that was having issues before this they're having population drain, they've got a lot of debt. they have a lot of inefficiencies in their economy to begin with.
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and now, unfirefigortunately, y them with this natural disaster and so there's just a lot of things that have to happen there from here to get some comfort. so we looked at it early on, and avoided it we went into argentina instead and made a lot of money there, but and we're still not involved in puerto rico just because it's too hard to figure out where it's going from here >> any other areas, venezuela, there's another place that's a mess right now >> well, i -- again, some of these situations are going to be very binary, so we do -- we do kind of like argentina a lot we like what's happening there we've seen a lot of run in those stocks and in that bond market. i think when we think about the whole picture going forward, a lot of these story plays, back to the vistra example, the
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reason why we like these plays is you have catalysts underneath as opposed to trying to handicap this market we've been dealing with that's very overvalued everywhere it's nice to be able to invest in a situation where you can see the growth in the earnings potential for the company, you can see them pull some levers to get their multiples up this company's going to have $5 billion to $7 billion of free cash flow over the next five years to buy back stock, to pay off debt tlrps ju there's a lot of ways to win again, i'm trying to be schiimp here about one idea. i'd rather do things like that than try to make a bet on what's going to happen politically with venezuela and maybe politically within this country. >> all right mark, always good to see you happy birthday to your son as well thanks for joining us. >> thanks, bill. all right. >> mark okada. i think he likes vistra. >> i think so, too tonight on "mad money" jim cramer is going to speak to the ceo of vistra energy stay tuned at 6:00 p.m. eastern time. on the meantime, on the half hour time for a cnbc update with sue herera
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>> hello, bill, hello, kelly, hi, everybody. here's what's happening at this hour the fallout continues from the first indictments in the russia investigation handed up by special counsel robert mueller members of the senate intelligence committee reacting as they arrived at their offices this morning both democrats and republicans agree that mueller should not be fired. >> i do believe that the special counsel is a strongly supported as i have ever seen in my time in the congress. and in the senate. and that it would be a big mistake to tamper with that. police say they have just arrested the man sought in a fatal carjacking near the university of utah last night. 24-year-old austin butain is the main suspect in the killing of a 23-year-old university of utah student from china and the cincinnati zoo is in mourning over the death of 36-year-old henry the hippo. he is the father of the famous baby hippo, fiona.
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he had been struggling for months with health issues and the decision was made to euthanize henry after it was determined that his quality of life would not improve but we still have fiona which is great news that's the news update this hour i will send it back downtown to you guys >> thanks, sue. >> thank you very much. >> see you next hour. shares of underarmour getting crushed today after its earnings report this morning let's get over to courtney reagan for more. it's down 22% now, courtney, this thing keeps dropping. >> reporter: yeah, huge. kelly, slumping north american sales, those were down 12% that's really under armour's biggest a kakichilles' heel. main impetus earnings also expected to be lower than previously forecasted the ceo kevin plank says store closings, competition, shifting tastes are the reason for weak north american sales it's clear adidas' strength in north america is hurting under armour and nike. what's worse, plank and analysts
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see current pressures continuing this isn't over yet. wholesale revenue for under armour fell 13%. direct to consumer sales did rise 15% direct to consumer is half the size of the wholesale business many wonder if the underperformance makes it a takeover target. it could be hard because kevin plank does hold the majority voting power through the separate class of shares we do know about 25% of or more of the shares are held short at this point kelly? >> is this just a matter of changing consumer tastes i mean, adidas has come out of nowhere and taken all this market share or is something else going on? >> reporter: you know, i think there's a number of things that play adidas is definitely a very big reason for this. kevin plank points to a number of store closings when we talk art wholesale. under armour sells goods to r retailers then they sell to consumers. for there are fewer of the outlets, that may hurt sales under armour moved into lot of categories, whether it's golf, whether it's shoes, whether it's
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women's. not all of those have really taken off like they had hoped. at the same sometime that adidas is coming in and really stealing a lot of thunder so there's a lot going on here i think there's still a lot for under armour to figure out. >> negative feedback, two, dick's down 3% today courtney, thank you. 25 minutes to go dow is up about 36 right now moderated a liste edlittle. the russell is up 15. shares of milan are falling today. we'll tell you what about behind this drop coming up. up next, though, we're going to talk to the he head of the c group about bitcoin's recent surge and now plans to launch bitcoin futures at the exchange in chicago by the end of the year terry duffy will be here on a first cc teiewh w come back.ene hey, you every talk to anybody about your money? yeah, i got some financial guidance a while ago.
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how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you.
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bitcoin, in case you hadn't heard, hit another record today on news this time at the cme group is going to be launching bitcoin futures by the end of the year pending approval from u.s. regulators
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the price of bitcoin has soared a whopping 550% so far this year >> above 6,300 today a first on cnbc interview, we're joined by cme group chair ceo terry duffy. mr. duffy, welcome back. >> thanks, kelly, appreciate it. >> we noted this is pend approval by regulators how likely is it do you think this thing gets passed >> i do believe it will get passed we have a self-certification process. we'll go through a full application process which we'll dual track both of them. i'm very confident our self-certification will get through. you know, we've been working with the regulator they understand our application. and they understand our model very, very well. so i'm confident that this will get passed >> and i'm confident you know how controversial this can be. jamie dimon has called it a fraud, you know, larry fink said this is an index to money laundering warren buffett said he wouldn't touch this with a ten-foot pole. prince awaleed said last week on
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cnbc, he thinks it's like enron. why are you doing this >> well, bill, nose are all interesting comments and what i think those people are referring to is the way bitcoin is being transacted today. but when you look at what cme brings to the equation on our platform, such as the margin processes we have in place, the risk models we have in place, the distribution of our systems and the different logic that we have built into those only systems to make certain that the credibility of this product can be traded appropriately, is a lot different than i think that what some of the comments that have been made in reference that you -- that warren buffett and other people have said so, yes, we're well aware of what people have talked about on the dark web, what it's being used for, but you can't ignore the fact that this is becoming more and more of a story that
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won't go away by mainstream companies that want access to this product we're getting a huge pent-up demand from clients not just on the speck lide, kelly, but the commercial side as well. people are looking for efficient ways to do commerce. whether this is the right way or not, i'm not quite sure. i know one thing for sure, we're going to list the product under our rules. if it doesn't work, we have the ability to eliminate it. we're not going to be part of what some of the people that talked about this product was being used for that's not what we're going down. >> how, terry, i read this would make reference to the bitcoin reference rate how would these futures actually work >> so it's no different than any other cash settle index, kelly, we have today, so you can look at even our s&p 500 is a great example. so that's a cash settle product by s&p this will be an index calculated by multiple different exchanges and then that will be a reference rate price that we'll use to settle out the product. what i think is also important on this product, look what the country of japan did a couple
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weeks ago where they allowed, approved 11 different exchanges to provide reference point pricing for bitcoin so there's other countries around the world that are going down this path, so i understand the comment ps that have been made earlier. i think the credibility of what we lend to this is a lot different than those comments. i can't stress that enough. >> i was going to ask you what you think you trading futures based on this bitcoin reference price, what will that do to all those exchanges that are trading bitcoin? what will the -- how will the pricing mechanism change, do you think? >> well, i think, first of all, those are all cash exchanges, bill, they're not futures exchanges. so we'll be -- >> i understand. >> we'll be the first futures exchange and they don't have the same infrastructure that cme has in place. i think what you're looking at is those different exchanges that have been approved whether in japan or the ones we're using here in the u.s. to price our index will only tighten up the market we'll have more participation, hopefully take some of the volatility out of the product, and let people goahead and participate if they wish
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>> is this a bubble, that's formed for this cryptocurrency >> bill, i have never in my 37 years predicted a bubble or not because that's not my job. my job is to manage risk and whether crude oil at $137 was a bubble, then it went to $26, that doesn't matter to us, what we're here to do, the valuation of bitcoin has nothing to do with the decision of cme group to list this product we are here to manage the risk of it, not to decide what the valuation of any product is. >> terry, we always appreciate your time. thank you. keep us posted. >> thank you, bill thanks, kelly. >> thank you very much terry duffy from the cme group. up next, the driverless car race is on we're going behind the scenes at waymos' research facility for the very latest. we'll watch phil give it a try. >> yes, me lived to tell about it did your senator or congressman get elected
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by talking tough on the national debt? will they stay true to their words? or did they promise you one thing-only to do another? right now, congress is talking about tax cuts that will add trillions to our national debt and hurt our economy. it's time to tell congress-don't borrow more money from china. and leave more debt to our kids. keep your word. tax cuts shouldn't add to the national debt. parts a and b and want more coverage, guess what? you could apply for a medicare supplement insurance plan whenever you want. no enrollment window. no waiting to apply. that means now may be a great time to shop for an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. medicare doesn't cover everything.
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waymo is pulling back the curtain on its self-driving car projects our phil lebeau went behind the scenes but not behind the wheel at the company's research and development center near san francisco. and he joins us now with more. phil, how was it
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>> reporter: bill, the main question i get today, first of all, there was nobody behind the wheel when we were in the van. i main question i get today, what's it like, how soon will we actually see these out on the road, not just as test vehicle well, when we had a chance to get inside the modified chrysler pacifica minivan, and there's no driver in there, there are 100 of these that waymo is testing right now, it felt fairly comfortable. a little odd not seeing somebody behind the steering wheel. john, the ceo of waymo says, look, they're getting close to putting these out for public use. wouldn't give a timeframe. they believe they have got the passenger experience down. there are screens in the back seat so you see where the vehicle is going, you see what pedestrians or people on bikes are near you you have a sense of what the vehicle sees and also, you have the opportunity if you wanted to pull over, or if you want to reach out to waymo technical support, press a button and they're right there. for waymo, the importance here is this is eight years of testing, developing, they've had
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four different types of vehicles that they've been working on they amassed 3.5 million miles testing these on public roads. they're in 20 u.s. cities doing these rides and have a pilot program for ride share down in the phoenix area that allows people preselected to go in these self-driving vans. so where does waymo go from here, how does it monetize or make money off of self-driving vehicles four possibilities ride share firms, trucking and logistic logistics, public ride services. maybe somebody who's a shut-in who wants to work with the city's municipal public ride program. also private car use take a look at shares of waymo, i have to be honest with you, i've had a chance to drive a number of these. i should say, ride in a number of these self-driving vehicles this technology, by far, in my opinion, is the most advanced and also the passenger experience, they've worked on that that's clear it's much more comfortable it's less of a science project, which is sometimes the case when
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i've been in some of these vehicles that other firms have been working on in the past. guys, we're on the cusp of seeing more and more of this not just from waymo but other automakers and tech firms. they're really advancing this idea of self-driving vehicles. >> we have so many questions, but we have breaking news we need to get to as well phil, thanks >> reporter: you bet. >> keep us posted on how this works. see you later. >> good stuff. shares of milan falling today. we will have details on this drop when we come right back let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.
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all right. we have breaking news on an incident in lower manhattan a few blocks from where we are at the new york stock exchange. stv z sue herera, what do you have >> nbc news is reporting, bill and kelly, multiple people are dead and several others injured following the incident in lower manhattan. what we believe happened was a truck drove down the west side highway bike lane and hit multiple people. we're still trying to confirm that with the new york police department but we do know, according to nbc news citing multiple sources that multiple people are dead. several others are injured
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we do not know the extent of those injuries that is a picture of -- that was a still photo, but that is the live shot from "associated press" television network, aptn, of that area, which is right around chamber street. they have thosed down parts of the west side highway. at least going southbound. there was some speculation they are also going to close the northbound lanes that is a live shot of the particular area of lower manhattan. not far from the world trade center memorial. right around the corner from the stock exchange multiple people dead according to nbc news, citing multiple sources. several others injured we do not know the extent of their injuries some of the pictures, though, that we veen seen have shown numbers of people on the ground. so we're going to keep monitoring this. there were reports earlier of shots fired and that's what tart started this breaking news
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coverage of this we do not know the nature of those shots, whether it is k connected to this particular incident or whether it is a separate incident or whether it was police responding to the truck moving down the west side highway bike lanes the result has been according to nbc news, multiple fatalities. so we're going to continue to monitor this situation we will bring you up to date as events warrant i'll send it back to you, bill and kelly. >> i'll just point out, it's a couple blocks away from goldman's headquarters here in the city and we're about an hour away from rush hour so this is a major artery of everybody. >> yes. >> in this area. trying to, of course, get out and get home and it sounds like there's been major street closures as they try, you know, up the fdr, they try to get people to the hospitals and of course on the west side highway where it sounds like this took place. >> not good. >> took place in the lower manhattan area they're in the process of, they say, of closing some of the other arteries in that particular area. partly as a precaution
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they want to make sure that -- they have one suspect they believe in custody they want to make sure there is no other suspects out there so they are closing various arteries and parts of lower manhattan in order to be able to make sure that they have everyone in custody that they need to get into custody back to you guys. >> all right, sue, thank you keep us posted there. >> you got it. we'll come back. the dow is up just 20 points right now. we'll have the "closing countdown" in just a moment. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
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heading to the last two minutes of trading on halloween. last day of the month. another month, another millennial level taken out for the dow jones industrial average. the fourth one for this year alone. just an incredible gain. the dow won't be a record. i think nasdaq's got a record, but the s&p and the dow after yesterday's selloff, we're not seeing records today best performing stock on the s&p this month, alliant technology it's in the s&p. it is a company involved in technology in the dental industry somebody has to do it. celgene was the worst performing stock in the month of october among the s&p 500 stocks by the way, both of these companies earnings related that's why both did what they did in the last week or so, in the last month the ten-year yield roughly a 20 basis point range for the month.
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227 on the low side. 245 on the high side hit last week. bumped up against that number. now it's coming back again we're still stuck in this range. the dollar index, the trend has been lower for this year, but not this month up for the month here and we're back to levels we last saw in july wti crude spent the whole month virtually above $50 a barrel and we're going out on the highs of the month. it's the high for the year it's almost a two-year high right now, bob pisani. >> that's what's moving a lot of these energy stocks. exxon had a good earnings report, bp had a good earnings report as well want to point out we're up 2.2% on the month in the s&p 500. bill, technology stocks, almost all the gains, five companies account for 50% of the s&p 500 amazon, google, apple, microsoft, facebook. the so-called faang names, whatever you want to call them take them out, the s&p is up about 1% that's a market cap rated index. the big five
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all the stocks start moving up dramatically, they move the indexes, whether the rest of the index is moving or not. >> thanks, baob we go out finishing another strong month can we do it again in november we'll talk about that. the tax plan to bun veiled tomorrow the fed meeting. the new fed chair. a lot to get to in the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kelly. thank you, bill. welcome to "the closing bell," everybody, i'm kelly evans we're wrapping up the month of october with the nasdaq closing at an all-time high today. not the case for the other major averages which did see gains the dow going out 28 points higher at 23,376 the s&p 500 gaining just 2 1/2 points to 25,075 the russell 2000 rebounding from yesterday's big drop the small caps up to 1,503 nasdaq soaring half a percent
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today, 6,727 is the new closing level as we close out the month of october. tonight is also game six of the world series the houston astros are up by one against the l.a. dodgers as they head back to california. we're going to speak live with dodgers stadium team president stan kasten about what a win would mean for the team who's gone from bankrupt to spending billions but first, it's today's rapid recap. get you up to speet on td on the biggest sbr bigge biggest interviews and stories from the day on cnbc. >> under armour tumbling in the premarket. pro issues full-year guidance well below forecast. >> i think this company lost its way. the industry is much tougher underarmour could bring down the whole group for heavens sake. >> shares of mondelez climbing 6% this morning after posting higher than expected earnings last night. >> we invested in towour brands our routes to market it's starting to pay dividends. >> we have companies that the really want to move back into the united states now because of
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regulation, because of what we're doing with taxes and some big ones are going to be announced very soon. >> shares of mylan down big this hour on news there's a major expansion of the investigation into alleged collusion and price fixing among many big drug and generic companies. >> media rights capital and netflix making an announcement about "house of cards" saying they decided to suspend production on "house of cards" season six until further notice. >> top executives from facebook, twitter and google with set to testify about potential meddling by foreign governments. >> witnesses are seated. the three general counsels from the three companies. their testimony is now public. >> why are you doing this? >> you can't ignore the fact that this is becoming more and more of a story that won't go away by mainstream companies that want to have access to this product. we're getting a huge pent-up demand now breaking news on an incident in lower manhattan. sue herera has the latest for us sue? >> indeed, kelly we're just learning some more
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details from wnbc as well as tom winter at nbc news investigations multiple people have been reported killed because of this incident in lower manhattan. right around chamber street. it's a couple blocks north of the world trade center memorial. here's what reportedly happened. a suspect holding what was either a b.b. gun or a paintball gun fired into a crowd of pedestrians on the west side highway and then at that point, the suspect sped away down the bike lane in a truck, struck at least five people, maybe more. the police returned fire they believe they have the suspect in custody he was apprehended a short distance later by police they say there is no longer an active threat in lower manhattan. major bill de blasio is on his way to lower manhattan he has been briefed on the situation. but as you can see from that
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live picture, we have a scene that is basically filled with police cars, ambulances and the like because this truck sped down what is a pedestrian and a bike walkway on the west side highway, which incidentally has been closed from 20th street down this occurred right around chamber street, which as i mentioned is about a block north or two of the world trade center a b.b. gun or a paintball gun, they don't know which. there was some firing out of this truck the driver then sped away and the police returned fire and apprehended the suspect. that's what we know. no longer an active ongoing threat, but certainly still a developing story, kelly. i'll send it back to you >> any sense, sue, about whether this was premeditated or spontaneous? >> they are not commenting on that at all. they are not commenting on whether it is a terrorist incident and i find it interesting they
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have made no comment as to that at this point, but it just literally happened about a half an hour ago. so we do have multiple deaths. we do have a suspect in custody. we don't know the motive we don't know whether it was premedita premeditated obviously, some part of it was, because the person who was in custody fired out of the truck at people on the bike walkway. but the police have not said anything along those lines yet, kelly. i'll keep you posted >> sue, thank you very much. we'll continue to monitor that situation with our sue herera. meantime, we'll check on these markets. we just closed and the nasdaq did close at record highs today. with me, cnbc senior markets commentator michael santoli. along with paul, co-founder of bespoke investment group and ann, senior portfolio manager at wells fargo asset management by the way, today's market closes out the month of october. the dow and s&p are ending the month with their best monthly gains since february the nasdaq hit an intraday and
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closing high earlier today month's biggest dow winner was actually intel, up 20% the biggest dow loser was general electric down 17% this month. over in the s&p, october's biggest winner was align tech, up 29% the biggest loser was celgene, bad week last week, down 31% this month michael, what do you make of it? >> you know, the market continues to kind of scan the horizon for something to get too worried about and doesn't find much on anything not only was october strong, the whole august to october period supposed to be very rough. kind of skated through there unscathed. so it seems that the main concern now is how far the market has come, whether sentiment has gotten a little bit aggressive, what the fundamentals can do for a next act. right now, market seem like it's pretty well supported. >> paul, what are you saying >> i think the bearish arguments out there were bearish arguments two months ago, since months ago and beginning of the year. look where that's gotten you following those arguments. bottom line, we're in a bull market, company is accelerating. earnings have have been
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accelerating the internals are holding up as long as those factors stay into place, it's hard to go against the grain and get negative -- overly negative on the market, plus we're getting into seasonally the strongest time of year when you're up over 10% after positive september and october which is usually weak, market sees above average returns toing of those strong fundamentals, ann, the consumer confidence number this morning was great, pa 17-year high best since 2000. the home builders are one of the best performers of late, too the evidence on the economy looks strong, right? >> low interest rates. the job growth has been good all of that has played well into the consumer obviously, stock market that has done well has also helped, i'm sure and i agree with, you know, paul and mike, the bear arguments to get this stock market to go lower just have not worked, but i would say as an invest or, th risks are a little bit higher.
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it's not a cheap market. we have to be careful. i'm not bearish, but it is more difficult to find stocks trading at a discount in this market so we want to be more selective >> what would you say about valuation real quickly, paul >> yeah, so, i mean, to ann's point, valuations are rich and, you know, they've been expensive and as we go higher, the risks arehigher. it's hard not to be worried. you talk to everybody, everybody is worried about valuations. i mean, rightly so at that point, the market doesn't tend to, you know, aseed to everybody when they're looking for it and the consumer confidence numbers today were very strong and we're seeing the wealth effect in there because it was only -- big gains were in older americans and higher income americans. millennials, confidence among millennials has been down four of the last five months. >> michael, you actually pointed that up, too. >> i picked up that chart from paul's folks there you know, which is interesting because throughout the prior four years, it was very stark that older americans were just not buying the fact the economy
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was improving. they were in a bad mood. it seems very political at this point because with the turn of the administration, there you go, there's the chart. >> this shows the -- >> seems to have reversed. >> the confidence of the under 35 set, soaring relative to the older set basically throughout the obama administration, and now that's dropped substantially. >> it peaked right at the election and has been, you know, lower -- younger americans' confidence has been declining. it just -- it reinforces the point, too, we've seen trump's approval ratings hit the lows of his presidency and the market's been going higher it's just to remind investors, do not mix politics with investing, because during obama, there were so many people who were anti-obama, and sat out a bull market, and another group of people is doing the same time this time around. >> ann, there's also the house republicans expected to release the tax bill tomorrow. lot of drama about what's going to be in that. speaking of mixing politics be t with the market, what do you think the impact of the announcement is going to be? >> i think this one is going to be important because this decision whether or not we can get tax tree foreform will havea
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direct impact on gdp growth going forward. i ithink this will be the singl most important thing if we get a decision to impact the market going forward. there is a lot of upside if we get tax reform because i think the accelerated growth that we have been seeing can be sustainable with that so we're waiting to see what the dynamics look like tomorrow when the bill comes out. we'll probably try to look underneath the covers and look at more of the detail, not just whether it's 25%, or 20%, but what the details are underneath. >> the devil's in the details. >> also worth noting that there's some talk that the bill might not be ready for tomorrow. >> interesting. >> reuters saying not clear necessarily that all the issues will be ironed out. >> all right let's talk about some of the biggest movers in the market today. under armour the biggest decliner, closed lower there it's down nearly 24% on the bell that's after cutting its guidance for the year. also reported its first year over year drop of revenue in the third quarter amid competition
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from nike and adidas and $85 million in charges for restructuring. ann, what would you do with under armour and retail? >> it's a tough space. the athleisure market has been an jair of growarea of growth f time we're starting to see the growth slow adead das h de adidas came in as a strong competitor it's challenging in addition to that, under armour suffering from internal issues so i haven't done enough work to say whether or not under armour is a good buy here joefl, thoug overall, though, it's tough for me to get excited out. >> completely coming down back to earth. >> massive amounts of brand premium being taken out of the stock. never a cheap stock. always quite expensive relative to anything in the space because it had top-line momentum, the brand seemed to be able to take over category after
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category, taking footwear by storm, now that's working in reverse. >> it's down 75% over the last -- >> he's tre's the thing, down 7% the last two years only brings it back to where it was 4 1/2 years ago. in other words, could get cut in half and be below the 2011 lows. still, the earnings estimates are coming down. it's very difficult. i was pointing out earlier it looks a lot like chipotle, real kind of cult brand, cult of personality behind the founder that got built up, had sale momentum then it's come crashing down. >> anything you'd add, paul? >> there's competition on the high end and competition on the low end. go to costco and buy an athleisure shirt for under $10 why are you going to pay so much for an under armour shirt when you can get it cheaper incomes haven't been rising. people are cutting costs and cutting expenses. >> listen, i picked up a lot of great cheap danskin merchandise at walmart, i was shocked when they announced they were dropping the line the other day. maybe it has truly reached a saturation point.
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>> steph curry doesn't keep you in under armour all the time >> you'd think but not quite that was one of the biggest decliners today. how about intel with a 20% gain, best performer for the dow this month. >> kind of a catch-up move, relative to the semiconductor stocks made a lot of sense. it's interesting because you've seen a lot of low expectation stocks, show a good quarter and all of a sudden investors flock in that's what happened with intel. >> let's see how electronic arts did with its latest quarter. aditi roy has that. >> reporter: the shares slipping almost 3.5%. revenue comes in it line with expectations at $1.18 billion. the eps, the company is reporting a gap loss of 7 cents a share. here's the complicating factor it's too hard to know how that compares to estimates which were in a non-gap formate basically not an apples to apples comparison. the full-year guidance coming in a little birth light at $1.15 billion versus $5.2 billion. not sure whether that's the
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factor, though, that is driving shares down. down 3% right now. another really important factor, metric, that analysts are looking at are digital downloads. digital net revenue. that number is $689 million. that is a key metric because more and more people are getting their downloads or getting their games by digital downloads and that's helping the company with its gross margins because they're not spending as much on packaging. it's, again, a key metric. on the call, we'll look to get any color on their product pipeline, especially their recent announcement that there they' will be an indefinite delay of a "star wars" game shares down 2% >> aditi, thank you. it's interesting, paul, you have sony doing so well, nintendo, the console side of it looks strong with those results and yet electronic arts not impressing here. >> the stock's done well i think getting back to what ann was saying before, stocks go higher, so do expectations and what we've seen this earnings season, if you don't live up to the expectations, you're going to have a rough day.
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i think that's maybe what you seeing here. too early to see all the results. you have to meet these high expectations companies that do are being rewarded companies that don't are being hurt and sold even more so >> i would say an educated guess an what might be hitting the stock, lukewarm guidance the december quarter is more than half of the year's earnings for this company anything that sounds like they're not necessarily 100% confident about how the quarter is going to go might be hitting it. >> all right ann, before we let you go, i don't know if it's electronics arts what's your best investment as we head into the next couple months of the year here? >> i like reliant steel. trading at a below market multiple 13 times next year pays a dividend. this company is an acquirer of other businesses they're a producer and distributor of steel and they -- and other metals, actually, for businesses and they've done a remarkable job managing cost in their own businesses, as well as acquiring really good businesses
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and so that and the end markets remain really strong if you look at industrial -- >> yeah. >> -- yeah, everything in the industrial space has been strong so it's been great for their business i like that it's off the radar screen i think of a lot of investors. i would look at that one. >> you're putting it back on ann, paul, thank you both for joining us. >> thank you. >> thanks. well, it may be the biggest divorce to hit silicon valley. shares of qualcomm dropping today after reports that apple's designing products for next year that will not include qualcomm components qualcomm down nearly 7%. what that means for both companies is next. and facebook, twitter and google all heading up capitol hill today to discuss foreign influence campaigns during the election last year will the tech giants leave d.c. with damaging new regulations following them we'll ask someeglavend chxpts ahead a last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques.
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remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise
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pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. welcome back we're getting more details on the incident in lower manhattan. let's send it back to sue herera. >> kelly, wnbc, the nbc affiliate in new york city is reporting six people are now dead and several more are injured in this incident in lower manhattan. here what question believe happened a person in a truck sped down
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the west side highway bike lanes where there are always pedestrians and bikers and a ton of people at almost any time during the day he reportedly leaned out of the window and started firing, a b.b. gun or some sort of a paintgun and came out of the truck, according to "associated press," which was when police shot him wnbc is reporting that the driver is still alive, but that the nypd did shoot him this took place right now about an hour ago. it's a very busy part of manhattan. it's about two blocks north of the world trade center memorial. and it is busy at every time of the day. we do not know whether this was a deliberate act, but sources say to the "associated press" it appears it is deliberate as you look at those live pictures of lower manhattan. not only is this a very crowded space at almost any time of the
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day, there are several schools in that area they were all put on lockdown. they remain on lockdown. the west side highway is closed from 20th street in both directions, down multiple streets that feed into the west side highway, those artery streets, are also closed. so that they can get the injured to local hospitals but we now have wnbc reporting six dead, multiple injuries. some of them serious if you look at the shot that we had -- that we snowed you earlier of the truck, it is a home depot truck we have reached out to home depot, and they have said that they are going to cooperate with authorities on any investigation involving this particular incident the front of the truck, we were all observing here on the news desk, looks heavily damaged. now, there are barriers on some of those bike paths in lower manhattan. part of the area where this truck reportedly went down the bike path also has rock walls on the side which could account for
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the extensive damage if that driver hit that particular wall because the front of that truck is severely damaged. six people have lost their life. multiple people are injured. the governor has been briefed. the mayor is on his way. he has been briefed. he should be in lower manhattan momentarily. we expect a briefing from authorities in just about 15, 20 minutes. at least that's the best-guessed estimate from nbc news and we will keep you posted on any further updates on the fatalities or the injuries, but it's a very unfortunate incident to say the least in lower ma eer manhattan. kelly, back to you. >> you know, sue, this is a path that feels very safe i've ridden my bike on it multiple times down to work. there's a huge kiosk the school you mentioned there's a big recess field a turf area that's always filled with kids. backs right up to that path. as you can see in this image, there's so much on either side this bike path feels like the safest place to ride in manhattan where it's filled with bike lanes but those all, of
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course, are basically with traffic. this always seemed like a completely different situation it's shocking to see that someone could get access for that much of it to do that much damage. >> absolutely, but remember, we thought the same thing in the times square incident where the streets were closed and there was no -- no vehicle traffic and, yet, that driver who was under the influence in that particular incident did manage to do that and mow down a number of pedestrians in what is a no-vehicle area. so it -- you know, to your point, you probably are not the last thing you're thinking of when you're in a bike path and pedestrian path is jour goiyou'g to see a car come down that area people were very much taken unaware. according to nbc news, now, kelly, i'm reading this latest, the act does appear intentional per nbc news so it was a deliberate attempt, according to the sources, that we have been able to contact back to you. >> all right sue, thank you
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please keep us posted. sue herera. >> absolutely. >> with the latest on what just happened a couple blocks away from here in new york city an hour ago. we'll take a quick break. when we come back, talk a little bit about the latest in washington thanksgiving, the deadline president trump issued today to congress to sign a bill for his tax cut plan still some aspects need to resolve like the estate tax which the president said will go away gop lawmakers have some other ssle aand next, we will lookt poib alternatives floating around capitol hill. stay with us
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welcome back qualcomm down nearly 7% today on reports that apple is dropping the chip maker's kpoechbt compn favor of intel's chips what does it mean for qualcomm's bottom line if it loses the big apple business welcome to you both. i see you saying this could be a huge day for qualcomm, a billion and a half in lost revenue how are they going to respond to this >> yeah, it's a big deal i'm not sure, you know, historically, apple or any other cell phone manufacturer could only use qualcomm if they were selling a phone in a cdma network like verizon but it looks like apple has come out with a workaround that probably involves using intel's technology. >> we know these kpecompanies he been back and forth with each other over patent battles. is this what qualcomm expected,
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that apple could go this route has its bluff been called? >> i think they've definitely seen the writing on the wall the last iteration, the iphone was dual sourcing with some qualcomm chips, some intel chips. i'm certainly under the impression that qualcomm is aware of this, maybe it happened a little sooner than management was expecting. at this point when we think about what qualcomm's strategy is going forward, needs to pivot away from smartphones and see it as having kind of the most advanced offerings in the space. just that apple doesn't see it as being completely, you know, that important when considering being able to use an alternative which in this case looks like it will be intel. >> you mentioned that, you know, historically, if you were in the cdna network, you pretty much had to use qualcomm. if apple is just kind of figured out a way to do this with intel does it mean they're moving away from qualcomm's strength and it's a wasting franchise for qualcomm at this point
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>> i won't say it's a wasting franchise. the modem used to be the bottleneck in cell phone performance, and that i think is becoming less so i think that intel has made some significant strides over the last couple of years to improve their modem technology look, the relationship with apple and qualcomm is very complicated. they've got a lawsuit going on related to patents that qualcomm has, and so it, you know, apple seems very motivated to go to intel. >> that's for sure and how big is this business for qualcomm >> so, you know, by our estimates, it is about 15% to 20% of chip revenue. but that being said, going forward, we expect there to be less and less over time as qualcomm starts leveraging its technologies in new areas, whether that's automotive, whether that's data center, some of these newer adjacent markets. longer term with the pending semiconductor am decision, th ot
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will be an area for qualcomm to start taking cell phones and start leveraging it. >> question had use today they're going to be working with ford on connected car tests. how lucrative will that chip market be? can it, in terms of the profit marg margins, for example, in terms of the size of the revenue, can it offset and maybe even more than offset the potential loss to apple here? >> longer term, absolutely, but we're still in the early innings. so when we think about this arrangement with ford, and some of the other arrangements that have been announced, this vais really developing some sort of connectivity that can be pref lea le prevalent when you have self-driving cars. you think about a car being able to connect to other cars, infrastructure, traffic lights, things like that, it's very, very important to have reliable connectivi connectivity as we move to 5g, we think qualcomm will still have the lead and be able to take advantage. >> how does this affect your rating on the stock? >> i just, you know, when i saw
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this news, my first thought was, you know, when it rains, it pours. you have this issue with apple and licensing. they're trying to acquire nxpi, but it looks like that deal has been pushed into 2018. and now you have this issue with apple trying to move modem business away from qualcomm. i think the automotive stuff is interesting, but no way will it offset the share loss of apple with apple, they stand to lose over 100 million units the entire car industry is less than that. so i think that what you're looking at with qualcomm is negative revenue, and steeper eps declines for at least the next year. >> all right we'll see what happens from here thank you, both. house speaker paul ryan meeting with president trump on the hill earlier today to talk tax reform as the president said he wants it done by thanksgiving. ylan mui has the latest. >> reporter: kelly, two sources who have have been briefed on the republican tax plan are
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telling me there will be no phase-in of the corporate tax rate in had been discussion about having it phase in over four to five years i'm hearing that will not be included in the republicans ae plan that will be released tomorrow it has been a full-court press here as lawmakers hammer out the final details of that plan house speaker paul ryan as you mentioned was meeting with president trump earlier today, he was talking about the legislative timeline for getting this done by thanksgiving in the house. he came back to capitol hill and met with conservative leaders and he told them that he had a thumbs up from the president >> i just came from a meeting with the president he is all in on tax reform 100% onboard so we are linked we're ready. we're excited. we're moving. >> reporter: now, the gop is still trying to find some consensus within its own party, though, on some key issues addition to the corporate rate, there's some members who are concerned about the impact of
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the state and local tax deduction. the current proposal is to get rid of the income tax deduction but keep the deduction for property taxes meanwhile, over in the senate, susan collins has laid out her requirements for supporting any tax bill, and that includes no repeal of the estate tax, as well as no tax cut for millionaires i also talked to senator john thune who's a member of republican leadership in the senate about his views of phasing in the corporate tax rate guys, he said that he is not personally in favor of it but in the senate he's not taking it off the table. back over to you. >> all right ylan, it sounds, by the way, like they're really going to announce this thing tomorrow >> reporter: they're really going to announce it snaras far we know. things can change at the last minute there's a plan for a rollout i'm counting down, kelly. >> i bet you are, we are, too. ylan mui in washington. let's send it to seema mody for an alert on 3-d systems.
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>> moving lower, the company that specializes in 3-d printing reporting a loss of 20 cents, a 20 cent adjusted loss for the third quarter. that came in well below estimates. the estimate was for 12 cents. sales came in at $152.9 million. that also came in below street expectations when it pertains to guidance, the company saying predictability has been difficult in this environment and, therefore, management believes it is prudent to withdraw guidance at this time shares you can see are down 16.8%. nearly 17% here in afterhours trade. another mover here i want to point our attention to, envision health provides medical services. reporting disappointing earnings of 73 cents adjusted versus the expectation of 88 cents. interesting commentary here, it's reviewing strategic alternatives saying, quote, all options are on the table also worth pointing out envision's operations were disrupted by hurricane harvey and irma during the third quarter of 2017.
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kelly? >> all right two big movers to the downside seema, thank you very much, seema mody. we have an updiate on the incident in lower manhattan with sue herera. >> thank you very much the death toll now stands at six. the injury toll could be as high as 15. wnbc reporting that authorities are treating this as a suspected act of terrorism here's the timeline of what happened this afternoon. a vehicle entered the west street pedestrian bike path just a few blocks north of chamber street, and for those of you who have not been in that part of manhattan, it's 2 1/2 blocks north of the world trade center. it is an extremely busy area of new york city. because it is narrow, it is always very crowded. the vehicle went down the bike path it struck multiple people on the path there are, as i mentioned, six fatalities a number of people injured perhaps as many as 15. the vehicle continued south,
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striking another vehicle that is why the picture when you see it of the front of the home depot rental truck is so damaged because it ran into either a bus or another vehicle the suspect exited the vehicle, displaying imitation firearms and was shot by the nypd the suspect is in custody, alive. we do not know the status of his injuries they will have a briefing at 5:15 with the mayor. the governor has been informed we do have video taken earlier that we're going to roll right now. and it is of the suspect in this situation who exited the vehicle. that is the suspect. he's running across the west side highway you'll see other cars. you see those cars stopped when this video zooms in many, you will see he is holding in his hands what the police are calling imitation firearms they didn't know from that distance whether they were imitation or real. they shot that suspect as he continues to move across the
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west side highway there in lower manhattan. the schools in that particular area are on lockdown the investigation is continuing. most of the streets around the west side highway in that area of town that feed into the west side highway are now closed. that's a live picture. we do, as i mentioned, have at least six people dead. some of those injuries, though, are reported to be quite serious. so that death toll may rise. the mayor and the governor are being briefed right now. we expect a 5:15 or so briefing to the press as they continue to move as you can see there, people who have been injured in this particular incident. and it's starting to get a little bit darker, too, so that will make the work a little harder for all those first responders in the lower part of manhattan. kelly, let me just check and see if there's -- sarah sanders no u s now saying the president has been briefed on the incident by
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chief of staff kelly, general kelly. we'll be updated as more details are known. the president sends his thoughts and prayers to all those affected and that's what we have right now. and as soon as i get more on that, sarah -- sarah kelly, i will send it back to you. that is a picture that you're looking at live of the truck that was -- >> yeah, you mentioned that that's a rental truck from home dep depot. is that different from it being a commercial vehicle >> we believe it's a rental from home depot we reached out to home depot as far as we know, it is not a commercial vehicle it is something that was rented. home depot says to cnbc that they are cooperating with authorities. and this is now being treated by authorities according to wnbc as a potential act of terror. >> so michael, i guess anybody could rent one of those -- >> exactly. >> -- vehicles then. they would say it's for -- use it as a pickup truck. >> a u-haul type thing. >> absolutely. >> sue herera, thank you, back 'lkeeadquarters.
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wel ep monitoring the situation, of course more "closing bell" right after this debt? will they stay true debtto their words? or did they promise you one thing-only to do another? right now, congress is talking about tax cuts that will add trillions to our national debt and hurt our economy. it's time to tell congress-don't borrow more money from china. and leave more debt to our kids. keep your word. tax cuts shouldn't add to the national debt.
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well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
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lawyers from facebook, twitter and google taking to the hill today for the first round of congressional hearings on how russia used their platforms to
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meddle in last year's election kayla tausche joins us from capitol hill with the latest kayla? >> reporter: hey, kelly, the summation of what we heard so far from executives from facebook, twitter and google, is basically an exercise in limitations of all of these platforms. we heard executives say that they could not sort or track issues-based ads despite the fact they could track ads bought for or by a specific candidate on facebook. we heard twitter and google talking about how imperfect their information is about the end customer who is purchasing the ads saying they don't have linear information, that their platforms don't allow them that information about exactly who and where those purchases are coming from. here's a particular exchange from the ranking democrat, sh sheldon whitehouse and acting general counsel of twitter >> you admit if you trace it all the way back to an american corporation, let's call it americans for puppies and prosperity, and it's actually a
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shell corporation, you don't know who's behind it, it could be vladimir putin, it could be a big powerful american special interest, it could be the north koreans or the iranians. you need to be able to penetrate the obscure city of the shell corporation. correct? >> yeah, we're working on the best approach to getting to know the clients and getting to know who's behind the entities that are signing up for it for advertising. >> reporter: so it's still a work in progress, getting to know the client, getting to know who's purchasing the advertising. twitter also saying that they estimate that 5% of the platform's accounts are fake but that the company's policy of letting users sign up anonymously inhibits their ability to actually figure out whether that is true facebook, in particular, put a specific point on what they are doing and how many people they are hiring to combat this issue. the general counsel said that they have about 10,000 people at present currently working on their safety and security team and that they're looking to double that by the end of next
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year that is is a costly proposition but one that is likely, kelly, to placate lawmakers here on the hill. >> at least that's what they're hoping kale will, thank you very much, kayla tausche. more details on the deadly incident in lower manhattan when we come right back stay with us on "closing bell.
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we've got an update on the incident in lower manhattan now. sue herera has those details sue? >> kelly, thank you very much. we still have a death toll of three and injury toll of at
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least 15 we now know that authorities are investigating this situation in lower manhattan as an act of terror wnbc is reporting that as that truck went down the west side highway bike and pedestrian lanes, mowing down people and bikers in its path, that the -- according to sources, anyway, they tell wnbc that the truck crashed deliberately into a school bus that was carrying at least three children the condition of the children on that bus not yet known the mayor and the governor are on site. we basically know that this suspect got out of the truck and we showed you that video earlier, ran across the west side highway, after mowing down multiple bikers and pedestrians and hitting the school bus he fled the truck.
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brandishing what authorities are calling imitation weapons. they now know they were imitation but at the time, they did not. and he was holding them in plain sight as he ran across the west side highway they shot him. his condition is unknown, but he is alive we do not have a name, we do not have any other information on him. we have a briefing coming up in just about half an hour. basically, there were several -- there were several schools in the area, one is a high school, one is a grammar school. we do not have any information on whether they have lifted the lockdown yet both of those schools are on lock down. the west side highway is closed in both directions from 20th street south i expect it will stay closed for some time as they continue to work this accident scene basically it is now a murder scene because we do have six people dead. at least 15 injured. those injuries, some of them are reportedly quite severe, so that death toll may change. it was a deliberate act, according to authorities
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they are investigating it as an act of terror. and an area of manhattan that is always crowded, always busy, and presumably safe because it is a bike and pedestrian path certainly was not today. kelly, back to you >> all right, sue, thank you sue herera let's bring in tom ruskin, former new york city police detect if investigator, he joins us now by phone. we really appreciate it. detective, what's going through your mind as you hear the latest on just what unfolded? >> well, this was one of my responsibilities in my later years with the department was to respond to any incident in the city of new york of this type of proportion so at this point in time, from everything i've seen, it looks like a purposeful act. if you're familiar with that area, the bike and running path is separate than the street. so it's not something you can just go on to and drive down
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without purposely either losing control of your car, but in this case, driving probably a quarter of a mile on this thing, hitting and killing the people that he did on bikes and running and then purposely crashing into the school bus i think that we have that we hak the heroism of the police officers who responded to stop the act, and him running through the streets as caught and filmed by local nbc stations, of him brandishing what appeared to be a weapon at the time >> why do you think he would have had imitation weapons >> well, i mean, we know from past acts around the world that at times, people have brandished either phony weapons or in european attacks, they've brandished phony explosive vests. that's part of what a person does during a terrorist attack
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>> and you used the term "terrorist attack," it does look like a purposeful act, by almost any definition a terrorist attack, with multiple deaths, multiple injuries. what do you think of the fact that he crashed into a school bus, is there any precedent for that >> no, but it would fit the pattern. this is a guy who has apparently rented a truck from home depot which anyone can do for 19 to $25 a day, and has taken this vehicle and purposely mowed down people on a gorgeous day in new york city who are riding their bike and jogging, and then threatened other people after crashing into the school bus with imitation weapons we don't know his motives as of yet. police, the fbi, and the new york city, the joint terrorist task force, made up of new york
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city police officers, state officers, and federal officers, will be doing all the forensic work that now needs to be done and learning everything about this man, if he survives his wounds, he'll either betried i state court or federal court on terroristic charges. probably, most likely, the feds will take over this case if it has terroristic overtones and/or fits the patterns of a federal charge >> thank you very much, detective ruskin, for calling in, we appreciate it horrible situation that was tom ruskin. we'll keep following you the story and give you details as we get them i'll be right back
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we'll bring you the latest details on the deadly incident in lower manhattan, you see the agimes there, a rented home depot truck mowing down pedestrians. we'll be right back.
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we're following breaking news out of lower manhattan where a vehicle struck pedestrians on a bike path cnbc's todd haselton is on the phone. todd, what did you see >> reporter: i said, i have to get out of the car, something's going on we weren't moving. i walked up the street and saw the press pool, there were a lot of police officers, lots of firemen. they're sort of all around here on the plaza, all around this whole area it's kind of hard to even walk anywhere, there are a lot of cars that have been stopped. a lot of confusion >> you're at the westfield plaza, downtown, near the trade
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center we know a lot of the road systems have been shut down. what are you seeing now on the streets? >> reporter: still a lot of police officers trying to direct traffic. up the block it's still completely closed off with more than a dozen trucks, police trucks, fire trucks, ambulances, that kind of stuff up the street slowly some of them have started to run south down here towards lower manhattan with their si s sirens on, still helicopters above. a lot of people didn't know what was going on, aside from hearing about the home depot truck >> how close did you get, or did they turn you away >> reporter: they turned us away i was standing just at the south end of that street where everything happened, and looking up, you could see what looked to be stretchers and those sorts of things they were really blocking everything with the car so you can't see much of the street >> todd, thank you very much,
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giving us the lay of the land. >> reporter: sure, thanks, kelly. >> todd haselton from cnbc.com let's get to melissa lee at freedom tower, six people were reportedly killed when a man drove a pickup truck into a bike path on the lower west side of manhattan let's get to sue herera. >> reporter: this is obviously still a very active scene, still a developing story it happened about an hour and 15 minutes ago. here is what we know we have six people dead, at least 15 injured we do expect that number possibly, that death toll, to rise, because we're told those injuries, some of them, anyway, are severe we are told that as this driver entered the west side highway pedestrian and bike path, he mowe

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