Skip to main content

tv   Closing Bell  CNBC  November 10, 2017 3:00pm-5:00pm EST

3:00 pm
learn of this news that maybe the doj doesn't like the idea. >> mine is i want to thank all the veterans out there everywhere, thank you for your service, including one special veteran, that's my father, tom sullivan ten years, united states navy. u.s.s. james c. owens. traveled the world for a couple years on that ship dad, i know you're watching. thanks for your service, pop >> "closing bell" is up next i think we have a chance to make 20 times money over the next 15 years, 10, 15 years. people don'thave that kind of horizon investing. that's what gives us a big a advanta advantage. >> that was billionaire ron baron's bullish call this morning. we'll tell you which stock he's betting on, might be able to guess it and debate whether it's a good investment opportunity right now. welcome to the "closing bell," everybody, i'm kelly evans at the new york stock exkachange.
3:01 pm
>> i'm bill griffeth disney about to bget a streamin price war with netflix can disney keep prices low as it looks to acquire morecontent critical future for the mouse house coming up. how about $5 billion in 15 minutes, how much alibaba made today on its single day shopping event. >> the tote board is going up faster than the u.s. debt tote board. that's pretty fast. >> if only the u.s. debt clock was going up for a good reason. >> yes let's start, though, with shares of jcpenney getting a big boost after its quarterly report showed a smaller than expected loss and jump in same-store sales. one of the retail stocks owen our radar today ahead of another big week of retail earnings coming up. courtney reagan's right behind us here an the floor of the big board with a roundup here. court? >> hey there, bill and kelly jcpenney shares higher by 14% and change that's only 40 cents because we know the stock is now trading just above $3 a share.
3:02 pm
still, that's a substantial move higher you might remember it was two weeks ago that jcpenney actually warned us about the results to come for the quarter and they weren't nearly as bad as expected jcpenney did still report a loss but smaller than expected. revenues actually stronger than forecast that was the same scenario for the same-store sales those came in up 1.7%. that's the best result they've had in more than a year. almost 0.9 percentage points higher than where the retailer thought they'd come in two week ago. jcpenney saying on the conference call it was the last several days of the quarter where sales came in much stronger than expected during the quarter the company did the reset of the women's abarrel basically saying they had it wrong for a long time, had too much traditional merchandise, not enough casual and active they worked through reset and saw the first positive comp in women's apparel in 14 months in the month of october so traders like what they're seeing there margins also expected to increase in the fourth quarter
3:03 pm
we know how important that can be during the very promotional holiday season you're seeing ining jcpenney sh higher nordstrom shares under pressure today, down by .4% nordstrom reported after the bell on thursday ironically, expectations are probably the highest for nordstrom than high-end retailer, however, those comps were weaker than expected so even though there was a beat on the earnings and revenue, that's where the disappointment lies and where traders are focused today. when you look at the full-year forecast, going to be a 6 cent impact from the hurricanes most of that did happen in the third quarter but still, not something you really want to hear when you're playing to win in that fourth quarter next week is a big, big week for retail we've got walmart, we've got target, home depot, tjx, gap and a lot more best buy, too. these are the big box retailers. you know how important thanksgiving and black friday is to them. while we always pay attention to the forward-looking guidance, it's really important this time around for the retail earnings and don't look now, but black friday is just two weeks away.
3:04 pm
i'm excited and scares all at the same sometime. back over to you guys. >> oh, boy it's the big day for courtney. overall this week was not bad for retailers. >> yeah. >> they showed signs -- macy's another standout, too, right >> yeah, exactly, that was interesting because the same-store sales for macy's pretty disappointing and had a pretty big drag from international tourism as well as the weather and hurricanes but still because they reiterated that guidance for the com sales for this upcoming holiday quarter, traders say they think those are going to reaccelerate we like that in the holiday quarter. those shares were up 10.5% or so on the day day lothey reported earnings. >> it gain of 9.5% for the week. that's a good year right there. >> except it's down 50% still. >> oh, by the way, yeah. >> courtney, thank you. >> see you at the close. let's get over to alibaba's single day sale kicking off in china, that is the single biggest retail event in the world, sorry, black friday it's larger than that and cyber monday combined.
3:05 pm
live in shanghai with the latest look of how the shopping spectacle is going >> hey, guys we're closing in on about $13 billion just four hours in, and analysts are saying that this could go as high as $24 billion at the end of this 24-hour period now, international brands are being showcased like never before 60,000 in total. that's 7,000 american ones and just to name some of the best american sellers so far, apple, nike, new balance, the gap, as well as estee lauder the u.s. is the second best selling country to the chinese after japan. this singles day isn't only about sales but about alibaba really showcasing new initiatives it has that it believes will help change the entire retail landscape in china. and also alter what alibaba does in retailing in this country so alibaba, for example, owns a chain of supermarkets.
3:06 pm
it's called huma what they're hoping to do is really leverage off of the online platforms and users that it has in order to sbintegrate t into physical stores so this chain is kind of like this high-tech dhchinese version of whole foods. the idea behind it, they want chinese people to go in and shop with their mobile phones, scan various items in there for more information. also place orders. and have those groceries delivered to their homes within 30 minutes or they could just take the groceries, stick them in their basket and go to the checkout counter where their face will be scanned by a facial recognition software, and then that's how they pay. but what i think is interesting about this, guys, is that if you are a foreigner and you have an ali pay account, you cannot use this facial recognition software so far because right now, it is based purely on chinese national i.d.s. over to you. >> i just think, you know,
3:07 pm
those -- we call this our moneymaker right here. that's the money payer right there as well. eunice yoon, thank you so much for joining us i know in shanghai there, it's 4:00 a.m i don't know if she stayed up late or got up early. >> or both. >> but she's there for us. let's get to our "closing bell" exchange today for this friday with the -- all the major averages are lower again today michael zin from ubs financial services is with us. he's at post 9 next to the new york stock exchange. trader steve grasso from stewuat frank frankel. cnbc contributor jack barujia. steve, here we go. all kinds of earnings, all kinds of deals coming and going this week we had geopolitical issues cropping up as the president tours asia the thing that moves the market is the tax bill. is that what this market's focused on so much right now >> it really does feel as if that's the only thing that moves the needle and also, also, bill, you're through the earnings cycle so you have no distractions any longer.
3:08 pm
we're going into the back half of the year. we're going into the back end of the year so there's not a whole lot to move the market. you do have those corporate repurchases that can be activ e activated again. but that's really not enough to samize the market slide. this is the if first time we feel as if the selloffs can legitimately take hoeld there isn't a whole lot of reason to buy the market up at the highs unless you have conviction on a certain fundamental reason why you're buying it. so people want to see this market, show me, show me d.c., she m show me how you can pass something. the truth is every time we get a look at this tax policy, it gets watered down and watered down. >> yeah. >> it is a corporate tax cut and that is the last gasp for the tailwind for the market. >> michael zin, we've been reminded this earnings season how well the big tech platforms is doing at everybody else's expen expense. you think that's a crowded sector what's your advice to. >> the market overall fundame
3:09 pm
fundamental fundamentally, we thinks are pretty in tact technically, we would agree this recent new high, didn't have lot of participation the thicng investors should understand as impactful as it is, it's now 24% of the s&p 500. and that is a big number you know, ten years ago it was 14%. the s&p 500. 1999 it was around -- >> you're saying just don't avoid faang stocks, you're saying avoid the whole sector? >> not saying avoid the sector, if you're equal weight tech, it's 24% of your portfolio and it's been up 30-plus percent this year. what i think investors should acknowledge is even a neutral weighting in tech is very, very large. we've had a very, very big run and when you look at the analyst community, you see a propensity of gbuys, look at the investment community, see nine of the ten largest crowding trades are in tech we like tech but we think people
3:10 pm
should be aware it's a very, very large part of the index at this point and it's prudent probably to temper those bets. >> meanwhile, jack, pretty good pop in the long yields today, the ten year back to 240 just like that. what's going on there? >> well, you know, i think a lot of it is the relative value trade. if you think about it, you saw the debt instruments overseas kind of work their way higher in yield. we kind of floated along with it in fact, it's the steepest we've seen the curve in proebbably a week, week and a half. the flattening of the curve was scaring people i don't think it's any coincidence we really saw anything really change in the momentum not only stocks and bonds changed when we saw the announce ment come out of the senate grasso was absolutely spot on when he talked about how the market is pricie ining that in many cases hasn't priced in the fact they might push it out a year we got inflation numbers last week if the inflation numbers come out high, indeed, they're going to hold off on this tax cut for another year, the fed is going to be in a dilemma, what are
3:11 pm
they going to do we know they're going to do something in december. are they really going to raise three times next year if, indeed, there is no tax cut next year and inflation starts to kick it's going to be a real, real hard do for them. >> why do they have to raise this is something that it's -- 97% chance that the world is factoring in that they're raising in december. they telegraphed it, but they've also been bullish or hawkish so many other times before and haven't raised why do they have to raise? i think they boxed themselves -- >> you're right. >> -- to your point into a corner in december where they shouldn't be in that corner. >> they should not raise, especially when you don't have any inflation. i mean, that is the bottom line. so everybody thaalking about the fact they have to normalize, no, they don't they don't have to normalize i think inflation dictates the rate and the velocity at which the fed should move. >> none of you here worried we're going to repeat this whole too low for too long thing from before the last bubble >> i'll jump in and just say i think investors probably should
3:12 pm
be prepared for a flatter yield curve, and it doesn't necessarily mean the end of the world. the fed has a certain longer-term rate expectation they also have a certain intention to raise rates to give themselves some policy space so we may get a curve that's lower than 50. that doesn't necessarily mean that the recession is imminent it just means that they want to get rates back up on the short end and the long end doesn't see a lot of inflation. >> real quickly, jack? >> i believe he's absolutely right. i think the long end of the yield curve is stilling you exactly what the inflation scenario is like right now so, you know, unless we start to see inflation work its way into the economy, no reason for the fed to move after december >> all right thanks, guys have a good long -- not a long weekend, just a week. >> thanks to our veterans. must say that. >> absolutely. we celebrate veterans' day at the new york stock exchange today. >> kboowe're going to have more that throughout this hour. we have a little less than 50 minutes to go until the close.
3:13 pm
>> with the dow, s&p lower, nasdaq higher. so is the russell. nobody is in record territory. in fact the dow and s&p look like we'll have the first down week in two months here. after eight straight higher weeks. up next, shares of disney on a roller coaster ride, initially dropping on those earnings then turning higher on comments from the conference call. we'll tell you what ceo bob iger said that had investors streaming into the house of mouse. coming up. plus tesla's stock hit a speed bump over the past month it's down 15% from its recent highs. billionaire investor ron baron still thinks he'll make 20 times his investment in the car maker. we'll tell you why he's betting big on tesla's future. later it's the moment you've been waiting for digging back into our "closing bell" mailbag. reach out and share thoughts with us over twitter, facebook or over e-mail we'll read some of your thoughts you're watching cnbc first in business worldwide. [ keyboard clacking ]
3:14 pm
[ click ] [ keyboard clacking ]
3:15 pm
[ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours.
3:16 pm
3:17 pm
welcome back roku shares soaring for a second straight day riding its excitement over better than expected earnings that came out wednesday night after the close. there's also a report the streaming company required a danish audio startup back in september to enhance its product offerings. some saying that this move is more of a short squeeze, this move that we've seen the last couple days. the short interest percentage of the float for roku is more than 30%. but that stock was below 20% when they started this thing. >> some explanation, could be up 55% then 20% again >> yeah. >> $3 billion market cap that's not a pharma company with a big drug discovery incredible story. >> streaming is hot right now. shares of disney took a hit after hours yesterday. remember, the company reported a miss on earnings and on revenue. the shares were down almost 5% at one point
3:18 pm
but ceo bob iger's comments on the call turned things around. >> we've given a lot of thought to pricing, both espn and the disney brand and service i can't get specific with you yet. we haven't actually officially determined it, but we said we will be forthcoming with you on this sometime after the first of the year i can say that our plan on the disney side is to price this substantially below where netflix is >> well, disney may be looking at a price war with netflix. will it win? let's ask john ford, former -- president of the discovery channel and andrew, co-editor in chief of "variety. good to see you both john, i don't know, makes sense to me. when you're entering a new market, you're going for market share, of course you want to undercut the price of your competitor even though it cuts into your own margins here how do you think they could ywoo
3:19 pm
>> well, i think they could do pretty well. netflix despite its size in 120 million homes globally, i think it's vulnerable. the content sthaisn't that deep, doesn't supply its own content has to buy or produce it with outside producers. disney comes with pixar, marvel, lucas film, all the other assets ready to go, owned and controlled and all the disney library it's a great offering right from the beginning. it will be priced competitively. i think that's the right move. game market share at the expense of netflix and others in the marketplace. and by then the marketplace will probably feature something from apple and who knows who else so one of the things we have to consider is how many over the top services will consumers support? and i think that's going to be a big question going forward i think it would be wise -- >> yeah. >> -- for disney to price its service competitively but also to gather content from other suppliers who might be disaffected with netflix in the way, what it pays and also it doesn't report the streaming numbers on individual properties so i think there's a lot of dissatisfaction in the content
3:20 pm
marketplace. i think disney can play upon that and grow and be a robust service. >> andrew, what about their announcement mair tathey're makr "star wars" films? >> it's huge, doing exactly what disney needs to do, leaning on the power of great intellectual property it's not just about "star wars." "high school musical," "monsters inc. if they're looking for instance recognition in the marketplace, instant traction, this is absolutely the way they can make a splash. >> how important will this streaming service be, andrew as john points out, they got a deep library, but we've seen all those movies presumably. what about new content you know, their cost to produce is going to go up i would think as they try to compete with everybody else in the over the top streaming business. >> let me clarify, i'm not talking about those movies i mentioned simply reappearing on the skervice talking about tv series versions
3:21 pm
of "star wars" and "monsters inc" which is great and i think at the end of the day as long as disney comes out with something that's priced aggressively against netflix, have enough of a content library, they will be competitive. >> john, what do you think this does to netflix, which by the way, its shares have been a little bit choppy since this announcement came out. between this, between the possibility they might acquire some fox's assets and other things happening in the media space, is this going to be a problem for netflix? >> yeah, i think about netflix, somebody just told me there's a mouse in the house and it's going to -- it might even be a kangaroo in the kitchen given how big disney is. it's going to have an impact on them because a lot of the content that you see on netflix, the marvel and others, have come from disney. so that's going to go away it's going to go to a new place. and disney's go iing to be ablet gather other content from other players. remember, they made a smart move in the asset buy world to try to
3:22 pm
get the fox properties that's going to continue who knows what other studios they could go after? maybe warner brothers. everything is up in the air. disney needs to do a few things. they already got the bamtech technology to stream they're way ahead of everybody else they need to kons thconcentrate asset buys and get more intellectual property beyond what they already if the library, start producing, acquiring, commissioning they can do that both scripted and unscripted don't forget the unscripted world disney can play a big role vis-a-vis netflix. be more cost effective versus $3 million, $4 million drama series you make it's a very interesting world coming i think net politician ougflix notice >> thanks for seeing you thanks for joining us today. >> thank you, bill, kelly, take care. apart from unveiling details about its streaming plan, disney did reveal it's creating yet another "star wars" trilogy. is there "star wars" fatigue julia boorstin has more for us. >> well, kelly, with disney
3:23 pm
shares up almost 3% today, investors seem confident the media giant's congoing ongoing t in "star wars. a trilogy of films that will introduce, quote, new characters from a corner of the galaxy "star wars" lore has never before explored. company also announcing a new "star wars" live action series for the new disney-branded app that's coming in 2019 and saying the force is strong with hahn solo. >> we just wrapped production on solo, our second standalone "star wars" movie. essentially the hans solo origin story, given the huge popularity and global affection for this iconic character, we expect a lot of interest and enthusiasm when it opens over memorial day weekend. >> analysts are bullish about the prospect of more "star wars" coming to the big screen and to a theme park near you. drexel hamilton's barry stein saying the "star wars" lands opening in 2019 are key catal t
3:24 pm
catalysts for disney's park division and should benefit from another trilogy that was just announced. more "star wars" in the works, some fans say there could be overload one tweeting "starting to feel a little star wars fatigue, yet it seems like disney has only just gotten started." another saying "disney is trying to kill us with content, i don't want to get czstar wars fatigue. only one film launching in 2018 and tv series not until 2019, analysts aren't concerned. >> they have to pay for the investment somehow, paid very, very big bucks to lucas film for the rights to "czstar wars" and got to get a return on their money, right >> i think it's interesting to look at how little "star wars" there is compared to the superhero universe there have been so many superhero movies both from marvel, which is disney, and also from d.c. comics which is warner brothers. in comparison, "star wars," there's only one movie coming out in 2018. only one this year so there's a lot less "star
3:25 pm
wars" content than there is marvel content so a lot of people are saying there's more room to grow considering that divide. >> it feels to me like the part of the excitement around "star wars" movies over the last couple years have simply been that scarcity value, the fact, wow, they're going to do it again, we're going to with able to see these characters with updated technology. >> i agree. >> kind of experience this all over again julia, it does feel like people don't need necessarily to get that annual update that they might be better off kind of waiting and bringing it back or doing something else a little bit more fresh with it. >> the analysts are saying an annual update is really what you need, though, to keep interest in the brand i mean, what was so amazing about when they brought back the franchise with "the force awakens," it was really reintroducing it to a whole new generation when it comes to sequels and franchises about once a year is that cadence you want so people remember the next time a movie comes out. so if they have a film coming out on average about once a year, it will make the investment in the parks pay yof.
3:26 pm
look at the fact they're spending $1 billion on each of the "star wars" lands, one opening in california as well as florida, in order to get people interested in those parks, they want this to be something that's in their entertainment landscape every year, not just something that's once in a blue moon >> oh, yeah. it's under the big tent, that's for sure all right, julia, thank you very much julia boorstin. >> $1 million each on those theme parks just for "star wars"? >> after they killed off a certain character in the last movie, i suddenly got fatigue on "star wars." >> i haven't even watched it i'll take your word for it. more than half an hour to go, about 34 minutes until the bell dow is down 30 points. s&p down one the nasdaq and russell are both higher by about three right now. we'll keep an eye on that. new details emergiining abo equifax. compromised the data of nearly 150 million people we'll tell you what management is saying about that breach next. later, panera's ceo speaking out today about competition in the restaurant industry and weighs in on the latest efforts by starbucks to get into the
3:27 pm
bakery business. more business news -- business creep here e longel r you what he said when th"csi bl"eturns of pacific? it's life insurance and retirement solutions to help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families, and 150 years of strength and stability. and when you're able to harness all of that, that's the power of pacific. ask a financial advisor about pacific life. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. 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.
3:28 pm
oh ... he got there. that's the power of and. what if we could keep more amof what we earn?d. trillions of dollars going back to taxpayers. who could possibly be against that? well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy.
3:29 pm
not the debt. ♪ welcome back shares of nvidia hitting another all-time high today, up more than 5.5% in the session after better than expected earnings and guidance after the bell yesterday and number of earnings this morning coming out with positive notes, includes instanet put out a note called falling on
3:30 pm
our sword and upgrading, underestimated the value, the chip maker in gaming, cryptocurrency there's the one-year gain of 220%. >> more treats for jim cramer's dog today. those of you who know that story. more than two months since equifax reported that massive cyber attack the company still does not know how much this hack will ultimately cost them aditi roy has details for us on that aditi? >> hi, bill. what the company did lay out was how much its cost up until now, equifax reporting $87.5 million for q3 expenses related to the hack executives expect to incur $60 million to $75 million worth of breach-related costs in the fourth quarter the company's u.s. information solutions business, that's the one that sells lenders consumer information, took the biggest hit from the breach declining 3% year over year that's not all the company's brass got lots of questions from analysts about
3:31 pm
customer deferrals and the potential loss of market share equifax says many customers are requiring security audits, but officials say they hope to win back their trust then there's the question of legal bills. equifax expects significant legal and other professional services expenses related to the intrusion. the company currently faces 240 class-action lawsuits, inquiries from 50 state attorneys general, and subpoenas from the s.e.c. and u.s. attorney's office related to trading activities by equifax executives company officials said they will not be receiving any incentive compensation this year because of the breach and when pressed by analysts about how much insurance coverage equifax has for the hack, the execs declined to comment back to you guys >> down 8% this year, those shares are, aditi, thank you very much. time now for a cnbc news update, let's get over to contessa brewer. >> hi there, kelly, hi, bill here's what's happening. former british ambassador to the
3:32 pm
european union, played a key role drafting article 50 said britain's exit from the eu can be reversed at any time, can chain its mind if it decides unilaterally to scrap brexit talks. >> this country still has a free choice about whether to proceed. as new facts emerge, people are entitled to take a different view and there's nothing in article 50 to stop them. i think the british people have the right to know this they shouldn't be misled defense secretary jim mattis met with britain's new defense secretary gavin williamson in london the two held talks following a meeting of nato defense ministers in brussels. they reiterated their commitment to strengthen their countries' special relationship. a blanket of thick cough-inducing smog enveloped new delhi this week, cutting visibility, you can't even look at that. caused car wrecks, forced the government to close 6,000 schools. they're telling kids no way can you play outside new delhi is one of the world's most polluted city
3:33 pm
a big problem there for business that's the cnbc news update at this hour. i'll send it back to can yit yol >> thank you very much, contessa brewer am i going to talk or kelly? joining me on the floor of the stock exchange, the dow down 24 points this is ken inny from o'neal securities crazy week seems like the tax bill is getting the market's attention the post. >> absolutely the tax bill no one is going to pay attention to the macro data between now and the end of the year. no one is expecting anything really out of the blue right? it's all going to be about washington, taxes, the senate version, the house version and how soon or not soon it's going to come together. >> right. >> i think that's what's creating all the uncertainty of late. >> but some of the earnings have been pretty good i mean, even retail, we had a good response from the retailing to stocks. >> thevi rewarded ad ee eed as they shou.
3:34 pm
9 broader market is go ing ing o come under pressure. especially after last week kevin brady came out and said, listen, we've been having negotiations with the senate and it's going to be good the senate comes out and their version is completely different. >> by the way, i see you wearing the poppy. lot of people around here wearing poppies today. it's your headstrong project. >> it is, it's veterans' day as we know. the new york stock exchange has so kindly offered to donate all the proceeds from new york stock exchange, america, trading revenue from those stocks to the headstrong organization. the headstrong project is that charitable organization i'm a board member of that treats these returning 9/11 combat veterans that suffer from the hidden wounds of war, not the physical wounds of war. >> is right. >> so we've been around for about five years we're in a range of cities around the country with expansion plans to go we've got great corporate sponsors with us today bbmc, go wireless, big corporate sponsors with us we appreciate that i as a member of the new york stock exchange am so honored to think the exchange would pick
3:35 pm
the headstrong project as a veterans charity for this day. >> we applaud you for your efforts, you and your wife who's here with you today. all of you, thank you for your service and the work that's being done by the headstrong project here at the new york stock exchange. >> thank you. >> thanks, kenny, very much. >> kelly >> big thank you from me as well. 25 minutes to go until the close, dow down 25 points today. s&p down a point and a half. russell in positive territory by four it's still well off its record-closing high. the nasdaq is positive by two. panera's ceo is taking a shot at starbucks for opening its first high-end bakery. up next, find out what he had to say and the impact it could have on those coffee wars. is it too late to get into the driver's seat and invest in tesla after a more than 40% rally this year? we're going to debate both sides of that trade later on the "closing bell. cnbc sector sort is sponsored by sector spdr etfs. sector spdr etfs
3:36 pm
visit us on the web at
3:37 pm
firstthen you put yourselfareer. through school. got the degree. you've given it your all, to reach the goals you've set. don't let student debt hold you back.
3:38 pm
refinancing student loans with sofi can save thousands. so you can get where you've always been headed... sooner. see how much you can save with sofi. the leader in student loan refinancing. i'm a substation electrician my nwith pg& varela. when i was 17 years old, signed up for the united states army and i started serving and i now get to serve the customers of pg&e. i get to help other families. and that's what it's all about. when i came back from iraq, couldn't find work. then i found pg&e's power pathway program. here at pg&e i'm successful living in eureka with our two beautiful kids with a brand new career all because of the power pathway program. if you are a veteran, go to and hopefully your life will change like mine did. together, we're building a better california. minus signs for the dow and s&p, looking like they're going to break their eight week win
3:39 pm
streak down week this week. nasd nasdaq, same thing up a little bit. the russell ter pret tough weeks, it's been going lower since early october. it's up today. there are the sectors, the sector heat map. is that for this week or for today? >> looks like today. >> that is today's heat map. so we've got the consumers leading the way today. with health care and energy in the minus signs. >> turning now to the hot competition and the fast casual space. panera ceo ron shaich responded earlier on cnbc to a comment he made earlier about poking fun at starbucks' push into bakeries. >> they're opening their first quasi bakery i wish them luck it's not panera. my comment is in reaction, somebody said is starbucks now going to compete with panera i think that the world is increasingly competitive, but panera's won at it we literally are generating 6% comps year to date we're running 800 basis points better than the all-industry average.
3:40 pm
>> this got me thinking about was is panera actually challenging starbucks? you know, starbucks is the dominant u.s. chain in in terms of its locations, penetration, and just its thought, you know, its presence as that third space. what if panera is actually challenging them and offering the very lunch that starbucks is trying to offer but can't quite get there? >> don't forget, i mean, panera's now part of this family of companies owned by j.a.b. holdings keep an eye on that company. they've bought panera, bought caribou, bought pete's, bought krispy kreme so, you know, they can afford to go after a starbucks. >> i think it might be easier to take on starbucks by offering some coffee and other special drinks. >> is absolutely. >> than it is for starbucks to take on panera by offering that level of baked goods and -- >> frankly, i've long thought one of the weak spots for
3:41 pm
starbucks has been the bakery part they're not up to the snuff of other companies that offer that stuff. >> they tried. they're trying again i'm with you. >> we will see. 20 minute to go. transports are down 11 again, after a tough session earlier this week. russell hanging on to a small gain the nasdaq, too. tesla shares, now they're up just 40% this year billionaire investor ron baron n says the stock has nowhere to go but up since here. tesla's gains this year are peanuts compared to alibaba, up more than 110% we'll find out if now is the atta se ofs.prit th's later on "closing bell. ur ? yeah, i got some financial guidance a while ago. 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
3:42 pm
to get to know you. there was an old woman who lived in a shoe. she had so many children she had to buy lots of groceries. while she was shopping for organic fruits and veggies, burglars broke into her shoe.
3:43 pm
they stole her kids' mountain bikes and tablets along with her new juice press. luckily the geico insurance agency had helped her with homeowners insurance. she got full replacement on the stolen goods and started a mountain bike juice delivery service. call geico and see how affordable homeowners insurance can be. [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future.
3:44 pm
yours. the new york stock exchange today, of course, we are celebrating veterans' day which is technically tomorrow. but today as part of the celebration, what you're hering here, they're havingcake-cut inger er iceremony to commemor founding of the u.s. marine corps going back to 1975. >> we're going to hear "god bless america" shortly after the closing bell, too. >> looking forward to that. congratulations. looking forward to the rest of the veterans ringing the closing bell today. >> we wonder if they're handing around the chocolate cake. >> looks tasty imagine the sword he's going to
3:45 pm
use. there you you -- >> that's awesome, that's how you cut a cake in style. >> that's how you do it. >> anyhow, it's fun to watch, isn't it >> good job. >> bring him over for the next birthday party. >> don't get any chocolate on those gloves. cvs, its $66 billion bid to buy aetna, a health insurer a good way to fend off competition from amazon, cvs health up 2.5%. >> another deal we've been talk bing about. >> related to amazon. >> so many. meanwhile tesla is up more than 40% this year earlier today on "squawk box" billionaire investor ron baron from baron capital named tesla as one of his top picks. listen. >> been investor for about 3, 3 1/2 years. it's a $500 million investment presently. i think we have a chance to make 20 times the money over the next 15 years, 10, 15 years people don't have that kind of horizon investing and that's
3:46 pm
what gives us a big advantage. >> is there room to grow or will tesla's stock stall out here joining us, tasha from arc investments. and dave hoffman tesla is his fund's largest short position welcome to both of you tasha, even if you're bullish, do you guys see a 20x increase, is it possible for this company? >> it's certainly possible if you look at the opportunity in autonomous cars which we think is the largest market opportunity tesla has in front of it, that's quite possible and the reason is because we think the market for autonomous taxi services, tesla's version of uber, is larger than the opportunity of producing vehicles, alone. they're much further ahead that any traditional automaker in this space because they're currently collecting data off of their vehicles that we use to train their autopilot system and gives them a huge advantage in terms of launching first. >> gabe, it's your biggest short position is it just too expensive, you think something's flawed about the company? >> absolutely, bill.
3:47 pm
let's put it this way. those claims are absolutely ridiculous tesla already has more than a $50 billion fully diluted market cap. to say it's going to go to $1 trillion is unbelievable lets put it this way, when you have a controversial longs and shorts on both sides, you want to settle the argument, when you look at the bond market for tesla, issued $2 million worth of debt three months ago and the bonds have completely tanked they're down to under 94 cents on the dollar. mow that doesn't sound like a lot but in fixed income, that's big. if you bought those bonds, you're already down more than one years's worth of interest payment. they're trading in junk territo territory. they will get downgraded to junk. >> there also, by the way, a bernstein analyst, experienced the model 3 and said he found some issues with its fit and the way the cars were assembled. how big a problem is it for them if the model 3 just is struggling to launch >> the model 3 is going to be a complete disaster.
3:48 pm
both quality and safety. that's a fact. they can hardly manufacture it it's just incredible i mean, these guys at tesla withdrew their model 3 from the 2018 north american car of the year competition they said they couldn't spare one. yet they have a bunch of them to hype the wall street analysts to test drive in brooklyn you got to wonder why. >> all right, we all know elon musk is ambitious, know he set ambitious timetables in the past he does have to fund the production of the model 3. why aren't these big issues for you right now? >> is so certainly in the short term, production is not something to be overlooked but really with tesla, if you're a long-term investor like we are, looking five, ten years out, in order for the story not to make sense you have to assume they can't produce cars and all. that's just not going to happen, right? so we actually assume even if you assume a share dilution with tesla, say in the order of $10 billion to $20 billion over the next 5 years the opportunities in autonomous cars is so large that we just want them to spend money to get as many cars on the
3:49 pm
road as possible because that will give them the add van stage vantage of the aui network space. >> i find it interesting you're addressing autonomous cars in general, not just tesla. you think tesla can be a big part of that, is that what you're say ing? >> out of traditional automakers, tesla is closest to launching an autonomous taxi network. making a few thousand dollars off the model 3 now. we think that could go over $10,000 in cash per year from autonomous taxi services and could add hundreds of billions of dollars to tesla's market cap which is $50 billion today big opportunity. >> gabe, final word, respond to that. >> that's all a bunch of hype. the hype stories have a bunch of big shiny objects they hold out into the future. the fact is the engineers who write about autonomous testing tell you they won't be available for at least ten years elon musk told people two years at a ted talk. he's completely full of it elon musk makes donald trump look like an angel >> okay. well, somebody cease got to be
3:50 pm
right and somebody wrong we'll see who it is. tasha, gabe. thank you both for joining us today. appreciate it very much. >> thank you. coming up in the last ten minutes of trading for the week, the dow down 32 points right now. >> and shares of ge are down more than 30% this year. that compares to an 18% gain for the dow and ge could be making a big decision onits future. when it announces what it may do or not do with its dividend come monday we're going to get you a preview later t "osg llonheclinbe." let's get started. show of hands. who wants customizable options chains?
3:51 pm
ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.
3:52 pm
3:53 pm
welcome back dow and s&p are lower today. nasdaq and russell are trying to stay into the green with seven minutes until the bell bertha coombs up at the nasdaq with the big movers there. >> hi, kelly, thanks very much small caps today lifting the nasdaq into positive territory really the biggest mover here is nvidia with those blowout earnings the stock has now doubled this year believe it or not, that's slower growth than we saw last year when it was up 220%. nonetheless, that big move by nvidia is helping chips sustain a nine straight week winning streak meantime, we're also seeing a number of consumer discretionary names higher today newscorp higher on the back of
3:54 pm
strong earnings and outlook. names like hasbro and mattel getting a lift as people think about holidays and "star wars" toys making their way under the tree and in stockings. finally a large cap tech names, mostly down this week. dis appoiappointing earnings fre likes of priceline certainly a bit of a drag. that said, apple and amazon ard helping the nasdaq 100, it looks like, just eke out a seventh straight week of gains kelly? >> thank you, bertha. >> one of the few market averages with a gain for the week. >> yep. >> we're going to wrap things up overall. otherwise coming back with the "closing countdown" in a moment. after the bell the house and senate unveiling separate tax reform bills yesterday with key differences. enether that could throw a wrch into the president's plans. stay with us you're watching cnbc first in business worldwide.
3:55 pm
well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy. not the debt. ♪ win an uncertain world?k predictable income pgim sees alpha in real assets. 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.
3:56 pm
sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. let'sfist word that comes to mind when you think of low-cost futures trading. was it happy?
3:57 pm
what about a dedicated service team with futures licensed specialists? and what about being able to react to the 24-hour futures market with integrated trading across web and mobile? still happy? good. then it's time for power e-trade. the platform, price and service that gives you the edge you need. e-trade. the original place to invest online. all right. going into the last 2 1/2 minutes here of the market with the dow down 33 points they say wrap the week up in two minutes, bill. you can't do it this week, but we'll give it our best first time, we're going to be down this week for the dow and s&p. first time we've seen that in eight weeks. by the way, we've made history today. the s&p has gone 12 months now without a 3% pullback.
3:58 pm
that has never happened in history. but we are down on the dow for the week and for the s&p and for the nasdaq although the nasdaq 100, it looks like we will be eking out a gain as bertha pointed out big gain er for the dow this week, disney so much going on there david faber reporting on talks the earnings the new "star warwars" movie the word the sprint/t-mobile merger had gone by the wayside russell 2000, that's been going down for the last several weeks here going back to the early part of october and some feel that's a proxy on the fate of the tax reform bill. another down week here down more than 1%. the yield on the ten year popped today. so we're much higher for the week in term the of yields on the long yields, back to 240 so the high end of the range there, and courtney reagan, we all know how cold it is today and has been
3:59 pm
mother -- much of the northern part of the united states natural gas has rallied this week we're back to highs we haven't seen since last spring so we're now at $3.21. >> reit taile ersretailers are s getting colder. >> lot of sweaters are going to move this weekend off the shelves. >> thank goodness. macy's earlier in the week pointed out the warmer weather hurt them. we laugh at that seriously, if it's 70 degrees, are you buying sweaters? >> you should be, but you're not. >> the ceo actually told me every category that wasn't cold-weather related performed at or above the plan it does matter next week a huge -- >> i was just going to say, so tell us about that what's coming sfe ining up >> walmart, home depot, target, best buy best buy, actually the best performing retail name in the s&p 500 since the election best buy actually above amazon, at least it was early in the week so a big week for retail black friday is right around the corner. >> two weeks from today.
4:00 pm
>> oh my gosh, here it comes. >> we'll be seeing courtney in a mall >> for sure. who wouldn't be in a mall on black friday >> should be in front of a computer screen these days. >> i have iphones, ipad. >> we honor our veterans at the new york stock exchange and nasdaq we'll get you set for next week's big week for retail, tax reform and ge's investment day on monday. stay tuned for the second hour of the "closing bell" can lkell evans. have a good weekend, kell. thank you, bill. welcome to the "closing bell," everybody, i'm kelly evans declines for the major averages, s&p and dow jones industrial average. the dow dropping 38 points on the bell today the s&p down about two points. as you can see there, both of them for the week posting their first declines in nine weeks the nasdaq composite up just fractionally on the bell to 6,750. russ 2000 small caps a half a point higher today
4:01 pm
still well off the early record october highs. we'll have much more on this also have shares of alibaba more than doubling in price so far this year. biggest shopping day of the year, singles day, under way in china. excitement for the holiday may be waning. what it means for alibaba and massive run of 112% year to date more thoan that coming up. joining us, michael san tolisan. joe jeran from united capital. the biggest dow winner this week was disney on the back of the earnings report and talks with talk fox. the biggest loser was verizon in the dow this week. over in the s&p the big winner was the mall company, macerich, had reports of greenlight having a stake. the big loser, trip advisor. closed down 1% for the week. we had big swings this week after it reported disappointing earnings that affected the whole travel sector. mike, we have a decline for the
4:02 pm
dow, breaking a string of gains. we've not seen anything like the kind of pullback that's typical. >> no, certainly worth reminding people, kelly, half a point below the all-time high on the s&p 5 hushlg00 half a percent it felt like the market was back on its heels pretty much all week, especially the last couple days in reality it was only jarring because we've had so little volatility and i do think that the pickups in disney and other media stocks, retail bounced very hard this week. it kind of shows you that this rotational instinct is still there and companies are busy quiet on the macro front but on the corporate front, a lot going on >> what do can you make of all that deal activity what does it tell you about where we are in the cycle? >> i don't moknow i wouldn't make too much of it mike and i, we talked a number of times about how the typical signal the you see in bull markets seem to be absenbsent in this one ipo activity not really there, huge m&a activity. sprinklings of it, not what you
4:03 pm
would normally expect. this rotation into the media stocks and the -- to me, it's like a head fake, it's like jcpenney, you know, the stock's down, i don't know how much it's down on last couple of years when these get these bounces, they're really dead count balances i wouldn't be overly excited about the retail sector overall. >> a big week for the media stocks disney's talks about 21st century fox entertainment units to sol lid quarterly earnings fm newscorp, one of the biggest in the s&p and nasdaq today it's up 10% for the week there's optimism about potential shakeup across the space, of course, but how much do you make of what -- of this merry go round? >> you know, it's weird, it's like i don't denver you know, we talked over the last year about, you know, everybody's disney content is king, all this kind of stuff i really don't -- i really -- i didn't like disney at $120 simply because they've had these companies have huge runs and i tend to believe that the future does not belong to the disneys
4:04 pm
of the world you know, i'm not going to say that netflix is the be all and end all, especially at its elevated valuations, but -- there's nice singing going on. >> "god bless america" performed by the six string soldiers the day before veteran s day, of course we can listen in ♪ god bless america our home sweet home ♪ [ applause ] >> that was awesome. the six string soldiers, again, up there on the "closing bell" platform performing "god bless america" in honor of veterans day. joe, what you think is going on a cross the media sector
4:05 pm
>> thank you for the amazing lead-in, kelly, not every day i get sung on to give my thoughts and they're still applauding first of all, i think what you're seeing, several, two months ago i was optimistic watching what was happening with interest rates and small caps going up a lot the last three, four weeks i'm seeing the opposite. that is of concern if we don't see a rotation back to the small caps to high ore interest rates, who you're seeing is less and less confidence of this tax bill happening. a lot of concern about what it actually is, more complicated than the existing tax bill more than anything, a lot more investments in momentum stocks like nvidia that is not tra transferring what i'd like to see is more rotation otherwise i'm a little concerned we're seeing more and more concentration to fewer and fewer names and that's great for the long-term health of stocks >> evan, what do you think -- >> saw a lot of good stuff a month ago.
4:06 pm
not so much now. >> i think it's a mess i don't -- you know, i think i can look at it relatively objectively even though it's probably bad for me as a high income earner -- i'm sure -- trust me, i'm sure there are a lot of accountants and lawyers out there figuring that out right now. i can look at it objectively, doesn't seem we're going to have a simpler tax code it seems like a lot -- the trump administration is betting a lot on this idea that if you cut the corporate rate, not for big corporations but these smaller, you know, personal corporations, r the limited liability companies, if you cut that a lot, it's going to create 4%, 5% economic growth. and i talk to people for whom this is going to be a benefit, they're like, yeah, on the margin it will help me, they're not all going to go out and hire two dozen people and lead to some boom. >> we've seen a little -- the choppiness is related to this prospect of it not happening even though evan's not painting it -- >> i think it's coincidence, look, the market has not been
4:07 pm
acting as if it needs, truly needs, the tax bill to pass. if you look at the kind of stocks that have been leading and lagging, it's not about all eggs in that basket right now. so i don't necessarily think that, but i do think the fact that the market is wobbly right now at a time when the challenges to a tax cut bill are more evident than the opportunities, perhaps, it is one of these excuses and i think it also represents a market that's come a fairly long way and everyone answered the question, what else is there that's going to kind of get us any further to the upside? so it's a more of an ambiguous situation. i think it's a little more nuanced than to say it's all about the tax bill. >> by the way, joe maybe wants to address this, but the flat yield curve, you know, this divergence between what the bond market is saying and the equity markets, i know we've been talking about this ad news yausm i talked to mike upstairs about it, he looked at me like not again, you're not bringing that up again, evan it's true. you have a very flat yield
4:08 pm
curve. can't have both things -- >> you can't if -- >> you can but you shouldn't have equities trading at these kind of multiples and the bond market -- >> telling yoo ining you maybe f the strike l is within two years. >> right. >> what should stocks do when it's two years until the end of the cycle? >> go ahead, joe. >> kelly, i would add it's been 370 days since we had a 3% decline. it should happen three times a year people are very accustomed you have a lot of kons traconced momentum investments like nvidia going from 30 to 215 in two years. when things get bumpy, that's what's going to hit. it will hit the indexes a lot because they're price weighted these some stocks have run a lt the tax bill, we have 17,000 clients. this is great for thousandaires and billionaires but an executive who works in the big city, this bill is not apparently going to be a decrease it might actually be an increase that's going to create a lot of side effects that are not very
4:09 pm
good for consumers big spenders. >> let's talk about retail for a second, i hear you jcpenney shares soared 14% today after the company reported a bigger than expected climb in same-store sales still, we're down 60% this year for the the stock. guys, what do you make of it >> look, all the department stores this week, i think there was a sigh of relief, kohl's, macy's as well as jcpenney jcpenney traded below $3 a share. it was at historiclows i do think they're showing they can keep costs in line, they're stemming the declines in same-store sales for now being disciplined on inventory i don't foe how much time that buys them, though, or how much patience that buys them from wall street. i feel as if people say, okay, fine, this quarter looks like they'll be able to fight their way through it and play defense for a little while longer. it's hard to draw longer-term conclusions from these results. >> talked about -- >> i would add -- >> these things are value traps. they're value traps. it's very hard to tick a bottom
4:10 pm
in jcpenney, even if the stock goes to $5 and you can quote/unquote almost double your money. >> i would distinguish jcpenney from say, kohl's, though, in a different position, has a different business. >> the interesting thing to me, the way the stock responded to earnings earlier this week which was negatively while it was pushing macy's higher even though kohl's is embracing amazon. >> kohl's bumped up the rest of the -- target was up 2.5%. >> why was walmart at an all-time high today? >> consumer sentiment was okay i think the idea generally is a full-employment economy should be decent for walmart. >> also their online strategy seems to be -- >> staples were up today walmart is a consumer staple. >> go ahead, joe >> kelly, i think walmart is successfully making a transition to compete with amazon its pricing is lower it is becoming more digital. they are going to thrive i actually feel quite good about what walmart is doing compared to jcpenney just because they've gotten a lifeline doesn't mean
4:11 pm
they can survive and that's what you need to differentiate here i think there was a sigh of relief that their real estate is there. they're going to survive for another few quarters but there's no winning strategy. walmart is being rewarded for actually saying we can be amazon that is what disney is trying to do with netflix. it's why they want to buy fox because they can -- if they broaden their platform, they can become a platform and not just a content provider so i think -- >> a lot of activity -- >> big companies making really smart moves. >> yep fighting back against faang. it's actually been a busy week for ipos especially for chinese ones we've had 12 total ipos. three of them are chinese including one today. so far this year, there have been 11 chinese ipos today it was the peer-to-peer lender ppdai i'm not confident on how to pronounce this michael, look, not a huge move here on the close. >> no. >> i just feel like the market, there are so many names looking at alibaba, looking at baidu,
4:12 pm
ten creent. >> the latest -- about the chinese consumption economy, not really about huge platforms that could be global, not about the export sector, not about heavy industry i do feel like that's one of those if you had a broker's cheat sheet, you want to sell a stock to somebody, these guys have a business in chinese education or something else going on in the mainland that's benefiting from a growing middle class. >> chinese solar. >> it's kind of an easy -- also i think encouraging that these companies actually want to raise capital here >> would you be cautious as an invest eve investor, evan >> yeah. i think that's true about the ipo market in general and especially here. i mean, for your average investor out there, you know, you might get lucky, might get something that becomes the next so-and-so. but odds are, you know, you don't want it to turn into an experience a la snap which if you go back to, i was very spectacle at the time.
4:13 pm
>> i recall. >> you basically said for a millenni millennial, take a flyer, so what if they lose half their money. >> i said if they lose half their money, it would be a good learning experience. >> it would. now have hada learning experience now that they lost half their money. >> which is good. >> you only take a loss when you sell. >> joe, we'll give you the final word you have nap or the chinese ipos to pick from what do you invest in? >> why don't we talk about china for a second because it's basically what the u.s. was in the '50s and '60s. they have overtaken us with gdp, the biggest gdp in the world, creating a middle class for the first time ever. the problem is there's not enough equities representing that so it's a crowded trade. they're bringing ipos, maybe some of them fantastic like alibaba and some of them we just don't know and there's not a lot of ways to play the chinese consumer. so if you like that consumer, you can do it with u.s. companies that sell to that market so i would just, again, there are some other ways to play that same market with knowable
4:14 pm
companies, with easy to read balance sheets and income statements you can trust so, again, it is -- >> general motors. >> -- a massive opportunity and multigenerational one. >> joe, thank quyou very much f joining us joe duran. coming up what do ingoscar winning actress nicole kidman -- we're going to talk about what alibaba's moves mean to china and retail coming up. also gop leadership in the house of representatives and the senate have released their separate tax plans there are some similarities and some big differences president trump, abroad in asia, has yet to weigh in. ahead, we'll talk to two tax experts about how the bills may shake out and impact on the market. we want to hear from you, contact the show with your thoughts on twitter, facebook or e-mail we'll adomofoure se yr responses at the end of the show we're back in two. we have a question about your brokerage fees.
4:15 pm
fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. 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.
4:16 pm
4:17 pm
single the day is well under way in china, already setting records. eunice yoon has the latest tally out of shanghai. >> hi, kelly, it's the middle of
4:18 pm
the night here but chinese are still racking up sale of everything from smartphones to tvs to dog food, there's even a chinese company offering up a lifetime supply of the chinese liquor for 11,111, about $1,700 analysts say within the 24-hour period, they expect this number could go as high as $24 billion. now you know the history of this holiday, singles day, started as a day for lonely hearts but in 2009, alibaba transformed it into this massive shopping bonanza. people watch it for alibaba but also to get a sense of what chinese consumers are doing. and alibaba's jack ma believes chinese consumers are going to change the way they shop and so he wants the company to leverage all of its technology, its know how, it's big data, and to integrate it into physical stores that's one of the reasons why he
4:19 pm
invested about $8 billion into mal malls, department stores as well as supermarket chains and the supermarket chain is being held up as an example of what the future of retail can really be here it's sort of like this chinese high-tech version of whole foods. the idea is that chinese consumers go into the grocery store, they scan different products, they get more information about it, and then they could also order online all these different groceries and have it delivered to their homes in 30 minutes or go to the checkout counter at the end of the prose acess and have their e scanned with facial recognition software in order to pay the technology is interesting but what's also interesting is the pricing of it all because alibaba through these physical stores wants to standardize the pricing of online and offline. even though physical stores, as you know, are expensive to run and i asked the pr about that, and he said that this is all a
4:20 pm
long-term investment because they do believe in this new vision guys >> it's quite something. eunice, thank you, again, staying up all night for us. really appreciate it eunice yoon in shanghai. not just single day shoppers that love alibaba, hedge fund managers buying up the stock according to recent filings and on top of that, there isn't a single analyst with a sell rating on the stock. how long can the yeuphoria last? joining us, cnbc contributor and managing director of internet and digital media at suntrust robinson humphrey. stacey, is it euphoria or is alibaba delivering the goods >> they're delivering the goods. now it's single festival shopping day now it includes everybody. it's very different, you know, than a prime day first of all, it's 18 times the size second of all, it's about fun, it's about entertainment whereas prime day, and amazon, is all about just price and
4:21 pm
avoiding the degredating mall. >> why doesn't anybody have a sell rating? >> well, if you look at their growth rate, has been accelerating, if anything. at their very, very large size so with accelerating growth rate, and with profit margins north of 50%, it's really, really hard to argue against it. >> alibaba, though, memorably stumbled a little bit out of the gate after its ipo what's happened that all of a sudden it has this traction now and it's doubled year to date? >> well, i think so a few things happen one, they continue to execute really well on the commerce side the other is they've taken a page out of the amazon playbook, invested heavily in the cloud so they went from nowhere to being the largest player in cloud computing in china and through some accusations and some natural expansion or organic expansi expansion, they're becoming quite a force to reckon with in all of southeast asia. they dramatically expanded
4:22 pm
there. addressable market you know, it's just becoming very hard to compete with them >> so stacey, should we not believe, "the wall street journal" saying singles day as a phenomenon might bei losing a little l bit of steam. is it a stunt to begin with or material for their annual results? >> it's material that's why they changed the focus from strangers day to a wider net here you know, you look at $1 billion was done in the first. so it's very significant for them if you think about china, 18% penetration online because there aren't stores near everybody in china. they've got a 50% market share, and certainly the government's behind them. so good luck to anybody challenging them. >> what about competition within china? i know baidu -- they're all rallying this year for different reasons kind of like faang has been rallying and they're in slightly different niches in the u.s. can amazon compete
4:23 pm
is there anybody who can challenge alibaba's dominance? >> amazon tried and kind of retreated. we'll see can what they do obviously jd is the biggest competition, 30% market share versus the 50% for alibaba amazon's only got about 1% market share so they've really got the lead and, again, they're using these fun, exciting events to get the consumer involved. they're going to have almost 96% engagement on the global shopping festival today. can you imagine those kind of numbers involved >> where do you see alibaba shares trading if the fundamentals you're describing continue to go in their favor? >> we have a buy rating, $210 price target a couple of risks i do see going forward, though, is one, as alibaba expands beyond china, the protect ive mote they benefited from within china, they're not going to have. for instance, as they go into india, amazon is already there competing very aggressively, as they go into western europe,
4:24 pm
maybe eventually into north america, they're going to be hard pressed to compete against amazon and other players the other thing is expectations continue to ramp up. and as they continue to grow, it's going to become harder and harder for them to exceed expectations and to the extent that they continue to very aggressively invest in the business, there is at some point the risk of seeing them maybe meeting expectations as opposed to exceeding them and that's usually when the stock will be hit. >> stacey, we got to go, but if amazon starts -- prime day starts to look more like alibaba is doing, what would that mean, what would it look like? is. >> i think that would be a really smart moving what we need to retail, shopping, is entertainment and fun, not just focus on pricing. >> and shipping. >> and free shipping. >> history of american retail, it always comes down to pricing. >> of course. >> always comes down to price. >> one can dream >> throw a circus in there thank you both the king of comedy is
4:25 pm
getting dethroned. superstar standup louis c.k. hollywood is taking action how they're handling the sordid headlines next. is the bitcoin bubble finally bursting prices taking a big hit over the last 48 hours. that's coming up in today's "takeaway. "closing bell" will be right back ♪ ♪ ♪
4:26 pm
♪ ♪ 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. ameriprise
4:27 pm
[ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. more charges of sexual harassment in the entertainment
4:28 pm
industry media giants are taking action julia boorstin has the latest out of los angeles julia? >> reporter: hey, kelly, the latest in the hollywood harassment fallout, netflix is pulling louis c.k.'s upcoming standup special, louis c.k. responding to allegations in "the new york times" of sexual misconduct saying "these stories are true" going on to say "i've spent my long and lucky career talk bing and saying anything i want i will now step back and take a long time to listen. netflix saying, "the allegations made by several women in today's "new york times" about louis c.k.'s behavior are disturbing unprofessional and inappropriate behavior with female colleagues have led us to decide not to produce a second standup special as had been planned. this is on the heels of kevin spacey facing allegations of sexual assault fired from "house of cards." and also disinvited from an hbo comedy special and in an unprecedented move, edited out of a movie called "all the money in the world" which is scheduled for release on december 22nd
4:29 pm
replacing spacey with christopher plumber. the studio saying, "there are over 800 other actors, writers, artists, craftspeople and crew who work tirelessly and ethically on this film, some for years including one of cinema's master directors it would be a gross injustice to punish all of them for the wrongdoings of one supporting actor in the film. this of course is a massive und undertaking to change the film with just six weeks before it's scheduled to be released back over to you. >> for netflix, a big deal for them, too. i don't know how much -- we don't have the ratings on his comedy specials, but, you know, they're not hesitating to pull the plug >> reporter: yeah, it's interesting, kelly, when you really see these companies doing the calculation and it's not worth it for them to be affiliated with people facing these kinds of allegations and so it's really better for them to cut the cord even if it costs a lot of money i would presume the reshoots for the movie are going to be incredibly expensive
4:30 pm
it may drive more interest in the film for people to see what it look like when you replace a character so close to a release date. >> yeah, i was wondering that, too. julia boorstin. time for a krcnbc krns news update. >> al gore attending u.n. climate talks in germany and says more than 100 businesses in the united states are committed to reducing greenhouse gas emissions and that will maintain the u.s. allegiance to the paris climate accord. under the legal terms of the paris agreement as some of you know, the first day on which the u.s. could actually legally withdraw coincides with the day after the next presidential election in 2020 ivanka trump joined senator susan collins on the stage in maine to talk about tax reform ivanka says the bill is a key to the president's goals of growing the economy and helping the middle class collins favors income tax in
4:31 pm
relief but not ready to back the senate proposal. chicago, a city ordinance that could fine people for texting or talking on their phone while crossing the street. fines would range from $90 to $500 that's a whopper a similar bill went into effect in honolulu last month you know, if it saves lives, priceless, right, kelly? >> look, i know chicago just needs the revenue but i love this i wish everyone would -- i wish they'd adopt this nationally >> it seems like a no brainer. you shouldn't have to tell people to put down their phones while they're crossing a street. >> yeah, but you do. you have is to tell them. >> i want to impose this law in my apartment my daughter is forever bumping into things. >> that, too contessa, thank you. you could raise money that way. let's take a look how we finished the day on wall street. the dow closed lower by 39 points s&p down two both of those indexes snapping their eight-week winning streak. nasdaq up less than a point on the bell so was the russell 2000, remains well below its early october closing high. let's get to other big stories today in our "rapid recap.
4:32 pm
>> what we will no longer do is enter into large agreements that tie our hands, surrender our sovereignty and make meaningful enforcements practically impossible >> state and local deductibility has been in place since 1913 it has been something agreed upon by democrats and republicans throughout once it is gone, you'll never see it again. >> disney shares dipped after missing expectations on both the top and bottom lines the stock then turned positive during disney's earnings call. >> our plan on the disney side is to price this substantially below where netflix is. >> we have a chance to make 20 times the money over the next 15 years. >> au bon pain, it's a powerful strategic acquisition that enables panera to do an even better job in hospitals, universities and transportation centers. >> alibaba's singles day well under way. the company hit sales of $5
4:33 pm
billion in the first 15 minutes. >> things are off to a very rapid start. this year we expect it's going to be much bigger event given that we've got 140,000 brands participating. >> although i guess we're supposed to stop calling it singles day because its -- >> yeah. >> -- for everybody to experience. >> i used to work with mike evans. now i see what he's doing. interesting. >> you going to go join up -- >> i'm not going to china. >> you see the big tank with the crabs? >> i think i'm -- i can get crabs here in chinatown or something like that. let's get to the "takeaway," shall we we begin today with a major setback for uber in the uk rejected uber's argument that the drivers are self-employed so uber will have to treat them as employees entitled to minimum wage and paid time off, after london barred uber all together in september will this damage uber's prospects to go public by 2018, which the ceo yesterday said is its goal. >> i don't know if this one in
4:34 pm
itself will damage the prospe prospects. even some states in the united states have had some kind of friction when it comes to all this i don't know -- it doesn't implode the business model again, there's already the soft ban -- >> endangers the business model some quha some quha what -- >> i'm not the adviser of uber but if i was the adviser to ceo, i would tell him, you know what, be quiet for the next six months, nine months, run the business, don't talk about ipos. >> what's wrong with saying they want to go public by 2019? >> that becomes the story instead of running the business well and profit. it's a distraction it's a distraction and because then everything comes and gets seen in the light of the ipo instead of running the business right now we're having a discussion, is it good for the ipo, bad for the ipo it should be about is it good for the business or -- >> my takeaway from the whole episode with all the drama and turmoil at the top is the business runs itself it's at a point where the app is the app. the drivers are part of the
4:35 pm
network. >> that's why i wish they were public. next, the price of bitcoin, $1 $1,000 off its high the last few days and cash has been surging because cash offers lower transaction fees talking like it considers most initial coin offerings to be securities now and subject to their laws guys, is the crypto bubble popping? >> the nature of bubbles if it is a bubble, seems like it's going to pop dozens of times before it does honestly, what's the right pr e price? >> still feels like we've not hit mania yet. >> it's in the process. >> i'm not a huge fan of the thing. i think as long as there's a market for people to launder money, evade taxes, and want to do transactions outside the purview of the law or sovereign government, there will be a market for that. how you put a price on what that market is, i don't -- >> yeah, that's the ultimate kind of, like, most committed end user arguably, but right now, this price has hit --
4:36 pm
beyond the size of that activity. >> i understand -- >> it's all about building a network. >> as long as you have guys like your friend, bill miller, and you got a lot of wall street guys -- >> he's had an incredible year. >> no, no, they had an incredible year because this is exactly the kind of momentum play he piles into -- >> old argument for why bitcoin -- >> by the way, everybody can give you an argument that's the way all bubbles operate. always an argument behind it always an argument. >> is the amount of implied energy use for basic transaction -- >> that's a good point that's a good point. very high. finally, russian fake news may be manipulating energy markets. facebook, twitter, alphabet's google are giving information to congress according to "bloomb g "bloomberg" in a probe of russian anti-fracking and anti-fossil fuel ads here's my question, if that was happening does that amount to manipulating the -- >> that was my exact question. putting propaganda about a political position that may or not be inferred as bearish -- >> with that, you could say --
4:37 pm
>> maybe they want to get at just the magnitude of the ert efforts to spread misinformation -- >> twitter's latest announcement, going to make it transparent who funded every ad on its page. >> perhaps that's it, but yet, again, i see that still a leap to get to a true market manipulation type charge i mean -- >> yet another reason why i so do not like the world of social media. and what goes on there you know, it's all, you know, you can twitter away, mike santoli, you know, you're a journalist you can twitter away, kelly evans. >> yes i'm not twittering but we want your take on today's "takeaway. message us on twitter, facebook, or e-mail. coming up the ways & mean's committee approving the tax plan senate differing on key issues of the cpoteorra tax cut timing, will congress be able to get any reform done? we're going to discuss those
4:38 pm
possible outcomes next down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it. is. the cloud. the ibm cloud. the cloud that's designed for your data. ai ready. secure to the core. the ibm cloud is the cloud for business. yours. the market.redict but through good times and bad... t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence. ( ♪ )
4:39 pm
whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ )
4:40 pm
the house and senate have each come out with their own tax plans and there are a number of differences including how they handle deductions and raising questions about how to pay for the tax cuts
4:41 pm
investors are following the details closely. could a final bill possibly even pass by the end of the year? joining me maddie depler, and jimmy who's economic policy analyst at the american enterprise institute and cnbc contributor. welcome to you both. >> hey. >> maddie, what do you think for the prospects here, is this bill going to get done, period, and how quickly can it get done. >> hey, i'm excited. if i'd been sitting in this chair three weeks and ago asking me if we were going to see a senate bill, i don't think anyone would have agreed we would see one by today the fact the house ways & means committee was able to pass their bill out of committee yesterday on the same day that the senate released its chairman mark and is going straight ahead, i think really indicates really good momentum moving forward. i think we're still on time to see a bill potentially by the end of the year which is an ambitious time scale but still very much possible >> jimmy, you agree? >> they have some big decisions to make. there's been a lot of delayed decisions. i know secretary mnuchin like
4:42 pm
two seconds ago said he still thinks this thing's going to happen this year they -- let's talk about the senate for a moment. they don't have a bill a bill means it is byrd rule compliant which means it doesn't increase deficits after ten years. what they currently have dramatically increases deficit after ten years so they have to make some decisions. something needs to be made temporary. whether it's the personal side or the business side and that is highly controversial, so until they've made that big choice, this is still more a concept than an actual piece of legislation that can be turned into a law >> maddie, is that fair point? >> listen, that process -- yeah, that process is moving forward >> it is a fair point. >> senate finance committee is different, when they release a market, more of a conceptual document than legalese language. they're scheduled on monday to start taking the ball and running with it and there are a number of hard decisions that have to be made. look quhwhat you're seeing in t house ways & means committee, a pretty diverse group of
4:43 pm
congressmen represented on the committee and they were able to find consensus in their document after marking it up for a week i think you'll see that in the finance marks too. there's an opportunity for amendments, of course, there will be differences, but this is also how the legislative process work you're going to have a different product coming out of the senate than the house and they're going to need to figure out where that is going to fall. >> let me tell you what the legalese, that legalese is are we going to have a 20% rate, are we going have a 25%, are bwe kboeng going to have a 30%, be temporary, is it going to be phased not minor details considering the tax cut is supposed to be the living beating heart of this tax bill and we're not sure what that is. that's a key -- >> no, i disagree with you there. no, i disagree with you there. i think a couple things we do know. >> let me ask you both a question yes or no, quick yes or no will what comes out at the end of the day achieve the objective of juicing the gdp growth rate to 4% or so like they claim it's
4:44 pm
going to be? is it enough to do what they say it's going to do or just end up getting caught in the business cycle and not doing anything >> no, i don't think -- i think you're -- >> i'm not going to argue -- >> go ahead, maddie. >> go ahead. >> i think >> we will certainly -- >> we have a delay go ahead >> jimmy, you go. >> okay. i think we're talking about maybe a quarter of a percentage point. i think you do have some business cycle issues. the fed is going to have a vote. i think maybe 4%, i think if it got anywhere near 3%, i think that would be an incredible achievement. i don't think that's what we're going to see. >> mattie? >> i think what we've seen so far is less than 2% growth we can't be doing any worse, right? i do think that any kind of tax reform coming out of the house and senate is going to juice the economy. getting to 4% would be great we're going to see a corporate income tax rate come down. i think we're going to get to
4:45 pm
20%, something you have consensus on from house, senate and especially from the president. he's given a ton of direction on wanting to get to the 20% rate i think we're going to see 20% i think you'll see a cascading effect of booming economic growth as a result. >> we don't need stimulus. we ne >> we need both. i think if we fee tax reform -- >> no, we don't need stimulus. we need -- we're like ten years into this recovery, near full employment we don't need fiscal stimulus. i think the fed will say the same thing >> i certainly think we need businesses that are competitive in a global economy. right now we're at 35% rate, 10 percentage points higher than the oecd average you can't tell me our businesses are doing the best they can do, they're getting as much profit and as much ability to invest back into their workers here with the business climate that we have right now. both the regulatory environment and the tax code is making it impossible for businesses to compete here and abroad. >> jimmy, last word. >> listen, just don't expect 3%
4:46 pm
and 4% growth out of this. keep your expectations modest and you won't be disappointed. >> all right there's your answer. >> i mean, i agree with jimmy. and by the way, the idea that big u.s. corporations who are right now paying nowhere near 35% -- >> they are. >> no, they're not. >> the domestic-oriented ones are. >> the world beaters are not paying >> the point is the after-tax profit margins have been at historic highs for years when this economy was growing much faster, corporate taxes were at the same rate as they are now. >> all right. >> i'm not sure -- >> we need to grow, too, that's what tax reform can do >> she's still fighting. mattie, thank you very much. jimmy. >> thanks, guys. >> good debate appreciate it. general electric widely underperforming the broader market over the past two years but still paying out $8 billion in dividends per year could that be on the chopping block at the company's investor day on monday? coming up. also ahead, bitcoin had that
4:47 pm
wild week. one "wall street journal" editor, we know him, says the cryptocurrency is about to get even more volatile he'll tell us why tonight on "fast. is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife. your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch.
4:48 pm
help from real traders. only with td ameritrade. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
4:49 pm
well, the dow jones industrial average is rallying in 2017. general electric is not following suit it's down more than 35% this year the company's investor day is monday now ceo john flannery will have his work cut out as he lays out his vision for the future. we'll tell you what to expect right after this
4:50 pm
stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.
4:51 pm
4:52 pm
general electric is holding its investor day monday, when we find out if the company plans to cut its ividend. morgan brennan has a preview >> reporter: that's right, kelly. the biggest question, the dividend is it going to get cut ceo john flannery himself called the cash flow, quote, horrible the expectation increasingly is it will. to put that in perspective, the last time ge cut its dividend was in 2009 during their session. the only other time since 1899, 1939, during the great depression so this would be a big deal. but it may be necessary, with the struggling industrial down
4:53 pm
35% this year, and businesses like its biggest power now waning ge technically what's $2 per share target for 2018 although analysts have disregarded that for months now the current expectation on the street, $1.14 next year. what will comprise the divestitures industrial, lighting it's got a hefty debt load to counter. how much deeper will the cost cuts and layoffs go as well? today reuters reporting layoffs in ge digital tied to the industrial operating system that has been an area of investment in recent years, seen as the next generation for ge a lot on tap for flannery as well as jamie miller the ge aviation ceo and power ceo as well. all of this starts 9:00 a.m. eastern on monday. meantime, shares of ge actually rallied today to close the week higher, although they are still
4:54 pm
down more than 20% since flannery announced this upcoming event back in july, right before he took the helm as ceo, kelly >> all right, morgan, thank you. you have to say for john flannery, he gave a very candid interview with david favor, speaking about the company's challenges should he scrap the challenges and clean the slate? >> i think that's what everybody expects, a clean reset it will almost be a disappointment if they maintain the dividend at this point, because it means they're not tearing it down to build it back up a lot of people depend on the dividend for income, that's a big part of the shareholder base but the stock is down 50%. that 4% dividend yield didn't really help you. >> a lot of -- and morgan's whole discussion is the way wall street looks at ge and i would say if i were ceo, i would focus on the businesses. because i think this is a company that for years and years has been run -- i understand,
4:55 pm
but they've been run for years and years like a financial conglomerate to serve wall street they're very numbers oriented. i would like them to be a little more business oriented than numbers oriented all this feel-good advertising, it's like corporate umbrella advertising, they don't need that >> i don't think that's exactly their main problem the stock is down by a third we'll read some of your mail messages, after this the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.
4:56 pm
4:57 pm
[ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours.
4:58 pm
welcome back it's time now for the "closing bell" mailbag. on disney's standalone streaming service, david tweeted us, do they plan to make money on this or is this another espn? ouch >> that shows no knowledge of the economics. not to be so -- i mean, you know what they make per subscriber for non-espn cable networks? a couple of dollars for a set of eyeballs they have the factory, a lot of it is incremental. >> what can they charge? how low? >> six bucks or four bucks or something like that. it's really mostly a family entertainment package. plus you get something for espn.
4:59 pm
i think they can make it work. >> santoli is the target market. >> colin tweeted, it doesn't take much for bitcoin to rise or fall it's volatile not a bubble misunderstanding persists. >> he's a true believer. he's the old, you don't get it everybody who says to you about bitcoin, it's like, no, you don't get it, you don't understand blockchain, it's like the tulip bubble in holland, the netherlands, years ago, they didn't get it until they got it. >> the revision on that is it wasn't really a bubble it was a weird stray, you know, few bulb options >> a few crazy flower people >> this is too much for me finally, william e-mails, also liked the clark kent look with the glasses, hope you didn't change because of any negative comments, you looked very professional >> is that a compliment for you? >> i guess so. >> i didn't see the clark kent glasses. >> i almost wore them today.
5:00 pm
you guys said i looked like rick perry. >> i don't know. you could come up with somebody a little closer than clark kent. >> i take that as a compliment, kind of like you and the "mad men" guy >> we'll have to talk about that one later. >> thank you, guys have a wonderful weekend that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," general electric's moment of truth coming next week, an investor meeting on monday. we'll tell you why the worst is over a biotech beat down, nearing correction territory and later, bitcoin's wild ride in search for record highs but down


info Stream Only

Uploaded by TV Archive on