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tv   Street Signs  CNBC  October 31, 2014 2:00pm-3:01pm EDT

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6.75%. microchip technology up and analogue devices up 5.3%. >> it was really a tale of two markets in the month of october. i think it was an object lesson in that panic doesn't pay. >> it never pays. >> if you had gotten out on the 15th you would have missed a 10% rally. >> "street signs" begins now. main street, it's about time. gas prices down, incomes across america finally starting to rise and your 401 k is probably at a record high today. it is a good news halloween edition of "street signs." >> happy halloween. take a look here on the wall, these stats from the october bottom on the 15th. you have the dow here. it has gained by 9%. the s&p behind me up by 10%. nasdaq 10012% and the russell
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2000 up 12% from bottom to top which shows the dangers of panic selling. i want to get to bob at the nyse. you think maybe october turning out to be a pretty decent month november might even be down. what's your argument? >> i say this just to be argumentive. october usually a weak month turns out to be pretty good. six months gain that didn't work either. we are up nicely from may all the way through october. i'm just being a little bit of a contraryan here. i am by myself on this. pretty much steady as she goes. we are off the highs but not much. very, very broad rallies here. take a look at what is happening. we have a new high on the dow. nice advanced decline line. 7 to 3 advancing to declining stocks. new highs about 25% of the s&p
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500 with new highs. it is a broad rally. five of the ten sectors in the s&p 500 are up more than 1%. that is really nice. the only lagger is utilities. everything else has a nice move on the upside. elsewhere here technicians are rejoicing, reverse v we went all the way down to about 1820 and then all the way back to where we were a short while ago. next week i know there is elections. janet yellen is meeting with president obama on monday. i would love to hear what that conversation is about. maybe we will get a little bit of a highlight sometime. >> love to be a fly on the wall. thank you very much bob pisani. let's send it to rick santelli in chicago. how have bonds performed this historic week that marked the end of qe and this month. >> i think on the qe timeline the 15th was probably some of the culmination of some of that nervousness. we can argue about how the markets are looking at qe.
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i personally think that 0 interest rate policy in the very large balance sheet remains so ongoing qe purchases need to be made up by somebody. we understand that maybe the banks will take the place of the federal reserve because treasuries get treated very special in terms of capital and management and tier paper that banks are required to hold. i think rates are up five basis points on the week, about the highest yield close in several weeks and definitely when i look at what is going on, the bank of japan by 270 billion of their own which their ten year is at 45 basis points and then another 143 billion of foreign equities was talked of buying, that explains a lot of today's move anyway. >> thank you very much. it has been a pretty good october for both wall street and for main street right now. let's walk through four pieces of good news that we have seen
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happen in a month that certainly has its highs and lows. number one, stocks soaring to new highs again today. number two, gas prices continue to fall. number three, the u.s. dollar has been holding strong and getting stronger and believe it or not that does tend to be good news for the stock market and the fourth piece is the biggest piece of all. that is one thing that main street has not seen in a long time, incomes across america saw their biggest gain in six years last quarter. gas down, incomes up, stocks up and the dollar up, four pieces of good news for you. >> how do you play all of these market treats? let's bring in our guests, chief equity strategist at wells fargo and managing director and equity strategist with miller tailback. john, are you finding more tricks than treats? >> i think it is good. i try never to get enthusiastic or scared.
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i think the pressures that pushed the market up are still in place. the fed, the earnings, valuations that are neutral, everything in place. >> what is the biggest risk? i love saying good news to our viewers. there are always things out there you need to be mindful of. >> i think potential is what happens to earnings. next year's number has been coming down a little bit. that is not unusual. this is october. i think it is important to keep an eye on earnings. so far they are good. so far that supports what the fed is doing. if it really turns a bit more dicy then we have issues. i don't predict those things. i let tomorrow worry about itself. >> i understand there are things that do make you nervous in the market. one of them is volume. you have been on "street signs" talking about this as an indication of things. >> it is always a concern about i don't worry about the volume compared to several years ago. i compare to more recently when we get big up moves.
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the volume has been quite a bit more on the big down moves than we have had on up moves. that is a bit of a concern. i am a little more concerned about what is going on with some of the key leadership indicators in the last for all of this year. europe and the german market has been a great indicator for u.s. stocks. they have been lagging the last few weeks. the high yield market has seen a big bounce but still hasn't retraced anywhere near the u.s. stock market. the high yield market is measured by the high yield etf. it is down in the last week. this has been a fabulous rally and a v-shaped rally. there are things to be concerned about. >> the stock market leads the economy. i know the stock market is at a record high. now the economy appears to be catching up. the stock market, the dow up 4% year to date. do you believe the dow has another leg up to go on this new
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batch of good news? or has this already been priced in? >> i can't say that. i tend to think that there is still pressure. what happens with the economy and the market is the fed pushes money towards the economy and hits our market first. that is not going to stop. i think we are not at high valuation. that will not stop it either. we still have witnessed tremendous skepticism. i can't predict it on a day to day basis. it seems like it seemed a few months ago or years ago to me. >> it feels like the central banks around the world are playing a relay race. in the same week you get the fed sort of signing off on qe you got the surprise announcement from the boj, one of the big reasons why we are rallying today. to what degree we will continue to see big moves in the markets on the back of whatever central banks are doing or saying? >> i totally agree with that.
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i don't think it is a coincidence that we got the first big crack -- over the -- qe has been tapered off all summer long. people believe that the ecb was going to step in. the first crack came when drahgi said we might not do whatever it takes and then reiterated mid september and got hit again. when he reiterated a third time the market got clobbered. that is no coincidence and then bull rd came in talking about extending qe 3 and the market rallied. today it takes off because of the bank of japan. of course, we have seen that when qe started the markets rallied and when they ended they sold off. same when doj came out in 2012 with their big stimulus program. that rally. all of these things are very, very important to what the market has been doing. the market has been rallying -- the economy and earnings have been moving up slowly and
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steadily but the market has been moving up faster because of the qe. we will continue, i think, to really follow these plans and the words that come out of these central banks. >> thank you very much. we have a nice rally continuing on our hands with the dow now up 162 points. what are some of the things you have to be worried about? big stats in october and what was a wild month coming your way. first we are playing the gasoline game show. what do you think is cheaper? a gallon of gas, a gallon of milk or a gallon of water? you could be surprised by the results. more on the gold slide today. we are digging in on what is happening with gold, one of the biggest declines we have seen in a while for gold. "street signs" returns right after the break. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise.
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and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves.
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gasoline prices continue to -- and you will please excuse this -- tank. many of you are paying well under $3 a gallon at the pump. >> has the price of gas fallen below the average price of these every day items? sharon epperson joins us now. >> gas prices continue to fall as we head into the colder months. the national average price of gasoline today is right at $3 a gallon according to aaa and is expected to fall below that mark by morning. 60% of the station s around the
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country are selling gas below the mark but drivers in south carolina are paying $2.64 a gallon. aaa estimates that these lower prices are helping consumers save at least $250 million a day on gas compared to prices in the early summer. that is about $10 to $20 less for every fill up. how low are gas prices compared to these every day items. >> i need to correct you because i paid $2.63 a gallon in central new jersey. you better get on it. it is the only thing that new jersey is cheapest for. >> probably true. certainly not milk. how much do you think a gallon of milk costs today? >> $3.75. >> it is higher than that. organic is probably about $8. probably about $6. >> $3.73. how much shopping do you do? >> i do all the shopping in my
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family. >> i shop in new york city. >> i lived in new york, a gallon of milk is not $6. >> you lived in new york about ten years ago. >> you have to comparison shop. even in the city. >> we talked about gasoline. we know that is about the $3 a gallon mark. i can't change the water. what do you think a gallon of evian would cost? >> those are liter gallons. maybe $3 a bottle so -- >> it is about $4.50 for a gallon there. >> who is buying a gallon of evian? >> i drink out of the sink and the toilet. >> so does your dog. >> because the prices are going
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up there is some relief for the consumer at the pump they are paying more for food. we are about to get a new season for health care premiums. those are going up. it may not be as much relief as a lot of consumers need but how low could prices go for the national average $2.90 a gallon is a reasonable bottom. >> people in california tweeting saying i'm still paying $4. they are so annoyed. i invite everybody to come to new jersey. it is a wonderland. >> cross that bridge if you are in new york and do it. >> i want somebody in new york city right now go right now and take a picture of a gallon of milk and tweet us how much it costs. >> do. >> i shop at trader joe's. i buy about a half of that and it is like nearly $4. i'm sorry.
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things are always more expensive. >> at least you are trying to cut cost. >> i do like trader joe's. >> super soy milk with a diamond in the bottom? >> you have to go organic. get with the picture. >> organic milk might make you tall. >> just tweet me if you need help with the shopping. >> thank you. let's bring in andy. we brought you on because you said earlier this week that we could see $3 gas by halloween. we are here. you were right. what is your prediction for gasoline prices by thanksgiving? >> i think we will continue going down and by thanksgiving i'm saying $2.80 a gallon. you look at gasoline futures today. they are getting hit hard. another 4 cents a gallon. that is passed on to the consumer over the next few weeks. >> we are already paying a lot less than that in certain parts of the country. do we know where the problem spots are? i know alaska is extremely expensive and parts of california because of taxes are expensive.
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you are probably paying less than $3 a gallon already. >> if you shop around the houston area you can do under $2.40 a gallon. if you go into the center of houston it is as high as $3.49. you have to shop around. i would say the problem spots really are the highest gasoline prices in the u.s. continue to be hawaii and alaska but even in california they are seeing relief and those prices are coming down. >> how much further do we go down and when and how does it all end? >> well, we are going to continue to decline another 20 cents a gallon during the course of november. through the balance of the winter into early 2015 gas prices will stabilize. the biggest concern i have is with the lower crude oil prices the market will get surprised if the saudis do decide to cut production. >> isn't that a given right now? the saudis cannot sit back and do nothing? >> well, i think the market is actually split. there is a fair amount of people
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who think the saudis may sit back and do nothing so that they share the pain, if you will, with their neighbors and the other members of opec. >> will it matter if they cut back production? are the saudis not in control of the oil market anymore? >> opec has lost their influence. since the market thinks opec is going to do nothing i think if saudis cut production i think that is a surprise to the market to the upside. that is what we have to watch out for. >> thank you for joining us today. >> thank you for having me. >> so let's face it. very few things we can all agree on. $3 gasoline is a huge win for pretty much everybody. lower gas prices are pretty much good for everybody in america maybe with the exception of the refiners. no group as important as small business owners who could use a break. >> kate rogers is here with that story. >> the hope here is that people may not mind getting into their cars and driving to a local
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store this holiday season to shop rather than going online to do holiday shopping. smaller companies continue to lose market share to the giants of e-commerce. lowered prices can be another win here because energy costs are such a huge issue for them. they usually rank in the top three expenses that small businesses have to deal with according to the national federation of independent businesses. if they can save money at the pump that means they can also save cash potentially reinvest that money back into the business. now for the down side, sales projections for small companies are actually lower this year so they are telling me private retailers that have $5 million and under in sales only see growth about 4.5% this year down from 5.5% from 2013. we have a ray of sunshine for small biz here. small business saturday sales the day after black friday, those have been trending up. they were at 5.7 billion last year. the day after thanksgiving, that
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is up from 5.5 billion the year before. hopefully consumers will get out and shop small that day and get a boost from lower gas prices. >> certainly hope so. if politics comes up at a halloween party tonight don't bring politics up at a halloween party don't be scared because we will show you what you need to know to look smart about the three or four biggest races out there. frap as at your finger tips. why starbucks latest move is giving a jolt. herb greenberg will join us with the latest move. they're coming. what do i do? you need to catch the 4:10 huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me?
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it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. welcome back to cnbc. i'm michelle caruso-cabrera. virgin galactic reporting unspecified problem during testing of flight. they tweeted out that the flight of space ship two has experienced an in flight anomaly. the tweet said there would be more information forthcoming. the associated press reports the fire department is headed to a
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location and california highway patrol officer saying the agency is responding to a report of a crash in the area. this is a spaceship under development in the desert in the northeast of los angeles. normally two people are aboard though we don't know that to be the case on this particular flight. there is a disclaimer here. nbc universal has established a multi platform partnership to track the development of space ship two and televise the space flight. virgin galactic reporting an unspecified problem during a test flight of its space ship two tourism rocket and there are authorities headed to what is reported to be a crash site in the desert. >> thank you very much for the breaking news on what we know so
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far. massachusetts voters head to the polls on tuesday to decide whether or not to move forward with casino gambling and if public opinion polls are accurate they will. good news for wynn but mad news for those who ruled the market next door in connecticut. >> reporter: we have to say they are not so happy but they think they may be able to get the upperhand. massachusetts approved casino gaming three years ago and companies competed heavily for the regional licenses in this lovely spot behind me steve wynn plans to pour in $1.6 billion to create a state-of-the-art destination. not everyone is thrilled with gambling coming in and opponents put in a repeal. if it succeeds it would benefit foxwoods which gets at least 25%. fox woods trying to recover from
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the recession and growing competition in the northeast. fox woods is not counting on an appeal. they say they are investing in new retail and hoping to beat steve wynn in his own game. >> steve wynn is a brilliant guy and i admire all he has been able to do in the gaming industry. you see the likes of wynn and mgm and to a lesser degree as they have been focused on destination markets, not necessarily locals market. and throughout the new england states it's more of a locals market and very, very focused on drive in patrons less than the fly in patrons as you see in vegas. so we have a very extensive database of all of the patrons within the new england region and have been building that database for decades. we think we have the advantage of knowing who the patrons are and what they want and knowing their likes and dislikes and getting the right offers
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tailored to them. >> reporter: fox woods compeded in massachusetts and lost. public opinion polls suggest the repeal will fail on tuesday. if that's the case the big boys from vegas will be moving in. back to you. >> thank you very much. the count down to the mid term elections is on just four more days to go. there are a number of races out there but there are few that may be more important to the overall picture than others. former senior aid and white house political director under president george w. bush and co host of msnbc's the cycle. i heard that key states were kansas, iowa and alaska. you think no there are other states that might be more important. what are they? >> what i'm going to look for first on election night is what is going on in new hampshire. polls close in new hampshire at 7:00 which is early. polls close before most other states are finished voting.
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if scott brown who is challenging the incumbent democrat is successful that will foreshadow a very big republican night. if he is not successful i think you will see many races, republicans and democrats are just slugging it out. i will look at kansas because the incumbent center there republican pat roberts is in a really tough battle with independent dave orman. and if he loses then republicans have to pick up a net seven seats to take control of the u.s. senate. that is a harder lift. >> do you agree new hampshire is a key or are there other states you guys cycle? >> i think it is true that if scott brown is in good shape or picking up the seat it is not a good sign auto new hampshire is not always a bell weather. i think the republicans obviously advantage is they are on offense and a lot of these states favor them to begin with.
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having said that what is weird and interesting about this mid term is how many red states are even in play. it is not supposed to be this close in kansas or in georgia. these are supposed to be easy pick ups. arkansas, though, a place where republicans might take it back. we are seeing a battle in the south where actually you have voters who are mad enough about the economy and not really responding to that obamacare attack as much anymore which is why these races are close. look for republicans to pick up several seats. >> what do you think the turnout will look like compared to past mid terms and how do you think it might impact the outcome? >> i think you see lower turnout. we have seen lower turnout during the primary season. part of it is neither party is particularly popular. and voters are pretty disgusted with politics and we see this in the trend of rising number of people who are registering as independents.
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so with a lower turnout it is likely to be older. it is likely to be whiter and it is likely to mean that republicans do, in fact, do a lot better at the polls. that's a great thing for republicans this tuesday. i think longer term republicans are going to need to do much better with minority voters if they have a chance of winning 2016. >> the only thing i'm sure of is i'm sure of nothing. these polls are all within the margin of error. they swing wildly. how much do we put our faith in them? >> people think polls have a margin of error and are up and down. the other problem is polls are always a prediction of the turnout universe as we were discussing that universe is up for a question. will it be older? what about the early vote which continues to be a way more people are turning out. republicans catching up mobilization on that. i was reporting just this week i was at the churches sunday and at the polls monday.
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they are having a lot more early vote. republicans are saying that used to be the democrats thing. we are getting them out on week days. it is not just souls to the polls. the way we vote in america is changing. then you add to that voter suppressive tactics. >> we have to leave it there because we have more breaking news on virgin galactic. michelle caruso-cabrera, what do we know now? >> virgin galactic's partner scaled composite conducted a power test flight of space ship two earlier today. during the test the vehicle suffered a serious anomaly resulting in the loss of the vehicle. the white knight two landed safely suggesting there were two flights that we are talking about. our first concern says the statement is the status of the pilots which is unknown at this time. we will work closely with
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relevant authorities to determine the cause of this accident and provide updates as soon as we are able to do so. so one vehicle suffering a serious anomaly resultinge loss of the vehicle and the status of the pilots unknown at this time on this virgin galactic test flight of space ship two earlier. >> thank you very much. >> these are manned space craft so thoughts and prayers, best wishes to the pilots if they were still on board. gold doing something it has not done in four years. we will tell you what that is coming up. ♪ (train horn)
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if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. i'm just looking over the company bills.up? imagine what they can do for yours. is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business,
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drive accelerating revenue growth for what they call best of breed vendors. the target increased to 44. >> two stocks in one. >> dueling calls for cody and avon products. upgraded from buy to hold. avon downgraded from hold to buy. and downgraded. avon down 40% year to date. i believe it was the worst performer in the s&p 500 year to date or if not the it is one of them. >> atmel getting upgraded. >> from outperform. semi conductor company could get bought and increase target so about 20% upside on atmel. >> we have a truck maker name
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paccar getting upgrade. >> stocks reacting. ubs sees growth in truck demand beyond next year. target boosted to 75 from 63. stock is at 65. 15% more upside. >> we are not going to do the last one. we have serious breaking news. get back to the breaking news desk. michelle caruso-cabrera, what is the latest. >> virgin galactic's space ship two. we are getting a source saying there are two debris fields, two large pieces of debris and two parachutes deployed. virgin galactic reports there has been an anomaly with a flight with their partner scale composites of space ship two earlier today. the carrier flight landed safely. the status of the pilots of space ship two are unknown at this point. once again the sheriff's office,
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a source telling us two debris fields and two large pieces of debris and two parachutes deployed. as we get more information we will let you know. the news is breaking fast and furious on this. >> let's hope that the parachutes deployed could be a good sign for the pilots but at this point we just don't know. let's go back to the markets and talk some numbers. our daily look at a stock from a fundamental and technical perspective. today is not a stock. it is a lump of yellow metal. it is gold slumping to lowest since 2010 quite a weak week for this precious metal. todd gordon on the technicals. bobby achino on the fundamentals. great to have you with us. todd, do we go lower from here and where does it end? >> yes, we do. gold is in trouble. gold has broken down pretty significantly. if you take a look at what has happened to the u.s. dollar over the last 24 hours a massive move to the top side. that is going to push gold lower. we need to look at the rally
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that we have seen in gold since about 2001 down at $250 an ounce. a very typical normal pullback will be about the 50% retracement which is about $700 an ounce. that will coincide with the old 2008 level circled in the chart. going to the next chart actually we have a very significant break down over the last year and a half at about 1185. this becomes resistant. i look to be short with clients against that level. dollar rallies. we saw what happened in the yen up almost 2.75% overnight. massive move in currencies. the yen will trade in the same direction of gold. >> so let's get the fundamental view on gold. what do you think? is there any reason at all to own it? >> i think there isn't. i think the gold longs are in a bit of a pickle. i think one of the situations you have from the fundamental side is there is still increased buying of the metal out of
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india. hedge funds at the last ticker increased ownership of gold by about 45%. i suspect when we get the numbers in that will be haircut a little bit. they probably will have covered positions in the particular move down. what we are seeing as it moved down to at least about 1122. we put out a short signal on october 27. we said we would start scaling out of it. it means my 1103 are reached as targets. fundamentally gold is weak, still purchasing the metal. nobody purchasing the metal is getting a haircut from the futures price at all. they are buying higher and those selling are selling futures. it is weak fundamentally, as well. >> thank you very much. enjoy your weekend. be sure to check out the online edition of "talking numbers" in partnership with yahoo finance. we will get more on the breaking news, virgin galactic
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spaceship. crash sites have been spotted. parachutes have been spotted. let's hope for the best for the pilots. "street signs" will be right back. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are, tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 call 1-877-670-3357.
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welcome back to "street signs." let's get back to michelle caruso-cabrera at the breaking news desk with more on the virgin galactic spaceship. >> we want to bring you up to date. there will be a news conference at the space port headquarters at 5:00 p.m. east coast time. virgin galactic putting out a statement that the company scaled partners showing an example. this is an animation, not the video of the plane. there were two aircraft involved. we are told that a powered test flight of space ship to conducted earlier suffered a serious anomaly resulting in the
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loss of the vehicle spaceship 2. the white knight carrier landed safely. you have a carrier aircraft to get the flight into the air. the first concern is the status of the pilots which is unknown at this time. they are working with relevant authorities to determine the cause of the accident and provide updates. we expect a news conference 5:00 eastern time. the source at the sheriff's office where it appears the crash occurred says there are two debris fields, two large pieces of debris, two parachutes deployed and that it is at the red rock roads area. this is of particular interest because we know we are concerned about the loss of life, number one. it is a prominent company that we talk about a lot on cnbc. and the unmanned rocket exploding off the coast of
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virginia earlier this week highlighting the risks of space flight and rocket flight. the latest that we have is that we expect to hear from the company about exactly what happened. >> if we go into it a little bit more and i thought it was excellent summation, white knight two is the launch plane. it carries spaceship two on its back. they use that as part of the momentum and then they shoot spaceship two off into that. white knight not a support craft, much more than that. it has landed safely. spaceship two would take off and then would go on and land. remember the first commercial flights for spaceship two were supposed to be this year. virgin galactic pushed them back into early 2015. richard branson telling the "today" show in september that he still planned to be on the
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first commercial flights out of new mexico. she said earlyish. >> i want to let you know we have reached out to the owner of scaled composite. we reached out to them. they have no comment at this time. perhaps we will get back when they have more information. >> scaled composites is run by r legendary group of brothers. they hold numerous records. they are legendary in the community. now let's hope for the best for the pilots. richard branson we wait to hear from him because not only does he back this but he planned to be on the first commercial trip in early 2015. >> i understand more than 700 customers paid as much as
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$250,000 to ride on that rocket plane. you eluded to this moments ago and it has been a terrible week as far as space travel is concerned. >> i think that somebody tweeted this earlier this week and i thought it was poignant. space is hard. it is really hard. it is dangerous and i believe we do have live video from the scene. i don't know what we are looking at but let's go out. >> so obviously what we are seeing is part of a broken up spaceship 2 in the desert. that is actually right near ransburg, california. it is east of bakersfield, the high desert about half way between los angeles. we are seeing large parts of what would be spaceship two. we know the launch platform did land thankfully safely. this is an area out edwards air force base if you seen the movie "the right stuff."
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it is where they conduct numerous types of these events because there is no population. there is no town around there to jeopardize. you can see some of the workers walking towards the debris. >> were you jumping in there? >> i wanted to highlight we were seeing emergency crews in the area and different parts of the wreckage. we were told by the sheriff's office that there were definitely two debris fields and that may be what we are seeing from the helicopter pilot as they zoom in on various areas. we know there were two large pieces of debris and also the two parachutes were deployed, as well. the company saying the status of the pilots is still unknown at this time and that they have definitely lost the vehicle spaceship 2. >> and you go back in time and look we are reminded of the dangers and risks of space flight. this is a hard game. it's an expensive game. it is a potentially deadly game.
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you have guys 40 something years ago who died on the platform when nasa was testing out rockets. we have taken this stuff for granted. we talk about commercial space flight and how we have been so successful. this could be a terrible exactl this is -- this is a dangerous, high performance game and let's hope for the best for the two pilots on spaceship 2. >> more civilians are involved, right? space flight in america was the domain of nasa but now we have a privatization model hoped to become far less expensive to go into space, push the science forward and years and years ago elon musk, just finished selling paypal and he said at the time, well, there are all these problems in the world and i think one of them is it's expensive to go into space. $10,000 per pound. what it was $1,000 or $200 per pound? that was what space x was all
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about. and they had trouble and issues with rockets. it's extremely difficult. once again, this was more about more and more civilians getting involved with space flight and rockets compared to what we have seen in the past in the united states. >> let's not forget, too, a well-known mogul involved in space flight and keeps it down low. jeff bezos of he had a commercial or non-governmental space operation out in the west texas desert. >> we have new news from the california highway patrol spokesman celling cnbc that, quote, looks like we have one confirmed fatalities and one injury. landed in the middle of the desert. debris on a rose, an isolated desert scene. little to no population in the area. but the california highway patrol confirming to cnbc there is one confirmed fatality in the crash from virgin islands
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galactic in the mohave desert. >> okay. that's tragic news you don't want to hear about. one pilot. there's two. michelle reported parachutes. let's hope for the best for the second pilot and unconfirmed report of where that second pilot might be. and again, white knight 2, the launch platform ship did land safely. folks, some sad news out in the deserts of california. virgin galactic spaceship 2 suffered an in-flight anomaly. it caused the crash in the desert of california of spaceship 2. one pilot as michelle said, unfortunately, confirmed dead. >> okay. well, we're going to take a very quick break and we also have a rally going on on our hands right now. the dow up by 150 points. that is a gain of about .8%. we'll continue to watch the markets and this developing story, as well. we'll be back. what if there was a credit card
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welcome back to cnbc, everybody. breaking news. we are covering the markets. right there on the screen. the dow jones industrial average up. america's eyes tuned to california desert, mohave desert. spaceship 2 did suffer some kind of tragic anomaly. that's their word. in flight. did crash into the desert. there were two pilots on board. one is confirmed dead. the status of the other is not yet known. we are looking at scenes of the test flights. it was scheduled to launch in early 2015. richard branson of virgin famed scheduled to be the first commercial passengers of that flight. we have not heard from richard branson yet. a tragic story in the high desert of california.
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>> it's always been quite a difficult week for space travel. just to remind everybody, of course, there was the unmanned fortunately unmanned u.s. supply rocket that exploded after liftoff earlier on this week. and i do believe that the russian maker of the engine used has come out they deny that the product was at fault and probably due to later modification in the united states and once again when you've got two accidents of this kind in the same week it's a reminder of the dangers of the travel. >> we'll have much more and a 5:00 p.m. eastern press conference and thanks to the men and women that make our life better. it is hard, dangerous. we forget that. these people are brave and honored. it is incredibly difficult work. >> "closing bell" starting now.
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the 4:51 is leaving at 4:51. ♪ they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. hi, everybody. welcome to "the closing bell" at new york stock exchange. i'm kelly evans on this halloween friday. bill is doing a simon hobbs today. >> yes. i'm simon hobbs in for bill griffith playing hookey. this market keeps on rallying. dow and s&p 500 on track to close out at 3-month record highs. >> we'll get to the news on the virgin


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