Transcripts For CNBC Closing Bell 20170913

Would you spend 1,000 bucks on a phone apples iphone 10 has facial recognition, and well discuss whether the high price tag is worth it and sorry doesnt always cut it shares of ek we fax sinking again today. Sinking again toq todau sinking again todai sinking again todaf sinking again todaa sinking again todax sinking again toda sinking again today something we will ponder coming up later here. But we begin today in washington and the latest push for tax reform kayla touche has a timeline coming from House Speaker paul ryan today bill, well get that in just about ten days thats what texas congressman kevin brady who chairs one of the key committees writing the plan told his colleagues earlier this morning House Speaker paul ryan said that that framework will reflect the broad areas of agreement where the white house, the senate, and the house have all come together, but that any efforts to reach a broader consensus among all republican lawmakers would happen after that this is really the consensus of the tax writers themselves. So that were working on the same page. The whole point of all of this is, the house, the senate, and the white house, are starting from the same page and the same outline, and then the tax writers will take it from there on the details for health care though youll remember the devil was in the details. Plan a is still to use a vehicle for tax reform that only requires republican votes, but i asked whether they would need a bipartisan effort, if those republican votes fall through. Will there be democratic votes needed in the house . I would love to have the democrats supporting and working with us in a constructive way on tax reform were going to do it no matter what despite the insistence that itll be a gopled effort, the white house continues its reach across the aisle, perhaps best case, guys, supplemental votes on top of republicans. Worst case, backup scenario, an insurance policy should those votes fall through kelly. Bill all right kayla, thank you for now for more on the tax reform timetab timetable, were joined by terry haines good to have you back. Thanks, kelly, good to be here, thank you very much. How significant are todays developments the flurry of meetings, this talk of maybe some bipartisanship i mean, what do you think this is all pointing towards . Well, you know, this is, in many ways, kelly, this is a throwback. This is politics 101 you reach across the aisle, you try to gain as much bipartisanship as you possibly can as the president , and if you cant get that bipartisanship, well then the Minority Party is responsible for pulling back youre not responsible for it. Youre trying to be as inclusive as possible. So yeah, this is, this is a very old playbook thats being used by the current president so, this will go on for quite a while. The administration is clearly decided that what its interested in doing is reaching across the aisle as much as possible on as many issues as possible and where they can get bipartisan agreement which they mostly need by the way on just about every issue, except tax reform because they can do that on budget pros, they maybe can get that they maybe have a better chance of getting it. So, you know, good for them. But terry, how, how willing do you think republican leaders, especially in the house, will be to welcome democrats into this deliberation process and tax reform when to this point, they havent included them to any great degree bill, the way i would answer that is that it is simply this, the white house and Congressional Republican leaders are all on the same page in wanting aggressive tax reform with a much lower corporate top rate and changes to the individual rate as well, and retroactivity to january 1, 2017, i think thats weve been calling that a long time and something secretary mnuchins been talking about recently if democrats want to join in that effort, republicans will certainly welcome that if they dont, they can still use budget process to pass it. I think thats how theyll look at it. I still wonder, terry, you know, where youd put the odds of this happening. As others have pointed out, regardless what have they say, there still is no plan, and weve seen them go down this road before, yes, its going to happen altogether on this, making a big push, and then buckis. I would disagree that theres not a plan or that at least the broad parameters of what theyre agreeing to is not known what theyre talking about is an aggressively lower top rate. President always said he wants 15 as was pointed out on air a few minutes ago. Secretary mnuchin is really talking about 20 . Certainly if you do the math, youre looking at 20 or the low 20s. Youre looking at the individual changes along the lines i suggest, and youre looking at retroactivity. You know, beyond that, the details as was said by speaking ryan this morning, will be up to the tax writers. Those details being, you know, how do you pay for it and exactly, you know, whats the legislative language but bottom line, if youve got a situation where there is political will to do something and there is the legislative process available to do something, youre likely to have something happen and thats where weve been and where we continue to be. Were less than 30 seconds to this video tape of the president in his meeting with the bipartisan members of the house there, but are you hopeful that we get something as a result of the bipartisanship or is it just going to be left to the republicans to get this done very quickly, kerry . Hope is beyond me certainly the republicans have the ability to do it, and if not, i think therell be some democrats too. Well, lets listen in, heres the president. Group of democrats and republican lawmakers for the white house more and more were trying to work things out together, thats a positive thing. And its good for the republicans and good for the democrats. And this group knows that very well whether we can do the incredible things that were doing and working in a bipartisan faction, obviously would be a positive and i think something, tom, that we all feel good about i want to thank tom reid, hes been a friend of mine for a long time, and he was there right at the beginning when it wasnt very fashionable, right . And i really appreciate it and josh gothymer for helping to organize this very important gathering. I think its really, the whole concept of what were trying to do is very, very important inspired by the example of our own citizens, we should be able to come together to make government work for the people thats why i was elected, thats why i ran. And to provide jobs and opportunity to millions of struggling families. This includes tax reform that is pro jobs, pro growth, pro family, and pro americans. Very simple. Its all pro american. We are four principles for tax reform, make the tax code simple and fair cut taxes substantially. Itll be the largest tax decrease in the history of our country. For the middle class encourage companies to hire and grow in america and by doing that, were going to have to reduce the taxes for companies right now were at 35 , and really much higher when you weigh the state taxes in, and china is at 15 . Then we wonder why are we not competing well against china so theyre at 15 and were at 35 plus. And that doesnt work. And bring back trillions of dollars. We have trillions of dollars overseas that well bring back and well bring them back quickly. So this is money that josh and tom and everybody in this room can tell you, everybodys agreed to bring it back for years, but it never gets done were putting it down as part of our tax proposal another bipartisan project that is urgently needed is infrastructure, and infrastructure investment. For decades now, washington has allowed our infrastructure to fall into a state of total decay and disrepair. And its time now to build new roads, new bridges, airports, tunnels, highways, and railways all across our great land. When we set aside our differences, and its amazing sometimes how little our differences are. We put our country and we put the citizens of our country first. And thats what this is all about. So we want to have a great new tax cut and tax reform simplify kags and massive cuts and we want to get our country working again and competing again worldwide, and therell be nothing that can stop us on top of that, well billion discussing probably a little bit of health care because i know some informations come to light. So well be discussing because ultimately, when we have some democrats, i will speak, i think i can speak for the republicans generally, but we do want to do something very, very beforefully with respect to obamacare. It has not worked. The rates are going through the roof the numbers that you look at, no matter where you go, no matter where you look, health care is failing in our country and were going to get a change and were going to get a change fast infrastructure well be talking about, and well probably also be talking about daca. Because we dont want to forget daca and its already been a week and a half, and people dont talk about it as much we want to see if we can do something with regard to immigration, with regard to the 800,000 people that are now young people, theyre not children anymore, they were children, now theyre young people we to want see if we can do something in a bipartisan fashion so that we can solve the daca problem and other immigration problems so well be discussing that today. And then tonight, i am having dinner with senator schumer and nancy pelosi and well continue some discussions we have a lot of things in the fire, but i think right now, first and foremost so that we can compete again, and especially in light of the fact that we had two massive hurricanes the likes of which i guess our country has never seen i dont think theyve ever seen one was the biggest ever in if water and the other biggest ever in wind, and you put them together, and we have devastation in texas and in florida. And other parts of our country, by the way and i think weve gotten very high marks for the way weve handled them thus far and we continue to handle them well they were very big and very powerful and it was very unfortunate, but because of that, more than ever, we now need great tax reform and great tax cuts so we are here as a group, bipartisan, to try and see what we can come up with. Thank you all very much. I appreciate it. Thank you. What would you tell them, why have leader pelosi and senator schumer over tonight im a conservative, and im not skeptical, and i think that if we can do things in a bipartisan matter, thatll be great. Now it might not work out, in which case well try and do it without, i think if we can do in a bipartisan matter if you look at some of the greatest legislation ever passed, it was done on a bipartisan manner. And so thats what were going to give it a shot, right tom see what we can do and if it works out, great, and if it doesnt work out, great, hopefully well be able to do it anyway as republicans. Thank you. Thank you very much. Were looking at a 15 rate. And we want a 15 rate because that would bring us low, not by any means the lowest, but it would bring us to a level where china and other countries are. And we will be able to compete with anybody, nobody will be able to touch us so, we would like to see 15 okay thank you very much, everybody and by the way, lower for individuals. Much lower than that for individuals. And the rich will not be gaining at all with this plan. Were not were looking for the middle class and were looking for jobs jobs meaning companies so were looking at, for the middle class and were looking at jobs. I think the wealthy will be pretty much where they are pretty much where they are if we can do that, wed like it. If they have to go higher, theyll go higher, frankly were looking at the middle class and were looking at jobs. Okay thank you very much. Thank you, everybody okay. So that was about 30 minutes ago as the president began his meeting there with those 13 members of the house, as i mentioned earlier, eight are democrats and five are republicans as they try and hash things out over tax reform, health care reform, and other issues, infrastructure among others but in true clum bow fashion, the most interesting thing was at the very end there when he said that the rate for individuals might be much lower than that for corporations, if hes talking about 15 middle class. But if youre talking about significantly below that level, thats interesting he also said the wealthy would not only have to stay where they are, they may have to go higher. Not brand new, we heard steve bannon make similar remarks and back away from that there. Lets bring in emonjevers. I think you lashed on to the right point there, with the outreach by the white house to democrats which is this past week hack the first time in the Trump Presidency that weve seen this sort of porting of democrats and the idea of getting democratic votes for a trump initiative, now the subtext is does this make conservatives on capitol hill a little nervous that the president s preparing to give away the store in the conservative view . So, watch what the president says fwop things there i think that the president said that might give some conservatives on the hill some pause. One of them was the point that you just made which is he says that he thinks taxes on the rich might have to actually go up under this plan, not down. So thats something conservatives will want to watch and then the other thing, is that he said he wants a bipartisan deal on daca. Thats the proposal that affects young immigrants who were brought into the country by their parents and have lived there their entire lives whether or not they should be deported or not. The president decided to end the waiver there for daca. Ultimately theres still a negotiating period of time, he says he wants to get a bipartisan deal. That could give heartburn to some conservatives up on capitol hill too the president seems to be signaling hes willing to work with the democrats here. Well see if they can come up with some specific agenda items in this meeting, and then in tonights dinner with schumer and pelosi here at the white house as well. Where they can finally find some areas to Work Together on. Back over to you, kelly. Im going to ask you the question i asked terry how willing do you think the Republican Leadership will be to work with these democrats that the president is reaching out to in reaching some sort of a consensus on these critical pieces of legislation . Well, thats the interesting question, isnt it i dont think they would normally be all that interested in bringing in democratic ideas. They feel like theyre the republican leaders, they have the majorities on capitol hill, in the house, in the senate, they have the votes to do what they want to do. I dont see them feeling a whole lot of need to bring in a lot of democratic ideas into the proposal except for the idea that you could have a bill that you could present to the country as something bipartisan even if you get just a small handful of democrats in the senate and maybe larger than a handful in the house, thats not that many democrats, but you could say hey look, democrats and republicans are voting for it, its not a strictly party line thing thats sort of appealing to leadership, but ultimately, its at what cost the devil is in the details here its what specific legislative items will they have to eat in order to make that happen . They dont want to eat a lot all right emon, thanks well be hearing back from you as well. Lets goat our closing bell exchange, the dow is higher. I think the nasdaq is as well. Which would keep both of them in record territory, but the s p and russell, now the russ sl higher as well, but not record territory. Hank smith is with us today. Part of our closing bell exchange, steve grasso and Rick Santelli checks in from chicago. Steve, watching the sausage being made in washington, and its a day when the stock market after two decent rallies, days of rallies, is resting here. Its resting right on alltime highs i dont think this is, this is a losing day, you cant say that this is a bearish day. Even the whole movement in the stock market today was driven by what we just discussed, which was tax policy or the idea that tax reform will take place, but i think this is now from a point of strength. Talking about the upper income levels, i dont think thats going to sell with republicans i think thats going to cause more fractures within the Republican Party and its not going to be overcome by a handful of democrats going on board with it. If you look at where this is coming from, kevin brady, paul ryan, they introduced border adjustment tax that didnt go over well mortgage interest, that didnt go over well when they floated that balloon, and what about the 401k to kellys point, there are a lot of things that are out there that arent a plan at all, i am not hopeful for it hank, are you not for real tax reform look, tax reform cant take several months, itll take several years. The biggest Sticking Point is dealing with c corp. , and s corp. , the flow through companies, thats the majority of the United States is Small Business so are you going to treat those two differently and if you bring s corporates way down, are you going to treat Business Owners differently than wage earners . This is very complicated stuff thats for sure hey rick gee, i could point out that a ten years at two and a half week high, dollar bouncing off a year low here. I suspect youve got Something Else on your mind right now. What do you make of whats going on in washington you know, i really dont think were going to see tax reform, but i think well see some tax changes and ive somewhat thought that all along, shank exactly right to get real reform, dont think it could be done the one caveat and i agree in a big way with senator cruz and he had more recent comments on this topic today. That if revenue neutral is the guiding light, then they might as well do nothing because it really is just shifting who pays the taxes. Doesnt really have a lot of economic benefit this revenue neutral kind of trap conundrum, and i understand why, because weve had a lot of false starts to do things in the economy that have price tags, that turned into deficit price tags, and we didnt get what we paid for, we didnt get Sustainable Growth over 3 but that doesnt mean trying again is going to end up the same way but thats the political conundrum associated with it, and its going to be a tough game as far as rates, youre right, as a matter of fact, five and ten year rates are both going to close at the highest yield since the 24th of august, but the winner actually, two year note yields at 135, that could be the best close since the 8th of august, and i think rates, floating up, is probably, is good reason for stocks to be holding, probably more son so than whats going on on tv with the president. Weve been there, the sausage fact have i messy. Im holding the techup, put that on, everything will taste great. Okay. Youve got it. Thanks, guys we have to run here because the tape did run a little bit long there. Well talk to you soon hank, steve, and the guy with the ketchup bottle there see you later. We got 39 minutes left in the trading session here the dow is still at record territory at 21. The s p and the nasdaq are about a point away from turning positive and if they do, any positive close for the three major averages will be another record high for all of them it will, write it down in pencil about 42 a month, that is how much the new iphone would cost apple ak lites. Up next, well see if the iphone has finally hit the ceiling on pricing. And more than 5 Million People are still without power in florida after Hurricane Irma. Ahead, well take you to the tetso lines of duke energys atmp tturn the lights back on stay with us my dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. A dell advisor can help you choose the right products with powerful intel® core™ processors. All right. Lets check on some of the movers in the market shares falling after a downgrade by mizzou neutral from vy over concerns of competitive head winds. The firm also decreased or yeah, decreased its price target to 40 a share from 70. Thats a huge decline. That stock is trading at 35 and change right now dol by soaring today as apple announced that dolby will be integrated dolby on pace for the best in more than a year 59 and change right now apple just unveiled the highly anticipated iphone 10 calling it the future of a smart phone with an allgrass design facial recognition it comes with a hefty price tag, it starts at 999. Is it worth it . Everybodys asking hey, lets ask dan rayburn from frost consultant it is an aspirational phone. Lets face it. Is it worth 1,000 bucks. Heres the thing you have to look at, the Samsung Galaxy is only 100 cheaper and it has better specs and better frontfacing camera. Apples done something well. They can drive demand for a higher tier product. Apple ties software to hardware so well, that a lot of people buy it for the software as well. I think theyre going to sell a lot. Its interesting, the 999 number doesnt matter, its 42 bucks a month, i guess people have to pay up front for like a mortgage dont look at the whole price, how much per month. Or a car. I mean, so many people, especially young people, living their lives on a month to month basis the way they play for netflix and music for example, 42 in the context of that seems like a bargain is it . I think it is its also, you have to keep in mind that here in the u. S. , china and other places are different for apple, but carriers are subsidizing the cost to your point the idea that a consumer has too pay a little bit every month i think theyre going to sell a lot. The key question is the report thats come out that apple can only produce 10,000 a day. If that report is true, 300,000 a month, how much inventory have they stocked up before it goes on sale . A lot of complications in the streaming. What excites you about this iphone anything what i like most is just the quality of the screen. From someone who focussed on video all day long and thats my background, consumers are consuming more content, more often on more devices for longer periods of time and higher quality. And since the next generation and current generation is doing so much short form viewing, its going to be even better to do it on the new iphone 10 some reminds me back and ford and gm going back to the middle of the last decade when they were effectively financing companies. Is Apple Financing all of it itself how does that change apple as a company, as an investment as it moves deeper in the model . Thats a good question. We have to look at the arrangements with the carriers they are subsidizing the cost. Apple is footing the front bill in terms of making the phone, but apple has done good at projections. They have a pretty good idea what have theyre going to sell. The problem i dont like is it doesnt go on sale until november 3rd which means youre losing out on q4 i think it does impact q4 sales. I think theyre going to sell a lot of them. What does this do to iphone 8 sales. If im a 6 or 7 user, im upgrading to the 10. If you look at the specs at the 8, theres not a lot than the 7. I think they will the price point even though its 300 difference. Plus its the first iphone to do edge to edge screen. Samsungs had that forever does that make it a big difference for consumers it does, on a small screen, they want to see as much real estate as possible. What happens if the facial Recognition Technology is clunky to use it sounds like it doesnt work perfectly even if in their own unveiling. It didnt work perfectly then you have that swipe the screen differently. Thats a good question. Thats going to be seen at this point just in terms of how well have they done with the software with the hardware. From everything ive seen so far from people who have gotten hands on with it, they said it works well its impressive in terms of how quick it is. Its a fair point, every time apple comes out with something from a hardware component, to me the software is more important than the hardware. Because if the software doesnt work perfectly with the hardware, consumers get unhappy and they dont buy it. I assume youre going to get one . I will at some point. Wait and be appreciate. Dan rayburn joining us today. Time far cnbc news update now with sue herrara hello bill, kelly, heres whats happening that the hour one person killed and three more injured after a shooting at a high school near spokane, washington a suspect has been taken into custody. Officers responding after a shooter opened fire at Freeman High School in spokane county. The person killed was a student. A group of republican senators are taking another crack at health care reform. Claiming their bill is the last chance at preventing america from adopting a single payer system if you believe repealing and replacing obamacare is a good idea, what is your best and only chance to make it happen because Everything Else has failed, except this approach, which will work if we get behind it 44 million was raised by the hand in hand tell on this for Hurricane Relief dozens of stars took part in the event at studios in los angeles, new york, and nashville. As it was broadcast simultaneously across multiple networks that is the news update this hour ill send it back downtown to you guys, kelly, bill. All right, sue, thank you very much. Well see you next hour. Our sue herrara. Ceo of ek we fax offering a me ya cull pa today. Well look at what the credit ene meig bk. Ngcy should be doi wh wco rhtac at fidelity, trades are now just 4. 95. 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. Every year we take a girls trip. Remember nashville . Kimchi bbq. Kimchi bbq. Amazing honky tonk . . I cant believe you got us tickets. I did. I didnt pay for anything. You never do. Send me what i owe. Ive got it. I mean, you did find money to buy those boots. Are you serious . Is that why you dont like them . Those boots could make a unicorn cry. Yeah, tears of joy. The bank of america mobile banking app. The fast, secure and simple way to send money. Welcome back, millions of americans in florida are still without power and Florida Power and light, duke energy is the second biggest Power Company in the state. Our Jackie Deangelis is riding along with crews as they try to get the lights back on, jackie reporter good afternoon, thats right, another stop on this incredible ride along today. And you can see up here, this crew is working on distribution switches, theyre making repairs to those, they were damaged in the hurricane. They are working with live wires here, they dont turn the power off in order to do this. They keep. Going for the users that do have it in other areas, they are working with drones to actually assess the damage and make sure that theyre figuring out where they need to go next in the most efficient way possible let me give you some statistics of what weve seen today duke energy replaced 3,000 poles that hold the wires up, 950 miles of wire, theyve also replaced 1,100 transformers and thats just happening today. Now in florida as you mention, these Power Outages were very widespread, about six and a half million for the state in terms of customers when we started reporting on this, that number now down to less than three and a half million in terms of duke specifics, 1. 4 million is where that Company Started with customer outages, they have gotten it down to under 800,000 at this point, kelly. At least theyve been working quickly to get the power back on i know theres a ways to go, theyre bringing from all over the country to do it thank you very much. Reporter everyones grateful, guys yeah. As we mentioned, so important for all. Not just about the refrigerator, its the apparatus and their cell phone towers and the rest of it. Sorry is not kiting it for equifax so far, shares have been getting hammered yet again after the ceo apologized this morning in usa today can this company regain confidence from veoran stomers . D thats coming up next. Whoooo. I enjoy the fresher things in life. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest. Prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices. From over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. About 20 minutes left in the trading session. If youre just joining us, its been a mixed day for the stock market, dows up 23 point twhabs keeps it in record territory, s p pulling back a bit the russ sl a little bit higher. Yields for the tenure especially have hit a two and a half week high today, and the dollar has seemed to bottom at least for the short term here, something that would suggested today by jeff as well so the safety trade has come off a little bit here. President trump making bold statements on tax reform during that bipartisan meeting that hes holding at the white house right now. Just ahead, well hear from one of the democratic congressman whos inside that meeting. And next, the equifax mess worsens as consumers face difficulties being serviced by the website and the ceo makes a public apology what the company the worst in the s p today should be doing next being the incredibly busy man that i am, ive asked chase sapphire reserve cardmembers to scout the world to find my next vacation. Elton, what are you up to . Im having breakfast in uganda. Uganda be kidding me, elton its a. Its a joke. James, were going to look for gorillas hang on, what . Thats a real silverback gorilla. Look at it no, dont look at it. Shhhhh stay. Okay. Im freaking out sapphire reserve, from chase. Make more of whats yours. 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. Welcome back with the dow still up 22 points, which would be another record high today, look at shares of i robot which are sinking. Shark ninja just unveiled a cleaning vacuum, short Sellers Point in capitol reiterated its strong sell on the stock irobot down 15. 5 today. Ouch. In an oped post this morning, Richard Smith vowed that his company, quote, will make changes the data breach that we learned about a few days ago, week ago thursday may have compromised the personal information of 143 Million People roughly half the u. S. Population since weve heard the news, the stock is down 27 , the company now offering free credit monitoring, if you can get on their website because thats been a problem they were going to charge you 10, but now its going to be free and you wont have to give up your ability to sue the company if you want at the same time. Thats true, but is it all too little too late . Joining us now is adam balinski. Thank you for joining us thank you you know, i was one of those people today on the website signing up for their trusted choice whatever its called. Im not really sure what, you know, thats going to do at this point. Whats your advice to those affected right now well my advice, this isnt a trust worthy company, and i think they really flunked Crisis Management 101 the three principles of Crisis Management are be quick, candid, and repentant when a crisis occurs, and they were none of these. They were very late. They havent been very candid. And they havent been very repentant. They seem to profit from and capitalize on the mistake early on in in their thing so as an investor, as a consumer, i would have very little trust in equifax and the ceos apology even today lacked the type of candidness, the type of solution oriented specifics that people needed to trust this company. It was again too vague, too little, too late yeah, i mean, it was six weeks after they discovered the breach that they made it public, initially when kelly went online to see if she even was one of those affected, she was going to have to sign up to give up her right to sue the company, they have since taken that away under pressure from the new York State Attorney general, and then they were going to charge 10 if you wanted to freeze your account. Now that fee is being waived these guy us couldnt get out of their own way here initially, but is that just symptomatic of a company that finds itself in a huge crisis that its not used to absolutely, but they should have been prepared for this crisis they should have recognized this was a high probability that Something Like this could have occurred they should have set up policies and practices in place, for example, if Something Like this o curse, we make it public immediately that prevents executives from selling their stocks you dont have to have all the answers right away, you have to have a commitment to finding the answers in the solutions im reminded of, you know, when the navy seal 6 captured osama bin laden, one of their helicopters crashed. Why did they handle that well . They practiced, practiced, and practiced with a replica before then thats what Companies Need to do they need to anticipate the crisis, they need to practice how theyre going to respond, and they need to set up solutions immediately. Weve also seen home depot and target as some victims of these really bad breaches, but the points been made that their primary business is not in data protection, which equifax now is so in order for them to recover and arguably from their point of view try to come out stronger, what could they do at this point . When i go on the website earlier today, it was straightforward in terms of saying look, this is what happened, but heres the things were trying to do now. And now they have a lot more data and information on people as a result of all of this data entry into the trusted website so, what can they do now if they want to look back on this and say, were glad that we ultimately handled that the right way . Well first of all, you bring up a really important point which is this crisis is at their core competency, right so sometimes a a crisis hits and it doesnt affect the core of the business or what theyre entrusted to do. So theyre in a deep, deep hole because the very thing that they do as a business has now been called into question and weve seen very few businesses recover in this type of situation the only way they can cover is by going over and beyond on every possible dimension that we care about protection, you know, helping the consumer, preventing this from happening again, becoming a vanguard and preventing this i am very, very suspicious that they will ever overcome this core competency crisis, but they have to move mountains to do so, and they need to start now well, theyre not off to a very good start, thats for sure. No, theyre not adam from columbia business school, thank you for joining us, appreciate it. Thank you so much and we have 12 minutes to close until the close. Equifax the worst performer today. The s p is down just half a point right now. Nasdaqs down four well see any positive close for those would be a new record high dow hanging on to a 23 point gain baby crying slow jazz music fly me to the moon and let me play bell ring 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. Welcome back e Market Report today getting a lot of headlines predicting that cord cutting will accelerate faster than expected the help of the bund sl taking stage at Goldman Sachs at the Conference Today julianne is in los angeles with the headline reporter hey kelly, media moguls have been explaining how theyre tackling cord cutting. The ceo saying today he sees huge potential in a lower price point tv bundle in the 20 range. He says theyre working to launch one by december clear data to suggest that a lower price point that doesnt include sports has consumer appeal thats indisputable. There hasnt been a product in the u. S. Marketplace, ive said it before, ill say it again, we are highly confident that a product will exist that the price point in the u. S. In this calendar year. Reporter well he stressed the importance of a low cost bundle is to bring people into the paid tv ecosystem. Murdoch also spoke today, he says that fox has not seen subscriber declines accelerate, he also says theyre benefitting flu in the digital bundles at the same time, he predicts that everyone in the media space will launch ott options. Major Media Company on the planet that ultimately might have a direct Consumer Product launched in the short to medium term so, make no mistake about that however, if weve come back from that, we need to make sure that we dont damage the current ecosystem which is very profitable reporter now e marketer and latest projections doesnt include the digital bundles from hulu, youtube, and others. Well have to see how much all of the growth in the new arenas helps compensate for tv declines certainly a fastending, fastmoving area to watch, kelly, back over to you. You know whats interesting to me as well, if you look at report, for the first time the people spent less than four hours watching tv quote unquote, but time on digital video increased to 90 minutes from about 60 minutes five years ago. So at what point, if theyre still watching video can video Delivery Companies benefit from that reporter well, there are so many different players here. You have the netflix of the world, and especially amazon now joining that game as well. And thats really about on demand viewing and theres less benefit there for the traditional players like the 21st century foxes if youre fox and you own a company like hulu, you want to make sure that people subscribe to some sort of bundle, the new streaming bundle or comcast. Obviously comcast, our Parent Company has a different agenda, also wanting to, you know, maintain subscribers to the video piece as well. So a lot of different players here thats for sure julia, thank you julia there at that conference and who doesnt love netflix by the way . Not liking that is not like santa claus. Ive heard that somewhere as Julianne Robertson said yesterday. Two more interviews from the conference coming up on cnbc tomorrow verizon chairman and ceo will join squawk on the street. Les will join the crew thats going to be a great couple of videos. Look forward to that. Is it time for the closing countdown already . Well have that for you. Quick recap of the day on wall street in just a moment here were in the green across the board right now. Just barely for the s p and for the nasdaq after the bell, the ambitious iphone x 10 price tag may not spot apple lovers. But could be a roadblock for those convert from android well have more onts rivalry between samsung and apple coming up youre watching cnbc first in business worldwide for 17 years running. R cable but some people still like cable. Just like some people like. Banging their head on a low ceiling. Drinking spoiled milk. Camping in poison ivy. Getting a paper cut. And having their arm trapped in a vending machine. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable. Switch to directv. Call 1800directv. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. slow jazz music fly me to the moon and let me play bell ring about two and a half minutes left here. I was going to start the countdown with the index that finished to an alltime high and it looked like it was going to be the dow. The only index that was going to finish at the alltime high today. Late here this afternoon, the s p and the nasdaq had moved into record territory as well. We have a terrifrifecta here, to as it moved higher late in the day, but still, nothing like the magnitude of the rally we saw on monday and then the continuation on tuesday the safety trade continues to come off the yields on the along the curve moving higher, the ten year yield today hitting a two and a half week high were now at 219 just last week we were at 201, and the dollar index has bounced from that year low that we saw here recently, jeff gunlock saying that he thinks the dollar has bottomed at least in the short term so were up to 92. 45 right now and oil is now at a fiveweek high, bob, as more refineries are brought back online, that increases the demand for crude oil here in the u. S. And were up to 49, almost to 50 a barrel with a gain of 2. 4 today. And its back the mini rally, theres a mini rally going on today we pause today, s p is up 1. 5 this week. This is historic highs Retail Stocks are in a mini rally phase right now. I was going to say, nordstrom has something to do with that, i think. Jc penney, these are up three, four, 5 this week along. This is the third day in a row we were talking about Energy Stocks, this is another one of these, hate mail about this, dont tell us about buying energy, bob, we tried twice this year, got head handed to you theres a lot of hatred towards Energy Stocks right now, but were in the middle of another rally with the oil standing near 49. The other mini group rally sort of pausing and those are the bank stocks, of course the yields have been moving up lets say its either side of positive or negative for most of the Big Bank Stocks today, bill. And ipo price youll get to kpumg here social capital. I just like saying the name. You get to say it again next half hour here, coming up. So weve got those record highs for the major averages in the stock market today stay tuned, well get more from that bipartisan meeting at the white house coming up on the second hour of the closing bell with kelly evans and company see you tomorrow, kell thank you, bill. Welcome to the closing bell, everybody, im kelly evans and we have more record highs across wall street today. Looks like small declines on the s p 500, increases i should say for the s p in the nasdaq, just on the bell there, puts all three of the major averages in record close so again, the dow, which was higher there by 37 points to close at 22. 154, s p managed to add nearly two points to 2,498, less that two points away from 2,500. The nasdaq managed to gain a percent today, and yes, that is a record close now the russell 2,000 with just about a three and a half point gain there, quarter percent increase makes the best performer on the street today, at 14. 26, it is still shy of the 14. 50 record high. Still holds from the end of july for those small caps more on all of this in just a moment President Trump holding a bipartisan meeting on tax reform this afternoon he says the wealthy may not be getting a tax cut under his new plan and maybe even an increase. We have a congressman from that meeting to give us more details coming up. And the social capital ipo, kind of a unique one, its going to price any minute now, bring that to you as soon as its out. Interesting test for a different wave of private companies to go public in the markets. We have cnbc senior markets commentator michael san toely, welcome to everybody, and mike again, especially for the dow today, like a second solid advance yeah. And its a very different tone all the sudden from the end of august. It is i would say kind of sitting around at all time highs is not a bad place to be sitting around, but really throughout the day, it did just kind of hang there this has been a market thats had this character where it doesnt go up any staircase without taking a rest on the landing, and thats what its doing again. But again, its all in the context of a Global Equity rally. So its not as if the u. S. Market is doing this in a vacuum, and i will say the other thing that this markets been good at is looking for little groups of stocks that have been left behind, gotten oversold, and then picking them back up and this is happening with banks, bobby, we were talking about retailers, airlines this week so its been this tension release. I dont know if we have enough to get much beyond here, but certainly sticking around these levels is okay. And ann, some of the names in alltime highs today, home depot, a lot of the rest of them in health care you have baxter, you have signa, United Health as well. Why do you think that areas doing so well . We have this transition that keeps going back and forth between playing offense or playing defense. And a lot of it has to do with where the ten year is at and where we think tax reform is going and Interest Rates are going. The market, its a difficult market for investors because it keeps changing it keeps transitioning so you have to pick places on the market, were trying to find the stocks that are good in each of those spaces what are your favorites right now . Right now shirwin williams. It plays to the home remodel, home repair. Really . I want to get in the diversion on this, journal had this interesting story yesterday about how its no longer a diy painting market. You know, growing up we used to do so many home painting projects, but its not the traffic driver anymore, people are hiring somebody because theyre too busy watching netflix to do it for them. True. And its the number one page with professional painters and i think when people think of sherwin williams, they think of the do it yourself market, but it is with professional painters i like that stock, but more defensive stocks too, biorad, company on the health care side in the medical tool space. Its a company that has been hurt by its own problems implementing an erp system which has caused challenges. I think once they get beyond that, youll start to see the growth there as well as margins. So its those individual stories were looking for. For sure, jeffrey said we put a short term bottom in for the u. S. Dollar. Today thats back up half a point, still only at 92. 5, where do you guys think it goes from here bottom up stock, were looking at the fundamentals, obviously the dollar was a very long trade and you see that unwinding, now near term, potentially there could be a pickup. When i look at fundamentals across international and especially in emerging markets, the earnings is coming back and its not just a risk on risk off story, its much more about the fundamentals and that gives us optimism in our portfolios lets talk about apple. Were still digesting the huge news from that company and more movers on that front today western digital, which was down because it looks like a consortium is going to make a bid and especially with the announcements of Storage Capacity yesterday they need access and they want a healthy numbers of suppliers in the market they dont want to be taken over by the competitors there that was one of the worst performers in the s p, then this interesting story about how you may not be able to use them on tmobiles network yes, youre starting to see the winners and losers Ripple Effect from the new phone. And i should say, you cant use it on tmobiles new fancy e network, not any network they will work on some of them but its not taking advantage of the latest version of the Tmobile Network yeah, and when it comes to apple shares, its up, clearly kind of put a lid on the nasdaq today backing off a bit. Very difficult to extrapolate from that and decide, its not the market kind of rendering a verdict on the new phones or how much the upgrade cycle is going to be down the road. I think its about digesting a 50 move in the stock, year to date, trying to figure out if the release date matters and all the rest of it, i think its okay right now i dont think its a big sell on the news story i think you have genuine questions about the strength and the duration of the upgrade cycle. How big a deal is it for you guys to trace back the supply chain and look for investment ideas around apple sure. It matters to the market what we have tried to focus on is the unapple theres so many other suppliers and markets out there, even if its the chinese samsung itself, theres a whole host of opportunities where youre not hostage to one customer, if you will, but it is a big deal and if you look at now moving into all of that, thats going to probably double the size of the cost of the display, and thats good news for the supply chain, the important, the importance that was just mentioned on the memory side youre seeing it go up, and thats been a big win and earnings positive surprise for the likes of samsung. Well, i love how samsung benefits no matter what. Apples phones, its been a slow year for ipos, but tomorrow we are going to see an ipo floated here see if its getting more than the usual mamt of attention. Social capital is set to price any moment now theyre planning a healthy increase or raise i should say of 500 million. And thats 50 million shares at ten bucks apiece bob joins us now with more on this. Hi, its unusual because its an ipo with no assets, no assets right now, its a special purpose acquisition company, big words called a spak. Its being set up to that arent public they are based on a season manager and investment space, say energy or tech for example and it settles them into a portfolio for investors. Youre buying a Management Team with experience which is attractive to many investors theres an element of risk here. The manager is essentially saying, trust me, i can buy companies that are priced that will eventually make money for you. Now, they are hot this the year, more than 20 have gone public so far in 2017, thats the highest number since 2007. Thats according to renaissance capital. Why are spacs suddenly so popular . First and foremost, they may help the log jam theres hundreds of companies waiting to go public that cant or wont go public in the current climate. In the case of tech, weve talked about this big valuation gap between tech private valuations and what the public is willing to pay for them spacs offer a way for some companies to go public potentially at the same time, they also offer investors an outclause, the money sits in a fund until the manager announces what hes going to buy if an investor doesnt like the deal or doesnt like the prices, they can back out and get their money back still its not a cheap way to buy companies, folks the initial investors will own 20 of the company, essentially as a finders fee while the public investors own the other 80 , guys personally, i prefer a straight ipo, when you get a log jam like this in ipos, maybe this will help a bit, back to you. All right bob, thank you. The ceo and founder of social capital will cohost Halftime Report tomorrow starting at noon eastern time and i mean, does this interest you as an investment you know, i think our job is to find investments that are attractive, so to invest in a Company Just Give them the money without knowing, probably not something that we are really looking for today. If it was an inexpensive market and companies were having a hard time going public for that reason, you know, go back to 2009, you know, capital its almost the opposite is happening. The private market valuations hi call are so high and they come public and theres stumbles out of the gate. He thinks this is a different avenue for them. In particular this one, as opposed to other ones that are rollups of the Old Fashioned sort he wants to take advantage of the very reluctance of startup founders to subject themselves directly to Public Market discipline you might call it or punishment or just expose themselves that way. And to essentially try to capture the potential for a spread between what theyre willing to take and what its worth in a kind offing a investigated public vehicle, i dont think its going to be, you know, some kind of craze, were not going to see 50 of these in the next few months unless this one goes well. Youre right. Although i think its very interesting that its clearly a bull market phenomenon, greatest since 2007 right, every time you see anything and you go oh boy all right. Guys, thank you very much. Ann and conrad thanks. Were going to go over to kate rogers for a market flash here, whats happening, kate were watching shares of Semiconductor Corp the stosks moving higher then fell before the close. This on a bloomberg report that President Trump is blocking a chinesebacked pe firm from buying the chip maker over a security risk. The bloomberg report also says that this is only the fourth time in a quarter century that a president has stopped a foreign takeover on National Security grounds. Once again, shares of the Semiconductor Corp. Back over to you. Kate, thank you speaking of tech, there may be an x factor for the iphone. From froil june, 67 of phones activated were android, 67 , while 134i were apple iphones. Apple may have to convert those droids can they were going to find out next President Trump wrapping up a bipartisan meeting with members of congress. Well speak to a congressman from oregon about what was on the president s mind and we want to hear from you reach out via twitter, facebook, or email, yroue watching cnbc, first in business worldwide. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Facial recognition, wireless charging, water and dust resistance, thats all what apple promises to deliver with the latest iphone 10 model are these new features enough to convert android die hards . Joining me now is chris taylor from nashville welcome to you both. Thanks for having us. Jonathan, well begin with you, lets talk a little bit about the popularity of android and whether apple has enough pizazz here to, you know, peel some people over to give it a try. Look, i mean this narrative has, you know, existed ever since 2008 so i think apple is doing exceptionally well theres a lot of research in the last couple months that even without a new phone, even with all the pentup demand, the super cycle for the last two to three years, apple still converting Android Users at a really High Percentage so im not worried about them taking Android Users at all, in fact i would expect that to increase here just based on how incredible the new phones really are. Jonathan, do you buy that are people either apple people or android partisans and does it really break down to Something Like that or is it more fluid and do people genuinely do a side by side comparison of features when its time for them to get a new phone . I think thats a great point. On the android side, its incredibly fluid their lockin is certainly not as strong as apples. As far as people that own iphones, i dont think we see a lot of people that have iphones going to android or to another platform, if anything, they would get a different model iphone because of how strong that Apple Ecosystem is. Chris, what do you think . Are there going to be converts to the iphone 10 from android . I think so. I think a lot of people are going to see that the flash and the novelty features of things like an emoji. I also think that, you know youre kind of locked into your own system increasingly these days you know, if youre in the ios garden, youre pretty much staying there. You know, you hear tim cook call android as he did a few years ago a toxic hell stew. You know, its supposedly full of all of these security concerns, and apps that arent fully tested in the way that, you know, the way that apple kind of protects you or sells itself from protecting you so i think that were entering a phase now where people are going to decide which side of the wall garden theyre on. Are you in apple or are you on kind of the android side of things if youre an android you dont choose samsung or google and you know, i think were going to see a certain amount of maturity in this market going forward. Jonathan, how common is it for people to switch from one platform to the other . You know, in my experience its foot in common. I think to chriss point, i think were seeing that, but were also seeing less of that, some cases from the other side because i feel like a lot of Android Users over the past couple of years have way less reasons to stick on that side of the fence. Apple has done a great job at picking off all the low hanging fruit and even, you know, the major features that lack, wireless charging, you have incredible security, you have the screen, you have all of these advanced features that might have started on android for some of them, but really takes apple with their combination of hardware and software to really marry those two together in a product that a majority of people to want use and enjoy using. Thats the major part here chris, this whole discussion is i guess underscoring why so many on wall street are very focussed on the existing installed base of iphones when it comes to apples outlook and also how many of them are more than two years old i guess the question is, if you are either an apple person or an android person, are you buying phones less frequently in other words, is the upgrade cycle what it once was, you know, at this point do we really have to have that much better of a new version to get people to move or is it pretty much everyone grabs for the new thing. I think were seeing that less and less people grabbing for the new thing. Im still an iphone 6s owner i love that headphone jack, and im going to stick with that phone until it dies on me. And you know, i thought of upgrading to the 7 or the 8 or even the 10 at this stage. Look, people are happy with the phone that they have increasingly its also were seeing that in the tablet realm. People buy an ipad and stick with it for years. Increasingly as phones become larger, they become more tabletlike, more reliable, the batteries get more and more power, were going to see that increasing in the phone realm as well this is a mature market. People arent paying that much attention. They only care when upgrade time comes around and if theyre not satisfied with their phone, thats when they have the apple store. Yeah, steve forbes had an ipad that must have been ten years old. If theyre even ten years old, and we talked to julia yesterday, i think had like an iphone 5 that he was happy with. Its very much like cars. Cars dont fail anymore and its less that much more youre just happy with what you have its almost harder to switch than to not. Chris, jonathan, thank you both. Thank you jpmorgan chief jamie diamond gives banks a bode of confidence yesterday. He did express concern about one area of the business thats next on a special edition of fast take and senator Bernie Sanders is making headway on a Single Payer Health plan. What hes done, whos behind him, and the gop reaction, coming up. For the holidays, we get a gift for mom and dad. And every year, we split it equally. Except for one of us. I write them a poem instead and one for each of you too that ones actually yours. That one. Regardless, were stuck with the bill. To many, words are the most valuable currency. Last i checked, stores dont take words. Some do. Not everyone can be the poetic voice of a generation. I know, right . Such a burden. The bank of america mobile banking app. The fast, secure and simple way to send money. Welcome back with more breaking news. Lets go back to kate rogers. Tlai, kelly, a statement from the white house on President Trumps decision to block lattice by being acquired by the China Company limited. The statement says in part, the National Security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the chinese governments role in supporting this transaction, the importance of Semiconductor Supply Chain integrity to United States government and the use of lattice productsby the United States government. Once again, the bloomberg story does say this is only the fourth time in a quarter century that a president s actually stopped a foreign takeover on National Security grounds, kelly, back over to you. All right kate, thank you lattice down 1 . Time now for our fast take today, shall we . We have tech headlines from delivering alpha and we begin today with assures tesla and Senior Management basically is too, take a listen. We are still short the name the only people more bearish than us are the Corporate Executives this is a good example of i think of colt stock its fair to say in the market wrsh the market will look at anything the way it wants to in Glass Half Full kind of mode. This is a company where you have every single Senior Executive department seeing senior people leave, you know, faster than you can say whatever, you have a company losing billions of dollars. And as if to prove his point, the head of Business Development today said hes leaving after 11 years, what are your thoughts . As if to prove his other point, the stock was unmoved so it is a cold stock, its true believers, even bearish analyst on the cell side today who thinks its only worth 200 down from 360, whatever saying it could go to 600. So its all about the big dream, not the operation. Im short, it could go to 20,000, but i think its off. 24 of the float of tesla is already short. Not as if there arent bears out there. Speaking of jamie diamond, more than just bitcoin to talk about. Hes worried about the growing payments industry undermining his banks poor business, take a listen. The play place i worry about disruption, im not worried, but we should always as payments, theres a lot of things on payments that very smart people. They still use the Banking System, but you could find a way to try to not use the Banking System and take trips around the world and people doing a good job serving clients not using banks anymore. Right now most of the payments at the end of the day, use a debit card, credit card, or payment to move money, the banks are doing certification, moving of the money aml, bsa, itd be terrible if we rolled out for them and never got paid for it. There is a free rider issue which i notice every now and then i dont know what all those acronyms mean, if hes serious about whats happening with payments possibly undermining a lot of that business, maybe they should have got world pay. Yeah, probably are options, and interesting, hes worried but not worried. That was kind of the message there as well. I think its about a lot of these digital wallet type apps which will let you just load something on to a starbucks card and direct into the become the the bank doesnt get paid unless its on a debit card all of these ways you can kind of just operate above the actual Transaction Processing system of the banks. We probably dont talk about it enough, theres a lot of transition under way is it the end of the data center that sector was slumping after comments and barry at delivering alpha yesterday. Take a listen. If you can actually process data much more quickly, right, you may not need all of the space on the racks that are in, you know, everybody looks at data and video and demands growing like this, but if the chips are growing at least as fast, are Companies Like Digital Realty or the guys in my space, you know, we avoid, i avoided that space because of what he told me about whats going to happen in the business and technology and that directly impacts a sector of the business yeah, reap being Real Estate Investment trust it was down 2. 5 down more during the session certainly digesting some of that concern yeah, and its been very hot area its been this area that people say wow, that is only expanding, you know, exponentially every day, every year. Therefore these data centers are like a one way trade what could ever go wrong and so this idea that in fact you could compact all of this activity on the data base side was very fascinating and i think definitely was weighs on this stocks. Who knows if its going to happen soon or not does that mean the entire cloud. Cloud, cloud, cloud, cloud, well if you can just process in the moment well, no, i think the cloud get compressed in terribles of physical space yes, in theory theyre that much better, do you actually need as much of the installed Cloud Infrastructure i dont know if thats it. I think a lot of the data base raets were considered to be label the like cell phone towers absolutely. Which always looked expensive, you needed more of them entire countries, iceland we are betting their future on the data centers finally who says china cant innovate jim breyer says theyre leading in ai. China right now represents about half of the most interesting Ai Investment opportunities in the world and they have led in Drone Development too, for example you know, something youve got to Pay Attention to. Its deeply embedded in china. One thing he mentioned to me after in a conversation, its because they have so much data to work with, thats the raw material of ai. They have more people. More people, more transactions, more smart phones and more hands that gives you more data points and that plus, of course, these sort of young, star programmers who they can kind of pluck out that is really interesting. Learned a lot today. We have a new alert on tenant thoelt get to. Over to bertha for that. Kelly, the dow jones reporting that Tenant Health care according to sources may be exploring a possible sale. Now this is something that has been talked about for a while. Youll recall, that back on august 31st, trevor eder, the chairman and ceo announced hed be resigning this coming after two Board Members that came from glenn view capital, the activist investors had been pushing for big changes at glennview resigned, saying that they were going to take a more active role so it appears that there may be a shakeup in the works. And among the issues being considered is possibly a sale of the entire company, tenant over the years has been selling off various properties to try to deal with its debt. The stock responding up well over 10 here in after hours, back to you. All right bertha, thank you. Thats a pretty big news, michael. It is a big move. The very depressed stock by the way, a lot of debt so essentially, you know, the equity would be a relatively small piece of an acquisition if they were managing to sell but is this a story about hospital consolidation i mean, the interesting thing is the hospitals have done so well under aca until it hit the skid the last year or so, and i dont know about the economics there volumes have done better. But i dont think this is a Balance Sheet that was optimized to take advantage of that. So i think its probably more of a thc thing in general although, i wouldnt think anybody would argue that the hospital industry has a whole could use consolidation. Thats why i wonder whos going to take it over. Go ahead, bertha. Volumes have actually actually been kind of tough. People putting off elective surgery as our co pays are higher so people arent necessarily going in there a lot of people because of those are also starting to look more at ambulatory Services Going to the retail clinics and things like that rather than the emergency room so for some hospitals that havent been able to sort of diversify, they are actually starting to feel a bit of the crunch great point bertha, thank you very much. Tenants now up 12 on that news. And its time for our cnbc news update this hour, sue herrara, sue. Thanks kelly. Heres whats happening that the hour everyone, man accused of shooting and killing his mother at a Medical Center in New Hampshire appearing in court today. Authorities say 49yearold travis frank shot and killed his mother while she was in the hospitals intensive care unit he was ordered held without bail only firstdegree murder charges. Crews battling a building fire in missouri this morning. The fire was reported by Ck Enterprises which is a chemical manufacturer you see that heavy smoke and flames near the back of that building fire Officials Say a winter additive ignited the fire. Luckily no serious injuries. Animal lovers on st. Martin are going door to door to rescue peats abandoned by owners before and after Hurricane Irma struck. On the dutch side of the island, many pets were left behind when their owners had to evacuate and a judge has awarded rebel wilson 3. 6 million over magazine articles the actress said cost her roles in hollywood films. A Supreme Court justice in australia said that amount was required to vindicate wilson after her reputation was wrongly damaged. You are up to date, that is the news update that the hour, kelly, back to you all right sue, thank you very much sue herrara. President trump making a case for bipartisanship at the white house today. From tax reform to daca, the president extending a hand across the aisle to Democratic House members. Venel look at whats behinth d at mo, xt [car tires screech] [bell rings] upbeat dance music bell ringing welcome back, another record setting day on wall street the dow up 39 points to 22,158 2498 and 6460 respectively and the russell 2000, best performer up a quarter performance. 25 point shy of their record high now President Trump making some surprising comments on tax reform and what it could mean for the wealthy at a bipartisan meeting earlier this afternoon lets get to elom mui with those highlights reporter he wants to lower taxes for both businesses and individuals, but not for the rich we would like to see 15 . Okay thank you very much, everybody and by the way, lower, and lower for individuals. Much lower than that for individuals. And the rich will not be gaining at all with this plan. Reporter now trump said that the wealthy could actually see their taxes increase under his plan, but there have been several studies that show the wealthy could be some of the biggest beneficiaries from trumps tax plan, including a report that was just released today from the institute for economic and taxation policy they found that the top 1 would see a more than 7 percentage point decline in their effective tax rate that compares to everyone else who would see a decline of just about two Percentage Points or less President Trump was meeting with the Problem Solvers Caucus, a Bipartisan Group of lawmakers in in the house theyre meeting touched on not just tax reform, but also issues like immigration, issues like infrastructure as well and of course, President Trump has that meeting with chuck and nancy later on this evening holding a dinner with them as well so the president telling reporters there that he is going to give bipartisanship a go, but that if it doesnt work, hes willing to pursue his agenda alone. Back over to you, kelly. All right thank you very much. Michael, it feels like thats going to be the Sticking Point for getting democrats on board any idea, report, information, sense that this is going to benefit the wealth more than the middle class so much scatter shot detail about what it might or should or could include. That theres almost no way to reconcile the idea that as the president said, it will be the biggest tax cut ever, and yet, the wealthy wont pay less the math doesnt work on that. Unless you really radically get corporate maybe itll be the biggest tax cut ever for the middle class except the middle class in aggregate doesnt really pay as much as you would. In other words, i dont think the market is looking at this and saying, this is a well calibrated message of what the plans going to be let the process start and see what comes out of it thats for sure kurt slager, hes a member of the bipartisan Problem Solvers Caucus they just met with the president. We thank you so much for joining us, congressman. Thanks kelly, appreciate being here did you solve problems today . We talked about a lot of problems there wasnt a lot of politics this time. It was pretty substantive discussion a lot of democrats, a lot of republicans, mostly problem solvers and blue dogs. Yeah, you guys outnumbered the gop, right so lets talk a little bit about what the whole point of this was for the president s agenda is the idea that by meeting with you, there is a possibility that youll vote for some of these plans on tax reform, on health care reform, maybe on daca i think hes interested in bipartisan solution, at least thats the way it would appear might be also a way to get republicans to get back on board. So that the president doesnt have to work with democrats, but he gave instructions to gary kohn to work with democrats. That was the major thrust of the conversation and we pitched the idea. If you want to win, mr. President , support the Health Care Proposal to fix the individual marketplace so well get to that in adjust moment, on tax reform, where are the areas where you agree with the president and would support a tax reform effort well, i agree that the middle class ought to be the beneficiaries, he did talk about the wealthy not getting anything out of this at the end of the day, well see devils always in the details. Hes talking about he would be open to an infrastructure link discussion, but definitely tax reform is his laser focus at this point in time wants to get the rates down, substantially, i think hes going to have a tough time getting him down to the numbers hes been talking about. I made a pitch to him that hes got to have bipartisan support to get any of the numbers down anywhere close to where he wants to be because its going to mean a lot of tax breaks and Tax Deductions far lot of group goes away so real quickly on health care, would you support the Lindsey Graham effort thats being put together right now no, no, i would not thats not going to go anywhere. No way theyre going to get the support for it i would support patti murray, Susan Collins efforts over in the senate to look at individual marketplace thats cratering, you dont want the president saddled with 20 million uninsured people at the end of the day, it doesnt make sense i think it hurts his efforts overall. So were great animated discussion at the meeting with both sides republicans and democrats pushing to support the problem solvers idea of making sure the csrs are in place, stability fund, employer mandate repeal to a large degree, medical device tax and then flexibility for the states thats what everyones talking about. All right congressman, thank you for joining us keep trying to soft those problems we very much appreciate it thanks, kelly representative kurt shrader after meeting with the president earlier today. Meantime Hurricane Irma has destroyed up to destroyed up to 25 of the homes in the florida keys thats what fema said. Were going to get the latest on those damages and the Power Outages that remain there next and the storm damage to homes across the southern u. S. Could have a big impact on banks. Were going to tell you how coming up. Youre watching cnbc first in business worldwide when this bell rings. It starts a chain reaction. 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This compared mortgage properties fema designated disaster areas to those in katrinas mortgage delinquencies in louisiana and mississippi disaster areas spiked 25 Percentage Points after katrina. Now the same could happen in houston. Homeowners will get some federal relief, but if rebuilding costs more than the principle they have in their homes, they could decide to walk away. Now turning to florida and irma. You cannot use the same comparison because irma was a wind storm, not so much as a longterm Flood Disaster as harvey and katrina that said though, there are just over two million mortgaged properties in irmarelated fema disaster areas, more than four times that of katrina and twice as many as harvey. Total unpaid mortgage balances for ur ma areas is 370 billion. Borrowers in florida also have much less home equity than those in houston because they were hit harder by the housing character. So if the math of rebuilding for them doesnt work as well, they could also walk away kelly. All right well see, diana, thank you. Joining us to discuss the impact irma could have on the Real Estate Market is the Vice President of International Realty sadie, thanks for joining us, whats the early read on the Lasting Impact this could have kelly and mike, thank you for having me. The impact in miami, i think will be a positive one i lived through andrew and the market was slow, it was challenging like it is pretty much today in miami weve overbuilt again, and we are going to see a lot of movement with a market, a lot of people saying i dont to want deal with the hurricane, i want to sell my second or third home, had a flood, and i dont want to deal with it well, so saddy, if it was an overbuilt market and now people are fed up and wanting to get out of it, does that just add to the supply or you just mean its going to kind of create more sort of twosided action with this Recovery Process . Well, i think at the same time its going to create opportunities. Its going to create opportunities for buyers, theres going to be a lot of more money flowing around, people are building, fixing, upgrading, downgrading, the buildings that stood still well, well have more activity, therell be more sales the buildings that need some work, you know, well have to deal with that so you generally see more transactions, you know, after a situation like this. You already hearing from people, saddy . Actually i am im actually here avoiding the hurricane in new york. And i got a call day and a half ago saying you know what, its my third home, it flooded, im in the aisles, i just want to sell, then ive had calls of, you know, give me some opportunities and buy. So as personally, i do have seen already and have personal experiences of people already calling me all right thats interesting well see how things clear out especially for some of these homes with damage. Thanks for joining us. Youre welcome. People in those florida keys are still reeling from Hurricane Irma they had 90 of the Housing Stock damaged. Contessa brewer is down there and she has the latest, contessa reporter kelly, President Trump will visit some of the stormdamaged areas here in florida tomorrow hes planning to head to naples, according to Sarah Sanders hes likely to see some of the same kind of damage were seeing here in the florida keys do you see behind me, theres a big yacht over a dock that is partially submerged. Up and down from key largo to key west, same damage. Massive storm surge, massive wind damage, and it really did a number on key west the historic hemmingway house had massive trees down outside, but im told no damage inside. The main streets in key west, i just got to see them today for the first time, passed the check point, mostly cleared. Neighbors pitching in on the help there duval street which many may have visited, still largely boarded up little signs though of catastrophic damage. The lights arent working. There is Running Water only for two hours a day, you cant drink it cell service is nonexistent in many parts of that town and throughout the keys. And in fact, Key West Police told me they are still in search and recovery mode. Senator marco rubio has urged another mandatory evacuation of the lower keys he calls the situation a recipe for disaster estimated 4,000 people rode out the storm in key west, and theyre running low on supplies they told me today they have few options for buying more and by the way, little cash on hand to buy them even if they can find it. Contessa, thank you reporter at any rate i talked to yeah. Reporter kelly, i was just going to tell you i talked to steve clark. I thought we were going to hear from him there he works in tourism. The number one something get the power back on, get the water back running, sanitation works so people can get in there and clean up these places. I did want to tell you in marathon which was marathon, why damaged, we saw verizon and at t setting up mobile and cellphone towers, they have Emergency Operations command the marathon airport is open here for flights coming in and out. But the damage, kelly, oh, from up and down these keys, it is extensive and pervasive. I understand why senator rubio is saying evacuate contessa, thank you again for joining us Contessa Brewer is in the keys senator Bernie Sanders announcing his plans to expand Medicare Coverage to the entire population well have the details to his proposed legislation and the key democrats backing it, after this coming up, john mcafee will make his case for why bitcoin lls. Hf lln th aalmiio doar stay with us senator Bernie Sanders introducing legislation today to expand medicare into a universal Health Insurance program called medicare for all Kayla Tausche has the details. Reporter Bernie Sanders single pair plan calls for americans to get cards for their medical, dental, and vision needs, paid for by new taxes senator sanders says he wants to redistribute the status quo. We say the function of a rational Health Care System is to provide quality care to all in a Cost Effective way. And not to continue a system which allows Insurance Companies and Drug Companies to make hundreds of billions in profits each year. Reporter its a familiar platform for sanders but the newfound support from some 2020 democratic hopefuls shows how far the pendulum of the Health Care Debate has swung. Republicans announced their own plans today, gop senators graham and cassidy have a plan to keep obamacare taxes in place but funnel the revenues directly to the states the president supports that plan, in a statement he says, inaction is not an option, i sincerely hope senators graham and cassidy have found a way to address the Health Care Crisis kelly, a by partisan backstop is necessary before the end of the month to stabilize insurance markets. Unclear whether that will get the white houses support. When asked about how the president feels about single pair, his press secretary said he thought it was a horrible idea back to you. Kayla tausche, thank you very much Martin Shkreli is back in del urin new york city well go live to the courthouse when we come right back. dad molly trash whoo mom hey, molly . Its time to go bell ringing class, lets turn to page 136, recessive traits skip generations. Who would like to read . molly i reprogrammed the robots to do the inspection. 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Welcome back pharma bad boy Martin Shkreli is back in court for a bail hearing starting at the top of the hour. Meg terrell is in brooklyn outside the courthouse with details. Meg . Reporter hey, kelly. Were back at the Brooklyn Federal courthouse a little schooner thanexpected in the trials of Martin Shkreli thats because prosecutors have asked the judge to revoke his bail and remand him into custody after saying hes engaging in an escalating pattern of threats and harassment, culminating most recently in a bizarre tweet where he offered 5,000 to anyone who would bring him one of Hillary Clintons hairs now, later he updated that same post to say that it was satirical. But the government in its request for his bail to be revoked said that the secret service had to expend resources on this. Shkreli this week wrote a letter to the judge apologizing and asking her not to revoke his bail, saying, quote, it never occurred to me my awkward attempt at satire would cause mrs. Clinton or the secret service any distress no sentencing date has yet been set. This is going to start in just a couple of minutes here in brooklyn, guys, well bring you any news from what happens inside that courthouse, kelly. Back to you. Meg, thank you very much. Michael, i dont want to end with shkreli oh, no, its cpi tomorrow morning. I know thats what youre going to be jazzed about as opposed to the bail hearing over there. Well see if there is information. Meg has a very difficult job, having to cover this whole thing. What was shkreli thinking with the Hillary Clinton hair pulling . The fascinating wrinkle he had somehow thought he had earned the benefit of the doubt that he could joke around about these things youre not somebody that youve already taken satire on the web to such an extent that youre not sure whether its satire or not. A bizarre and remarkable thing. Im out of here for the rest of the week. Do i need to Pay Attention to cgi . Ppi this morning wanted it to be 3 10ths, its only two that does it for closing bell. Fast money begins right now. Fast money starts right now. Live at the nasdaq markets, overlooking new york citys times square im melissa lee. Apple is releasing its highly anticipated iphone x with the price tag of a thousand bucks, will it stop the widely expected iphone super cycle in its track . Plus it was the cyberattack heard round the world. Equifax is paying for it, down 30 since the breach one trader says theres even more pain ahead. The controversial and infamous john mcafee