Transcripts For CNBC Closing Bell 20170918

Meddling well discuss the potential impact for facebook and for the other big tech names. Speaking of big tech names intel Ceo Brian Krzanich will be here for an exculusive interview about the companys new Autonomous Vehicle partnership with alphabets waymo unit that will be coming up a while from now. That will be very interesting. Plus, find out whether a nearly 8 billion Missile Defense deal could signal more deal making on the horizon for the Defense Industry which is enjoying alltime highs in this market today. Lets start, though, with facebook feeling more pressure from washington over those russian ad buys ahead of the election Julia Boorstin has the very latest julia . Reporter hey, kelly. Facebooks under fire for recent revelations that russians bought ads on the social network to influence the president ial election House Intelligence Committee Ranking Member adam schiff is calling on the company to testify before congress saying im distressed it has taken us this long to be informed that the russian had paid for at least 100,000 of ads designed to try to influence our electoral process. Facebook has handed over to special Counsel Robert Mueller copies of ads and details about the accounts that bought them in the targeting criteria used. More detail than facebook provided congress about the 3,000 ads reportedly just showing them to staffers but not allowing them to keep them facebook saying, we take our responsibility to protect the integrity of election seriously and built teams devoted to this purpose. We are providing information to special counsel including ads and related account information. So why isnt facebook making the ads publicly available the source familiar to the situation says because of federal law and ongoing investigations, facebook may face certain legal limitations to sharing those ads now this news hadnsnt had a hu impact on the stock but its down about 1 today. We didnt see a particularly large impact, either, last week but the revelation about facebook allowing advertisers to target based on antisemitic terminolo terminology. Thank you. Not only the government challenging facebook right now but a former facebook executive also weighing in on regulation we need to know the full extent of their use of social media to influence us from facebook, from twitter, from google, from any social media or search engine. Facebook and google effectively are Surveillance States and have private information about so many stss, it has to deal with the issues. Those on satellite radio, that was adam schiff, first sound bite you heard there whats ahead for facebook and congress circling . Will we see an impact on the stock with advertisers or users . Joining us, jonathan taplan, director emeritus at the Usc Annenberg Innovative Lab and Michael Graham is analyst. Michael, im going to start with you. Why hasnt the stock suffered amid all this . I think the ultimate impact here is like toy be on the small side thats really i think what could ultimately be a big problem for facebook, i dont see it on the nearterm horizon and dont see these events precipitating Something Like that. I think this is sachings whea s where the numbers here are pretty small facebook, you know, at first i think did the right thing by trying to protect its relationships with its advertising customers and then i think now that theyre in deeper discussions with the government, theyre also, again, doing the right thing by cooperating with the investigation. Okay. Professor, i dont know if i should call you professor, mr. Taplan, jonathan, how about jonathan, thats simple. Do we think in facebooks space, i found facebook anowing im not on the plat norm do they have to run it more like a true journalistic operation or become a big regulatory target a la europe, which claims its going to tax everybody a percentage of their revenues well, facebook revealed that, you know, there were 100,000 worth of ads bought from some russian account but my belief is thats probably just the tip of the iceberg. Just before the french elections facebook eliminated 35,000 fake accounts my guess is that there were probably 250,000 fake accounts being used for propaganda purposes during the u. S. Election sometimes facebook has said they have to kill a million fake accounts a day which is pretty astonishing. So, i mean, the problem for us is that when you buy advertising on a tv network, you have to disclose who paid for it and where its coming from you dont have to exactly. Do any of that on facebook because theyre basically protected by something called the safe harbor law which means that nobody could sue them, even if it was a completely defamatory ad, saying, you know, Hillary Clinton killed an fbi agent, which was one of the ads that came from the russians. So, i mean, this is a kind of thing that wasnt true . Holy moly. And you know, ultimately i think it will lead to more regulation and youre right that the europeans are starting that. Jonathan, you i said that very thing on friday, was pointing out that, you know, ads on broadcast television and radio are regulated by the fcc, federal Communications Commission will we ever see a day when were going to see ads in social media regulated in the same way . What do you think . I mean, why not . Yeah. The federal trade commission is supposed to be regulating both these networks because theyre Advertising Networks they dont do it they didnt regulate google ove the exact same evidence which the ftc had, which the europeans sh sued google for 2. 7 billion over weve had a very lax Regulatory Regime my guess is they will have to start doing this and the very first thing is they will have to disclose who paid for the ads. And that will mean they will have to actually look and discover who bapaidhem doing al this, you know, complying with that kind of regulation, ultimately lower and better for facebook than if it tries to deflect that and maybe face bigger regulatory hurdles later on you know, they do have a long tail of advertisers that areoceu know, advertisers opening accounts and supplying them with information. Clearly, if the Regulatory Environment gets stricter for facebook and google and some of the other Digital Media platforms, then it will create an additional expense, but it sort of feels like its the cost of doing business and the dollars flowing into this space are so robust that i feel like the companies with ill y ies wi absorb it without too much difficulty. I guess it would be rather unseemly if you saw an ad on facebook and at the end of it it says im Vladimir Putin and i approve of this odd. Would be tough jonathan taplan, Michael Graham, thank you for joining us today appreciate it very much. Lets get to the markets this monday. The dow up 66, was up 87 hanging in there with record highs. Luca is with us today from picktat Asset Management at post 9 sitting next to New York Stock Exchange trader steve grasso and jack from ucx is with us from the cme in chicago. Steve, of course, the dow had its best week of the year last week and, of course, it continues higher today trend is your friend, right we havent had a 3 pullback, even a 5 pullback, in when we have a 1 pullback, it feels like were at a bear market so everyone just jumps right back on, you buy those dips, still in the buy the dip mentality. If we were to have this conversation a couple hours ago, we would have been talking a iiu the trends and how the markets keep moving over those big numbers, big fat round numbers 2,500 in the s p cash. Funny how it closed right on that number on friday, right everyone shoots right for it, all the open interest staggers around those numbers we see this latest bit of hit coming on facebook as you guys introed, a lot of large cap tech names are coming under fire. People are looking for cover somewhere else does that last a week . Safe harbor, ironically. Does it last a week, two weeks . Is it a trend thats starting . I dont think so i think youll see shortterm weakness and the bulls will get back to running again. Having said that with the shortterm weakness, the market is still, to your point, bill, hanging around record levels. This comes from jim brown of option investor. The second longest streak since 1928 that we havent had a 3 correction its been ten bhomonths beaten y by an 11month streak in 1994. Luca, what does that say to you . Were obviously in a bull market we have strong growth globally if we look around the globe, only three countries going below trend, the uk, brazil and south afri africa stronger growth. No inflation we have Central Banks i think its still a very solid background for equities. Just throw darts at the market or are there particular seconder others we still like tech. Reducing our weightings there because the sector looks to us a little bit overbought. From a geographical point of view, we prefer cyclicals marke like europe and japan. Yields going up at least today and the dollar bounced a little bit does anything of that have anything to do with the fed meeting this week . I think its basically Short Covering or covering the positions people have had on youre right, bill, this is a week where people are going to be paying very close attention to the dollar. Not only do we have the fed, we have the bank of japan, theresa may, starts tomorrow with President Trump speaking at the u. N. All things that could move the currency markets lets face it. The currency markets are whats been moving the entire stock market look, it feels as if a lot of the easy money is behind us. You know, when you look at a trade, usually you divide it up into easy money then tough money. Starting last november we saw easy money until about july or august of this year, and then, of course, it started to get a little l tough. These incremental new highs were making is like a death by a thousand cuts for those who are short the market theyre not really convincing. Worse yet, were seeing so much pl complacency in the market. Last week, we saw intraday volatility for the s p 500 went under ten, levels we havent seen in a long time. Right. This tells me the market is going up with no worry at all and thats something to be concerned about. All right. All right, guys, thank you. Appreciate it. Luca, steve grasso, jack, thank you, all, for joining us today 48 minutes left in the trading session here the dow, as we established, in record territory so is the s p and the nasdaq has fallen a little bit here so we cant count that as part of the kbrgroup. Cool kids. Northrop grumman, how this could be with geopolitical tension with north korea increasing by the day. Intel is expanding its reach to Autonomous Vehicles after reaching a partnership with the waymo unit Brian Krzanich tells us about the deal in an exclusive interview. We love to hear from you, reach out to our show on twitter, facebook. Send us an email. Youre watching you cant do it on kellys facebook account because it doesnt exist youre watching cnbc, first in business worldwide stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise shares of defense contractor orbital atk soaring today up 20 right now after being acquired by Northrop Grumman for nearly 8 billion Morgan Brennan has details right now. Morgan reporter thats right, n Northrop Grumman buying them, expected to close the first half of 2018. It will keep orbital initially as a standalone segment. Shares rocking higher up 20 Northrop Grumman also up 3 on this news. Thats because this will expand northrops reach in space, missiles and Missile Defense these are three key areas poised for big growth thanks in part to north korea. But it also raises questions about whether the government will okay the deal remember, defense is shilly regul highly regulated already very consolidated sector guys, im going to toss it back over i hear you might have some breaking news. We do here is President Trump. Thank you very much, everybody. Its a great honor to be the president. Great election victories of alltime ill tell you, that was an exciting evening i must say i watched every moment it was a very, very exciting time hes doing a terrific job in france hes doing what has to be done hes respected by the french people i can tell you hes respected by the people of the United States. So we have a lot of things to talk about well be discussing many different elements im not sure we should discuss all of them with the media theyll probably know before we know i want to thank you all for being here i want to thank your representatives for being here and we will have very productive meetings france is a great country, a beautiful country. I wont soon forget our dinner on the top of the eiffel tower, we really got to know each other and our families thank you very much. Thank you thank you, everybody i will say a few words i feel very comfortable with what donald said ill say a few words in french for french people here [ speaking french ] i dont speo well break in at this point, neither does President Trump apparently. I thought he might have been getting state secrets for a second until i realized what was going on. Obviously this is in new york city we got the u. N. General Assembly Meeting this week and see the president there with french president macron lets bring in eamon javers. Going to be a very busy and mementos week for President Trump, isnt it . Reporter absolutely, bill, such an interesting relationship with Emmanuel Macron with france, beginning his relationship with macron in brussels earlier this year remember the scene of the infamous handshake, both men seemed to be trying to outshake each other in terms of the grip and grin moment politicians often have macron seemed to be braced for the president s tough handshake style. Then we saw the bastille Day Festivities over the summer where the french president invited President Trump to france had him tour the military sites. Some of the historical sites watched the parade on bastille day. The president seemed to really click with macron in a way that surprised a lot of observers around the world because these two men are so different in age and temperament, in politics and almost Everything Else there was the famous moment on that trip where they appeared to be Holding Hands for some period of time. Which surprised a lot of observers as well. Obviously, another warm encounter between the two leaders today. So, interesting geopolitics here but also interesting personal politics here between these two leaders. Well watch for a lot more of this later in the week the president s big speech at the u. N. General assembly is tomorrow and well wait to see what his message to the world is, but the white house has told us that they know that World Leaders highly anticipate President Trumps first speech to the u. N. General assembly tomorrow. They know theyre going to be under a lot of scrutiny from around the world well see what the president s message is when he delivers the address tomorrow, bill. All right, eamon, thank you. Reporter you bet. Now a not unrelated news, we were speaking about the defense deal today with Northrop Grumman buying orbital we have a big defense contractor buying a rocket company. Roman is an air defense policy analyst and hes here to weigh in roman, im curious why orbital is still trading 2 below the all cash price being offered for the company. Well, i think theres a little bit of question about the regulatory process, how dod will look at this theres been a number of sort of semibig transactions along these lines that the company will look to and certainly in its discussion with the regulators theres not a lot of degree of overlap between the two companies. And really orbital atk fills in some niches for Northrop Grummans portfolio, particularly growth areas youve already alluded to. So Morgan Brennan was just saying, starting to say, the reason why northrop would be guyigu i buying buying this company for the space and Missile Defense. Which to you is the biggest opportunity or does it matter . Twhactually i think theyre t areas that are likely to grow over a period of potentially decades. I mean, north korea Missile Defense is front and center right now, but, you know, over the last several years, you know, in particular the u. S. Air force has gotten very concerned about access to space. Whats going on in terms of satellites and the able of countries like russia and china to actually destroy satellites so i think, you know, while north korea and iran have raised this issue of Missile Defense, theres even a larger discussion going on inside the pentagon about the u. S. Vulnerability in space and some of the things that we need to do there so this really, you know, when you look at Northrop Grumman, people think about its unmanned systems, won the b21 bomber program, has a large chunk of the f35, this gets it into two segments that over a multidecade period are going to grow substantially. We showed a lot of other major defense contractors most of which are positive today including raytheon boeing, does business in here is higher, too if the market doesnt think theyre going to be negatively a afe affected or not trading them that way, do you think they sort of look to orbitals style on acquisitions in the years ahead . You know, its interesting because the way that the market has consolidated over the last couple decades, theres trarealy sort of nichey acquisitions to kind of go after you saw that with lockheed perhaps the United Technologies collins. I would say in the oa category, theres one company out there, aerojet, you know, it was up substantially today. I think its the sort of pepsi to oas coke in terms of munitions, propulsion manufacturing. But, you know, oa is a critical supplier to raytheon and lockheed as is Aerojet Rocketdyne interesting dynamic that needs to shake out in terms of these suppliers the tier 1 suppliers, raytheon, look at oa as a potential vendor for programs while northrop, itself, is a tier 1 competitor. Theres aerojet up 7. 5 today. I like the coke and pepsi a n analo analogy. A good one. Roman, thanks very much. Thanks, have a good day. 35 minutes to go dow up 72 points today above 22,300 the s p is up three to 2,503 the russell l is the outperfo outperformer, a ninepoint game. A new report finds how devastating the Amazon Effect could be to the nations Shopping Malls weve got some eyepopping numbers on that next. That was eyepopping. Plus bitcoin, speaking of eyepopping, down 15 so far this month even with todays bounceback well talk about that bounce and whether it can continue, coming up hey, im the internet i know a bunch of people who would love that. The internet loves what youre doing. So build a better website in under an hour with. Gocentral from godaddy. The internet is waiting. Start for free today at godaddy. Keep your insights from prying eyes, so they wont be used by anyone but you. The ibm cloud. The cloud for enterprise. Yours. This is really interesting, the fate and future of the Shopping Mall dealt another body blow today the Credit Rating agency, fitch, issued what it called the intense Apparel Retail stress test and in it, fitch is now projecting that 400 of the nations 1,200 malls, that would be a third of the malls, could close and, of course, amazon is in large part to blame for that. Yeah. Who else, fitch assumes amazon will take 25 of the retail Apparel Market by 2020 25 up from 7 this year. Wow. Fitch also said in a major shift in the mall landscape would drive revenue decline of 25 or 60 billion for all apparelbased brick and mortar retailers. That would put severe pressure and force store closings thats how you get to those mall closures. This on a week when were told toys r us, once the biggest toy retailer in the country, may have to file chapter 11 as early as this week. Talking a moment ago about how mattel is the worst performer in the nasdaq today. 5 , 6 decline, taking that to its potential end there. I think mike santoli put it well, the market sees theres no mote around these businesses now and punishing them severely for that. What a year this has been for retail zblmplgth we. Were on the half hour lets get to cnbc news update with sue. President trump meeting with israeli Prime Minister netanyahu at the united nations. It was the president s first oneonone meeting of the day. President says hes optimistic about the chances for a middle east peace breakthrough. Were going to be discussing many things, among them peace between the palestinians and israel will be a fantastic achievement. And we are giving it an absolute go i think theres a good chance that it could happen House Minority leader nancy pelosi was shouted down at a San Francisco event by young immigrants protesting her conversations with President Trump on immigration policy. She was barely able to speak over the chorus of chants including shouts of undocumented and unafraid and at one point she simply said, just stop it. Floridas state insurance regulator says policyholders so far filed nearly 2 billion in claims to insurers for damage from hurricane irma. The estimate is based on preliminary statewide data that insurers filed with the state. Youre up to date. Thats the news update this hour back downtown to you guys, kelly and bill im over here on the floor with matthew from virtue financial, we head into the close, to talk about the rally that persists against all naysayers. What ydo you make of it . You need naysayers to have a rally. Everyone out there was shorting it were starting to hit the alltime highs its a grind thats what it is. We havent seen explosive days to the upside. Grind it out, grind it out, gri grind it out. Its been that way for a while, months and months, years weve been talking about how you shouldnt short a dull market. The selloffs have been steep those rebouchbds are stends are. Keeps going from sector to sector thats whats important. You havent missed a whole lot i saw you guys were talking about biotechs they were down earlier last year. Now theyre huge up everyones ongou jboard. Another sector rotation. Real quickly, do you think the faang trade is in danger its certainly suffering a little bit, thats a rotation, again, weve been so active in the faangs, a staple of the portfolio, seeing retracement in them lets see if people pile back in here at some point the vix ticking below ten today. That was a surprise. Everyone keeps talking, when it goes below ten, im going to buy, going to buy, going to buy. It did today well see what happens. Matthew, thank you. Well let you get back to it bill heading to the close with 29 minutes left here the dow up 70 points. Record territory hulu has become the First Streaming Service now ever to win an emmy for the outstanding drama category that is the big emmy, itself, but up next, were going to look at whether hulu can continue to compete with the likes of netflix and amazon despite this big victory and then later, intel Ceo Brian Krzanich will join us in an exclusive interview to talk about the chip maks berig autonomous driving deal with alphabets waymo thats still to come 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. The greatest population shift in Human History is happening before our eyes. Sixty to seventy Million People are moving to cities every year. At pgim, we help investors see the implications of longterm mega trends, like the primetime of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure, and emerging markets. Partner with pgim, the Global Investment management businesses of prudential. As you no doubt have heard by now, hulu certainly made its mark at the program last night handmaids tale walked away with the big one, outstanding drama series. Hul,u, what do these moves mean for the number three streaming service coowned by disney, 21st century fox and our part compa parent company, comcast . Joining us, cofounder of g geoflix, is it, mark ill begin with you. Netflix is spending in comparison to netflix. Hulu is spending pales in comparison how significant are the emmy wins very significant. Brings a lot more attention to hulus original content, will bi bring more top actors and talent creators into hulu, in and of itself may be the kind of program like house of cards was with netflix that draws people in and draws subscribers and draws a lot more interest. Jim, clearly hulu found lightning in a bottle with the handmaids tale. Wildly popular, wins the big emmy im stunned to find, though, sympat though ta though, they well, theyre way behind. I mean, i think the question about hand maid, agree, its a great thing for them, gave them visibility, will attract people. You have to ask was this a little bit of a fluke . This was a, a very good show, b hit a political moment that really appealed to emmy voters can hulu replicate this . I dont know you know, it hasnt made its mark in original programming i think what we now realize is original programming is what this game is all about netflixggressively in that direction amazon hulu is way, way behind. Announcement of 2. 5 billion sounds impressive. Amazon is not far behind if they want to up the spending rates, they can open their checkbooks are the hulu parents really willing to do that oh, by the way, theyre also way behind hbo when it comes to original programming way ahead. Distributes cable, but also is doing streaming. And then you got disney, you know, one of its owners, is coming into the streaming world with its own services coming up. So its facing new competition and intensified competition fro. I think its going to be a very tough act to follow. Although, mark, one distinguishing factor about hulu, it does offer live tv as a platform perhaps for its owners, they are trying to sort of say, hey, look at the shiny object in the tae way, subscribe it us over the top. Thats the distinctive factor theyre trying to promote, have show time, hbo, Live Programming and trying to suggest that customers should come to them if they want those original packages and content and licensed old Library Content from parent companies. Thats the distinctive factor theyre trying to get the market to accept. Mark, what about i mean, hulu is only in the United States you well know what it takes to penetrate china as a market. Are they going to be able to do that with any great degree here do you think highly unlikely in the near or midterm netflix has basically given up on china other than small licensing deals. Very hard to get into china. Chinas like that pot of gold at the end of a leprechauns rainbow. You cant really you think its there, you know its there, you really cant find a rainbow. The path to it to get to it. I thought netflix was very smart in saying were going to do International Expansion but not with china china is very hard to get into dont forget hulu had an operation in japan that didnt go very well and wound up selling it to japanese owner. Anything youd add, jim one good thing for hulu, its so small now, it has a lot of potential growth here. This isnt like you substitute one product for another. You may subscribe to netflix, amazon, say, okay, ill add hulu they can grow to 130 million, 140 million subscribers. The question is how many of these things are people going to pay for . Realistically, i dont know that more than two or three is going to make the cut. Jim stewart proving once again the old hollywood adage, youre only as good as your most recent hit were already saying can they do it again i hope they do. Its a great show. We can benefit from more content. The odds are like. Jim, mark, good to see you both again thank you very joining us. 20 minutes to go and the dow is hanging oh, its not even hanging on it is moving higher. Yes thats the high for the session right there unless we hit it a moment ago. 87point gain for the dow puts it at 2,254 equifax seeing a shakeup this weekend may be too little too late as several state governments are making new demands on the company. Were going to speak with connecticuts attorney general George Jepson ahead. And last week at delivering alpha, legendary investor Julian Robertson told kelly about the challenges facing hedge funds and today comes word that yet stother hedge fund is biting the duwe have details coming up. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. So they called the fire, yodepartment for us. Clearly, my first truck was on the scene within five minutes. I am grateful we all made it out safely. To protect what you love, call 1800adtcares 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. A recent surveyentitled Hedge Fund Manager outlook was that not optimistic about Fund Performances for the remainaindr of the next year. I love how the anodyne titles always hide the knife. As we roll into fall, theres another hedge fund shutting down leslie picker joins us with the details. Reporter pine rivers Flagship Fund the latest victim in the struggling industry im told by two people with knowledge of the matter that its shutting down after facing about 700 million worth of redemptions. That would be about 70 of the remaining assets in the fund so the firm decided to shutter it after 15 years. Performance for the fund had been in the black this year up 1. 7 through august. Performance was also positive in 2016 both of those, of course, still trailed the s p 500. Pine river still has other funds, including several permanent capital vehicles this is, as you mentioned, just the latest in a string of closures it follows hugh hendrys announcement last week hed be closing his first eclectica and andy hall announced hed be closing astenbeck. The city saw findustry saw fewe sures during the Second Quarter. Fell to 222, decline from the prior quarter and same quarter last year. At the same time, hedge Fund Launches totaled 180 compared with 170 during the Second Quarter of last year and it harks back to something Julian Robertson told you, kelly, at last weeks delivering alpha, said one of the key issues plaguing the industry right now is competition and pine river is just the latest to succumb, guys. Tough out there yeah, i mean, you would have thought were through it by now. No. Leslie, just real quickly, feels like this dribble continues, dont you think there are years when it accelerates, but doesnt feel like were through it yet. Not at all. And, you know, digfferent reason for the closures andy hall cited algorithms, no longer as a fundamental manager compete with the computers youre seeing redemptions. Other people have Different Reasons for shutting down. But the fact of the matter remains that assets within the Hedge Fund Industry continue to climb, theres 3. 1 trillion in this industry right now. So despite the closures, despite the underperformance, theres still interest its a matter of almost a darwinian aspect of weeding out the good from the bad, kelly. I can hear jack vogel now, if they had just bought an index fund and held, theyd still be in business. Buffetts famous wager. Yes. The list goes on. Thank you, leslie. Reporter thank you, guys. Were heading to the close with 14 minutes left in the trading session here the dow off its highs of the session up 78 points the s p up 4 both in record territory i guess the nasdaq is as well, up seven. Shoe makers in forav of jimjim jimmy choo, takeover by michael kors next, the bulls and the bears. Stay tuned your muscles look good, but we should be seeing more range of motion. Im fine. Okay, well lets see you get up from the couch. Im sorry, what . Grandpa come. At cognizant, were uniting doctors, insurers and patients on a collaborative care platform, making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading companies see it and see it throughwith digital. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested affordable luxury retailer michael kors today closed on the 1. 2 billion deal to buy luxury shoe maker jimmy choo, both names trading lower as you can see. Joining us for a bull bear debate on luxury stocks, liz dunn, founder and ceo of proforma inc dana, ceo and chief research officer. Good to see you both welcome back. Thank you. Are you the bull or the bear . Im supposed to be the bull. In this case. I am, in fact. Well, i hope so why . Well, i think that Luxury Brands have a lot of opportunity going forward. The Luxury Consumer is in great shape. I like this move of Luxury Brands like michael kors going out and buying other things they can exploit, they can expand, they can leverage. Many of their backoffice operations i think thats a good move for kors. Dana, what about you . Youre not so psyched about the sector i think overall when you think about the luxury goods companies, there are stocks and there are companies. They had a really good first half of the year theres tougher comparisons in the second half of the year. Youre going to see some of those International Companies overall. Tough to compete against some of the numbers they had in the first half of the year i think acquisitions, they need to be accretive, takes time to make that happen certainly the International Side of the business is more challenged than the domestic side what do you want to take on there . Yeah, i mean, kors isnt my favorite name. I do think they overpaid a little bit more jimmy choo but nonetheless, i mean, i think dana is talking about many points that are nearer term, difficult comparisons. Im sort of backing up and looking at it a bit longer term. I think these are Better Companies over the long haul than many of the retailers that sell them. And many of the retailers that sell nonLuxury Brands. I think they have more opportunity, have global businesses, can play in other categories now youre starting to see a little by of a 2. 0 version of their businesses where theyre not overdistributing core brands talking about kors and coach. Right. Really kind of pulling back on the distribution and saying how else can we bring our power to bear across maybe a portfolio of brands . Dana, coach and kors specifically, how do you feel about their prospects . I think the prospects for kors in the near term overall, they have to get their core business Generating Positive comps again. I think theres certainly definitely the aptitude in order to reenhance, reignite the new Product Offering i think thats going to be a key. I think coach in the near term overall can pose some better comps because of the newness that they have certainly, the selena gomez bag doing well but i think over the near term, theres more opportunity in coach than in kors i think joefoverall the luxury s seconder, there could be opportunities in some of these names. If they pull back given the valuations theyre trading at currently. And, i mean, youre not a bull across the board. I mean, last time you were here i think you were talking about tiffany. Yeah. There are still challenges there. Im definitely not a bull on tiffany. Tiffany has big challenges i think they really need to r reinvent their brand they havent dont a pulling back live youve seen of kors, coach, ralph lauren. The companies have been for a year or two pulling back on distribution, Closing Stores in some cases, pulling back on wholesale distribution tiffany is more about tiffany stores and their brand. Exactly with coach or kors, whatever, they can make these acquisitions and expand their product line. Wheres tiffany going to go . I think tiffany dabbled in watches and theyre talking about expanding their home line and, you know, theyre trying to do things but theyve got this one brand and are trying exploit it in multiple categories and cross multiple geographies but dont have sort of a price point play and certainly not making acquisitions i dont think they have any plans to do so. Dana plus its just sold in their own stores. I lad to look had to look up gomez coach bag after all the talk okay its a nice bag. Uhoh. It comes in red right. Is this going to be a onetrick pony for coach or start of something bigger for you . I think its a little l bit something bigger that will happen im sorry. Go ahead, dana. You first. I think its something a little bit bigger because i think one of the things were seeing from Luxury Brands, social media and the power of social media, they need to integrate that into their advertising and marketing. One of the things you havent seen happen is you need to see some of these luxury goods players adopt digital, adopt social media i think that advancement wild help power sales marley f s pay for some international brands. Look at burbury looking to reinvent itself after it had the check pattern so long. Right right. I think selena gomez is brilliant. Follow especial media, theyre going along with her jump ourne endorsement of the brand its brilliant, she has one of the largest social media followings of anyone out there. How about this kidney transplant she had over the summertime i didnt her bes clearly not following her on instagram. Imagine it, im explaining a story about selena gomez always good to see you both. Tnk you. 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The name to remember. slow jazz music fly me to the moon and let me play bell ring 2 1 2 minutes left as we head to the close, the dow up 67 points and start with as we pointed out earlier, had its best week biggest gain, a weekly gain, for the year last week no pullback today. And that included, by the way, the expiration we had on friday and you often will get a move the other direction the following monday it hasnt happened we were up 87 at the peak today on the dow up 67 as we head toward the close right now. Yields along the Treasury Curve going up a little bit as we get ready for the big fed meeting tomorrow and wednesday nobodys expecting a rate increase, but were looking for guidance on what theyre thinking about as terms of inflation in the economy and Interest Rates down the road wti and crude oil, sevenweek high as demand continues to increase as they bring more refineries back online. A very interesting story today bob pisani, ill bring you in on this one, with talk now that toys r us, the once behemoth in the toy retail industry, is getting ready to file chapter 11 maybe as early as this week. Thats taking a huge toll on some of the big toy makers mattel, the biggest decliner among the big cap stocks today. Another potential company affected by the amazon story and this just keeps going on and on now we hear talk about amazon maybe getting into the television business. We talked about that today buying up some niche small tv channels. Who knows what kind of programming they could put in there and sell all sorts of new goods to them to the public as well i think the important thing about today is we got nice moment momentum, we were over the psychologically important 2,500 level. We also saw modest move up in yields here. The yield rally has been going on for a week and a half now bank stocks have moved up on that as well yet, bill, i cant believe the fed is going to talk serious about any rate hikes at all, maybe not even december. Three hurricanes in the atlantic, is that not remarka e remarkable who knows what effect that might have even modestly on the u. S. Economy overall. So, again, another new high today. For the dow, for the zch as nasdaq stay tuned ceo of intel joins us to talk about Autonomous Cars in the future wait million you suntil you seen up on the second hour of the closing bell with kelly evans see you tomorrow, kell. Thank you, bell, welcome to the closing bell, everybody, im kelly evans. A spate of record highs today. The s p 500 adding a few more points today nearly four to close at 2,504, new record high for the market how about the dow . Double the gain in percentage terms, 65 points higher for the second to close at a nice cosmic number of 22,333 the nasdaq composite i believe not in record territory, still gaining a tenth of a percent there. The russell 2000 ten points shy of its prior alltime high the small caps the best performer today. Well get into those in just a moment again, the dow and s p closing at records in the session today. Now we got intel announcing a new collaboration with waymo, alphabet division, to power selfdriving cars. Intels chief executive Brian Krazanich is going to join us in a cnbc exclusive this hour to discuss that be sure to stay tuned for that looking forward to that. Joining us on the panel, cnbc market commentator michael san, to li. Bill, ceo, see everything o of smid youre doing pretty good. Were doing okay. Number ten . In the top ten. In the top ten. Yes, thank you. Thank you very much. Michael, i hike how you put it today, you said the market is like watching lava run uphill. Which i mean its impressive that it is doing that because it isnt usually supposed to do that but after a while, it gets a little bit boring. It seems like the default mode of this market is almost no matter whats going on, the market goes up the question is how it gets there, what story we tell ourselves of why its doing that the biggest five stocks in the nasdaq today all down on the day when most nasdaq names were up banks up 1 . Semiconductor stocks such as faang, microsoft, apple as well in there, semiconductors up more than 1 and finds a way to stay on track. Nvidia, amd were the best performers was that on the upgrade . There was an upgrade and rotation to other growth names biotechs also been a recipient of all that. Plus we sort of seem to want to reprice the february rate hike in december today, upward, and that helped the banks. All right we have citigroup breaking up through 7 actually. I like to think of it just multiples of ten you know, that would have been 70, you know just as a way to think about how far these names have come, and if theres any further room for them to run, do you think . I think in bank stocks there is further room to run mike is absolutely right, this is all about Interest Rates. The same old story of Net Interest Margin when it koms down comes down to it Companies Impacted by deposit streams do well when theres talk of Interest Rate increase i think for financials, i think theres opportunity for selective yeah. Bill, also, today, the best performer in the dower was c was caterpillar. Upgrade. Interesting how well it responded to that and the idea that maybe the cyclical environment is coming through to support it what are your likes in this market, what do you think can kind of take us from the records were already setting, you know, to new highs yeah, i like what mike santoli talked about today was fascinating because the faangs dropped and the antifaangs dropped. Normally we have this environment where were excited about target, were excited about walgreens, you already reported on your show today that fitch thinks that onethird of the malls are going to die so on days that amazon and netflix and those stocks go down, normally you see a bounce in the antifaang stocks and today both of those such as went down and it got overshadowed by the banks and the fact that lets all remember, the flood and the hurricane are going to create a huge public work s project in effect, right . What was already a pretty good economy got negatively impacted in the Third Quarter and then the next 12 months are going to be positively impacted by the aftermath that would explain, like you said, cyclical action, the banks with better yield spreads. Yeah. And some other economically sensitive things that are responding positively because they know that theres billions of dollars to spend, putting two of the most popular states in the nation together. Speaking of things running backwards, citi over 70. Thats right. I knew i think we all knew. Its really important you say that someone just had a heart attack at home. I apologize, as i have to do every day. Lets bring sally in, shall we focusing on personal finance and investing for women, is announcing today it has raised 34. 1 million in its latest fund rai fundraise joining us is ceo of the company. Thank you. Good to have you on board what do you do with the fund 34 million. What does that mean . We raised money, we got a great response from the women engaging with us when we started this a couple years ago, women dont want to invest, cant get them to invest, women are a niche market, it just isnt big enough women control 5 trillion of investable assets. They control with their spouses and partners another 6 trillion were the digital adviser focused on them. Theyre beginning to invest with us its of course still early days. Were a startup. Theyre asking us to do more. You got Venus Williams involved what is she we got a fantastic group of investors. Venus williams is one of them, Mellody Hobson is hoot we have investors who really care about our mission rethink impact which invest, a missionbased, gender lens investor salesforce, so instrumental in closing the gender gap at salesforce. Com penny who did work for women within the Commerce Department it was important to me that we bring in investors who were really aligned with what we wanted to do and really believe in our mission. I like, michael, if you can help us, situate these developments within the markets. Yeah. I mean, obviously the trend toward the digital advisory platforms where basically you plug into a smart way of having this automated engagement with the markets is pretty well established. I think the question i actually have for sally would be, you mentioned some of the pushback you get, right in terms of the general opportunities in the market. But what about from an individual female investor perspective, what is different about what they need, or what the platform is going to do relative to, you know, i mean, all moneys green so why does it matter well, look, you know, what i would say is when people say they dont need their own thing, women dont invest as much as men do and it costs women hundreds of thousands or millions of dollars over the course of their lives. So we do things for them like forecast out that they live longer super important for Retirement Planning that their salaries peak sooner. Really discouraging but super important for their planning as well as more subtle things like the fact that, you know what, theyre goal based they arent watching a lot of cramer at night and talking about their stock picking. Theyre much more about i want to retire well, toipt bi want t home, how much will that cost, what are the tradeoffs i can make and can i get there ill push back on this whole notion that there isnt a marketplace for women investors. Yeah. I am ceo of an Investment Advisory company tremendous numbers of women that were working with, women that are either divorced, perhaps theyre widowed, happen to be single whatever it might be and women who actually control the Household Wealth even if theyre in a marriage. 5 trillion. There are many advisers and many firms that do well, but what still is the case is women keep 70 plus of their money in cash and so theyre losing out. And so thats very true. Overall the industry has been much more geared toward men. Love men love them. Been married to a couple of them think theyre amazing. Theres a but coming. Well, however, in an industry that has 86 male Financial Advisers, we hear from a lot of women, you know, i dont see myself there with high minimums, im not able to reach that minimum. Right . Bill something isnt working. What were you going to say, bill sally, isnt there quite an opportunity among women Financial Advisers in that, you know, the baby boomers, like myself, that are Financial Advisers and wealth managers, theyre going to retire in thefection five thnext five to ten years. Isnt there a big tunnopportuni for 30, 35yearold women to step in and be a major force id like to say theyre very welcome with smid Capital Management as a stock picker as well. Dont worry, theyre welcome with elevest as well part of what were spending the money for is to bring financial planners, Financial Advisers in because what were seeing, which the big guys are seeing, too, is that people dont want technology or people they want technology and people. Correct. So, look, i you know, financial women financial tha great job, a great career for them we dont have enough of them. Thats very true. Let me wrap this up in terms of the market day as well. Just to emphasize, coming after records for the dow and s p. Michael, havent had a chance to ask you what youre doing for your clients at this juncture. Were not bailing on stocks were a little more conservativ than faang stocks. Kind of boring, but dividend paying stuff, lower duration, fixed income volatility matters were looking for returns but looking at volatility as well. Bill, i wanted to followup with you talking earlier about the antifaang trade, what did you mean by that Certain Industries are supposed to be completely destroyed by the faang companies, the media business, the retail, nonnetflix, nonamazon Consumer Discretionary has been getting crushed and when its all sorted out, the the place to go now, psychologically, is buy where everyone else is scared to death and thats where the targets and the walgreens because you know, theres rumors that amazon was going to get into the farmsy business well, its great to say that from a regulatory and logistic standpoint, that is a nightmare that they havent yet taken on all right everybody, thank you so much sally, congratulations. Thank you. Congratulations. Phil. And michael. For all joining us today. First congress had equifax in its sights. Now the companys giant data breach has state governments wanting action up next, well talk to attorney general george jeps sonjepsen ar want from exfquifax. We always want to hear from you, contact the show via twitter, facebook, or send us an twitter, facebook, or send us an email closingbell nbcuni. Com youre watching cnbc, first in business worldwide bought our fe together in 2010. His family had used another insurance product but i was like well ive had usaa for a while, why dont we call and check the rates . It was an instant savings and i shouldve changed a long time ago. Theres no point in looking elsewhere really. Were the tenneys and were usaa members for life. Usaa. Get your insurance quote today. Throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right financial advisor, life can be brilliant. Ameriprise welcome back equifax is continuing to feel the heat regarding its massive data breach including top executives leaving on friday, several attorneys general wrote a letter to equifax asking to stop checking fees for credit monitoring. Conn, george jepsen. More on what he wants from the company and its competitors, were joined by mr. Jepsen, connecticutss attorney general. Thanks for joining us, sir. Great to be on. Several states going after this company how do you guys talk mojs yourse amongst yourselves to figure out whats going to take the lead . We Work Together on these National Issues and early on when the breach was disclosed, two weeks ago i think, connecticut, yil yillinois and pennsylvania a. G. S pooled and wrote equifax, later joined by washington, d. C. Tox find out exactly what happened and what was being dont to correct the situation. It became clear to us over the course of the following week at the rollout was in some respects botched and we reached out to fellow attorneys general on a National Basis and we had 34 of them signed on to a second letter which made specific requests from equifax. Especially in the area of not charging consumers whose personal information has been compromised shouldnt be paying for the mitigation of that loss. And so there are a couple areas in which equifax is charging consumers. And so how does it work at this stage of equifaxs response to all this that the attorneys general are attempting to guide the process of how they rectify these things on a customer basis. I mean, is there also another is it the same effort that would try to hold them accountable in general, for this, this whole breach yes, this is not uncommon we collectively investigated target, home depot, anthem and other breaches they corrected some things there was some confusion as to whether buy signing up for free credit monitoring you were waiving your rights, your legal rights, for example, class action lawsuits. Thats been clarified. No, you do not waive your legal rights for example, while free credit monitoring is available to consumers, they have not disabled their link to a feebased credit monitoring service. We just checked it on the car driving over to the studio here, and if you go to the wrong box, you dont get the free credit monitoring, you pay 17. 95 a month. Theres also yeah, i was just going to say, i noticed that you guys also have an issue about whether the security the credit freeze theyre putting if plan complies with the law. Is that right . That is correct the big thing that were worried about is while if you want to get a security freeze, which means that nobody could open up credit in your name without the bank or whatever it is checking with you, well, thats for free from equifax if you extend that to other Credit Monitoring Services like transunion, experian, youll be charged for them usually, like, 12 to put the freeze in place. 10 to put the freeze in place 12 to remove it and thats not right its just wrong that consumers protecting themselves due to equifaxs negligence should be on the hook for those kinds of fees that can mount up. And just before we go, i mean, how far do you push this, are you looking for the company to pay fines to your state, looking to give money to consumers for relief or prevent them from some of the practices youre describing . The first step is protecting consumers and doing Everything Possible to mitigate the risk for consumers to have their compromised information actually being used the second step is really to find out exactly i cant comment on what fines might be sought until we know exactly what happened. There is theres reason to believe that equifax failed to they a patch to where the breach occurred became available in march of this year, and the breach occurred in may they had two months to fix the issue once it had been identified on the National Basis and did not do so. At least thats what weve been told. Mr. Attorney general, thank you for joining us today. Thanks for having me. George jepsen, attorney general of connecticut senator Elizabeth Warren will weigh in on the equifax data breach and her legislation shes pushing tomorrow on cnbcs mad money with jim cramer at 6 00 p. M. Eastern. Meantime ryanair facing a big air for flight cancelations. How much the Discount Airline could be paying is up next in todays fast take. Coming up, were following the bouncing bitcoin its up, its down, its up again, even as china cracks down on the cryptocurrency. Well look at bitcoins volatility coming up 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. Its your business of the week when disaster strikes, will you be ready robert rising, owner of new york slab, wasnt a fire tore apart his Custom Furniture shop and he lost almost everything when he discovered he had the wrong insurance. Find out how he rebuilt his business watch your business weekends at 7 30 on msnbc sponsored by American Express open helping you get business done. 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. It is time now for fast take. Today. We begin with a vacation snafu that is causing ryanair to cancel dozens of flights every day for the next six weeks michael, the airline apparently changed its internal calendar to end of december instead of march. So the Budget Airlines pilots are scrambling to take their Vacation Days before december. What do you make of this obviously a clumsy transition also doesnt it seem like kind of an outgrowth of what we knew which was a pilot shortage, companies trying to run lean and have these Automated Systems kind of take care of a lot of the logistics for them so, you know, horrible kind of selfinflicted selfinflicted, they couldnt have foreseen this. Right. And thought, oh, okay, this is sfwoing going to happen, let track going to change the calendar, how would you not let them flex the days if we want a day off, we have to ask two years in advance. For a pilot . Seems like its plenty of Human Interaction in that process. Exactly up next, heres a development that makes me cringe a little the hot new investing class is lawsuits according to the wall street journal, because of the money pouring into the sector, Fund Managers running algorithms, filings to flag possible suits to invest in. Am i wrong to be wary of this . I think on some level, there are aspects of it that maybe were going to be wary of. The one that comes to mind is the idea that just putting money behind one side of a lawsuit can, in fact, affect the outcome. Maybe it seems like a little bit of a selffulfilling type of asset class. This is not new on the scene, success is why its attracting so many more funds. I noticed in the article, they said while this traditionally goes to prosecutorial types of suits, its starting to flow into defense as well. Right were talking about corporate disputes that sometimes you would want to pick the side. You could probably abstract it to some theoretical good and say, well, the loser is going to be some kind of a bad actor that interferes with the proper operation of capital so were going to profit from that. I just think the very people who would most decry are society. If you think it shows you obviously also just the scramble for any kind of asset class thats not correlated to the traditional Financial Markets. Thats for sure and finally, heres the hot new market sector this year. Its not faang, its health care tools and services such as sector with names like perkin elmer, up 42 this year, mike you flagged this today. This is just in the course of kind of seeing whats working, whats not and you ask why. Why would it be this kind of very obscure year . I think the market is looking for longterm organic growth stories with some kind of a demographic tailwind i mean, product cycles are long. Whatever you want to talk about. Theyre health care but its not pharma risk, not biotech, drug test risk. Its brilliant in a way again, give credit to the market for having sniffed this one out. Its essentially kind of, you know, the old traditional sell the picks and shovel to the gold rush people. But theyre expensive stocks now. Are too many people hiding in this one area that seems like its got momentum now that you flagged it, partys over. Ill try to come to a conclusion. I look forward to that. Bitcoin is having a wild week but recovered by more than a third since its low on friday. Meanwhile, china announced plans to close exchanges and crack down more broadly and bitcoin is still up 10 today. Whats next for the cryptocurrency and chinas significan significance, next for once ivf time. Whats going on . So those financial regulations being talked about . They could affect your accounts, so lets get together and talk, and make sure everythings clear. Thanks. Yeah. That would be great. Weve grown to over 900 billion in assets under care. By being proactive, not reactive. Its how edward jones makes sense of investing. saved money on motorcycle insurance with geico. Goin up the country. Later, gary i have a motorcycle wonderful. Im goin up the country, baby dont you wanna go . Im goin up the country, baby dont you wanna go . Geico motorcycle, great rates for great rides. Becareally want to be there, but you cant. At cognizant, were helping todays leading Media Companies create more immersive ways to experience entertainment with new Digital Systems and technologies. Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back couple record highs on wall street today a 63point gain for the dow to close at 22,331. Thats a new high for that index on the close s p 500 up 3 1 2 points to 2,503. It first closed above 2,500 last week extending that in the session today. Sixpoint gain for the nasdaq. Nine points for the russell. Agreeing across the board today. Time for a cnbc news update. Lets get over to sue herera. Hi, kelly, thanks so much heres whats happening at this hour, everyone british Prime Minister theresa may arriving in ottawa for a meeting with the canadian Prime Minister justin trudeau. Trade issues are expected to dominate that agenda the british Prime Ministers next stop, new york city, where she will taeattend a session ofh u. N. General assembly. Three people were killed after a new york city bus and tour bus collided this morning in queens. Youre watching Surveillance Video of that. A small fire also broke out when one of the buses slammed into a building that housed a restaurant cause of the crash is under investigation. Seaworld welcoming a new calf to its beluga whale family over the weekend the company says the birth is important in educating the public and conserving the species. But as you probably know, seaworld has been heavily criticized for keeping whales in captivity. A cute little guy. Not sure whether its a boy or a girl yet ill keep you posted. I know, they are adorable. They really are back to you, kell. Sue, thank you. You got it. Sue herera. Hurricane jose is making its way north along the east coast of the u. S and maria just grew to a category 3 storm. Ughlin joins us the latest the latest update will come out, i suspect jose will no longer be a hurricane but a Tropical Storm na for that reason we have Tropical Storm and not hurricane watches and warnings from delaware up to cape cod where we could have a storm surge of two to three feet anywhere yellow areas, delaware, jersey shore, long island, coastal connecticut, this is where we have rainfall totals 1 to 3 inches and winds gusting up to about 50 the bullseye is the red area cape cod and coastal rhode island we could have wind gusts up to 70 miles per hour. 3 to 5, maybe up to 8 inches of rain in a couple of spots. I want to show you the high tide times. Now we have one high tide coming in tomorrow morning. But its really tomorrow evening we think there will be the worst flooding atlantic city, 7 45 p. M. , montauk, new york, 9 04 p. M. Plymouth, massachusetts, 11 36 p. M. Real quickly, lets go back to the maps and walk this way i want to show you what were going to be talking about tomorrow we got maria, 125 mile per hour winds. Gets up to 130 its category 4 if it gets up to 157. Category 5, a direct line for puerto rico and then the question is, how do jose and maria interact with each other one model takes maria directly into cape hatteras, north carolina, possibly up the east coast as a hurricane another model loses jose and kind of combines these two storms into one. About a week from now just off the coast of new england what will happen well, that is what well be working on the next couple of days we can tell you this, major category 4 hurricane about to happen and possibly make landfall directly over puerto rico over the next couple of days yeah. It has been relentless this year i fwguess we were overdue. Steve, thank you very much. Bitcoin fell 15 this month so far ahead, whether it can bounce back, build on its 10 gain today. Intels Ceo Brian Krzanich will discuss the companys collaboration with waymo on Autonomous Vehicles. Thats still ahead uating cnbc first in business worldwide. 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. Thats why a cutting edgeworld. University counts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. 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Or they could get even more. Bitcoin bouncing back bigtime in todays trade, up 9 thats 300 bucks 328 really all this amid chinas crackdown on the cryptocurrency and heels of Harsh Criticism by jamie dimon who last week called bitcoin a fraud. Joining us with more, brian kelly, founder of brian kelly Capital Management and is on the phone because brian, can anyone get around the city today with the u. N. No. The sooner they move that thing out of the city, the better for d. C. s case. Well see if the president has anything yeah. Well, if you have a word in with him, tell him. Yes we will convey that. But tell us what you think of bitcoins rebound today. How significant, brian, is china to bitcoin action in the first place . Yeah, so china used to be very important they used to make up 90 of the volu volume they make up less than 10 of the volume right now china is important on the sentiment issue, in terms of trading volume, its not as important as it was in 2016. In terms of how bitcoins reacting, i think its very positive the news from china is some of the news the stuff that keeps me up at night, you know, a total ban of bitcoin the fact that bitcoin is resilient to that, to me, is very positive for it as an asset. Brian, you say that its, you know, by far the largest source of volume is now japan is that not just kind of the shadow, though, of whats happening in china, basically people trying to move capital out of there you know, its hard to tell to get the exact numbers what is coming from china, thats exactly what china is trying to prevent. I will say in japan, most of the major banks and a lot of the japanese individuals are trading bitcoin. I mean, you know, the japanese individuals are very big spot foreign currency traders so theyre used to this type of thing and theres a lot of demand for it. To separate out to china, im sure some people that are finding a channel to japan, but i would say its probably less than 10 of the volume so if theyre going to do this, is it possible as more of a signpost than anything else . I mean, it is interesting, brian, that bitcoin is not for fazed by this. If china does it, do other countries start to pile on as well look at the bis, bank of international settleles, quote unquote, central bank for Central Banks over the weekend putting out a report saying the world Central Banks need to look at bitcoin and study it a little l more seriously. Yeah, again, this is why big fear early days of the technology, early days of this as an asset class. My biggest fear is you get this worldwide ban in bitcoin the reason why i dont thichnk its going to happen, youve seen other countries particularly the u. S. Move in a bitcoin, cryptocurrency friendly japan, south korea, has a very bitcoin friendly, cryptocurrency friendly regime. The fcc said, list, there are initial coin offerings in cry o cryptocurrency that arent securities the ones that arent currencies are okay to trade. Interesting you interpreted it that way. When i heard the way the s. E. C. And canadian authorities are talking about it seem to indicate if theres any evidence you behave like a security, were going to regulate you like that whether that means were doing this retroactively or not, youre on watch. Youre definitely on watch. I dont think theyre necessarily focusing in on actual bitcoin into dollar transactions and things like that as far as i can tell, its these other vehicles that wrap around it, maybe the s. E. C. Wants to claim some kind of jurisdiction over that. Its fascinating brian, you say youve been encouraged by the way the marke absorbed this measure by china its funny because the bulls on bitcoin love the idea the authorities dont want you to be able to do this, its an outlaw thing, maverick thing. At what point does that get taken too far . Does the price get disengaged from what the technological opportunity is thats a great question and, yes, without question part of Bitcoin Community that wants this to be kind of the jaut louw type of thing. It was designed to resist this exact type thing my view on all of this, bitcoin, cryptocurrencies to fill their potential as web 3. 0, its going to have to have hooks into the normal system. Sb into our regulatory system. I frankly would welcome them regulating these i actually think they should if its a security, walks like a duck, quacks like a duck, regulate it as a duck. All right brian, thank you very much appreciate you joining us. My pleasure. Logistical challenge. Brian kelly. The u. N. Has to just become a block chain enabled network. A distributed ledger. We have a news alert on fed fedex. Lets get to Morgan Brennan with those details. Reporter hey, kelly, thats right, fedex saying it will increase shipping rates effective january 1st, 2018. Fedex express, fedex ground, fedex freight increase shipping rates by an average of 4. 9 . Also notable here, theres some additional fees that fedex is adding it says effective january 22nd, 2018, a thirdparty billing surcharge will apply to Fedex Express and ground shipments billed to a third party. Also the applicable criteria, pricing for packages that require additional handling, oversized or unauthorized will change smart post, weight pricing and over length surcharge of 85 per shipment within fedex freight. That indicates the company which has been saying its looking to increase profitability as volumes increase, it looks like its getting increasingly creative in the ways its looking to do that so of course, all this coming from fedex just less than 24 hours before it reports earnings after the bell tomorrow. Kelly, back over to you. Morgan, thank you the shares arent moving much. Might michael, i was about to go on a long thing how theyre doing this for the Holiday Season but then it said its going effective jan 1st. In general, to have fedex get paid for the inevestments theyr having to make into the infrastructure, leveled to peak areas. Some of it get absorbed by the i ecommerce. Trying to push a lot more through onto the customers to deal with this year and say these are huge things were having to ship more now, more and more is going online we and bear the cost. Good problems to have but becomes a problem at some point. Thats true. Intel is announcing new inroads into selfdriving cars ahead Ceo Brian Krzanich will join us in a cnbc exclusive interview to discuss that. Ahead on fast money one of wall streets big ef bulls says ny hasnt been bullish enough. To dwyer will tell us what has him so excited stay tuned bell ringing upbeat dance music bell ringing . Welcome back intel is announcing the company is collaborating with waymo on selfdriving car technology. John joins us for more on that along with intel Ceo Brian Krzanich in an exclusive interview. John thank you, kelly. Brian, good afternoon. Good afternoon, john. Welcome. So, big announcement from you guys i want to get clarity on the relationship between intel and waymo, what this means for the way selfdriving technology is going to be advanced back in february, waymo made a big deal of the fact that its going to develop a hardware and software for selfdriving inhouse. Youre a part of that, but in your view, is anything changing . How big a part is intel going to be sure. I mean, weve had a deep relationship with waymo for quite a long time. Helping them develop and bring the technology to market and really what were doing, john, is bringing our silicon leadership, zion core, intel infrastructure, together with their ip, their intellectual property, around cetrifusion, how the car sees the world and does the mapping in the world. Great case of two companies coming together bringing their strengths. Absolutely bringing their Artificial Intelligence thin th case, the mapping, sensor fusion bringing the driving and Silicon Technology together. Brian, i also want to ask about Artificial Intelligence. You have an announcement today that intel has invested 1 billion in the a. I. Ecosystem. Nvidia, your rival, has also just been going gangbusters. The stock has, anyway, on a. I. E peckation expectations its tripled in the last year. Bank of america, merle lirill l we expect the chip market to feature one dominant supplier, we think nvidia. Why are they wrong theyre absolutely wrong. When you look at the a. I. Industry, you have to look at, one, its in its infancy, just beginning. The technology is just starting. And rather than a singular solution, like the gpu guys are bringing, what were bringing is really a wide swath of solutions. And so we can go we acquired nirvana for the highest performing technologies. We acquired mobileye we acquired saffron. We acquired movidious we have the largest collection of technologies we can bring to Artificial Intelligence and at the end, we dont think any one of those solutions we can also bring our fp fwrgas. Video analytics and video a. I. Strongest part we use in infrastructu infrastructures. We got a wide variety. Artificial intelligence is not one solution i think the Autonomous Car is a great example. Look whos winning there were winning. You see the waymm announcement, mobileye and intel, bmw, fiat chrysler, vw there are many more to come. So intel bought mobileye and before, you guys did that transaction, mobileye and tesla had a little bit of trouble working together back in 2016 why is this relationship with waymo going to be different . Another, you know, Autonomous Driving Company that wants to control the whole vertical experience you know, i think one of the big differences is the level of engineering and the depth of the capability that you see in waymo and, you know, really they have the most number of miles and the most some of the most advanced technology out there right now with selfdriving and weve been with them for quite a while. Weve been developing this capability with them for some time so this is really, just really solidifying this relationship and really becoming public with it and telling the world that were going to go even deeper. Youre going to see us building Custom Technology for waymo. Thats a bit different from the relationship that was going on between, say, mobileye and tesla which is really a vendor supplier kind of relationship there. I do wonder brian, thank you again for joining us its kelly now. Hi, kelly. I wonder seeing googles ambitions in the chip business already, why cant they ultimately bring this technology to bear . Why do they need you guys long term well, i mean, for one thing, fabs are hard. This leadingedge technology, i mean, Autonomous Cars, and a. I. In general, it is one of the great examples of using moores law, more than anything else and so if youre building a technology for the long haul and you know its going to benefit and really grow by moores law, what do you do other than partner with the company that leads and really drives moores law . And so, you know, i think thats why theyre coming theyre bringing their own intellectual property, bringing the compute and models of Artificial Intelligence for this theyre going to Work Together with our zion but also our connectivity like 5g connectivity again, we have the able ility to bring the technology, when you build one of the cars think about the bumper to the data center. Finally, related to that, brian, a few years ago barons had a front page, watch out, intel, facebook is coming. Facebook has been distracted by a few other things lately. Just with its core social network. When you guys sort of skip ahead from mobile to the next platform being a. I. , how many more different types of acquisitions and deals might you have to make to ensure that intel is a part of that future sure, so right now we think we made the core ones that we have to make so wevedone, you know, the altera acquisition for fpg as and how video analytics are powdered we have done, which are some smaller once and know mobile eye. We think that is pretty much the right mixture to span the technologies that we need. Youll probably see our small tuckins with accelerators, small evens every silicon that we can build in that will add to the Artificial Intelligence capabilities, but i think we have gotten most of what we need now from an acquisition standpoint. Brian, is this Autonomous Car Technology Going to be sort of the skate text case for the new flexible intel it used to be with a pc era and server era, at least, intel developed the High Performance technology and happeneded it on the oems and said here you go, this is as good as it gets now it sounds like youll be customizing the chips to the needs of the suppliers, bringing in the Software Capabilities from mobile eye at the same time autonomous driving, is that the first scale time well see this new model . Actually, its already going in the data center we do tens of custom parts for our various data partners. Some of those are around just big data type applications, some around Artificial Intelligence we have many more of those arrangements and partnerships going into the future, but, you know, on the broader scale, yes, these applications, whether its Artificial Intelligence or autonomous driving, you have to not you cant provide them the complete solution and it rides with a Generic Software like windows or android. Theres a lot of integration between the car, the driving experience, the functional safety you have to have a much more open platform. Thats really both with mobile eye and autonomous driving the Waymo Partnership is a great example, but were doing that in the data center around Artificial Intelligence as well. Gentlemen, thank you both jon, appreciate you joining us for in announcement and Brian Krzanich, you as well thank you. Pet tango is one of the brazells leading the cofounder will join us next with where hes seeing disruptions and opportunities right after this the mercedesbenz gle can help protect you from the unpredictable. And the distracted. Its cameras, radar and sensors can help prevent just about any surprise. Well, almost. Lease the gle350 for 609 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. [car tires screech] [bell rings] sfx tmobile mnemonic sfx netflix mnemonic sfx tmobile mnemonic sfx netflix mnemonic sfx tmobile mnemonic sfx netflix mnemonic tmobiles unlimited now includes netflix on us. Thats right, netflix on us. Get four unlimited lines for just forty bucks each. Taxes and fees included. And now, netflix included. So go ahead, binge on us. Another reason why tmobile is americas best unlimited network. Next week will mark the oneyear anniversary of the passing of former palestinian Prime Minister shimon press. His book was released last week. Hi son is one of the cofounders of pitango himesie joins me are you in town for the u. N. Yes, i am, meeting from sliders from around the world, but also promoting the book. Do you work sort of behind the scenes on the peace process, or do you steer clear . We actually work with the palestinians on what we call Innovation Affairs, not on peace agreements, but were trying to promote some peace through collaboration and innovation. What do you mean by Innovation Affairs thats interesting. That means theres opportunity in the middle east to build a network for internet in arabic just like the chinese built their own chinesespeaking interinert market. This is a great opportunity for the middle east. It calls for support from global prices and foster entrepreneurship that means mobilizing more investments into the middle east in or to drive the growth of the net. Im thinking, michael about the enter net of in arabic. Essentially a parallel internet as opposed to the way it is right now . Just like an englishspeaking market, a chinese one, you have Great Companies in america, Great Companies in china which are completely different markets. The same accounting done in the middle east. Im thinking about emojis used in any language, but the desk stop interface, what is it like with people et cetera priorities in actual usage today . Is it a lot of messaging apps on phone . A lot of adoption or furse behind in the west first of all, arabic is the Fastest Growing lange wang on the internet commerce is, of course, the one that evolves dramatically. We just saw the acquisition of zook by amazon theres new unicorns coming up from the middle east, so i think it is the beginning. When you look at investments, via runs up and down fifth avenue here, so do you try to stick to companies that might be coming out of the Silicon Valley or looking for unkeiating companies . It has such a thriving culture, plenty of opportunities i would imagine in your own backyard. Israel is visiting in new technologies for the global markets. The Arab Community is also starting to participate in what we call the start upnation story, but we believe our mission is not only to work on the global markets, but also try to foster inos investigation in the middle east. We call it the startup region. Is creating more of a cohesive market there . Can you see tangible effects in terms of relationships between israelis and palestinians . Or is this back behind the scenes absolutely. Theres more than you know, but less than we want. It is done without borders its easier to collaborate when you talk about innovation, software, internet than sending goods back and forth, but i believe in ten years the middle east will be completely changed just like the china ears market change fred 25 years ago, like africa is changing this is another region that will change it will take some time. With the final few seconds, what are the prospects for via well, im a proud board member of via. Recently they got major investment from daimler benz, so theres a strategic collaboration between the two companies. I believe that via is actually presenting the right service for commuters in the cities. I know in new york it works very well, so in chicago and washington, d. C. And many others well let you go use it, or maybe i will chemi press, thank you so much. That does it for closing bell today. Fast money begins right now. Indeed it does im scott wapner in tonight for me will issa lee one of the bullish strategists says hes not do not w