Transcripts For CNBC Closing Bell 20170919

We track it. Talking to an official down there. Looks like progress is finally being made in congress on two of President Trumps biggest agenda items, that would be tax reform and replacing obamacare. We head live to capitol hill for the latest details on that. We also have fedex, adobe, Bed Bath Beyond reporting earnings after the bell today, a few days sinces weve had bigger earnings to recover. Well bring you instant analysis as soon as the results are released bed, bath down 2 . Fedex getting ready to raise rates. We begin with Hurricane Maria gaining strength yet again heading right toward puerto rico w wtvj meteorologist Steve Mclaughlin with the latest. A couple days ago the storm was what we call 96l, a big storm in the ocean by saturday 5 00 pvm, it was Tropical Storm marine ya, sunday 5 00 p. M. , Hurricane Maria last night at 7 45, category 5 with winds of 160. That is where we are right now the track right across the Virgin Islands especially st. Croix as a major hurricane, slamming into puerto rico. This could be their worst storm ever if it takes that exact center track as a category 4 or 5 then just north of the dominican republic, just to the east of turks and caicos, then into the bahamas. So lets talk about quhwhat thi storm will be doing over the next couple days puerto rico, 150 mile per hour sustained winds, gusts as high as 180 indications we could see numbers closer to 18 to 24 inches in a couple of spots. 4 to 6 foot storm surge. And even potential tornadoes this is just a giant storm now, lets change up the graphics a little by right now, talk about what else is going on as we switch to our current satellite. See where the storm was. It just demolished dominica. Were getting reports of widespread devastation and communication lines are down so we dont have all the details. It is bad. Well get more on that in the coming days. Finally, real quickly, a look at what happens next. Maria is coming up toward the United States. Jose is just off the coast of new england. Jose and maria will interact does jose push maria into North Carolina do the two systems merge as one . Or is maria going out to sea this is what we think the storm is going to be close in seven days, if youre watching on the east coast, even in new york and boston, stay tuned you might have a hurricane nearby even if it doesnt make landfall well be here all day tomorrow, of course, with updates as we think this storm will be directly on top of puerto rico this time tomorrow and before you go, steve, are you is it too early to say where in puerto rico will it hit relative to irma essentially the same areas or some different location do you think . So irma was much bigger, 185, but it actually went north of puerto rico and never made landfall it was the northern half of the island that got slammed. The track right now is for a direct hit slicing right through the island if anything, san juan is in the cross hairs with the entire island, st. Croix, really need to watch out for this storm. All right, steve, thank you, Steve Mclaughlin back at headquarters puerto rico is still recoveringing from the irma devastation he mentioned now has to brace for maria joining us on the phone is puerto rico congresswoman jennifer gonzalezcolon. Miss congressman, this has to be dismaying when you hear what hes saying now about where this is likely to hit its going to be a direct hit on the island there yes, and actually people here very scared. Weve nef bever been hit by a hurricane of this category before since 1928. At that time, there were more than 5,000 people who lost their lives in that kind of hurricane. So were very concerned. The governor has taken measures. Ill tell you that fema and all the federal agencies in the island are doing a wonderful job moving people and actually we got more than 500 shelters this time and asking people to move and be safe. You can recover property but you can never recover a life do you so at this time, theres still a lot of rain in the island right now and were lo looking forward to having the landfall of maria tomorrow the whole day. I was just going to ask congresswoman, what kind of Power Resources you have we know the last time with the storm not even as bad as this, you guys lost power for months and months i dont know how youre still recovering from irma what kind of resources are available . Actually, we still got more than 70,000 people without power from the last Hurricane Irma and i just spoke a few minutes ago with the fema director and we were asking him to have more resourc resources. In terms of electrical teams that can help us out to solve the situation, and recover dangerous the power grid on the island thats going to be the main issue and the second one is going to be communications some people are saying that we may we may lose our communications during the storm. The airports and the ports are going to be closed today at 7 00 p. M. Eastern time and then we expect them to be open maybe later on thursday night or even friday morning but still we got were going to have a lot of rain, a lot of water. 12 to 18 inches of water and thats a lot, that may cause a lot of flooding and erosion in so many areas. So right now, were taking people who got wooden houses because theyre not going to be safe in those kind of houses at this time. Congresswoman jennifer gonzalezcolon, we certainly wish you well. If theres a silver lining, its that femas already on site because of irma, but we lets just hope that everything works out. Thank you for joining us, appreciate it. Yeah, thank you thank you wow meantime, Senate Republicans today are reaching a tentative budget and tax reform deal lets get to ylan mui who has the latest out of washington this hour. Reporter kelly, thats actually from senator bob corker he sits on the Budget Committee and thats actually where the process for tax reform has to start. Im told that republican lawmakers on that committee are looking at a package of between 1 trillion to 2 trillion in tax cuts, and that a package would likely also add to the deficit. Now senator corker had been on the low end of that spectrum hes been worried about the impact of the national debt, but other republican members of the committee that i spoke to this morning including senator mike crepo of do idaho hope dynamic scoring can help the math work out. I dont believe we should limit ourselves to static scoring. I dont know a number for an outer limit i believe we should have the largest number we can get with adequate and with accurate dynamic scoring. Reporter the numbers the senators talking about appear to be bigger than those that house lawmakers had been discussing remember also that the house budget plan would also require that any tax cuts do not add to the deficit so there would likely need to be some sort of compromise there meanwhile, senator chuck grassley, another member of the senate Budget Committee, told me this morning that he is still waiting for details from the administration on exactly what their tax reform plan looks like were still in the process of negotiating this and we probably will not even make a decision until the white house ways means and the Senate Finance committee get what you call a framework from them. I think we need that because were going to have to operate within what can be signed by the president. Reporter now, its possible that the Budget Committee could release its parameters for tax reform as soon as next week, but this is all still a work in progress, guys okay. Now we got it. Thanks, ylan. Thank you, ylan mui on capitol hill plus the other big story there, a new attempt to repeal and replace obamacare may be gaining steam in the senate as well Kayla Tausche has that part of the story for us now. Reporter bill, we heard this story before this time the Graham Cassidy bill, what it would do, repeal the obamacare infrastructure but leave the taxes if place and funnel that tax revenue toward states in the form of block grants so the replace part of the equation would happen on a individualized basis at the state level. Its one highlevel endorsement so far Vice President mike pence told reporters the white house is all in on the plan after announcing its support last week and Senate Majority leader Mitch Mcconnell called it, quote, better than the status quo by far. Senator lindsey graham, sponsor of the bill, said House Speaker paul ryan told him he likes it and the house likes it, too. Graham seemed optimistic about the prospects in the senate. Were going to get 50 republican votes and i make a prediction, there are going to be a lot of democrats struggling with a no vote because at least eight of them, eight of them, their states do far better than obamacare in terms of funding, and they have more control over the money and thats going to be a hard no. Reporter even so, grahams cosponsor, senator bill cassidy, told ylan mui the prospects were, quote, good but not definite two republicans have already come out against it, thats all the party can afford to lose the two others who voted no on the previous bill in july, alaskas lisa murkowski, arizonas john mccain, have so far been bum governors will play a large role here, arizonas governor supports Graham Cassidy. The white house is pressuring alaskas a handful of others want a bipartisan solution. The Senate Health committee is working on one but as of now, that only looks to be a narrow fix to stabilize the Insurance Market and only through 2018 bill and just, kayla, to be clear, we had a graphic that said no to Graham Cassidy, showed murkowski and mccain so far they havent said one way or other, are recollect . Were on the watch for them being a no, right . Reporter correct two of the four no votes that were on the record back in july for that final vote that ended up sinking the Previous Senate iteration of Health Care Reform. We should note that laskas governor did sign on to that letter calling for a bipartisan solution and going against Graham Cassidy thats one of the reasons why the white house is doing outreach specifically for this bill and specifically with governors that have sway all right see what happens thanks, kayla. See you later. To the markets now here we go again records again now for the dow and s p. Joining the closing bell exchange, keith bliss, hes at post 9 our buddy, jack, from ucx is in chicago. How is this for symmetry i had our Research Team look this up. If we close here, its the 41st record close for the dow this year the vix dipped below ten today that for the 41st time this year is that crazy . Thats good what do you think of that its not only crazy, it truly is indicative of how the market has behaved and acted this year and its really the back part of that coincidence thats most important to me. You look at the lack of volatility, lack of real worry in the market, thats been the true story of 2017 thus far. In nakfact, ill go one further, you heard me say this before, is the worst month for equities going back several decades not only up in september but setting new highs on the dow and the s p and nasdaq and the like. That is highly unusual and i went and looked back at the last ten years about that phenomenon in september what i found is that in the last ten years, the markets been up more than its been down in september and i think a lot of that has to do with what weve been experiencing in that time period which is really easy Monetary Policy, the market is set up for corporations to heal and have good earnings the economy is recovering globally albeit not at the speed were accustom to. People are having mar money in their pockets. The consumer is coming back and strong and, therefore, you get these types of markets 41 days up 41 new highs on the dow, 41 new lows on the vix or below ten on the vix. Has what withdrew hayou have ri jack, i was going to ask how much the developments in washington especially on, tax and Budget Planning may be contributing to the rally were seeing today or what you think is going on. I dont think its a quince den. I think theres a lot to be said for that Graham Cassidy is a real solution remember, you know, it does away with the direct subsidies to the Insurance Companies. This was a big problem even when Mitch Mcconnell was drafting that legislation, he was doing it with those Insurance Companies. So if you get that out of the equation, and guess what, john mccain is going to vote for this his governor wants this. The state of arizona needs this. Theyre going to vote for this so, you know, this is a real workable solution. So if we get that out of the way, that is one big distraction that is now going to be out of the way and this congress can start to really focus on repatriation, on tax reform, on the things that are going to create jobs and really grow this economy. Meantime, as we mentioned, the fed meeting started today. Tomorrow we have the News Conference with fed chair janet yellen kooet kooe keith, im just curious. This wont be known until it actually happens i wonder what her demeanor will be like since the last meeting, all the talk has been about whether or not shell be reappointed by President Trump i wond whaer shell be willing to say and not say during tomorrows News Conference you know i think what weve seen over the last few years from chairwoman yellen is outside of the very first News Conference she had, shes been a pretty good poker player. When she sits in the pressers at the fed announcement, when she testifies in front of congress i think shell play close to the vest i think she will make, though, shell make statements that talks about the fmoc and broader Federal Reserve is comfortable with the growth of the economy if you listened to the fed speak over the last few months, they telegraph were going to get a rate hike in december. The market has started to agree with that. Fed fund futures finally priced that in for the december meeting. I think shes going to tell us theyre happy with the pace of the economy. Theyre still a little bit worried about where inflation is going to be and the able for companiy iey ies to manage thei Pricing Power. Wages are starting to come back a little bit were at full employment rates are very good for growth i think its going to be a no rate increase tomorrow, but i think its going to be a very positive message from chairwoman yellen at the presser. Jack, real quickly before we go, noticing how poorly best buy is doing in the session today, and toys r us bankruptcy, is that a sector the market rushes to judgment on, leaves behind and still can go full steam ahead making new highs and perhaps the economy can follow suit you know what, its a real tough call, especially on these retailers. You know, amazon is changing the world. They are becoming mob bell of our time between aws, between the retail side, Everything Else theyre doing and now of course getting into the Food Industry so, look, you know for a company like that to vecheventually cath the eyes of our regulators unfortunately and have something happen you know, the best buys of the world, jcpenneys of the world, kohls and macys of the world are victims of amazonvation as i like to call it. Kohls striking a frenemy deal, more on that later anyway, gentlemen, thank you very much. My pleasure. For joining us today. We want to get more on this earthquake, struck in mexico in the last hour. Sue herera stepping in with more details. Reporter indeed, bill, heres what we have. It was a 7. 1 magnitude quake it hit about 76 miles south of mexico city. Right now, we do have reports of smoke coming from buildings. We have reports of buildings having collapsed we have the airport in mexico suspending its operations after the quake. We also have the mexican stock exchange, the blsa, has suspended trading for the day. We dont have any reports of injuries at this point, but it was an extremely strong quake, of course. Mexicos president is on the road he is heading back now to mexico city as you look at these images that have been taken on either social media or from telemundo which is our sister station of course. This quake comes on the anniversary of the 1985 quake which was a magnitude 8. 1. That quake killed almost 10,000 people ironically, this morning in mexico city, a number of building managers ran preparedness drills on the anniversary of that quake. Here we have the 7. 1 magnitude quake just south of mexico city. We do have reports of damage to buildings. We have smoke coming from buildings that weve seen in vid video, but no reports of injuries at this point but were going to continue to monitor the situation. In terms of Market Reaction, as we told you, they have suspended trading. We did see the peso sell off a little bit against the u. S. Dollar but not all that much were taking a look at some of the Market Reaction to the earthquake we often get Market Reactions to natural disasters. Not too Much Movement in the currency market. Obvious hi they suspended trading on the stock market. In the 3 30 news update, ill have the latest for you and hopefully new video as it comes into our newsroom. Bill, kelly, back to you. Sue, thank you very much. Scary stuff. Toys r us has declared bankruptcy as anticipated ahead of the allimportant Holiday Shopping season. When we come back, well look at the potential impact that could have on toy makers like hasbro and mattel as well as other retailers. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs and i get back to business. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Its Life Insurance and wharetirement solutions toic . Help you reach your goals. Its having the confidence to create the future thats most meaningful to you. Its protection for generations of families, and 150 years of strength and stability. And when youre able to harness all of that, thats the power of pacific. Ask a Financial Advisor about pacific life. Quick check on some of todays market movers. Tesla shares under pressure after jeffries initiated coverage of the electric car maker with an underperform rating and 280 price target the stock trading at 375 right now, implies a roughly 25 decline from current levels on concerns that it may take tesla longer than expected to become profitable and auto zone is one of the worst performing stocks in the z sp today after reporting disappointing samestore sales last quarter Morgan Stanley reporting 30 of the auto parts Retail Industry could vulnerable to competition from, guess where, amazon, kelly. Lets continue the theme toys r us filing for chapter 11 bankruptcy protection kate rogers has more for us from, i believe, there she is in front of a toys r us kate reporter hey there, kelly, thats right toys a s r us is the latest retailer to show signs of struggle l in an increasingly online world filing for chapter 11 bankruptcy late last night. A Company Spokesperson insisted to cnbc this is a Balance Sheet issue, not an issue with toys r us and overall business as they seek to restructure 5 billion in debt. Joe overall, toys r us has 65,000 employees and they said they have no plans for store closures or layoffs during this bankruptcy restructuring in fact, fay plthey man to add 0 workers for the holiday rush according to the holiday spokespers spokesperson take you through important numbers in the companys history, back in 2005, they were acquired by bean, kkr realty trust trust, made a plan for an ipo, then they scrapped the plans in 2013 shows signing of struggle in 2015, two years ago they closed their iconic flagship times square retail store. The company told us loyalty and rewards programs and give cards will continue to be operational and be valid throughout this resfrr restructu restructure. Ing. We ran into customers who were a bit concerned and rushed here to use them. Someone posted the rulemor tt was going on, they were closing, grow have gift cards to spend them by the end of the week because they werent going to be good anymore reporter now a big issue for all of these big box stores, you guys were just talking about it in the block before, of course, amazon, their toy sales grew by 24 last year. Overall toy industry, their sales were up 5 , according to oneclick retail, an analytics and research firm, guys. Back over to you. All right, kats, thanks very much how does the toys r us news change the toy business . Lets bring in linda from da davidson linda, thank you for joining us. Hi. This has been a tough sector, we understand that whats the significance of this bankruptcy, though are there some potential competitive winners and its clear that hasbro, mattel, even to some extent, Simon Property group is being punished as a result of this sure. Well, i think theres two key things to note about this, and first of all, i mean, the omni channel nature of retail now and the rise of ecommerce is one issue and toys is the category thats one of the highest categories thats sold through ecommerce in the United States. Thats about 25 of toy Industry Sales are through ecommerce the second issue fortoys r us, toys r us is essentially a single product retailer. Essentially they sell toys that makes it pretty much impossible for them to significantly price cut if they want to use price toys as a loss leader during the holidays walmart can do that and it wont hurt their overall resultses toys r us cant do that, hard for toys r us to compete against a walmart or amazon in the toy category stl th. That answered my questions. Now what happens to them what do you think happens to toys r us . Well, i think the company has said, and my understanding is that there wont be toy closures during this Holiday Season theyre going to operate as much as usual, as much as they can, with their stores open and with toy suppliers supplying product. I do think in the very, very long term for the reasons i stated, they will continue to struggle theyve done some interesting strategic things to stay alive. Yeah. They do have declining negative samestore sales trends, as many retailers do today. It will be a challenge. Linda, thank you, for now, as we follow this story along. Linda bolton weiser. 33 minutes left in the trading session. The dow up 40 points s p up almost three. Chipotle is rolling out highly anticipate ed queso nationwide some diehard fans were giving it a thumbs down. Ts moving the stock were going to try it were going to try some coming back i want to see what this is all about. 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. Of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. 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 welcome back its time for a cnbc news update lets get back to sue herera. Kelly, bill, thank wyou very much we begin with the developing story out of mexico city where a powerful earthquake has shaken that city causing buildings to sway it has damaged multiple other buildings. The u. S. Geological survey says it was a 7. 1 magnitude quake thousands of people streamed out of the buildings onto the streets in panic, but unfortunately right now, were hearing that others remain trapped inside of buildings across the city. At least one building has partially collapsed. Others are reportedly on fire across the city. The mexican bolsa has haulted trading for the day. The airport is closed and the countrys president is on his way back to mexico President Trump offering praise for the United Nations following years of tough criticism. During a luncheon hosted by u. N. Secretary general, he called the organization the best forum for nations to discuss their problems were working very hard to solve world problems, but there is no better forum, there can be no better forum, and certainly there can be no better location where everybody comes together so i want to congratulate you. Walmart has unveiled a Pilot Program that allows food stamp recipients to use its Online Grocery shopping platform. At five locations, the retailer let shoppers order they items through the platform then pay in person when they pick up their purchases. At this point, amazon does not allow food stamp purchases online walmart is trying to get a bit of a leg up on its competition that is the news update this hour bill, kelly, were watching mexico city. Well bring you developments as they warrant back to you guys. Yeah, please. Very good thank you, sue. All right. Now, queso has been available at Chipotle Mexican Grill for only one week customers already talking about it bigtime on social media and they are not impressed many have gone to twitter to express their disappointment about this melted cheese dip some calling it gritty, some call it chalky companys defended its queso tweeting back at disapointed customers with this tweet, our queso is made with only real ingredients which makes it different. We like that difference but it is different. Chipotle recently ditched chiriso. The protein accounted for just about 3 of sales. Now, we dont mean this as a goof, im curious, im definitely curious to see what this stuff tastes like we had somebody run out and get some queso. You have a palate so do you. I dont know if i like queso in general. You dont like melted cheese . Im going to try it it is here and its warm. It is kind of warm. You have to go first. Ill go first. I like they implied all the other queso is made with rubber or whatever make tss it have tht texture. Pretty good. Not bad whats wrong with it its no that strong no, i kind of like that. Its a little spicy. Whats everybody worried about . I dont know. This is actually pretty good. Maybe theyre used to having it in their local mexican restaurant. Our staff back at headquarters are watching me eat chipotle thats news right there. I mean, i think thats pretty good i didnt even think i liked queso. Yeah, i was set not to like it because of all of that. Its okay. Not bad. There we are. The shares were down, like, 3 yesterday in part they thought maybe on this news. The company said it actually tested, got the same kind of reaction in early markets and still thought its sales were doing well enough. Perhaps that was just a tempest in a teapot. Up 1 today. Lets send it over to seema mody, shall we she has a market flash. I like the queso, for what its worth. A report from reuters says the Trump Administration is preparing to ease rules for overseas sales of guns so basically making it easier for gun makers here in the United States to sell their products abroad. This is said to include assault rifles as well in response were looking at a lot of some of the gun makers shares move higher, american outdoor, ruger, on the move right now, on the report from reuters that the Trump Administration is looking to ease rules for gun maker sale outside of the u. S back to you guys. Holy cow, huge moves. Pr. Reporter 10. 4 move for sturm ruger. They have reporter interesting to see how politics have impacted the share price of a lot of these gun makers. Very much so. Reporter especially around the election. This might be their way of trying to open it up for them. Anyway, seema, thank you for now. Heading into the close with queso and 25 minutes to go, the dow up 46 points the s p at 2,507 the russell negative by a point. The nasdaq up seven. President trump was praising the economy and the stock market during his speech today. Survey finds employers are getting ready to cut back on pay raises next year those details next. Snapchat shares lower today on declining new users in the u. S. What that means for the future of snap, later on the closing bell. Opportunities arent always obvious. Sometimes they just drop in. 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. As you probably know, today is day one of the feds meeting. Our Steve Liesman has spoken to Top Economists and market strategists as part of our cnbc fed survey steve joins us now with what the findings say about President Trumps Approval Rating especially as it pertains to how hes handling the economy, steve. Reporter interesting changes. Thanks so much the cnbc fed survey, weve been following this, its important what the market thinks is going to happen on the fiscal side the Approval Rating for President Trump bumping up a little bit, reversing a downward trend from 29 approval to 39 the disApproval Rating about the same the dont knows coming down. So still under water as pollsters would say, but Getting Better and certainly better and abovewater when it comes to approval on the economy as bill was showing here 63 63 approving of his handling of the economy up from h 43 . Down a bit on the disapproval there. 36 to 29 this group thinks hes doing the right idea, has the right idea when it comes to the economy but the timeline doesnt look so good if youre waiting for those fiscal things to happen. Take a look. Health care now Second Quarter 2018, financial regulatory reform, Third Quarter of 18s is. Look at these nevers so those nevers for some of these things have gone up compared to previous surveys 39 say Health Care Reform will never happen small on tax cuts. Thats the one bright spot here. First quarter of 2018, now with just 2 saying never and also infrastructure just 10 . They thing theyll get those two items done there and how about how optimistic the stock market is on the plans of the administration here . They had thought the market was way optimistic 62 thought so back in may thats come down now its about an even split 44 saying the stock market is too optimistic about planning on the plans of the administration, and 41 say that the expectations are realistic all of this, guys, is available on dotcom if youd like to read about the survey, bill. Great stuff and if you look at the numbers, the fight for users between snapchat and instagram, seems like a snapchat win right now. But not everything is what it seems. Were gong to explain that, yes. Thank you, Steve Liesman i thought that was part of the liesman story. But anyway. President trump at the United Nations today giving his sternest warning yet tnoh o rt korea. Ahead, International Reaction to those comments stay with us 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. She cant become a guitar legend just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Shares of michael kors trading higher today almost up 4 after an upgrade by oppenheimer to outperform. The firm says it improved product is resonating at full price. Pricing power at michael kors. Oppenheimer raised its price target to 55 their previous price target was 44. Exceeded that. Up nearly 4 today. Meantime, shares of snap are falling despite new reports the company is signing up more new users than instagram is. Snap down 1. 5 Julia Boorstin has more. Reporter kelly, thats kbth good news for snapchat its not that simple snapchats share of new enrollments in the u. S. Is on the decline. Instagrams is on the rise take a look at this jumpstart chart here new enrollment, 70 at the end of last year is now about 52 . If the triend continues, instagrams numbers will surpass snaps in the next few months. Instagram surpassed snap in terms of new signups in may. One caveat, jump shot tracks clicks on confirmation emails, doesnt include text confirmations are snapchat may have more strength snap shares down 1. 5 today. Down earlier facebook shares are up over 1 also today, an article in the information reported advertisers are critiquing snaps ad products as looking stale. Snap shares are down about 14 since the companys march ipo. On growing concerns about competition from facebooks instagram, in particular, and questions about snaps ability to continue to scale now, last week, snap chat unveiled a new augmented reality bitmojis no word yet on how much theyll help grow User Engagement or how theyll impact ad dollars. Guys, back over to you. That will be another thing for us to try at some point. Julia, thank you very much. No doubt. Julia boorstin. Dow up 45 points today verizon the best performer there on flareup as david faber was talking about earlier in deal talk between tmobile and sprint the s p up 2 1 2 the russell down a point and a half. Fedex one of the Companies Reporting earnings after the bell up next, well debate if you should buy the stock. Tomorrow, a live and exclusive interview with pershing squares bill ackman. Always informeative and entertaining hell be talking about theadp f first time noon eastern time tomorrow on the halftime report. baby crying slow jazz music fly me to the moon and let me play bell ring they always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Livestreat the airport. E sport binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv on every screen is awesome. The Xfinity Stream app. All your tv at home. The most on demand your entire dvr. Top networks. And live sports on the go. Included with xfinity tv. Xfinity, the future of awesome. Boy, moments ago art cashin stopped by to tell us that the market on close orders show an imbalance, a big one 1. 3 billion to the sell side. Weve seen the market come off its highs, thats for sure but he said it could push us to a minus 20 on the dow, 60 points lower than where we are. Well see. Well have to see. That, of course, depends how much demand there is at the close there of undeclared orders well see. How it works out but right now, the imbalance is big to the sell side fedex reports its earnings after the bell tonight just yesterday, the Company Announced its going to raise its shipping rates starting january 1st. Yeah, its up 16 this year the stock is is it a buy or a sell for investors . Joining us for todays bull bear debate, donald from grautin capital and donald deed. Thanks for having us. Donald, lets start with the bull case for fedex, its had a pretty good year what do you think it could help it do even better . Well, its really simple. Fedex is one of the Worlds Largest facilitators of ecommerce, continue to see ecommerce growth in the retail. Continue to explode. But in the internet of thing, the b to b market is just Getting Started so we look at fedex and say, look, its one of the most consistently surefire ways to play the ongoing growth. Id have to pick whos going to win. I just have to pick fedex to facilitate to get it delivered one. Two, highest margin, highest incremental return on invested capital business the company does is flying up prioria priorx cross across the Pacific Semiconductors up 20 . That makes us confident about whats happening in the underlying business. David, kelly mentioned how well the stock has done this year and thats taken it out of your price range thats one of the reasons you dont like it, yes splut. Absolutely its doing well this year. Up 37 in the last 12 months i cannot risk my clients nest egg money on a stock that yields under 1 fedex is great in ecommerce the problem is the largest player in ecommerce, amazon, has their sights firmly on fedex, in my view. They were disgusted, quite frankly, with the snafus last Holiday Season they vowed to vertically integrate the business, bought all sorts of equipment given their recent purchase of whole foods, theyre serious about vertically integrating remember, amazon is ten times the size of fedex. Amazon can basically call the shots. Now admit fedex is a Great International carrier. If youre as skeptical as i am about mr. Trump and north korea getting along, fedex is the last stock youd want to own in this period. Well, if thats the case, theres a lot of stocks you wouldnt want to own donald, what about his point about amazon the service snafus, kelly, were a u. P. S. Event, not a fedex event. Thats irrelevant, quite frankly. One. And two, while the total revenue number for amazon is materially larger than fedex, fedex in what it does is the dominant player in that part of the business amazons budget for shipping is around compared to the overall amount of revenue that fedex generates. So its a little comparing apples and oranges, quite frankly. Also, theyve done the largest acquisition in the history, the tnt acquisition. Right now the european pmi is over 57. Were seeing european air freight numbers that are, you know, growing at 6 to 8 . When youre integrating the largest acquisition in our history and doing it in that environment, theres at chance for upside you know, youre fighting an ongoing upside trend its what, you know, Albert Einstein said years ago, those who understand the power of compound interest can get paid by it. Those who ignore it have to may it the compound interest is the compounding of the ongoing growth of whats happening in ecommerce and the people who deliver are a fedex. David, let me add one other thing here weve been talking about the price increase, theyre going to implement at the beginning of the year they have Pricing Power. Even amid all the competition thats out there right now well, im surprised they do it january 1st i would think if theyre really serious about making some money theyd start on thanks thanksgig thats the key period. Im glad the other gentleman brought up tnt were going to learn more about what happened in that very material cyber attack in june. The company has not said much about exactly what happened but weve seen from equifax that investors, indeed, consumers, take that very seriously so we got to watch that quite carefully and thats not a great way to start integration of a new purchase donald, what do you say, real quickly, we got to go here, but about the rate hix the companys introducing . This is the time of year they always propose rate hikes. The fact theyre looking at 4. 8 , almost 5 rate hikes, you guys are exactly right it shows they have Pricing Power. Sew me somebody else thats hiking price on a year in year out basis by 5 more more, what is a low inflation, no inflation market. Yeah. It shows the value of their Services Show you the biotech companies. Thank you, both, for joining us today. Thanks, guys. All right. We got six minutes left. The dow still up 41 points the closing countdown coming your way in a moment. After the bell we have earnings were going to get results from fedex as we just discussed adobe and Bed Bath Beyond. lebk. Ath making a comac wel bring you the numbers as soon as they come out. Stay with us bell rings screeching tires bell rings about 2 1 2 minutes left in the trading session with the dow up 38 points have seen the market come back a bit with the huge market on close, imbalance to the sell side. Got to rope them up. How is this for a quirky bit of math . I had our team check, with the close today if were positive on the dow, it will be the 41st time this year that weve had an alltime high close for the Dow Jones Industrial average okay you ready for this so theres the trading of the dow today. Were going to finish positive, i can imagine. Its the 41st alltime high at close this year. The vix, earlier today, dipped below ten. Its back above it now for a time, it was at 9 and change and today marked the 41st time this year that the vix has dipped below ten how crazy is that . Bob pisani, thats crazy one more thing, the ten year, the yield, continues to just creep ever higher. We get ready for the fed, day two of the fed meetings tomorrow and we will have Janet Yellens News Conference beginning around 2 30 eastern time. Remember the famous comment, reducing the Balance Sheet is going to be like watching paint dry. Well see. What they want is nothing to happen to the markets. This will be one of the great feats of alltime if they can pull this off without market volatility talking about reducing the 4. 5 trillion Balance Sheet the market is driving everyone crazy. The s p moving in a four point daily range six days in a row. To give you an idea, normally 15 points would be typical a year ago for the s p to move from the high to low. 125 to 150 points on the dow forget about it. Its all been flat lined but bull markets generally dont end with whimpers like this, they end with exuberance the bulls are still out there. Want to point out, semiconductors, more new highs in micron, microchip technologies thats another group thats up aerospace, again, new highs. Mr. Trump, President Trump, comments he would destroy north korea, some of those Aerospace Stocks at new highs. Those are the major moves today, bill. Get ready earnings coming up as well fedex, adobe and Bed Bath Beyond a good Cross Section of Companies Reporting in a moment here thanks, bob. Okay. Records again 41st time this year for the dow. Stay tuned for those earnings and lot more 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 heres what were finishing up the day on wall street the dow going out with a gain of 41 points. Looking to see if wed get big declines on the bells and big sell orders. Nevertheless, hang in there at the end, up to 22,372. The broad market s p 500 adding nearly three points today, 25,003 the nasdaq setting a new record at 6,461 and that laggard russell 2000 dipped a little lower today just about a point or so, 1,440 for the small caps checking on the dollar, down about a quarter point, sometimes the dollar and russell have been going hand in hand we have earnings ramping up after the bell we will get results from adobe, bed bath, and fedex. Well bring you all those numbers as soon as theyre out and joining me on the panel today is cnbcs senior markets commentator michael santoli, next to him is danni hughes, ce o of divine Asset Management michael, this market has a lot of Different Things going on i know on surface it looks kind of calm. Some pretty big moves out of washington and its interesting no ones necessarily tieing that all together. Right. But, you know, is it significant that maybe something is going to happen on the tax and budget front not such a narrative around it, although, look at the Health Insurer stocks down today. United health a drag on the dow. Dont know if thats pricing in at least a prospect of the vote on the aca repeal next week or people pulling in their bets, money off the teenagable you said inching, what the market has been doing, inching on the index level higher. The way im looking at it big picture, the bulls retain the benefit of the doubt the way that theyre acting, without a lot of momentum, lot of force behind these moves, its keeping a little bit of that doubt out there as we get into the fed meeting. One of your favorite sectors, metler had an alltime high today. Health care instruments, lab equipment, boring, boring stuff. They hit highs every year, every day. Not too spooked about the news by the Graham Cassidy bill. Part of the bold case, its completely insulated from that theyre kind of theyre selling the blades for the razor blade guys. Another says they give it a 10 chance i feel people are so dismissive of it it actually could happen what would the significance be if this thing does pass . I think its baked into the market a lot of people, kelly, like you, feel like it almost has to happen its not been off the table yet. I think it will be significant for the market, think it will be significant for the administration if this happens i think its a great big pat on the back for them moving forward. But well see. A lot of other stuff just hasnt happened so, you know, on the political front, some things really have moved our stocks forward like the Defense Sector has been a big beneficiary of whats happening in washington. Everything from china, russia, to rocket man, you know, and really thats benefit add lot of the defense plays, lockheed, northrop, boeing, raytheon you know, boeing, for example, up 63 year to date. I mean,which is just insane the fact a company as big as boeing would have a move like that in the span of nine months. It is, it is. That, youre right, speaks to this environment joe, i was going to ask you sort of relatedly, what you make of the president s speech at the u. N. Earlier today i thought it was actually a very measured and president ial speech and i think the markets are reflecting the fact that his chief of staff has made him more president ial we dont have as many big distractions the russia story, while some channels carry it a lot, has gone to the back burner. More importantly what ive seen in the last month, i was very concerned a month ago seeing Interest Rates go down, seeing small caps go down were now seeing the opposite happen in the last month so, very interesting, done very quietly. The russell is back up to new highs with a very nice move in the last month even as Interest Rates have bee going up. Were going to know the president is on to something if youre bullish on the u. S. I feel youve been all europe and all emerging markets, right . And its worked incredibly well and we still love that because, again, the dollars not going to get strong any time soon but i do look now and im actually now starting to wonder if were at the point of a meltup if anything happens with taxes, if there is a positive surprise, i think so little of that has been priced in, that you might see the final scary blowup that will be great for investors unless they hold on too long so i just think im seeing some things here that are making me feel quite optimistic and even though there should be volatility, it might not happen until year end, and, again, im surprised at myself, frankly i was just going to ask if you think on the one hand, you know, if the, you know, the Trump Administration is giving is the fed taking away were going to hear from yellen tomorrow apparently everyone is looking for a firm timeline for shrinking the Balance Sheet. We probably will get Something Like that. The way, my perception of investors, how theyre thinking about this reduction in Balance Sheet is theyre not really worried about it theyre not worried about the pace of it, not worried about necessarily the market knockon effects. Theyre a little worried that nobody else is worried about it. Theres got to be some kind of an unintended consequence here i think what could happen is Janet Yellens tone in the press conference, not just about the Balance Sheet but about whether, in fact, theyre eager to do rate increases at a pretty decent clip alongside of that, so maybe thats going to be the excuse, especially if she takes note of financial conditions being so easy. Yeah. Thats code for markets are too happy. We want to do something about that or at least were not going to resist the urge to do something. Were not getting a ton of clarity on Third Quarter gdp numbers. Back at sort of the twos range now we have the hurricanes, another on its way devastating events theyre going to throw everything out of whack. Were not getting to where we really need to be to see that growth theyre talking aboutby need to see more productivity growth gdp has been lacking everything has not been where we need to be you know, the fed owns 29 of mortgagebacked bonds issued by the u. S. Government. They own 17 of the treasury market you know, yes, are they going to wind this down, and, oh, no, dont worry, nothings going to happen here, there will be no issues. Let me mention real quickly the biggest mover in the dow today was verizon. David faber earlier reported talks between sprint and tmobile are under way michael, there was a report out about how we timely have competition in the Wireless Industry the worst performing sector this year, the Pricing Power and the moves theyve made to try to win consumers with unlimited plans, you know, offering free hbo if youre at t. Will this one actually move now . What does that mean. I mean, obviously investors think theres at least a decent prospect it happens. Every stock in the group is up at t, verizon, tmobile and sprint i think theres maybe a growing sense that, in fact, its not a three or fourplayer market. If they can persuade the antitrust authorities that, no comcast. Cables involved, everybody else, its a free for all. Perhaps thats going to be the way. It is. I made the analogy to the 90s Long Distance ceased to be a product of its own after a wh e while. I just know mci worldcom. Adobes numbers are out. Lets get to sieema. Reporter 110 adjusted versus the analyst estimate a 9 cent beat on its bottom line revenue 1. 84 billion. That, too, higher than what analysts were expecting. The stock here is trading down by around 1 in extended trai ee well get you more details as they come out. For now the stock is down 1 kelly . Seema, thank you. Such a stalwart here. Thats huge growth, with adobe, thats over 35 year oef year revenue growth. Thats pretty tremendous again, its a cloud story that weve been talking about, how big can that market again, how fast thats growing and adobe is showing that here. Its a 30 grower with a 30 p e, so thats kind of what you get right here you have some noise after you report even a good number. Joe, what would you say i think that what youre seeing is that everyones willing to pay a premium for growth there is no alternative. You know, we use the term, t. I. N. A. , around our company the reality is if you want growth, you have to pay for it as long as interest races stay where they are, well inch up slowly equities are going to continue to do reasonably well. We should just be ready for some volatility at some point although it doesnt appear to be coming any time soon no. As michael would put it, these are the companies, big Platform Companies of the future really. Right. And the flip side of the market, if you look at a best buy today, it was down, like, 8 on the close had their First Investor day in five years and also right in your wheelhouse, you see under armou are armour, wells fargo downgrade weve been seeing lulu, finish line you have kohls partnering with amazon. Broader take, why you love the magical Platform Companies like adobe, like mastercard. The market hates a business where a consumer actually has to make a decision to spend money they really do whether its media, whether its retail, whether its consumer brands, or packaged foods. That stuff doesnt work. The economy is not conducive to prodding the consumer to do that they like this businesstobusiness passive network, just print money. Youre right. This is was making a point about this the other day to its subscrib subscrib subscribers, you almost want these companies that benefit without having to do anything like a google. People flock to that platform. Taking it to the retail side like a t. J. Maxx, same idea where theyre the beneficiary of everybody elses missteps. And they provide a benefit to all of us who really want something great for our money. A value for our money. Joe, does that mean finally that these i would just encourage you to think of these platforms like modern day they are part of every transaction thats happening. If thats true like amazon, youre going to be very successful simply because everyones still trying to grab market and they all have to transact on these platforms. Yeah, modern day toll roads im trying to think how can everyone, you know thats a tough thing, theres a reason why we have basically half a dozen big names who are getting this right no, theres no doubt about it of course, the big question is, there is a price too high to pay for even a wonderful business. And so the market is going to keep testing, you know, what that number is and maybe push that limit all right everybody, thank you very much for swrojoining us danni, joe, appreciate it very much kick things off this hour. They did it again, pushturnu equifaxs giant hack last week wasnt the companys only one. As it faces backlash, its government contracts may keep the company in good stead. We have more on that next. President trump launching what they be his toughest talk against north korea yet today and other, quote, rogue regimes. Ahead, reaction from a former top nato official. We want to hear from you, contact the show via twitter, contact the show via twitter, facebook, or send us an email except for one of us. Closingbell nbcuni. Com youre watching cnbc, first in business worldwide for each of y for each of y 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. Kevin, meet yourkeviner. Kevin Kevin Kevin Kevin Kevin Kevin Kevin kevin kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. Welcome back with some breaking news on a huge earthquake that just happened in mexico sue herera brings us the latest. Sue . Thank you very much, kelly. Yes, it was a 7. 1 magnitude earthquake that hit just south of mexico city and were beginning to get some numbers on fatalities. Local media is saying that five people have been killed by this quake. We are not sure whether that is in mexico city or to the south where the quake actually had its epicenter. Because the mayor of mexico city is saying he does not know of fatalities in the city, but there could be fatalities outside of the city. We have numerous reports of buildings collapsing we have other reports of buildings being on fire. And people trapped in those buildings. What is certain, as you look at this footage, is that there is extensive damage to mexico city. This quake coming on the anniversary of the massive 8. 1 earthquake that hit mexico city in 1985. That quake killed just under 10,000 people. They had preparedness drills this morning in remembrance, if you will, of this quake in 1985 and unfortunately, they had to put that preparedness into effect today thousands of people have been noted on the streets of mexico city because some of those buildings are not safe we have seen fa saucades fallinf of the buildings basically were waiting for more news on whether there are injuries or casualties as i said, we have report of five we dont know if thats in the mexico city or further south they stopped trading on the mexican stock exchange, the bolsa. They closed the airport. The president is on his way to mexico city. President trump put out a tweet a short while ago saying god bless the people of mexico city, we are with you and well be there for you. We will keep you posted, kelly it is a still developing story were monitoring telemundo and all the other media that is in that particular area and we will bring you the details as they become available to us. Back to you. All right, sue, thank you very much. Sue herera more bad news for equifax today. Turns out last weeks massive breach was not its only one discovered this year lets get over to aditi roy joining us from San Francisco with the latest. Aditi . Reporter hi, kelly the company acknowledged a second hack after a report about it, but while the original report says that hack and the current one involved the same intruders, equifax says that is not true the company says the earlier breach was discovered in march and involve ed an equifax subsidiary they claimed the incident happened in the 2016 tax season and was reported to have affected customers and regulators in that investigation, the company used the same Cyber Security firm thats investigating the current breach part of the disclosure involved a letter the equifax subsidiary wrote to the New Hampshire attorney generals office. In the letter the company says the cyber thieves were able to change the personal identification numbers of the employees affected by the hack Cyber Security blogger reported on this breach at the time and wrote the hackers were able to use the information to steal w2 dat data its unclear how many people were affected in the breach. Meantime, massachusetts has become the first state to file a lawsuit against equifax. That suit claims, equifax could have and should have prevented the data breach had it implemented and maintained reasonable standards. Cnbc reached out to equifax about the suit but the company declined to comment on it. Kelly . All right, aditi, thank you, aditi roy. Lets go to Andrew Jeffrey, managing director at Suntrust Robinson humphrey for what the developments mean for equifax. Thank you for joining us thanks for having me. I understand you have a buy rating on the stock. You got it now a 110 price target. Reduce that from 15537 w why is the Company Still a buy im convinced there wont be adverse repercussions to the core business. Clearly the headlines are very difficult. We think there will be pressure in the companys directtoconsumer business, as we wrote about last week we also think theres probably going to be some share loss, but all told, its products and its solutions are so integral to the u. S. Consumer credit ecosystem, we think the panes core business and earnings power survives this intact did you go through an exercise, andrew, of trying to handicap the size of a potential liability . I know you did stress test your forward earnings estimates for things like the loss of that consumer subscription business and seems it came out around 5 a share in earnings for next year which still does leave the stock close to 20 times next years earnings. Yeah. Its something weve thought about. I dont think were in a good position to quantify that. What i will point out to investors, unless the damages, financial damages exceed 1 billion and even meaningfully more than that, we are talking about as a situation where the company may have to issue debt to pay some of those fines that remains to be seen. Given its cash flow, given its balance she, wroyoud have to s truly calamitous damages for that to affect our investment thesis our view would be downside is like a market multiple on the 5 number which would be somewhere in the mid to high 80s and upside if were right is toward our price target we like the risk reward. Andrew, i wonder, a lot of thymes we ta times we talk about a company like chipotle, whole foods, a high profile that involves a deeper malaise details about equifax, youre surprised at how amateurish theyre handling operations for whats said to be a security company. For example, one instance where one of their international passwords for a certain, you know, security portal was, you know, user name was admin, password was admin this stuff isnt rocket science, right . Doesnt that sort of all that youve heard not undermine your confidence in this company it doesnt structurally undermine my confidence in this company. Its unsettling, but i think the market has expressed its unease with whats transpired here. Knowing this Management Team as i do, im pretty confident that theyre going to move past this. I suspect that a lot of companies have security lapses that would only come to light in the context of a larger breach. Yeah, no, look, i suspect that, too, but this Company Sells security and trustworthiness. Its their core product. You know, its been more and more i just wonder, the journal today also reported on how much of their business is actually done with government contracts including the Social Security administration and cms. Is thing go to be a point at which look what happened with wells. Does the government say, were not going to do business with you because of the consumer pressure there are two observations. One is if you look at the companys 10k, see government customers were about 5 of revenue last year. The other thing id point out is that a lot of the data the Company Provides to governments, especially in the u. S. And cms in particular, are proprietary theres nowhere else to go to get those data so the government would be hard pressed to use a competitor or find a substitute. Thats one of the things that underpins our bullish view, a lot of what the Company Provides is exceedingly difficult to replicate. Andrew, thank you for joining us. Thank you Andrew Jeffrey joining us from Suntrust Robinson humphrey. Fedex out with its earnings. Lets get straight over to dominic chu with those results. Youre going to have to bear with me a couple l seconds were parsing through a lot of numbers. We have a stock down h 4 in the aftermarket. This after fedex corp reports earnings per share on an adjusted basis of 2. 51 per share. On revenues of 15. 3 billion now that 15. 3 billion revenue figure is just ever so slightly below the consensus analyst estimate of 15. 36 billion the earnings per share nouumbers a little more unclear. The average analyst estimate per Thompson Reuters was 3. 09 the 2. 51 that they reported on an adjusted basis accounts for a 2 Cents Per Share impact from Hurricane Harvey, also a 79 cent per share impact to the downside because of that tnt cyber intrusion issue that we heard last quarter it is unclear whether or not analysts had factored in that tnt cyber attack impact into their estimates, so we cannot really say for certain whether theres a comparability between that 2. 51 versus the 3. 09. We know theres a slight revenue miss we also do know on their pul fullyear forecast in terms of earnings per share, lowered it down to 11. 05 full year to your 11. 85 on a pershare basis from a previous level of 12 to 12. 80 because of the impact of the tnt cyber intrusion. A lot of numbers to parse through right now. On balance, we have Fedex Corporation now down by about 3 on 176,000 shares of vol wrum. If you look at the number, tiny miss, guidance you can take at face value, sounds like he was saying it was lowered. A bit lower. Shares down 3 . If its true, the 251 number that dom mentioned is about, you know, 78 cents shy of the street estimate and 77 of that 78 cents could have been harvey and tnt if fedex saw these analyst estimates going into the quarter, which, of course, it does, and thought, oh, theyre 77 cents off, they wouldnt c convey that to the analysts . Depends when it became clear the impact was going to be there. A judgment call on some level for management if the harvey effects were just now being toted up and all the rest o it. The tone of fred smiths quote in the press relief, significant operational challenges due to those things theyre not trying to say overlook these things. Not sugarcoating it. Still long term everythings in tact, does tell you why going to try to raise prices at the first of the year because clearly a lot of investments, lot of operational issues come along the way in terms of running fullout the stock has been a good outperformer. Down 6 bucks aftermarket right now trading around 210. If you cant beat them, join them, what Department Store kohls seems to be saying to online rival amston. Amazon. President trump is calling north Koreas Kim Jongun rocket man again today in his u. N. Speech warning the communist leader against further aggression up next, see how those comments are playing with our allies. Stay tuned im a rocket man hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at Td Ameritrade. 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. President trump talking tough at the United Nations today. Michelle carusocabrera was at the u. N. She has the International Reaction michelle reporter kelly, President Trumps first speech at the United Nations General Assembly was a fiery one. He repeated his policy of america first, attacked north korea, iran, and venezuela and vowed to keep americans safe by fighting terrorism. As president of the United States, i will always put america first. Just like you, as the leaders of your countries, will always, and should always, put your countries first. If it is forced to defend itself for its allies, we will have no choice but to totally destroy north korea. Rocket man is on a Suicide Mission for himself and for his regime the iranian government masks a corrupt dictatorship behind the false guise of a democracy the iran deal was one of the worst and most onesided transactions the United States has ever entered into. The United States and our allies are working together throughout the middle east to crush the loser terrorists the problem in venezuela is not socialism has been poorly implemented but that socialism has been faithfully implemented. Reporter already the countries of iran and venezuela reacting quite negatively to President Trumps speech the leader of iran telling lester holt of nbc news if the u. S. Does pull out of the nuclear agreement, it will mean that the u. S. Cannot be believed in the future and the foreign minister of venezuela telling reporters at the u. N. That theyve held 22 elections while President Trump was making money and that they are, indeed, a democracy. Kelly, back to you all right, michelle, thank you very much. Michelle carusocabrera. For some more reaction with an International Point of view, were joined on set by chief Strategy Officer at rasmussen global and former nato director of policy planning thank you for joining us. Hi, kelly. Really Strong Language about iran there generally speaking, how do you think this message is interpreted by who do you think it was really aimed at well, i think this was the full naked version of the trump Foreign Policy doctrine. Be threatening with your enemies, be transactional with your friends and be unashamed about putting america first. So i think thats going to work with some of the voters who voted for trump bullet the world outside, my reading is theyre looking for whos the leader of the free world theyre not seeing that in this president. Theyre not seeing that in this president why not . Its transactional, what country you can make what deal he made strong statement about the need for International Cooperation. And read president macrons speech, tried to do the counterpoint to President Trumps speech in a softer, but still vaguely aware about the need for International Cooperation to solve problems like iran, like north korea and like russia. When it comes to iran, maybe this is what you mean in part that he wants to be transactional with allies, because he makes it seem adds if this was a terrible u. S. iran deal somehow made by a prior president as opposed to kind of a multinational treaty with iran but does that really change the story . Because hes been on record with this for so long that i wonder if everyone has already kind of gotten used to this being his message. Well, the problem is hes signaling something that, for example, in france, people see that if youre saying base c basically you dont like the kind of deal we made with iran, to stop iran going nuclear, what will stop north Korea Going Nuclear . Many participants of the Iran Nuclear Deal are worried this is sending a contradict ary signal. I dont know, youre concerned about the nuances with which north korea is going to interpret the president s comments visavis the iran deal that his predecessor struck in no one can make sense of what the North Koreans are after. What do you think their objective is if a message to them was, you chont down this path and risk destruction, risk annihilation, you dont think that leaves an impact i think you underestimate how sophisticated the North Koreans are in the calculous they know how to escalate. They have the control over the escalation so far. I think what theyre trying to do is guarantee the survival of the north korean regime. They know and theyre reading everything that trump is saying, that the best way to guarantee that is to obtain Nuclear Weapons. This is the core of the problem. Youre saying if they thought, okay, the u. S. iran deal really resulted in no Nuclear Weapons by iran, and, you know, everyone kind of playing happy and by the rules that north korea wouldnt be behaving the way that it is . No, but im saying that the problem is that North Koreans are reading whats happen what could happen in iran, also what happened with libya where gadhafi actually gave up some his weapons of mass destruction and a few years later basically got bombed by the nato. Uhhuh. Yeah thats going to certainly be on their minds. Didnt get to venezuela, fabrice, thanks for joining us today. Pleasure. Time for a cnbc news update. Lets get back to sue herera. Thank you very much, kelly. Heres whats happening at this hour we now start in mexico where we have reports of fatalities after a powerful 7. 1 magnitude earthquake hit near mexico city. Local media reporting at least five people are dead in and around mexico city, but the governor of the state of morelos which is fairly close to the state that mexico city is in is now reporting 42 are dead in the central mexican state of morelos cork according to the states governor quake causing buildings to sway, others to catch fire and collapse thousands of people streamed onto the streets in panic but others remain trapped inside rescue workers are trying to get to them. The mexican bolsa halted trading. The airport is close ed and the president is making his way back to mexico city. A third arrest has been made in connection with last weeks london subway attack according to met poropolitan police two other suspects were arrested over the weekend isis took credit for the attack that injured 29 commuters. Puerto rico bracing for Hurricane Maria after the category 5 storm left a trail of destruction on the caribbean islands of dominica and guadeloupe forecasters warning the storm could leave some parts of puerto rico and the u. S. Virgin islands uninhabitable for months. And a fire inside the valero refinery in port arthur, texas, forcing nearby residents to shelter in place witnesses report hearing a loud explosion just before the fire ignited. See that billowing black smoke rising from inside no reports of injuries in that incident it is a busy news day, kelly, ill send it back downtown to you. Certainly is. Sue, thank you very much. You got it. Sue herera. Bed bath beyond out its with Earnings Report seema mody brings us the numb numbers. Reporter draw your attention to shares of Bed Bath Beyond, now down as much as 19 in extex t exten tended trade on a tough Second Quarter Earnings Report lets walk you through it. 75 cents adjusted. Does include a 2 cent reduction due to Hurricane Harvey. The company citing unfave bl impact of restructuring charges related to the re alignment of the store and management structure. Also want to point out that the company is undertaking a number of transformational initiatives to drive operational excellence. These initiatives will be discussed today at 5 00 p. M. Hope f hopefully wheal get more details then revenue, coming in at 2. 94 billion. Analysts looking for 3. 01 disappointment, key degreei dec. Already a tough year for the retail space Bed Bath Beyond included down about 30 in 2017. Guys wow seema, thank you very much michael, theyre going to have to bring back the coupons. Double them. 40 . I mean, what do you do at this point . The stock has been going down steeply from 40 at the beginning of this, from 60 a year and a half ago thought maybe it priced in the bad news this transformation theyre talking about is clearly late, not happening fast enough. This is the back to school season. Right. I can remember going to bed bath with huge shopping carts full of dorm duve covers if the guidance isnt better right theyre at a point right now where there was an idea they had leverage against landlords 1,400 stores the market looks at that, too much retail real estate. The counter trend bull case. Doesnt seem like its taking hold trying for smaller format stores, right up in our neighborhood as a matter of fact. Really . Saw it coming in. Check it out. We tried the queso today, well try the bed bath small format. The shares hit hard. Now a news alert on ford with our phil la beau. Whats happening, phil further proof, car sales, not truck sales, car sales slow down, the automakers are not going to wait to cut production. Ford announcing it will be idling five north american plants for anywhere between one and three weeks. Two plants are in mexico, three are in the United States what they all have in common, theyre stopping or slowing down production of cars not pickups and suvs for ford, that means slowingfie focus, the fusion, mustang, lincoln continental. Bottom line is this, guys. Fords north american car sales, production from the car sales from vehicles produced in north america, down 18. 9 this year. Thats why ford is going to be idling these five plants between one and three weeks. Guys, back to you. They should go all f150s phil, thank you very much. Ill keep an eye on ford shares, of course. As Hurricane Maria heads toward puerto rico, its redding right for it, were going to return to houston to get an update on the rebuilding of the Real Estate Market there after rranhaeyig aer this my experience with usaa has been excellent. They always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. 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. My name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Houston is just beginning to recover from Hurricane Irma. Diana olick is in the stormravaged texas city with richard campo, ceo of Camden Property trust and has a look at the state of real estate in the hurricane zone diana . Reporter yeah, kelly, before Hurricane Harvey hit, there were 47,000 vacant Apartment Units in houston. Not so much anymore. As you said, joining us is Camden Property trust ceo. Tell me, what happened in your business in the last three weeks . Its been a total transformation on our business you know, as you said, we had a lot of vacant apartments in houston. Right now theres a lot fewer vacant were making, creating homes for a lot of the people who are flooded for sure. Reporter you were at a 93 vacancy rate what did that jump to . We went from 93 to before the storm to 98 today said another way, lease between january and august 170 net new apartments in camden, and during the last 2 1 2 weeks, we leased 500 apartments. Reporter that does wonders for your stock price now. The stock price has done well, absolutely. Reporter jumped from 88 to 96 in a matter of a couple weeks. Couple weeks. Reporter okay. What did you do for the renters . A lot of people are asking did you jack up the rent when you got all this new business . Absolutely not. Were really good neighbors. When you have a crisis like that, you definitely dont do that we froze prices at preharvey levels, didnt differentia trkd term between short term leases and longterm leases we turned off our revenue system at dynamic pricing which checks when supply goes down, demand goes up, you know what happens to prices, right we turned that off we wanted to make sure that people that were negatively impacted by the storm didnt get hammered in price or didnt get gouged or anything like that we just want to be good neighbors. Reporter so going forward, what do you think is going to be the development in houston, is this going to be a blip on the radar then youll go back to too many apartments or are you looking at more development . Huoustons o was on the road recovery we built too many apartments in anticipation of oil prices continuing to be high and creating jobs that the oil business was doing weve been running through the inventory over the last eight, nine, ten months we thought that the houston permanent apartment would be back in supply and demand balance by the end of 18, early 19. The storm moved that up a year. Reporter do you have the lab tore build the apartments you need thats a challenge. We have a property under construction across the street from where we are standing now were six months to nine months behind that project. We dont have the labor. Labor is tough if youre trying to build something new, now its going to take six months to a year longer than normally because we dont have the labor. Reporter thanks so much. Ric campo, ceo of Camden Property houston based. Back to you,diana, thank you so in terms of tech on value versus growth, were going to take a look at how some funds are handling that decision when we come right back plan for retirementer to with day one target date funds from prudential. Look forward to your 401k plan. Theextreme risk of burstd a pipes and water damage. Y. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. 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 not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back according to a new report, two tech giants are cracking the top ten in Large Cap Value and growth funds what eric joins us with more on this. Eric thats right, kelly a new report out today from evestment shows Fund Managers went underweight visa saw the biggest ownership jump wells fargo saw the biggest decline. One report item stands out when you look at large cap growth funds and compare them to large exam value funds, despite their fundamentally different investment mantras, you find some of their Biggest Holdings are identical. For example, apple and microsoft are in the top ten most weighted stocks for growth funds, and theyre also in the top ten most weighted stocks for value funds. Its a pattern you see elsewhere in the investing world funds call themselves one thing but they invest in another or stocks that can find appeal from investors with totally different approaches value and growth at the same time last week at delivering alpha, you know this, kelly, Julian Robertson talked about it. He said apple, facebook and google are not actually expensive stocks and theyre happier than they would have been in the 1960s, 70s or 80s. But its not just Fund Managers. Some of this comes down to the indices and bench marks theyre up against consider the top 15 holdings in the three biggest value etfs and the three biggest growth etfs. A full six stocks showed up on both lists all of them are household names. Microsoft, intel, pepsi, 3m, United Health care and Phillip Morris International Back to you, kelly. Its peculiar eric, thank you very much. This goes back, i dont like the value growth distinction in the first place. Im not sure in fact, i know that some index providers that have style indexes, i think russell back in the day, an individual stock would be split proportionately, say, oh, 6 o in value index, 40 in the what is the point because, look, its kind of like its quantum investing depending on exactly how you observe it. I dont like it bridgewaters ray dalio has a warning for bitcoin investors. Well bring that to you next in todays fast take. Coming up on fast money one blackrock strategist will give his fed pyblaook and tell investors what to buy out of that meeting well be right back. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back time now for our fast take today. We begin with some big news on kohls and amazon. Kohls says it will return your amazon packages for free starting next month in designated locations michael, is it a winwin its pretty clever. The market thought of it as a win. Very small percentage of storebased, they could roll on if its worked, driving traffic into stores. I would do this in a heartbeat, returning to amazon is crazy if they could help with this, especially for free. Repacking it, that sort of thing. If amazon wants to get deeper with physical chains kohls would be so lucky. Bitcoin is a bubble its a shame it could be a currency it could work, conceptually. But the amount of speculation and the lack of transaction, the idea that it will be private in terms of transaction when you take bitcoin, there are other crypto currencies. Bitcoin might lose competition to another crypto currency its very much speculative, people thinking can i sell it at a higher price so its a bubble the more the dalios and dimons of the world say this, the more its defenders say these old white guys dont get it. The powers that be dont want this to be big however, if you look at the trajectory of the price change, the volatility in the way bitcoin acts, it does check off the boxes of bubbly activity that doesnt mean its necessarily doomed either its gold or zero. The vcs are getting into icos because they feel like they cant miss out on the growth were nowhere near the end of this bis says central bank should think about developing their own crypto currencies which i dont understand at all, because the dollar is already digital. The dollar is largely digital. But there is an enormous amount of physical currency out there that does trade, that is anonymous, that does qualify along the lines that people say bitcoin can help with, anonymous exchange, portability. Its not something that depends on counterparty risk, right . However, i dont know what Central Banks would do about this its almost by definition, if you created your own kind of digital version of cash to go in digital wallets backed by the same stuff that regular money is, why is that appealing in this new world i dont understand its all making my head hurt. It does make everyone think about what money really is, which scares a lot of people a fun discussion to have, at the same time. Chair janet yellen is holding a News Conference tomorrow, well talk about what to listen for when we come back. Kevin, meet your father. Kevin bye Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. Dad molly, can you please take out the trash . sigh 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. Its running much faster now. See . Its amazing, molly. Thank you. thank you. 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. The fed is widely expected to keep Interest Rates steady, tomorrow, michael, we sort of sound like a broken record what do we expect . The expected path of rates next year, what the members think about how many rate increases they may be able to achieve. Theyll have the projections. Exactly theyll try to say the Balance Sheet runoff is not a Monetary Policy tool, this is just getting back to some kind of normal thing, the rates is what we want to press well see how hard they press. The shadow rate is finally back to zero, this thing was negative 3 . I mean, we are now actually at zero for the first time in years. Right thats some version of normal. So i think the fed wants cosmetically to look a little more normal. Lets hit the earnings. Huge decline in shares of Bed Bath Beyond, its shutting nearly a fifth of its market ca after a miss fedex was down 4 at one point, now adobe looks worse than fedex. The fedex and adobe reactions, theyve been strong stocks, this is not that surprising versus what we saw in the thick of the earnings season the Bed Bath Beyond, clearly theres some level of existential threat here, they loaded on a bunch of debt at the wrong time toys r us is not getting emphasized enough. It was a 2005 ld off, its 7 1 2 multiple that didnt work out. Its a garden variety its an old story in retail and private equity, absolutely right. They thought real estate could bail them out. That game doesnt work anymore plus deflation in toys very few things have had worse deflation than toys. Parents never say that, these toys are so expensive. They have so many, they trip over them. My knowledge, thank you very much, a pleasure as always that does it for closing bell today. Fast money begins right now. Fast money starts right now. Live from the nasdaq overlooking new york citys times square im melissa lee. Tonight on fast, check out shares of fedex and bed bath and beyond theyre getting crushed in Earnings Reports coming out moments ago. Both companies arepointing to one major headwind, well tell what you that is plus nelson peltz has harsh words for the ceo of procter gamble, well bring you the comments the reviews are in for iphone 8 and iphone 8 plus. Its not looking good. Could the appl