Transcripts For CNBC Closing Bell 20171108

Time warner deal the Financial Times reporting regulators are demanding the sale of cnn in order to approve the deal well have the latest on just what the government is demanding here, coming up. And this has been a big story today. Snap sinking after missing wall streets revenue estimates by a big margin well look at whether that stock, which is down about 50 , since the ipo, whether that can recover or not thats all coming up here. Busy day still a big decline for those shares lets kick it off with the latest on the at t time warner deal sources saying that regulators are calling for the sale of cnn in order to approve the deal, joining us is the reporter who first broke the story today, james khan, thanks for your time thank you for having me on the show so, now the New York Times is reporting its a sale of Turner Properties writ large, whats your latest information on what the government is demanding that at t would have to sell to get this deal done. Based on that reporting before the times reported about kind of turner broadcasting and directv. What we understood was the problem was cnn for the government thats what theyve been told. And so really the question is whether this is a political move or its a actual regulatory question that the u. S. Government is kind of telling at t you need to get rid of this asset which is cnn so for the moment the problem is cnn rather than the size of the asset. The timing of this and the request itself, does feel like a political move would you agree . What are you hearing in that regard lets back up just a for a second here. We know there has been this feud for the last year between President Trump and cnn. Absolute do you think this could have something to do with that . So what we were told from a number of sources is that the administration has been putting pressure on the doj, on the deal, and this kind of has become clear today to us as we discover that cnn is the problem and they want basically at t to get rid of cnn to get the deal done lets not forget that during the campaign, President Trump, then candidate donald trump said that he would block the deal because he thought it would be bad for democracy. And interesting though his pick for head of the antitrust, the doj said at the time when he was not yet the candidate for the post said that he didnt think the deal posed any serious antitrust threat. That seemed to have changed now. James, were looking at time warner shares down 6. 5 as this reporting unfolds this afternoon, if its just cnn as you guys are reporting, it feels like an easier fix to me at t can just say, okay, fine, well take everything else, sure it wouldnt include a property that we want and i understand that at t says its unwilling to part with cnn, or hbo, tnt, or the Warner Brothers studio it may be about a harder call than just cnn going that it may be about turner or other parts of the size issue. That would come into play here thats very possible. And theres no doubt, the reporting and the time seems very solid theres no way we can kind of contest that but again, id like to stress that our sources say the problem is cnn obviously you could think that, you know, from the company side that would be a good way to spin the story, but theres more to that and the attention should be on the question of what do you do with cnn at this point im sure there are other Media Properties out there who would be willing to say okay great, we will happilytake cnn cbs has been out there, name rumored several times as a potential acquirer of cnn, but again, from our sources tell us that the company, at t, is not interested in selling cnn or any other asset because it sees this as a vertical, kind of merger which should pose no kind of antitrust threat. So theyre very determined our understanding is theyre ready to go to court and they think they can win it if the government decides to block it and go to court. Right speaking of regulations, were going to talk about that just now. James, thank you, appreciate it. Thank you from the Financial Times lets get to a senior Legal Advisor for the fcc commissioner thanks for joining us again thanks, nice to be here so what do you think about the government potentially blocking this . Whether its over cnn for one or whether its over more of the properties that time warner owns if the reports are accurate, this is quite a troubling development. First of all, this merger was announced over a year ago before the election it was very much under the radar after that all systems seemed to be go, it was a green light according to those close to the negotiations with the Justice Department, and to have at the 11th hour this, you know, this development is troubling. If its a highly politicized transaction, or development, we now see the development of the trump effect we know that the president has had problems with cnn, which, you know, based on the cnn reporting, thats understandable, but the fact that this is a vertical merger with very little competitive impact would seem to me that there would be a green light on the regulatory front keep in mind also that this merger, at t opted not to go to the fcc. They went straight to the Justice Department we have a new assistant attorney general for antitrust megan del rahim who indicated initially before donald got into office he had no problems with this, and now we see pressure coming from the executive branch from the administration to block a deal to have this cnn spun off, if thats accurate reporting. Very troubling and because also with a look at the context of other mergers in the cube such as the Sinclair Sinclair sinclair transcribe bun is in the cue potentially sprint, sprint weve talked about sprint tmobile which looks like its off. Thats dead, yeah there was talk about a 21st century fox disney merger. Disney and so lets hope that this one is a unique sort of set of circumstances that revolves around the politics and not some sort of policy departure that is going to be ushered in by the trump dministration. Well, because they went to doj, how do you think this then plays out . I mean, is it as simple as at t just suing the government to try and make sure this happens but then that drags things out for who knows how long, right . Well, there are two courses of action that obviously the merger parties can choose to exercise or judicial options and that does take quite a bit of time they could capitulate, come back to the table and do some Old Fashioned horse trading and figure out which of these properties really, really are problematic. If its just cnn, then at t has a corporate decision to make as to whether as to how value that believe property is and the overall transaction and theyre overall plans for the tribune rollout to incorporate other assets into the at t universe would be very valuable and the question becomes, how much can they get for cnn and do they really want to depart, depart with cnn enlight of a broader transaction and broader set of corporate plans . We dont know that at this point. Yeah, yeah. Thank you for your thoughts well continue to follow this deal all afternoon and then tomorrow, at ts ceo Randal Stephenson will be on power lunch. Tune in for that thats the guy right there that has to make the decision of how to proceed from here the bus stops with him including sue the government as you said. Exactly see if the government can prove there would be consumer harm today marks one year since the election of donald trump in the past year the president has taken the opportunity on many occasions to talk about one big thing thats on his mind, take a listen. The stock market is an an alltime record. Stock market has gone up massively since the election the stock market has hit record numbers. The stock market has gained almost 3 trillion in value since the election weve added 3. 3 trillion in stock market value weve picked up in market value almost 4 trillion since november 8, which was the election 4 trillion. Thats a lot of money. Personally, i picked up nothing, but thats all right they never talk about the alltime high stock market the stock market is at its alltime high in history were very proud of our stock market, whats happened since i became president the stock market is at an alltime high. The stock market is soaring to record levels. Our stock market just hit another record high. Its the highest its ever been in history by far. In 28 trillion is the Global Wealth creation according to deutsche bank. Just this week President Trump told reporters own air force one, the reason our stock market is so successful is because of me well, the fact is that mr. Trump, not you i dont think there was confusion. The stock market has seen big returns since the election a year ago dom chu joins us with a look at how the market has compared to other newly elected president s of the past, dom first of all, we work for a network that talks about the record high stock market on a pretty regular basis because it is bread and butter to us. I would say that we in the media world do know that it is a record high stock market and so apparently does President Trump, but lets take a look at the first year of any new president s kind of stock market track record and what we decided to do was ask the folks over at the spoke Investment Group put together a list of all of the president s that became new president s, you know, first termers, since 1900. Just to look by comparison how big of a move the market has been we use the Dow Jones Industrial average because it goes back that far donald trump, one of the top five, up 28 in this one Year Anniversary since his election if you take a look at the biggest move higher, that came during the depression era, fdr when he first assumed office back in november, or not assumed office, got elected november of 1932, the stock market moved up 48 a year after that. The next one was harry truman, the reason why its not november is because he took over for a deceased franklin d. Roosevelt, we mentioned President Trump, Lyndon Johnson up 25 in the year after he assumed office because he took over after the assassination of jfk, and then we have george h. W. Bush, november of 1988 and the year after that, up 23 so that kind of puts in a little bit of context now we talk about the record high stock market, we wouldnt be here with the trillions of dollars worth of gains if it wasnt for one sector in particular and thats technology up 40 in the s p 500 over the course of the past year. In 2017 alone, we asked howard just how much did it contribute, 2012 turns out one year, and yes, 40 gain. But facebook, apple, alphabet, microsoft, amazon, these techish names accounted for 28 of the overall gain in the s p 500 just in 2017 and those five companies guys, for a big number bill kelly, 1 trillion worth of market cap gain just by those companies alone. So when you talk about the market rally, it is tech and of course these big names we will talk all about these throughout the course of this term and of course if you want to read more about it, guys, all of that story is on cnbc. Com right now back over to you very good, dom, thank you well see you a little bit later. Eye popping numbers there. Joining our exchange today, were seeing the s p flirting with alltime highs. So does the nasdaq, the dow just a fraction loser right now Chris Cordaro is with us right now. Isnt that the shortest route to grow taxing so he says, every guest we have says they were voice of the stock market and theyve been bullish, havent they for the stock market they absolutely have. Donald trump has a right, i wouldnt handle it that way, but he has a right to make this claim. Because if you look at all the Global Equity markets from november 8th, none of them rallied like we did, the nikkei, a little bit, but they all basically, dax, the cat, nay all went down, it was about eight weeks after that they started to rally. We pulled them up. Now you could argue, it cant be policy, theres something there. And its the there that nobody seems to be interested in. And i still contend, you have republican house, republican senate, republican president , kind of republican president we could debate that some time, but in the end, it isnt about what they were doing its about the democrats that didnt win. That is a huge issue especially if youre trying to trade the stock market and handicap it against whats going to turn out to be tax policy plus or tax policy like repeal and replace low Interest Rates because of low employment, because globally theres a lot of stimulus across the board. Thats whats keeping corporate herbings lower. But to ricks point, you cannot offset that when he was elected in november, the market saw that it wasnt Corporate America. It was Corporate America that was looking at a lower Regulatory Environment at all of these other things that potentially could be done. So the key though to ricks point, i agree 100 , is that everyone will push back and say nothings gotten past. Nothings been done. Right, but theres less regulation, so never underestimate the power of a lower head wind, lower head winds more tail winds when you look at the Regulatory Environment when weve been looking at the same thing for eight years prior. Theres no other reason why the market would have ripped in november today, notwithstanding, weve been noticing the decline of the russell 2000 here, some see that as a proxy of wall streets nervousness about the tax reform package. Right, so now we get back to chriss analysis, where you still have the ability to look at corporate earnings and positive tail wind that are coming from Corporate America in the light of everything that we just spoke about, but they really seem to have this inability to pass anything, substantive on capitol hill, and i do believe that theyre not going to be able to pass any of these initiatives. So then we fall back on, market at record highs, market still has less regulatory head winds, and you have the ability to hold these games. Ill give you the trump was the spark that got it going, we needed some spark, some energy to get it going. Now corporate earnings has been the fuel to keep it going. If it was just based on rhetoric a lot of people have said weve already were already banking the earnings people are feeling better, we just needed to get it going. So trump got it going, but it was the earnings that keeps the market going if earnings were falling off and declining, the market wouldnt be where its at its the giant Tech Companies that are the best performers in this right, it does feel like thats kind of just a secular phenomenal story that maybe doesnt have anything to do with the president , or does it . You know, i agree with a lot of what our guests are saying, you need listen, we have wild horses in the form of Tech Companies, a lot of corporations, theyre big war horses, theyre great orses, but they were running on muddy track for better part of a decade they saw a better track, nice dry track, and now they can gallup, we need all of that. And maybe the connection with some of these companies is tenuous. The trigger, low rates, we had all the same thing on november 10th that we had on november 6th, something happened that day, its undeniable well, were getting the whip to move it along here. Were going to have to do that here gentlemen thank you all. As always. Well see you a little bit later. Meantime, snap shares sinking after reporting weak quarterly revenue, find out as snap shares can recover, coming up crude oil prices are up 15 in the past month and shares have tracked higher too. Were going to speak with a Ceo Ryan Lance as the Company Holds to layout its longterm vision right after this is the monolithic view 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. Were not giving a fair holders, growing the company and really trying to set a standard for companies in the sector. Whats your break Even Oil Price these days we talk kelly in terms of what is our sustaining price today . And we can sustain our dividend below a 40 a barrel which we think is industry leading sector leading today thats part of the transformation weve been through. Part of the strategy this last year, you sold some assets, some oil fuels, why . If the feeling is that prices are going higher here, there goes the revenue stream right. Yeah its all improving the business we sold over 16 billion of assets and those had little cash flow impacts in 55 a barrel so were able to redirect that back to the Balance Sheet, shore up the Balance Sheet as weve gone through this downturn, we have debt. Give somebody back to the shareholder through distributions, and now start to invest back into the portfolio for growth we will grow over 10 growth over the next three years. U. S. Crude oil output has been at new alltime highs in the past week or so, 9. 6 Million Barrels a day. And you need to capture the upside as you go to 60 and 70 a barrel if thats where the marketplace is going we think its a wellsupplied world. Were in for a lot of volatility theres a lot of issues going on as you point out in the middle east the u. S. Is growing, it should grow half or three quarters of a Million Barrels this year. Price goes to 60, were going to grow even more and take up some of that demand youve got to be prepared to embrace that volatility and figure out how to work at the low side as well opec, you know, they used to call the shots will that still be the case as we see this continued rise in u. S. Production . Well, i think, you know, some people ask is it a swing producer i think over a time, the u. S. Is going to influence that market quite a lot were still not a swing producer on a monthly basis like opec can do in terms of spare capacity, but we are a big insignificant player in the world Global Supply market today. And its going to persist. Our influence on the oil markets going to be greater than today for the kpus. Absolutely. These prices, the u. S. Will continue to grow the u. S. Unconventional is not stopping it is Getting Better its getting more resilient to the low prices and its still very profitable at these kinds of prices today. Good to see you thank you very much look forward to it, thank you. Chairman and ceo of khan co. Phillips and we have 35 minutes to go into the close dows hanging on to a 3. 5 gain so is the s p, and the nasdaq is up 22. Yes, it has been one year since President Trump was elected, coming up, well be joined by larry kudlow and real estate mogul don keebls to grade the president S Performance on varioufrtss on that ought to be fun 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 [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Bareaking story late this afternoon. Carl ikhan is under investigation. Thats right. I want to highlight exactly what icon disclosed in a filing on friday the firm said that the u. S. Attorneys office for the Southern District of new york recently contacted Icahn Enterprises to activities relating to the renewable fuel standard and the role as an advisor to the president the filing adds that ikahn is providing information and that the u. S. Attorneys office has not made any claims or allegations against the firm or ikhan. They own refineries and shelled out hundreds of millions of dollars to comply with a Bush Administration law now the price of those credits is based on supply and demand and any policy changes, and in may, a group of Democratic Senators led by Elizabeth Warren called for a federal investigation into whether ikhan benefitted from insider trading. Various media reports as well had also raised the question as to whether ikhan was able to influence President Trump in a way that would drive down the cost of the credits. He seized to act adding that he never had access to nonpublic information or profited from his position he also did not believe that his role presented a conflict of interest, guys big story, leslie, thank you very much. Leslie picard there. Lets get over to sue herrara, sue. Hello kelly, hello bill, heres whats happening. Defense secretary james mattis meeting with fellow nato defense ministers in brussels. They will endorse a plan to create two commands. One to protect sea lanes varying troops and equipment across the atlantic the other for land forces in europe its the first time nato is expanding its command structure since the cold war former president obama reporting for jury duty this morning in chicago he worked the Jury Assembly room shaking hands, signing copies of his book he was ultimately dismissed by the judge a short time later, but he will be paid 17. 20 for the day. Just like every other juror. And President Trump addressed south Koreas National Assembly yesterday he talked about the strong relationship between the two countries, but then, went a bit offtrack the womens u. S. Open was held, this year, at Trump National golf club in bedminister, new jersey, and it just happened to be won be a great korean golfer, song wan park the comment sparked some criticism that he was using the president to promote his private business interests, others say that the president was just going a little offscript and trying to praise the south korean golfers well let you decide thats the news update this hour bill, kelly, back to you thank you, sue. You got it. As weve been highlighting today marks one year since the election, the dow is up nearly 30 in that time, but how else can we measure the year . Were going to. Joining us right now for their assessment of the president S Performance over this past year, cnbc senior contributor larry kudlow and don keebls who is ceo of the corporation both with us here at post nine. Don, lets begin with you, run us through it, how would you grade the president . Look, on taxes, i would give him incomplete on management, id give him a c. And i would say in terms of creating optimism, id give him a b, initialfully terms of the business sector, and thats why we see this push in the stock market. And jobs. And jobs, a c, and mainly there because i think that a lot of these jobs unemployment was down when he came into office and so hes been his policies have been able to continue to go down, and i think the only way we see more jobs is more deregulation and a ta reform getting through the congress wow, larry, i wish id had you in college youre not a very tough grader, are you . Lets compare totally favorite democrat no, im here i think everybody should have one. Because regarding jobs, i think trumps deregulation message, and by the way, that includes congress, they pass 70 bills, trumps executive orders have been a tremendous shot in the arm to both moral and confidence and actually, theres evidence that small, medium businesses had picked up, all right. A minus on jobs i would give him an a minus on jobs. Tarkss, b plus. Taxes, b plus because i think his message has been terrific. Messaging is important i think his part of the bill, particularly the business tax cuts, which yours truly contributed to during the campaign is terrific and if he gets a bill through and i believe they will after talking to the republican senators yesterday, im going move the b plus to an a. And then management style okay. B with the old adage, needs improvement . Which i was always getting in grade school. Thats exactly correct. At the dwight school, i think it needs improvement. Sometimes it says get out of dodge. I cant remember exactly had a hard time getting it together i think general kelly now is really a big help to him, stayed with kellyanne conway, i think thats also a big help, but hes had turmoil on that. His relations with congress have improved, but hes had turmoil on that. And the agencies, this is not altogether his fault, but they havent gotten trump people confirmed. Now they speed is up there, nominating, okay but there was a period there when the nominations really so im going something between a c plus and a b minus on that. Thats where ill go what would you give him, off the top of your head, when it comes to International Relations, given hes in the middle of this big asia trip don. I think there, i think hes getting a b plus or better because hes sending a message that were not going to tolerate any aggression, for example, and then also we want a fair trade system and thats i think what destroyed our Manufacturing Industry here in this country is these unfair trade agreements on the north American Free trade agreement with disasters for our country. So i think there, hes sending a different message. And i think again that creates optimism and on management for example, i would give him a higher grade if he would lead by example and if he would sometimes roll his sleeves up and get and force some action. And i think hes going to have to do that to get tax reform passed too international i think his international has been solid, i agree with don look, hes completely changed the middle east story. First of all, he took the handcuffs off our soldiers in the rules of engagement. Weve defeated isis in iraq, routed isis in syria, thats huge and changed geopolitics, we are now favoring israel and the saudis, and we are opposed to iran, completely changing obama, and one a lot of points that could be made here, hes putting good money in the Defense Department by the way, we needed that, but just, you know, look at his relationship with china all right. Everybody was worried on that. And china has some big trade issues, but, trump has really worked well with xi, he has. And they signed on to our financial sanctions, i bet theyre talking about the north korea story today. So, im, you know, im going to give him certainly an a minus, if not an a on foreign policy. And i think thats a surprise to a lot of people. I hesitate to bring this up since we only have a minute left, gentlemen, but we had an election yesterday, and a number of democrats got the most votes. And there were those who felt like this was a mandate against trumpism, i mean, im assuming you agree with that. I wouldnt read that much into it. For example, new jersey, Chris Christie destroyed new jersey for republicans with what he did at the gw bridge, showing himself as petty there was a referendum in new jersey to get rid of him and everybody associated with him. And virginia, you had virginia, conservative, more bipartisan democrat, leading the ticket, and African American Lieutenant Governor candidate but also had Virginia Congress seats flip to democrats legislature. But again look where they voted to expand medicaid, and thats going to complicate matters for the president too. Think about this, two things. One you had a democratic governor who restored Voting Rights to 200,000 of them for the president ial election. So the demographics of virginia continues to get more on the democratic side, thats why the lead was the victory margin was bigger only 30 seconds on this come on, look ive got to go. I shouldnt have asked. Trump won five or six congressional seats. I would put this in perspective. I just to want summarize, okay whats he done trump has ended the war on business trump has ended the war on success with loud messaging, and trump has even with the tax plan . With the tax cuts, ending the war on investment. And he has messaged that again and again, he is exhorting business to get america moving again, and dont underestimate though, thats why the confidence factor is so high youve got give credit for that. Instincts we were talking about last year. Animal spirits. Thanks larry. Don, always good to see you. Thanks for joining us today. News alert to get to here. Fascinating story, kate rogers has the details, kate. Hi kelly, privately held panera bread is buying for an undisclosed amount panera was founded in 1981 under the penn name. The company was later renamed panera after acquiring the st. Louis bread company, then in 1999, panera sold off the brand. Additionally the fact casual Restaurant Company is announcing that its ceo is stepping down he wont become chairman taking his place would be blaine hearse who is currently the companys president. Now remember, panera was bought out by jab earlier this year for about 7. 5 billion that company also owns krispy kreme, and caribou coffee. This is just even more consolidation in that space. Theres also been some chatter in trade publications about having interest in acquiring dunken donuts. Back over to you and with all of those competition there the brands is down 3. 7 . Coffee empire they are very, very aggressive and putting toogt pretty smart field goal there, thats for sure. Thanks kate. Thank you. See you later meanwhile snap shares have plunged around 50 since the ipo. And they are falling sharply again today after those disappointing sales figures. Well discuss whether this stock can turn around, coming up i think its terrific. Your kids go to college and you start trading. Yeah, 5 years already. 5 years, hmm. You ever call your broker for help . Once, when volatility spiked. And . By the time they got me an answer, it was too late. Td ameritrades elite service team can handle your toughest questions right away with volatility, its all about your risk distribution. Good to know. Thanks, mike. We got your back kate. Does he do that all the time . Oh yeah, sometimes he pops out of the couch. Help from real traders. Only with 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. Just ahead, reaction to the streaming devices initial report, coming up. Plus snaps staging a bill sell off after disappointing revenue and selling off in the session today. Find out if this is a chance to snap up the shares of the at wnto when we come right back target is planning to close a dozen stores in february in states like michigan, florida, illinois, and texas. A target spokesperson told us here at cnbc it has a rigorous process to evaluate performance of every store on an annual basis and that the closings are due to the decreased profitability of those particular stores. Snap shares down more than 15 after reporting earnings missed after the bell yesterday. Today its been a roller coaster too. Theyve announced that Chinese Company ten cent acquired a 10 stake in the company and its not helping the stock this afternoon to still down 15 . Lets get reaction for this company. Joining us, from Sun Trust Robinson humphrey. Thereve been some brutal Analyst Reports out today after that report last night, yours among them as well you still have a sell in this company, what do you make of what you heard yesterday well look, were hoping to hear something that was positive, that was going to actually push the numbers in the right direction short term, and what we heard was more uncertainty, the pricing is still head wind, they werent able to add users as they the street thought they were going to add more importantly, they came back and now they are in the process of redesigning the app and every time you do something of that magnitude, it just raises a red flag because we dont know what the new app is going to look like, we dont know the timing of it, and we dont know how users and advertisers are going to react to it. All the same, must see value if theyve increased substantially here, right . I think so. It may be because theyre looking to expand their global footprint, looking to learn, maybe about some best practices around the western europe and in the u. S. But for snap, remember, theyre not getting voting shares in terms of what ten cent is getting, snap itself is not getting any money from this 10 ownership because ten cent is buying in the open market. And ten cent has historically been an investor preipo so we dont think and weve got an number of questions from investors whether this is a prelude to ten cents acquiring the whole company and we think the answer is no okay. The redesign of the app, acknowledged that its too complicated for some people of a certain age. So where is their growth going to come from do you think they could get older users to come to snap chat if they make it as easy to use as a facebook or twitter thats a huge change of strategy remember, even before the ipo, the ceo was talking about how their core focus is on the 1334 and yesterday on the conference call, he was talking about wanting to expand their reach or the attractiveness of the app to the 34 or 35yearolds and above. We think that, if anything, it is done from a position of weakness not from a position of strength. I would have been frankly much better i think they would have been much better off doubling down on what they know best, users in that 13 to 18yearold range, particularly, spending a ton of time, and i think there is a ton of monetization opportunity, but going beyond their core constituency presents risks. All right good to see you, thank you for joining us here. I dont believe for a second its too complicated for 35yearold. I tried it once years ago, i had no idea what was going on. Breaking news on at t, sue herrara, now what . We have a response to cnbc. Weve requested a response from at t in response to the doj demanding devesttures of cnn and other Turner Properties in order to complete that at t time warner merger. The following is attributed to Randal Stephenson, he is the at t chairman and ceo. He says quote, until now, we have never commented on our discussions with the doj, but, given the dojs statement this afternoon, it is important to set the record straight, throughout this process, i have never offered to sell cnn and have no intention of doing so, end quote. So, the battle continues this is the latest from at ts chairman and ceo Randal Stephenson, kelly, bill, back to you. Oh boy. We thought that was going to happen its interesting to get the ceo to weigh in on Something Like that. Especially making it public now thats going to be very interesting to see how this plays out from here, thank you, sue. See you later. Ten minutes until the close. Watching shares of those two companies, time warner down about 6 this afternoon. Dow is back in negative territory. Its down 12 s p small gain, russell small gain and nasdaqs up 16. Wouldnt you know, 21st century fox highlights another big day of afterhour earnings tonight. Well have a preview of that when we come back. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Well bl watching rating declines after stressing confidence in hulu in the past, well have to see what they say about competition. And we could hear something about growing concerns about foxs proposed sky acquisition the companys expected to grow revenue about 4. 5 , while earnings are projected to drop by about the same percentage point to 49 cents per share. A beat or miss would impact the companys value in a potential deal guys, back over to you all right julia, well see you in a few minutes after the bell, getting another report card on President Trump on this one Year Anniversary of his election. 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The ibm cloud is the cloud for business. Yours. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Coming up on the last two minutes of trade here, now its suddenly moving back toward the unchanged level. We may get a record there. Were about two points in record territory for the s p and the nasdaq is flirting with it as well theres what the dow is doing at this moment. The best performer in the dow today, walmart, that continues that run as we head into the Holiday Season jpmorgan and all the banks continue lower, theyve had a tough time as they keep an eye on fed policy and the tax reform package in washington. The other two companies to watch, seth and time warner, kelly and the gang will have more as they are now fighting back on the governments demand in order to get this deal done that they would have to sell the turner broadcast assets which includes cnn and you heard Randal Stephenson coming out a while ago saying thats not going to happen. The ten year yield, it was an okay auction, better than the three year note auction yesterday, but the flattening of the yield curve continues, the yield on the tenure at 233 oil pulled back a bit today, bob, as we had a bigger bill that anticipated so a very volatile day there as they were anticipating a draw down and now were at 56. 81 right now. Were consolidating around the 56, 57 range. I wanted to mention earnings, finally getting the retailers, elf will be after the bell ears, lips, eyes, lips, face, tomorrow, macys, kohls, nordstrom as well. Heres after the bell elf. But i want to mention the retailers. A lot of discussions, of course, a lot of the core fragrance cosmetic jewelry businesses discounted, thats been a big problem. Heavily shorted industry well see if theres any good news we want to look at macys. Hurricanes and wild fires, that didnt help. Gains across the board it looks like for the averages. Well sort that out here in the next few seconds and stay tuned for the earnings, especially from the 21st century fox with kelly evans, see you tomorrow. Thank you, bill, and welcome to the closing bell, everybody, im kelly even as and looks like all three of the major averages eked out another record. Adding 5. 5 points. The s p today, adding just a little less than four points, 25. 94, the nasdaq deposit, third of one percent and all three of those again due mark russell closing highs. Not quite there, 1481. Its still about 30 points off the closing high did manage to finish higher by about 2. 5 points after steep losses yesterday in decline earlier today. A lot of earnings movers today after hours. Reporters are standing by, julia, cover 21st century fox. Awaiting square, and courtney is looking for that ears, lips, eyes i do think that could be a new, theres a new brand in there somewhere, see you in just a couple minutes joining me today, Michael Santulli next to him, stephanie link from tiaa investments and dennis is here as well from the wall street journal lets run through some of the biggest movers in the dow today. Biggest gainer was merck jpm down about 1 . February of last year and you had almost as much added from that point on are you suggesting its not electionrelated and. Look, there was a catalyst at the election, theres no doubt about it a switch was flipped and there was a massive reprising of lots of different stocks its not despite whos president , but its a broader theme. Its in the bond market too its not coming at the expense of warner brother. Lets talk about the financials for just a minute. That was a decliner, weak spot in the market again today. S p bank etf, weaker today, down more than 3 in the last four days the drop is attributed to well, maybe a number of things this goes back to Interest Rates. The republican electoral losses that could impact the tax reform push, and yeah, the yield curb, what about these midterm you and Maxine Waters is the head of the committee, is it any wonder the banks are the biggest decliners today . Thats kind of getting a little ahead of ourselves i would say at this moment im very i respect the fact that theres a lot of political situations going on right now. On the flip side, big beneficiaries of regulation, that is happening. I talked to a number of companies and thats the one thing they are already seeing. Not 100 , but its starting. And that bodes well for confidence and Business Investment across the landscape. And that bodes well for lending. So, lone growth has been kind of meek, maybe that improves as Business Confidence improves but its the flat yield curb that i think is the one thing that people are a little nervous about, lets just see how it all plays out. These are still able to deliver strong earnings and good capital returns and valuations arent extended are you a buyer of a jpmorgan on a decline like this then . I sure am im overweight the group, but i have been, lets say, lets let the dust settle, lets see what happens with tax reform, i do still believe there is strong earnings power for the group and you pick your spots and your quality companies, and thats how you make money well, lets mention snap here will quickly before the earnings those shares were down big today, dennis, and still this investment from ten cent up 12 now of the company, not doing enough to send the declines. What do you make of it all this one is so interesting, kelly, because snap chat obviously has this really bizarre governess structure in which evan spooegle has basically royal power over the company and shareholders really have literally no say in how its run and this is this was whats so fascinating about it, if you own stock, can you do anything about whats happening at the company . And the answer is no and so, you would think that the investment from ten cent should be a stabilizing force and concept it is, but if you have no way to exert your influence, does it even matter that you own the stock anyway so its a strange turn about that i never thought about when the ipo happened but were seeing almost the lack of influence hurting the stock in a way that just bizarre actually thats an interesting point lets get to these earnings those, 21st century stock results are out in the big deal speculation. Julia has the numbers. Thats right, earnings coming in right in line with expectations, 49 cents per share, this is exactly what analysts estimated, revenues beating exceptions coming in at 7 billion versus estimates of 6. 81 billion. Looking at the release here, no commentary of course in that speculation about a deal, but theres a quote from rupert and murdoch, executive chairman saying double digit gains and affiliate revenues demonstrate our strength and dynamic distinctive video brands and content across both established distributors and new entrants. Of course we expect to be a big focus on the call in terms of analysts questions about what we can expect in terms of a potential deal amid those reports of a sale of some of those assets to disney, back over to you. Julia, thank you. Its going to be a lot of focus on how film business is doing and a lot of those cable properties, nat geo. Michael, overall, i wonder if that half percent gain is parked where it is. Its moving around much more on whether disney is going to buy these assets than anything else right now. You have to take note of the fact that the stocks been holding its gains it wasnt just a fleeting pop in a few hours once this deal speculation was floated. Whether that means it refocussed people on this idea that the valuation has been relatively depressed. These are still strategic assets for somebody, not necessarily theyre playing this particular potential deal, but just a spotlighting the idea that there could be assets in motion in media and this properties here that might be part of that stephanie its just a hard one to own its a hard sector to own quite frankly. You think its hard to own even though theres all of these potential deals. People often say, i want to own these companies that are going to have the huge takeover premiums and would this be a perfect example. One of the reason why is people like this name is because they have a diversified mix, they had sports or news and theyre buying trying to buy sky. So, theres a lot going on at this company, but then all the sudden you have okay wait a minute, now theyre going to sell some of the assets that we thought were some of their cores. Doesnt really make a lot of sense, and i think its definitely cheap its a very high Quality Management team for sure its just a little confusing at this point julia has a little more now, julia. Yes, the companys saying that absent further delays, they expect the transaction that acquisition of the rest of the sky to close by june 30, 2018, going into more detail here, they say that the pending acquisition has been cleared on Public Interest and pure ralty grounds and all of the markets in which sky operates except the uk, and the republic of ireland. On the broadcasting standards on one of those regulatory arms in the uk, but they do say absent further delay, it will close by june 30, 2018, back over to you. Thank you julia dennis, seems like a big but, the uk not being on board is one of the major issues here except for the primary thing thats taken care of i think the fox situation the Murdoch Family has been a buyer for decades. Even the slightest signal that they are a seller, fundamentally changes the view of this company. It is totally different. I guess i was going to say, if theyre a seller, theyve been accumulating for decades, is that where they see the value in the market . I would think so. Its pretty regulatory are we going to see the bundle broken and not just on the television set, but across the whole media landscape . To me, this is a suggestion, the answer is yes. Michael i dont know that it has to be this particular transaction, its not as if news corp. Is berest of options, or fox rather if its an independent company, i do think everyones trying to look at how this is going to play out the next waves of changes in customer behavior, and i do think that, you know, a lot would be answered. Go ahead quickly apple is a 900 billion company. We used to Call Companies like fox media giants fox is worth 50 billion. Apples worth 900 billion. Yeah, 18 times that i take your point. Lets get to square those, those results are out. We have the payment giant. Hey kelly, this of course as the Payments Company cofounded and run by jack dorsey beating all the top and bottom lines, adjusted revenue at 275 million versus 255 million expected, eps adjusted, eps up seven cents versus five cents. Projected the share price has been zig zagging a little bit. It was first up and then down by more than 3 , now it seems to be flat this may have something to do with guidance, eps guidance for the Fourth Quarter adjusted. A little on the conservative side of five to six cents. Stronger above estimate, adjusted q4 revenue guidance those of 262 to 265 million remember the stock has been on fire this year its the best in the payment space up 170 year to date this year has also been moving up market and signing up larger businesses i want to mention that this quarter, the company applied far banking license as it builds out square capital, its loan business and the last thing i want to mention, squares market cap getting close to surpassing dorseys other company, twitter, back over to you thank you yeah, theyre not a payments giant, but theyve had incredible performance this year, Stephanie Square has not much of a reaction with the squares after hours. 170 year to date these numbers were good. They probably needed to blow away, but more importantly needed to raise that guidance much higher. And the guidance implies that the margins might be coming down, which means theyre investing, which is very healthy, but this is a company that has done all the right things you know, numbers have been going in the right direction, market shares been going up. Prescription revenue has been increasing as a percentage of totals theyre doing all the right things, its a high expectation stock at this point. Mike. Completely agree. Its the expectations game. One final thing to look at is the market cap a square versus greater than that, almost at parody right now 14. 5 billion. Okay. Does that by the way, it was always assumed that jack dorsey spent more time sfoeping on twitter at what point more work to be done theoretically, but yeah, i mean, thats a question thats been asked for a long time. They doubled the character count for twitter. Thats true its in the bag lets get over to roku, reporting earnings for the first time as a Public Company Courtney Reagan has those results. Pulling up a chart hereafter hours because it is soaring on these results like you said, first results as a Public Company for the Third Quarter, roku beating earnings expectations, posting a loss of ten cents. The stream was looking for a loss of 1. 37, o far and away better than expected revenues also beating expectations of 124. 8 million the streak was just looking for over 110 million also strong Fourth Quarter revenue guidance from roku and a couple little data points. Active accounts increased 48 year over year streaming hours grew 58 year over year to 3. 8 billion hours and the average revenue per user, that rpu metric grew 37 year over year and up more than 21 . Kelly, back over to you. Great set of results, thank you. That puts them to 23 bucks, they were big performer on their ipo. Went up to nearly 30 i think they were over 29, so theyve since backed off that. This is a good reaction and some really good revenue numbers for a company thats new its great revenue numbers. And the margins sounded like theyre a little bit better. This is a hardware company, and they go up against apple, google, amazon, souk see why the stock has pulled back. Concerns about this competition. And seems like the expectations got low enough so this was enough to get it going high per. Sure. And the company itself was not that new its just that its new to the public right weve seen a lot of these companies stumble so much out of the gate and were talking about etsy yesterday. Ro kurks rks still a different story. Still had the up and down moment after hours here, trading up in the range of where it traded on the first half. And then added more to that, and its been done since clearly the street didnt know exactly what to expect first report, how theyre going and necessarily hit all of these different metrics. No tendencies yet. So it seems like caught a little flat footed. 28 right now is this a david and goliath, dennis can they take on these trillion Dollar Companies well, i dont know the answer to that, but this is the thing i want to put together which is, if you look at fox, which is a seller at this point, how can you not look at the results of roku and say yes, perhaps we should be selling fundamental behavior around Television Viewing is changing but what are they but heres the thing i dont understand you get a roku and you can watc netflix and hulu, but lets you watch tv the Old Fashioned channels too i mean, is there a sense that people want it all or does it have to be one or other . There are so many hours in the day. The roku and the apple and googlele device allow viewing into that relationship as it were, fundamentally changes the Old Television companies and so fox has got to deal with that reality and so, i can totally see why some would say, lets be sellers given the behavior exemplified the whole case for roku is look, we know the world is generally going in their direction. And theyre one of the rare pure place on a new way of getting your entertainment the barricade is tivo was that as well. It was a great functionally, but as a product, it had a certain shelf life not to mention the valuation of roku. There you go. Its a little high. They are giving them the benefit of the doubt today, 26 gain, that puts nearly at 24 bucks. Dennis, stephanie, thank you both very much thank you. Still more earnings and more deals to talk about. Shares of at t and time warner going different ways today amid reports and then a denial that at t may have to sell cnn or other properties to get that deal done. David favor has the latest, next plus the dow rallying nearly 30 since President Trump was elected a year ago today, but how much credit should he really get for the surge . Ahead, former mcdonalds ceo ed gives us his president ial report card and hear more of your Job Interview nightmare stories. Contact the show on twitter, facebook, or over email and were going to read a couple later on closing bell. Youre watching cnbc, first in bune wlddesissorwi you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Shares are dropping, julia has the full report, julia hey kelly i see earnings missing estimates versus expectations of 83 cents per share, both revenues beat estimates, revenues of 828 million versus estimates of 810 million in the quarter the stock is trading down nearly 2. 5 , but it is on light volume, back over o to you thank you julia, lets get over to elf beauty, Courtney Reagan has those numbers for us. Heres elf beautys Third Quarter results. Earnings of 17 cents adjusted, did beat of six cents. Revenues beating estimates at 71. 9 million, excuse me, 71. 9 million, the streak was looking for 68. 5 million now, eyes, lip, face did increase their full year earnings guidance, however, most of its captured in this quarter, so now its actually implied weaker full year earnings guidance, the revenue guidance is in fact weaker so youre seeing shares here for eyes, lip, face, beauty, or elf beauty drop more than 5 on these results. Kelly. All right, that helps explain it, courtney, thank you. Dont miss an interview with the ceo tomorrow at 11 00 a. M. On squawk alley. Well hear more whats going on with the company new details on the deal, or not between at t and time warner lets bring in david favor david. Thanks, yeah, its been an extraordinary day in terms of developments in the dojs ongoing review, of course of at ts plan to buy time warner the news weve gotten today, weve reported and others have as well as the doj is now at the point of asking for structural remedies to allow this deal to go ahead not behavioral remedies, ill goat more on that in a moment. The structural remedies include a request that at t, if 2 does buy time warner, either divest its directv unit or the acquired, what would be acquired turner broadcasting unit of time warner that unit, of course, includes cnn, which as we well know has been a target of President Trump for quite some time. Why this would be the case now well, it was unclear it was knowledge september sources tellme that the two sides were very close, days away they thought from a deal under which there would be Consent Decree what we call a behavioral remedy nor deal of some kind that would have perhaps solved any concerns about competition or allowing programming to only be delivered on certain parts of at ts service, but that one out the window and seems to have perhaps gone away when the fulltime antitrust chief was appointed, megan del raheem came into the job things changed and deteriorated in terms of the continued conversations and negotiations between at t and the government over this deal. Interesting to go back though and listen to mr. Del raheem himself when he was still a professor in an interview that he gave to canadas Business News network, in which he discussed his view at the time of whether this deal would pass antitrust muster. Take a listen. I anticipate that the fcc will have little, if any role, andit would be a pure antitrust it shouldnt be, you know, just the sheer size of it and the fact that its media i think will get a lot of attention, however, i dont see this as a major antitrust problem well, apparently that view seems to have changed. Now today, later in the day, we got a back and forth as well thats important to give some context to it. It appears that cnn, the News Division itself of course or cnn itself was reporting a source at the doj telling them that the doj had actually rejected an offer by at t to divest cnn. And so at t decided to immediately ra but the that in a Public Statement to us and others, until now weve never commented on our discussions with the department of justice, but given dojs statement, and it wasnt a statement, but it was that report this afternoon, its important to set the record straight they went on to say throughout this process, i, and that is Randal Stevenson never oured to sell cnn and have no intention of doing so. Its important to put this in perspective in terms of how unusual this opposition to the deal would be. Were they to take it to court. Yes, they always of course are looking at what would be something that substantially lessens competition. Vertical integration of this time, well it hasnt been opposed in at least as much as 40 years by the doj. Certainly was never expected to be opposed by seth or time warner but that is where we find ourselves now. The possibility certainly that the doj will have to prove its case in court and the willingness it seems of at t to do that, of course, what that will mean is, at the very least, a significant delay, and thats why youre seeing time warners stock get that lacked today, and of course the risk arbiters who invest in Companies Like that and try and take advantage of that spread between the price and where the stock is at that time, also getting hurt very badly by this unexpected turn of events, back to you. Dramatic one, david, thank you very much. Time warner shares down 6. 5 today and at t ceos Randal Stevenson will be on power lunch tomorrow well see if he can add additional context to whats going on there for more on this story, were joined by porter bib from Capital Partners and joseph flint from the wall street journal. Welcome to you both. Porter, what do you think about this deal potentially being blocked . Should at t just say, all right, fine, we dont need directv . There is very little chance that the Justice Department would ever win in court. I want to know why randal hasnt called david or a top, top, top lawyer whose gone against the government and won this is not a serious case from the perspective of the Justice Department porter, if its not a serious case, then why is it happening well, you cant stop the Justice Department from saying if you dont do this or do that, were going to actually take it to court and its up to at t to decide how to respond the irony is that this is a vertical integration combination, there is no competition, theres no threat to the consumer, if at t were actually ever to divest cnn, which is unlikely, they already have cnn on directv. So there is no consequence in what the Justice Department is claiming right now theres no real conflict and i have yet to see any sensible, logical reason to block this transaction its political porter, granting that in fact that it does seem that way that there isnt a kind of textbook precedent for blocking this type of a deal, in theory, you could come up with some kind of an argument, where mobile video watching, at t has a tremendous hold on a huge share of that market if they can privilege their own content through those devices, et cetera, you know where im going with this, basically you have to say the world has changed therefore the rule has changed the media landscape is in a tote disarray right now. And its never going to be the same again, youre absolutely right. Its all video, its all mobile. Television, and wired cable is five years from now going to be history. So at t does not have a monopoly in wireless or in any form of cellar distribution. They are competing a major player with verizon and with sprint and tmobile, but theres no case that you can make for monopoly or anybody, consumers or otherwise, being infringed upon okay. Joseph, let me draw attention to shares of 21st century fox which just reported earnings with, theyre moving higher now, and Dennis Berman who i think you know was raising the question of look, if the Murdoch Family is now selling assets, perhaps they see that theyre going to be less valuable going forward, what do you think about a possible deal to disney and how this reflects back on the at t time warner issue too well, couple things i do think obviously that fox is sort of put a sale sign out on its biggest assets and certainly would seem to indicate, perhaps, that going forward, they believe the bigger, the safer bets are in news and in sports the assets they want to hold on to and from the disney side, i can see why they want more content, they are aggressively trying to move into the streaming business to better compete against the netflix of the world and the more content they have, the better that is that said, i too am also struck though as a long time follower of the murdochs and covering 21st century fox that this goes everything the company has been against over all these years it marks a Seismic Shift in their thoughts on the media world and their role in it porter, would you you say that we could see a reshuffling still of these media assets in terms of what disney ends up acquiring, what at t does . The disney fox deal fell apart over price and terms but as everybody has commented, Rupert Murdoch and fox are sellers right now. He wants to hold on to his broadcast network, the fox news, fox business, and fox sports, because that gives him the political leverage that he doesnt have without those properties but the biggest, the biggest incident in ruperts change of heart and change of mind is the fact that the british regulators are not going to approve foxs buying the 60odd present of this they have basically declared that fox may not be a fit and proper owner of a broadcast news medi medium and that i think was the instant that put Rupert Murdoch on the sales block. Gentlemen, thank you both joining us on a big week for media deals. It certainly is a big week. Time now for a cnbc news update, lets get over to sue herrara. Sue. Heres whats happening at this hour everyone a former boston tv news anchor says kevin spacey sexual assaulted her teenaged son at a nan tuskt restaurant in 2015 heather telling reporters her son didnt report the assault at the time because he was embarrassed, but she says she filed a report with Police Last Week kevin spacey bought him drink after drink after drink, and when my son was drunk, spacey made his move and sexual assaulted him. Ive been wanting to make it clear, this was a criminal act carl ikhan was subpoenaed by the u. S. Attorneys office, seeking information pertaining to his activities relating to the Renewable Fuels standard, and his role as an advisor to the president and theyre looking at possible conflict of interest the company says it is cooperating with the requests. Las vegas has become the first city in america to have a selfdriving shuttle operating in realtime traffic. But take a look at that picture, unfortunately on its first day of service, it collided with a semitruck. No reports of injuries, but not a good start the shuttle is set to run in a continuous loop downtown hopefully more smoothly next time thats the news update that the hour, kelly, back to you soif many questions thank you very much, sue sue herrara. Time now for the takeaway. We begin today with apple on the verge of becoming the worlds First Company to be worth 900 billion. Michael, ive been skeptical this could be achieved seemed like any time exxon or apple in the past would get to this size and cut back down again, but if this is going to be a new threshold, is it anything for investors to be worried about . I wouldnt say worried, i would definitely say its a mark on the way up to levels we havent seen before, although inflation adjusted basis, adjusted for the size of the overall stock market, weve kind of been close to here before, you take a look at microsoft, i think its interesting given the type of Company Apple is, still very hardoriented, still kind of short product cycles. Thats why the valuation of apple is not bigger on a priced earnings basis, earnings went flat for two years from apple as they were between these big launches, but they keep buying back stock and theyre making it hard for the market to get them up toward that trillion dollar mark nevertheless, they go in alphabet, well see if they are next apple isnt just standing still either, its Just Launched apple paycheck and bethat in the latest ios the ease of paying directly in the messaging app could be a threat to square cash, chinas messaging giants my question, should investors in those competitors be nervous about this launch . I dont know if they should be nervous right now i think one thing to keep in mind is apples market share in smart phones its still a small minority of total global smart phone its not as if everybody is going to pay this way is going to do it only in a closed loop with apple but clearly theres a tlask these companies become kind of a feature in somebody elses product as opposed to a business of their own perhaps ones that are more pure play like square, like that opposed to the messages giants square of course lies the Small Business focus thats true it has more going on. And i think when it comes to vin mo, theyre not monitoring it active, they have to do something beyond the straight peer to peer payments. Square shares down 3 after hours, and finally shares of Dunkin Donuts after panera agreed to buy it panera agreed to sell back in the spring, and they would reunite them, but does it leave dunkin on the sidelines . They had been a possible rumor takeover its fascinating because this is a realtime experiment in what the market is looking for to make a stock work. So you had some kind of chatter out there that panera is going to buy another coffee chain, and bit up dunkin and didnt happen. It showed yo a shaken faith until business, in dunkins own business they had to put pull back on stores. Oversaturated probably in cheap coffee throughout, and franchises i mean, its going to franchise business, really not a coffee. It did make me chuckle on the day the journal did a whole story on too many coffee shops again, tough day for Dunkin Donuts roku doing well after hours. Better than expected earnings and coming up, we will discuss whether you should buy this beaten down stock in i guess relative to the first ipo pod after hours. 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. 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Mar marriott can still connect cruise lines and airlines grandfathered in companies can not do business at the port which is a special Economic Zone that cuba established to try to attract Foreign Investment all of these policies are designed to try and drive money toward a very small private sector that does exist in cuba, pushing people to stay perhaps in private homes that you rent on airbnb instead of at governmentowned hotels. Kelly. All right michelle, thank you. Michelle cabrera its ban year since donald trump was elected as president up next, former mcdonalds ceo ed rensi says what grades he gives trump when we come back. Feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Thats why a cutting edgeworld. 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Anytime we are responding to a structure fire, one of the first calls you make is for pg e for gas and electric safety. Its my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. Its handson training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our Community Safe and our firefighters safe. Together, were building a better california. And that is a problem for House Republicans because the rules that they want to use to fast track this legislation capped that price tag at just 1. 5 trillion now i spoke to representative mark walker who heads the powerful committee about this issue. He questioned the math and the objectivity of the cbo and he said that growth will help solve the deficit problem. This does create some deficits early on. We believe that the longterm growth over the next decade, even looking at nonpartisan organizations are saying we could be four, 4. 5 . This would more than offset any kind of deficit leading into this issue another headache for the house is this new 20 excise tax on imports that really hits multinationals business and conservative groups are against this and lawmakers are trying to massage the bill tax to address those concerns. Now im told by three people briefed on this issue that the senate will not include this provision in the tax bill that they plan to introduce tomorrow, but its much harder for the senate to make some of these numbers work than it is for the house. Not only do they have to deal with that 1. 5 trillion cap, they also cannot add to the deficit after ten years. So kelly, this is really an example of a case where the process is driving the policy. Back to you. I dont know whats going to happen tomorrow and the days ahead when we start to get their version of this, thank you well be keen to see what does play out former mcdonalds ceo ed rensi joins us for the one Year Anniversary of his election, mr. Rensi, thank you again for joining us you want to start with jobs. Happy to be here. How do you think hes doing well, i think overall hes doing pretty well. Hes only been functioning for ten months, i think the first five months were a disaster in getting his staff in place i think hes got two great generals working for him now in kelly and mathis i think internationally, hes doing an outstanding job, strategically, i think hes doing an outstanding Job Communications wise, hes sometimes inarticulate and blurts things on the twitter and calm down and be more quiet than he is. Hes learning the job and the thing i love about him the most, hes not a politician. And republicans and democrats alike better start paying attention to the strategy the mans putting forward because, he is a strategist, hes not going to play the silly political games. So we sere here on your report card, you give him a c on communication and a in International Relations and a in strategy now the strategy is the very thing critics take issue with, what do you think hes doing thats so effective there . Like any great ceo he has got an overarching strategy that says make America Great again. And hes not an apoll gist like obama. Hes telling the International Community very clearly, dont mess with us we want fair trade and thats in quote. Fair we want balance, we want thoughtful trade all of us have got to win, but nobody can win all the time. Hes a deal maker. Hes reestablished the strength of the u. S. Military and given those guys a green light to do what they need to do to make u. S. Military a great force of protecting our freedoms. So, hes pretty good at all of those kinds of strategic things. I wish that people would understand, you know, the conversation about virginia and new jersey the thing that everybodys missing in that youre referring to the wins last night where democrats won the governorships. You bet there are overthinking that dramatically, in my opinion, because the Blue Collar Workers that were democrats that supported trump are all about jobs theyre all about their familys security, thats the reason why this tax plan as part of his strategy has got to be dealt with its the legislative bodies that must do that, and you know, i hear this business about well theyre worried about how theyre going to pay for it. They havent worried about the deficit for the last 12 years, why are they starting now . Good tax plan in place if they want to pass it without needing 60 senators they need to start doing the right thing instead of worrying about getting reelected. Or you cant satisfy everybody. Theres going to be pain in that tax bill for a lot of people and theres going to be benefit for more people. Its going to be create jobs, thats what weve got to focus on so last question for you, before we go, your grade for him on the economy and on jobs is b who knows. Talk to me in a year all right incomplete ed rensi, thanks for joining us. Glad to be here coming up, roku soaring more than 20 after hours we will break down the earnings release, 26 gain, well see where the stock could be headed next, right after this [ keyboard clacking ] [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Talk to one today and see why were bullish on the future. 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 at ally, we offer low rates on home loans. But if thats not enough, we offer our price match guarantee too. And if thats not enough. We should move. Our home team will help you every step of the way. Still not enough . Its smaller than id like. Well help you finance your dream home. Its perfect. Oh, was this built on an ancient Burial Ground . Okay. Then well have her cleanse you house of evil spirits. Well do anything, spiritual chatter seriously anything to help you get your home. Ally. Do it right. His family. His steinway, which met a burst pipe. So grant met his insurance you are caller number 12. Which didnt quite cover the steinway. But what if hed met pure insurance . Owned by members. Hed have met lisa, your member advocate. Whod introduce him to gustav, a temporary address, and help him get tickets to the mozart festival. Excuse me, grant likes beethoven uh, the beethoven festival. Pure. Love your insurance. Shares of roku were sagging all day ahead of the companys first Earnings Report since going public in september. When the earnings came in, what a jump, up about 24 dan rayburn is principal analyst at frost and sullivan. What do you think of the results . They did a good job a couple of key things for investors who have the stock short term, over the last 2 years, 40 of the revenue has come in q4, obviously the Holiday Seasons. So we have to keep an eye on q4. The second thing is, the competition is fierce, amazon, apple, google, chrome cast roku has done a good job of being an independent, standalone box. But they have to become a Platform Company you have to look at the ad sales. How much revenue are they getting from content theyre putting on the platform . It sounds like youre saying they have to compete against apple and google and amazon. And can they its a good question. Its a difficult for them in the sense that they dont own an ecosystem. What does amazon own a commerce company, they own hardware, browsers same with google and apple roku doesnt own an ecosystem. They have to make money, two things, one, internationally we have to watching that growth. The second is a movie channel of their own, and that competes with the content onne eowners t come across their box. My question is, ultimately, what are the virtues of being this independent box third party, where youre trying to knit together a bundle whats the value of roku, why is roku in the market today when there are so many choices in content and platforms . When is the smart tv going to take over and people start using the functionality of the smart tv rather than standalone boxes . Here comes roku as an outsid outsider i sense and some of the others, t lchcl, theyre on sonn visio, some of those have decided to go with video that is a high bar, but again, strong afterearnings reaction dan, thanks for giving us stuff to think about, dan rayburn. We asked you about some of your worst Job Interview experiences. Cnbc premiers the b jointerview, youve send us your memorable ones, well share them after this usiness track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Every day, on every street, in every town, across america. Small businesses show their love to you. With some friendly advice, a genuine smile and a warm welcome they make your town. Well, your town. Thats why American Express is proud to be the Founding Partner of Small Business saturday. A day where you get to return that love, because shopping small makes a big difference. So, on november 25th get up, get out, and shop small. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. A bunch of movers after hours, 21st century fox up 1. 5 , iac down a half a percent, roku up 23 cnbc prime takes a look at the Job Interview, premiering tonight at 10 00 p. M. Eastern. Lisa emails, the interview was going well until the interviewer asked me how many children i was going to have. I said i didnt know it was clear i was not going to work for these membership. Jeff says, the jobs were filled and they didnt tell me. Cindy tweets, i am just terrible at interviewing. My very first boss figured that out and hired me at four different companies. I love that one. A happy ending. The interview is such a microcosm. Im not sure, its a very difficult thing. A good manage has to be able to see through that, that performance aspect i must say, lisa has a lawsuit, how many children you have its true, thats a big nono. I had a bad one but i ended up getting the job, my first job after college. They forced us to do an interview as if i was a reporter to interview the boss. They still gave you the job thats what im saying, im not sure theres much more anguish you can watch on the Job Interview tonight. Weve had huge movers but some huge overhangs because of these deals that might be happening in the media space. 21st century fox up 1. 5 the way they position their pot tour, whether they think they need to get bigger. But the at t time warner stuff, if it plays out the way its being reported right now, its surprise that go the Broader Market didnt take it harder you think they think its not arbitrary, just political . Just strictly this one company, that could very well be the case all right michael, thank you, as always. Were glad you were hired here too. That does it for closing bell. Fast money starts right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys time square im melissa lee. Tonight on fast, one hot stock is cooling off, square, following a huge run this year well hear from ceo jack dorsey. Plus its judgment day for retail shares of Department Stores have been sinking on their Earnings Reports. Well tell you how bad it can get and the one name that can buck the trend later, its been