Transcripts For CNBC Closing Bell 20171109

The sfenate flaplan ylan reporter we dont have to rely on sources because the Senate Version of the tax bill is now officially out. Here is some of the key details. As weve been reporting, it would delay the introduction of the corporate rate cut by one year to 2019 however, it would get down to 20 and stay there permanently it would also limit the ability of companies to deduct their interest, but give them full and immediate expensing for five years. The individual side of the senate plan is quite different from the house version of the bill the Senate Version has seven individual tax rates the top tax rate is 38. 5 . The senate bill will also include a full repeal of the state and local Tax Deduction. Now, that gives them a lot of money to play with to do some other things in the bill such as keeping that 1 million limit on the mortgage Interest Deduction. The house version of the bill had lowerered that for newly purchased homes. The Senate Version of the bill it keeps it at its current level. The senate bill also preserves the deduction for medical expenses as well that is something that has been controversial when it was taken out of the house bill. On the estate tax, the Senate Version would not fully repeal the estate tax inste instead, it doubles the exemption for individuals from 5. 5 million to 11 million before that estate tax begins to kick in. Now, this is what the senate calls a concept yuual mark we dont have actual legislative text of the bill because the senate is continuing to fine tune some of those Details Senate republicans will be meet ing with treasury secretary mnuchin and gary cohn later on this afternoon meanwhile, over in the House Ways Means Committee, they are still debating their version of a bill a vote is expected later on this afternoon, guys. Republicans are sprinting to the finish here to get all this work done before they leave today for the veterans day holiday. Back over to you. Is the house piece of this irrelevant now, though it sounds like they have to take whatever the senate is able to give them. Reporter not necessarily the house will bring its bill to the floor if it passes out of committee next week, and the key here is that there will event l eventually have to be a compromise between the two chambers thats the way it use the te us back in the olden days. Right, right. Reporter well see which provisions in the house remain and which provisions in the senate are going to remain both sides have to give something up. Boy, what you laid out ther , we know about the house bill and amendments kevin brady added, i wonder where the middle ground is right now theres a chasm between the two right now. Ylan, thank you, well be checking back with you a little bit later. Joining us now, jimmy, cnbc contributor from American Enterprise institute along with terry haynes from evercore isi thank you both for joining us. Would you agree theres a lot of space between these two plans, what do you make of the developments of how the senate is going to approach this . First of all, i think in practical terms the senate is able to come up with a bill that can get enough republican votes to pass, i think the house is certainly inclined to accept that bill no matter what they come up with theyre not going to have a repeal of obamacare. They will go with that bill, i think, unless something really, really crazy and two, what you have to look at is all these changes youve heard like delaying the Corporate Tax cut for a year, all that does is try to get, squeeze this bill into the 1. 5 trillion space the senate has to work with. That doesnt make it byrd rule compliant which it needs to be for them to be able to pass it with just republican votes that is still a problem. And im not sure even getting that state and local Tax Deduction completely solves that problem. In fact, im pretty sure it doesnt. Big pay for, though terry, what do you think not enough. If jimmys right, they can get the number of votes they need in the senate, is kevin brady just spinning his wheels in h the house right now let me put this in a way that new yorkers will particularly appreciate the idea that the Corporate Tax rate cut will be delayed by a year, forget about it. Not going to happen. That is going to be the house will insist upon that, more importantly the president will insist upon it president s going to sign something into law hes not about to be interested in delaying this thing by a year but we have had indications from the white house thats not the key point. That they from mulvaney. From mulvaney they would accept a oneyear delay on that, terry. Yes, but they dont prefer it what i think about this, look, you what you want is you want an imPerfect Senate bill that will move through the Senate Committee and the full senate as quickly as possible over some kind of Perfect Senate bill that is going to run into all kinds of problems, which is exact bly what we saw with the Affordable Care act you wantimperfection, you want something to pass, get the bills. The bill is going to be written in the conference. Everybody understands that going to take a little bit of time at the end of this, whats going to end up happening, i think, is you get an Immediate Tax cut to 20 . Jimmy, if thats not the case, i dont see how they can accept a delay in order to get the biggest bang for their bucks going into the midterms out of this how are they going to pay for it are there going to be details were not aware of even in this stage that come up in those final negotiations listen, i think the choice republicans had to make here is what to make temporary do you make the business stuff temporary, which they are doing a little bit with the expensing, or do you make the personal side temporary . To me, that sort of remains the choice the risk to the Corporate Tax cut isnt that its delayed a year the risk is, a, that it ends up being temporary, and then theyre doing a riverboat gamble that democrats wont want to raise it in ten years, or is it phasein, or is the final rate something closer to 30 than 20 . Those are the risks for the central piece of that plan, not the one year. Whats the big deal with making it temporary if thats the alternative relative to delaying it for a year or doing some kind of phasein . I was going to say, fine, sure, it will sunset in ten years, you know, everybody can see how they like it and maybe weigh in on it again. At least theyll be able to implement it the way that theyd like to see fit. Right well, remember, republicans were talking about uncertainty. Youre going to have a massive tax cut which is uncertain how long its going to last, all those fancy growth models that republicans have been using to show all the dynamic scoring, they dont work so well if that tax cut is temporary because that drains it of its growth potentsy. It needs to be permanent. All right. If they want to meet the budget rules, fine, but theres a tradeoff. We may hear from Republican Leadership of the senate next hour, so were looking ining f to that. Thank you, both. You bet. Jimmy terry haines see you a little bit later. Chairman of the j. Crew group is on stage at the New York Times dealbook conference with our own Andrew Ross Sorkin. Theyve just begun lets listen in for a moment here. I kind of stepped down and became chairman. The board and i agreed that i wanted to go and they were fine with it as long as i hung around for a while. So i kind of was over the last year or two planning to fire myself so it timely happened july 10th of this year and i dont know if i fired myself, but its okay. Not the first time ive been fired, so so you were fired no, i wasnt fired. Im actually the largest shareholder, individual, that doesnt say much, at j. Crew my partners, tpg, gendleonard g, own 90 , i own 10 of the company. You said the last couple years have not fbeen fun not been fun for virtually all the people the quote unquote traditional Retail Business. For sure. Its been miserable. I mean, i dont want to see that as a headline, but you night have just made it. Yeah. Just i better watch what i say. I realize theres so much press here anyway, hasnt been fun. It hasnt been fun because what, meaning when did you realize something was turning . Theres always signals and always ability to connect dots but over the last two years or so, no matter what you did, it seemed to be falling more so behind than moving ahead you realize when there was this huge growth in sale, and, you know, when this device here in my pocket actually is every brand in the world, i could shop right now any brand, check the prices, buy it at the cheapest price. So theres no protection on price. And you realize when traffic in the malls and in stores were dropping, you realized when there was motte that much differentiation in product, but mostly every day you looked at numbers and they reinforced that, in most cases, for example, madewell which is now a tenyearold company is an extraordinarily fastgrowth business smaller, not really a legacy brand. Very much focused on making the best jeans in the world. We try to think we do. And so that business has been growing but its also not, as i call, a legacy business thats been around that long a time and its guaranteed in the fashion business this is the only time where ive seen it that usually fashion brands, or anything thats fashi fashiony, kind of has this life term then it kind of gets hit. Hit a wall then it usually comes back the difference now is its not coming back that easily anymore. Or its not coming back. And you think thats a function of texnology . And by the way, im pointing at your pocket because you had your iphone there you used to bon the board of apple. Yes when steve jobs was running the company. Right. And maureen jobs is going to be joining us very soon. Good. Did you guys ever talk about the coming age of this happening . Well, i think, you know, it took the speed of it, we talked about it for sure, but, and everything was moving in that direction, but i dont think anybody was prepared, or i wasnt prepared for the speed in which its happened. Although in a funny sense if i look back at my career and i know we dont have that much time, but 30 years ago when i started running ann taylor, i recognized i got out of the Department Store business because there was no protection of your inventory against price. And then you had to drive 30 or 40 miles for the nearest discounter there was not this device that gave you every price worldwide and you can spend it and there was no amazon, of course, so for me, i moved out of the business of being a branded buyer i didnt want to depend upon someone elses brand steve, when we joined together, he went on to gap board, i went on his board, knew that he couldnt if he couldnt control his brand and the environment, he would not have a future apple business. So then he went into the Retail Business owned his distribution now, of course, he sells others by himself i think i think we all kind of knew it was coming, just the speed of it. How much, though, is this about technology disrupting the business, and how much is about the change in beheavior of co consume consumers, what we wear matters, how we appear matters, or mattered, i should say, and maybe perhaps people are more willing to take their dollars and buy the phone . I couldnt agree more with what you just said the latter much has to do with consumer change of their behavior you cant just blame technology because technologys part of retail you know, retail today is seamless between online and bricks and mortar. The fact is one cannot argue with a customer and his or her tastes and trends. So in my personal opinion, this is all my personal opinion, theres a trend going on which says clothes are just not that important or as important as they were. And if you go through the audience and i always do this at the office when i went to the office every day, how old is what youre wearing . And whats the latest trend in the world and whats this, that and the other thing . So i think a lot of it has to do with the fact that its less important, it has to do with the fact that everyones i dont want to keep reaching into my pocket here, but everyones kind of obsessed with spending time on this. Theyre not really hanging around i used to call shopping seventhers local villages you dont have to go to the village to see other people if youre on your device. Because thats the new way of meeting and seeing and having relationships. Hot thing over the last several years was this idea of fast fashion the zaras of the world people said thats what was really taking market share is that still the issue or is it really that just the dollars are not even going you said about new clothes, to even that kind of material. Again, in my opinion, at the end of the day, theres more inventory. I think in economics, and i wasnt a great economics student, but i think the more inventory, even if demand stays the same, it pushing down prices so i think theres been deflation in the industry. I think the fact that if im a customer and im used to seeing 30 off today, 40 off tomorrow, black friday is coming, theyll be giving away inventory, think the fact of the matter is people get used to not spending full price and the fact is that you dont have to. Its changed everything. Fast fashion has had huge growth and you really cant feel goods online i mean, the fast fashion plays have been fantastic. They werent around 10 or 15 years ago. I think its okay to buy clothes, wear them for a night someone said to me yesterday that, well, im renting clothes by the month and why should i even buy clothes anymore . So i think clothes dont play the same role in ones life as they used to okay. Your former employer, ann tay r taylor yes. Now renting their clothe. Thats right. They are i was talking about rent the runways. Thats right. They are i was talking about rent the runway. What do you think what do i think we did ride sharing this morning with uber. Is there a day where were all going to be renting clothes . Well, you know, what do i think . I think its Pay Attention to your core business, get your goods looking great. Try to figure out how not to be a discounter dont start groping for solutions to problems that arent that easy to solve. I mean, you have to sometimes face the reality that something is not going to grow, and it might be going like this and maybe thats the state of the Retail Business. Let me ask you just a sort of maybe this is a life question for you you look at the gap and this remarkable success you had, grow, grow, grow, grow, its great. And then it starts to level off. Then it starts to, politely, im going to say, go down a little bit. Absolutely. Same with j. Crew, right . You get there, its hot, hot, hot, hot, hot, you inject this energy into it is that the life cycle of fashion . Is that Something Else is there any way you think when you go look back at your experiences that you could have kept it forevgoing forever. I think its the life cycle of life. Its great its amazing its exciting. Then it kind of wears off a little then its a very low entry the copycats come in we started old navy because target announced they were copying the cheap version of gap. This is 1994 so i went to target, looking at their cheap version of gap they were called Dayton Hudson then it was called everyday heroes. I looked at their knockoff for the gap store. I got furious and angry. Thats what you do when a competitor is trying to take eat your lunch we stopped off in chicago on the way back to San Francisco and found out that gaps clothes i learned this was not the cheapest game in town. I always thought gap, coming from ann taylor, was less cheap. Anyway, long story short, we gave a bunch of people 200 bucks each to go shop discount these are people who worked at gap. They came back and said as long as the clothes are right, values there, and they didnt say this, but treated respectfully with dignity, we think we shower wouure would bu clothes. Jeans in america in 1994 were under 30. We started old navy. Named after the bar in paris now thats mart of the art and science of retail. So we went to the old Navy Business which is still doing well different version than we founded. I think fashion brands do run their course then they get reinvented fancy expensive example is gucci right now. And i dont im not a fashion expert im a businessperson who likes to sell merchandise. And i dont think its about fashion as much as product and what people are wearing. And figuring out the tastes and lifestyle of people. I think you said it, i dont think clothes are that important anymore. Let me go back then to the digital side and talk about what i think in retail is the elephant in the room and read you this this is lee peterson, evp of Brand Strategy and design at wd partners he says jeff bezos is the greatest merchant of this century and he says who is going to be the next successor of brilliance none of these merchant princes have successors. Who is Ralph Laurens successor . Its not tom ford. Its no one. And that that is what jeff bezos has done what do you think about that and what do you think about what amazon is doing . I think its been nothing short of extraordinary but, of course, if you look at their earnings, and im not a stock market person, i dont understand the earnings thing, but they announced earnings with facebook and google in the last two weeks and you looked at the 190someodd million versus the billions versus 33 billion in sales i guess if you go out there, if youre valued at the extraordinary level youre valued at and people say, well, you dont really have to have any margins, look, forgetting that everyones angry with them half the time, or that they do what they do, but theyve been nothing short of brilliant theyve created a new habit of shopping in the world. Its a habit and once people change their habits, you know, its really hard to undo that. Heres a brand question would you sell your goods on amazon that is the central question that so Many Companies are grappling with today i dont have to Andrew Ross Sorkin interviewing Mickey Drexler at the dealbook conference. Fascinating me ining mickey r i guess the headline is he doesnt understand earnings. That was an eye opener. A classic merchant i guess. Everybody is slooking flooki insight into retail. Ed oather big story, at tceo speaking about out david faber joins us to unpackage the story a little bit and bring us the latest comments good luck, david. Thank you so smuch, bill. Usually i like to do the interviews andrew, of course, sat down with Randall Stevenson earlier. Of course, there are opportunities in situations like this to as well talk with the principals guys, speaking both sides, this story continues to develop between the objections at the department of justice to at ts plan to buy time warner and time warners response, its becoming clearer and clearer, this is slykely, thou l likely, through not definitely headed to court. He made it clear they would rather visit that destination sooner rather than later as soon as possible. In an expedited fashion. We do know, at least i heard as well that they did start that clock, socalled, under which they would either close the deal, the doj could bring an action against them which they would then be able to respond to over the next 30 days. So the likely ood here given what were hearing from both sides seems to be that they are headed to court to prove to a judge that their deal will not be anticompetitive. What is the theory being used by the u. S. Government to say that you cannot do this deal as it currently created . Well, it appears to be the linkage of distribution and content that department of justice official are concerned about. And the fact that this combination of at t and time warner would have too much power. It is a vertical integration we pointed it out so many times. Not horizontal not taking another competitor out of a market. And yet it does appear that the department of justice does not seem to think that that deal, as is currently constructed, is one that will enhance competition in any way, shape or form as you might imagine, Randall Stephenson fully disagrees with what his company would become and what it would represen competitively and a very quickly changing need what landscape. The idea that somehow were going to take distribution and content and create something thats so powerful that weve disrupted google and amazon and facebook and netflix, it borders on comical, to be quite honest with you what were trying to do is build a platform that gives us an opportunity to compete with those guys and i just think these folks, amazon, google, facebook, have created some amazing franchises, what were doing here is building something that we hope will give us a shot at competing with them. Thats where we stand right now. His contention being were only trying to gain some scale at least to compete in this new world that we talk so often about, and the department of justice apparently not willing to give and demanding either a divestiture of turner or directv to meet its structural objectives, structural concerns about the deal, itself kelly and bill david, theres one thing, maybe you can help clarify, everyone has been reacting to this news as if it wasa guaranteed that this deal was go i going to get done. We know time warner share z have been trading at a discount to the trade value, big discount even after the deal was first announced and yes, theyve been narrowing the gap over the last couple months but this was never priced in even from the day it was announced like it was going to be a sure thing. Thats a good point i think youre right theres always been concern on the idea that this would become politicized. We can certainly raise that as a possibility here, a lot of people arent sure of the legal theory the department of justice will be standing on to oppose the merger, kelly. The idea that the president was opposed to it, we know that, hes on the record saying that the idea that he is unhappy with the coverage of cnn, we know that he said it many, many h titimes. I do think that figured into investors determinations as to the likelihood that this deal would go through easily. As well, you just had it go longer and longer. The longer something goes, the more you are worried that it Wont Quite Get to the finish line so those who were concerned, perhaps, were right in being so. All right, david, thank you sure. See how this works out. Could get ugly already is, i guess. And its been a big week for media upheaval. After the bell, we have disney reporting its earnings, of course we know this comes as reports swirl that the company approached fox david faber also reported that story, by the way. Right. Approached fox to buy its entertainment business well preview those earnings and discuss whether the fox disney deal still makes sense when we come right back. Well, the National Debt is 20 trillion. As we keep adding to it, guess who pays the bill . Him. And her. And her. Congress, we should grow the economy. Not the debt. Thanks for the ridealong, captain ive never been in one of these before, even though geico has been ohhh. Ooh ohh here we go, here we go. You got cut off there, what were you saying . Oooo. Oh no no. Maybe that geico has been proudly serving the military for over 75 years . Is that what you wanted to say . Mhmmm. I have to say, you seemed a lot chattier on tv. Geico. Proudly serving the military for over 75 years. You ok back there, buddy . Welcome back lets get to our Closing Bell Exchange today, with the dow down 115 points, we have greg here from the sarian group at hightower. Jonathan from mir reridian parts both at post 9 jack joins us from the cme out in chicago jonathan, again, we were down 250 points when the contours of the tax bill were really kind of coming out what do you think is going on with this market this afternoon . Right, weve seen this market move in one direction, its been straight up. Whenever we get headlines like we had coming into today, whether the market movements in japan, tax reform we continually talk about interest rates, the market does get a little jittery as were trading at the highs. What we saw today was exactly that investors had a reason to sell this morning i think as the day went on, i think investors felt a little bit more comfortable about the news we were seeing. Whats interesting enough when we talk about the tax reform, uncertainty and delays, those two words that have been thrown around all day today im surprised havent had a bigger negative effect on the markets. What do you think i mean, clearly expectations have been very high on wall street for this tax reform package. And its looking kind of dicey right now. Given how far apart the house and the senate seem to be right now. I agree, bill, this is going to be a volley back and forth. Right. I think highincome investors need to focus on two things, what does it mean for them personally accelerating deductions. Look how well tech has done. Large cap growth this year people should be looking past the noise and using to do some charitable contributions where they get the deduction, rebuy with cash, on a corporate level, market level, look through the noise and look at repatriation, whether this year, next year the top five pharma company, have hundreds of billions of dollars overseas with you get some of that to come back over here, thats a catalyst for merger and acquisition activity, so what is the reaction most likely from your clients based on this plan i mean, what is going to be the way that they deal with, you know, lower corporate rates and maybe trying to tyake advantage that or ways of offsetting the increase in the state and local property taxes, that sort of thing . Great question. For higher income earners, its not a great benefit. You remove the state, local deductions, the march rginacgini mitigated. Rebalancing in a taxeffective way is going to be more important next year than this year. Jack, weve an bull been looking at this flattening of the yield curve which often suggests the bond market is anticipating Slower Growth members of Congress Told us the tax reform package would grow the economy faster, 3 , 4 how do we reconcile that, how much of whats going on with the treasury yield curve is more about Monetary Policy than fiscal policy . You know, bill, i think a lot of the yield curve trade has to do with whats going on in washington with fiscal policy. The one important part of that is the fact that theyre talking art delaying out another year for the Corporate Tax reform you know, weve seen this play before it happened in the early 80s. Some of us were around back then when reagan and tip oneill cut their deal remember, the market spiked up when reagan was elected and then what happened was because everything was delayed, all capex and all of that spending got pushed out a couple years. We went through real stagnant growth for a couple years there. Were talking about gdp suffering, talking about earnings suffering all of that has not been factored into this market, so if, indeed, we are going to see dysfunction with this fax reform, look for this market getting worried and more than likely pulling back a little. Before we go, jonathan, i mean, how much i know youre inclined for masrket to go higher. We came back from the 250point decline on the dow, do you take that as comforting development or more concerned we had the selloff today . Im not concerned with the selloff. This is natural, right i would like to see the market consolidate at these levels were at here. We went from 2,550 to 2,995 in the s p real quick needs to come back and settle in for a little bit of time were getting closer and closer toward the end of the year, we got thanksgiving coming up so less trading might be occurring in the next few weeks. I think participation on the sideline is going to let us take a pause. Usually thats the case anythings been unusual lately gentlemen, thank you for your patience greg, jonathan, and jack thanks for joining us today. Thank you. We have some breaking news now on the house tax bill. John harwood, fill us in bill, the House Ways Means Committee has taken the first step toward enacting this bill by passage on a partyline vote. All 24 republicans voted in favor. All 16 democrats voted against its impressive that republicans were able to hold all of the members of their party in line of course, this is the Ways Means Committee, not the full house. Paul ryan just put out a statement saying this is a step toward for real relief for the american people. Lots of political obstacles remain Different Senate bill is coming out this afternoon nevertheless, republicans have taken the first step john, thank you the senate did just unveil its version of tax reform which differs significantly from the house plan joining us right now with her response, senator Maria Cantwell, democrat from the state of washington whos a member of the Senate Finance committee. Senator, its good to see you again. Welcome back thank you for joining us. Thank you thank you. Im going to bet you would vote against this bill, but im curious your thoughts on as its come out now, the word i used to kelly during commercial break, its a little more draconian than the house bill. I mean, there are, you know, the state and local deductions are gone, and theres some other areas in there taken away the deduction on home equity loans, for example. I mean, but overall, what do you make of what the gop has put together here . Well, i think its a charade that the senate has to wait until the house finally votes before they will tell us what they want us to vote on next week i think that the tax code and how we grow our economy in the future is so important that we should be doing it in the broad daylight and understanding the implications you just talked about a couple of things i care greatly about, i guarantee you people in the nor northquest northwest do thats the housing issue making housing more expensive, making it middle class families having to pay more in taxes is not something im interested in. I mean, theres been speculation thats why amazon is leaving the state or should say finding a Second Headquarters elsewhere. Is there anything in this plan that you think might help mitigate that effect or no . Both the house and the senate are marching toward a path of making housing more unaffordable in the United States of america. I think thats a mistake housing used to be 15 of gdp, and it has fallen down to 12 . So the notion that weve done enough for housing in if the last several years is just not true so making it worse by a tax bill that puts more burden on the middle class and making it harder for them to keep a home or finding affordable options, i guarantee you that if we would just step back from this, lets understand what were doing, and really do something that can help housing in the future, i think would be very positive for our economy. All right look, no bill is ever perfect. Youre never going do get everybody onboard. Are there things you could support of the repatriation, dropping the rate there for corporations to bring all that cash back to maybe create jobs, do investments here in the United States . The fact they are maintaining seven income tax individual income tax rates and lowering all of them. I mean, any of that work with you at this point . Well, i guarantee you that coming from seattle, i know how important it is to compete in a Global Economy and were doing it every day so, yes, we want to have lots of discussions and repatriation is a great idea that we should hone in on. In fact, i would say, instead of trying to swing for the fences and change the entire tax code over one week period of time without really input and insight as to the effect, lets take our time and get a couple of base hits under way instead of this kind of measure that literally will raise taxes on millions of middle class families. Why do we have to raise taxes on middle class families just to give corporations a rate that theyre not paying anyway . So if they keep the deduction for state and local taxes, would you support this well, i dont like the anwar provision, the notion that boeing or microsoft has to drill in the arctic wildlife refuge to get a tax break, i just dont think it makes sense so i think its got lots of holes, but at this point, wed like to just see what it says because on monday, someones going to ask me to vote on it and i think its much better for our you were talking about the markets. They want predictability everybody wants predictability your last speaker talked about this i guarantee you last january we could have done a repatriation bill that focused on infrastructure financing and housing and we would have been off to the races in fact, i had a chance to say to the Vice President , mr. Vice president , base hits, when you guys swing for the fences like on health care, and you want so much change instantaneously, it doesnt usually work out all right senator cantwell, always good to see you, thank you for joining us appreciate your time Maria Cantwell of washington joining us. Elsewhere today, disney is in the spotlight after reports the company approached fox to buy its entertainment units. Coming up, well get a preview of what to expect when disney reports its own earnings after the bell and whether ceo bob iger will address these deal talks. Stay with us whoo woman class, lets turn to page 136, recessive traits skip generations. molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. thawhyour boss . Ork for . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. You seen roku today . Up 54 now after reporting a big earnings beat yesterday. The companys ceo spoke to cnbc this northermorning. He was asked if he could see roku going the netflix route in the future our business is being a Distribution Platform for other peoples other companies content being a largescale Distribution Platform. So, you know, we dont have any plans to produce original content. They make digital streaming devices. Streaming is the hot word right there. We, after hours on these earnings, they were up almost 30 . Theyre up more than 50 cant remember the last time ive seen a stock move that much other than a biotech on earnings. Huge. 20 minutes to go market is coming back. The dow is only down 91 right now. S p down nine. Nasdaq down 40 the russells are down seven. Disney and 21st century fox making headlines earlier this week about a possible deal of assets yesterday we saw a fox earnings beat which is paying off today see it in fox shares rallying were going to preview what to expect from disney also seeing some green right after this. Cnbc sector sort is spons sponsored by sector spdr etfs. Sector spdr etfs visit us on the web at sectorspdrs. Com. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley 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. Welcome back walt disney the best performer in the dow today up more than 1. 5 getting ready to report earnings after the bell today lets send it over to Julia Boorstin with a preview. As important as disneys numbers is what ceo bob iger indicates about the media giants interests in foxslis fs igers perspective on the Justice Department approving deals. Were also looking for details on the espn and disney direct to consumer apps in the works and updates on the impact of cord cutting and digital tv alternatives disney is expected to grow earnings about 2 . Revenue is ex. E expected to inch up. 6 . Kelly, back over to you. All right, julia, see you in a few. Thank you. Should investors be betting on instocks ahead of the earnings joining us to debate it, jeffrey from jbl advisers, our bull on disney, brian from Pivotal Research group takes the other side he joins us by phone thank you both very much for joining us jeffrey, why are you a bull here for disney, you know, were so impressed with what theyre doing in the film side of the business, how they nurtured the franchises from marvel, pixar, lucas, especially, youve seen significant this year has been a little tougher because of the comparison with star wars. As you get into next year weve youve got two lucas films, four marvel films, two pixar films and two of disneys own branded films that will do exceptionally well, youre going to see those numbers gross rapidly. Theme park business has been terrific expected to be terrific. As capacity has expanded dramatically and obviously the White Elephant in the room is whats going on with espn subscribers, but perhaps that will mitigate, perhaps, even into next year and we think thats a bullish sign especially when youre trading at a valuation below a market multiple on next years earnings estimates. Brian, are you a bear on disney because of that elephant in the room . Espn yeah, i think thats safe to say. I think that the longterm view for espn, while it will still be an important collection of networks, is that its going to continuously see margins eroding. They can grow revenue but only at much higher cost, much lower margins. We barely have seen the beginning of facebook and google and amazon getting into the sports rights business when they do, youre going to see cost elevate even further. Direct to consumer businesses for over the Top Solutions are a really good thing strategically, but those will be substantially lower margin as well than the businesses that were presently in if. You have the ceo succession matter which i think with every passing month, if it becomes more of an issue, you know, under 18 months is not a lot of time to manage a transition. Im sure theyll manage it fine, but it adds another level of risk and uncertainty to the company. Okay. Jeffrey, what about this possible deal for disney to buy the entertainment assets of fox, do you like that do you think it adds value to the company . Would you like to see them do more of that disneys done very well in making very big acquisitions in the content business the last five or seven years. Fox certainly would complement their business, perhaps not as much in film as in Television Production we think that could be a nice addition you know, obviously price becomes an issue and how that plays out, but as youre moving into and transitioning into an ott or dtc business model, having more content will only be advantageous to you. And brian, would that change your mind about the outlook for this company, if they did buy those assets no, i think its definitely a positive thing for disney if they had more scale. Thats unquestionable. I think the underlying trends that are hurting the players in the industry will continue i guess the question is whether or not that margin erosion is appropriately factored in to valuation. All right, gentlemen, thank qu you both well have those numbers from disney coming up about 11 minutes to go until the close. Dow is down tripped digits once again by 105 points. Those headlines about perhaps a delay in the Corporate Tax hitting the market this morning. We also had pressure overnight from global markets. The s p is down ten. The nasdaq is down 42. The russells down seven. Equifax felt the heat from congress in hearings last month after septembers massive data breach more fallout may continue today when the Company Releases earnings after the bill. You got your hands full after the sh tig. Owonht once again. Well have a preview of those numbers coming up. [ 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. 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. Art cashin just stepped through the crowd to tell us the markets on close orders show an imbalance to the buy side of 450 million weve seen the market comes back here for a while so well see if that has an impact on the close as well. The losses have been more than cut in half at this point. The dow was down 250 were down 98 points right now meanwhile, equifax gearing up to report earnings in a few minutes. Aditi roy has more on what investors should be watching for. Aditi . Its the first Earnings Release from equifax since its massive breach the Earnings Call which incidentally will be held tomorrow morning will also be the First Public Forum where investors can grill execs about the attack the streets looking for 846 million in revenue and earnings of 1. 49 per share despite the breach, theres not a single sell rating for the stock. It has ten buy ratings and four holds. Equifax shares are down more than 25 since the breach was announced. Analysts will also be looking for any commentary on how much the breach has cost the company. Guys, back to you. No sell ratings okay. I know. Okay. Were just pointing that out, aditi. Well see if that changes. I know. Just making sure we heard right. Hasnt changed yet. We will come back with seven minutes left there the trading session. The dow down 95 points we have the closing countdown momentarily for you. Then after the bell in addition to equifax, were going to get earnings from disney, lions gate, rdronostm, nvidia among others were going to bring you all these results as soon as theyre out. Stay with us 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 whuuuuuat . Rtgage offer from the bank today. You never just get one offer. Go to lendingtree. Com and shop multiple loan offers for free free . Yeah. Could save thousands. You should probably buy me dinner. No. Go to lendingtree. Com for a new home loan or refinance. Receive up to five free offers and choose the loan thats right for you. Our average customer could lower their monthly bills by over three hundred dollars. Go to lendingtree. Com right now. 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. About 3 1 2 minutes left in the trading session here what its such an exciting time to be in the world of business news. Im glad i didnt retire last year like i threatened to. Was that out loud . A selloff on the open this morning, word that the senate bill was coming our way this afternoon. And it had all kinds of different provisions different from the house bill and sure enough, wie were down 250 points just like that we did come back this afternoon after we got a better sense of what the bill was all about and well see how it proceeds from here as they try to reconcile the differences between the senate and the house the best performer today for the dow, that was disney, as they get ready to report earnings the worst performer turned to et to be mcdonalds although it was jostling for position with other Companies Like United Technologies and johnson johnson. Then the retailers, im going to bring Bertha Coombs in here, the retailers were strong performers in many cases. Look at this, macys up 11 though sales were lower. Outlook for the holidays is good ko ko ko kohls finished positive jcpenney, look at that. Cody reported well, makeup folks and mattel, very strong day as well. The feeling is retailers know things are soft, know things are difficult and theyre going to be much more disciplined about their inventories for this Holiday Season so thats part of the reason some of them are trying to encourage you to shop earearly. They do not want to be stuck with extra inventories. What i found interesting today, while everything sold off yes. One of the sectors thats done really well today has been the real estate sector yes. Not just because of housing, but thereal estate and utility sectors in the s p both hit 52week highs today. As people were chasing that yield. They were chasing the reits. They were chasing the utilities. That sector has a 3. 33 dividend yield. And as were seeing some other rates change, people moving out of corporates, they seem to have a bid for that today by the way, you know, theres been a cold snap making its way across the northern part of the country this week. Has th as that happened, price of natural gas continued high and at a level today we havent seen since last spring. Tomorrow in the northeast, were going to have windchills in the teens. I know. So bundle up. Excited finally able to wear my warm sweaters its been forever. Good for you. Way too long. Some of the retailers will be happy about that as well. Exactly, theyll be selling coats. The interesting thing one trader was saying that right now we are at what is effectively the tugofwar between the house and the senate. Boy, thats for sure. The feeling is that the house is a bit more bullish if youre looking for a big Corporate Tax cut. And thats one of the things this market has really been hinging on so to see who wins i hope so. How that works out is one of the things people are going to watch closely then next week we get another factor because we have the tweeter in chief back in the states, back watching events and now with 280 characters to weigh in oh, boy yes. More fun next week by the way, coming up, we got more earnings coming your way as you saw there, disney reporting, equifax, nordstrom, red fin. A whole host on good cross sectioncompanies to report in a few minutes. Bertha, thanks very much we go out on minus signs it was a lot worse early on. Stay tuned for the earnings coming your way with kelly evans and company on the second hour of the closing bell. See you tomorrow, kell thank you, bill. Welcome to the closing bell, everybody, im kelly evans heres hue were finishing up a rock n roll day and wall street declines, almost 250 points on the dow earlier. Looks like were closing down just pabt 100 points that leaves the blue chips at , 23,462 s p 500, 2,584 nasdaq composite down half a percent to 6,750 im sorry. The russell 2000s also down half a per spent, 1,475 well round up there for the small caps lot of big earnings movers, too. Were going to have another big hour for earnings after the bell here Julia Boorstin will bring us results from disney and lions gate when they cross courtny reagan will bring us result from in order stock josh lipton, inha toto toton nv. Joining me cnbc senior markets commentator michael santoli, recei stephanie link charlie from Ariel Investments welcome to everybody the biggest dow winner today, by the way, was disney. The biggest loser was mcdonalds over in the s p, the big winner was cody on its earnings the loser was transdime. As we mentioned much of the market moves today driven by what would be in the Senate Tax Plan we first got the rumors then were getting the results. As we found out last hour the plan includes seven tax rates, doubles the death tax kpenexemp, 1 million for mortgage Interest Deduction and delays the reduction in the Corporate Tax rate by a year, but it does cut it to 20 permanently. Michael, what do you pmake of ho the market wrapped this all up i think were back in the zone where traders and the machines that act as traders have decided were trading now on each headline about the provisions in the tax bill its just like it was with the Health Care Bill we traded, intraday bouncing around im not siaying its not important ultimately i do think today germany was down 1. 50 had nothing to do with our tax bill. Why was that . Pentup selling overseas, essentially in japan, this crazy vertical move to the upside, had the higher credit market acting pretty wobbly for a few days there so all that was in search of an excuse to do some sell iing, we did it on the tax headlines and went levels we saw a week ago and bounced. How important to you is the details of the Senate Tax Plan well, the two sides are still so far apart so were going to have, i think, many weeks, perhaps many months of just kind of this back and forth. So if youre a longterm investor like we are, almost have to ignore it and look for opportunities when they sell off like today, Technology Got clocked. Financials continued to sell off. Semiconductors. Industrials semiconductors for sure. Of course, those were a lot of the best performers year to date. Exactly. Its an excuse to take profits. To your point, mike aerospace and defense down 1. 7 today nothing to do with the tax no, nothing and in fact, all of the industrials got hit. Right. The machinery stocks. Again, of course, those stocks are up 40 , 50 , 60 i think it was an excuse to take profits. I think thats part of this whole rotation story this year there was enough good today in retail and utilities and reits to keep the market from not kind of collapsing. Thats just been the story so i think you have to pick your spots as we talked about yesterday. Charlie, would you guys be buyers or sellers here, then, as stephanie described . Is this something to be concerned about . As you see maybe a delay in the Corporate Tax cut or an opportunity to buy some of these companies on the selloff is. Yeah, we would say its toug to tell broadly. We think the good news for us stock pickers, were getting wide disparities of movement, stocks up big, down big. Not getting sectors moving together were getting individual retailers, some of them are up, some of them are down. Thats great for somebody like us i will say, full disclosure, i am a republican, i dont think the house and the senate are that far apart 1 million on the deduction for houses in the senate, 500,000 in congress. Thats going to be 750,000 when they get together. What about the delay whether theyre going to delay it a year or not yeah. Absolutely what are your thoughts on that theyre not going to delay it a year theyre going to end up having this next year the people who theyre talking to all right. Care a lot about that. Its going to happen this year yeah. We got to figure out how theyre g going to pay it is interesting the capital expensing getting extended eight years. That would be actually somewhat of an offset to the delay on the tax side so i actually think that thats going to help on the growth side thats something that oh, yeah. Companies would certain sli want to have. Looking for immediate stimulus, thats the place youre going to look. For sure. I dont disagree with that. The fact the chairman would put in this oneyear delay, in committee, its because hes listening to people who dont have the stomach to widen out the deficit. Right . Hes sort of looking at what we have to do to get to the votes to get through right . Its not out there arbitrarily. Its because theres a certain contingent that says were not going to write a blank check. Theyre boxed in, too, cant go over 1. 5 trillion. 21st century stock one of the top performers in the nasdaq today. Disney led the dow as we mentioned. Waiting for its results due out any minute Liberty Interactive was one of the top nasdaq movers. At t ceo ronaandall stephenson addressed news about part of the deal to buy time warner. Listen. One of the key benefits of putting these two companies together is to stand up a new advertising capability theres a lot of information and data that we think can be used to stand up a new advertising business pairing that with the turner advertising inventory is a really powerful thing, we believe. That is what we aspire to do selling cnn makes no sense in that context lets get straight to disneys results now with our Julia Boorstin howd they do, julia well, disney missing on the top and bottom line earnings adjusted earnings coming in at 1. 07 per share versus estimates of 1. 12 her share revenueses revenues also coming short of estimates. Company reporting revenues of 12. 78 billion versus estimates of 13. 23 billion. Now looking into this release here, bob iger quoted in the release saying no other Entertainment Company is better equipped to navigate the ever evolving media landscape thanks to our unparalleled collection of brands and franchises and ability to leverage ip across our entire company. Now looking at whats driving the shortfall versus expectations, we see the stock is now down over 3. 5 . It looks here like theres impact of hurricane irma, impact of a cancelation of an animated film also valuation adjustmentment for bamtech in sports programming rights also increased costs for the technology it really does seem like the shortfall is in the Media Networks division. Media Networks Division overall saw the Cable Division operating income was down 1 revenue in cable was flat. Broadcasting operating income was down 15 while revenue was down flat. And it looks like despite disney world being closed for two days due to the hurricane, there was growth in the in the parks and resorts division, 6 Revenue Growth in parks and resorts. Also 7 operating Income Growth in parks and resort the versus the year ago quarter were going to continue to do through this report, well be back to you with more. Kelly. All right, julia, thank you very much. Walt disney shares down more than 4 right now, again, looking through may squlor cor categories, Media Network revenue shy by maybe 150 million, 200 million. For the parks and resorts, it does look like they were able to beat that little bit in terms of the ek pe expectations what do you make of this shortfall in the area where the market is fearful of weakness, the cable business disney, they dont do guidance but they never used to miss become something difficult in the last couple years. I do think it shows theyre kind of running in some deep sand in the cable business the stock had kind of clawed its way back toward 100. Some of the consolidation talk was behind that, too thats been unwound here well see if its contained or not. It will be interesting to see if the whole group sells off tomorrow the whole group actually has had one of the best weeks in the past week of the whole year. So maybe thats Short Covering, maybe its the fact the stocks got to oversold. This is not going to encourage most people to come in and buy the stock. Maybe there are other opportunities. I know i sound like a broken record like this, but maybe it gives you a chance to buy a little Comcast Comcast maybe just fractionally higher. Not much of a move after hours. I think they have a lot more they can do to offset the pressure points for sure. I do think, maybe this is something to listen for in the call, if the theme becomes from here on out, by the way, this fiscal quarter is never the big one for disney right . Summer quarter if it becomes about studio slate for next year, everyones going to be all bowled up about that, they actually have a dominant set of releases. Thats going to be the majority of the potential growth next year the question is can charlie, i was going to say they dont get credit for the studio because everyone thinks its lumpy and unsustainable even as they got the track record, made the acquisitions all the way along. I think the readthrough were nervous about is changes in brand spending cpg companies advertise on a lot of disney channels abc, espn, those companies seem to be cutting back on their advertising spending which is just as important as cord cutting. So thats where were focused. Thats a good point lets get back to julia, she has more on these numbers. Julia . Hey, kelly, i just want to mention other part of bob igers quote in this release here, he says we will continue to invest for the future to take smart risks required to deliver shareholder value. We certainly expect to hear a lot of questions about those reported talks between disney and fox. Disney reportedly interested in buying fox entertainment assets. Detail on espn, you were mentioning espn, pretty much flat with a year ago quarter as higher programming costs and lower ad revenue offset by higher affiliate revenue so affiliate Revenue Growth from contractual rate increases partially offset by a decline in subscribers. That continues to be something thats going to be a lot of focus on certainly in this conference call. Kelly. Is. Disney shares down less than 3 right now again, the espn issue still remains the major one. Stephanie, maybe is why they have would have expressed some interest in fox entertainment. As they look aheadscream i bla streaming services. Id like to see them do something that makes sense, thats synergistic id like to see a beat on espn at least one time, at least if its going to come in the next couple quarters. Just to come in line is not enough because theres so much concern. Yeah, if line for espn, again, top and bottom line miss for disney in the quarter. Lets get over to nordstrom. Nordstrom the third Department Store to report today beating on both the top and bottom line reporting earnings of 67 creptents analysts for 63 cents. Revenues beating comp sales, though, those are light, actually down 0. 9 . The street was looking for them to come down just 0. 2 was the best expectation of all of the Department Stores. Narrowing fullyear guidance and lowering the high end. They do say, i should note, 4 cents of impact from the hurricane in the Current Quarter and 2 cents of impact for the full year. So now taifr loheyre looking fr earnings between 285 and 295 for the full year as opposed to 2. 85 to 3. Again, you have the main nordstrom brands, the full line brand, weaker than the Nordstrom Rack brand with the associated website. So the nordstrom main brand saw comps, websites and stores included down 9. 1 Nordstrom Rack saw the comps up 0. 8 shares of nordstrom have bounced around here. Weaker after hours by 3 kelly . Is. Courtney, thank you online sales theyre saying up 14 . Michael, what do you think you know, its obviously not weak across the board, but the stock is back down toward the recent lows. I mean, i do think its about being a little bit light in the forwa forwardlooking commentary the miss on comps is what it is. Again, its not the key quarter for them on that front, but it seems like its going to be a high burden of proof for the street to say somethings turning here obviously in transition. And stephanie, today they also announced theyre i going o try dropoff service, curbside, around the holidays with a lot of extended hours. What else do they need to do everybody in the Industry Needs to change. They are a lot of companies are doing a good job trying to change, not fast enough given what they have their legacy businesses. This not a surprise, not a great quarter. Stock did rally today with the group. A lot was Short Covering for sure look, this is still a question of are they going to stay public or go private . So i think thats a big question mark as well excuse me. But i dont think that this quarter changes that narrative at all and the space was oversold i get why it bounced i just dont know if its going to see followthrough. Charlie, we had big movers this morning as well, kohls going lower, macys had a strong day. What would you guys do with the retail space i think people focus too much on Comp Store Sales and need to focus more on margins. Take your comps up by slashing pricing. What macys and nordstrom proved today, they can get decent margins. Nordstrom beat im going to go out on a limb and say the stock is going up tomorrow i think people are going to look at the margins and be pleasantly surprised. I like it going out on a limb. Well leave you there. Morgan brennan. Stocks definitely up after hours. Stark reversal from the regular trading session. Hertz beating on the top and bottom lines 1. 42 per share adjusted for hertz. Thats better than the 1. 35 estimates anticipated. Revenue also better than expected 2. 57 billion versus the 2. 54 billion that the street had been looking for. Just a few other things to point out, pricing which is measured by total revenue per day, that increased 2 in the quarter. Company says that was driven by a strategic pricing action supported by new Revenue Management tools and favorable customer fleet mixes also transaction days decreased by 4 . Versus last year tighter core rental fleet canceled reservations in hurricaneaffected areas in a tougher comparison versus the strong 2016 third quarter. But the company does say that it reduced its total u. S. Fleet by 2 last quarter. Too much supply, thats an an issue for both hertz and avis. This stock right now, it jumping in the after hours its now up almost so 10 on this earnings and revenue beat back over to you. Morgan, thank you mike, its also dragging avis up about 2 , too. Yeah. Entry dynamics look slightly less bad i guess through these numbers. Stock was down 5 in the regular session today. Stock down from 26 and change to 20 in a month. So obviously people were braced for something worse. And didnt get it. Quarter of theres a lot of concern about the relevance of the especially in the uber world stephanie, avis was down huge in the past month of so obviously i mean, has hertz really changed that much . I mean, is it enough to give now 3. 25 back no. Its just the fact that, you know, avis missed. So avis missed and dragged the group down expectations got really low. I dont think 2 pricing is so bad. It didnt meet expectations of 2. 5 , 3 whisper 2 is pretty good especially given what we know about the macro and hurricane and the impact well get a little more on the cost side of things. I can see why its bouncing here well see if it has legs based on what they guide to. Charlie, what would you say this fails the rip vanwinkle test could you go to sleep for five years and wake up and be confident the companys going to be in good shape the answers no. This is something you cannot i thought it was 40 years well, this case, the fiveyear test the answers no. All right investors still on a shorter timeframe given it a 12 pop after hours. Guys, thank you. Charlie, thank you, getting us through a lot of earnings. Is there still magic in the kingdom . The disney numbers are out the stock is lower by about 3 we have a shareholder and top analyst to weigh in on these results next. Also dueling tax plans are out. The House Ways Means Committee sending a bill to the full house, while Senate Republicans are offering their take on tax reform were going to look at both plans and what they mean for companies and for investors coming and we want to hear from you, contact the show, share your thoughts with us on twitter, facebook or over email youre watching cnbc, first in business worldwide well, its earnings season once again. Yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Equifax is out with its first Earnings Report since revealing its massive hack aditi roy has those numbers. Hi there, kelly, its a split decision revenues on the top line, it is a miss there revenues coming in at 835 million compared to 846 million. But it was a beat on the bottom line eps is 1. 53 versus 1. 49. But obviously the big news is the breach and the impact of that breach, and the companys interim ceo in those results saying our teams have taken immediate actions to improve Data Security and provide improved support for customers impacted by the security incident as i look to the future, theyve committed equifax to four things, protecting consumers, enhancing security, empowering consumers to control access, and leading the industry to confront the massive economic and National Security threats represented by cyber criminals we should add that in the 10q, the company did have a separate section on the Cyber Security incident and it said it expects to incur significant losses related to the breach especially with in terms of the legal the legal costs and everything im also reading right now dow jones, this is just a headline, is reporting that equifax has received subpoenas regarding trading activities by certain employees in relation to the Cyber Security incident. Obviously, the company has been looking into the sale of shares by four executives the company says that those executives had no knowledge of the breach when they sold those shares but thats obviously been a bone of contention among lawmakers. The company said they have done their internal investigation and have found no wrongdoing but obviously this is an ongoing story as this headline reads that the company has received subpoenas regarding trading activities by certain employees in relation to this incident and well continue to keep you posted and dig deeper into the Earnings Release back to you dguys. Aditi, thank you. Mike, equifax shares down less than 1 , not a ton of poouchmov its just longer term what this is going to cost. I dont think anybody can really fix the range of potential liability at this point. Now theyre down about 1 p. 5. Still we take your point lets send it back to Julia Boorstin with news on espn julia . Thats right. A source tells us that espn is planning to lay off more than 100 staffers after the thanksgiving holidays. This was first reported by sports illustrated. Its our understanding the layoffs will be across various parts of the company and of course this is not the first round of layoffs at espn there were some earlier this fall and again in the spring it this all comes as espn is preparing to launch its direct to consumer app next year. There seems to be real overhaul of the company as it looks to focus more on Going Digital and also now going direct to consumer and its my understanding that espn is still continuing to hire in some areas even as they do these layoffs. Back over to you interesting julia, thank you mike, this is a significant number there have been rumors that more layoffs were coming. I think to see another 100 go is more than people were expecting. Sure. No, i think its obviously sort of an ongoing process to resize the whole business and, you know, shift it in stages away from, you know, the cable toward the digital and all the rest of it i dont think its a surprise within the scheme of disney, 100 is not a big number but clearly doesnt seem like theyre at the end of the process of restructuring. Espn staffers, of course, already on edge. Lets bring in robert luna, a disney shareholder Chris Johnson from johnson Research Group thanks, guys robert, what do you make of these layoffs, first of all . Well, yeah, i think, you know, mike was just saying its probably to be expected because even if its not just espn in general, the basic background that you need going into digital is different tan some of the people theyre laying off right now. So, you know, while 100 is not a big number in terms of businessny, its still probably a little bit more than most people were expected so it is news. With what do you think of the quarter broadly speaking, robert, with a miss on top and bottom line, the likes of which we dont often see from disney yeah, its never comfortable coming on being the bullish guy on disney after a quarter like that you know, it wasnt good, but, you know, kelly, i think you brought up a really good point a little while ago about studios and i dont think its getting enough credit. And the whole knock has always been its lumpy, you really cant count on it, but, you know, that was before marvel, that was before lucas, and now what were seeing is a consistency coming from studios that i dont think is being priced in. You know, its only onethird of the revenue that Media Networks is a half a parks and resorts i think theres a lot of room to go there when you look at parks and resorts, disney made Tremendous Investments in shanghai, theyre going to be doubling their fleet in the cruise line ships theres a lot thats going to be coming online in parks and resorts as well so why theyre making this transition to dic , digital, i dont think you can give up on the stock these numbers are to be expected out of media. Chris i hate to say it, but i agree. One of the things, lets go back to one of the things stephanie said about nordstrom right now and that is that large Companies Like this take some time to turn around when you look at disney, espn, theyre trying to go over the top with the boxes now in the set top boxes. That is going to take some time, but i think theyre focused on that transition. Theyve got their deal thats going to run out with netflix. They are clearly making the moves right now to go to digital, and own it themselves are there going to be pieces they buy from fox along the way . Perhaps. I think thats going to make that stronger. On the back gouground, you got k and recreations that are going to serve as a business right now. Disney turned into a low expectation and improving technical picture trade for us Short Interest went up ahead of this earnings announcement. Yeah. People were lowering the bar on disney. The other thing thats real interesting, when you look at the media group, average analyst recommendation is a 72 buy. Right now disney is at 58 so the bar has been dramatically lowered for disney breaking back above 100 ive seen, you know, weve almost come back, at 99. 50 in after hours. Closes above 100, this is one where the longterm investors are going to see it as a value mike, i was going to go back to the point robert was making about the studios. If were looking at disney as a streaming media company, do the studios become more important . Yes, you always want to see them kind of continue to get the hit and demanding more Box Office Revenue when they do is it about the recommendation, they have a great asset here, when its offered over the top its going to be compelling . The library plus the studio capability, also the tv production keep in mind, abc tv group and of course rumors to want the fox one, they are the factories of streaming media. That being said, and i agree with everything that these guys are saying about maybe unrecognized longterm value in studio everything thats being said was also true when the stock was trading at 90. I mean, its a matter of how the market is going to look at this. As steady as you want to say studios are, nothing is as steady as espn in its heyday was. Thats what the market had the longterm adjustment to. Felt like it was way too sturdy of business at one point and overemphasizing the rest. Cbs comes out in earnings and says were offering our content over the top, not hurt by cord cutting. If disney is able to start getting into that mode, too, does that allay a lot of the concerns well, it could. The thing with cbs, if you look at their assets, the thing theyre not exposed to is basic cable that theyve had Pricing Power on and now theyre losing it okay theyre in broadcast networks, show time premium cable and a few other things its not as if theyre the same areas most susceptible to cord cutting plus they have this tailwind of charging everybody for the broadcast network. So cbs has been in this pretty good spot when it comes to the predominant worries about cord cutting. Robert, i want you to weigh in on the deal, the possible deal for disney to buy the assets from fox. Is there a price at which you wouldnt be comfortable with that, how do you feel about that strategy in general. Should they be doubling down maybe doing more of that well, its difficult to tell, i mean, in terms of price, and theres been some different rumors, you know, in general about the fox acquisition, but also which pieces would they buy. I think the most valuable are things that they already have a footprint with like h u wilhulu men, avatar. I think for them to make that acquisition in terms of getting ready for this over the top direct to consumer solution, i think theres a lot of properties that theyll be a ibl be ability to immediately monetize price is going to be condition. Could be other issues in terms of the government stepping in to put a choke hold around that in general, its a good idea. Gentlemen, thank you, robert luna, Chris Johnson joining us to talk disney, down 3. 5 still after hours. Nvidias earnings are out. Lets get over to josh lipton for that report. Josh joshua kelly, nvidia reporting earnings per share of 1. 33 versus expectations of 94 cents. Revenue up 32 to 2. 64 billion. Versus expectation of 2. 36 billion. Beats there on the bottom and top. Kelly, q4 revenue guide here of about 2. 65 billion. Analysts looking for 2. 44 billion. Looking through the divisions, kelly, gaming at 1. 56 billion data center, 501 million. The stock heading into the print is already up 90 year to date investors on the call going to want more color about the data center business. Gaming sales mining for crypto. Call starts at 5 00 p. M. Eastern. Well be on it kelly, back to you. Thank you, josh. Yes, theyre up tremendously year to date but they actually are down a little bit, several percent as a matter of fact from recent highs seems as if were going to snug up and see if that was overdone or not this is a pretty diffident reaction so far to these numbers. Good word the stock, by the way, along with amd, there were big decliners in the session today nvidia was down turned rower we have more on that coming up. Red fin ic. Red fins earnings are out. Mixed bag for red fin, tech based real estate brokage company. Earnings per share 12 cents adjusted a penny beat revenue of 109. 5 million. Falling short of estimates of 110. 6 million it looks like its also mixed forecast for the Current Quarter in terms of guidance as well revenue for the Current Quarter seems to be better than expectations but the bottom line guidance for q4 appears to be weaker than anticipated. Nonetheless, red fins ceo saying that the brokerage market share gains did accelerate last quarter. Strong traffic growth. Steadily increasing sales in all of our new businesses, he said, in this report, however, if you take a look at the shares, they are down 6 in after hours right now. Well stay tuned and hear what they have to say on the call which is starting right now. Back over to you thank qulyou, morgan. Mike, surprising given how well zillow did in its result the other day. Obviously in a different stage of their growth. The stock has not traded well since the ipo as well. Its not a disaster. Its definitely been pressured it seems as if a little bit of a showme story at least the first report the street doesnt know the basis of how its being priesented. Roku, strong first day, sold off and up more than 50 today theres redfin, down 6 after hours. Lets get to our news update with contessa brewer. Hi there, kelly five Law Enforcement officers awarded the u. S. Capital police highest honor for their bravery during the june attack on a congressional baseball practice. Congressional leaders were on hand including congressman steve scalise, who of course, was gravely wounded. Is these five brave men and women prevented what would have been mass execution. Lot of members of congress that are here today wouldnt be here today. I wouldnt be here today without the heroism and their bravery. Amazon will start selling kindles, fire tablets and other amazon devices at whole Foods Grocery stores that move gives amazon another place where shoppers can touch or try out its gadgets during the Holiday Shopping season. Starting tomorrow, you really can have breakfast at tiffanys. The company will open the blue box cafe at its new york city Flagship Store the cafe will serve American Classics and the menu will change and evolve through the seasons were told you can go there and have breakfast for, oh, a measly 29 bucks. Thats nothing at tiffanys. Nothing. They should have done this ages ago. Right contessa, thank you very much contessa brewer. Lets take a lot at how we finished on wall street today. We had a big selloff middle of the day. We made up ground. The dow closed down 101 points, down 250 at the lows nasdaq down 39 the russell down about seven tra transpor transports were hit hard today, too. Names moving after hours on their earnings, disney for starters still lower by 3. 5 nordstrom down 2. 5 now. Hertz global up nearly lifting avis shares, too. Other big stories today in our rapid recap. Im not against the concept that the president the chief executive of the country should be pursuing american interests and not necessarily paramount, but included in those american interests are business and the economy. I dont blame china after all, who can blame a country for being able to take advantage of another country for the benefit of its citizens . Roku is a big story this morning. Earnings beat for the first ever quarterly report. We are in a tectonic shift in the world of television and advertising moving to streaming. What is your relationship like with kalanick its a Good Relationship but its also it comes with balance. What i told travis very early on is that any new ceo needs space. First and foremost, irrespective of what you read yesterday, i have never been told that the price of getting the deal done was selling cnn, period and likewise, i have never offered to sell cnn. The Senate Version of the tax bill is now officially out it would delay the introduction of the corporate rate cut by one year to 2019 however, it would get down to 20 and stay there permanently quite a day seems like that uncertainty is a big reason why stocks were at their lows earlier again, we made up some ground. At least that was sort of the reflex, yes, to trade along those lines and i do think youre still hearing just a lot of conflicting voices as to how the i think we should keep in mind, these are all selfimposed deadlines, theres nothing that says anything has to happen here except they keep putting these times out there then that i dont meet the deadlines thats something the market is going to lose patience with and say, hey, guess what, you guys have a budget deadline to keep the government open in a few weeks. Youre right. Then you have the midterms coming up. Thats the big one haunting their hopes of getting this done. Time for the takeaway. We begin with tesla. The world seems to be engaged in a wheres waldo of spotting and counting model 3s to determine how much the company is cranking out. Industry blog, electric, says tesla is plagued with bottlenecks. Citing sources saying the company made only 440 model 3s thus far, that means it built only 180 of them last month. Michael, how much longer will the market give them to sort this out its a comically small number of vehicles people are trying to chase around the country to see how many the market is in the process of looking a little more skeptically, right, the stock has been under some pressure here i would say the next couple of quarters they maybe lets go a couple quarters without massively deferring when so longer than the gop gets for its tax bill you know, maybe so. Because i think nobody starts with the premise of these are visionary leaders that are going to do wonderful things for humanity when it comes to congress as opposed to elon musk. Maybe a couple. Next, apples tv series, its next one, will star Reese Witherspoon and jennifer aniston. The plot is based on Network Morning Television Apple needs big winners to take on netflix and hulu. I want to know, i think the shareholders want to know the price apple has paid to get this bigname talent onboard. I would say theres almost no way the price tag is high enough to matter to apple so once you put that out there, because they do have just so much money and do need to buy to some degree some legitimacy in this area, i wouldnt worry about it in this case, in general, though, to be the last entrant to the buffet netflix is spending 7 billion or 8 billion next year. Exactly everyone is seeing the same deals and same handful of projects so are you going to be just kind of like the dumb money at the table thats i mean, over time thats going to matter, but initially, look, this they need a splash. Planet of the apps. Anything would be. Finally burberry shares tumbled today after its new leader detailed a plan to leave from highend luxury and lean on stronger handbags. Company also said it will have flat ref few through 2020 and take restructuring shares down 14 at the lows what do Retail Investors want to hear right now. I mean, they dont want to hear flat revenue for three years, of course i think in general on a strategic level, yes, they want to hear closing stores, reducing your kind of physical footprint, relying more on the brands but i think in the meantime you set out a multiyear strategic goal like that, youre going to target different or specific segment of the market. It seems like execution risks t. Yeah. Already have. If the world goes away from its a tough one as we heard from mickey direrexler. Whoothe senate says it want delay that cut by a year well tell you what else the senate wants when we come right back alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. The Senate Tax Plan is finally out. And it falls short of some of president trumps plans. In terms of details and where the bill goes from here. Heres ylan mui. Ylan reporter kelly, there were big steps in both the house and the senate today on tax reform the senate as you mentioned unveiling its tax plan while the house voted its bill out of committee. There are big differences between the two versions one of them is that the Senate Delays the introduction of the lower corporate rate by one year the house version of the bill puts that 20 rate to start immediately and Ways Means Committee chairman kevin brady told me thats going to be one of his priorities going forward. Well, you can tell in this bill we think growth ought to start as soon as possible. Were going to so we enact progrowth tax reform immedia immediately. Reporter the Senate Version of the bill also includes seven individual tax brackets with the top rate at 38. 5 . The house version of the bill, four tax brackets, the top rate is 39. 6 we also treat deductions very differently. The Senate Version of the bill completely repeals the state and local Tax Deduction. The house version repeals the income Tax Deduction, but limits the property Tax Deduction so these are just a few of the differences that are going to be need to be ironed out between the two chambers in the coming weeks. Meanwhile treasury secretary mnuchin says he expects to meet a christmas deadline appreciate the opportunity to work with you all year great day in moving in the right direction for middle income tax cuts and making our businesses competitive. Id also like to acknowledge the progress that the house made as well today we look forward to getting this to the president and get signed in december. Reporter so these are the opening salvos in the very long negotiation, guys. Lot of work still to be done, but for ictory lap back over to you all right ylan, thanks very much ylan mui. Pass the chips nvidia came in with its earnings down today along with amd. Still fractionally lower now after hours. Were going have a look at just how much its video gaming and exposure to other hot eas kearli esports played into todays numbers when we come right back. Breaking news, dan loeb releasing its 13f filing well have those details when we come right back. 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. Weve got a news alert on a 13f filing released from dan loebs third point less bylie picker with those details. In the 13f filing he raised his allibaba stake by 2. 1 millin shares to 6. 6 million shares, third points largest holding. Also sticking with tech, he sold his entire 7 million share 7 million share stake in hewlettpackard enterprises. Also sold the entire stake in General Dynamics and humana. He also lowered his bank of america stake by 12. 25 million and lowered his stake in alphabet back over to you, kelly. Thank you, leslie anything jump out to you, michael . Only the doubling down on alibaba. The stock is up so much, it had become a bigger position for him already. The fact that he bought more shares, hes chasing it, thinks its going still higher. Well bring you the latest on disneys conference call, after this quick break what are the ingredients of a life well lived . Is it the places you go . The things you own . Or the people that fill it with meaning . For 150 years, generations of families have chosen pacific life for retirement and Life Insurance solutions. Protecting whats most important to you. Thats the power of pacific. Ask a Financial Advisor about pacific life. Welcome back shares of nvidia down a half percent after reporting its earnings a few moments ago joining me is the director of research at timers Financial Partners the stock has been seeing huge swings and is a massive prefer year to date but then sold off massively. Its a been an incredible performer. They are increasing processing speed and driving down processing cost in every key area of technology what about intel and amd joining together no one can keep up with nvidia, they have no competition. No competition, on the other hand i wonder if people have already kind of gotten to a point where it can really has no margin for error in terms of the stock. In particular, with unstable sources of demand and markets, whether it be crypto currencies or gaming applications the key areas of application are virtual workstations, data rooms, immersive virtual reality, artificial intelligence, data processing, and now their new drive xp computer is being tested by probably every auto manufacturer so yes, the stock is priced for perfection but would it surprise people to know its got a 123 billion market cap kind of amazing thats huge, makes it one of the Biggest Companies in the world. Yes, you get few companies that come along with game and Industry Changing Technology and the whole trend of moving Processing Power away from the cpu, theyre in the forefront of moving Processing Power away from the cpu and onto the gpu. They were at the forefront but can they protect that . Sure, they got there first and theyre kind of the standard setter but everyone else now gets this and is rush to go catch up, right . Everybody is trying to catch up but they havent come near catching them yet. Why do you think that is . The design of their technology, their Huge Installed user base. Now every server, manufacturer is partnering with them. Dell, hp, ibm, have all announced new data servers that are using their gpus their Customer Base and their end User Base Continues to grow. They have one of the leading cars, Autonomous Vehicle computers that everybody is testing and using. They are first to market with that, theyve been first to market with so many things that everybody who is trying to catch up is not able to catch up you can probably see him blushing as you talk this way. I ivan, thank you very much. Well get a ecchk of nordstrom stocks and what to expect in tomorrows trade after this what if we could keep more amof what we earn . D. Trillions of dollars going back to taxpayers. Who could possibly be against that . Well, the National Debt is 20 trillion. As we keep adding to it, guess who pays the bill . Him. And her. And her. Congress, we should grow the economy. Not the debt. Welcome back look at shares of disney theyre practically positive we were down almost 5 after they first reported a miss on top and bottom lines here are a few highlights so far from the call. Disneys ceo bob iger saying Strategic Acquisitions have been a driver to historic achievements at the company. Iger also revealing ithe name o espn bus, im surprised theyre going with the espn moniker. Im not surprised about that, actually im surprised its not espn go like hbo go. Is this the name just for the espn product just the espn direct to consumer, not going to be the whole disney entertainment thats what i thought, thats an odd name for something that youre showing absolutely. I think the whole thing should be called mouse click. How many people know what that is, if theyre trying to go after the next generation . I think 2019, you cant call it mouse click. Thats very clever, though i think thats a copyright, i said that publicly on the air. Thats fine by the way, on that espn plus place form, theyre going to show the content theyre not airing on the tv show. Complementary interesting, that turnaround in disney shares well continue to monitor the moves after hours. We have to hand this over to fast money. 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 times square im melissa lee. Tonight on fast, a big night for earnings, nvidia and disney reporting moments ago, both Conference Calls under way stocks are volatile in the afterhours session disney shares climbing back after initially selling off. And james stewart, fast money friend, will be here with instant reaction, and how likely he thinks the at t time warner deal is to go through. First,